FOR 46 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE AUGUST 2017 / ISSUE 1115 Latin America’s Largest Acquirers See page 11 for a ranking of the 46 largest merchant acquirers in Middle East & Africa Latin America and the Caribbean based on transactions handled in 2016. This group processed 19.44 billion Mastercard and > see p. 10 MARKET SHARES InComm to Buy Amex’s Prepaid Platform OF PURCHASE VOLUME Prepaid card payment processor InComm will be the exclusive 2016 distributor in the U.S. of American Express prepaid card products as part of a transaction that involves its acquisition of Amex’s > see p. 5 U.S. General Purpose Card Brands—Midyear 2017 56% 40% 3% 1% Visa, Mastercard, American Express, and Discover credit, debit, Visa Mastercard Amex Diners and prepaid cards generated 46.07 billion purchase transactions –82 bps +70 bps +13 bps –1 bps from January 1 through June 30, 2017—up 2.25 billion or 5.1% > see p. 7 PURCHASE VOLUME ($BIL.) 2015 VS. 2016 QR Code Payment Global Interoperability ‘15 167.34 Visa• ‘16 184.59 EMVCo, the global technical body that manages specifications ‘15 113.03 for contact and contactless EMV card transactions, has released Mastercard• ‘16 130.62 specifications for QR (quick response) code-based mobile ‘15 8.06 > see p. 12 Amex• ‘16 8.72 Alternative Credit for Online Payments ‘15 3.24 Diners• ‘16 3.94 Providing consumers with credit for big-ticket retail purchases © 2017 The Nilson Report from online merchants is the business of U.S.-based Bread, a start–up that recently received $126 million in Series B equity > see p. 8 Middle East–Africa Cards 2016 Tokens for Personally Identifiable Information The total volume of purchases for goods and services combined Visa, Mastercard, American Express, Discover, and other networks with cash transactions at ATMs and over the counter at provide tokens that secure the primary account number of a branches generated by Visa, Mastercard, American Express, and payment card. TokenEx provides a service that both creates Diners Club brand credit, debit, and prepaid cards issued in the > see p. 6 Middle East and Africa reached $886.48 billion in 2016, up 11.1% from 2015. Purchase volume for goods and services from Amex/MineralTree B2B Virtual Card Partners these global brand general purpose cards reached $327.86 American Express and MineralTree have created a platform that billion, up 12.4%. Cash volume was $558.61 billion and lets midsized companies automate the supplier payment process accounted for 63.02% of total volume in 2016, down from from invoice to remittance, an option previously available only to 63.45% in 2015. > see p. 6 > see p. 9 INSIDE 2 – 3 Fast Facts CHARTS 7 U.S. General Purpose Cards MY 2017 vs. MY 2016 4 Investments & Acquisitions—July 2017 9 Middle East and Africa General Purpose Cards 2016 5 Vanstone POS Terminal Including YOY Growth/Decline in Purchase Volume 8 Type–Ahead Address Verification 11 Largest Merchant Acquirers in Latin America 2016 © 2017 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM TSYS’S MERCHANT SERVICES segment will provide pay- FACTOR4, a provider of private label prepaid card and ment processing services to Monetary’s network of software loyalty programs to small and midsized merchants, has developers and merchants. Monetary offers a single, integrated its software platform with Click a Waiter, a POS integrated platform with its own payment gateway. system that offers online and Facebook ordering services. Tim Munto is Group Executive at TSYS Merchant Services, Dan Battista is President at Factor4, (484) 614-6813, dan@ (502) 693-1821, [email protected], www.tsys.com. Shelley factor4gift.com, www.factor4gift.com. Osvaldo Rodriguez is Plomske is CEO at Monetary, (970) 828-3223, shelley@ CEO at Click a Waiter, (978) 401-9191, osvaldo@ monetary.co, www.monetary.co. clickawaiter.com, www.clickawaiter.com. FAST PAYROC, a merchant services provider with more than AMERICAN EXPRESS CHECKOUT, available at participat- 10,000 customers in the U.S. and Canada, offers iTransact ing online merchants, permits U.S.-based cardholders to Mobile Merchant, a mobile point-of-sale card acceptance check out using their Amex account login credentials instead FACTS service from iOS and Android devices. An EMV chip and of manually adding their personal information. Participating magnetic stripe card reader with Bluetooth connectivity is merchants include Delta Air Lines, Avis and Budget car rental AUGUST 2017 also available. Payroc is an ISO for Fifth Third Bank and uses firms, Hulu, Neiman Marcus, Preferred Hotels & Resorts, ISSUE 1115 Vantiv for processing support. Ryan Hallett is CRO at Payroc, Staples, 1-800-Flowers.com, Airbnb, Braintree, Stripe, (708) 675-4580, [email protected], www.payroc.com. Ticketmaster, and others. Luke Gebb is SVP, Enterprise Digital No paid at American Express, (212) 640-2000, [email protected], RISK IDENT, a provider of fraud prevention software advertising. www.americanexpress.com. supported by machine learning, has opened an office in the No sponsored U.S. The company specializes in helping large enterprises COMMERCE BANK offers its small and midsized merchant content of identify and prevent online fraud, including payment fraud, customers “CashFlow Complete,” digital tools that create an account takeover, and identity theft. Dustin Clinard is automated service for accounts payable and accounts any kind. Ever. Managing Director for U.S. Operations, (617) 935-0007, receivable. Bill.com provides the tools and payment platform. It is never [email protected], www.riskident.com/en/. Users can send and receive electronic payments, eliminate paper, manage approvals digitally, and integrate with permissible for CONSUMER FINANCIAL PROTECTION BUREAU accounting software. Bill.com’s payment network links subscribers to (CFPB) says that over at least 10 years, more than 200,000 2 million U.S. businesses that collectively process more than forward or print consumers in Puerto Rico, the U.S. Virgin Islands, and other $36 billion annually. Rene Lacerte is CEO at Bill.com, this issue. Doing so U.S. territories were harmed by discriminatory practices by (650) 353-3301, [email protected], www.bill.com. American Express, which included higher interest rates, violates copyright Matt White is Director of Commercial and Small Business stricter credit cutoffs, and less debt forgiveness. American laws. Strategy at Commerce Bank, (816) 234-8993, matt.white@ Express has paid $95 million in redress and will pay at least commercebank.com, www.commercebank.com. another $1 million to fully compensate consumers. Conferences & Seminars Finovate Fall 2017: September PayThink 2017: September 18-20, PayExpo Europe 2017: October Seamless Payments Indonesia 11-14, 2017. The New York Hilton 2017. The Arizona Biltmore, 4-5, 2017. The ExCeL London, 2017: October 10-11, 2017. The Midtown, New York. Estimated Phoenix, Arizona. Estimated London, U.K. Estimated attendance: Pullman Central Park Hotel, Jakarta, attendance: 1,500. Cost for the attendance: 450. Cost for the 2,200+. Cost for the two-day confer- Indonesia. Estimated attendance: four-day conference is $2,195. three-day conference is $1,495. ence is $1,600. Subscribers to 1,500. Cost for the two-day confer- Subscribers to The Nilson Report Subscribers to The Nilson Report The Nilson Report will receive a ence is $750. Subscribers to will receive a 20% discount. (Use will receive a 20% discount. (Use 20% discount. (Use code TNR20.) The Nilson Report will receive a code F17FALLNLT.) Contact code NILSON.) Contact Brent Free passes are available for retail 15% discount. (Use code JYWQ.) Tyler Ferst at The Finovate Group, Hendrix at SourceMedia, banks, retailers, gaming operators, Contact Kalyani Lakshmanan at (646) 895-7329, tyler.ferst@ (212) 803-8369, brent.hendrix@ government authorities, CEOs, and Terrapinn, (65) 6322-2330, knect365.com. Register at sourcemedia.com. Register at start-ups. Contact Andrew Earle at [email protected]. https://finance.knect365.com/ https://www.paymentssource.com/ Clarion Events, 44 (20) 7384-7893, Register at finovatefall/purchase/ conference/paythink. [email protected]. www.terrapinn.com/exhibition/ select-package. Register at seamless-indonesia. www.payexpo.com/europe. 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 ALIPAY, the QR code-based mobile payment system operated by Ant Financial Services, is moving into South Africa through Peach Payments, a payment Figures service provider. Peach Payments is integrated with ACI Worldwide’s global include network of more than 350 acquirers and alternative payment methods. ACI cards has a global partnership with Alipay. Markus Rinderer is SVP at ACI Worldwide, in 49 (89) 452-300, [email protected], www.payon.com. Rita Liu is Head of EMEA at Alipay, 44 (20) 7395-8310, [email protected], circulation www.antfin.com. Rahul Jain is COO at Peach Payments, 27 (21) 200-5877, and [email protected], www.peachpayments.com. spending ALPHA PAYMENTS CLOUD has formed a joint venture with Australia Post for 1,073 Card Issuers called AlphaCommerceHub (ACH). The ACH platform provides merchants with credit from 114 countries in all world regions a single user interface to connect to all venders they need to support ecommerce including payment processing, identity verification, fraud & debit protection, loyalty programs, and more. Ronan McDonnell is Marketing Coordinator at Alpha Payments Cloud, 353 (8) 6376-2313, ronan.mcdonnell@ 282 Merchant Acquirers alphapaymentscloud.com, www.alphapaymentscloud.com. from 78 countries in all world regions MERCADOTECNIA IDEAS Y TECHNOLOGIA (MIT), a payment processor in Mexico serving 17,000 merchants with more than 80,000 outlets, will use adaptive behavioral analytics risk management technology from Featurespace in for real-time monitoring and protection against fraud as well as for reduction Asia-Pacific, of chargebacks and false alerts.