FOR 47 YEARS, THE LEADING PUBLICATION COVERING SYSTEMS WORLDWIDE JUNE 2018 / ISSUE 1134

Middle East–Africa’s Largest Acquirers The top 32 Visa/Mastercard merchant acquirers in the Middle Top Issuers of Commercial East–Africa region are ranked on page 7 based on Visa and Cards in the U.S. 2017 Mastercard card transactions processed in 2017. Collectively this > see p. 6 Ranked by Purchase Volume Bl. PayPal Buys Mass Payouts & Anti-Fraud Platforms This month, PayPal announced it will buy Hyperwallet Systems for $400 million in cash and Simility for $120 million in cash. Chase This follows two acquisitions in May, when PayPal announced > see p. 12 $132.21 Giift.com Loyalty Program Support

More than 40% of loyalty program reward points are never used. In part, because many points are earned for products or services Comdata rarely used. It is also true that many issuers of reward points have Bank of America $31.53 > see p. 6 $127.21 Supreme Court Victory for $60.96 In a 5 to 4 opinion, the U.S. Supreme Court ruled June 25 in favor of American Express in litigation concerning Amex’s prohibition against any merchant in its U.S. network requesting a cardholder U.S. Bank Wells Fargo > see p. 5 Bancorp $68.17 $89.66 Linked2pay Instant Merchant Settlement Bank $28.14 Risk management and payment technology provider linked2pay, Capital One Wex in partnership with Push , offers acquirers instant $52.09 merchant settlement. Merchants that accept credit and $26.68 > see p. 8 © 2018 The Nilson Report Payworks/CyberSource Omnichannel Partnership PNC $25.26 Payworks’ Pulse gateway for in-store processing support to payment service providers (PSPs) and acquirers will be integrated with the CyberSource ecommerce payment management platform. Top U.S. Commercial Card Issuers > see p. 8 Nvoicepay and Mastercard in B2B Partnership Commercial credit, debit, and prepaid cards from the largest issuers of Visa and Mastercard products are ranked by purchase Business-to-business (B2B) payments in the U.S. continue to be volume generated in 2017 on pages 9, 10, and 11. Products dominated by paper checks, which account for about half the include purchasing, corporate travel and entertainment (T&E), market. ACH, wire, and commercial card payments divide the fleet, small business credit, small business debit, and prepaid > see p. 5 > see p. 9

INSIDE 2 – 4 Fast Facts CHARTS 6 Top General Purpose Acquirers in 9-11 U.S. Visa/Mastercard Commercial Card Conferences & Seminars Middle East—Africa 2017 Issuers 2017—Small Business Credit, Management Changes 7 Top Visa/Mastercard Acquirers in Fleet, Purchasing, Small Business Debit, Middle East—Africa 2017 Prepaid, and Corporate Cards

© 2018 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM MASTERCARD commercial payment solutions have been AMERICAN EXPRESS CASH MAGNET CARD is Amex’s integrated with Stargo’s price optimization engine to latest cash-back product. The card offers unlimited 1.5% cash deliver routing, pricing, and payment automation for freight back on all purchases. Also featured is Pay It Plan It, which forwarders. Chris Fendley is SVP for Enterprise Partnerships at gives American Express cardholders the opportunity to split Mastercard, (914) 249-2000, chris.fendley@.com, up big purchases over time with a fixed monthly fee and no www.mastercard.com. interest. Smaller purchases can be paid in full as soon as they appear on their bill, which lowers monthly statement ’S proprietary CardSavr API can be used to place balances. Kartik Mani is EVP, Global Consumer Lending, newly issued cards in immediate use upon activation. The (212) 640-2000, [email protected],

FAST card-on-file technology is helpful anytime a large group of www.americanexpress.com. cards must be replaced at once because spending usually drops off when cards are in transition. Chris Hopen is CEO, FLYWIRE and UNIONPAY are providing Chinese students FACTS (650) 530-3106, [email protected], and patients with discounted foreign exchange rates on www.switchme.com. cross-border tuition and healthcare payments through the end of 2018. Payers using a UnionPay will get the JUNE 2018 CELLPOINT MOBILE will offer member airlines of UATP same foreign exchange pricing as a bank transfer, which is ISSUE 1134 to mobile and card-based payment options, as well the lowest cost card payment option available. Ryan Frere is as multiple PSPs, acquirers, and global consumer wallets. VP Global Payments at Flywire, (617) 207-7076, ryan@ Currently, more than 22% of all global air travel bookings are flywire.com, www.flywire.com. No paid made on a mobile device, including up to 80% of last-minute advertising. bookings. Airlines that connect to UATP’s Ceptor, a universal SANTANDER BANK has added its brand to 200 ATMs that supports alternative payments, will have access to operated by Cardtronics in Massachusetts grocery stores and CellPoint Mobile’s Velocity payment platform and its mobile pharmacies. Brian Bailey is Managing Director North America APMs. Velocity is PCI-DSS compliant. Kristian Gjerding is at Cardtronics, (832) 308-4000, [email protected], No sponsored CEO at CellPoint Mobile, (305) 206-2336, kristian@ www.cardtronics.com. Michael Cleary is Co-President Head content of cellpointmobile.com, www.cellpointmobile.com. of Consumer Business Banking at Santander, (617) 346-7200, any kind. Ever. Ralph Kaiser is CEO at UATP, (202) 250-4665, kaiser@ [email protected], www.santander.us. uatp.com, www.uatp.com. INTELLIGENT CONTACTS, provider of communication and FICO has been awarded seven new patents related to payment services for the call center industry, has formed It is never fraud, artificial intelligence (AI), and advanced analytics. a partnership with Bluefin Payment Systems to bring that permissible for The patents include: card fraud detection utilizing real-time company’s Bluefin Decryptx, PCI-validated point-to-point en- subscribers to identification of merchant test sites, fraud detection based cryption service to call centers. Agents use a P2PE terminal forward or print on efficient frequent-behavior sorted lists, multiple funding to capture payment details. The devices eliminate about 95% account payment instrument analytics, data-driven product of a call center’s PCI-DSS requirements. Jeff Mains is CEO at this issue. Doing grouping, automatic modeling farmer, and systems and Intelligent Contacts, (972) 784-5600, jeff.mains@ so violates methods to improve decision management project testing. intelligentcontacts.com, www.intelligentcontacts.com. copyright laws. Stuart Wells is EVP, Chief Product and Technology Officer, Greg Cornwell is SVP Chief Security Solutions Sales at Bluefin, (408) 535-1710, [email protected], www.fico.com. (770) 709-7745, [email protected], www.bluefin.com.

Conferences & Seminars

Mobile Payments Conference 2018 (MPC): FinovateFall 2018: September 24-26, 2018. Seamless Philippines 2018: September 26- August 22-24, 2018. The Wyndham Grand The Marriott Marquis Times Square, New York. 27, 2018. The SMX Convention Center, Manila, Chicago Riverfront, Chicago, Illinois. Estimated Estimated attendance: 1,500. Cost for the three- Philippines. Estimated attendance: 3,000. Cost attendance: 300. Cost for the three-day confer- day conference is $1,795. Subscribers to for the two-day conference is free. Contact ence is $699 before August 21. Subscribers The Nilson Report will receive a 20% Lydia Sebastian at Terrapinn, (65) 6322-2700, to The Nilson Report will receive a 20% discount. (Use code FKV2343NRT.) [email protected]. Register at discount. (Use code MPC18NIL.) Contact Contact Tyler Ferst at KNect365, (646) 895-7329, www.terrapinn.com/exhibition/seamless- Robin Albright at MP Associates, (303) 530-4562, [email protected]. Register at philippines. [email protected]. Register at https://bit.ly/2Jnp4MA. www.mobilepaymentconference.com.

2 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 1 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive COMDATA’S OnRoad Card is a multipurpose fuel and driver funds card, which combines features of the company’s proprietary debit card with access to all fuel locations on Mastercard’s signature debit network. Funds can also be obtained at bank tellers as well as from Cirrus and ATM locations in North America. Greg Secord is President, North American Trucking at Comdata, (615) 370-7000, [email protected], www.comdata.com.

PATIENTCO, a healthcare payments technology company, has developed and deployed the first cloud-based validated point-to-point encrypted EMV termi- nals with integration into EPIC’s EHR technology. The innovation eliminates the IT burden from healthcare systems because Patientco manages everything remotely. Joshua Silver is Chief Solutions Officer, (678) 596-6990, [email protected], www.patientco.com.

VERSAPAY, which offers cloud-based invoice-to-cash services, including electronic invoice presentment and payment, automated accounts receivable, and collections management, has entered into a global payment facilitator partnership with First Data for card processing in more than 150 currencies with 17 settlement currencies. Craig O’Neill is CEO at VersaPay, (647) 258-9380, [email protected], www.versapay.com. Shane Fitzpatrick is Global Head of eCommerce at First Data, (404) 890-2000, shane.fitzpatrick@ firstdata.com, www.firstdata.com.

ELECTRONIC PAYMENTS, which ranks 30th largest among merchant acquirers in the U.S., reports exceeding $1 billion in monthly aggregate pay- ment volume for the first time. Michael Nardy is CEO, (631) 822-1140, mike@ electronicpayments.com, www.electronicpayments.com.

WEX will issue and operate Shell’s full portfolio of commercial fleet cards in the United States and Canada. Their first commercial fleet product is expected to be available in August 2018. Citi Retail Services had been the issuer of Shell’s commercial card products. Melissa Smith is CEO at Wex, (207) 523-7643, [email protected], www.wexinc.com.

ELAVON’S Coverage Hospitality digital invoicing system makes it safer for consumers to pay for deposits on events and concierge-like services at hotels Management Changes by eliminating the need to send card data remotely. Converge Hospitality reduces PCI security exposure by moving the payment process online for Matthijs Pronk has been appointed Chief Commercial Officer at both the hotel and the customer. Eric Liebman is VP, Head of Product Strategy, Intrapay, 31 (6) 1381-9449, [email protected]. Asif Ramji Hospitality, (678) 731-5000, [email protected], www.elavon.com. has been appointed Chief Product Officer at Worldpay, FIRST DATA’S Disburse-to-Debit service, a gateway for digital payments, will (678) 242-5281, [email protected]. Toby Holmes has been appoint- be available to Mastercard customers that use MoneySpend to push real-time ed Vice President, Sales for Ground and Sea, US at CellPoint Mobile, payments to debit cardholders. Users will access a single connection for (206) 909-9877, [email protected]. Scott Carcillo has domestic and international debit networks and prepaid products, including been appointed Senior Vice President, Client Solutions at FreedomPay, First Data’s Money Network service. Dan Charron is EVP, Head of Global (610) 902-9000, [email protected]. Bill Versen has been Business Solutions at First Data, (404) 890-2000, [email protected], appointed Chief Product Officer at Transaction Network Services, www.firstdata.com. (703) 453-8332, [email protected]. Marci Gagon has been appointed Vice President of Partner Strategic Alliance at Qualpay, INFINICEPT offers out-of-the-box software capable of providing underwriting (650) 899-0245, [email protected]. David Krantz has been appointed on demand (UWoD) for merchant acquirers, payment facilitators, aggrega- Group President, North America Fuel Businesses at Fleetcor, tors, and ISOs. The software has been preconfigured. Any organization that (678) 969-9638, [email protected]. James Churchill has been underwrites merchants can leverage the full set of APIs and web hooks to appointed Director of New Business Development at Intrapay, integrate UWoD directly into their own platform. Deanna Rich is Co-Founder, 31 (6) 8351-1313, [email protected]. (818) 613-7627, [email protected], www.infinicept.com.

© 2018 HSN Consultants, Inc. THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 3 © HSN Consultants, Inc. 2017 THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 2 ’S prepaid is accepted for payment at online merchants OCBC and UOB in will work with the Network for Electronic including the Google Play Store. Paysafecard is used by consumers who prefer Transfers (Nets) to enable their cardholders to make mobile payments through or need to use cash to pay online. They receive a 16-digit PIN to complete the the NetsPay app. Also available to cardholders of DBS and POSB in Singapore, payment transaction. Paysafecard is sold in 46 countries and is accepted at about 11 million consumers will be able to use their phones to pay at more more than 600,000 outlets worldwide. The partnership between Paysafecard than 105,000 Nets acceptance points in the country. Consumers scan the Nets and Google is live in Poland. Udo Mueller is CEO at Paysafecard, QR code or tap their NFC-enabled phone on terminals to make payments. 43 (1) 720-8380, [email protected], www.paysafecard.com. Purchases are debited directly from the users’s bank account. NetsPay users can store up to 10 cards on the app. Alvin Seck is Head, Products at Nets, KEOLABS, a provider of testing tools for smart cards and related systems, will (65) 6272-0533, alvinseck@.com.sg, www.nets.com.sg. open its ICube Testing Center in January 2019. The new company will provide testing services for smart cards, card readers, and related systems. , a to customers including Facebook, Uber, Stephane Jobard, current Director of Solutions and Certification at Keolabs, will Netflix, Spotify, Casper, Bonobos, and L’Oreal, has created a direct API become CEO at ICube, 33 (4) 7661-0203, [email protected], integration with the Mastercard Account Updater service. Qualified merchants www.keolabs.com. processing with Adyen globally can now automatically update Mastercard accounts in real time. Roelan Prins is Chief Commercial Officer at Adyen, ICC SOLUTIONS has received certification from UnionPay International (UPI) 31 (20) 240-1246, [email protected], www.adyen.com. Johan Gerber for its full set of QuickPass Acquirer Integration Test Cases. Acquirers use is EVP of Security and Decision Products at Mastercard, (636) 722-2366, the test suite to perform the contactless EMV chip terminal integration tests [email protected], www.mastercard.com. needed to achieve accreditation and certification with UPI prior to deploying terminals. Derek Ross is Head of Sales and Business Development at ICC, PAGBRASIL is a proprietary online payment gateway and collection platform 44 (192) 562-9001, [email protected], www.iccsolutions.com. designed specifically for the Brazilian market. The company provides local and international merchants access to the broadest set of domestic payment EMVCO has created a QR Payment Mark to promote global interoperability methods. Alex Hoffmann is CEO at PagBrasil, 55 (51) 4042-5400, for EMV-compliant QR code payments. The QR Payment Mark may also be [email protected], www.pagbrasil.com. used as an application indicator on a mobile device initiating a transaction. A royalty-free trademark license agreement and reproduction requirements are , Canada’s domestic debit network, and Bambora are working to available at https://www.emvco.com/about/trademark-centre/. bring Canadians the ability to use Interac Debit to pay for e-commerce purchases from merchants that use Bambora as their payment provider. JSC RUSSIAN AGRICULTURE BANK (RSHB) has opened its 10,500 POS Nader Henin is Director, Product Management, Digital Payments at Interac, terminals, 3,800 ATMs, and 1,700 kiosks to JCB cards. Andrey Kuptsov is Head (416) 869-5074, [email protected], www.interac.ca. Tristan Kenning is Head of Merchant Acquiring at RSHB, 7 (495) 787-7787, [email protected], of Product North America at Bambora, (250) 217-0172, tristan.kenning@ www.rshb.ru. Takashi Suetsugu is General Director at JCB International Eurasia, beanstream.com, www.beanstream.com. 7 (495) 647-1036, [email protected], www.ru.jcb/ru. PAYU is offering businesses in Nigeria, PayUReceive, which lets them se- NATIONAL BANK OF CANADA has launched “my debit,” a contactless card curely request and receive payments directly from their customers via email or equipped with the Interac Flash feature. This lets cardholders make purchases SMS. Customers can pay using their bank cards or their bank accounts. of $100 or less at a merchant without having to enter a PIN. Juliet Nwanguma is Country Manager at PayU Nigeria, 234 (70) 3703-1967, Jean-Paul Almeida is VP Card and Payment Solutions at National Bank, juliet.nwanguma@.com.ng, www.payu.com.ng. (514) 412-5313, [email protected], www.nbc.ca. DATASCORING offers the FICO Alternative Lending Platform in Colombia. GROUP’S Axium D7 ECR-POS has achieved Google Mobile The platform’s cloud-based credit risk assessment is used by banks, card Services (GMS) certification. GMS offers full access to applications from the issuers, retailers, and other lenders. It instantly returns a risk score and sug- Google Play Store as well as Google applications including Search, Chrome, gested lending decision. Lenders also receive regular risk monitoring reports. YouTube, and Google Maps. Merchants using Axium D7 can offer web brows- Alexandre Graff is General Manager, Latin America at FICO, 55 (11) 5189-8226, ing, online promotions, and access to loyalty program apps. Patrice Le Marre is [email protected], www.fico.com. Daniel Vargas is CEO at DataScoring, EVP of the Banks & Acquirers Business Unit at Ingenico Group, 33 (6) 3796- 57 (1) 743-4220, [email protected], www.datascoring.co. 1085, [email protected], www.ingenico.com. MULTOS CONSORTIUM has made available a new development kit for PAYHUDDLE SOLUTIONS, a payments consulting organization to acquirers design companies, professionals, device manufacturers, and software develop- and issuers in the South Asia region, has been accredited to provide guidance ers focused on embedded devices in the Internet of Things (IoT). Multos Trust worldwide on D-PAS end-to-end testing for Discover Network, Diners Club Anchor secure embedded SDK allows a high-security microcontroller at the International, and Pulse. Those networks compose the Discover Global heart of a connected secure device or as a supporting secure co-processor. Network. Prakash Sambandam is CEO at PayHuddle, 91 (80) 4394-3434, Paul Wilson is Commercial Manager at Multos Consortium, 44 (148) 988-9783, [email protected], www.payhuddle.com. [email protected], www.multos.com.

4 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 3 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Supreme Court Victory for American Express from page 1... to use an alternative payment method. Visa and Mastercard were parties Merchants claimed the anti-steering to the 2010 litigation and quickly rules limited their options to cut costs settled with the plaintiffs, dropping for credit card acceptance. their versions of anti-steering rules. Attorneys general from 17 states Because American Express continued and the U.S. Department of Justice fighting for eight years and never challenged the Amex policy in litigation changed its anti-steering policy, the filed in 2010. In 2015, a federal district Visa and Mastercard settlements did court ruled in favor of the Justice not matter much. Department and the attorneys general. The Supreme Court decision on However, a year later, the U.S. Court of Appeals for anti-steering could impact the 2012 class-action the Second Circuit ruled in favor of American Express. litigation between merchants and defendants—Visa, Mastercard, and 12 card-issuing U.S. banks. A federal ...should put the defendants in a appeals court rejected in 2016 a settlement as agreed- upon in 2013. The case was also decertified as a stronger position with merchants. class action. The Amex anti-steering ruling opens up the The Justice Department and 11 attorneys general discussion to address benefits that accrue to asked for review by the Supreme Court. The district consumers from interchange fees merchants pay court had focused on harm to merchants. However, to card issuers. This puts the defendants in the the appellate court cited benefits to cardholders. The litigation in a stronger negotiating Supreme Court concurred with the appellate court. position with merchants.

Nvoicepay and Mastercard in B2B Partnership from page 1... other half. Payment automation details specialist Nvoicepay facilitated needed more than $28 billion in digital to make payments last year for 500 a digital corporate customers. Those payment, Nvoicepay uses Mastercard corporations, a total of 2,700 when and that information is available brand virtual cards issued by subsidiaries and connected entities to all payors in the network within Silicon Valley National Bank to pay are included, provide only the a day. some suppliers and has integrated name of the supplier (biller) and Nvoicepay’s API Gateway with the Mastercard inControl the amount to be paid. Nvoicepay operates in the cloud and is commercial card payment determines the best digital backed by a menu of services to platform. Nvoicepay can work with method of payment—ACH, card, help manage complex workflows any Mastercard virtual card issuer electronically that wants to provide API Gateway printed check, ...$28 bil. in digital payments last with the cash management services iACH, and they provide to enterprise and year for 2,700 customers. iWire. Secure midmarket customers. delivery is Nvoicepay, founded in 2009, is possible to any biller regardless in accounts payable and privately held. In 2016, it received of size, location, processor, or procurement-to-pay systems. a $10-million investment from technology. Payments have been Once they are part of Nvoicepay’s private equity firm Napier Park made to more than 500,000 network, suppliers are offered a Financial Partners. suppliers in the U.S. All payments portal as well as an email channel Karla Friede is CEO at Nvoicepay in are guaranteed and insured. When they can use to view, download, Beaverton, Oregon, (503) 974-1759, a new supplier is added to the and search all remittance details. [email protected], network, Nvoicepay confirms all www.nvoicepay.com.

© 2018 HSN Consultants, Inc. THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 5 Giift.com Loyalty Program Support from page 1... not deployed the smartphone- There are 25 million consumers and WeChat Pay to assist in based redemption systems in the Giift.com marketplace. QR code-based redemptions. desired by a growing number of The company started in Mobile users download the Giift their customers. Singapore, where it could easily app or use the Giift tool integrated connect issuers of points with with the mobile app of their loyalty merchants looking to find new points issuer. customers. Giift works with Banks can outsource loyalty banks, airlines, retailers, and other programs to Giift. They integrate businesses to create a closed- with the marketplace and then loop network outside of in-kind customize the redemption operations such as airline miles option they want to offer their for flights and hotel points ...processed 50 mil. transactions for rooms. Its valued at more than $2.50 bil. Giift created a global marketplace lets marketplace in 2012 to let issuers work only consumers convert reward points with redemption partners of their cardholders. Integrations take they can’t use into gifts they want. choosing. The Giift platform is from 30-90 days. Giift says Today, there are 25,000 optimized for mobile redemption midsized banks get a loyalty merchants operating in 55 of reward points. In the Middle program that looks like a program countries in the Giift marketplace. East, consumers remain interested from a big bank. The company’s sales team works in redeeming points at the So far, 27 credit card issuers to bring smaller merchants into Giift website. In China, 100% have integrated with Giift, which the marketplace so consumers of redemptions occur using also works to facilitate promotions have local redemption options, not a smartphone. between issuers and merchants. just global brands. The company For redemption of loyalty Laurent Xatart is Chief Executive hopes to have 50,000 merchants points, consumers use Giift’s Officer at Giift.com in New York, by year-end. proprietary technology to create (646) 838-4167, laurent.xatart@ Last year, Giift processed 50 private label prepaid cards they use giift.com, www.giift.com. million transactions for loyalty at participating points, rewards, miles, and private merchants. In label prepaid cards valued at more China, Giift Top Acquirers in than $2.50 billion. works with Middle East–Africa 2017

Transactions Volume Middle East–Africa’s Largest Acquirers Rank Company (bil.) (bil.) 1 3.37 $ 152.68 from page 1... Behpardakht Mellat group processed $160.54 billion in purchase volume 2 Asan Pardakht Persian 3.06 $ 58.47 at 594,097 merchants from 2.99 billion Visa and 3 Saman e-Pay 2.70 $ 57.71 Mastercard transactions last year. They processed 4 Parsian E-Commerce 2.19 $ 46.04 another 19.1 million American Express, Diners Club, 5 Iran Kish Credit Card Co. 1.68 $ 116.04 JCB, and UnionPay transactions valued at $2.46 6 Absa Bank 0.81 $ 23.16 billion. The acquirers represented 13 countries. 7 Pasargad Elec. Payment 0.71 $ 32.59 Also included in the chart are 647.3 million 8 First Natl Bank 0.65 $ 19.64 domestic debit card transactions. The purchase 9 Standard Bank 0.46 $ 13.92 volume of those was $48.14 billion. Also included 10 Network Intl 0.24 $ 30.77 are 7.6 million domestic credit transactions valued at Rankings are based on consolidated volume and transactions. Figures include all Middle East-Africa business. Volume is net (gross $294.6 million in purchase volume. minus ) for American Express, Diners Club, Discover, Domestic-only brands included eBucks and Petro JCB, Mastercard, UnionPay, Visa, and domestic general purpose Card in South Africa, Al-Amil and KNet in Kuwait, payment cards such as Shetab, RCS, eBucks, Petro, and Fleet. © 2018 The Nilson Report eCash in Qatar, AutoBranch in Kenya, Mada in

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Saudi Arabia, MCB Fleetman in Mauritius, PayPak card payments in 2017 valued at $463.54 billion. They in Pakistan, and CMI in Morocco. Acquirers in Iran, are not included in the Visa and Mastercard ranking led by Behpardakht Mellat, Asan Pardakht Persian, because all transactions were domestic-only Shaparak and Saman e-Pay, processed a combined 13.70 billion network card payments.

Largest Merchant Acquirers in Middle–East Africa 2017

Visa/Mastercard 1 Other Cards 2 Active Rank Transactions Volume Transactions Volume Merchant POS ‘17 ‘16 Company, Headquarters (mil.) Chg. (mil.) Chg (mil.) (mil.) Outlets Terminals 1 1 Absa Bank/Barclays, South Africa 801.9 10% $ 22,676.1 11% 7.2 $ 487.6 56,914 126,741 2 2 First Natl Bank, South Africa3 601.0 11% $ 17,144.5 12% 49.8 $ 2,496.4 57,287 95,370 3 3 Standard Bank, South Africa 452.9 14% $ 13,501.6 11% 3.5 $ 420.7 48,233 79,841 4 5 Network Intl, United Arab Emirates 237.8 17% $ 30,317.6 11% 2.0 $ 449.6 113,458 87,243 5 4 Nedbank, South Africa 232.6 -10% $ 12,084.7 10% — $ — 49,692 50,075 6 6 First Abu Dhabi, United Arab Emirates 122.4 14% $ 12,939.0 10% <0.1 $ 4.7 21,044 50,925 7 7 Mashreq Bank, United Arab Emirates 115.5 12% $ 12,188.9 5% 0.4 $ 209.5 17,868 35,752 8 8 Natl Bank of Kuwait, Kuwait4 52.6 27% $ 5,039.4 19% 13.9 $ 1,795.2 13,698 16,617 9 9 Kuwait Finance House, Kuwait 49.2 25% $ 4,518.0 12% — $ — 7,150 8,561 10 10 CMI, Morocco5 48.2 28% $ 3,156.9 21% 5.2 $ 146.4 26,418 29,100 11 11 Qatar Natl Bank, Qatar6 37.2 9% $ 5,132.9 15% 6.7 $ 1,142.3 3,671 7,940 12 12 Mercantile Bank, South Africa 34.9 39% $ 1,055.7 21% 29.1 $ 942.8 33,015 21,155 13 13 , Kuwait 20.1 15% $ 4,242.8 5% — $ — 6,356 15,481 14 14 Mauritius Comml Bank, Mauritius7 18.9 12% $ 994.9 7% 0.8 $ 116.0 4,267 7,172 15 15 , Pakistan8 18.7 12% $ 729.0 12% 0.6 $ 19.4 9,026 27,789 16 16 Commercial Intl Bank, Egypt 17.1 9% $ 858.1 27% — $ — 8,399 11,669 17 20 Network Intl (EMP), Jordan 14.7 25% $ 1,244.7 11% <0.1 $ 0.2 12,659 16,577 18 18 Areeba (Bank Audi), Lebanon 14.5 11% $ 1,891.6 11% 0.3 $ 113.0 9,524 10,981 19 17 Gulf Bank, Kuwait 14.4 8% $ 2,556.6 5% 0.2 $ 31.7 4,938 5,202 20 19 Arab African Intl Bank, Egypt 14.2 15% $ 457.9 27% — $ — 5,683 8,293 21 23 Natl Commercial Bank, Saudi Arabia9 11.8 35% $ 1,162.4 10% 113.0 $ 8,235.0 16,451 48,748 22 21 Doha Bank, Qatar 11.6 9% $ 1,488.6 15% <0.1 $ 16.6 2,700 4,600 23 24 Al Rajhi Bank, Saudi Arabia9 10.8 48% $ 1,200.8 20% 219.7 $ 16,887.2 31,669 74,612 24 27 SABB, Saudi Arabia9 9.4 — $ 1,129.2 — 58.9 $ 4,068.3 2,882 20,770 25 22 Credit Libanais, Lebanon 6.9 -24% $ 822.5 10% — $ — 10,993 13,003 26 25 Riyad Bank, Saudi Arabia9,10 6.3 17% $ 639.8 5% 79.2 $ 6,003.6 4,835 41,288 27 26 Arab National Bank, Saudi Arabia9,10 4.3 4% $ 388.2 2% 42.4 $ 3,733.2 2,610 15,728 28 28 Equity Bank, Kenya11 3.0 15% $ 164.0 25% 0.8 $ 28.7 1,722 3,878 29 29 BankMed, Lebanon 2.6 35% $ 259.4 29% <0.1 $ 0.2 2,468 2,970 30 30 Alawwal Bank, Saudi Arabia9,10 2.0 12% $ 177.9 9% 18.5 $ 1,601.3 1,157 11,122 31 31 SAIB, Saudi Arabia9,10 1.9 15% $ 320.8 23% 21.8 $ 1,941.2 2,489 9,178 32 32 FirstBank, Nigeria 0.5 21% $ 53.2 43% <0.1 $ 0.2 4,821 9,052 33 — Behpardakht Mellat, Iran12 — — 3,367.8 $ 152,678.7 905,025 887,309 34 — Asan Pardakht Persian, Iran12 — — 3,056.4 $ 58,473.8 616,818 615,709 35 — Saman e-Pay, Iran12 — — 2,695.7 $ 57,713.5 20,034 774,799 36 — Parsian E-Commerce, Iran12 — — 2,187.8 $ 46,044.4 895,111 873,168 37 — Iran Kish Credit Card Co., Iran12 — — 1,681.6 $ 116,040.3 916,922 972,998 38 — Pasargad Elec. Payment, Iran12 — — 714.0 $ 32,592.3 387,896 402,852 Figures are net (gross minus chargebacks). Change in volume is based on local currency. 1Visa and Mastercard credit, debit, and prepaid cards including Electron and . 2Includes American Express, Diners ClubDiscover, JCB, UnionPay, and domestic debit and credit cards. 3Other includes Petro Card, fl eet, loyalty, and eBucks domestic debit and credit cards. 4Other includes Al-Amil KNet domestic debit cards. 5Other includes CMI private label domestic debit cards. 6Other includes eCash domestic debit cards. 7Other includes Fleetman domestic debit and prepaid cards. 8Other includes Pay Pak domestic debit cards. 9Other includes Mada domestic debit cards. 10VisaMastercard estimated. 11Other includes AutoBranch domestic debit cards. 12All are Shetab domestic debit and credit cards. © 2018 The Nilson Report

© 2018 HSN Consultants, Inc. THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 7 Linked2pay Instant Merchant Settlement from page 1... payments can receive those funds Visa, Mastercard, Nyce, Star, especially if they occur on in their bank accounts in less Pulse, Interlink, AFFN, CU24, weekends. They are willing to than a second. The service uses FIS, Cirrus, , and The Clearing pay a premium for expedited House. The partners provide settlement. Vantiv and First Data their instant merchant settlement offer merchants the option of service on a white-label basis. instant settlement to a debit card. Their first customer is one of the Linked2pay provides ACH, five largest U.S. acquirers. credit card, RTP, and check linked2pay’s risk management and Currently, acquirers charge a processing automation on a merchant enrollment and boarding premium to provide next-day or white-label basis to banks, channel process to instantly partners, and their clients. authenticate The partners provide their Travis Dulaney is CEO at Push the debit card Payments in Fort Lauderdale, service on a white-label basis. connected to the Florida, (954) 947-5811, merchant’s bank [email protected], account. Push Payments handles same-day settlement to merchants www.pushpayments.com. settlement, regulatory compliance, via same-day ACH settlement. Richard McShirley is CMO and network protocols. Instant merchant settlement is at linked2pay in Oxnard, After initial enrollment, aimed at businesses that do not California, (805) 886-0687, acquirers manage merchant operate from 9:00 am until 5:00 [email protected], approval and funding. Push pm. These businesses currently www.linked2pay.com. Payments manages the financial wait from one to three days for settlement to debit cards using settlement on card payments, Prior issues: 1123, 1119, 1110

Payworks/CyberSource Omnichannel Partnership from page 1 When completed, CyberSource’s capabilities will CyberSource, which operates as a PSP, payment expand to full omnichannel support for its merchants. gateway, acquirer, and processor, could have built its Payworks, a pure third-party processor, has been own in-store processing capability but got everything it needed with Payworks, including all network certifications to processors. When connected to Payworks, CyberSource and Authorize.net will be in position to compete with omnichannel providers, offering customers its cloud-based, POS terminal- including Adyen. One benefit with Payworks is its agnostic PCI DSS and point-to-point encryption suite of developer-friendly tools, which provide (P2PE) platform for six years. Customers include ACI seamless integration with back-end systems and Worldwide, Concardis, Barclaycard, and . loyalty programs. Payworks says developers in a wide All clients use the same Pulse platform, which variety of verticals can integrate payment acceptance is provided through a software-as-a-service model. in less than 5 minutes. The software supports chip & PIN, in-app, and wallet payments. Developers integrate payment ac- Payworks is connected to merchants in 21 ceptance in less than 5 minutes. countries, mostly in Europe, but also in Africa and the U.S. The company earns revenue from licensing fees and from the number of transactions handled from Andre Machicao is Senior VP at CyberSource in San terminals it supports. Francisco, California, (415) 805-4273, amachica@ In February 2018, Payworks raised $14.5 million visa.com, www.cybersource.com. in Series B funding. Visa, which owns CyberSource Christian Deger is CEO at Payworks in Munich, Germany, and its sister company Authorize.Net, was an investor. 49 (89) 4161-58400, [email protected], Total funding in Payworks has reached $19 million. www.payworks.com.

8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Top U.S. Commercial Card Issuers from page 1... (government benefits, incentives, payroll, When measuring purchase volume from small rewards, etc.). business debit and prepaid cards combined, Bank of JPMorgan Chase remained first when measuring America remained the top issuer with $39.26 billion, purchase volume from corporate T&E, purchasing, up 6.5%. Wells Fargo ranked second with $35.28 fleet, and small business credit cards combined, with billion, up 7.2%. The Bancorp Bank ranked third $115.52 billion, up 0.4%. Bank of America continued with purchase volume of $28.02 billion, up 10.0%, to rank second with growth of 7.3% to $87.95 billion. followed by Comerica Bank with $19.18 billion, up U.S. Bank was third with commercial credit card 2.7%, and MetaBank with $18.52 billion, up 11.2%. purchase volume of $63.27 billion, up 7.0%. > see p.10

U.S. Visa & Mastercard Commercial Card Issuers 2017

Purchase Volume Trans. Cards Purchase Volume Trans. Cards Rank Issuer Brand (mil.) Chg. (mil.) (000) Rank Issuer Brand (mil.) Chg. (mil.) (000) 1 JPMorgan Chase V/M $ 132,212.3 1.2% 726.8 14,012 35 First Hawaiian Bank V/M $ 1,247.9 1.5% 4.3 59 2 Bank of America V/M $ 127,205.7 7.1% 934.5 26,122 36 City National Bank V $ 1,213.9 17.8% 5.9 40 3 Wells Fargo V/M $ 89,658.1 8.8% 626.3 10,890 37 Synovus Bank V/M $ 1,204.6 6.4% 8.1 138 4 U.S. Bank V/M $ 68,170.7 7.0% 302.7 5,123 38 First Tennessee V $ 1,116.0 11.1% 5.4 72 5 Citibank V/M $ 60,960.3 10.5% 329.2 11,648 39 Barclays V/M $ 1,103.9 6.9% 5.8 85 6 Capital One V/M $ 52,094.6 8.4% 327.4 4,059 40 Santander Bank M $ 1,036.9 14.0% 9.8 135 7 Comdata M $ 31,531.7 11.2% 186.6 3,318 41 Hancock Whitney Bank V $ 969.7 17.0% 6.6 60 8 The Bancorp Bank V/M $ 28,144.7 10.0% 565.2 33,135 42 IberiaBank V $ 891.0 12.7% 4.9 55 9 Wex M $ 26,679.5 31.5% 131.8 9,403 43 TIB-The Indep. BankersBank V/M $ 840.5 7.6% 6.2 358 10 PNC Bank V/M $ 25,263.5 8.5% 143.0 2,779 44 Frost Bank V/M $ 794.8 3.1% 6.8 139 11 Comerica Bank V/M $ 21,257.8 –4.7% 584.0 11,509 45 FirstBank V $ 701.4 3.7% 6.7 49 12 MetaBank V/M $ 18,523.7 11.2% 602.6 20,530 46 Umpqua Bank V $ 672.6 11.0% 6.1 69 13 SunTrust Bank V/M $ 11,625.9 2.4% 72.9 1,064 47 Navy FCU V/M $ 671.5 32.1% 7.0 114 14 BB&T V $ 10,520.8 23.0% 83.6 1,172 48 People’s United Bank M $ 651.4 24.5% 6.1 79 15 Commerce Bank V/M $ 8,245.0 7.6% 15.5 680 49 TCF Bank V $ 631.3 16.1% 8.1 75 16 Regions Financial V $ 8,235.6 6.4% 57.1 770 50 First Arkansas Bank & Trust V/M $ 529.9 6.2% 4.0 115 17 BMO Harris V/M $ 7,916.9 1.6% 43.0 540 51 BOK Financial V $ 513.3 8.8% 6.4 44 18 TD Bank V $ 7,364.6 11.9% 63.1 681 52 BancorpSouth M $ 397.3 5.0% 3.4 63 19 Fifth Third Bank M $ 7,124.0 0.6% 41.1 623 53 BECU V/M $ 376.0 20.3% 4.2 62 20 KeyBank M $ 5,858.3 32.0% 72.1 1,651 54 Heartland Financial V $ 359.2 36.1% 2.4 39 21 First National of Nebraska V/M $ 5,376.6 5.7% 30.9 394 55 America First CU V $ 301.5 7.5% 2.5 14 22 MB Financial V/M $ 4,685.7 14.1% 186.9 3,505 56 Randolph Brooks FCU M $ 295.3 19.2% 3.6 26 23 Citizens Bank V/M $ 4,470.0 8.1% 29.1 390 57 Alaska USA FCU V $ 267.8 9.2% 1.3 19 24 UMB Bank V/M $ 4,044.0 5.8% 15.5 5,029 58 Associated Bank M $ 265.1 –0.3% 2.9 31 25 Zions Bancorporation V $ 4,003.7 13.0% 21.7 298 59 Washington Trust V $ 260.7 12.0% 1.9 24 26 BBVA Compass V/M $ 3,601.5 5.9% 18.4 302 60 Webster Bank V $ 250.8 3.6% 2.7 27 27 M&T Bank V $ 3,263.2 12.9% 16.1 248 61 Trustmark National Bank V/M $ 249.1 3.6% 2.5 43 28 Bank of the West V/M $ 3,029.1 11.0% 18.2 197 62 VyStar CU V $ 217.2 20.9% 2.4 27 29 Huntington Natl Bank M $ 2,657.6 12.0% 23.2 992 63 Suncoast CU V $ 163.9 57.5% 2.1 15 30 First Citizens Bank V/M $ 2,034.9 17.8% 14.7 221 64 Desert Schools FCU V $ 134.9 10.8% 1.5 9 31 BofI Federal Bank V/M $ 2,010.4 13.1% 86.5 1,804 65 First Midwest Bank M $ 125.4 27.6% 1.2 9 32 HSBC Bank M $ 1,691.0 27.2% 6.8 148 66 Redwood CU V $ 106.6 18.2% 0.9 7 33 MUFG V/M $ 1,616.1 37.0% 13.6 167 67 NCMIC Finance Corporation M $ 104.1 –2.5% 0.9 11 34 Arvest Bank V $ 1,609.5 15.0% 13.5 148 68 Delta Community CU V $ 56.7 14.2% 0.6 7 Some prior year fi gures have been restated. Use percent change shown to calculate restated 2016 purchase volume. Others (mil.): Sound CU ($56.2, 622.3%), United Federal CU ($44.2, 21.7%), WSECU ($34.2, 13.9%), Baxter CU ($18.7, 33.7%), State Employees’ CU N.C. ($13.1, 11.0%). © 2018 The Nilson Report

© 2018 HSN Consultants, Inc. THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 9 Top U.S. Commercial Card Issuers Fleet Cards from page 9 Purchase Volume Purch. Trans. Cards The top two issuers of prepaid cards and Rank Issuer (mil.) Chg. (mil.) (000) the top two issuers of corporate cards each 1 Comdata 1 $ 30,005.3 10.6% 123.6 2,822 experienced double-digit increases. 2 Wex 1 $ 26,679.5 31.5% 131.8 9,403 3 Wells Fargo 1 $ 1,590.0 19.8% 12.4 — 4 SunTrust Bank $ 803.5 34.8% 2.8 57 Small Business Credit Cards Some fi gures may be included with purchasing cards. Others (mil.): Commerce Bank ($75.8, –0.6%), BMO Harris ($37.5, –24.3%), Comerica ($22.2, –98.7%), Bank of the West ($18.3, –0.4%), Synovus ($17.7, 10.6%), Citibank ($16.2, Purchase Volume Purch. Trans. Cards 1 Rank Issuer (mil.) Chg. (mil.) (000) 65.6%), Huntington National Bank ($9.2, 36.5%), PNC ($0.1). Includes some Mastercard Multi Card fi gures. © 2018 The Nilson Report 1 JPMorgan Chase $ 73,180.3 0.3% 439.2 5,086 2 Capital One $ 50,613.2 8.4% 312.1 3,810 3 Bank of America $ 36,342.2 10.5% 206.3 2,293 Purchasing Cards 4 Citibank $ 26,847.0 26.7% 167.1 7,210 5 Wells Fargo Bank $ 24,106.4 5.5% 143.4 1,810 Purchase Volume Purch. Trans. Cards 6 U.S. Bank $ 20,776.7 8.5% 127.8 1,817 Rank Issuer (mil.) Chg. (mil.) (000) 1 Bank of America $ 42,823.4 3.9% 88.2 1,285 7 PNC Bank $ 4,655.9 14.9% 26.3 128 2 JPMorgan Chase $ 36,894.7 0.8% 85.0 5,367 8 First Natl of Nebraska $ 3,672.5 7.4% 22.2 257 3 U.S. Bank $ 35,676.4 6.3% 82.0 1,574 9 BB&T $ 3,375.4 14.2% 22.6 423 4 Wells Fargo $ 28,686.6 13.3% 73.1 4,130 10 SunTrust $ 1,164.9 4.1% 8.8 170 5 Citibank $ 15,498.8 14.6% 42.7 1,023 11 BMO Harris $ 1,111.8 –13.9% 8.8 133 6 PNC Bank $ 11,468.4 1.8% 18.1 340 12 Barclays $ 1,103.9 6.9% 5.8 85 7 Commerce Bank $ 7,096.2 8.2% 6.6 307 13 Zions Bancorporation $ 1,058.9 10.5% 5.8 84 8 SunTrust Bank $ 4,730.6 –1.0% 6.7 130 14 First Citizens Bank $ 1,050.9 14.4% 6.3 106 9 Fifth Third Bank $ 4,580.0 1.1% 14.1 188 15 City National Bank $ 936.0 22.3% 3.6 24 10 Regions Financial $ 4,392.4 10.5% 10.2 104 16 TD Bank $ 872.7 23.9% 6.0 122 11 UMB Bank $ 3,635.4 6.4% 10.8 4,871 17 Regions Financial $ 870.2 0.1% 6.0 155 12 BMO Harris $ 2,640.6 10.5% 8.7 90 18 TIB $ 834.2 8.2% 6.0 354 13 BBVA Compass $ 1,929.2 18.8% 3.9 82 19 Fifth Third Bank $ 744.0 2.6% 7.0 135 14 Comerica Bank $ 1,852.4 11.0% 6.5 105 20 KeyBank $ 733.2 –5.4% 4.9 95 15 M&T Bank $ 1,621.7 20.2% 3.5 51 21 First Hawaiian Bank $ 485.2 6.2% 1.5 17 16 Citizens Bank $ 1,485.7 40.9% 2.7 37 22 Commerce Bank $ 462.7 15.8% 2.4 239 17 KeyBank $ 1,242.5 32.9% 4.1 113 23 First Arkansas B&T $ 448.4 9.8% 3.3 104 18 HSBC Bank $ 1,093.6 38.3% 3.6 66 24 Hancock Whitney Bank $ 406.6 4.4% 2.0 19 19 BB&T $ 843.5 5.5% 2.6 26 25 MUFG Union Bank $ 375.2 206.3% 2.4 34 20 TD Bank $ 808.3 0.9% 2.8 21 26 BBVA Compass $ 345.7 –1.3% 2.5 70 21 Bank of the West $ 752.5 20.1% 1.9 17 27 Citizens Bank $ 324.1 6.0% 2.3 43 22 Arvest Bank $ 600.9 22.0% 2.8 42 28 Bank of the West $ 243.6 8.1% 1.6 24 23 Huntington Natl Bank $ 590.1 21.4% 2.1 21 29 First Tennessee $ 222.4 2.8% 1.0 17 24 First Tennessee $ 563.5 15.9% 1.5 15 30 UMB Bank $ 197.0 1.3% 1.5 7 25 First Hawaiian $ 555.9 –3.0% 1.3 15 31 People’s United Bank $ 190.4 8.1% 1.1 17 26 IberiaBank $ 543.3 33.8% 1.6 13 32 Washington Trust $ 163.5 15.0% 1.1 15 27 First Natl of Nebraska $ 323.3 –2.2% 0.5 5 33 BancorpSouth $ 153.5 0.1% 1.2 13 28 Synovus Bank $ 320.3 17.8% 0.8 53 34 HSBC Bank $ 142.2 –5.4% 0.8 17 29 Heartland Financial $ 189.1 49.7% 0.7 10 35 Navy FCU $ 131.9 34.1% 0.9 18 30 Hancock Whitney Bank $ 165.8 102.7% 0.4 4 Others (mil): The Bancorp Bank ($105.0, 13.3%), NCMIC Finance ($104.1, –2.5%), Huntington National ($102.2, –4.8%), FirstBank ($102.1, 4.5%), Trustmark Includes virtualghost accounts and single-use accounts. Includes Visa One National ($100.3, 3.6%), MB Financial ($75.2, 16.4%), Synovus Bank ($72.0, Card and Mastercard Multi Card products. Comdata and Wex Mastercard Multi 11.7%), America First CU ($71.9, 12.0%), BECU ($57.8, 24.7%), IberiaBank ($54.8, Card cards are included in their fl eet fi gures. Others (mil.): MB Financial ($153.8, 9.8%), Heartland Financial ($36.8, 34.1%), Delta Community CU ($13.3, 10.3%), 62.7%), First Citizens Bank ($147.2, 160.2%), Alaska USA FCU ($128.1, 3.9%), VyStar CU ($9.7, 21.4%), Redwood CU ($6.6, 40.1%), Baxter CU ($5.9, 55.2%), Umpqua Bank ($122.9, 66.7%), Capital One ($94.0, 8.0%), Santander Bank ($93.8, United Federal CU ($4.4, 41.4%), Sound CU ($4.3, 518.4%), WSECU ($3.4, 27.8%), 304.5%), MUFG Union Bank ($54.5, 101.8%), Navy FCU ($13.6, –17.1%), United Suncoast CU ($3.0, 66.8%), Randolph Brooks FCU ($2.3, 47.2%). Federal CU ($8.4, 39.2%), Zions Bancorporation ($5.2, 3.4%), People’s United © 2018 The Nilson Report Bank ($3.1), The Bancorp Bank ($1.7, –77.8%). © 2018 The Nilson Report

10 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Small Business Debit Cards Prepaid Cards

Purchase Volume Purch. Trans. Cards Purchase Volume Purch. Trans. Cards Rank Issuer (mil.) Chg. (mil.) (000) Rank Issuer (mil.) Chg. (mil.) (000) 1 Wells Fargo $ 34,728.9 7.7% 375.4 3,416 1 The Bancorp Bank $ 27,679.2 10.5% 560.3 33,092 2 Bank of America $ 31,382.1 5.8% 320.6 3,153 2 MetaBank $ 18,523.7 11.2% 602.6 20,530 3 JPMorgan Chase $ 16,690.9 6.9% 170.8 2,800 3 Comerica Bank $ 18,495.4 2.9% 570.0 11,315 4 BB&T $ 5,686.5 33.0% 48.4 422 4 Bank of America $ 7,878.6 9.3% 263.5 18,461 5 TD Bank $ 5,492.6 12.3% 53.0 520 5 MB Financial $ 4,333.1 12.7% 184.7 3,483 6 PNC Bank $ 5,242.0 4.4% 59.7 529 6 KeyBank $ 2,259.1 105.8% 47.7 1,316 7 U.S. Bank $ 4,898.0 6.9% 48.8 731 7 BofI Federal Bank $ 2,006.6 13.0% 86.5 1,802 8 SunTrust Bank $ 4,019.2 3.5% 39.1 388 8 Comdata $ 1,526.4 23.2% 63.1 496 9 Citibank $ 2,638.0 –4.1% 24.0 320 9 PNC $ 612.8 22.8% 21.2 1,590 10 Regions Financial $ 2,414.0 3.4% 22.9 261 10 Regions Financial $ 559.0 0.2% 18.0 250 11 Citizens Bank $ 2,153.6 5.9% 21.8 269 11 Wells Fargo $ 546.2 –17.0% 22.0 1,534 12 Huntington Natl Bank $ 1,917.8 10.8% 19.9 905 12 BB&T $ 324.2 7.0% 8.4 283 13 Fifth Third Bank $ 1,800.0 –1.6% 20.0 300 13 SunTrust Bank $ 271.4 –11.4% 12.7 292 14 KeyBank $ 1,623.5 –0.4% 15.2 126 14 UMB Bank $ 80.0 –5.5% 1.9 99 15 Capital One $ 1,387.4 6.9% 15.1 240 15 Commerce Bank $ 38.3 10.4% 1.4 31 16 Bank of the West $ 1,310.7 5.6% 11.8 115 Some prior year fi gures have been restated. Others (mil.): BBVA Compass ($21.2, 17 BBVA Compass $ 1,305.4 –6.6% 11.4 126 –24.0%), BMO Harris ($13.4, –1.6%), Zions Bancorporation ($11.9, –0.3%), First Tennessee ($8.9, 7.9%), Hancock Whitney ($5.8, –22.7%), TIB ($3.6, –61.4%), 18 Zions Bancorporation $ 1,108.8 4.4% 10.3 147 Arvest Bank ($0.9, –6.8%), TD Bank (<$0.1). © 2018 The Nilson Report 19 M&T Bank $ 1,098.3 10.0% 9.8 155 20 MUFG Union Bank $ 985.1 1.2% 10.2 118 21 Santander Bank $ 943.1 6.4% 9.5 132 22 First Citizens Bank $ 836.8 11.2% 8.2 111 Corporate Cards 23 Frost Bank $ 794.8 3.1% 6.8 139 24 BMO Harris $ 749.5 3.7% 7.5 50 Purchase Volume Purch. Trans. Cards Rank Issuer (mil.) Chg. (mil.) (000) 25 Comerica Bank $ 686.1 –2.7% 6.3 63 1 Citibank $ 15,960.3 11.0% 95.2 3,078 26 Arvest Bank $ 683.8 14.2% 8.2 56 2 Bank of America $ 8,779.4 11.9% 55.9 929 27 TCF Bank $ 631.3 16.1% 8.1 75 3 U.S. Bank $ 6,819.7 6.2% 44.1 1,000 28 FirstBank $ 599.3 3.5% 6.0 44 4 JPMorgan Chase $ 5,446.4 0.2% 31.8 759 29 Umpqua Bank $ 548.8 3.3% 5.4 56 5 BMO Harris $ 3,364.1 1.1% 17.1 181 30 Navy FCU $ 525.5 33.7% 6.0 93 6 PNC Bank $ 3,284.3 34.5% 17.8 191 31 BOK Financial $ 513.3 8.8% 6.4 44 7 Zions Bancorporation $ 1,818.9 20.9% 5.5 52 32 Synovus Bank $ 479.9 6.8% 4.1 37 8 First Natl of Nebraska $ 1,170.2 3.7% 6.0 53 33 People’s United Bank $ 457.9 31.9% 5.0 63 9 Bank of the West $ 704.1 13.9% 2.9 34 34 Hancock Whitney Bank $ 391.5 11.7% 4.0 34 10 SunTrust Bank $ 636.4 –4.8% 2.8 27 35 The Bancorp Bank $ 338.6 –21.0% 4.0 24 11 M&T Bank $ 543.2 0.1% 2.7 41 36 Commerce Bank $ 337.4 4.4% 3.7 47 12 Citizens Bank $ 506.7 –31.8% 2.3 41 37 First Tennessee $ 321.2 9.4% 2.6 35 13 HSBC $ 381.8 32.1% 1.9 44 38 BECU $ 315.4 19.5% 3.7 53 14 Arvest Bank $ 323.9 5.3% 2.4 40 39 Randolph Brooks FCU $ 293.0 19.0% 3.6 25 15 Synovus Bank $ 314.7 –4.9% 2.4 33 40 IberiaBank $ 292.9 –12.5% 2.9 37 16 BB&T $ 291.2 33.0% 1.5 18 41 City National Bank $ 277.9 4.8% 2.3 16 17 Commerce Bank $ 234.4 –12.5% 1.1 50 42 Associated Bank $ 265.1 –0.3% 2.9 31 18 Comerica Bank $ 201.7 6.1% 0.9 19 43 Webster Bank $ 250.8 3.6% 2.7 27 19 MUFG Union Bank $ 201.3 258.5% 1.0 14 44 BancorpSouth $ 243.7 8.3% 2.3 49 20 TD Bank $ 191.1 3.9% 1.3 18 Others (mil.): America First CU ($229.6, 6.2%), First Natl ($210.6, 2.8%), :VyStar CU ($207.4, 20.9%), First Hawaiian ($206.7, 3.3%), Suncoast CU ($160.9, 57.4%), Some issuers of Mastercard Multi Card andor Visa One Card products (such as Trustmark ($148.8, 3.6%), Alaska USA FCU ($139.6, 14.5%), Desert Schools FCU MUFG Union Bank) include the T&E portion of that business in these fi gures, ($134.9, 10.8%), Heartland Fin.($133.3), First Midwest ($125.4), MB Fin. ($123.5), while some include those fi gures with purchasing cards. Others (mil.): First Redwood CU ($100.0), UMB ($98.5), Wash. Trust ($97.2), HSBC ($73.5), Sound Arkansas B&T ($81.5, –10.3%), Huntington Bank ($38.2, –7.5%), UMB Bank CU ($51.9), Delta Community CU ($43.5), United Federal CU ($31.4), WSECU ($33.2, 2.1%), The Bancorp Bank ($20.3, 10.4%), State Employees’ CU ($13.1, ($30.8), Baxter CU ($12.8), BofI ($3.7), TIB ($2.7). © 2018 The Nilson Report 11.0%), BECU ($2.7, 16.0%), Navy FCU ($0.6, 24.1%). © 2018 The Nilson Report

© 2018 HSN Consultants, Inc. THE NILSON REPORT JUNE 2018 / ISSUE 1134 / THE NILSON REPORT 11 © 2018 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

PayPal Buys Mass Payouts & Anti-Fraud Platforms from page 1... it will pay $2.20 billion in cash to buy iZettle, a small business commerce platform, and Jetlore, a machine learning technology company that provides predictive In the U.S., there models that offer insights to fraud marketing support to merchants. are approximately signals in real time. No terms were announced for the 3.7 million people who receive By comparison, in the more Jetlore deal. compensation from corporations widely used data warehouse via a prepaid Visa or Mastercard storage method, information is managed by Hyperwallet. Those modeled before it is filed. prepaid cards are issued by The Simility delivers adaptive Bancorp Bank and Meta Payment fraud prevention across multiple Systems. FIS is the account touchpoints—mobile, online, processor in the U.S. and also account signup, login, checkout, Hyperwallet operates a platform in Canada, where prepaid card and in-store. that delivers mass payments via accounts managed by Hyperwallet The company’s technology local bank transfer, to an existing are issued by Pace Credit Union. can be deployed onsite or on a credit or debit card account, to a software-as-a- corporate prepaid card, by way PayPal has spent $2.72 bil. in service basis. of cash through Western Union, cash in the last two months. Combining or via a wire transfer on behalf of Simility’s commercial customers in the U.S., capabilities Canada, Europe, and Australia. In Europe, prepaid card issuers with PayPal’s historical data The company is majority owned by connected to Hyperwallet and scale from 19 million private equity firm Primus Capital include Transact Payments, merchants and 237 million Partners. Other U.S.-based mass Valitor, and Western Union consumer accounts will create International Bank. strong analytical opportunities Simility offers to deliver risk protection as machine learning- a service to merchants and based fraud and risk financial institutions. management technology Brent Warrington is CEO at payment platforms are operated by to financial institutions, Hyperwallet Systems, Inc. in , Transpay, and Tipalti. including issuers and acquirers, Vancouver, Canada, (604) 482-0090, Corporations prefund all online merchants, digital [email protected], payments to Hyperwallet and businesses, and other customers www.hyperwallet.com. provide payment instructions in 11 countries. The company Rahul Pangam is CEO at Simility Inc. for recipients who can be in any was formed in 2014 by former in Palo Alto, California, of 200 countries. Hyperwallet Google executives. (650) 452-5186, [email protected], gives a portal to corporate clients, Simility’s adaptive decisioning www.simility.com. which they deploy with their own platform incorporates a data brands. Their freelance and other lake to store structured and Prior issues: 1087, 1078, 1064, part-time workers use the portal to unstructured data. Data of any 1060, 1050, 1049, 1047, 1031, 1005, register for payments. size or type can be used to create 1001, 766, 756

David Robertson, Publisher June 29, 2018

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