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NF Edition #519 - 8/19/16
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Highlights this week...

Check Out TSG's Hottest New eReport

  • Payments Industry 101: This report can serve as a guide to understanding the landscape of the U.S. payments industry. This material, expertly curated by TSG Associates, provides excellent coverage of the payments ecosystem and the industry’s opportunity, as well as valuable insights into merchant acquiring, credit card issuing, and general industry trends. Seasoned executives, and newcomers alike, will find substantial value in the contents. Preview | Purchase

EMV: The Anniversary - Complete the Survey, Get Results

Now that the EMV liability shift is quickly approaching its one-year anniversary, TSG is interested in gauging the current status of EMV implementation in the U.S.

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Eddie Bauer Is Latest Retailer Infected With Data Breach Malware

Fortune | 8.19.16

Many customers’ card details may have been stolen.The outdoor clothing and accessories retailer Eddie Bauer is the latest victim of point-of-sale malware to admit that its customers’ card details may have been stolen. Just days after hotel operator HEI said 20 of its hotels had been infected, Eddie Bauer said its 350-or-so stores in the U.S. and Canada had also been the victim of a malware attack. Cleaning up the mess won’t be cheap—Eddie Bauer said Thursday that it had arranged for all customers who made purchases and returns during this period to get free identity protection services from Kroll for the next year.

HEI Hotels reports point-of-sale terminals breach

CSO | 8.15.16

HEI Hotels & Resorts has reported a possible compromise of payment card information at its point-of-sale terminals, the latest in a string of attacks on such systems at hotels, hospitals and retailers. The company, which manages close to 60 Starwood, Hilton, Marriott, Hyatt and InterContinental properties, said it appears that malicious software was installed on the payment processing systems at certain properties, with the aim of harvesting the card data as it was routed through the systems. The compromise may have possibly affected the personal information of some hotel customers who made payment card purchases at point-of-sale terminals, such as food and beverage outlets, at certain HEI managed properties.

UnionPay Mobile QuickPass Debuts in North America

PR Newswire | 8.16.16

It is announced by UnionPay International today that a number of daily-spending merchants in Canada start to accept UnionPay mobile QuickPass, which marks the debut of this innovative service in North America. Previously, UnionPay mobile QuickPass has been accepted at over 220,000 POS terminals in Hong Kong, Macau, Taiwan, South Korea, Singapore and Australia. The merchants accepting mobile QuickPass this time are mainly restaurants, hotels, retail outlets, supermarkets, and convenient stores. Consumers can pay with their UnionPay QuickPass chip cards or mobile QuickPass-enabled smartphones at the contactless terminals in these merchants.

Phillips 66, Conoco Gas Stations Will Soon Accept Chase Pay | 8.17.16

By the end of the year, Chase Pay will be accepted at Phillips 66, 76 and Conoco branded gas stations across the United States. Phillips 66 is the latest merchant to accept Chase Pay, which rewards Chase customers for using its secure payment app. Chase currently has more than 90 million consumer credit and debit card accounts, and nearly 24 million customers use the Chase mobile banking app. To install the systems necessary to accept Chase Pay, Phillips 66 has also joined with Houston-based P97 Networks, Inc., which provides the mobile payment infrastructure. This partnership will allow customers to make purchases through the My Phillips 66, My 76 and My Conoco mobile apps.

Australia denies banks interim approval to jointly negotiate with Apple on payment apps

Reuters| 8.18.16

Australia's anti-trust regulator on Friday said it would not grant the country's three biggest banks interim approval to collectively negotiate with Apple Inc to install their own electronic payments applications on iPhones. Australia's three biggest banks, including the number one lender National Australia Bank (NAB), last month lodged a joint application seeking permission to negotiate as a bloc from the Australian Competition and Consumer Commission (ACCC). The ACCC said that its decision not to grant the banks the interim ruling was not indicative of whether the full ruling, expected in October, would be successful or not.

EMVCo streamlines approval process for mobile payment devices

Finextra | 8.17.16

Technical body, EMVCo, now provides formal industry approval to confirm that contactless mobile payment-enabled devices can operate seamlessly with EMV® Level 1* approved payment acceptance terminals. The new approval process incorporates Level 1 tests traditionally managed by the individual payment systems, bringing efficiencies to the process and reducing time to market. EMV Contactless Mobile Payment Type Approval covers both secure element (SE) and host card emulation (HCE) technologies.

Discover Card Ranked Highest in Customer Satisfaction for Third Straight Year by J.D. Power

Discover | 8.18.16

For the third straight year, Discover ranked highest for credit card customer satisfaction among U.S. credit card companies by J.D. Power. Discover received a total of 827 points out of a possible 1,000, according to the J.D. Power 2016 U.S. Credit Card Satisfaction StudySM, outpacing the industry average by 31 points. “This recognition by J.D. Power for the third consecutive year inspires us because it comes from our cardmembers,” said David Nelms, chairman and CEO of Discover. “Across the company, our employees train hard to continue to deliver the best possible value and experience to our cardmembers. This award is a credit to their excellent work and dedication.”

RelatedAmerica’s Love of Credit Cards at an All-Time High

Record Investment In Fintech Is Nothing Exciting, It's Expected

Forbes | 8.17.16

The past six months of 2016 were a record high for fintech investment. And for the first time ever, Asia has become the #1 market in terms of the amount invested.However, this is trivial. Such headlines as, “Last month/quarter/six months were a record high for fintech investments,” are suitable only for media. From the market perspective, fintech (like any other new and fast growing industry) is growing at the exact rate it should be. But if it stops doubling every year and slows down its growth or starts to grow four times faster, then it’s worth writing about.

RelatedBanks play Growing Role in Funding Fintech

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

Bloomberg | 8.18.16

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart. Blockchain, the ledger software that makes the digital currency possible, is too rigid to gain wide adoption, he wrote in an essay titled “The Subtle Tyranny of Blockchain.” The technology’s backers think it can revolutionize a wide range of industries including finance, international trade and health care. But tweaking the software -- as will inevitably be necessary as pioneers bring it to new areas -- requires consensus from a huge collection of software developers and so-called miners who make up the bitcoin network.

Singapore makes cashless payments push

Finextra | 8.19.16

Singapore is set to introduce a payments system similar to the UK's Paym, which will let people send money using only recipients' mobile numbers, as part of a concerted effort to wean the city state off of cash. In 2014 Singapore was one of the first countries in the world to build a 27/7, real-time interbank fund transfer system, called Fast. However, cash in circulation is 8.8% of GDP, compared to 4.4% in Australia and 2.12% in Sweden. Nearly 13 cheques per person were written in the country in 2014, compared to seven in Australia and effectively none in Sweden.

Walmart’s e-commerce growth starts accelerating just in time for its deal

Recode | 8.18.16

After five straight quarters of decelerating e-commerce growth, Walmart’s online business increased in the company’s second quarter. Walmart’s global e-commerce business grew 11.8 percent year over year in the quarter, up from 7 percent in the previous quarter. The online business is still growing slower than it was a year ago, but Walmart will take it. The earnings report comes 10 days after Walmart announced its plan to purchase the startup for $3.3 billion in a blockbuster deal that will see Jet CEO Marc Lore take oversight over the business unit. The acquisition is expected to close later this year and dilute Walmart’s annual earnings per share by five cents, in part due to “expected operating losses,” the company said in scripted earnings remarks.

EMV: A Card Expert Foiled at the Point of Sale

Brian Riley | 8.18.16

The US EMV liability shift occurred in November and though most banks re-carded their accounts, there are still pockets of merchants that toil with card acceptance using the global chip standard. Last week, I was in Bed, Bath and Beyond (Tampa, Florida) to refill a CO2 cartridge for a Soda Stream device that we use in our home. I saw the woman in front of me get declined at the point of sale and the look of despair showed her frustration. She was using a Bank of America Visa Debit and assured the clerk that there was plenty of money in her account and there should be no issue. The purchase as only $56, and she protested. The sales clerk told her to forget about inserting the card, Bed, Bath and Beyond was having chip issues with their new system but she could trick the system by falling back on a swipe. She asked what “falling back on a swipe” meant and I whispered, “just swipe your card”

ACI Worldwide integrates Ethoca Alerts for payments gateway

Banking Technology | 8.17.16

ACI Worldwide will integrate Ethoca’s service, Ethoca Alerts, into its UP eCommerce Payments solution, making it available to payment service providers (PSPs) worldwide. The integration gives PSPs, acquirers, processors and their merchant customers a means to “bolster” their fraud defences with card issuer-confirmed fraud and customer dispute data. Keith Briscoe, chief marketing officer, Ethoca, says the integration makes Ethoca Alerts “easily available to more than 130 payment service providers and thousands of their merchants”. ACI says Ethoca Alerts gives merchants an early warning on confirmed fraud and customer dispute transactions, allowing them to resolve cardholder complaints before they reach the chargeback stage.

In the Bitcoin Era, Ransomware Attacks Surge

The Wall Street Journal | 8.19.16

One evening in April, Dave Winston stood in a convenience store in suburban Charlotte, N.C., uneasily shoving $20 bills into a slim automated-teller machine unlike any he had ever seen. He was buying bitcoin, a digital currency unknown to him a few hours earlier, before hackers took over his computer. Mr. Winston, crew chief with the Circle Sport-Leavine Family Nascar race team, is among a growing number of victims of a pernicious type of malicious software called ransomware, which has earned millions of dollars for cybercriminals by encrypting computer files and holding them hostage.

Sage employee arrested over data breach

Financial Times | 8.17.16

The data breach that hit Sage Group may have been conducted by an employee of the business and not external hackers after a 32-year-old worker from the company was arrested at Heathrow. The City of London Police said they had detained a female employee at the airport on suspicion of conspiracy to defraud.The Sage incident follows the larger cyber attack on TalkTalk last year that affected 156,000 customers and led to questions over the strength of Britain’s corporate cyber-defences. Some companies have said they repel hundreds of thousands of cyber attacks every day from external sources.

Confidence among U.S. home builders up amid job growth, low interest rates

The Washington Post | 8.15.16

Confidence among U.S. home builders climbed in August as steady job growth and low interest rates boosted prospects for the residential real estate market in the second half of the year, according to industry group data released Monday. The National Association of Home Builders/Wells Fargo said the builder sentiment gauge rose to 60 from a revised 58, the data showed. Readings greater than 50 indicate that more respondents reported good market conditions.

Fed Officials Split in July on Whether Rate Hike Needed Soon

Bloomberg | 8.17.16

Federal Reserve officials were divided in July over the urgency to raise interest rates again, with some preferring to wait because inflation remained benign and others wanting to go soon as the labor market nears full employment. Such divergence in views, as shown in minutes of the central bank’s July 26-27 meeting issued Wednesday, means officials are likely to need more concrete evidence that inflation is picking up and economic growth is strengthening before deciding that an increase in borrowing costs is justified. Investors will listen closely for additional clues on timing when Fed Chair Janet Yellen speaks Aug. 26 at an annual symposium hosted by the Kansas City Fed in Jackson Hole, Wyoming.

TSYS extends payments agreement with Swisscard

Finextra | 8.18.16

TSYS (TSS) today announced it has extended its payments agreement with Swisscard AECS GmbH to continue processing the company’s consumer credit and commercial card portfolios on the TS® platform, as well as to provide other payment services. Swisscard AECS GmbH is a joint venture between Credit Suisse AG and American Express. Swisscard AECS GmbH is the only company in Switzerland to offer the world’s leading credit card brands — American Express, MasterCard and Visa — from a single source. Customers managed by Swisscard AECS GmbH have the largest choice of credit card products on the Swiss market.

Revel Systems Powers Intuit QuickBooks POS for Salon and Grocery

Business Wire | 8.15.16

Revel Systems, the world's leading iPad Point of Sale management solution for brick-and-mortar retail, food businesses and more, today announced its continued partnership with Intuit QuickBooks Point of Sale to launch Salon and Grocery vertical solutions. Following the success of QuickBooks Point of Sale for both Retail and Restaurants – which are products powered by Revel Systems – Intuit expands its iPad POS offering to two new verticals as a result of increased demand from salon and grocery store owners and operators looking to stay competitive by incorporating the tools and technology they need in order to start, run and grow their small business.

PNC Adds Support for Microsoft Wallet

American Banker | 8.15.16

PNC Financial Services Group has expanded its support of mobile wallets to Microsoft devices. Customers of the $350 billion-asset bank can now store their consumer and small-business debit and credit card details to their Microsoft Wallet to make contactless payments anywhere where Near Field Communication is enabled, PNC confirmed Monday. The Pittsburgh company began testing the program with volunteer users of Windows 10 Mobile devices on July 26 and completed its rollout to all bank customers on Aug. 9, according to Alan Aldinger, a PNC spokesman.

Shift4 Announces U.S. EMV Certification with TSYS

PR Newswire | 8.17.16

Shift4 Corporation, provider of the DOLLARS ON THE NET payment gateway, announced today it has completed U.S. EMV certification with payment processor TSYS. Shift4's certification brings merchants unrivaled flexibility along with the ability to securely process EMV chip cards through its comprehensive payment gateway solution.

BluePay partners with CardFlight to offer EMV mobile processing

Mobile Payments Today | 8.15.16

BluePay, a merchant account provider dedicated to delivering secure payment technology, has announced the availability of EMV mobile processing using Cardflight's point-of-sale product, SwipeSimple. SwipeSimple is an out-of-the-box mobile processing platform with a cloud-based inventory and item-tracking, and a reporting portal that is intended to help merchants run their businesses, according to a press release. The package includes an EMV chip card reader compatible with current Apple or Android devices, along with iOS and Android applications accessible in the App Store and Google Play Store. "BluePay is invested in the welfare of our merchants. It is our top priority to provide the most advanced payment security methods to maintain their trust and business, and in turn, their customers find value in this, too.

China's Alipay deepens push into Europe with Ingenico partnership

Reuters | 8.18.16

Ingenico Group has signed a deal with Alipay, China's biggest online-payments platform, that will allow Chinese consumers to use the mobile payment app widely across Europe, the French company said on Thursday. The agreement, signed on Wednesday, marks an opportunity for Alipay, a unit of Chinese e-commerce giant Alibaba, to deepen its mobile-payment push into Europe. "With this partnership, Aliplay will be embedded into Ingenico's in-store payment gateway," Ingenico said in a statement.

Equinox Payments teams with NCR to launch EMV-certified POS series

The Green Sheet | 8.16.16

Equinox Payments (“Equinox”), a leading provider of payment terminals, applications and support services, and NCR (NYSE: NCR), a global leader in omnichannel solutions, today announced the availability of a robust payment solution that helps increase security and quickly enables EMV-certified technology in their retail point-of-sale (POS) systems. The Equinox L5000 series payment devices are certified on NCR’s Connected Payments platform – a powerful SaaS payment solution – eliminating the need for retailers and VARs to go through the complex and lengthy EMV Level 3 end-to-end certification process. Customers with existing L5200/L5300 devices can enable EMV immediately via NCR’s Connected Payments platform.

Apple Pay rolling out to all Chick-Fil-A locations this Friday

9 to 5 Mac | 8.17.16

As Apple Pay continues to expand to more banks in the United States and around the world, it’s slowly coming to more retail locations, as well. Next on the docket for Apple Pay support appears to be Chick-Fil-A, according to a tweet from the restaurant chain. Last year, it was reported that Apple Pay support was coming to Chick-Fil-A locations around the country, but the rollout never fully began, though a handful of users have been able to use the service sporadically. According to today’s tweet, however, Apple Pay will be accepted at all Chick-Fil-A locations as of this Friday, August 19th. The mobile payment platform will be supported in-store and in the drive thru.

USA Technologies SVP Duska earns 2016 women of IoT award

The Green Sheet | 8.16.16

a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, is proud to announce that Maeve McKenna Duska, SVP of Sales and Marketing, has been recognized as part of the first annual 2016 Women of IoT in Marketing Award from the editors of Connected World magazine. This new list celebrates the women responsible for getting the word out on the latest and greatest advancements in the connected world. The award acknowledges Ms. Duska for her creative approach to marketing and communications, including strategic campaigns that have enhanced public relations, customer service, and sales for USAT.

Mastercard Cardholders Support Stand Up To Cancer by Raising $4 Million during Annual Dine Out Campaign

Mastercard | 8.18.16

This summer, Mastercard cardholders came together for a great cause showing once again that the time you spend dining with family and friends is truly priceless. For the seventh consecutive year, Mastercard collaborated with Stand Up To Cancer® and invited cardholders to give back through the simple act of dining out and share their #Reasons2StandUp. During the campaign period this summer, Mastercard made a donation to SU2C every time cardholders spent $10 or more for a qualifying meal using their Mastercard card. Today, Mastercard announced that thanks to its cardholders, it reached its goal, this year, of raising $4 million for Stand Up To Cancer (SU2C) through its annual Dine Out campaign.

Bank Audi and Verifone Partner to Enable Retailers in Lebanon with Cashless Payment Solutions

Verifone | 8.17.16

Lebanon is emerging as one of the Middle East’s leading markets introducing innovative cashless payment solutions. As part of the country’s retail infrastructure upgrade, Verifone (NYSE: PAY), a world leader in payments and commerce solutions and Bank Audi, Lebanon’s largest bank, will provide thousands of merchants with point-of-sale (POS) devices designed to bring new payment and commerce capabilities to the country’s expanding retail market. “We are delighted to offer the new and easy to install Verifone devices that enable our merchants to benefit from contactless and mobile payment acceptance,” said Randa Bdeir, Group Head of e-Payment Solutions and Card Services at Bank Audi.

First Data Taps Ivo Distelbrink to Lead Asia Pacific Region

First Data | 8.17.16

First Data, a global leader in commerce-enabling technology and solutions, announced today that Ivo Distelbrink will join the company to lead its business in the Asia Pacific (APAC) region. Reporting to Chairman and CEO Frank Bisignano, Distelbrink will be based in Singapore and will also serve on First Data’s Management Committee. “I am delighted to welcome Ivo to the First Data team as he prepares to lead our business in APAC, where we see significant growth opportunities for First Data,” said Bisignano. “With more than 20 years of global banking experience, coupled with extensive regional knowledge, Ivo is the right leader to take advantage of emerging industry trends in APAC, including the continued shift to eCommerce and mobile payments.”

Boku & Google team up for carrier billing on Google Play in Lithuania

Finextra | 8.19.16

Today Boku is announcing an expansion of their partnership with Google and Bite to bring carrier billing as a payment option for all purchases made on Google Play. Eligible purchases include: apps, in app purchases, games, music, movies and books. Bite is Lithuania’s 3rd largest cell phone carrier, and Lithuania’s low card penetration make it a perfect candidate for Boku and Google to team up and provide carrier billing as a payment option in Google Play.

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