FOR 45 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE SEPTEMBER 2015 / ISSUE 1072 Global General Purpose Cards — Midyear 2015 Credit, debit, and prepaid cards carrying Visa, UnionPay, MasterCard, American Express, JCB, and Diners Club/Discover brands generated $9.879 trillion in purchase volume of goods > see p. 11 PURCHASE VOLUME Rewards/Loyalty Platform for Europe’s SMBs Middle East/Africa Izicap offers a cloud-based platform acquirers use to offer small and midsized businesses (SMBs) rewards and loyalty programs, Market Shares as well as analytics to support marketing campaign management. of $286.71 Bil. in Purchase Volume 2014 > see p. 6 Featurespace Machine Learning Fraud Fighting 57% 39% 3% 1% Predictive models using adaptive behavioral analytic tools operating on a machine learning-based platform is the business Visa MasterCard Amex Diners of fraud fighter Featurespace. The company says that card issuers 78 > see p. 10 Change in Basis Points Chase Freedom Mobile App 2014 vs. 2013 Chase Freedom is a cash back credit card product available since -14 2003 from the largest credit card issuer in the world. Cardholders -32 -32 earn 1% cash back from most card purchases and 5% in select > see p. 5 Purchase Volume ($Bil.) in 2013 vs. 2014 CashStar Private Label Prepaid Visa 136.9/162.1 A Series D funding round led by FTV Capital has brought another MasterCard 97.4/112.9 $15 million to private label prepaid card provider CashStar. Amex 8.1/8.6 Total venture funding in CashStar has reached $50 million. The Diners 3.0/3.1/3.1 > see p. 12 © 2015 The Nilson Report Mobile Payments in Austria Payment Services Austria (PSA), which is owned by Austrian banks, provides debit card issuing and ATM acquiring services in Austria. Cards in the Middle East and Africa PSA outsources debit card account processing to Switzerland-based Credit, debit, and prepaid cards issued in the Middle East > see p. 8 and Africa region with the MasterCard, Visa, American Express, and Diners Club brands generated $786.32 billion U.S. Commercial Cards — Part 3 in total volume in 2014. This included purchases for goods Commercial and consumer credit, debit, and prepaid general and services as well as cash transactions at ATMs and purpose cards in circulation in the U.S. in 2014 combined to over the counter at branches. Total volume grew 16.3% generate $4.440 trillion in purchases of goods and services. from 2013. Purchase volume for good and services only > see p. 9 > see p. 7 INSIDE 2 – 4 Fast Facts CHARTS 7 Middle East/Africa General Purpose Cards 2014 vs. 2013 5 PerformLine Marketing Compliance Platform 9 Purchase Volume U.S. Cards 2014, Consumer & Commercial 8 Zazoo Mobile Virtual Cards 11 Purchase Transactions on Global General Purpose Cards 10 Merchant Litigations Update Midyear 2015, Credit and Debit © 2015 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM CONSUMER FINANCIAL PROTECTION BUREAU has BANK OF AMERICA is promoting two new MasterCard fined Fifth Third Bank $500,000 and required it to provide credit cards to passengers of Amtrak. The Amtrak Guest Re- an estimated $3 million in relief to eligible cardholders for wards World MasterCard offers a complimentary companion deceptive marketing practices associated with insurance coupon, one class upgrade, and a single-day Club Acela pass products that promised to cancel payments owed due to job when accounts are opened, 20,000 Amtrak Guest Rewards loss, disability, hospitalization, or other hardship. Fifth Third bonus points after spending at least $1,000 within 90 days is the 11th U.S. issuer to be fined by the CFPB for deceptive of account opening, 3 Amtrak Guest Rewards bonus points marketing practices of credit card add-on products. for every $1 spent with Amtrak, and more. Michael Simpson is Executive for Co-Brand Partnerships BLUE STAR PAYMENT SOLUTIONS has become the at Bank of America, (302) 432-0511, michael.simpson@ FAST preferred processing partner of ParkHub.com’s Prime bankofamerica.com, www.bankofamerica.com. mobile POS platform. Jerry Mooty is President at Blue Star Payment Solutions, (972) 525-0685, jmooty@bluestarpays. ALLIANCE DATA SYSTEMS will provide private label FACTS com, www.bluestarpays.com. Jarrod Fresquez is CMO at credit cards and support services for Toyota and Lexus in the ParkHub, (214) 663-0505, [email protected], U.S. It will also assume ownership of an existing Visa co- www.parkhub.com. branded card program currently owned by Toyota Financial SEPTEMBER 2015 Savings. Melisa Miller is President, Card Services at KOUNT, a top provider to card-not-present merchants of ISSUE 1072 Alliance Data, (614) 729-4900, melisa.miller@ fraud detection and sales support, has integrated into its alliancedata.com, www.alliancedata.com. SaaS platform Emailage, a technology that gives merchants Objective, the ability to assess and leverage risk based on a user’s VERIFONE’S EMV-compliant, NFC-enabled UX Solutions independent email address. Brad Wiskirchen is CEO at Kount, unattended payment devices have been certified by Moneris (208) 489-3389, [email protected], www.kount.com. reporting for Solutions. Shan Ethridge is VP and GM, North American Rei Carvalho is CEO at Emailage, (480) 226-6822, Financial Services Group at Verifone, (770) 754-3432, 45 years. [email protected], www.emailage.com. [email protected], www.verifone.com. Chris Lee is President of North America Strategic Partnerships at No paid EMERGENT PAYMENTS, formerly Live Gamer, will Moneris, (502) 296-8457, [email protected], advertising. integrate into its payment acceptance platform Optimal www.monerisusa.com. Payments’ Neteller service and Net+ Card Stored Value No sponsored products. Neteller offers more than 100 payment options PAYMENT DATA SYSTEMS’ wholly-owned subsidiary, content of through a single API connection. Emergent Payments FiCentive, is offering a reloadable prepaid card that busi- any kind. focuses on emerging markets. Lorenzo Pellegrino is EVP at nesses can use for disbursements to customers, contractors, Optimal Payments, (646) 595-9212, lorenzo.pellegrino@ and employees. The Stream Prepaid MasterCard, issued optimalpayments.com, www.optimalpayments.com. by Metropolitan Commercial Bank, supports the delivery of Mitch Davis is CEO at Emergent Payments, (917) 671-8201, commissions, rewards, and other payments. Houston Frost [email protected], is SVP, Prepaid Products at Payment Data, (210) 249-4080, www.emergentpayments.net. [email protected], www.paymentdata.com. Conferences & Seminars NFC Solutions Summit 2015: ETA Strategic Leadership Forum Mobey Day 2015: October 14-15, 2015 WSAA Annual Conference: October 7-8, 2015. The Arizona 2015: October 13-15, 2015. The JW 2015. The CosmoCaixa, Barcelona, October 28-29, 2015. The M Resort Grand Resort, Phoenix, Arizona. Marriott Scottsdale Camelback Inn Spain. Estimated attendance: 300. Spa Casino, Henderson, Nevada. Estimated attendance: 250. Cost Resort & Spa, Scottsdale, Arizona. Cost for the two-day conference is Estimated attendance: 1,000. Cost for the three-day conference is Estimated attendance: 450. Cost for $1,508 (+21% VAT). for the two-day conference is $99. $1,020 for members and $1,270 the three-day conference is $1,295. Subscribers to The Nilson Contact Xavier Ayala, President, for nonmembers. Subscribers to Subscribers to The Nilson Report will receive a 25% WSAA, (707) 445-5401, The Nilson Report will receive Report will receive a $100 discount. (Use code MD1525%.) [email protected]. Register at a 20% discount. (Use code discount. (Use code NILSON.) Contact Shalini Sharma at www.westernstatesacquirers. PDDSC.) Contact Bill Rutledge at Contact Del Baker Robertson at Mobey Forum, shalini.sharma@ com. Smart Card Alliance, (212) 866- ETA, (202) 828-2635 x204, dbaker@ mobeyforum.org. Register at 2169, [email protected]. Register at electran.org. Register at http://mobeyday.com. www.nfcsolutionssummit.com. www.electran.org/slf15. 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 Seventh Edition NACHA’S Payments Innovation Alliance has formed a team to explore topics 7th Edition related to mobile wallets, including best practices, provisioning and accep- Figures Largest tance issues, and implementation challenges. The Alliance has more than 200 include cards member organizations. George Throckmorton is Managing Director, Advanced Payments Solutions at NACHA, (804) 737-8200, [email protected], in circulation www.nacha.org. Card Issuersand and spending VISA has designed a biometric specification that can be integrated with EMV for Merchant Acquirerschips to support “match-on-card” authentication. Absa Bank in South Africa credit Over 1,000* Card Issuers will use it at ATMs, where cardholders will use a fingerprint reader rather & debit from 115 countries in all world regions than a PIN. John Sheets is Senior Director of Risk Products at Visa, (415) 805-4078, [email protected], visa.com. card *includes over 700 outside the U.S. SAM’S CLUB, a division of Wal-Mart Stores and the 8th largest U.S. issuers retailer, will accept American Express cards beginning October 1, 2015. Anré Williams is President, Global Merchant Services at American Express, (212) 640-8809, [email protected], www.americanexpress.com. 275* Merchant AcquirersWorldwide from 65 countries in all world regions a 2015 Nilson Report Publication MUFG UNION BANK in the U.S. has launched a commercial card program *includes over 190 outside the U.S. offering Purchasing, T&E, ePayables Virtual Cards, and other products. The © HSN Consultants Inc. 2015 THE NILSON REPORT, www.nilsonreport.com/specialreport. Reproducing or allowing reproductioncards are MasterCard branded. Ray Fattell is Head of Product and Innovation or dissemination of any portion of this document in any manner is a copyright violation subject to substantial fines. for Transaction Banking at MUFG Union Bank, (646) 452-4782, in [email protected], www.unionbank.com/commercialcards.