ISSUE 1193 MARCH 2021 ARTICLES IN THIS ISSUE p5 Largest Merchant Acquirers in p12 Merchant Cash Advances Using the United States QR Codes in India p10 Zwipe and Tag Systems p13 Stablecoin and CBDC Payment Biometric Card Partnership Processing from First Digital p11 Payments-as-a-Service in p14 Forter and Capital One Europe from Modulr eCommerce Authorizations p11 Affirm’s BNPL Debit Card TRANSACTIONS (BIL.) IN 2020 Top U.S. Merchant Acquirers The six largest acquirers ranked by total purchase transactions are led by Chase and Fiserv. Fiserv includes Citi, Santander, SunTrust, BBVA and six months of its share of the BAMS joint venture. BAMS was dissolved June 30, with 51% ownership of the contracts going to Fiserv and 49% going to Bank of America. Read full article on page 5 CHASE 27.6 FISERV 27.5 FIS 25.1 GLOBAL 9.7 PAYMENTS WELLS 9.6 FARGO 6.0 BANK OF AMERICA © 2021 Nilson Report FOR 50 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE CONTENTS COVER STORY Top U.S. Merchant Acquirers Merchant Cash Advances The 63 largest acquirers of payment card transactions in the U.S. are ranked on Using QR Codes in India pages 6 and 7 based on their Mastercard and Visa volume handled in 2020. As an incentive for merchants to accept p5 payments via QR codes rather than cash, BharatPe will loan them up to $10,000. p12 Diem Networks U.S. is expected to Stablecoin and CBDC Payment Processing launch its private stablecoin-based from First Digital payment system by midyear. The not-for-profit association behind Diem Networks U.S. is expected to launch the private stablecoin-based payment system by midyear. Initially pegged to the U.S. dollar, other currencies are expected to follow. p13 Zwipe and Tag Systems Biometric Card Zwipe’s third-generation product combines a contactless card’s RFID antenna, a biometric fingerprint sensor, and the EMV chip on a single piece of silicon. Forter and Capital One p10 eComm Authorizations Forter will provide Capital One much of the same data it uses to create a risk- Payments-as-a-Service from Modulr management score for merchants. Customers receive a core payment account they can link to debit and p14 prepaid cards, account-to-account (A2A) payments, and ACH files. p11 Affirm will offer its card to REGULAR FEATURES p3 First Look p Investments & Acquisitions 4.5 mil. active customers 15 Conferences + Seminars information including discounts available on our website Affirm’s BNPL Debit Card FEATURED IN OUR UPCOMING ISSUE Cardholders can use the card to pay from their bank account or use an app to set up installment payments after their purchase. General Purpose Cards in p11 Latin America Activity on Visa, Mastercard, American Express and Diners Club brand cards is reported for calendar year 2020. PHOTO CREDITS: Cover and Back Page Flipboard on Unsplash; p2 Annie Spratt (top) and Crawford Jolly (bottom) on Unsplash; p5 Kenta Kariya on Unsplash; p12 Stefano Bazoli on Unsplash First Look News in brief on payment industry trends around the world. NOK NOK LABS’ S3 Authentication BNP PARIBAS, the fourth largest MERCHANTE SOLUTIONS, an end- Suite’s FIDO-based passwordless merchant acquirer in France, will offer to-end payment processor and 24th authentication technology will be made instant account-to-account payments largest acquirer in the U.S., will provide available to merchants, PSPs and to its ecommerce merchants through UnionPay card acceptance to its nearly acquirers through a partnership with a single interface to banks provided 20,000 ecommerce merchants. The Netcetera. That company is a global by Token. That company’s Token Pay company will connect to UnionPay’s software firm with more than 2,000 bank service provides access to up to 3,000 SecurePlus two-factor authentication and card issuer customers in addition banks in Europe. Payments are initiated application, which is provided by U.S.- to over 100,000 merchants that use its directly from apps and websites. based Payscout. certified 3-D Secure products. Carlo Bovero is Global Head of Cards and Innovative Sandra Blair is EVP at MerchantE, sblair@ Walter Beisheim is Chief Business Development Payments at BNP Paribas, carlo.bovero@ merchante.com, www.merchante.com. Manpreet Officer at Nok Nok Labs, wbeisheim@ bnpparibas.com, www.bnpparibas.com. Todd Clyde is Singh is President at Payscout, manpreet@ noknok.com, www.noknok.com. Kurt Schmid is CEO at Token, [email protected], www.token.io. payscout.com, www.payscout.com. Marketing & Innovation Director Secure Digital Payments at Netcetera, [email protected], CONSUMER FINANCIAL PROTECTION PAYMENTS LEADERSHIP COUNCIL has www.netcetera.com. BUREAU has filed litigation in federal been formed by U.S.-based companies court against BrightSpeed Solutions including American Express, Discover ACI WORLDWIDE, a global provider of and its founder for knowingly processing Financial Services, FIS, Fiserv, Global real-time digital payment software and payments for companies engaged in Payments, Mastercard and Visa. The PLC services, has formed a partnership with internet-based technical-support scams. will work with policymakers to “promote InComm Payments to provide a barcode BrightSpeed closed down in March the unique and critical role the payments payment token that digitizes cash 2019. The CFPB alleges BrightSpeed’s industry will play in economic recovery in payments of consumer bills. Consumers actions violated the Consumer Financial the U.S. in the aftermath of Covid-19.” can take the barcode to any of more Protection Act of 2010 in addition to Raj Date, former Deputy Director of the Consumer than 60,000 participating retail agents deceptive telemarketing practices in Financial Protection Bureau, will be the PLC’s connected to InComm’s VanillaDirect violation of the Telemarketing Sales Rule. Founding Director, [email protected], Network. The Internal Revenue Service The CFPB seeks injunctions against www.paymentsleadershipcouncil.org. (IRS) is the first customer for the service. BrightSpeed and its founder, as well as “damages, redress to consumers, Sanjay Gupta is EVP at ACI, sanjay.gupta@ which provides cloud- disgorgement of ill-gotten gains, and the E-COMPLISH, aciworldwide.com, www.aciworldwide.com. based payment compliance and imposition of civil money penalties.” Tim Richardson is SVP at InComm Payments, customized acceptance and processing [email protected], www.incomm.com. services, has integrated with Plaid to I2C has announced credit card create a bank-account and balance PAYONEER, provider of a global payment processing partnerships with Archa in verification process. The aim is to reduce and commerce platform used by more Australia as well as Community Bank of ACH returns and increase ACH deposits. the Chesapeake (CBTC) and Credit than five million digital businesses, will Stephen Price is CEO, [email protected], Sesame in the U.S. Archa offers a offer the Payoneer Digital Purchasing www.e-complish.com. Mastercard to SMBs, ecommerce sellers corporate card platform. CBTC and and freelancers worldwide. Last month, Credit Sesame offer consumer and payment Payoneer announced that it will go public commercial card products. BLACKHAWK NETWORK’S platform for prepaid digital and physical through a SPAC transaction, which Amir Wain is CEO at i2c, [email protected], products has added support for Tops values the company at approximately www.i2cinc.com. Oliver Kidd is CEO at Archa, Friendly Markets’ company-branded $3.3 billion. [email protected], www.archa.com.au. Miro cards sold on the store chain’s website. Tim Montgomery is Head of Fintech Partnerships at Pavletic is GM of Global Banking at Credit Sesame, Jennifer Philo is GVP of U.S. Digital Commerce and Mastercard, [email protected], [email protected], www.creditsesame.com. Loyalty at Blackhawk, [email protected], www.mastercard.com. Charles Rosenblatt is Chief Jimmy Burke is President at CBTC, [email protected], www.blackhawknetwork.com. Strategy Officer at Payoneer, charlesro@ www.cbtc.com. payoneer.com, www.payoneer.com. www.nilsonreport.com NILSON REPORT 3 SOFI, a digital personal finance company CARDKNOX, an omnichannel payment PAYSAFE GROUP, a specialized payment with 1.8 million customers, is offering gateway provider, offers merchants Split platform that handles almost $100 a no-annual-fee Mastercard credit Capture, a tool that captures the amount billion in payment volume annually, will card. Cardholders will receive up to 2% of separate shipments of a single order. use Microsoft’s Azure cloud service to unlimited cash back when applied to a Merchants benefit by placing a hold on host its U.S. payment processing and SoFi Money or SoFi Active Investment the total amount of the purchase and merchant services. account or used to pay down a SoFi initiate funding of each shipment as it Roy Aston is CIO at Paysafe, [email protected], personal loan or student loan refinance. occurs. This feature is available on the www.paysafe.com. Trevor Nies is Sr. Director of Global The Mastercard card is issued by the Cardknox Merchant Portal or through a Payments at Microsoft, [email protected], Bank of Missouri. Cardknox software integration. www.microsoft.com. Maria Renz is EVP & Group Business Unit Leader – Mark Paley is VP of Sales, [email protected], Money, Invest & Credit Card at SoFi, [email protected], www.cardknox.com. KEVIN. is a start-up that provides an www.sofi.org. API-based service merchants can use ARCUS, a fintech-as-a-service platform, to identify a debit cardholder’s bank in AMERICAN FINTECH COUNCIL has been has launched Arcus Pay, a network of order to switch the payment away from a formed by the merger of the Marketplace 60,000 retailers in Mexico to support card network into an account-to-account Lending Association with the Online cash-in and cash-out transactions for transaction.