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NF Edition #521 - 9/02/16
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Highlights this week...

New eReport - Tablet POS (Smart Terminal) Competitive Snapshot

Content Includes:
  • Tablet POS Evolution
  • Proprietary Versus Open Tablet Systems
  • Tablet POS Competitive Comparison
  • Tablet POS Strength by Industry
  • Tablet POS Strength by Feature
Preview  |  Purchase - priced at $1,495

The report can act as a strategic tool at higher levels within your organization to understand the dynamics of each player to assist in partnership planning or for M&A workouts. The report can also be leveraged to educate front-line personnel such as sales teams to enable them to position their tablet solutions more effectively in the market versus the competition.

The Company Quietly Handling Your Online Purchases
Businessweek | 9.01.16

On a digital world map in the lobby of an Amsterdam office building, you can watch the synapses of capitalism’s hive mind fire in real time. Pop: A small bubble containing Airbnb’s logo flashes over Rio de Janeiro, signaling a payment processed on behalf of the hotel marketplace. Pop: There’s a monthly bill paid to Vodafone in London. Pop: a new subscriber to Spotify in Paris. Pop: a Netflix payment in Tokyo. Pop. Pop. Pop. Pop. During a busy second, 100 transactions can flash across the map. The daily average is 7 million.

Apple Pay Could Lose Leverage in U.S. from Spat Down Under
BTN | 8.31.16

Australian banks are pushing Apple to loosen its grip on the technology that enables mobile payments. The result could bode well for U.S. banks as they look to re-up agreements with the tech giant. Apple has maintained tight control over Apple Pay since its October 2014 launch, forcing participating U.S. banks to pay a toll of 10 to 15 basis points per transaction to access the near-field communication antenna, or controller, according to industry sources. Banks grumbled, but they paid up. Many of the contracts U.S. banks initially signed to support Apple Pay are coming up for renewal, and financial institutions hoping to renegotiate terms are closely watching the Australia situation for signs of a thaw in Apple's policy of blocking third-party access to its mobile payments solution.

Related: Apple Under Attack from Australia's Biggest Banks Over Apple Pay

Square Confirms: People Really Don't Like Those Chip Credit Cards
The Washington Post | 9.01.16

When it comes to mixing convenience and security at the cash register, we still have a long way to go. Credit cards with security chips have more or less become the norm over the past several months. But that doesn't mean that people are happy about it. While transactions made with the chip-enabled cards are more secure than those made with an old-fashioned swipe, a survey from the mobile payments firm Square has found that 91 percent of debit card users and 87 percent of credit card users are frustrated with the new cards. The top reason? The extra security checks for chip cards means they take a while at the register — as anyone who has one can tell you.

Kimpton Hotels Acknowledges Data Breach
Krebs on Security | 9.01.16

Kimpton Hotels on Wednesday formally acknowledged that malware found on payment terminals in many of its hotels and restaurants may have compromised credit/debit cards of guests who patronized the properties in the first half of this year. The disclosure comes more than a month after KrebsOnSecurity first contacted to the company about a possible credit card breach across most of its locations. According to a notice added to the Kimpton Web site, the incident involved cards used at certain restaurants and hotel front desks from February 16, 2016 to July 7, 2016. Kimpton has posted a list of more than 60 restaurants and hotels where the company found and removed card-stealing malicious software from payment terminals.

Square Teams With Software Startups to Hook in More Businesses
Bloomberg | 8.29.16

Square Inc. unveiled deals with software startups Vend and TouchBistro, the latest partnerships that will offer its products to larger businesses that aren’t already customers of its electronic-payments system. Vend provides point-of-sale software for more than 15,000 retailers, while TouchBistro has specialized point-of-sale software for restaurants in more than 35 countries. Merchants previously had to stitch together hardware and services from different providers. The agreements announced Monday will let these companies use Square’s payments and business-management services on top of their Vend or TouchBistro point-of-sale systems.

Payments Maintains Strong Presence on Inc. 5000
The Green Sheet | 8.30.16

Payments honorees have once again graced the 2016 Inc. 5000 list. Published in August 2016 by Inc. Media, the 35th annual compilation represents America's fastest growing privately held companies. Westchester, Ill.-based C&H Financial Services, a merchant acquirer, ranked 21st this year. Inc. Media President and Editor in Chief Eric Schurenberg called the list a true measurement of success, noting the award must be earned and cannot be inherited. "No one makes the Inc. 5000 without building something great – usually from scratch," he said. "That's one of the hardest things to do in business, as every company founder knows. But without it, free enterprise fails."

The Next Wave of EMV
NACS | 8.29.16

With the October 1, 2017, EMV liability shift looming for automate fuel dispensers, many U.S. convenience store operators are preparing for the switch—to the tune of $6 billion. Upgrading fuel dispenser point-of-sale technology comes with a price tag as high as $17,000 per pump, Gray Taylor, executive director of Conexxus, told CNBC, an expense that will cut into the bottom line of the more than 90,000 single-store operators with the 154,000-plus convenience store universe.

Some Folks See EMV as a Curse, but Others See a Blessing
Digital Transactions | 8.31.16

If there’s one thing about EMV chip card payments that always works, it’s their ability to elicit strong feelings from those in the payments industry. It happened once again on Wednesday, when attendees at the Mobile Payments Conference 2016 in Chicago met for a closing panel session titled “EMV—Blessing or Curse?” For some, EMV is a curse cast on merchants by the payment card networks and card issuers. “It was a massive case of the Golden Rule—those with the gold make the rules,” said a panelist, Rich Stuppy, chief operations officer at Boise, Idaho-based risk-control technology provider Kount Inc. “They [merchants] were basically cajoled into doing it. If you don’t do it you run a substantial risk of loss.”

How Bitcoin Was Brought Down By Its Own Potential - And The Banks
Quartz | 8.30.16

The best that can be said about bitcoin right now is that it still exists. Split by internal divisions while its most useful aspects are harvested by the very financial behemoths it once hoped to destroy, bitcoin is fast becoming the tech world’s version of Waiting for Godot, wherein a hermetically sealed community squabbles and bickers over arcane points of code and law as their world slowly crumbles around them. In the last 12 months, attempts made to produce a road map for the cryptocurrency’s future have come to naught, all while core developers abandon the project and opaque Chinese mining concerns wield outlandish power.

Xiaomi Launches Its Own Mobile Payment Service
TechCrunch | 9.01.16

Chinese smartphone firm Xiaomi has launched its own mobile payment service today. You sensed it was coming. Not only do Samsung, Apple and others offers such services, but Xiaomi has outfitted its devices with fingerprint scanners and had a ‘wallet’ app, too, making its foray into payments seem inevitable. The phone maker has tapped UnionPay, the Visa-like payment firm that dominates China, and said that its Mi Pay service launches with support for debit and credit cards from 20 domestic banks, including Bank of China. In addition, Mi Pay — which is powered by NFC — can be used for public transportation trips across six cities in China.

Android Pay Set for Launch in Japan
Mobile World Live | 9.31.16

Google’s Android Pay will debut in Japan as soon as the autumn through a partnership with financial services giant Mitsubishi UFJ Financial, according to Nikkei. The news follows a report last week that rival Apple Pay could be coming to Japan in September. Initially, Android Pay will enable debit cards issued by Bank of Tokyo-Mitsubishi UFJ to be added to its wallet. The payment service will be available to users of certain Android smartphones. The aim is to add credit cards issued by Mitsubishi UFJ Nicos before the end of the year.

Swift Warns Banks to Speed Up Compliance Following Fresh Hacks
American Banker | 8.31.16

Swift is warning its member banks to quickly upgrade their software and security protocols for the global financial messaging system following a wave of recent hacks that triggered more bank losses. The Brussels-based organization notified its clients this week of a series of a fresh series of cyberattacks on banks that have occurred since June, the last time Swift provided a broad update on risks following the $81 million theft at the Bank of Bangladesh earlier this year, a Swift spokesperson confirmed.

Hackers Stole Almost 70M Customer Passwords from Dropbox After an Employee Reused a Password
Business Insider | 8.31.16

The login details of nearly 70 million user details from Dropbox have been leaked online — and it sounds like an employee re-using a password was to blame. Back in 2012, Dropbox disclosed that someone had managed to gain unauthorised access to a document containing user email addresses.Then last week, the cloud storage website forced users who had not changed their passwords since then to change them now as a "preventative measure." It turned out that it wasn't just email addresses that were accessed — encrypted user passwords were also stolen.

Related: Dropbox's Big, Bad, Belated Breach Notification

CFPB's Overreach Could Backfire. Just Ask the FTC
BankThink | 8.31.16

The Consumer Financial Protection Bureau's proposed rules on small-dollar loans are significant not only because they are sprawling, complex and tough, but also because they are the first rules the CFPB has issued pursuant to its powers to prohibit unfair, deceptive or abusive acts or practices. Before the small-dollar proposal, the consumer bureau had used this authority only as the basis of enforcement actions against specific companies, not industrywide rules. 

'Ripper' ATM Malware: Where Will Cybercriminals Strike Next?
BankInfoSecurity | 8.31.16

Daniel Regalado, a FireEye senior staff malware researcher, had a feeling something was going wrong somewhere in the world when he saw the alert: A never-seen-before type of malicious software designed to steal money from ATMs had been detected. An hour later, the first news report arrived: Three groups of men had scattered through six provinces in Thailand, commanding 21 ATMs to disgorge a total of 12 million baht ($350,000). The incident had an eerie familiarity: In mid-July, $2.2 million was stolen from dozens of ATMs in Taiwan in a flash strike that sent shivers through the banking industry.

U.S. Job Growth Slowed in August, But Hiring Steady
CBS | 9.02.16

The U.S. economy added 151,000 jobs last month, the Labor Department said Friday. The unemployment rate remained unchanged at 4.9 percent. Analysts surveyed by data provider FactSet had forecasts that employers added 180,000 in August. Among major job sectors, employment in restaurants and bars showed the greatest payroll gains. Also showing growth were social services, financial services and health care, while the mining industry continued to shed jobs.


Here's How Americans Are Spending Their Money
MarketWatch | 8.31.16

Americans are spending more to eat out, replace old cars and trucks and entertain themselves. They also have to devote a bigger share of their budgets to rents and health care, however. Those are some of the nuggets in the government’s latest report on how households spent their incomes in 2015. Consumer spending rose 3.2% last year to mark the fastest rate since 2005, two years before the onset of the Great Recession.

Worldpay Extends Relationship with Ingenico (UK) Limited
Ingenico | 9.01.16

Ingenico (UK) Limited is pleased to announce the extension of its commercial relationship with Worldpay UK. Ingenico (UK) Limited will continue to act as Worldpay UK’s preferred supplier of card payment terminals until 2020. This extended relationship comes at a time when both market leading businesses are continuing to invest in and expand their products and services to provide customers and consumers with the most innovative, secure and reliable payments experience.  

Amazon and Wells Fargo Terminate Student Loan Partnership
Bloomberg | 8.31.16 and Wells Fargo on Wednesday ended their partnership to offer college students a discount on private student loans, quickly abandoning what the bank lauded just six weeks ago as a "tremendous opportunity." The deal between the giant online retailer and the nation's third-largest bank by assets represented Amazon's first foray into the competitive market of lending to college students. For Wells Fargo, which has aggressively tried to build up its student loan business, the partnership was meant to help the bank reach millions of potential customers who shop on Amazon and might be enticed by the bank's half-percentage point discount on its higher-education loans.

Verifone Reports Results for the Third Quarter of Fiscal 2016 and Updates Outlook for Full Year
Verifone | 9.01.16

"We made real progress during the third quarter in further repositioning Verifone, building our services business and bringing our new devices to market. Despite this progress, Q3 was a challenging quarter for Verifone on revenues.  We moved decisively to reduce our cost structure, and those initial efforts helped us exceed our revised EPS target,” said Paul Galant, Chief Executive Officer of Verifone.  "We are managing through what we believe are difficult but temporary local market and lingering EMV adoption issues. Our outlook for Q4 now assumes a significantly slower EMV rollout, and we are projecting fiscal year 2017 consolidated revenues to be approximately 3% below fiscal year 2016 levels.

Wirecard Opens Up Alipay to European Merchants - POS Integration Not Necessary
Finextra | 9.02.16

Alipay's advance into Europe is getting a boost from Germany's Wirecard, which has developed a mobile app with which retailers can accept and process Alipay payments through a QR code scan. Alipay claims bragging rights to world-leading payment platform status, with 450 million active users run by Alibaba offshoot Ant Financial Services Group.

Nets Files for IPO
Finextra | 9.01.16

Nordic payments processor Nets has applied for an Initial Public Offering in a partial share sale that is expected to generate proceeds of about Dkr5.5 billion ($824 million) for equity owners Advent International Corporation and Bain Capital Private Equity, as well as Danish pension fund ATP. Nets was acquired by the current consortium of shareholders in July 2014 from 186 primarily Danish and Norwegian banks for Dkr17 billion.

Uber and Visa Introduce ‘Local Offers’ Program to Help Merchants Tap Into Local Spend Opportunities
Visa | 8.30.16

Uber and Visa Inc. announced Uber Local Offers, a new way for riders to earn discounted rides by simply using the same Visa credit card on file with Uber at their favorite local merchants*. With Uber Local Offers, Uber riders get more out of shopping and dining, while merchants get a simple new way to acquire customers, drive loyalty and increase sales. Local Offers will initially be rolled out in phases to Uber riders in San Francisco and Los Angeles.

Mastercard Names Warren Kneeshaw as Head of Investor Relations, Succeeding Barbara Gasper
Mastercard | 8.31.16

Mastercard today appointed Warren Kneeshaw as executive vice president of investor relations, effective November 1, 2016. This appointment comes as Barbara Gasper announced she will retire from Mastercard at the end of the year. Gasper joined Mastercard in March 2006 to create the company’s investor relations department ahead of its initial public offering. During her decade-long tenure, she led a highly-recognized team that has met the evolving investor-related needs of the company as it grew from $4 billion in market cap to more than $100 billion.

UnionPay Offers Secure and Convenient Payment Service for Chinese Students Studying Abroad
PR Newswire | 8.29.16

As the new semester begins, Chinese students who study overseas are going abroad. It is learnt that over 2,000 educational institutions outside mainland China accept UnionPay cards for tuition payment, and UnionPay payment service system has covered all aspects of students' daily study and life in major destinations.

Visa Incubator to Test Blockchain for Interbank Payments
CoinDesk | 9.01.16

Visa’s London-based innovation lab has announced its latest blockchain trial will focus on interbank payments. Visa Europe Collab revealed it has partnered with Toronto-based BTL Group to explore how the startup’s interbank settlement system can leverage blockchain and smart contracts to streamline domestic and cross-border payments between banks.

TransFirst and LCNB National Bank Announce New Relationship
TSYS | 8.26.16

TransFirst, a leading provider of transaction processing services and payment-enabling technologies, and LCNB National Bank, a subsidiary of LCNB Corp., headquartered in Ohio, have announced a new strategic partner relationship. Under the agreement, TransFirst will offer its payment processing products and services to business customers of LCNB National Bank, giving them access to the full suite of TransFirst’s payment processing products and services, a competitive pricing structure, dedicated and collaborative sales support teams and 24/7, U.S.-based customer support.

Boku Raises $13.75 Million in Further Venture Funding
LTP | 9.01.16

Boku, the world’s largest direct carrier billing mobile payments company, is pleased to announce that it has secured $13.75 million in further venture funding to expand carrier billing across numerous carrier connections in developed and emerging markets around the globe. Several of Boku’s existing venture investors from Silicon Valley have followed on with their investments in Boku, including Khosla Ventures, Benchmark Capital, NEA, Index Ventures and DAG Ventures, in addition to another new and existing investors in the UK, US and Asia.

QikServe and FreedomPay Address the EMV Challenge in Hospitality
PR Newswire | 8.31.16

QikServe, the mobile order and payment specialist, today announced its technology has been certified on the FreedomPay Commerce Platform. The integration allows QikServe to offer its hospitality customers a powerful and secure option for handling payments and transactions with PCI-validated point-to-point encryption (P2PE), and provides EMV (chip and pin) certification out-of-the-box.

Discover Named a 2016 CIO 100 Winner for Innovative Technology Project
Discover | 9.01.16

Discover Financial Services was selected by International Data Group’s CIO as a recipient of the 2016 CIO 100. The 29th annual award program recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information technology (IT). Discover was honored for the work in the Discover Student Loans (DSL) business and their technology improvements to deliver personalized customer applications that meet the unique needs of millennials.

Apriva Adds ITC Systems to Extensive Portfolio of Campus Card Connections
Apriva | 8.31.16

Apriva, the leading provider of secure end-to-end wireless transaction processing solutions, today announced it has established a direct integration to ITC Systems for campus card transaction processing functionality. This new relationship further expands upon Apriva’s direct connections to all of the leading campus card processors, as well as enables access to new campuses throughout North America utilizing ITC Systems’ campus solution.

Shift4 Helps Merchants Provide Shorter Wait Times With Quick Chip EMV Support
Shift4 | 8.30.16

Shift4 Corporation announced they have released a new software update that adds support for multiple quick chip EMV solutions, including Visa Quick Chip for EMV, Mastercard M/Chip Fast, Amex Quick Chip and Discover Quick Chip. As one of the first payment gateways to support quick chip functionality, Shift4 continues to deliver timely solutions to merchants’ most vexing payments issues. Quick chip functionality alleviates the consumer’s perceived wait time by allowing shoppers to remove their EMV chip cards a few seconds after inserting their card while the clerk continues to scan items.

Randolph Savings Bank Extends Fiserv Relationship, Enhances Digital Banking to Support Post-IPO Growth Strategy
BusinessWire | 8.29.16

Fiserv, Inc., a leading global provider of financial services technology solutions, announced that Randolph Savings Bank, headquartered in Stoughton, Massachusetts, has renewed and expanded its relationship with Fiserv. The bank extended its agreement for the Cleartouch bank platform with a long-term renewal and added several Fiserv solutions to expand its digital banking capabilities, support continued growth and enhance the customer experience.

American Express® and Delta Private Jets Announce New Partnership
American Express | 8.30.16

With a shared focus on exceptional service and innovative solutions for the business and leisure traveler, American Express and Delta Private Jets have joined forces to offer a new suite of travel benefits opening a new gateway of custom travel opportunities for select Card Members. The new Premium Private Jet Program offers a reduced fee for Platinum Card Members who purchase the Delta Private Jets Card Membership, as well as a wide range of other benefits offering control, convenience and style in the air.

Elavon to Suspend Service Fees for Baton Rogue Customers for Three Months
Elavon | 9.02.16

Elavon, a leading global payments provider and subsidiary of U.S. Bancorp, has announced that it will suspend its processing and acquiring service fees from August through Oct. for customers suffering through some of the worst flooding ever seen in Louisiana. “The floods that have devastated Baton Rouge have left business owners without the ability to provide their Parishes with the goods and services they need,” said Guy Harris, president of Elavon North America.

Bluefin Introduces PAX Devices for Stand-Alone and Semi-Integrated PCI-validated Point-to-Point Encryption (P2PE)
Yahoo! | 8.30.16

Bluefin Payment Systems, the leading provider of PCI-validated Point-to-Point Encryption (P2PE) solutions for retail, healthcare and education, announced the availability of the PCI PTS-approved P2PE POI PAX S300 & S500 devices for stand-alone and semi-integrated applications with EMV on the company’s PayConex payment platform. Founded in 2001, PAX is an innovative global provider of secure electronic payment solutions with a comprehensive portfolio of PCI and EMV compliant electronic fund transfer point-of-sale (EFT-POS) terminals including Countertop, Mobile and Wireless, Multilane Retail and Contactless/NFC.

VendPro adopts cashless payment acceptance via USAT ePort
The Green Sheet | 8.30.16

USA Technologies, Inc., a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, announced it has added VendPro Refreshment Services to its growing list of customers transitioning to cashless payment technology on over 50 percent of their machines. USAT is currently working to connect 1,800 of VendPro’s vending, coffee and micro-market machines to USAT’s next-generation, interactive content delivery and payments platform, ePort® Interactive, marking USAT’s largest order to date since the acquisition of VendScreen earlier this year. 

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