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NF Edition #532 - 11/18/16
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Highlights this week...

In Case You Missed It: Election Impact on the Payments Industry
It's been a little more than a week since the most surprising and tumultuous presidential election in memory.  With a Donald Trump win and the House and Senate staying in Republican hands, there are a lot of potential effects from these results. TSG has reviewed comments from many pundits as well as experts in the industry and compiled our thoughts on the elections impact on the payments industry. Read TSG's potential positives, negatives and unknowns.

TSG eReport - Political Organization/Campaign ISV Directory
TSG’s latest eReport is a directory of independent software vendors that serve the political organization & campaign space. A main service that these software companies often provide is donation management for political elections. TSG’s directory covers 29 players and includes the following insights (as available):

  • Market Share
  • Number Of Users
  • Payment Processing Partnerships
  • Number Of Employees
  • Marketed Clients
  • Affiliations
The report also provides payments performance metrics for MCC 8651, Political Organizations. These metrics are sourced from TSG’s AIM database of 3.5 million merchants and cover a sample of ~2,000 merchants.

Preview  |  Purchase - priced at $895

House Foe of Dodd-Frank Says Overhaul Will Face Test in Senate
The New York Times | 11.16.16

A prominent Republican lawmaker on Wednesday laid out his agenda for restructuring the financial system in the next Congress, including his plan to roll back major portions of the Dodd-Frank Act. Representative Jeb Hensarling, Republican of Texas and chairman of the House Financial Services Committee, has long been a vocal opponent of the 2010 financial reform law. But he now has an ally in President-elect Donald J. Trump, who has repeatedly called for taking apart Dodd-Frank, and he has Republican majorities in both chambers of Congress.

Related:

Mobile Is the Linchpin To Digital Commerce – But Our Industry Moves Too Slowly
n>genuity - Authored by TSG's Jared Drieling | 11.15.16

In today's world, no matter the industry or geography, if you take a channel-centric approach or don't adapt to the changing world, you'll essentially cause friction in any process and likely become extinct. Just ask Blockbuster, Kodak and Borders. Here is where mobile payments enter the picture: As merchants face this fast-evolving digital age, they are trying to transform to catch up with these various forces and avoid becoming the next Blockbuster. Likewise, payment providers are also trying to transform into technology partners so they can service merchants more effectively through various channels in a seamless manner. Payments players that build capabilities and competitive advantages early will hold a significant edge over those that play catch-up.

First Data: Recruiting, Innovations, and Other Measures Are Paying Off
Omaha World Herald | 11.17.16

It’s a new day at First Data Corp., company executives said during a five-hour “investors day” conference Wednesday from a hotel in New York City’s Times Square. Besides its long-standing business of processing payments, the Omaha-founded company has become a partner with its customers in business intelligence, security, sales and other services that help companies succeed, the executives said. They took to the stage in New York, where the company’s executives are based, and the Internet to describe changes since shares went on public sale in October 2015. The public stock sale followed eight years of ownership by a private investment group that left the company $24 billion in debt.

Nearly 4 Million Same Day ACH Payments Transacted Totaling Nearly $5 Billion in October 2016
NACHA | 11.15.16

The Electronic Payments Association, the steward and rule maker of the ACH Network, today released Same Day ACH transaction volume data for October, the first calendar month following Phase 1 implementation on Sept. 23, 2016. Same Day ACH, an industry initiative to move payments faster, was responsible for 3.8 million transactions in October, totaling $4.98 billion with an average transaction amount of $1,303.

Visa’s EMV Debit Routing Practices Attract the Attention of the FTC And the Fed
Digital Transactions | 11.16.16

The Federal Trade Commission is investigating Visa Inc.’s practices involving EMV debit card transaction routing, Visa disclosed Tuesday. And the Federal Reserve earlier this month posted guidance about EMV debit routing that, according to retailer trade groups, was issued in response to their objections to Visa’s practices at the point of sale. The eight merchant associations on Wednesday sent a letter to Visa chief executive Charles W. Scharf, who plans to step down in December, and his successor, Alfred Kelly, demanding to know what Visa will do about what they call Visa’s “Fed rule violations.”

CanPay Aims High with Weed Industry's First Debit Payment App
Finextra | 11.17.16

A payments startup is looking to cash in on America's weed revolution, launching a debit payment solution specifically designed for the cannabis industry. Although nine states voted to legalize cannabis this election cycle, joining the likes of Colorado and Oregon, federal laws mean that many banks and credit unions are unwilling to provide the industry financial services.

6 Takeaways From CoinDesk's Q3 State of Blockchain
CoinDesk | 11.17.16

It's no secret that what the world calls "blockchain" has evolved. From its invention for the bitcoin blockchain to its implementation in new alternatives that take the idea in unintended directions, this expansion has had a dramatic effect on the industry. Likewise, with CoinDesk's Q3 State of Blockchain, we continue to attempt to reflect these changes in the taxonomy of the report. Once dedicated solely to developments on the bitcoin blockchain, the report now is divided into two sections, one on public blockchains (profiling bitcoin and ethereum) and the other on enterprise blockchains (capturing startups like R3CEV, Chain and DAH).

Wal-Mart, Target Face Holidays (and Amazon) With Rearranged Tech Leadership
The Wall Street Journal | 11.16.16

May require subscription. As rivals Wal-Mart Stores Inc. and Target Corp. report quarterly earnings this week, the retailers face the holiday shopping period having rearranged technology leadership. The hope is to shore up e-commerce sales. Target reported Wednesday a 26% jump in e-commerce sales in the quarter ended last month, after two quarters of decelerating growth. Amazon.com Inc., the dominant e-commerce company, said sales grew 29% in its most recent quarter. Wal-Mart is due to report earnings Thursday. Several e-commerce executives are leaving Wal-Mart as the company digests its $3.3 billion purchase of Jet.com Inc. in a deal that closed in September.

Why Even Payments Experts Have Trouble At the POS
PaymentsSource | 11.16.16

Reetika Grewal — head of payments strategy and solutions at Silicon Valley Bank, a $43 billion-asset bank in Santa Clara, Calif. — recently tried to use her iPhone to make a mobile payment. She then swiped her card and the machine started beeping. Finally, she inserted her card and the payment went through. As a payments industry professional, she took the situation in stride, but her experience exemplifies an issue many consumers are facing.

Samsung Pay Adds Rewards, Offering Points for Every Transaction
TechCrunch | 11.14.16

Samsung is giving customers a new incentive to use Samsung Pay, its mobile payments product. The company released Samsung Rewards today, which is a program that provides points whenever a user uses their Samsung Pay for a transaction. The points gathered through the program can then be exchanged for rewards including gift cards, Samsung products, and more from various U.S. retailers. 

Paytm Hits Record 5M Transactions a Day
Business Standard  | 11.14.16

Buoyed by a sudden surge in demand for digital transaction, India’s largest mobile payments platform Paytm said it has touched a figure of five million payment transactions per day. Following the ban on Rs 500 and Rs 1,000 notes, mobile wallets, debit and credit cards, online money transfers have seen a rise of 200%, industry experts have observed. According to senior executives at Paytm, the Vijay Shekhar Sharma-led company would be able to close the financial year with Rs 24,000 crore worth of transactions processed on the platform. 

Users Can Now Donate to their Favorite Nonprofits Through Apple Pay
Digital Trends | 11.14.16

Apple Pay has supported consumerism for the last couple years, but now it’s supporting a different kind of spending — that of the charitable nature. With the holiday season, #GivingTuesday, and goodwill all right around the corner, Apple has announced that its mobile payments platform now supports instant donations to nonprofits. So now, in addition to buying yourself that new winter coat, you can help keep someone else warm this holiday season, too.

NFC-Ready POS Terminals to Reach 16.1M in 2016
MPW | 11.15.16

According to new research from Berg Insight, the market for NFC-ready POS terminals continues to show strong momentum in 2016 with annual shipments anticipated to reach an estimated 16.1 million units worldwide. The attach rate for NFC was highest in EU and North America, where 93% and 92% respectively of the POS terminals shipped featured NFC. NFC was also a very popular feature in many other major markets worldwide, including Brazil, Turkey and China.

European Commission Sets Up Fintech Task Force
Finextra | 11.17.16

The European Commission has set up a Financial Technology Task Force to shape its response to the effects of digital innovations in the banking sector. Co-chaired by DG Fisma and DG Cconnect, the Task Force brings together services responsible for financial regulation and for the Digital Single Market, along with experts in competition and consumer protection policy.

Security Experts Call For Regulation On IoT Cybersecurity

Dark Reading | 11.16.16

Security experts asked lawmakers for more action, today, during a Congressional hearing on IoT security. On their wishlist: consequences to manufacturers for delivering insecure products, a federally funded independent lab for pre-market cybersecurity testing, and an entirely new federal agency devoted to cybersecurity. "We are in this sorry and deteriorating state because there is almost no cost to a manufacturer for deploying products with poor cybersecurity to consumers," said Dr. Fu. He later added "also there's no benefit if they deploy something with good security." 

RLC and NRF Ask Full Appeals Court to Hear Case on American Express Credit Card Fees

BusinessWire | 11.15.16

The Retail Litigation Center and the National Retail Federation have asked the full 2nd U.S. Circuit Court of Appeals to take up a lawsuit over American Express rules that keep retailers from encouraging customers to use other cards with lower processing fees, saying the rules are an antitrust violation and have made it difficult for merchants to win lower fees from any of the nation’s major credit card companies.

Adobe Fined $1M in Multistate Suit Over 2013 Breach; No Jail for Spamhaus Attacker
KrebsonSecurity | 11.17.16

Adobe will pay just $1 million to settle a lawsuit filed by 15 state attorneys general over its huge 2013 data breach that exposed payment records on approximately 38 million people. In other news, the 39-year-old Dutchman responsible for coordinating an epic, weeks-long distributed denial-of-service attack against anti-spam provider Spamhaus in 2013 will avoid any jail time for his crimes thanks to a court ruling in Amsterdam this week.

Alleged Adult Website Breach May Affect 412 Million Accounts
Bank Info Security | 11.14.16

A group that collects stolen data claims to have obtained 412 million accounts belonging to FriendFinder Networks, the California-based company that runs thousands of adult-themed sites in what it described as a "thriving sex community." LeakedSource.com, a service that obtains data leaks through shady underground circles, believes the data is legitimate. FriendFinder Networks, stung last year when its AdultFriendFinder website was breached, could not be immediately reached for reaction. If the data is accurate, it would mark one of the largest data breaches of the year behind Yahoo, which in October blamed state-sponsored hackers for compromising at least 500 million accounts in late 2014

Alibaba, Tencent Get Behind China's Strict New Cyber Law
Fortune | 11.17.16

China’s Alibaba Group Holding and Tencent Holdings rallied behind Beijing’s recently imposed cybersecurity law on Thursday, following criticism of it from overseas technology rivals. The country’s two tech giants also urged closer cooperation between the public and private sectors at China’s third World Internet Conference, which has focused on heightened threats to cybersecurity over the past year, including disruptions to financial systems and online terrorist radicalisation.

Next-Gen Biometrics: Using the Force of Habit
American Banker | 11.17.16

National Westminster Bank in London is tracking every movement customers make on its website or mobile app, looking for behavior that doesn't match past actions or clues that users are not who they purport to be. Behavioral biometric software is catching on in the industry, typically as one of an array of measures to prevent digital banking fraud. The recent cybertheft at Tesco Bank in Edinburgh, Scotland, in which about $3 million was stolen from 9,000 customer accounts, has brought the need for such defenses to the forefront.

U.S. Retail Sales Rose 0.8% in Oct. vs 0.6% Increase Expected
CNBC | 11.15.16

U.S. retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month. The Commerce Department said on Tuesday retail sales increased 0.8 percent last month, also boosted by demand for building materials likely as households cleaned up and made repairs in the wake of Hurricane Matthew.

Yellen: Too Soon to Predict Economic Effects of Election
The New York Times | 11.17.16

Janet L. Yellen, the Federal Reserve chairwoman, said Thursday it was too soon to predict the economic impact of Donald J. Trump’s election as the next president of the United States. Markets have rallied on optimism that Mr. Trump, in concert with Republicans in Congress, would cut taxes and increase federal spending on road-building and the military, measures that might stimulate economic growth.

Jobless Claims in U.S. Decline to Lowest Level in Four Decades
Bloomberg | 11.17.16

The fewest Americans since 1973 filed for unemployment benefits last week, a sign that the U.S. labor market is getting tighter. Jobless claims dropped by 19,000 to 235,000 in the week ended Nov. 12, which included the Veterans Day holiday, a Labor Department report showed Thursday in Washington. The median estimate in a Bloomberg survey called for an increase to 257,000. Continuing claims fell below 2 million to a 16-year low.

Showing Small Businesses the Love: More Consumers than Ever Are Aware of Small Business Saturday & Plan to Shop Small on November 26th
American Express | 11.17.16

Across the country, small businesses and consumers alike are getting excited to support their favorite local, independent businesses on Small Business Saturday, which takes place this year on November 26th. Results from the fifth-annual Small Business Saturday Consumer Insights Survey, released today by the National Federation of Independent Businesses and American Express, show that more consumers than ever are aware of Small Business Saturday (58% vs. the previous high of 55% in 2015).

EVO Announces Jeff Rosenblatt Appointed Vice Chairman
PRWeb | 11.17.16

EVO Payments International (EVO), a leading card payment acquirer and payment service provider operating in the United States, Canada, Mexico and Europe, announced today that Jeff Rosenblatt has been promoted to Vice Chairman of EVO from his role as the President. “Jeff is a co-founder of EVO and a recognized leader in the payments industry. As President, he has been instrumental in establishing EVO as a leader in payments processing, both domestically and internationally. In Jeff’s new position, he will continue to provide support based on his 30 years of experience in the payments industry,” said Ray Sidhom, Chairman of EVO.

Shift4 is Integrating to the Oracle Payment Interface
PR Newswire | 11.15.16

Payment gateway provider Shift4 Corporation today announced that they are writing to the Oracle Payment Interface (OPI), providing fast, secure and reliable payment processing to thousands of merchants who use Oracle's point-of-sale and property management solutions. As an existing Gold Partner, Shift4 is further enhancing their relationship with Oracle as a member of the Oracle Partner Network. "Shift4 is committed to helping merchants optimize their business processes by providing the industry's most advanced payment security, 100% bank and processor neutrality, and an unwavering commitment to merchant advocacy. For merchants working in this complex hospitality space — which bridges food and beverage, retail, and lodging together — our joint solution with Oracle provides it all."

Womply Raises $30M to Run SMB Front Offices
VB | 11.15.16

Womply, the leader in front office software for small and medium sized businesses (SMBs), announced that it has raised $30 million in a growth equity financing led by Sageview Capital, with participation from existing investors. Since its founding in 2011, Womply has raised $50 million in total investment from a combination of high net worth, venture capital, and growth equity investors. The company plans to use the new capital to hire more staff, expand its product offerings, and reach more small and medium business customers.

Vantiv Named as a Leader in Independent Research Firm's Global Commerce Payment Provider Report
Vantiv | 11.15.16

Vantiv, Inc., a leading provider of payment processing services and related technology solutions for merchants and financial institutions of all sizes, announced today Forrester Research, Inc., a prominent independent research and advisory firm, named Vantiv as a Leader in the Forrester WaveTM: Global Commerce Payment Providers, Q4 2016 report. “Vantiv balances superior support, product and developer capabilities for U.S. retailers,” Forrester wrote in the report.

Global Payments and American Express Announce Agreement for Processing and Servicing Solutions in the UK
Global Payments | 11.14.16

Global Payments Inc., a leading worldwide provider of payment technology services, and American Express today announced an agreement that will enable Global Payments to provide enhanced payment acceptance solutions to American Express small merchants in the UK. These technology solutions include payment processing, settlement, reporting, support and statementing services on behalf of American Express.

Moneris and ATB Financial Announce Five-Year Contract Extension
Moneris | 11.15.16

Moneris Solutions Corporation, one of North America’s largest processors of debit and credit card payments, announced the signing of a five-year contract extension with ATB Financial (“ATB”), Alberta’s largest homegrown financial institution. Moneris will continue to provide ATB with merchant services by supporting in-store and online payments in addition to offering a wider variety of payment products and services.

Adyen Adds WeChat Pay to its Platform Globally
Adyen | 11.15.16

Adyen, the payments company powering global commerce for Uber, Facebook and Netflix amongst others, today announced that it has added WeChat Pay to its portfolio of local payment methods, enabling businesses to access 300 million Chinese shoppers. China is at the forefront of the mobile payments revolution that is powering global ecommerce growth. 15% of China’s total population is expected to make a cross-border purchase by the end of 2016 – amounting to $86 billion in transaction value. By 2020, Adyen expects this to increase to as much as 75%.  

Android Pay Now Available to Mastercard Cardholders in Poland
Mastercard | 11.17.16

Google confirmed that Android Pay service, enabling contactless mobile payments with Android-based devices, is now live in Poland. It provides millions of Mastercard cardholders in the country with yet another innovative, fast and secure way to pay, wherever Mastercard contactless payments are accepted. Poland is the first country in Central and Eastern Europe region and the second country in Europe (after the UK) to roll out the Google service. On the launch date, Android Pay is available in Poland to the holders of Mastercard cards issued by Alior Bank, T-Mobile Banking Services and Bank Zachodni WBK.

JetPay Corporation Announces Third Quarter Financial Results
MarketWired | 11.14.16

JetPay Corporation announced financial results for the third quarter and nine months ended September 30, 2016. Revenues increased 47.5%, or $4.9 million, to $15.2 million for the quarter ended September 30, 2016 as compared to $10.3 million for the same period in 2015, and up 23.2% to $39.1 million for the nine months ended September 30, 2016 as compared to $31.7 million for the same period in 2015.

Cardtronics and Kroger Extend ATM Relationship
Cardtronics | 11.17.16

Cardtronics announced it has entered into a new, long-term ATM services agreement with The Kroger Co., the nation’s largest traditional grocery retailer. Cardtronics is the world’s largest ATM owner / operator. The latest agreement, a long-term renewal, extends a relationship between the two companies that was established in 2010. Cardtronics currently owns and operates approximately 1,300 ATMs in the Kroger family of grocery and convenience stores, with that total spread across 32 states and 13 of Kroger Co.’s local banner names. 

American Express Canada Continues Expansion of Small Merchant Network
Yahoo! Sports | 11.17.16

American Express Canada announces that Elavon Canada is the latest acquirer to sign on to its OptBlue program. OptBlue enables third-party acquirers to sign up Small Merchants to accept American Express Cards.  Partnering with Elavon progresses American Express' strategy of capturing more of its Cardmembers spending at small and locally-owned businesses.

Kaltura Integrates with Stripe
Streaming Media | 11.15.16

Kaltura, the leading video technology provider, today announced that it has integrated Kaltura OTT TV with global commerce platform, Stripe. Kaltura OTT TV supports multiple business models including transactions, subscriptions, advertising and freemium, while Stripe enables businesses to securely accept payments online and in mobile apps in over 130 currencies, in addition to alternative payment methods like Apple Pay and Android Pay.

linked2pay Adds Real-Time Payments to Bank Centric Payments
VB | 11.15.16

linked2pay, an award-winning banking and payments technology provider, and Push Payments, a real-time payments platform provider announced today that real-time payments are now an option on the Bank Centric Payments platform. This enables partners on the bank integrated platform to offer both Real-Time and ACH payments, including same day, as their own fully integrated, white-labeled solution.

Vesca to be First Out in Japan with Verifone Engage Offering Enhanced Payment Services and Solutions to Merchants
Verifone | 11.14.16

Verifone, a world leader in payments and commerce solutions, has partnered with Vesca, a leader in providing payment and marketing solutions as a service in Japan, to offer enhanced and secure payment services and solutions to merchants in the country. The partnership will bring together the technology portfolio and geographic strengths of the two companies, to enable financial institutions, retailers and various industry verticals to benefit from innovative payment solutions.

HealthAsyst Chooses Worldpay to Enable POS Payments via Its Patient Check-in Solution CheckinAsyst
PRNewswire | 11.14.16

HealthAsyst, a technology company with a strong track record of successful products and services across the healthcare industry, has chosen global payments leader Worldpay to enhance payment acceptance for its patient check-in solution –'CheckinAsyst'. With Worldpay, CheckinAsyst customers can begin accepting payments from patients quickly and reliably. "With the advent of high-deductible-high co-pay health plans, patient payment collection is a significant challenge for healthcare facilities. By providing multiple payment options through Worldpay during the patient check-in process, facilities can expedite revenue collection at the point of service and reduce bad debts. 

Ingenico ePayments and Cabify Partner in Latin America to Offer Consumers the Most Seamless and Secure Payment Experience
Ingenico | 11.15.16

Cabify, founded in 2011 by Spanish entrepreneur Juan de Antonio, has received more than USD 150 million in investments, which reflects the company’s successful business model and potential for further growth. Cabify currently has offices in 12 countries and more than 33 cities across Spain, Portugal, and Latin America. From October 2016, Ingenico ePayments exclusively processes both full-service and gateway payments for Cabify. Consumers will be offered credit card in-app purchasing as the primary payment option, and as the business expands over the region in the next few months, new currencies and payment methods will be added to ensure that consumers will have payment options tailored to their preferences.

Intrix Technology and Ionic Services Announce Technology Integration
Intrix | 11.14.16

Intrix Technology, Inc., a leading payment processor and ISO, and Ionic Services, Inc., a provider of back office CRM services, have completed the integration between Intrix’ payment portal and Ionic’s accounting system, bringing to market a “streamlined” payments and accounting solution for the funeral home industry. The new integrated system provides funeral homes the ability to reduce the number of steps necessary to handle credit card processing, accounts receivable and other back office operations, saving time and money, eliminating errors and reducing fraud exposure. 

A.F. Wendling’s Foodservice Launches FTNI’s Online Payment Portal and Advanced Remote Deposit Capture (RDC) Solutions
FTNI | 11.16.16

Financial Transmission Network, Inc. (FTNI) announced today that A.F. Wendling’s Foodservice has successfully launched multiple solutions on the ETran Integrated Receivables platform, including its Fully-Hosted Online Payment Portal and advanced Remote Deposit Capture (RDC). Founded in 1913, A.F. Wendling’s Foodservice has grown to become the largest independent family-owned and operated broadline foodservice distributor in West Virginia – serving the Mountain State and border markets in Ohio, Pennsylvania, and Maryland. Wendling’s stocks over 7,000 products (and has access to over 28,000) including fresh seafood, produce, dairy items and a growing line of non-foods products including paper, chemicals and more.

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