September 2016 Issue 535 www.cardsinternational.com THE CRUCIAL COMBINATION Cards International talks to NCR, Wincor Nixdorf and the ATMIA on ATMs • M&A: VocaLink • TECHNOLOGY: Transparency • COUNTRY SURVEYS: New Zealand, South Korea and Ukraine • GUEST COMMENTS: myPINpad & Collinson Group CI 535.indd 1 27/09/2016 15:37:46 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 6 INTERVIEW: NCR Patrick Brusnahan catches up with Happy first birthday for US chip NCR’s Rachel Nash and Steve Nogalo to see what they think about some of the industry’s latest developments adoption 7 GUEST COMMENT: WINCOR NIXDORF ons said bank, ahead of payment networks (81%), Wincor Nixdorf managing director hey took their time about it but once the Richard Broadbent discusses the US finally shifted to chip, banks, mer - global online brands (70%), and mobile telcos importance of changing, quickly and chants and consumers are the winners. companies (64%). when neccessary On the first anniversary of the liability Just two years ago, 65% of Britons said that 8 DISTRIBUTION: ATMIA Tshift, 88% of MasterCard consumer credit cards banks were most trusted when the inaugural Visa Robin Arnfield reports on the ATM have chips, a year-on-year increase of 105%. Industry Association’s call for card Biometric Payments study was conducted. networks to abolish rules prohibiting For merchants, MasterCard reports two million Fingerprint authentication (88%) is considered higher surcharge fees for more chip-active merchants – one third of all US mer- the most secure form of payment, ahead of iris- expensive cards chants – a whopping 468% increase since October scanning (83%) and facial recognition (65%). 10 GUEST COMMENT: MYPINPAD 2015. The last snippet of positive news comes courtesy David Poole discusses how card Of the two million chip-active merchant loca- companies need to up their game of the British Retail Consortium as CI goes to press: tions, 1.3 million are regional and local merchant when it comes to online and mobile cash was used for less than half (47.15%) of all commerce locations, representing a 159% increase since Octo- retail transactions across the UK in 2015, falling ber 1, 2015. 11 AWARDS: CEPI ASIA five percentage points on the previous year. Cards International and Electronic For consumers, MasterCard reports that 90% of Almost 20% fewer transactions are made with Payments International have Americans frequently use chip cards, a 38 percent- announced the winners of the third cash than in 2011 according to the BRC. Cash dis- age point increase year-over-year. CEPI Asia Awards placement has of course been driven by retailers MasterCard is fully entitled to claim that the fig- 12 M&A: VOCALINK ures represent ‘significant progress’. investing in new payments technology and by card David Yates, CEO of VocaLink and issuers, with around 55% of cards currently in use now on the MasterCard management As an extra little nudge to US retailers yet to committee, speaks to Anna Milne adopt chip, it can flag up, again, the security angle. now featuring contactless technology. about MasterCard’s acquisition of For the record, cash (47.15%) remains ahead of VocaLink, and what the future holds MasterCard fraud data shows a 54% decrease for the two companies in counterfeit fraud costs at US retailers who have debit cards (38%), credit/charge cards (11%) and non-card payments (3.6%). 13 TECHNOLOGY: TRANSPARENCY completed or are close to completing EMV adop- At Sibos, one of the key topics of tion, when comparing April 2016 to April 2015; With a record quantity of cash in circulation, discussion was how technology counterfeit fraud costs increased by 77% year-over- an all-time high of 70,000 ATMs in the UK and can aid transparency. Anna Milne reports year among large US merchants who have not yet three million people in the UK who use cash for the migrated or have just begun the migration to chip. majority of their transactions, there remains life in 14 COUNTRY REPORT: NEW ZEALAND And while we are at it, there is positive news from cash for the foreseeable. 16 COUNTRY REPORT: SOUTH KOREA In one sense, September does witness the begin- 18 COUNTRY REPORT: UKRAINE the UK, this time courtesy of research from Visa. 20 GUEST COMMENT: COLLINSON Banks are the most trusted institution in the pro- ning of the end of paper cash in the UK, with the GROUP vision of biometric authentication for payment ser- launch of the polymer £5 note. With smartphones reaching the vices with Britons twice as likely to trust banks as It is a seismic change; polymer £10 and £20 notes peak of their popularity, there is no excuse not to invest in a feature- government agencies to store their biometric infor- will follow. rich banking experience, writes mation (60% versus 33%). Christopher Evans of Collinson Group Asked who is best placed to offer biometrics Douglas Blakey authentication to confirm identity, 85% of Brit- [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. 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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: Alex Aubrey London retrieval system or transmitted by any form or Tel: +44 (0)20 3096 2602 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 September 2016 y 1 CI 535.indd 1 27/09/2016 15:37:52 NEWS: DIGEST Cards International PAYMENTS Wirecard to manage payment services for Wizz Air Wirecard has signed an agreement with of this business. For us, service and inno- Reiche said: “The partnership with Wizz Hungary-based low-cost airline Wizz Air to vation are a priority and we work hard to Air for Central and Eastern Europe is really manage its payment services in the field of ensure that our passengers have a smooth positive news for us. We will not only now be card acquiring. Irrespective of location, cus- and hassle-free experience throughout all able to further expand our global portfolio, tomers can book flights online using Visa, stages of their journey. but also to demonstrate the efficacy of our MasterCard or Maestro. “One of the crucial elements is to give our payment platform.” To make the payment process more con- customers the opportunity to pay in their Wirecard Group supports all sales chan- venient, Wirecard has agreed to support pay- preferred currency. Wirecard’s first-class nels with credit card acceptance. As well ment settlement in around 20 currencies. global coverage and optimum technical as being a principal member of Visa and Wizz Air head of corporate finance and structure made the selection of our partner MasterCard, Wirecard has acquiring licence fleet acquisition Andras Sebok said: “Wizz an easy choice for us.” agreements with JCB, American Express, Air is focused on every controllable cost item Wirecard head of sales airlines Eckart Discover/Diners, UnionPay and UATP.