largest maestro issuers worldwide top 150 credit card ... · pdf filelargest maestro issuers...

9 Visa & MasterCard Worldwide through 3Q 2015 vs. 3Q 2014

10 Largest Maestro Issuers Worldwide 2014 11 Largest Credit Card Portfolios Worldwide 2014

2 – 4 Fast Facts 5 ID Tech POS Hardware 7 CPI Card Group IPO on Nasdaq and TSX 12 RS2 Card Management Software

INSIDE CHARTS

Top Credit Card Issuers WorldwideThe 150 largest issuers of credit cards based on outstanding receivables at year-end 2014 are listed on page 11. Outstandings were tied to American Express, Diners Club, Discover, JCB, MasterCard, UnionPay, Visa, and domestic general purpose credit cards.

Mobile Payments in PolandBlik is the domestic mobile payment service in Poland. Managed by Polish Payment Standard (PSP), it was formed by Alior Bank, Bank Millennium, Bank Zachodni WBK, ING Bank Slaski, mBank,

Gemalto Brings Dynamic CVV to MexicoAll banks in Mexico are required by the Comisión Nacional Bancaria y de Valores, the country’s banking regulator, to secure online and mobile banking sessions with two-factor authentication.

ACI Worldwide Buys Pay.OnACI Worldwide acquired Pay.On for $200 million in cash and stock on November 4, 2015. Pay.On was a pioneer in sales support for online merchants in Europe. It provides a gateway that payment

Visa & MasterCard Outside the U.S. through 3Q ‘15MasterCard purchase volume outside the U.S. accounted for 63.33% of its global purchase volume of goods and services, up from 61.65% for the same nine-month period in 2014. Purchase

Largest Maestro Issuers WorldwideThe 100 largest issuers of Maestro brand debit cards based on purchases at merchants for calendar year 2014 are listed on page 10. The issuers represented 40 countries.

Omnichannel QR Code Payments for Large RetailersOmnyPay has created an integrated QR code-based mobile loyalty, rewards, and payment platform for large retailers whose consumers will download a wallet app branded with the retailer’s service mark.

Square IPO on NYSEAn initial public offering (IPO) on the New York Stock Exchange (NYSE) of 31 million shares of Square Class A common stock on November 19, 2015, raised $279.5 million. Square provides

© 2015 The Nilson Report

Brazil $58.5

Venezuela $27.4

Chase $129.6BofA $100.2Amex $93.8Citbank $82.3Cap. One $72.7

MID. EASTAFRICA

ASIA– PACIFIC

LATINAMERICA

UNITED STATES

CANADACANADA

EUROPE

$705

$119

$163

$78

$542

$53

China $373.0 ICBC $59.6 China Construction $53.5 Bank of China $43.6 Agricultural Bank $36.3 China Merchants $35.7 Bank of Commun. $27.4 China Minsheng $27.4

10

48

34

29

26

U.K.TurkeyRussiaSpain

GreeceGermany

France

$94.8$32.8

$32.8$14.0

$4.6$3.5$2.9

Top 150 Credit Card IssuersWorldwide by Region

Based on Outstandings in 2014Issuers Region Outstandings (Bil.)

> see p. 10

> see p. 9

> see p. 6

> see p. 8

> see p. 5

> see p. 6

> see p. 7 > see p. 11

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JETPAY, which provides card acceptance processing and support services to 11,000 merchants, now offers its cus-tomers software from Hybrid Business Services that automatically calculates the merchant’s total cost of accept-ing card payments. Merchants can use the calculation to offer their customers a discount if they pay with cash. Peter Davidson is Vice Chairman at JetPay, (484) 324-7982, [email protected], www.jetpaycorp.com. Jeff Moskowitz is CEO at Hybrid Business Services, (323) 999-4427, [email protected], www.hybridsvcs.com.

FIRST DATA is now the preferred provider of cybersecurity and payment processing services to NCR’s customers in the grocery, petroleum, and convenience store industries. NCR will be a preferred provider of ATM hardware and services to First Data’s client base of more than 4,000 financial insti-tutions. Jimmy Frangis is GM, Payments & Security at NCR, (770) 688-3064, [email protected], www.ncr.com. Guy Chiarello is President at First Data, (212) 515-3171, [email protected], www.firstdata.com.

STOCKPILE’S prepaid card is available at select U.S. retailers through Blackhawk Network in denominations of $25, $50, and $100. The cards can be redeemed online for stock or ETFs, including commodity ETFs (gold, coffee, cocoa) and Index ETFs (NASDAQ, S&P 500). Customers can open a brokerage account within minutes and get fractional shares of stock. David Tate is SVP, Products and Marketing at Blackhawk Network, (925) 226-9990, david.tate@ bhnetwork.com, www.blackhawknetwork.com. Dan Schatt is CCO at Stockpile, (415) 705-1374, [email protected], www.stockpile.com.

ETHOR, a provider of point-of-sale integration services, has implemented a new loyalty middleware specification created by MasterCard that will enable mobile applications to offer a seamless connection between payment, promo-tions, and loyalty redemption. Gary Ziegler is CEO at eThor, (650) 933-3332, [email protected], www.ethor.com. James Anderson is EVP, Digital Payments at MasterCard, (917) 408-2862, [email protected], www.mastercard.com.

FAST

FACT

S

DECEMBER 2015

ISSUE 1076

Objective,

independent

reporting for

45 years.

No paid

advertising.

No sponsored

content of

any kind.

Ever.

AMERICAN EXPRESS has expanded the free cash reload network for eligible prepaid Serve Card customers to include Dollar General and Rite Aid locations. The total number of outlets exceeds 45,000 and includes CVS/pharmacy, Walmart, and participating 7-Eleven locations. Stefan Happ is Chief Commercial Officer, Enterprise Growth at American Express, (212) 640-2000, [email protected], www.americanexpress.com.

TARGET has agreed to pay another $39.4 million to banks over the retailer’s 2013 data breach that resulted in stolen payment card data being used to make fraudulent trans-actions. MasterCard card issuers will receive $19.1 million, and a separate group of credit unions and community banks will receive $20.3 million. Previously, Target agreed to pay Visa issuers $67 million.

NORDSTROM now offers its customers the ability to create custom prepaid eGift cards using a large selection of Nordstrom-designed faceplates, artwork, and personalized messages. The eGift card is delivered in a virtual Nordstrom silver envelope. The technology is available through Cash-Star’s cloud-based platform. Ben Kaplan is CEO at CashStar, (207) 549-2222, [email protected], www.cashstar.com. Sean Burrow is Director, Gift Card at Nordstrom, (206) 454-2073, [email protected], www.nordstrom.com.

JCB’S J/Smart contactless payment application identifier has been certified for EMV chip card acceptance in the U.S. by Global Payments, the 8th largest U.S. acquirer. Dan Skaling is EVP at JCB USA, (213) 896-3719, [email protected], www.jcbusa.com.

VANTAGESCORE SOLUTIONS reports that more than 6 billion VantageScore credit scores were used in the 12-month period from July 1, 2014, through June 30, 2015, a 100% increase over the previous 12-month period. VantageScore credit scores are used by 7 of the 10 largest financial institutions in the U.S. Barrett Burns is CEO, (203) 363-2161, [email protected], www.vantagescore.com.

Conferences & Seminars

7th Annual Healthcare Payments Innovations 2016: January 20-21, 2016. The Phoenix Marriott Tempe at The Buttes, Tempe, Arizona. Estimated attendance: 150. Cost for the two-day conference is $995-$1,895. Subscribers to The Nilson Report will receive a $300 dis-count. (Use code NILSON300.) Contact Aron Barkan at Strategic Solutions Network, (561) 674-0082, [email protected]. Register at www.hcpaymentsinnovations.com/.

Merchant Payments Ecosystem 2016: February 16-18, 2016. The InterContinental, Berlin, Germany. Estimated attendance: 600. Cost for the three-day conference is $2,200. Subscribers to The Nilson Report will receive a 20% discount. (Use code NR-MPE2016, only applicable on attendance fee and only prior to registering.) Contact David Vesely at Empiria Group, 421 (245) 248-931, [email protected]. Register at www.merchantpaymentsecosystem.com.



CARDFLIGHTS’ PCI-DSS Level 1 compliant gateway for mobile payments has been certified by TSYS to accept EMV chip card transactions. Derek Webster is CEO at CardFlight, (646) 3389-4450, [email protected], www.cardflight.com. Craig Ludwig is Head of Products for TSYS Merchant Services Segment, (480) 308-1919, [email protected], www.tsys.com.

THE IOWA COURT OF APPEALS ruled November 25, 2015, that Capital One did not violate an Iowa debt collection law by collecting debt without registering with the state as a debt collector.

SYNCHRONY FINANCIAL has completed its separation from General Electric. S&P Dow Jones Indices added Synchrony Financial to the S&P 500 after the close of trading on November 17, 2015. Margaret Keane is CEO at Synchrony Financial, (203) 585-6152, margaret.keane@ synchronyfinancial.com, www.synchronyfinancial.com.

FINANCIAL SERVICES INFORMATION SHARING AND ANALYSIS CENTER (FS-ISAC) has made available a best practices guide for financial services companies working to improve their operational continuity and reduce risks associated with a destructive cyberattack. An executive summary is available upon request. A more detailed paper is available at the Financial Services Sector Coordinating Council website.

THE 2ND U.S. CIRCUIT COURT OF APPEALS IN NEW YORK upheld a lower court ruling made earlier this year that American Express, Citigroup, and Discover Financial Services did not violate the Sherman Antitrust Act by requiring cardholders to submit to arbitration to settle disputes. By requiring arbitration, payment card issuers avoid class action lawsuits. In 2010, Bank of America, Capital One, Chase, and HSBC settled litigation by agreeing to drop arbitration clauses in cardholder agreements for 3 1/2 years.

BARCLAYCARD in the United States is offering the Barclaycard Cash-Forward World MasterCard. Cardholders receive 1.5% cash back on every purchase and a 5% redemption bonus every time they redeem points for cash back. Cash can be deposited to a bank account, credited on a card statement, or provided in a prepaid MasterCard card. Rachana Bhatt is Head of Branded Cards at Barclaycard US, (302) 255-8314, [email protected], www.barclaycardus.com.

THE CITY OF SAN FRANCISCO is suing American Express in San Francisco Superior Court seeking a judicial declaration that Amex’s rules for merchant card acceptance violate California’s Unfair Competition Law. Case No. CGC-15-548854: People of the State of California, ex rel. Dennis Herrera v. American Express Company et al., was filed November 6, 2015.

PAYONEER, provider of a Web-based platform that facilitates global business-to-business payments including business-to-individual trader trans-actions, will be used by Amazon for cross-border payments to sellers from 24 countries who sell on marketplaces in the U.S., Spain, France, Italy, Germany, and the U.K. Upon registration, sellers receive online accounts that can collect Amazon disbursements, and that provide access to these disburse-ments through a local bank account or a Payoneer MasterCard. Scott Galit is CEO at Payoneer, (646) 308-1300, [email protected], www.payoneer.com.

© HSN Consultants, Inc. 2015 THE NILSON REPORT 2NOVEMBER 2015 / ISSUE 1076 / THE NILSON REPORT

Merton Smith has been appointed Vice President EMEA, Sales & Business Development Digital Payments at Proxama, 44 (203) 668-2888, [email protected]. Robert Miskin has been appointed Managing Director, Europe, Middle East and Africa at Geoswift, 44 (207) 960-6888, [email protected]. Brian Radin has been appointed Chief Revenue Officer at CloudPay, (919) 322-5800, [email protected]. David Butler has been appointed Vice President of Operations at CreditCall, 44 (117) 930-4455, [email protected]. Gregory Lambertie has been appointed Vice President Corporate Strategy & M&A at Ingenico, 33 (1) 5801-8323, [email protected]. Brad Petzer, CFO at Monitise has resigned. Raghu Malhotra has been appointed President, Middle East and Africa at MasterCard, 971 (4) 391-4200, [email protected]. Jim Jones, most recently CEO at AccountNow, has joined Qualpay’s board of directors as Executive Chairman, (650) 388 5250, jimjones@ qualpay.com. Himanshu Patel has been appointed Chief Financial Officer at First Data, (212) 515-3165, [email protected].

Management Changes

Seventh Edition

a 2015 Nilson Report PublicationWorldwide

Largest

© HSN Consultants Inc. 2015 THE NILSON REPORT, www.nilsonreport.com/specialreport. Reproducing or allowing reproduction

or dissemination of any portion of this document in any manner is a copyright violation subject to substantial fines.

Card Issuers

Merchant Acquirersand

in

Asia/Pacific, United States, Europe, Latin America, Middle East/Africa, and Canada

Over 1,000* Card Issuersfrom 115 countries in all world regions*includes over 700 outside the U.S.

7th Edition

275* Merchant Acquirersfrom 65 countries in all world regions

*includes over 190 outside the U.S.

Figures include cardsin circulationand spending for

credit & debit card issuers

Order Todaywww.nilsonreport.com/specialreport

© 2015 HSN Consultants, Inc. THE NILSON REPORT 3DECEMBER 2015 / ISSUE 1076 / THE NILSON REPORT


AMADIS, a provider of software development and consulting services for secure electronic payments, has formed a technical partnership with FIME to support EMV payment terminal testing and services. Emmanuel Haydont is a Partner at Amadis, (514) 299-8914, [email protected], www.amadis.ca. Vincent Poty is VP, Strategy and Marketing at FIME, 33 (1) 4198-4861, [email protected], www.fime.com.

WIRECASH gives U.S. residents online access to multiple money transfer, bill payment, and mobile telecom top-up providers to send money to recipients in over 100 countries. A new partnership with Cuallix lets U.S. senders pay bills for utilities, financial services, taxes, telephone, cable, and Internet in Mexico instead of sending money to a family member. Logan Lemberger is VP of Business Development at WireCash, (323) 977-9473, [email protected], www.wirecash.com.

B2 PAYMENT SOLUTIONS, which distributes and supports UL products in North America, has delivered UL’s Brand Test Tool to Chase Commerce Solutions, the largest U.S. merchant acquirer. Mitchell Scott is Executive Director at Chase Commerce Solutions, (813) 354-4126, [email protected], www.chasecommercesolutions.com. Bruce Murray is President at B2 Payment Solutions, (416) 730-9827 x101, [email protected], www.b2ps.com.

COSMOS CO-OPERATIVE BANK, INDIA will replace its legacy payment platform with BPC Banking Technologies’ SmartVista suite of card manage-ment products for debit and prepaid cards as well as ATM and POS management. Rajan Narayan is Managing Director Asia-Pacific at BPC Banking Technologies, (65) 6423-0313, [email protected], www.bpcbt.com. Vasant Manwadkar is CIO at Cosmos Bank, 91 (90) 1107-0058, [email protected], www.cosmosbank.com.

YAPITAL, a QR code-based mobile and online payment service operating in Germany and Luxembourg, will shut down on January 31, 2016. Marc Berg is Executive Director, 49 (4060) 590-0600, [email protected], www.yapital.com.

GALITT has published a white paper titled “The Internet of Things (IoT), An Innovative Approach to the Payment Experience.” The paper focuses on wearables such as wristbands and watches and how the IoT will bring added value to merchants, financial institutions, and all stakeholders. The paper is available from the company website: www.galitt.com.

VISA CHECKOUT is now available in Brazil. The first merchant is Futebolcard, a service that lets soccer fans purchase tickets for games in 12 different stadiums. Visa Checkout, which lets online shoppers make purchases using only their username and password, is available in 16 countries. More than 7 million cardholders use the service, which is offered at 250,000+ online merchants. Percival Jatoba is VP, Products at Visa do Brasil, 55 (11) 2102-0077, [email protected], www.visa.com.br.

PREPAID FINANCIAL SERVICES, an e-money institution, prepaid card issuer, BIN sponsor, program manager, and acquirer, sold 5% of its equity for $3.78 million (£2.5 mil.) to an unnamed investor. PFS manages prepaid card programs in 23 countries. Noel Moran is CEO, 44 (207) 534-8040, [email protected], www.prepaidfinancialservices.com.

SEQR will use Dwolla’s payment platform and infrastructure to provide peer-to-peer payments for its SEQR digital payment service set to launch in the U.S. in the first quarter of 2016. Peter Fredell is CEO at Seamless, 46 (8) 5648-7824, [email protected], www.seamless.se. Bob Rutherford is Director of Strategic Partnerships at Dwolla, (515) 280-1000, [email protected], www.dwolla.com.

MYPINPAD’S technology for multifactor authentication of transactions originating from unsecured touchscreen devices such as mobile phones and tablets will be available to financial institutions through a 5-year agreement with VocaLink. Last year VocaLink processed over 10 billion transactions. Philip King is CEO at myPINpad, 44 (203) 289-6728, [email protected], www.mypinpad.com. Sara Parker is Product Director Link ATM Services at VocaLink, 44 (203) 818-4521, [email protected], www.vocalink.com.

JIFFY, a person-to-person mobile payment service supported by 50 banks in Italy, is expanding to Germany through a partnership between SIA and GFT Technologies. GFT is a Germany-based IT services and consulting company. SIA is a payment service provider in Italy that handles Jiffy transactions. Cristina Astore is Head of SIA North West Europe, 39 (02) 6084-2720, [email protected], www.sia.eu. Bernd Kohl is Executive Director at GFT Germany, 49 (6196) 969-2779, [email protected], www.gft.com.

IZICAP’S merchant analytics, card-linked marketing, and customer loyalty software will be integrated into Ingenico Group’s Telium Tetra products. Reda El Mejjad is Founder & President at Izicap, 33 (6) 3533-2827, [email protected], www.izicap.com.

BELL ID’S HCE: NFC’s Missing Link eBook, first issued in 2014, has been updated. It is aimed at mobile payment industry participants seeking better understanding of HCE and tokenization. The eBook can be downloaded for free at http://info.bellid.com/host-card-emulation-nfcs-missing-link.

SWIPP, a mobile payment app used by 800,000 people in Denmark, will be integrated into the 30,000+ retailers using Verifone POS terminals in the country. The app is based on Bluetooth Low Energy (BLE) technology. It allows contactless payments from smartphones. Peter Bredgaard is CCO at Swipp, 45 (30) 100-599, [email protected], www.swipp.dk. June Felix is President at Verifone Europe, 44 (189) 527-5588, [email protected], www.verifone.co.uk.

WIRECARD is offering boon, a mobile payment app, to consumers with NFC-capable smartphones that use the Android 4.4 operating system (or above) in Germany, the Netherlands, Austria, and Belgium. Boon payments are funded by a prepaid MasterCard issued by Wirecard Card Solutions, which can be topped by bank transfer or credit card. Markus Braun is CEO at Wirecard, 49 (89) 4424-1415, [email protected], www.boonpayment.com.

GIESECKE & DEVRIENT provides the embedded smart card chip and operating system used by Swiss watchmaker Swatch in China for its contactless Bellamy payment watch. The Swatch Bellamy can be used for contactless payments at the 5 million China UnionPay POS terminals in China equipped with NFC readers. Stefan Auerbach is Group Executive Mobile Security at Giesecke & Devrient, 49 (89) 4119-2213, stefan.auerbach@ gi-de.com, www.gi-de.com.



ID Tech, which has manufacturing facilities in Taoyuan, Taiwan, and Cypress, California, provides PCI-certified card reader hardware on a subassembly basis to companies including HP, Dell, and Micros.

Those same products, which handle magnetic stripes, chip cards (contact and contactless), QR codes, and signature capture, are also sold as finished goods under the ID Tech brand to customers that

connect them to PC-based POS systems and electronic cash

registers. ID Tech hardware can support encryption of magnetic stripe data (including

EMV) inside the magnetic head or other equipment for secure transport to acquiring processors.

ID Tech also makes contact and contactless payment acceptance devices that use its proprietary processing software for customers that install them

in kiosks and vending machines. It competes with OTI and UIC. Last year ID Tech shipped more than 100,000 of those payment acceptance devices and expects 2015 shipments to increase 15%.

In recent years ID Tech has also manufactured and sold dongles for use with smartphones and tablet devices. Those dongles can be magnetic stripe or combination mag-stripe and chip readers. They also use ID Tech software to handle payment processing. Most are sold in the Americas under the ID Tech name.

ID Tech has the largest installed based of contactless NFC readers in the world. It sells hardware in more than 90 countries. Eric Lecsene is VP, Marketing at ID Tech in Cypress,

California, (916) 203-4535, [email protected],

www.idtechproducts.com.

The app can reside on 95% of all smartphones. OmnyPay aims to lead consumers to purchases with the payment mechanism preferred

by the retailers, led by private label credit or debit cards. To give consumers the same experience in-app, at the physical point of sale, and online, purchases are QR code-based, not NFC.

Retailers are able to integrate OmnyPay directly into their existing rewards, loyalty, and promotional programs. Promotions can be automatically delivered to the mobile app and applied at the point of payment. This eliminates coupons, vouchers, or reward cards.

The OmnyPay QR code is only an identifier of the sales channel.

All transactions are tokenized using host card emulation. The tokens change with each payment.

OmnyPay is not a consumer acceptance mark. It sells its software-as-a-service technology exclusively on a white label basis. Revenue is based on transactions processed. Typically there is no licensing fee.

All payments enter the retailer’s POS system as if initiated by a plastic card. OmnyPay can work with a retailer’s private label credit card issuer or debit card processor without integrating with their card management systems. It also

works with issuers to immediately provision new accounts to the consumer’s app.

OmnyPay sees QR codes as the quickest way to get its technology to most top retailers, although its software can also work with SMS texts, contactless NFC, and Beacon BLE. No POS integration is required because

the software connects through a retailer’s back-end system and is completely cloud-based. Ashok Narasimhan is CEO at

OmnyPay in San Francisco,

California, (650) 743-1090, ashok@

omnypay.net, www.omnypay.net.

Omnichannel QR Code Payments for Large Retailersfrom page 1

ID Tech POS Hardware


http://www.omnypay.net

BBVA Bancomer, which uses Gemalto servers, token technology, and mobile SDKs to satisfy that

requirement, has decided to leverage those assets to protect ecommerce payments made from its mobile wallet.

Gemalto’s Dynamic Code Verification technology replaces static 3-digit card verification value (CVV) codes with dynamic 3-digit CVVs, created every two minutes within the BBVA Bancomer mobile wallet in the customer’s mobile device. Currently, BBVA Bancomer mobile wallets contain Visa primary account numbers (PANs), which are used

to create a digital-only product that limits spending to card-not-present transactions. Last

year, card issuers in Mexico incurred $480 million in losses from 3 million fraudulent transactions, and 20% were

tied to ecommerce.There are 1.3 million BBVA

Bancomer mobile banking customers, and in the first three weeks of availability 130,000 signed up to add the digital-only Visa card. Payments for purchases

are tied to existing plastic card accounts. Most of the EMV chip cards BBVA Bancomer issues are supplied by Gemalto.

The same enrollment server BBVA Bancomer uses for mobile and online banking authentications matches the

dynamic CVV to the digital-only PAN. Gemalto can fully install its Dynamic Code Verification technology in three months.

Dynamic CVV transactions look like any other card-not-present EMV payments. Merchants do not have to make any adjustments to their ecommerce checkout pages. Gemalto’s Dynamic Code Verification technology can also work if issuers want to put existing plastic card account numbers into mobile wallets. Additionally, Gemalto offers EMV-compliant plastic cards that generate and display dynamic CVVs.Hugo Najera Alva is General

Director, Digital Banking at BBVA

Bancomer in Mexico City, Mexico,

52 (55) 5621-6960, hugo.najera@

bbva.com, www.bancomer.com.

Hervé Bayle is Vice President,

eBanking for the Americas at

Gemalto in Mexico City, Mexico,

52 (55) 2122-1427, herve.bayle@

gemalto.com, www.gemalto.com.

service providers (PSPs) and acquirers license and use on a white label basis. The gateway features more

than 300 alternative payment methods and links to card acquirers operating in more than 160 countries. It does not acquire any transactions.

Pay.On gives ACI a card-not-present service including in-app payments via mobile SDKs, one-click checkout, and recurring billing to fill out its suite of card-present processing services for acquirers and large merchants. ACI has been providing payment acceptance support for merchants and acquirers for 20 years. It aggregates card-present transactions, submits them directly to the networks, fleet companies, check authorization firms, etc., or delivers them to acquirers. ACI has more than 300

direct connections to large merchants around the world. Pay.On offers the possibility of expanding that number with its customers in Europe. ACI also handles chargebacks, manages PCI compliance, provides encryption, and more. Six of the ten largest merchant acquirers in the world are ACI customers.

The combined ACI/Pay.On service gives merchants and PSPs the ability to deliver complete omnichannel customer payment support — in store, mobile, online — either licensing the software for on-premises use or accessing it on a hosted, on-demand basis.

ACI can also offer Pay.On customers access to its Retail Decisions’ card-not-present fraud protection service, as well as the ability to deploy a common tokenization service capable of identifying repeat

3-digit CVVs are created every 2 minutes within the mobile wallet.

The gateway features more than 300 alternative payment methods.

Gemalto Brings Dynamic CVV to Mexicofrom page 1

ACI Worldwide Buys Pay.Onfrom page 1...


http://www.gemalto.com


CPI Card Group (CPI), the 5th largest payment card manufacturer worldwide, raised $150 million in its initial public

offering (IPO) on October 9, 2015 on Nasdaq in the U.S. and the Toronto Stock Exchange in Canada. As of December 3, CPI had an equity market capitalization of $562 million.

CPI operates seven facilities in North America and two in the U.K. The U.S. debit and credit segment manufactures payment cards and offers personalization services. It accounts for 55% of CPI’s total revenue. The U.S. prepaid segment provides cards, packaging, personalization, and fulfillment services. It accounts for 19% of total revenue.

U.S. products include EMV and non-EMV Visa, MasterCard, Discover, and American Express cards, as well as private label

cards. It also owns an instant card issuance system it sells to bank branches.

The U.K. segment manufactures mostly private label prepaid and loyalty cards for customers in the U.K. and Canada. It also provides packaging, personalization, and fulfillment services. The U.K. segment accounted for 13% of net sales in 2014.

CPI Card Group shipped 387.1 million payment cards, 17.4 million transportation/ticketing

cards, 376.2 million prepaid cards, 218.3 million prepaid phone cards, 3.0 million other telephone cards, and 269.1 million nonpayment cards in 2014, providing services to more than 3,200 card issuers. For the first 9 months of 2015 net income was $33.2 million, up 301% from the same period in 2014. Revenues of $280.5 million were up 62%.

CPI is 57.5% owned by Tricor Pacific Capital based in Vancouver, Canada. Steve Montross is CEO at CPI

Card Group Inc. in Littleton,

Colorado, (303) 345-2460,

[email protected],

www.cpicardgroup.com.

and PKO Bank Polski in 2013. Collectively over 1 million of their customers have registered for Blik since February of this year — 300,000 of them actively use the service.

Consumers fund Blik transactions through a deposit account at their bank. PKO Bank Polski customers can also use a prepaid account. To initiate a Blik payment they log in to their

mobile banking application, which generates a one-time, 6-digit code. The code is entered on the PIN pad of a POS terminal or ATM, or at an ecommerce checkout page. Consumers receive

a payment notification from PSP and confirm each transaction in their app by entering their handset password.

More than 130,000 point-of-sale terminals (100,000 merchant outlets) of the 425,000

POS terminals in Poland can handle Blik transactions. PSP estimates 15% of Blik transactions are generated at the point of sale,

customers regardless of the channel they are using for a particular purchase.

Pay.On will be integrated into ACI in phases. It will not operate as a separate subsidiary or stand-alone business unit. Eventually ACI will have a single global system for card-present and card-not-present processing.

Lynn Holland is VP, Product Line Manager, UP Merchant

Retailer Solutions at ACI Worldwide in Naples, Florida,

(239) 434-3141, [email protected],

www.aciworldwide.com.

Markus Rinderer is CEO at Pay.On in Munich, Germany,

49 (89) 452-300, [email protected],

www.payon.com.

U.S. credit and debit cards account for 55% of total revenue.

CPI Card Group IPO on Nasdaq and TSX

Mobile Payments in Poland from page 1...

> see p. 8


http://www.cpicardgroup.com

http://www.aciworldwide.com

http://www.payon.com

30% occur at 25,000 ecommerce checkout pages, and 5% are person-to-person (P2P) money

transfers. The remainder are cash withdrawals at the more than 12,000 ATMs in Poland that are Blik-enabled. Only customers of Bank Millennium and ING Bank Slaski can make P2P transactions now, but the other owner banks will offer that feature in 2016.

Merchants integrate with Blik through their acquirer. First Data and the eService unit of EVO Payments, the two largest merchant acquirers in Poland, have signed marketing agreements. Elavon will offer Blik to its merchants in the second quarter of 2016.

Blik uses technology Hewlett Packard developed for PKO Bank Polski’s mobile banking application called IKO, launched in 2013. Around 370,000 of the bank’s customers have signed up to use IKO since it was launched.

In the third quarter of this year, Bank Zachodni WBK added NFC-based payment functionality to its mobile banking app using host card emulation (HCE) and tokenization technology, which the bank developed in-house. The payment feature is based on Visa cloud-based payment specifications. Customers sign in to their banking application to link a Visa or MasterCard debit card to fund payments. Customers do not need to log in to their mobile banking application to initiate an NFC payment.

Last year ING Bank Slaski partnered with Orange, the second largest mobile network operator

in Poland, to launch an NFC SIM-based mobile payment application

called NFC Pass. Over-the-air provisioning of Visa debit card credentials to a smartphone’s SIM is provided by Morpho.

Getin Bank will offer its mobile wallet, a standalone, NFC-based payment application for Android devices based on Visa cloud-based payment specifications, next year. HCE technology and payment card tokenization is provided by Oberthur Technologies. A Visa debit card can be linked to fund payments. Getin will also offer Blik to its customers in the first quarter of 2016.

PKO Bank Polski, ING Bank Slaski, mBank, Raiffeisen Polbank, Eurobank, and BPS plan to offer contactless NFC-based payments in their mobile banking applications in 2016. Contactless payments can be made at over 80% of POS terminals in Poland.

proprietary card payment processing hardware and software and related commerce services for smartphones and tablets. The IPO valued the company at $3.20 billion, considerably less than what venture capital investors believed it was worth a year before. By December 4, Square’s stock price had grown from $9 per share to $12, increasing its market

capitalization to $4.57 billion. Square had raised $488 million in five venture funding rounds. About 8% of the company’s shares were sold in the IPO.

From January 1, 2015 through September 30, 2015, Square’s gross revenues were $892.8 million, up 49% year-over-year (YOY). The gross payment volume for those 9 months was $25.44 billion,

Blik uses technology Hewlett Pack-ard developed for PKO Bank Polski.

CONTACTS

Polish Payment Standard Grzegorz Dlugosz is President in Warsaw, Poland, 48 (696) 405-044, [email protected], www.polskistandardplatnosci.pl.

PKO Bank Polski Jakub Grzechnik is Head of Mobile and Internet Banking in Warsaw, Poland, 48 (22) 521-6277, [email protected], www.pkobp.pl.

Bank Zachodni WBK Tomasz Niewiedzial is Head of Multichannel, Mobile, and Internet Banking in Poznan, Poland, 48 (61) 856-4060, [email protected], www.bzwbk.pl.

ING Bank Slaski Mateusz Poznanski is Executive Director of Retail Banking in Warsaw, Poland, 48 (32) 357-8412, [email protected], www.ingbank.pl.

Visa Europe Sebastian Geldner is Senior Manager of Mobile Strategic Alliances in Warsaw, Poland, 48 (22) 630-6838, [email protected], www.visaeurope.com.

Mobile Payments in Poland from page 7...

Square IPO on NYSEfrom page 1...


http://www.polskistandardplatnosci.pl

http://www.pkobp.pl

http://www.pkobp.pl

http://www.visaeurope.com


http://www.ingbank.pl

transactions outside the U.S. accounted for 62.39% of its total, up from 60.06%.

Visa purchase volume outside the U.S., including Visa Europe, generated 60.92% of its global purchase volume, up from 60.47% for the same nine-month period in 2014. Purchase transactions at merchants outside the U.S. accounted for 57.59% of its total, up from 56.98%.

MasterCard purchase volume on debit cards issued in the U.S. grew 7.7%. Outside the U.S. that spending was up 26.2%. Purchase transactions on MasterCard debit cards issued outside the U.S. grew 35.6%. In the U.S. they grew 9.1%.

Debit cards issued outside the U.S. generated 49.21% of MasterCard’s global debit card purchase transactions, up from 43.79% in 2014.

Debit card purchase volume for Visa cards issued outside the U.S. grew 10.3%. U.S. debit card purchase volume grew 7.3%. Purchase transactions on Visa debit cards issued outside the U.S. were up 14.8%. Purchase transactions on Visa debit cards issued in the U.S. rose by 7.8%. Debit cards issued outside the U.S. generated 53.88% of Visa debit card purchase

transactions worldwide, up from 52.32% in 2014.

MasterCard credit card purchase volume on cards issued outside the U.S. grew by 12.2%

compared to a 6.9% increase for U.S.-issued cards. Purchase transactions on MasterCard credit cards issued outside the U.S. were up 11.7%. U.S. credit card purchase transactions were up 8.1%. Credit cards issued outside the U.S. accounted for 75.49% of MasterCard’s credit card

purchase transactions, up from 74.89%.

Visa’s credit card purchase volume on cards issued outside the U.S. grew by 12.4%. Inside the U.S. growth was 11.3%. However, purchase transactions on Visa credit cards issued inside the U.S. grew 14.0%, while growth outside the U.S. was 9.0%. Credit cards issued outside the U.S. generated 64.17% of Visa’s credit card purchase transactions, a decline from 65.20% in 2014.

up 51.2% YOY. This excludes payments tied to a discontinued contract with Starbucks as well as Square Cash peer-to-peer money transfers. Micromerchants had accounted for 88% of Square’s gross payment volume in the third quarter of 2011. By the third quarter of 2015, that figure had fallen to 62%, as the company continued to expand services to new industries. Nearly all of its more than two million active merchant customers (at least five

sales annually) are in the U.S. with a small number in Canada and Japan. Square has started to sign merchants in Australia.

Adjusted net revenues of $317.6 million for the first 9 months of 2015 were up 64% YOY. This figure is adjusted to reflect a now discontinued contract to process card payments at Starbucks-owned locations in the U.S. Net income was negative $131.5 million,

Purchase volume outside the U.S. accounted for 60.9% of Visa’s total.

Visa & MasterCard Worldwide thru 3Q 2015 vs. 3Q 2014 Dollar Volume (bil.) Purch. Trans. Brand/Type Total Chg. Purchases Chg. Cash Chg. (bil.) Chg.

Visa Credit $2,777.06 11.0% $2,583.56 12.0% $193.50 –0.6% 33.26 10.7%

MasterCard Credit $1,813.05 9.8% $1,673.24 10.6% $139.81 0.9% 21.83 10.8%

CREDIT TOTAL $4,590.11 10.5% $4,256.80 11.4% $333.31 0.0% 55.09 10.7%

Visa Debit $4,647.43 7.2% $2,545.99 9.1% $2,101.44 5.1% 58.96 11.5%

MasterCard Debit $1,552.64 16.3% $803.29 15.6% $749.35 17.1% 21.68 20.7%

DEBIT TOTAL $6,200.07 9.4% $3,349.28 10.6% $2,850.79 8.0% 80.64 13.8%

Visa Total $7,424.49 8.6% $5,129.55 10.5% $2,294.93 4.6% 92.22 11.2%MasterCard Total $3,365.69 12.7% $2,476.53 12.2% $889.16 14.2% 43.51 15.5%

TOTAL $10,790.18 9.9% $7,606.08 11.1% $3,184.09 7.1% 135.73 12.5%

Figures are for January 1, 2015 through September 30, 2015. They include all consumer and commercial credit, debit, and prepaid cards. Currency fi gures are in U.S. dollars. Change fi gures for dollar volume refl ect a year-over-year comparison in local currency. Visa includes the sum of Visa Europe and Visa Inc. and includes Visa, Visa Electron, and Interlink brands. MasterCard excludes Maestro and Cirrus fi gures. © 2015 The Nilson Report

Visa & MasterCard Outside the U.S. through 3Q ‘15 from page 1...

> see p. 12


Largest Maestro Issuers Worldwide 2014

(1) Also Germany, Italy, Luxembourg, Poland, Romania, Spain, Turkey. (2) And Curacao, Aruba, St. Maarten, Bonaire. © 2015 The Nilson Report

1 ING Netherlands, Belgium, France(1) $45,958.7 12,352 2 BBVA Provincial Venezuela $35,465.1 3,158 3 Commonwealth Bank Australia $29,809.3 4,528 4 ABN Amro Netherlands $27,088.1 6,313 5 Itau Unibanco Brazil $23,571.0 30,632 6 KB Kookmin Card South Korea $21,351.4 18,088 7 Banesco Banco Venezuela $20,461.5 3,417 8 BancoPosta Italy $19,528.1 7,344 9 Caixa Economica Federal Brazil $16,941.8 48,810 10 Sberbank Russia $14,517.4 38,837 11 Clydesdale Bank United Kingdom $8,503.8 1,710 12 Mercantile Banco Venezuela $8,463.5 3,453 13 UBS Switzerland $8,408.6 1,256 14 Banco Santander Brazil $7,748.8 24,181 15 Raiffeisen Schweiz Switzerland $6,901.2 1,284 16 Credit Agricole France $6,875.6 2,041 17 Deutsche Bank Germany $6,874.1 3,942 18 National Commercial Saudi Arabia $6,683.5 3,659 19 Banco de Venezuela Venezuela $6,376.4 4,492 20 Bancolombia Colombia $5,188.3 6,340 21 Bancaribe Venezuela $4,698.3 687 22 Credit Suisse Switzerland $4,072.2 675 23 NongHyup Bank South Korea $3,687.7 7,388 24 Shinhan Card South Korea $3,554.9 4,493 25 ANZ Bank New Zealand $3,516.6 539 26 Commerzbank Germany $3,387.2 2,044 27 Banco Santander Chile $3,185.9 3,199 28 Riyad Bank Saudi Arabia $2,581.1 1,726 29 Standard Bank South Africa $2,465.3 3,537 30 Volksbank Austria $2,318.6 805 31 Caixa Geral de Depositos Portugal $2,118.8 1,397 32 BNP Paribas Fortis Belgium $1,990.0 3,715 33 Absa Bank South Africa $1,970.7 4,506 34 SABB Saudi Arabia $1,944.1 548 35 Erste Bank Austria $1,938.9 556 36 Swedbank Sweden $1,756.2 412 37 Santander Bank Germany $1,737.5 527 38 Banco Davivienda Colombia $1,709.4 2,840 39 Banco Nacional de Credito Venezuela $1,708.3 821 40 Euro6000 Spain $1,693.0 896 41 Credit Mutuel France $1,537.1 284 42 Banco del Estado Chile $1,465.7 1,593 43 Banco de la Nacion Argentina $1,404.0 2,669 44 Ziraat Bankasi Turkey $1,388.1 9,962 45 Frankfurter Sparkasse Germany $1,334.5 689 46 OTP Bank Hungary $1,261.1 2,189 47 KEB Hana Card South Korea $1,060.2 1,917 48 Rabobank Netherlands $997.7 7,371 49 Swedbank Estonia $996.4 487 50 DZ Bank Germany $944.4 7,619

51 BFC Banco Fondo Comun Venezuela $903.4 1,170 52 Ahli United Kuwait $870.4 130 53 Akbank Turkey $826.8 4,232 54 PBZ Croatia $772.2 624 55 Borgun Iceland $744.2 135 56 BW-Bank Germany $735.9 394 57 Cartao BRB Brazil $700.8 1,065 58 RBC Financial Trinidad & Tobago $654.2 534 59 Belfi us Bank Belgium $648.6 3,164 60 Intesa Sanpaolo Card Italy $642.8 849 61 Santander Totta Portugal $637.1 255 62 Raiffeisen Bank Romania $622.6 777 63 Maduro & Curiel’s Netherlands Antilles(2) $570.5 446 64 Slovenska Sporitelna Slovakia $570.4 279 65 VakifBank Turkey $567.0 5,241 66 Banco Itau Chile $553.8 179 67 Banco Bicentenario Venezuela $518.9 460 68 BNL Gruppo BNP Paribas Italy $485.6 1,702 69 Banco Caroni Venezuela $480.6 252 70 Banco Comercial AV Villas Colombia $443.9 1,352 71 BRD Romania $437.8 1,310 72 National Bank Greece $432.9 3,020 73 Nuevo Banco de Santa Fe Argentina $428.3 730 74 T. Is Bank Turkey $425.3 2,489 75 BPH Poland $410.1 260 76 Mauritius Commercial Mauritius $404.2 642 77 Erste & Steiermarkische Croatia $387.5 545 78 Nordea Europe $366.8 77 79 PKO Bank Poland $325.3 184 80 KBC Bank Belgium $321.6 2,137 81 Nedbank South Africa $321.1 830 82 BIB Serbia $296.3 697 83 Banco Sofi tasa Venezuela $296.3 287 84 CIB Hungary $295.8 185 85 Swedbank Lithuania $284.8 611 86 BCR Romania $283.5 742 87 Abanka Vipa Slovenia $257.8 146 88 GE Money Czech Republic $237.6 266 89 Banco Security Chile $228.9 78 90 Erste Bank Hungary $224.1 291 91 Banco Corpbanca Colombia $221.7 471 92 Barclaycard Germany $209.8 479 93 Bank Zachodni WBK Poland $208.6 94 94 BMN Spain $208.3 148 95 CBC Banque Belgium $193.9 206 96 Alior Bank Poland $182.6 114 97 Banco Colpatria Colombia $176.7 333 98 PrivatBank Ukraine $160.6 6,635 99 Yapi Kredi Bankasi Turkey $155.1 1,172 100 Banka Koper Slovenia $151.2 103

Purchase Cards Purchase Cards Rank Issuer, Country Volume (mil.) (000) Rank Issuer, Country Volume (mil.) (000)



Largest Credit Card Portfolios Worldwide 2014

Outstandings on general purpose cards as of December 31, 2014. American Express and Discover do not include third-party business. © 2015 The Nilson Report

1 JPMorgan Chase U.S. $129.57 2 Bank of America U.S. $100.24 3 American Express U.S. $93.82 4 Citibank U.S. $82.30 5 Capital One U.S. $72.66 6 ICBC China $59.57 7 Discover U.S. $56.13 8 China Construction China $53.54 9 Bank of China China $43.59 10 Agricultural Bank China $36.25 11 China Merchants China $35.73 12 Wells Fargo U.S. $35.21 13 U.S. Bank U.S. $32.88 14 Barclays U.K. $27.66 15 Bank of Communications China $27.44 16 China Minsheng China $24.02 17 Itau Unibanco Brazil $22.32 18 China Guangfa China $21.53 19 Barclays U.S. $20.78 20 China Everbright China $18.67 21 USAA U.S. $17.78 22 Ping An China $16.74 23 Mitsubishi UFJ Nicos Japan $16.32 24 TD Canada Trust Canada $15.90 25 Synchrony Financial U.S. $15.15 26 Banco Bradesco Brazil $14.47 27 Lloyds Banking Group U.K. $14.24 28 Shinhan Card South Korea $13.69 29 RBC Royal Bank Canada $13.04 30 China CITIC China $12.28 31 Sumitomo Mutsui Japan $12.15 32 Scotiabank Canada $11.72 33 HSBC U.K. $11.57 34 China Industrial China $10.79 35 Credit Saison Japan $10.48 36 MBNA U.K. $10.47 37 CIBC Canada $10.08 38 Commonwealth Bank Australia $9.73 39 Hyundai Card South Korea $9.66 40 Shanghai Pudong Dev. China $9.61 41 KB Kookmin Card So. Korea $9.58 42 Navy FCU U.S. $9.51 43 Tesco Bank U.K. $9.47 44 Banco do Brasil Brazil $8.53 45 Westpac Banking Australia $8.19 46 ANZ Banking Group Australia $8.18 47 RBS/NatWest U.K. $8.16 48 Yapi Kredi Bankasi Turkey $7.58 49 BMO Bank of Montreal Canada $7.34 50 Fed. Desjardins Canada $7.18

51 Sberbank Russia $7.17 52 Banco Nac’l (Banamex) Mexico $7.15 53 Banco Santander Brazil $7.03 54 Samsung Card South Korea $6.93 55 Banco de Venezuela Venezuela $6.68 56 Garanti Bank Turkey $6.64 57 BBVA Bancomer Mexico $6.33 58 Mercantil Banco Venezuela $6.09 59 PNC U.S. $5.56 60 Akbank Turkey $5.50 61 First Nat’l of Omaha U.S. $5.29 62 Russian Standard Russia $5.28 63 Nat’l Australia Australia $5.25 64 Aeon Financial Serv. Japan $5.00 65 BBVA Provincial Venezuela $4.75 66 TD Bank U.S. $4.73 67 Capital One Canada $4.52 68 Cabela’s WFB U.S. $4.49 69 UC Card Japan $4.34 70 Canadian Tire Canada $4.27 71 T. Is Bank Turkey $4.26 72 Lotte Card South Korea $4.14 73 HSBC Hong Kong $3.95 74 Citi Australia $3.71 75 Finansbank Turkey $3.65 76 Orient Corporation Japan $3.53 77 Santander Cards U.K. $3.44 78 Capital One U.K. $3.43 79 Hua Xia China $3.28 80 Toyota Finance Japan $3.23 81 Caixa Economica Fed. Brazil $3.20 82 Cedyna Financial Japan $3.18 83 KEB Hana Card South Korea $3.17 84 Banesco Banco Venezuela $3.15 85 Hang Seng Hong Kong $3.12 86 Fifth Third U.S. $3.00 87 Carrefour France, Spain, Belg. $2.86 88 Banco Santander Mexico $2.81 89 Credit One U.S. $2.78 90 Nationwide Building Soc. U.K. $2.69 91 Banco Occidental Venezuela $2.67 92 Standard Bank South Africa $2.44 93 CaixaCard Spain $2.39 94 NongHyup Bank South Korea $2.36 95 Citibank South Korea $2.30 96 BB&T U.S. $2.27 97 Banco Santander Chile $2.15 98 President’s Choice Canada $2.15 99 Barclaycard Germany $2.14 100 Banco Popular Spain $2.11

101 Banco Santander Spain $2.06 102 Kasikornbank Thailand $2.01 103 Industrial Bank South Korea $2.00 104 Banco Santander Rio Argentina $1.99 105 Citibank Malaysia $1.98 106 NewDay Cards U.K. $1.94 107 Merrick Bank U.S. $1.90 108 VakifBank Turkey $1.88 109 BOC Credit Card Hong Kong $1.81 110 Absa Bank South Africa $1.81 111 Banco Falabella Chile $1.80 112 Alpha Bank Greece $1.77 113 Nat’l Bank of Canada Canada $1.75 114 Virgin Money U.K. $1.74 115 DenizBank Turkey $1.71 116 Citizens Bank U.S. $1.70 117 Banorte Mexico $1.67 118 E. Sun Commercial Taiwan $1.61 119 Pentagon FCU U.S. $1.60 120 State Farm Bank U.S. $1.57 121 Banco CSF Brazil $1.57 122 HSBC Turkey $1.56 123 Bancaribe Venezuela $1.55 124 Tinkoff Credit Systems Russia $1.50 125 Nordstrom U.S. $1.47 126 SunTrust Bank U.S. $1.45 127 Citi Cards Japan $1.44 128 Banco de Chile Chile $1.43 129 Bancolombia Colombia $1.42 130 Nat’l Bank of Greece Greece $1.41 131 Citibank Brazil $1.41 132 Citibank Hong Kong $1.40 133 Eurobank-Ergasias Greece $1.39 134 Landesbank Berlin Germany $1.39 135 Maybank Malaysia $1.35 136 HSBC Mexico $1.32 137 Banco Exterior Venezuela $1.31 138 Banco de Credito BCP Peru $1.31 139 Bankia Spain $1.29 140 Regions Financial U.S. $1.29 141 EnterCard Norway $1.29 142 Woori Card South Korea $1.26 143 Bank of Ireland Ireland $1.23 144 ANZ Bank New Zealand $1.22 145 Banco Davivienda Colombia $1.20 146 First Nat’l Bank South Africa $1.20 147 Banco Bicentenario Venez. $1.17 148 Banco Popular Puerto Rico $1.16 149 Citibank Singapore $1.14 150 Banco del Pacifi co Ecuador $1.13

Outstandings Outstandings Outstandings Rank Issuer, Country (bil.) Rank Issuer, Country (bil.) Rank Issuer, Country (bil.)


which compares to negative $117.0 million for the same period a year before. Earnings before interest, taxes, depreciation, and amortization on an adjusted basis were negative $35.0 million. This compared with negative $57.0 million the prior year. Even when Starbucks revenue and costs are taken out, net income would still reflect a loss of more than $100 million through the first 9 months of its 2015 fiscal year.

Currently, 88% of Square’s adjusted revenue is generated by handling payments and providing related commerce services. Beyond payment processing, merchants have access to software including Register, which lets them handle noncard payments; Appointments, which lets them organize client information and more; Analytics, which

is cloud-based information about their business’s performance; and Marketplace, which lets them integrate apps from other companies into their Square POS system. Also available is a digital invoice product that can be used to send bills and collect payments, and Square Cash, a smartphone-based money transfer

product for consumers. The other 12% of Square’s revenue comes

from financial services including cash advances to merchants and payroll processing as well as marketing services. Square Capital, the merchant cash advance business, is mostly funded by outside investors. So far, $300 million has been advanced. Customer Engagement marketing support lets merchants create offers and more.

Multicurrency, multilingual payment card management software has been available

from RS2 since 1988. Customers include Barclays Bank, which owns 18.5% of RS2, First Data, Global Payments, and OmniPay. RS2 licenses its software directly to large issuers and acquirers. It can also offer itself as a third party processor for all or some card management services to customers including e-money license companies in Europe focused on prepaid cards. Within five years RS2 believes that most of its business in Europe will be for managed services.

RS2 is best known for its settlement and reconciliation engine, which has a consistent user interface and database

worldwide. Payment service providers (PSPs) to online merchants find it easier to use when managing international and local-market-only payment cards as well as local-market alternative payment systems. Large multinationals use the system to distribute merchant transactions to local acquirers, maximizing their interchange income. PSPs and acquirers can license only the settlement and reconciliation module or use it on a managed service basis.

On the card issuing side, much of RS2’s new business is coming from prepaid issuers pursuing unbanked/underbanked consumers. RS2 works with users

directly or through partners. Large banks use RS2 when needing help with new product development.

New projects include research & development on blockchain and cryptocurrency as well as acquiring bitcoin transactions from merchants. Radi Abd El Haj is CEO at RS2

Software in Neu-Isenburg,

Germany, 49 (6102) 730-030, radi.

[email protected], www.rs2.com.

Prior issues: 1070, 1057, 1029, 968,

963, 938, 935, 933, 918, 906, 905,

861, 791, 782, 774, 773, 764, 754,

753, 751

Within five years most of its busi-ness will be for managed services.

Square IPO on NYSE from page 9...

RS2 Card Management Software


© 2015 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

David Robertson, PublisherDecember 7, 2015

http://www.rs2.com


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