FOR 49 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE FEBRUARY 2020 / ISSUE 1169 Visa and Mastercard—U.S. 2019 Purchase volume tied to consumer and commercial credit, U.S. General Purpose Brands debit, and prepaid Visa and Mastercard cards issued in the U.S. Purchase Volume in 2019 Tl. reached $5.732 trillion in 2019, an increase of 9.0% over 2018. > see p. 10 Visa Credit Visa Debit $2.089 $1.942 Worldline to Buy Ingenico u 6. u 9. Worldline will spend $8.63 billion (€7.80 billion) in cash and stock to acquire Ingenico. The cash portion amounts to 25% of the purchase price. The deal is expected to be completed by July > see p. 5 29% Protecting Against Deep Fakes/Cheap Fakes Photographs and video images manipulated by off-the-shelf or rudimentary editing apps are called “cheap fakes.” Editing apps can remove or modify objects in an image, make it seem the photo or 31% $6.698 > see p. 5 Tl. 14% NXP Expands NFC Payments Ultra-Wideband (UWB) technology from NXP Semiconductors 12% delivers spatial knowledge greater than the current level of 12% accuracy found in GPS. Retailers, automobile manufacturers, and > see p. 6 Discover Mastercard Phone-to-Phone Global Money Transfers $0.146 Credit u .1 Mastercard $0.910 Cross-border money transfers are a $700- to $800-billion-a-year Debit u 12.2 business on the path to becoming a $1-trillion annual opportunity American Express $0.791 u 9.0 this decade. Mobile network operators (MNOs) worldwide want $0.821 > see p. 6 u 6. Fraud Fighting for Loyalty Programs © 2020 The Nilson Report Ecommerce fraud-fighting technology for large enterprises has General Purpose Cards—U.S. 2019 been the business of Forter since 2013. The company reviewed transactions valued at $150 billion last year with its fully automated Visa, Mastercard, American Express, and Discover brand > see p. 12 commercial (including small business), and consumer credit, debit, and prepaid cards issued in the U.S. generated $6.698 American Express and Mastercard in China trillion in purchase volume (spending for goods and services) in American Express is a year ahead of Mastercard and Visa in 2019, up 8.5% over 2018. Cash advances on credit cards and establishing domestic card operations in China. It received cash withdrawals on debit/prepaid cards are not included in preliminary approval from the People’s Bank of China (PBOC) that amount. > see p. 12 > see p. 7 INSIDE 2–3 Fast Facts CHARTS 4 Investments & Acquisitions—January 2020 8 Credit Card Outstandings—U.S. 2019 vs. 2018 4 Investments & 5 Card Processors Market Capitalization 9 General Purpose Credit Cards Issued in the U.S. Acquisitions— 7 General Purpose Cards Issued in the U.S. 10 Visa & Mastercard Purchase Transactions & Cards January 2020 8 Shares of Purchase Volume—U.S. GP Cards 11 Visa & Mastercard Debit/Prepaid/Credit—U.S. © 2020 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM INLET, a joint venture of Pitney Bowes and Broadridge ASTRA, provider of a platform consumers can access by way Financial, has expanded its bill presentment network to of a mobile app to automatically transfer cash between their offer clients access to Mastercard Bill Pay Exchange, which accounts, has joined Visa’s Fintech Fast Track Program in the helps consumers view, manage, and pay their bills through a U.S. Terry Angelos is SVP and Global Head of Fintech at Visa, variety of payment methods, and receive payment confirma- [email protected], www.visa.com. Gil Akos is CEO at Astra, tion in real time—without leaving their bank’s mobile app or [email protected], https://astra.finance. website. Christopher Johnson is CEO at Inlet, chris.johnson@ KABBAGE has integrated custom loan offers to small inletdigital.com, www.inletdigital.com. Manal Toukan is SVP, businesses that use its Kabbage Payments subsidiary to Product Management, North America at Mastercard, FAST handle accounts receivables. Businesses can choose terms [email protected], www.mastercard.com. between 3 and 45 days and either repay loans in full or THE BANCORP BANK will provide back-end banking ser- allocate up to 100% of Kabbage Payments revenue towards FACTS vices and act as the exclusive Mastercard debit card issuer the balance over a period of time. Kabbage Payments offers for digital personal finance company SoFi. Ryan Harris is EVP unlimited online invoicing, next-day deposits, and no monthly FEBRUARY 2020 and Head of Payments Partnerships at The Bancorp, rharris@ fees. Rob Frohwein is CEO, [email protected], thebancorp.com, www.thebancorp.com. Anthony Noto is CEO www.kabbage.com. ISSUE 1169 at SoFi, [email protected], www.sofi.com. BIGCOMMERCE, a top provider of SaaS ecommerce plat- No display ads. BLUEFIN will provide PCI-validated point-to-point encryp- form services, has added a suite of multicurrency features to tion support to payment provider FroogalPay. That company support merchants’ cross-border operations. The features let No sponsored provides a virtual terminal, invoicing system, and hosted merchants natively present, transact, and settle purchases in content. payment pages to merchants, as well as access to 120+ more than 100 foreign currencies through prebuilt integra- No paid gateways. Greg Cornwell is CRO at Bluefin, gcornwell@ tions with payment providers Adyen, Elavon, Klarna, PayPal advertising of bluefin.com, www.bluefin.com. Jonathan Reinsdorf is CEO Express Checkout, and Stripe. BigCommerce will soon add at FroogalPay, [email protected], www.froogalpay.com. support for Barclaycard, BlueSnap, and PayPal’s Braintree. any kind. Jimmy Duvall is Chief Product Officer at BigCommerce, INGENICO has integrated Apple Pay support for loyalty Posting this issue [email protected], www.bigcommerce.com. programs with its software platforms. Shoppers can make to a company server purchases at the point of sale with Face ID or Touch ID on FACTOR4 has become the preferred private label prepaid or forwarding it to their iPhone and automatically present a merchant’s loyalty card and loyalty platform provider to payment processor other individuals in card, prepaid card, coupon, or ticket stored in their Apple Beyond. Dan Battista is CEO at Factor4, [email protected], your company is a Wallet. Mark Bunney is Director of Go-To-Market Strategy at www.factor4gift.com. Chad Carr is Chief of Business violation of copyright Ingenico North America, [email protected], Tool Products at Beyond, [email protected], laws. www.ingenico.com. www.getbeyond.com. Conferences & Seminars Seamless Middle East 2020: ICMA Expo 2020: March 29–April Seamless Southern Africa 2020: SEAA 2020: April 6–8, 2020. The March 25–26, 2020. The Dubai 1, 2020. The Saddlebrook Resort, April 6–8, 2020. The Sandon Intercontinental Miami, Miami, World Trade Centre, Dubai, U.A.E. Tampa, Florida. Estimated atten- Convention Center, Johannesburg, Florida. Estimated attendance: 900. Estimated attendance: 10,000. dance: 350. Cost for the four-day South Africa. Estimated attendance: Cost for the three-day conference is Cost for the two-day conference conference is $995 for members and 1,000. Cost for the three-day $125 until April 5, or $175 on-site. is $1,500. Subscribers to The $1,595 for nonmembers. Sponsor- conference ranges from $472 Contact John McCormick at General Nilson Report will receive a 65% ship and exhibitor opportunities are (R6,950) to $607 (R8,945). Group Credit Forms, (314) 216-8600, discount. To access this discount available. Contact ICMA at rates available. Subscribers to The [email protected]. Register book through the following link: (609) 799-4900, [email protected]. Nilson Report will receive a 20% at www.southeastacquirers.com. http://tiny.cc/seamless-partner- Register at www.icmaexpo.com. discount. (Use code Nilson20.) discount. Contact Pearl Crasto at Contact Nkululeko Mpanza at Terrapinn, 971 (4) 440-2537, Terrapinn, 27 (11) 516-4051, [email protected]. [email protected]. For more information visit Register at http://bit.ly/2vOWORt. https://bit.ly/2STsi2g. 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 SPLITIT PAYMENTS, provider of card-based installment payments mer- PAYONEER, a digital payment platform used by businesses around the world chants can offer consumers, will integrate with Stripe Connect, enabling mer- serving over 4 million customers, has deployed the data science platform chants to automatically onboard to Splitit’s platform. Currently, that process is from Iguazio to predict and prevent fraud using real-time machine learning undertaken manually. Splitit will pay a small percentage of every transaction applications. Yaron Weiss is VP Corporate Security and Global IT Operations at processed via Stripe Connect to Stripe. Jeanne DeWitt Grosser is Head of North Payoneer, [email protected], www.payoneer.com. Asaf Somekh is CEO America Revenue and Growth at Stripe, [email protected], www.stripe.com. at Iguazio, [email protected], www.iguazio.com. Brad Paterson is CEO at Splitit, [email protected], www.splitit.com. NAJM prepaid cards in the Middle East can be added to Apple Wallets for ZELLE NETWORK reports $187 billion in person-to-person payments Apple Pay transactions. The cards are issued by U.A.E.-based Majid Al Futtaim processed on 743 million transactions in 2019. The monetary value grew 57% Finance. Cards operate on i2c’s Agile cardholder account processing platform year over year, with transactions up 72%. The network is owned and operated Amir Wain is CEO at i2c, [email protected], www.i2cinc.com. Rasool Hujair is by Early Warning Services. Lou Anne Alexander is Chief Product Officer at Early CEO at Majid Al Futtaim Finance, [email protected], www.maf.co.ae.