October 2016 Issue 536 www.cardsinternational.com AUSTRALIA’S SHINING CARDS MARKET • STRATEGY: Digital Wallets • ACQUIRING: Latin America • GUEST COMMENTS: Verizon and The PPRO Group • COUNTRY SURVEYS: Oman & Pakistan CI 536.indd 1 12/10/2016 16:54:58 Multichannel digital solutions for fi nancial services providers To fi nd out more about us please visit: www.intelligentenvironments.com Intelligent Environments is an international provider of innovative mobile and online solutions for fi nancial services providers. Our mission is to enable our clients to always stay close to their own customers. We do this through Interact®, our single software platform, which enables secure customer acquisition, engagement, transactions and servicing across any mobile and online channel and device. Today these are predominantly focused on smartphones, PCs and tablets. However Interact® will support other devices, if and when they become mainstream. We provide a more viable option to internally developed technology, enabling our clients with a fast route to market whilst providing the expertise to manage the complexity of multiple channels, devices and operating systems. Interact® is a continuously evolving technology that ensures our clients keep pace with the fast moving digital landscape. We are immensely proud of our achievements, in relation to our innovation, our thought leadership, our industrywide recognition, our demonstrable product differentiation, the diversity of our client base, and the calibre of our partners. For many years we have been the digital heart of a diverse range of fi nancial services providers including Atom Bank, Generali Wealth Management, HRG, Ikano Retail Finance, Lloyds Banking Group and Think Money Group. IE RBI final design.indd 1 05/05/2016 10:36:41 Cards International EDITOR’S LETTER CONTENTS EDITOR’S LETTER 2S: NEW DIGEST 6 GUEST COMMENT: VERIZON Mobile payments soar but UK not Jeffrey Granvold of Verizon writes on the need for proper even in European top 10: Visa infrastructures in the age of the Internet of Things 7 STRATEGY: DIGITAL WALLETS he number of European consumers card user vs 32% non-contactless card user), Aite Group has published an regularly using a mobile device – smart- shopping via a retailer app (49% vs 31%) or using in-depth report on the strategies phone, tablet or wearable – to make pay- a mobile device to pay for a meal (50% vs 30%). that digital wallet providers need to ments has tripled in the past year. adopt in Europe and the pitfalls that T they need to avoid. Robin Arnfield But according to research from Visa - the survey Prepaid’s future has never looked so bright speaks to Ron van Wezel about its covered more than 36,000 online consumers in 19 There is no better venue – Italy – for the annual key points European countries – the UK is punching below its Prepaid Summit Europe and awards. 10: EVENT ANNUAL PREPAID EUROPE weight and is not even in the top 10 markets for Timetric research finds that the number of pre- SUMMIT AND AWARDS mobile payments use. paid cards in circulation in Italy increased at a October means the Principe di In the UK, nearly three-quarters (74%) of the CAGR of 18.13% from 12.4 million in 2010 to Savoia, Milan and the annual Prepaid Summit Europe – again sponsored by people surveyed are mobile payments users, com- 24.1 million in 2014, and is expected to grow fur- Visa. CI previews the Prepaid Europe pared with the leading markets: Turkey (91%), ther to reach 32.4m by 2019. Award nominees Denmark (89%) Norway and Israel both at 87% Growth in the prepaid card market can be 11 ACQUIRING: LATIN AMERICA and Sweden (86%). attributed to improved infrastructure of POS ter- There are still opportunities for US Poland and Romania (both 79%), Ireland minals, security features and promotional offers acquirers active in Latin America, (78%), Finland (77%) and Belgium (75%) round by card issuers. despite economic turmoil in the region. Which countries have a great off the top 10. Consumer payment needs are changing and pre- number of opportunities? Robin The study highlights how consumer adoption paid is the payment platform that best serves this Arnfield writes of digital payments across Europe has shifted evolution. 14 COUNTRY SURVEY: AUSTRALIA dramatically in the last 12 months. One year ago, Prepaid is evolving from a simple, secure and 16 COUNTRY SURVEY: OMAN 38% of people surveyed said they had never used reliable payment tool to a new way to connect 18 COUNTRY SURVEY: PAKISTAN a mobile device to make payments and had no banks with new customers and segments. It is a 20 GUEST COMMENT: PPRO GROUP plans to do so. Today, that number has dropped delivery platform to enable any type of transac- Ralf Ohlhausen of the PPRO Group to 12%. tional behaviour. discusses the value of chatbots when There is a clear correlation with contactless as Prepaid is building new payment ecosystems applied to the payments sector the increase in engagement with digital payments and core solutions to open new markets leveraging coincides with greater adoption of contactless new channels to communicate with clients and technology. According to Visa, the research indi- offer content. The future of prepaid in Europe in cates that, across all age groups, contactless pay- general, and Italy in particular, has never been so ments are now the norm. In the UK, more than bright. half the people surveyed (58%) used contactless Short term, the strength of prepaid is reflected cards this year, up from 20% in 2015. in Awards shortlists. Europe-wide, contactless users are also consist- Full details of who won what and why will be ently more open to embracing newer payment online at www.cardsinternational.com from 28 methods than those who don’t use contactless October, and will appear in the November issue cards. The study highlights that contactless card of CI. users are more interested in using a mobile device Douglas Blakey as a payment method in a shop (52% contactless [email protected] Editor: Douglas Blakey Sub-editor: Nick Midgley For more information on Timetric, visit our Tel: +44 (0)20 7406 6523 website at www.timetric.com. Director of Events: Ray Giddings Email: [email protected] As a subscriber, you are automatically Tel: +44 (0)20 3096 2585 entitled to online access to Cards Email: [email protected] Financial News Publishing, 2012 Deputy Editor: Anna Milne International. For more information, please Registered in the UK No 6931627 Tel: +44 (0)20 7406 6701 telephone +44 (0)20 7406 6536 or email Email: [email protected] Head of Subscriptions: Sharon Howley [email protected] ISSN 0956-5558 Tel: +44 (0)20 3096 2636 Unauthorised photocopying is illegal. The Senior Reporter: Patrick Brusnahan Email: [email protected] London Office contents of this publication, either in whole or Tel: +44 (0)20 7406 6526 71-73 Carter Lane part, may not be reproduced, stored in a data Email: [email protected] Sales Executive: Harry Hooker London retrieval system or transmitted by any form or Tel: +44 (0)20 3096 2586 EC4V 5EQ Asia Editorial: Xiou Ann Lim means, electronic, mechanical, photocopying, Email: [email protected] recording or otherwise, without the prior Tel: +65 6383 4688 Asia Office permission of the publishers Email: [email protected] 1 Finlayson Green, #09-01 Customer Services: Singapore 049246 Group Publisher: Ameet Phadnis Tel: +44 (0) 20 3096 2636 Tel: +65 6383 4688 Tel: +44 (0)20 7406 6561 or +44 (0)20 3096 2622 Fax: +65 6383 5433 Email: [email protected] Email: [email protected] Email: [email protected] www.cardsinternational.com October 2016 y 1 CI 536.indd 1 12/10/2016 16:55:01 NEWS: DIGEST Cards International M&A Worldline acquires majority stake in KB’s processing business Worldline, a provider of payments and trans- for the sale of Cataps on 23 February 2016. banka, a renowned market leader in the actional services, has acquired an 80% stake Under the terms of the agreement, World- Czech Republic, which will bring the best in Cataps, a subsidiary of the Czech lender line and KB have signed an additional assets of the two partners to the retailer com- Komercni banka (KB). 10-year commercial alliance for the develop- munity, adding our rich payment and digital According to Worldline, the takeover will ment and the growth of these activities in the retail product portfolio and scalable process- enable the company to further develop prod- Czech Republic. ing systems to the wide distribution network uct and services for Czech merchants. Worldline general manager Marc-Hen- of Komercni banka, in order to satisfy the KB operates as a subsidiary of the Société ri Desportes said: “Komercni banka and fast-growing demand of Czech merchants for Générale group. After formation in 2014, Worldline have both been providing payment electronic payments equipment and associ- Cataps assumed KB’s activities in credit services and innovative solutions to the Euro- ated services.” and debit card payment processing services, pean market over several decades. From 1 October 2016, Cataps will be inte- including merchant acquiring. “At Worldline, we are now delighted to grated with the merchant services and termi- KB signed an agreement with Worldline welcome this new alliance with Komercni nals division of Worldline. < SECURITY Card industry delays slow US chip card transition Delays by card companies in installing equip- it. Around 60% of retailers said they had blessing. We wish they cared as much about ment for retailers to accept new chip-based been waiting for six months or longer.