NF Edition #500 - 4/08/16
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The Strawhecker Group's 500th Edition of NewsFilter
It is hard to believe TSG has been publishing NewsFilter for over 9 years. Over those 500 weeks we have shared over 15,000 articles related to the ever-changing Payments Industry. From interchange to consolidation, data breaches to EMV, and mobile payments to bitcoin, the industry continues to evolve...as does TSG's NewsFilter. To celebrate our 500th edition, we have revamped NewsFilter to deliver a more modern, crisp, reading experience. In addition, NewsFilter is now more mobile-friendly than ever. Enjoy!

Subscribers: You are the reason we have reached this milestone! Thank you for your continued support, feedback, accolades, and readership. We will continue to evolve with the industry and provide you with the most relevant content to help you succeed in the Payments Industry.

- Andrew Nuss & Mike Strawhecker

Note: While migrating our email system several changes took place. If you don't believe you should be receiving this communication, feel free to unsubscribe at the bottom of the email.


Highlights This Week Include:

ETA: MEDIA CAN'T GET ENOUGH OF NEW CONSUMER PAYMENTS TECHNOLOGIES 
ETA | 4.06.16

On Tuesday, ETA CEO Jason Oxman was featured everywhere from Spokane, Washington to Greensboro, North Carolina, discussing the latest in payments technology. With ETA member technology, Oxman was able to demonstrate new ways to pay and explain where he sees the future of money going.

Related:

Money2020 Europe - Here's What Everyone Was Talking About
Business Insider | 4.08.16

Fintech is still "cool" but some of the more "Emperor's New Clothes" aspects of the industry are being exposed. No longer can you take a snazzy app to a bank or VC and bag £10 million. Now you need to show a bit of traction. What this means, in practice, is valuations are coming down in funding rounds. Execution is now more important than the idea. Proof of your vision working is more important for those looking to part with their investment cash.

Fintech Firms Are Taking On the Big Banks, but Can They Win?
The New York Times | 4.06.16

Banking has long been viewed as one of the last traditional, old-school, stuck-in-the-past industries. When you think of banking, you might still think of wood-paneled walls and pinstripe suits. That impression may increasingly be misguided. If you spend more than 15 minutes with any senior executive of a large bank these days, it is almost impossible not to hear the phrase “fintech” uttered. It is usually spoken with a sense of optimism, but sometimes with a sense of dread.

Related: Fintech's $138 Billion Opportunity

Venmon's Secret Sauce: PayPal CEO on the Future of the Fast-Growing Social Payments App
GeekWire | 4.04.16

On its surface, Venmo is a mobile app used by thousands of users each day to transfer money. But aside from being a convenient way to pay one another, the PayPal-owned company is seeing explosive growth for a completely different reason. That’s according to PayPal CEO Dan Schulman, who spoke at the inaugural Microsoft Envision conference in New Orleans on Monday during a fireside chat with Peggy Johnson, Microsoft’s executive vice president of business development.

Why Costco's Migration from Amex to Visa Is a Big Blow to Wal-Mart
The Street | 4.06.16

After ending its 16-year marriage with American Express for its co-branded credit cards, Costco Wholesale will start a new relationship with Citigroup and Visa on June 20 to launch a new co-branded card. The new alliance promises to deliver more value to customers while keeping the transfer seamless. It also positions Costco as one of the most appealing investments right now in an otherwise dangerous broader market. With this new deal, Costco is giving the chills to peers like Wal-Mart, which has taken the cue and is introducing its own card-based rewards program.

'If a Bank Did That, We'd Be Taken to the Woodshed'
American Banker | 4.07.16

Richard Hunt, president and CEO of the Consumer Bankers Association, predicts that most fintech startups — 95% by his estimate — won't make it. But that doesn't mean he isn't worried about the threat to banks posed by such firms. "The other 5% are the ones I'm afraid of," Hunt said in an interview at Retail Banking 2016. "The ones that are going to make it." Banks have argued that fintech firms need to be regulated more like banks, but there are signs that regulators are becoming more interested in the space.

Jamie Dimon Brags About How Mighty JPMorgan Is
CNN Money | 4.07.16

If there was a repeat of the Great Recession, Dimon says JPMorgan Chase has amassed enough capital to absorb the combined losses of America's 31 largest banks.The Federal Reserve's stress tests estimate that JPMorgan alone would lose $55 billion in a worst-case economic situation. But the government has forced big banks to stock up on lots of capital. JPMorgan now has $350 billion of loss-absorbing resources. That means the banking giant actually has enough capital to swallow the losses of the next 30 banks, which is estimated at $167 billion.

Why Contextual Commerce Is The Next Big Thing
PYMNTS | 4.04.16

In January of this year, I wrote a piece in which I said there were six things that would shape the direction of payments and commerce in 2016. Third on that list was “contextual commerce.” I argued that making buying seamless inside of environments that consumers used regularly for other reasons would drive innovation for those environments —and for the third parties that enabled those new commerce experiences. As its name implies, commerce then happens because there’s an interest and an intent to buy, along with a context that makes doing so very natural and easy.

New Amazon Payments Unit Ups Ante Vs. Rivals PayPal, Square 
Investor's Business Daily | 4.04.16

Mighty e-commerce firm Amazon.com is launching its payments service on several platforms that cater to small and midsize businesses, the company said Monday. Called the Global Partner Program, the new business will allow firms that build e-tail storefronts on the platforms Amazon is partnering with to integrate the “Pay With Amazon” feature. Pay With Amazon aims to reduce any friction when checking out online. By logging in with Amazon, shoppers don’t have to enter a 16-digit credit card number and other billing details.

Barclays Finally Adds Support for Apple Pay in the UK
The Verge | 4.05.16

Apple Pay launched in the UK last summer, and made relatively swift progress adding banks. However, there was one notable holdout: Barclays, the country's second biggest bank. Today the company has announced it's adding support for Apple Pay. Barclaycard holders will be able to add their debit or credit cards to the app, and then pay using their iPhone, Apple Watch, or iPad at the UK's 400,000 or so compatible locations. You know how it works.

Circle Seeks To End Reliance On Bitcoin As UK Grants First E-Money License To Digital Payments Company
International Business Times | 4.06.16

Circle, a bitcoin startup that is now focusing on social payments, has become the first digital currency company to be granted an e-money license by the U.K. government highlighting its desire to make London a center for blockchain and virtual currency development. Britain’s Treasury called the move a “major milestone” in its push to make London the Fintech, capital of the world. Britain’s top financial regulator, the Financial Conduct Authority, worked closely with Circle to make it the first digital currency company in the world to be granted an e-money license.

Visa Europe Reports "Significant Growth" in Higher Value Contactless Transactions
NFC World | 4.04.16

The increase in the UK contactless card payment limit from £20 to £30 has had “a transformative effect” on consumer spending habits, according to Visa Europe, with contactless transactions over £20 seeing an average monthly growth rate of 19.1% between October 2015 and March 2016 — more than twice the average monthly growth rate of 8% for contactless transactions under £20.

Agile Development Is Reshaping Tech at Banks Like Chase and BBVA
BTN | 4.05.16

When JPMorgan Chase recently launched a new website, Gavin Michael, head of digital for consumer and community banking, credited much of the success and speed (it took 18 months) of the project to the bank's recent migration to agile development. Last year, when BBVA Compass opened a new operations center in Birmingham, Ala., it too signaled a commitment to agile development, and showed off a space redesigned with agile pods. Tangerine Bank and Capital One have also spoken of shifting to agile methods.

Mobile Payments Proving Popular with Australians
Finextra | 4.05.16

National Australia Bank says uptake of its new mobile payment service is exceeding expectations, with 18,000 customers downloading the NAB Pay app in the first month after launch. The bank says Australians are taking quickly to the new way to pay, with customers making more than 60,000 purchase transactions since the service launched earlier this year.

Faster Payments: Mitigating the Fraud Risks 
Bank Info Security | 4.07.16

The Federal Reserve will carefully scrutinize the security components of proposals it's receiving this month for technologies that can be used to enable faster payments in the United States. That's because a key issue in moving to faster payments is mitigating the greater risk of fraud. Next year, the Fed will issue a report designed to help the financial services industry identify what technology gaps still need to be filled to make faster payments a reality. That report will stop short of endorsing any particular technical approach. But the Fed plans to publish all the technology proposals it receives.

Rising Card-Not-Present Fraud Drives Significant Changes to Consumer Online Shopping Behaviors Resulting in Silent Revenue Killers for Financial Institutions and Merchants
Business Wire | 4.06.16

As the U.S. continues transitioning to EMV credit and debit cards, card-not-present (CNP) fraud has taken root, growing rapidly and targeting e-commerce sales. As the landscape alters, a key question is how increasing fraud impacts consumer behaviors. CvvPlus – an online fraud prevention solution - provided by Tender Armor, in partnership with Sparks Research, released a report titled CNP FRAUD CONSUMER IMPACT: ANXIETY THAT REDUCES CREDIT AND DEBIT CARD USAGE. The study delves into the lingering aftermath of CNP fraud regarding shifting consumer shopping behaviors, consumer security concerns, payment card usage, and financial institution (FIs) fraud prevention recommendations.

NACHA: Most Top Financial Institutions Are on Track To Offer Same-Day ACH This Year
Digital Transactions | 4.05.16

Automated clearing house governing body NACHA says nearly all of the nation’s biggest financial institutions plan to originate same-day ACH payments this year. The January-February telephone survey of executives at 22 of the nation’s top 25 ACH originators found that 95%, which works out to all but one of the respondents, plan to offer same-day ACH origination services by year’s end. Under Herndon, Va.-based NACHA’s same-day ACH rule, banks and credit unions will be required to receive same-day ACH transactions beginning Sept. 23, 2016, but originating ACH payments, including same-day payments, is optional.

Sources: Trump Hotels Breached Again
Krebs on Security | 4.04.16

Banking industry sources tell KrebsOnSecurity that the Trump Hotel Collection — a string of luxury properties tied to business magnate and Republican presidential candidate Donald Trump — appears to be dealing with another breach of its credit card systems. If confirmed, this would be the second such breach at the Trump properties in less than a year. A representative from Trump Hotels said the organization was investigating the claims.“We are in the midst of a thorough investigation on this matter,” the company said in a written statement. “We are committed to safeguarding all guests’ personal information and will continue to do so vigilantly."

Latest Updates on Panama Papers Fallout
USA Today | 4.07.16

International fallout continues following Sunday's release of the Panama Papers, a massive leak of documents from a Panama law firm that helped political leaders, wealthy individuals and companies hide financial assets and dealings. Here are the latest developments. British Prime Minister David Cameron admitted Thursday that he profited from his late father's offshore investment revealed in the Panama Papers leak, according to British newspapers.

Related: 'Panama Papers' - 6 Security Takeaways

U.S. Job Marketing Firming Despite Anemic Economic Growth
Reuters | 4.07.16

The number of Americans filing for unemployment benefits fell more than expected last week, suggesting the labor market continued to strengthen despite tepid economic growth. Initial claims for state unemployment benefits declined 9,000 to a seasonally adjusted 267,000 for the week ended April 2, the Labor Department said on Thursday. "The persistently low level of claims should provide some reassurance that the economy is growing, even if that growth appears more sluggish that most would have hoped a few months ago," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.

Yellen Says U.S. Near Full Employment, Some Slack Remains
Bloomberg | 4.07.16

Federal Reserve Chair Janet Yellen said she continues to see some slack remaining in the U.S. labor market even as the economy shows “tremendous progress” following the financial crisis and the worst recession since the Great Depression. “We are coming close to our assigned congressional goal of maximum employment,” Yellen said Thursday in New York on a panel with three of her predecessors. Many measures of unemployment, she said, "really suggest a labor market that is vastly improved."

Global Payments Reports Third Quarter Earnings and Raises Annual Fiscal 2016 Outlook 
Business Wire | 4.06.16

“We delivered strong financial results for the quarter, accelerating growth across our key markets. We are especially pleased with our performance in North America and Europe, with sequentially higher adjusted net revenue growth in the United States direct channel and the United Kingdom,” said Chief Executive Officer Jeff Sloan. “We also grew margins in each region, highlighting solid execution.”

MasterCard Announces President, U.S. Issuers
MasterCard | 4.05.16

MasterCard today announced the appointment of Raj Seshadri as president, U.S. Issuers. In this new role, she will be responsible for managing and expanding the company’s partnerships with banks and credit unions across the U.S. market. “Raj brings a unique balance of analytical thinking and business-building creativity,” said Craig Vosburg, president, North American Markets.  “Her proven strategic, leadership and customer-oriented capabilities across multiple industries will help MasterCard continue to be a strong partner to our issuers in an increasingly dynamic payments marketplace.”

Alipay Expands into Europe
Finextra | 4.06.16

Chinese payments behemoth Alipay has used the Money2020 conference in Copenhagen to announce its official expansion into the European market. The platform, operated by Alibaba's Ant Financial Services Group, says the push into European markets will make it easiers for Chinese tourists to interact with Western merchants when transacting overseas.

ProPay Supports Samsung Pay
TSYS | 4.05.16

ProPayannounced today that it has added yet another payment acceptance option to its solution suite — Samsung Pay, an easy and secure mobile payment service. ProPay merchants who have the latest version of the ProPay JAKTM and mobile app can now accept payments from their customers who have Samsung Pay. Merchants can enjoy lower card-present rates and the security of a mobile payment service that encrypts the transaction at the time of tap or swipe.

Announcing Verifone Carbon – The New Center of Connected Commerce
Verifone | 4.04.16

Verifone unveiled Verifone Carbon– a beautiful, flexible and integrated POS that leverages powerful capabilities and applications to transform the checkout process into an experience merchants and consumers will love. Partnering with Danish beverage bar, Joe & the Juice, Verifone Carbon is being showcased this week at Money20/20 Europe where guests can experience Verifone products and services at stand #D6.

North American Bancard Partners with Womply to Offer Insights
PR Web | 4.04.16

North American Bancard, an award-winning leader in payment processing, and Womply have partnered to offer merchants Insights, a platform that gives merchants a powerful new tool offering advanced analytics, online reputation management, and more. Insights is an innovative new platform that helps businesses track their revenue, protect their online reputation, provide in-depth analysis of their customers, and simplify the process of running their businesses.

Related: iPayment, Inc. Announces Partnership with Womply

Cardholder Alerts Now Available to TSYS Clients in Europe
Business Wire | 4.06.16

TSYS announced it will provide the payment providers it services across Europe with TSYS AlertsSM, a solution that helps cardholders monitor their accounts and prevent fraudulent activity with real-time, on-demand information using cardholder-driven communication preferences that include push notifications, SMS text messaging, voice messages and email.

Pivotal Payments Selects TANGO for Processing In-House Payments
Pivotal | 4.06.16

Lusis Payments, a global innovator of mission-critical payments software, announced today that Pivotal Payments, a leading provider of technology-driven global payment processing solutions, has licensed its TANGO platform to process point-of-sale (POS) payments. Pivotal Payments has been providing innovative merchant services for over a decade, and delivers efficiency and profitability to over 90,000 clients across a wide range of business verticals.

CardFlight Releases New Data Showing Trends on EMV Chip Card Usage in the United States
CardFlight | 4.07.16

CardFlight, a mobile point of sale (POS) technology provider, released the latest edition of their EMV Migration Tracker with never before published data and trends covering EMV chip card usage in the U.S. The report shares insights on EMV chip card use among card holders and merchants in the United States since October 1, 2015 liability shift.

EVO Payments International and AEVI join forces to enhance payments across Europe
EVO | 4.05.16

EVO, a leading acquirer and payment service provider in North America and Europe, and AEVI, provider of global ‘face-to-face’ payment transaction solutions and a marketplace for B2B apps, today announced their launch of their strategic platinum partnership to extend EVO’s access, capabilities and performance in the Pan-European market.

Sage Payment Center Extends the Benefits of Embedding Payments Management Into an Accounting System
MarketWired | 4.05.16

Sage, the market leader for integrated accounting, payroll and payment systems, today announced Sage Payment Center, an in-product solution for small and medium businesses using Sage 50 and Sage 100 accounting products. Sage Payment Center provides an easy way for Sage 50 and Sage 100 customers to apply for, activate and use the credit and debit card acceptance capabilities embedded into their accounting software.

Adyen Launches RevenueAccelerate
Adyen | 4.07.16

Today at Money 20/20 in Copenhagen, Adyen, the payments technology company, launched RevenueAccelerate, a data-driven suite of automated tools   designed to significantly increase credit card approval rates globally. This is another step forward for Adyen in outperforming legacy payments systems, and unlocking new growth opportunities for its merchants.

Klarna Connects E-Retailers To Their Leading Online Checkout Using Modo's Coin® Operated Digital Payments Hub
PR Newswire | 4.05.16

Modo chose the inaugural Money20/20 Europe event to announce their strategic partnership with Klarna, under which Modo will provide its digital payments hub to accelerate implementation of the Klarna checkout solution for e-retailers worldwide. Modo is a digital payments hub that takes monetary value from just about any source, and can deliver it to just about any destination without changing existing infrastructure.

Groundbreaking New TNS Message Translation Solution to Streamline Payments Industry
TNS | 4.05.16

Merchants, ISOs, payment gateways and terminal providers around the world are set to gain efficiencies and make substantial savings thanks to the launch of TNSConnect2All, a new global message translation conversion service, from Transaction Network Services (TNS). TNSConnect2All provides a single messaging specification that can be readily adapted to the unique interfaces of multiple payment processors.

CAN Capital Hits $6 Billion Milestone in Delivering Access to Working Capital for Small Businesses
PR Newswire | 4.07.16

CAN Capital, Inc., market share leader in the alternative small business finance space, announced that it has reached the milestone of providing small businesses with access to more than $6 billion of working capital, helping over 70,000 small business owners buy equipment, purchase inventory, hire seasonal help and open new locations.  During its 18 years in business, CAN Capital has provided access to more working capital than any other company in the space.

Bank of America Merchant Services Expands to Europe with Launch of BofA Merrill Lynch Merchant Services (Europe) Limited
EON | 4.04.16

Bank of America Merchant Services, LLC, a leading electronic payments processor in the United States, announced today its expansion to Europe and creation of a new London-headquartered unit, BofA Merrill Lynch Merchant Services (Europe) Limited (BofAML Merchant Services). BofAML Merchant Services will facilitate e-commerce, card-present and card-not-present transactions for clients looking for international payment services, in conjunction with existing services offered through BofAML’s transaction banking platform.

FIDO Alliance Announces Over 150 Biometric and Second-Factor Authentication Products Now Certified
Visa | 4.04.16

More than 150 products are now FIDO® Certified, up 50 percent in just one quarter, the FIDO Alliance announced today, giving service providers a diverse and flexible range of options to reduce their reliance on passwords and deploy FIDO standards for simpler, stronger authentication of online services. "Fifty percent growth in certified products in just three months is further evidence that the FIDO specifications are increasingly accepted as the new standard for strong authentication technology," said Brett McDowell, executive director of the FIDO Alliance.

Simple Moves Customer Accounts to BBVA Compass Open API Platform
FierceFinanceIT | 4.05.16

Simple, the mobile bank acquired by BBVA Compass in 2014, will move all its customer accounts to BBVA's Open API platform later this year. The move will make Simple the first actual user of BBVA's Open API platform in the United States. Simple has used The Bancorp Bank as its banking partner since its first days as a startup. Since the time of the acquisition, it was assumed that Simple would eventually move its accounts to its new parent company. What precipitated the move is that BBVA Compass recently moved its Open API platform in the U.S. out of beta.

Ingenico ePayments and YouPass Work Together Exclusively to Provide Gamers New Payment Options
Let's Talk Payments | 4.03.16

Ingenico ePayments, an Ingenico Group company announced a few days back that it entered into an exclusive partnership with the digital card company, YouPass, to provide gamers with new payment options that meet their growing demands. YouPass, a company that has enjoyed enormous growth over the past year, understands that they need a payment service provider to support their ambitions for expansion into new products and new markets around the world, and they are particularly impressed by Ingenico ePayments’ extensive knowledge and reach within the gaming industry, as well as their customer-oriented service.

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