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NF Edition #513 - 7/08/16
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Highlights this week...

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Vantiv, Warburg Pursue RBC and BMO’s U.S. Payments Unit
Bloomberg | 7.06.16

Payments processor Vantiv Inc. and buyout firm Warburg Pincus are among suitors seeking to buy a U.S. payments business owned by Royal Bank of Canada and Bank of Montreal, according to people familiar with the matter. Moneris U.S., a division of Canadian payments processing giant Moneris Solutions Corp., could fetch as much as $600 million in a sale, the people said, asking not to be identified as the process is private. The unit has also drawn interest from rival payments processors Cielo SA, based in Brazil, and First Data Corp., among more than a half-dozen potential bidders, the people said.

Wendys Says About 20% of U.S. Franchise Stores Affected by Cyberattack
The Wall Street Journal | 7.07.16

Wendy’s Co. said Thursday roughly a fifth of its franchise-operated stores were affected by cyberattacks that hit the burger chain starting last fall, more than previously disclosed. The Dublin, Ohio-based company said 1,025 of its franchise-owned restaurants were subject to what it called “highly sophisticated, criminal cyberattacks.” Wendy’s said it hasn’t yet found any company-owned stores that were affected.

Worldpay, Etsy's Payments Processor, Admits to Service Outage
TechCrunch | 7.06.16

Worldpay, the third-party payments processor for Etsy, has come forward after six days of silence, acknowledging that it is experiencing a service disruption. A significant number of Etsy transactions have been disrupted by ongoing payment processing outages. Over 7000 posts have been made by frustrated merchants in an Etsy forum dedicated to the problem. Worldpay has not directly connected itself to the specific Etsy outage, but sources close to the company have confirmed that Worldpay is responsible for the outage.

Credit Card Surcharging Expected To Continue Despite Rejection of Interchange Settlement
Digital Transactions | 7.06.16

Merchants that add surcharges to credit card transactions likely can continue to do so despite the overturning of the interchange settlement that enabled them to do so. A federal appeals court last week threw out an agreement initially reached four years ago over card-network interchange and acceptance rules. The interchange settlement between retailers and the card networks and banks included $5.7 billion in monetary relief, but also allowed merchants to add surcharges to cover their credit card acceptance costs.

NRF Says Consumers Want Swipe Fee Caps To Stay Put
PYMNTS | 7.06.16

Try this experiment sometime today. Ask 10 people off the street if they believe that debit interchange fees should stay capped. The answer you’ll likely get back is probably a lot of blank stares. Apparently, the National Retail Federation (NRF) got a different response when it asked a representative sample of 1,013 U.S. consumers, based on survey results that were released last week. Its study reports that consumers want the cap on “hidden debit card swipe fees” — and the subsequent savings — to stay put.

This Financial Giant Will Challenge Square and OnDeck With Small Business Loans
Fortune | 7.05.16

American Express is expanding into the lending business for small businesses, according to a new report from Bloomberg. The financial giant will debut a new lending arm, called Working Capital Terms, which will make online loans to small businesses who use American Express credit cards. Loans will range from $1,000 to $750,000, and interest will be tacked on at a rate of 0.5% for a 30-day loan to 1.5% for a 90-day loan, Bloomberg reported.

MasterCard Faces £19bn Lawsuit Over Claims it Ripped Off Shoppers
Independent | 7.06.16

MasterCard is facing a claim of up to £19 billion in damages in a UK collective action over card charges that were passed on to shoppers. The claim - led by former financial services ombudsman Walter Merricks, who has instructed US-based law firm Quinn Emanuel - is to be filed under the new Consumer Rights Act 2015, which allows for collective damages claims.

Walmart Pay's National Rollout Validates Mega-Retailer's Strategy
ISO & Agent | 7.06.16

Seven months after revealing its branded mobile payment app, Walmart is making Walmart Pay available in more than 4,600 of its stores throughout the U.S., with early figures indicating consumers approve of its "connected" app model. In establishing Walmart Pay as a mobile payment option within its broader menu of mobile services, the retail giant emphasizes the importance of putting the retailer at the center of a mobile shopping experience. In addition to payments, Walmart's app also supports price-matching and other services that shoppers can use within its stores.

ETA Honors Congressional Payments Leaders at Annual Hill Reception
ETA | 7.07.16

ETA hosted its annual reception on Capitol Hill honoring both Congressional Payments Caucuses- the House Congressional Payments Technology Caucus and the Senate Payments Innovation Caucus. The mission of both caucuses is to explore the new and innovative technologies in the payments industry, discuss issues like data security and new technologies, use technology to help the underserved access electronic payments, and help educate lawmakers and staff about the crucial role the payments industry plays in the American economy.

Coinbase Gets $10.5M Investment from Bank of Tokyo, Two Others
Reuters | 7.07.16

Bitcoin exchange Coinbase said on Thursday it received a $10.5 million investment from Bank of Tokyo Mitsubishi UFJ (BTMU), the bank's Mitsubishi UFJ Capital unit and Sozo Ventures as part of a strategic partnership involving its long-term expansion. Coinbase, which is the world's largest bitcoin company and currently operates in 32 countries, does not operate in Japan just yet, though it runs an exchange in Singapore. The company said Japan is a big part of its international expansion.

Apple Pay Launches in Switzerland with Visa/MasterCard Support
Apple Insider | 7.06.16

Announced through Apple's regional website, iPhone users in Switzerland who are also customers of Bonus Card, Cornercard or Swiss Bankers can now provision their credit and prepaid cards for Apple Pay. Reports from users within the country note Apple's end of the service is live, allowing them to add cards to Wallet.

Mobile's Future Is Here — Too Bad So Many Banks Are Stuck in the Past
BTN | 7.06.16

Some Citigroup customers in New York can open ATM vestibules with their phones. Bank of America and JPMorgan Chase customers can retrieve cash more quickly from ATMs using codes generated on their phones. Apple users will soon be able to use their Apple Pay on their iPhones to complete purchases made on their computers. Welcome to the future of mobile banking, where smartphones begin to make the transition from being a way for people to bank on the go to being the nucleus of banking.

European Mobile Banking Adoption Surges
Finextra | 7.07.16

The prevalence of mobile banking in Europe is soaring, with nearly half of phone owners now managing their finances through their handsets, new research commissioned by ING suggests. A poll of nearly 15,000 people across 13 European countries a well as the US and Australia, shows that the share of mobile device users in Europe who bank through their phone has risen from 41% in 2015 to 47% this year.

Barclays' bPay Loop Turns Regular Watches Into Contactless Cards
Engadget | 7.07.16

At this point, Barclays now plays nice with Apple Pay and last month, formally shunned Android Pay in favor of its own app for the platform. In addition, the bank has a range of devices that put contactless payments on your wrist, keychain and anything portable that'll welcome a sticker. Between all this and the dapper jacket the tech is built into, you'd think Barclays would have contactless covered. But today the bank is adding another member to the bPay family called the Loop: A contactless chip in a small silicon suit that's designed to make wristwatches and wearables like fitness trackers contactless-ready.

New Payment Protection Resources for Small Merchants and Their Banks Help Defend Against Cybercrime
BusinessWire | 7.07.16

Small businesses around the world are increasingly at risk for payment data theft. Nearly half of cyberattacks worldwide in 2015 were against small businesses with less than 250 workers, according to cybersecurity firm Symantec. In order to help these companies protect themselves and their customers, the PCI Security Standards Council (PCI SSC) Small Merchant Taskforce has developed a set of payment protection resources for small businesses.

Hack Us and We'll Pay You: The Case for Using Bug Bounty Hunters
American Banker | 7.05.16

It sounds counterintuitive if not downright scary to some bankers: invite hackers to analyze your applications, looking for security holes, and pay out a "bounty" when they find them. But PayPal, Western Union, Square, Simple and other financial services companies that have created or worked with so-called bug bounty programs say they're an effective supplement for the work done by sometimes-strapped internal security folks.

PSD2: German Regulator Rules Restriction of e-Payment Services By Banks Violates Competition Law
Finextra | 7.07.16

With PSD2 looming, German regulator Bundeskartellamt has ruled that the country's banking industry is violating competition law by putting up barriers that hinder competing online payments services. The revised Payment Services Directive is designed to create a more level playing field for third party payment processors (TPPs) by making banks in Europe offer application programming interfaces (APIs) that provide access to account information to third parties.

North Carolina Governor Signs Bitcoin Bill Into Law
CoinDesk | 7.06.16

North Carolina Governor Pat McCrory signed 16 bills into law today, one of which was House Bill 289, which expands the state’s Money Transmitters Act to cover activities related to bitcoin and other blockchain-based digital currencies. Introduced in 2015, the passage of the law represents the fruition of more than a year of engagement between members of the US blockchain and digital currency industry and local regulators. Though the bill has not been without criticism, in interviews with CoinDesk, prominent advocacy groups largely voiced support for the measure as a step forward for the domestic industry.

Cybersecurity Start-Up Darktrace Raises $65M Backed By KKR
CNBC | 7.06.16

Darktrace, a U.K. cybersecurity firm that positions its software as the "human immune system" for networks, has raised $65 million in a funding round led by U.S. private equity giant KKR, the start-up said on Wednesday. Existing investor Summit Partners contributed while new investors TenEleven Ventures and SoftBank joined the round. The British start-up is also backed by Autonomy founder Mike Lynch's Invoke Capital.

Insider Threat: How Being 'Noisy' Can Reduce Fraud
Bank Info Security | 7.05.16

Bank of the West's new approach to insider fraud deterrence is focused less on detection, more on keeping employees from committing fraud in the first place. Deputy chief security officer David Pollino says a "noisy" insider fraud program is actually more effective at reducing risk than covertly monitoring employee activity. "By people understanding that they're being watched, it sometimes changes their behavior - and it changes their behavior in a positive way," Pollino says.

Jobs Roar Back With Gain of 287,000 in June, Easing Worry
CNN Money | 7.08.16

The U.S. added 287,000 new jobs in June, according to the Labor Department report released Friday. It's a massive rebound from May when the U.S. added a mere 11,000 jobs. In fact, hiring in June hugely exceeded expectations. CNNMoney's survey of economists projected only 177,000 job gains. Hiring was strong across the board. The top industries adding workers were leisure and hospitality and health care. Mining is the only sector that's still struggling: 211,000 mining jobs have been lost since September 2014, largely because of super cheap gas prices.

Fed Officials Saw Outlook as Cloudy at Meeting Before ‘Brexit’ Vote
The New York Times | 7.06.16

The Federal Reserve did not raise its benchmark interest rate in June because officials worried that economic growth might be flagging, according to an official account published on Wednesday. And that was before Britain upset financial markets by voting to leave the European Union. The June meeting, and the fallout from the so-called Brexit vote, continued what has become a familiar pattern: The Fed entered the year predicting stronger growth and a gradual return to higher interest rates.

Credit Karma Study Upends Millennial Reputations, Finding Them Fiscally Focused and Responsible
PR Newswire | 7.06.16

Credit Karma, released the second installment of its Credit Karma Millennial Report that challenges many of the generalizations about millennial spending and saving habits. The report found young people are more in tune with the financial values of previous generations than anyone may have thought. Often perceived as irresponsible job hoppers, Millennials are actually loyal to their jobs as long as employers pay them fairly – and while they carry more student debt than any generation before, that's not stopping them from moving forward with their lives and saving for the future.

US Bank Talks Up clearXchange P2P Payments
Finextra | 7.06.16

Since U.S. Bank introduced this service to its customers, several other financial institutions have been added to the clearXchange platform, making real-time payments more broadly available. Because of the expansion of the platform, U.S. Bank is making the service available to customers with no fee, effective July 6. “Customers’ demand for real-time, person-to-person payments is growing and the network is expanding – it’s a perfect demonstration of how the banking industry is working together to deliver safe and easy solutions for customers’ evolving financial preferences,” said Gareth Gaston, executive vice president, Omnichannel Banking, U.S. Bank.

American Express: Partners in Preservation Awards $2 Million in Grants for Projects in National Parks
American Express | 7.06.16

American Express and the National Trust for Historic Preservation today announced the winners of the Partners in Preservation: National Parks campaign. The winning parks, determined by a popular vote, are Yellowstone National Park, Great Smoky Mountains National Park, Grand Canyon National Park, Yosemite National Park, Zion National Park, World War II Valor in the Pacific National Monument, Everglades National Park, Denali National Park and Mt. Rainier National Park.

MasterCard and 100 Resilient Cities Partner to Create More Efficient, Inclusive and Sustainable Urban Centers
MasterCard | 7.07.16

MasterCard will work with 100RC to help cities understand the risks of a cash-based economy and the opportunities associated with converting to digital payments. The company will assist 100RC members in the creation and implementation of resilience strategies, help deliver payments infrastructure and technology solutions to support those strategies, and share lessons learned to inform other cities.

Stripe Brings its Connect Marketplace Platform to Europe, Stripe Clone Paymill Finds a Buyer
TechCrunch | 7.05.16

Stripe is expanding its Stripe Connect product to marketplace businesses based in the UK, Ireland and the Nordics. Meanwhile, one of Stripe’s rivals has finally found a buyer after filing for bankruptcy in April: Paymill — a Stripe clone incubated by Rocket Internet back in June 2012 — has been acquired by Swiss financial services company Klik & Pay for an undisclosed sum.

FIS Named ‘Most Disruptive’ in PYMNTS/Alexa Challenge
FIS | 7.07.16

FIS, a global leader in financial services technology, won the “Most Disruptive” award at the 2016 Challenge. FIS was selected for its ability to provide millennial consumers “relevant and timely guidance to better inform their financial decisions,” according to PYMNTS. At its annual InfoShare conference in April, FIS premiered its concept skill application, FIS Faye, which leveraged Amazon Echo’s voice platform to make Alexa an everyday coach on financial matters.

Ingenico Group and ADVAM successfully partner in Australia and Europe
Ingenico | 7.07.16

The UnattendedPayments solution combines ADVAM’s proprietary payment gateway with Ingenico Smart Terminals’ iSelf payment devices for unattended markets. Customers thus benefit from a PCI Level 1 and EMV certified solution as well as from the proven processing capability of the ADVAM Gateway which handles dedicated links with acquirer banks in over 20 countries and offers multi-currency acquiring and access to global markets.

UnionPay International Launches "YouJiHua" to Enhance Cross-Border Consumer Experiences
PR Newswire | 7.06.16

"YouJiHua" is a new platform developed by UnionPay International. It is joined by various cross-border service providers in the fields of finance, travel and retail. "YouJiHua" realizes positioning, accurate marketing and instant discounts for cross-border consumption for the first time. Cardholders may enjoy "YouJiHua" in two ways. One is to get the QR code discount coupon by exploring the "YouJiHua" "Gift" signage in the mobile apps of UnionPay International, BOC and China Merchants Bank. Second is to receive the discount coupons promoted by the apps of partner travel agencies when booking airlines and hotels via the apps.

ACI Worldwide Appoints Marco Bravo Vice President for Latin America
ACI Worldwide | 7.05.16

ACI Worldwide announced the appointment of Marco Bravo as vice president for Latin America. With nearly three decades of international leadership experience, Bravo has held senior roles at Microsoft and IBM. Previously, Bravo led enterprise and partner group sales for Microsoft Brasil. At IBM, he led software solution sales and business development for IBM's Latin America Software Group. Earlier in his career, he served as general manager for Rational Software, leading its integration into IBM.

Pace Payment Teams With @Pay to Enhance Mobile Payments
The Green Sheet | 7.05.16

Pace Payment Systems and @Pay have announced a partnership to integrate a text-to-pay solution to its suite of secure payment products. The combined technologies represent faster payments by delivering more of a consumer-minded payment environment, while making future payments easier by not requiring the cardholder to repeatedly enter sensitive card data.

Danish Banking Collective Launches Mobile Wallet Powered by Nets’ New HCE and Tokenization Platform
LTP | 7.06.16

Nordic digital payments specialist, Nets, has been selected by Danish banking collective, the BOKIS partnership, to launch a new NFC mobile wallet solution powered by its HCE and tokenization platform. The BOKIS partnership includes 62 banks that form the small to mid-sized banks segment of the Association of Local Banks, Savings Banks and Cooperative Banks in Denmark, together with five Danish regional banks: Jyske Bank, Sydbank, Spar Nord Bank, Arbejdernes Landsbank and Nykredit Bank.

CardinalCommerce Significantly Expands Patent Portfolio, Continues to Drive Innovation in the eCommerce Payments Industry
PRWeb | 7.05.16

CardinalCommerce today announced a significant expansion of its global patent portfolio, demonstrating its ongoing commitment to innovation and leadership of the global eCommerce payments industry. The company’s U.S. and international patent portfolio now totals 63 issued patents, with a dozen new patents recently granted from five countries. Cardinal’s patents include sophisticated technology, architecture, engineering and applied sciences to protect its business and provide a safe haven for its Customers and Partners.

New Two-Factor Authentication App Launched for FTNI’s ETran Lite Check Processing Platform
FTNI | 7.07.16

FTNI announced today that FTNI Authenticator, its new two-factor authentication module, is available for the ETran Lite platform. The platform is currently used by over 80 financial services firms nationwide providing remote deposit capture (RDC) and mobile remote deposit capture (mRDC) solutions from a single platform.  Designed as a tailored check processing solution specifically for the Financial Services industry and delivered in a SaaS model, ETran Lite can be seamlessly integrated with existing back-office accounting applications, banking relationships and any Digital Check desktop scanner.

National Benefit Programs names Wooten VP Business Development
The Green Sheet | 7.07.16

National Benefit Programs (NBP), the leading merchant discount program in the payments industry, has announced the expansion of its leadership team, with Sonny Wooten taking the new position of Vice President of Business Development. In his new role, Mr. Wooten will deliver NBP’s innovative retention and revenue solutions to the marketplace, working with ISOs, acquirers, and processors to meet the needs of their merchant customers. He will also use his extensive industry knowledge, professional relationships and strategic insight to explore new opportunities to continue NBP’s growth trajectory.

PayCommerce Appoints Industry Veteran Kesh Talwar as Chief Payments Officer and CFO to Lead the Global Expansion of its Enterprise Cross-border Payments and Acceptance
PR Web  | 7.07.16

PayCommerce, the leading enterprise-class, cross-border payments network, today announced it has appointed Keshav "Kesh" Talwar as Chief Payments Officer and CFO in an effort to drive global expansion and maintain a competitive market position. Mr. Talwar brings over 25 years of payments industry experience to the role; having led payment strategies, product and business development and finance at firms including Ingenco Group, Global Collect, First Data Corp., MasterCard and Citibank.

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