March | April 2016 | paymentscardsandmobile.com in this issue Card Notes The changing global risks landscape in 2016 Real-time payments The need for speed Issuing & acquiring The future of the merchant payment ecosystem Contactless How UK payment habits The future of compare internationally digital payments The payments landscape beyond 2016 Let’s shape your future Enter the customer-centric digital world Merchant Services & Terminals Leveraging the customer engagement Mobility & eTransactional Services Enabling strategic digital transformation Financial Processing & Software Licensing Combining Innovation and Agility with Industrial payment processing Visit us at Money 2020 Europe 2016 Booth #A14 worldline.com Let’s shape your future Enter the customer-centric digital world www.paymentscm.com March | April 2016 Volume 8, Number 2 Editor-in-chief and publisher Alexander Rolfe Merchant Services Tel +44 1263 711 800 & Terminals [email protected] Editor If it ain’t digital and it ain’t fast, don’t bother! Leveraging Joyrene Thomas the customer Tel +44 1263 711 800 engagement [email protected] In this issue of PCM we acknowledge that three years in the Contributors payments industry is a very long time. The first findings of the Digital Joyrene Thomas Payments Report show just how far we have moved as an industry Head of Business Development and how the once-great have fallen. Wendy Sanders Tel +44 1263 711 801 In particular it is clear from the report that the once-strong and influential mobile Fax +44 1263 456 100 network operators have fallen from prominence in the digital wallet space and are [email protected] largely seen as being irrelevant in the conversation. Notably the payment networks, Mobility General Manager banks and handset manufacturers are seen as being the strongest in this area. The & eTransactional Gemma Haywood report offers a rich seam of insight into the three main regions in the world and Tel +44 1263 711 800 compares the various trends that are expected to unfold at different times across Services Fax +44 1263 456 100 those regions. Enabling strategic [email protected] Subscriptions and General Meanwhile the real-time payments conversation has moved into top gear. The need digital transformation Kaye Skinner for speed and for systems that are capable of delivering near real-time payments Tel +44 1263 711 800 Fax +44 1263 456 100 has never been greater. There are currently 18 deployments of real-time payments [email protected] systems around the world with a pretty even split by region — and more are in the Address planning stage with a super-system being discussed for the Eurozone. Payments Cards and Mobile The Stable, Hall Yard With so much going on and with speed and momentum building, it’s never been a Kelling, Holt more interesting time to be in payments. Financial Processing NR25 7EW & Software Licensing United Kingdom Cover, Design and Origination Adam Unsworth Combining Innovation Alexander Rolfe, and Agility with Printing Editor-in-chief and publisher, Industrial payment Micropress Printers Payments Cards & Mobile processing All rights reserved. No part of the publication may be reproduced or transmitted in any form without the publisher’s prior consent. Editorial Advisory Board While every care is taken to provide accurate information, the publisher cannot accept John Berns June Felix Visit us at Money 2020 liability for errors or omissions, no matter how President – Europe, Verifone Europe 2016 caused. Managing Partner, Accourt Payment Cards and Mobile™ Sylvie Boucheron-Saunier Denise Gee Booth #A14 is owned and published by General Manager, Continental Europe, ACI Director, Magna Carta PaymentsCM LLP ISSN 1759-829X Robert Courtneidge Simon Hardie Global Head of Cards and Payments, Director, Magna Carta worldline.com © PaymentsCM LLP 2016 Locke Lord contents news in brief 25. €1 billion revenue from mobile features wallets in Europe from 2021 6-7. The payments world in 60 days Mobile wallet transaction numbers in the 16. COVER STORY: European Union will experience a CAGR of card notes The future of digital 61.8 percent over 2016-2021, ensuring the payments revenue for the payments industry will pass 8. The changing global risks the €1 billion bar by 2021. landscape in 2016 Advancements in digital The increased likelihood of the top risks technology continued to shape regulation materialising is shaping the global risk the payments industry in 2015 agenda, according to the Global Risks as mobile, online and other 26. EU Commission and US agree Report 2016 from the World Economic digital forms of payments EU-US Privacy Shield Forum. moved into the mainstream. On 02 February 2016 the European Commission and the US announced a 9. EU Commission pushes for faster 20. Real-time political agreement on a new framework adoption of Anti-Money Laundering payments: The need for transatlantic data flows. Directive for speed The fourth EU Anti-Money Laundering (EU AML) Directive came into force in June Consumer-facing technology 2015, meaning member states have two brands have done much to years to transpose the provisions into reset customer expectations national law. around speed, what are the implications for the payments 12. Digital ready, steady, go industry? The journey to digital money is a long one without quick fixes. However the digitisation of money flows has a positive mobile payments impact on financial inclusion, and on governments, businesses and consumers. 13. GSMA announces IOT guidelines 28. Global mobile payment market The GSMA has published new to reach $620 billion in 2016 12. Apple and FBI face-off guidelines designed to promote the With major smartphone brands Apple and It has been billed variously as a battle secure development and deployment Samsung making a big entrance into the of privacy versus security, or security of services for the growing Internet of mobile payment business, the total revenue versus surveillance, Things (IoT) market. of the worldwide mobile payment market as the world’s in 2015 reached $450 billion. biggest brand issuing & acquiring and the FBI face off 24. The future of the merchant against each payment ecosystem another. There is a clear strategic need for acquirers, particularly in Europe, to 13. Cybercrime look beyond payments and payment underground split along national processing for new sources of revenue. 29. UK banks could lose 45 percent lines of their customers to alternative Cybercrime is a large, present and 25. Card payments in Asia Pacific set financial institutions evolving threat to all organisations to double to $19.5 trillion by 2020 A new study by Personetics has revealed operating online. In 2015, global security The value of card payments in Asia that nearly half of traditional UK bank software company, Trend Micro, Pacific grew by 25 percent in 2014 to customers could switch their current published a series of reports examining reach $9.0 trillion, accounting for just account to an alternative financial the cybercrime undergrounds ofvarious under half of the global total card institutions (AltFI) such as a challenger bank, countries. expenditure. retailer, or FinTech companies. 04 payments cards and mobile | March | April 2016 www.paymentscm.com contents contactless 36. Amazon acquires India’s 39. BIXOLON releases SPP-R200III Emvantage Payments Bluetooth and WiFi printer 30. How UK payment habits Amazon’s investment in the Indian BIXOLON has announced the launch of compare internationally e-commerce market has continued with the SPP-R200III 2-inch, WiFi and Bluetooth Payments UK, the trade association for the the e-tailer announcing it has agreed a Printer with NFC for POS, payments and payments industry, has published a second deal to acquire local online payments firm, auto-ID markets. report in its World Class Payments series, Emvantage. titled: How consumers around the world contracts make payments. 41. MasterCard reportedly bids £1 30. Cash remains king - despite billion for VocaLink explosive contactless growth MasterCard has reportedly drawn up plans LINK figures reveal that cash withdrawals for a takeover of VocaLink, the bank- from LINK ATMs in 2015 amounted to a 36. Omni-channel payments: myth owned company which handles £6 trillion- record £128 billion. or reality? worth of payments in the UK each year. The top technology challenges 31. Global mobile proximity payment retailers face around omni-channel are 41. TSYS deal for card issuers and users to surpass 1 billion by 2019 incompatible systems, data integration and merchants to combat fraud Mobile proximity payments are the the ability to track customers, according to TSYS announced an agreement with smallest, but fastest growing segment for new research from ACI Worldwide. Ethoca, a provider of collaboration-based mobile payments, according to global technology that enables card issuers and analyst firm Ovum. products e-commerce merchants to help minimise card-not-present fraud, recover lost 31. Android Pay to hit UK in March – 39. Megafon quits mobile payment revenue and eliminate chargebacks. LG Pay delayed platform Android Pay, Google’s Megafon, the Russian mobile operator, has 41. Wirecard acquires Brazilian mobile payments reportedly shut down its mobile payment online payment service provider service, is set to launch platform Megafon Money. Wirecard has acquired all shares of the in the UK in March Brazilian company Moip Pagamentos S.A., 39. Google launches face biometrics a fast-growing internet payment service pos terminals payment app provider founded eight years ago. Google has launched a new app 34. The POS of the future called Hands Free that does not require conferences The point of sale (POS) of the future will be you to take your phone out of your pocket. more intelligent and powerful. It will also be 42. Conference season kicks off more functionally-rich, value-adding and PCM kick-started its 2016 conference cloud-based. season with two great events. e-commerce 39. Powa Technologies sells business 36.