a mPOS Tracker™ report OCTOBER 2017 How Raise Is Giving Unwanted Gift Cards NEW VALUE The mobile app that finds happy homes Target ditches Apple Find the top providers in for unwanted gift cards for Android the latest Tracker Scorecard – page 5 (Feature Story)5 – page 8 (News and8 Trends) – page 16 16 mPOS Tracker™ © 2017 PYMNTS.com all rights reserved Table of Contents PAGE What’s Inside A look at the quickly evolving mPOS space and the latest news on new 03 internationally-minded merchant mPOS solutions. PAGE Feature Story Raise founder and CEO George Bousis on how the company is using a mobile 05 marketplace to get value out of unwanted gift cards. PAGE News and Trends 08 The latest headlines and trends from around the mPOS world. PAGE Top 25 Providers | Scorecard The results are in. See this month’s top scorers and a provider directory 15 featuring 291 major players in the space. PAGE About 159 Information on PYMNTS.com. mPOS Tracker™ © 2017 PYMNTS.com all rights reserved October 2017 | 2 What’s Inside mPOS technology developers and Meanwhile, payment terminal technology provider providers in the U.S. and abroad are iZettle made a pair of announcements regarding businesses outside of its native Sweden. The company increasingly turning more attention announced last month that it had reached an agreement toward non-American audiences with the European Investment Bank (EIB) to provide — and with good reason. nearly $36 million in funding over the next three years. The investment will fund the development of artificial According to several studies, the demand for mobile intelligence (AI) and machine learning technologies. wallets and other forms of mobile payment is simply greater outside the U.S. than within it. iZettle also announced it will expand its U.K. offering. The company debuted its iZettle Invoice feature, While American consumers have told researchers they designed to help businesses in the country issue invoices don’t see value in using the new smartphone-based and manage resulting cash flow, in its app for British payment methods, Europe has shown greater desire for merchants. mobile payments. In Poland, for example, a Mastercard study revealed that nearly two-thirds of Polish consumers Using a mobile app to turn dud gifts into cash are eager to use mobile payments more often than Americans are missing out on $1 billion in used gift cards they currently do. And, in the U.K., Tap and Go mobile each year. payments have recently seen a spike in usage. But what if someone’s gift card trash could become Over the past month, providers have debuted new tools someone else’s money-saving treasure – and give the and services to satisfy the growing appetite for mobile original recipient a chance to actually find some value in a payments abroad. gesture that was ultimately a swing and a miss? Here’s a quick snapshot of notable, recent mPOS That’s the idea behind Raise, according to its founder and news: CEO George Bousis. In a recent interview with PYMNTS, Mastercard is hoping to take advantage of Poland’s he said that in 2013, he debuted Raise as a mobile app hunger for more mobile payment acceptance among and eCommerce marketplace that allows consumers to customers. The company announced it will test a new buy and sell gift cards from each other. program in the country to enable small and medium-sized October Tracker updates businesses (SMBs) to accept cashless payments with only a Samsung smartphone and app. This issue of the mPOS Tracker features 291 global providers in the Scorecard and highlights notable players Similarly, mPOS technology provider Payworks is looking from around the space. Also, four companies have to build a business based on consumer desire for Tap been added this month to the ever-expanding provider and Go mobile payments in the United Kingdom. The directory: Octopus Retail Management, Payroc, Paymate company announced it is bringing its payment gateway and Unique Secure (US). platform to the U.K. in partnership with payment solutions provider First Data Merchant Services (FDMS). mPOS Tracker™ © 2017 PYMNTS.com all rights reserved October 2017 | 3 What’s Inside $4.21 Billion Projected value of worldwide mPOS market by the end of 2017 $35.55 51% Predicted growth of global mobile payment market through 2021 Percentage of surveyed Canadian consumers who will no longer use cash by 2020 Five Fast Facts5 17% Percentage of American consumers who regularly use their smartphones to pay 15% Percentage of U.K. retailers that report using a mobile inventory and sales system mPOS Tracker™ © 2017 PYMNTS.com all rights reserved October 2017 | 4 FEATURE STORY How Raise Is Giving Unwanted Gift Cards New Value any gift recipients have experienced the holiday That’s the idea behind Raise, according to founder and Mtradition of tearing the wrapping off a present CEO George Bousis. In a recent interview with PYMNTS, from a well-meaning family member, friend or co-worker Bousis said he debuted Raise as a mobile app and to find a gift card – one that he or she will never, ever eCommerce marketplace in 2013, all to help consumers use. It’s a tradition of which the recipient shall not buy and sell gift cards from each other. speaketh negatively — if he or she know what’s best for “In a lot of industries, there are hundreds of billions everyone involved. of dollars in [gift] cards sold every year, but much of it Thanks! Just what I never wanted and still, really, don’t… goes unspent, and [Raise] is designed to change that by giving cash to people who don’t want their gift cards,” After mustering the decency to thank the thoughtful he said. “The whole idea behind Raise is that it’s almost gift-giver, many of those unwanted gift cards go unspent, like newfound money [for sellers], or your money is more left abandoned in the back of wallets or at the bottom of valuable, because [buyers are] spending, say, $40 to get a junk drawers. But, what if someone’s gift card trash could $50 gift card.” become someone else’s money-saving treasure — and also give the original recipient a chance to actually find The mobile marketplace has since grown to include more some value in what was an otherwise dud gift? than 2 million gift card buyers and sellers, and boasts mPOS Tracker™ © 2017 PYMNTS.com all rights reserved October 2017 | 5 Feature Story more than $140 million in gift card value sold. And, as Bousis told PYMNTS, plans for more growth are currently in the works. UNDER THE HOOD Passing value from one consumer to another GEORGE BOUSIS of Raise on mobile wallets When Bousis was first building Raise, the idea was to find customers by offering both buyers and sellers a value At this point, American audiences haven’t exactly proposition to make them want to buy or sell an unused responded favorably to mobile wallet technology. But, gift card. according to recent research, mobile gift card marketplace Raise has one of the largest mobile wallet usage rates of “It ultimately comes down liquidity and options for the any company. In a recent interview with PYMNTS, George seller,” he said. “In many cases, 10 percent less dollar Bousis, founder and CEO of Raise, explained why and how value, but in cash rather than a store credit, is more the company has worked to accept and encourage mobile wallet payments. desirable for their situation[s]. For buyers, unlike using a coupon or cash back or loyalty points, where you have to “Somewhat surprisingly, we see a lot [of mobile use]. I spend just to get the deal, or only buy certain items that think a large part of that is because [we were] a mobile- qualify, you can just shop how you normally would, and first marketplace when we started, and that’s how the your money will be worth 10 or 15 or 20 percent more company still is today, so we have consumers who are more likely to be earlier adopters of that technology. with the gift card.” I think it’s also partly because typically people shop Consumers with value sitting on unused gift cards can list with Raise first. They spend money on a gift card and then they go use that gift card. They’re using it to them on Raise by uploading details about the card and shop on-the-go from anywhere, so sometimes it makes picking the price. Bousis explained that while the app more sense for them to use a mobile wallet, especially does allow sellers to set whatever price they see fit for because the transaction is already happening on a their cards, Raise offers them tips to help facilitate easy mobile device. transactions. By volume of transactions, we [are usually] in the upper That includes enabling sellers to personalize their goals 1 percent of Apple or Android or Samsung Pay, at this point. We’ve seen different statistics that report that for selling the gift card. Depending on the situation — — and we’ve pretty consistently ranked high there — whether a seller would rather recoup as close to the full which we’re really glad to see, because I think mobile store credit value in cash as possible, make sure the card wallet technology is something that can make our sells without worry or avoid having to wait a while for it customers’ lives easier and get them what they need to sell at all, among others — the app can recommend faster, and that’s really what we’re all about.” different pricing and discounting strategies, based on for how much, and when, other similar cards have sold.