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NF Edition #515 - 7/22/16
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Highlights this week...

Check Out TSG's Hottest New eReports

  • 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 Merchant Planning and Strategy Guide: This report (76 pages of detailed information) can act as a strategic tool at higher levels within your organization or can be leveraged to educate and arm front-line personnel such as sales teams when visiting clients who may be encountering EMV issues or be planning to migrate to EMV. Preview | Purchase

PayPal Strikes Partnership With Visa
The Wall Street Journal | 7.21.16

PayPal Holdings Inc. is coming to the checkout line. The online-payments provider has struck a deal with Visa Inc., announced Thursday by the two companies, that will make paying with PayPal an option when people pay in stores with their smartphones. It also will now be possible for users of PayPal’s popular mobile apps, including Venmo, to instantly withdraw money they get through the peer-to-peer payments service if they link it to their Visa debit cards.

Related: Visa/PayPal Have Finally Settled a Long-standing Feud

Dorsey's Square Starts Up UK Operation for First European Foray
Reuters | 7.19.16

Square Inc, the mobile payments company run by Twitter Inc CEO Jack Dorsey, has incorporated a business called Squareup Europe Ltd in Britain, registration documents show, lining itself up for what could be its first foray into Europe. Square, which is present in the United States, Canada, Japan and Australia, facilitates payments between customers and businesses with a credit card reader that turns any mobile phone into a payment terminal.

ETA Expands Focus to Underserved Sectors
The Green Sheet | 7.22.16

Growing adoption of mobile and web-based technologies to deliver services has highlighted the need for worldwide access to digital technologies. This is particularly true in developing countries lacking adequate connectivity and infrastructure. How Fintech is Addressing the Needs of the Underserved, published July 21, 2016 by The Electronic Transactions Association shares solutions designed by member companies to address the needs of underserved populations. The global trade association’s white paper details how technical advancements can potentially benefit underserved consumers and their communities through a range of “safe, convenient, and rewarding payment solutions and lending alternatives.” 

Mastercard Buys Most of Britain’s VocaLink for $920 Million
Mastercard | 7.21.16

Mastercard Inc. agreed to buy a controlling stake in VocaLink Holdings Ltd., the payments processor that handles most payroll and household bill processing in the U.K. Mastercard will pay about 700 million pounds ($920 million) for 92.4 percent of the London-based firm, the acquiring company said Thursday in a statement. VocaLink’s existing shareholders, which include 13 banks and building societies, will retain 7.6 percent ownership and can receive as much as 169 million pounds more if performance targets are met.

Wal-Mart Canada Carries Out Its Threat To Ban Visa Card Acceptance in Ontario City
Digital Transactions | 7.18.16

Wal-Mart Stores Inc.’s Canadian unit on Monday stopped accepting Visa cards at its three stores in Thunder Bay, Ontario, carrying out the threat the retailer issued last month in its dispute with Visa Inc. over card-acceptance costs. A spokesperson at Wal-Mart’s Canadian headquarters in Mississauga, Ontario, as well as a manager at one of the Thunder Bay stores, confirmed to Digital Transactions News Monday morning that acceptance had indeed stopped, as Wal-Mart had said it would, on July 18. But the spokesperson says the two companies are talking.

Visa Reports EMV uptake in the US [Infographic]
Visa  | 7.21.16

There were 326.8m chip cards in the US as of the end of June 2016, exceeding the number of people who live in the country, Visa has reported. “The US added more than 100,000 chip-enabled merchant locations in June, bringing the total to 1.3m, or about 28% of the total merchant population,” the payment network says. “More than three-quarters of those chip-ready locations are small and medium-sized businesses.

EMV Group Rebrands to Go Beyond Chip Cards
ISO & Agent | 7.20.16

The industry-led EMV Migration Forum is changing its name and expanding its focus to accommodate the myriad changes that are happening alongside the move to chip cards. Now called The U.S. Payments Forum, it will address the challenges that retailers, acquirers, issuers, processors and technology companies face given the ongoing development of tokenization, contactless payments, mobile technology, point to point encryption and other digital technologies.

After 3 Weeks, Worldpay Still Fumbling Millions of Etsy Transactions
Tech Crunch | 7.20.16

Etsy users had another bad week as payment processor Worldpay continues to cause problems. Late last week, some Etsy users began reporting that they had experienced duplicate charges. The forum on Etsy for duplicate charges is approaching one thousand posts. In a statement, Worldpay admitted to causing the duplicate charges for Etsy users in its attempts to rectify the problem. “Ongoing technical work related to resolving this issue has resulted in a limited number of duplicate charges to Etsy customers.”

Apple Pay Says Bonjour to France and Nei Ho to Hong Kong
CNET | 7.19.16

Apple Pay has arrived in the land of boutiques, brasseries and Bordeaux wine -- France. Later Tuesday (US-time), Apple Pay also went live in Hong Kong. The French website for Apple's payments service now shows Apple Pay to be compatible with Mastercard and Visa credit and debit cards issued by Carrefour Banque and Ticket Restaurant as well as Banque Populaire and Caisse d'Epargne, an assemblage that includes France's second largest banking group (making up more than 20 percent of payment cards in circulation).

Pokémon Go Isn’t Just a Game; It’s a Commerce and Payments Machine
LTP | 7.21.16

Pokémon GO has become such a viral marketing phenomenon that it’s been overlooked as a lucrative business. After all, it took less than a day for Pokémon GO to become the most downloaded app in the US, Australia and New Zealand. But the app is also estimated to be making an average revenue per daily active user at $0.25, which is not only twice the average for casual games but outpaces Candy Crush Saga.

Related: All It Took Was Pokemon to Get People into Bank Branches

Coinbase is adding support for Ethereum
Tech Crunch | 7.21.16

Since Coinbase was founded in 2012, hundreds if not thousands of Bitcoin competitors (typically referred to as alt-coins) were created. But Coinbase ignored the noise and remained focused on supporting just one currency – Bitcoin. But today that changes, as Coinbase is announcing that they are adding site-wide support for Ethereum, a digital currency with a built in programming language designed to support and execute peer-to-peer digital contracts.

Report: New York Fed Fumbled Cyber-Heist Response
Bank Info Security | 7.22.16

"Inertia and clumsiness" at the Federal Reserve Bank of New York nearly led to one of the biggest cyber-heists in history being even worse. So says a new investigative report from Reuters that traces the theft of $81 million from the central bank of Bangladesh in February in what was one of the most audacious - and successful - cyber-heists ever. Bangladesh police, as well as the U.S. Department of Justice and the FBI, are continuing to investigate the heist.

Cici’s Pizza: Card Breach at 130+ Locations
KrebsonSecurity | 7.19.16

Cici’s Pizza, a Coppell, Texas-based fast-casual restaurant chain, acknowledged a credit card breach at more than 135 locations. The disclosure comes more than a month after KrebsOnSecurity first broke the news of the intrusion, offering readers a sneak peak inside the sprawling cybercrime machine that thieves used to siphon card data from Cici’s customers in real-time. In a statement released Tuesday evening, Cici’s said that in early March 2016, the company received reports from several of its restaurant locations that point-of-sale systems were not working properly.

The CFPB Turns 5 Today. Here’s What It’s Done (and What It Hasn’t)
TIME | 7.21.16

The Consumer Financial Protection Bureau turns five today. The agency, created in the wake of the financial crisis, was supposed to protect American consumers from the abuses of the financial industry after millions got burned by ill-advised mortgages. The idea—formulated by Elizabeth Warren, then an influential law professor, now a Massachusetts senator—was supposed to be simple: A new bureau to vet financial products the same way the Consumer Product Safety Commission vets toasters.

Related: Two-Thirds of Senate Calls for CFPB to Exempt Small Banks from Rules

Fintech Firms Hurt by Lack of Regulatory Clarity
American Banker | 7.18.16

The U.S. fintech sector is in danger. There is a real risk that financial innovation will fall between the cracks of what is already a convoluted system of regulation in this country. That is bad for everyone. It's bad for the innovators and the public, bad for existing institutions and even bad for the regulators themselves. Brexit may give the U.S. and other fintech centers some competitive breathing room as London struggles to maintain its fintech edge. The U.S., however, needs more than breathing room. It needs regulators to recognize the fragility of innovation. Simply integrating fintech into our current financial regulatory landscape would be a mistake. Our regulatory regime is too unwieldy.

Arrests Made in Taiwan ATM Swindle
Finextra | 7.18.16

Police in Taiwan have arrested three of the 16 men allegedly responsible for stealing more than $2.5m from ATMs earlier this month. One of the men, a Lithuanian, was arrested in northeastern city of Yilan after a local policeman recognised him eating in a local restaurant. the other two suspects, both Romanian, were arrested in Taipei. Taiwan police believe that the other 13 suspects, including two Russians, have left Taiwan.

Strong U.S. Home Sales, Low Layoffs Highlight Economy's Strength
Reuters | 7.21.16

U.S. home resales hit their highest level in nearly 9-1/2 years in June as low interest rates lured first-time buyers into the market and the number of Americans filing for unemployment benefits fell last week, underscoring the economy's strength. Although another report on Thursday showed factory activity in the mid-Atlantic region contracted this month, a surge in new orders and shipments suggested the setback was likely temporary.

IMF Slashes world Growth Forecasts Again on Brexit Curveball
CNBC| 7.19.16

The U.K's vote to leave the European Union (EU) has pushed the International Monetary Fund (IMF) to cut its world growth forecast for this year and next. In its World Economic Outlook, published on Tuesday, the IMF forecast global growth at 3.1 percent in 2016 — 0.1 percentage points down on its April forecast, 0.3 percentage points lower than its January estimate, 0.5 percentage points below its estimate from October 2015 and 0.6 percentage points down on its forecast from July 2015.

U.K. Retail Sales Fall Faster Than Expected in June
TheStreet | 7.21.16

U.K. retail sales fell faster than expected in June. Bad weather throughout the month was blamed for the fall in clothing and footwear sales. Retail sales, excluding petrol, fell 0.9% compared to May when they rose by  0.9%, figures from the Office for National Statistics show. Economists expected a 0.6% drop in June. Sales were up 3.9% in June from a year earlier. This was a decrease in growth compared with May, when sales rose 5.2% year-on-year. Economist had expected a 4.8% rise for the year-on-year sales.

American Express Q2 Earnings Jump, Helped by Costco Sale
ABC News | 7.20.16

American Express said Wednesday that its second-quarter profit jumped 37 percent, helped by the sale of its Costco credit card portfolio and increased spending on its namesake cards. AmEx sold the Costco portfolio to Citigroup, providing one-time after-tax gain of $677 million for the April-June quarter. The New York-based credit card company said it earned $2.02 billion in the period, or $2.10 per share. That was up from $1.47 billion, or $1.42 per share, in last year's second quarter.

MasterCard May Apply for China Payment License This Year
Yahoo! Finance | 7.22.16

MasterCard Inc hopes to apply this year to become a payment service provider in China after the government opened the market, but the company is still weighing whether to do so alone or with a partner, senior executives said on Friday. The world's most populous country is "pretty crucial" to its future, but MasterCard is still studying rules in China that would affect its business and is hammering out a business plan, Ann Cairns, president of international markets, told Reuters in an interview.

Discover Financial Services Reports Second Quarter Net Income of $616 Million or $1.47 Per Diluted Share
Discover | 7.19.16

Discover Financial Services reported net income of $616 million or $1.47 per diluted share for the second quarter of 2016, as compared to $599 million or $1.33 per diluted share for the second quarter of 2015. Net income included a non-recurring tax benefit of $44 million which contributed $0.11 to diluted earnings per share. “During the second quarter, we achieved loan growth within our target range and delivered strong profitability,” said David Nelms, chairman and CEO of Discover.

Visa Adds Refugee Olympic Athletes to Complete Team Visa Rio 2016 Roster
Visa | 7.20.16

Visa Inc. announced the full Team Visa roster for the Rio 2016 Olympic Games. With 60 athletes, it is the most expansive group of Olympic and Paralympic athletes that Visa has supported to date. Team Visa has grown by 62 percent since the last Olympic Games, with athletes representing a range of 26 sports, from diving and dressage to taekwondo and table tennis. Since the program began in 2000, Team Visa has aimed to provide athletes with the tools, resources and support they need to reach their highest potential, regardless of origin or background.

First Data Expands into Sports and Entertainment Industry with Bypass Collaboration
First Data | 7.18.16

First Data, a global leader in commerce enabling technology, and Bypass, an innovator in enterprise point-of-sale systems, are working together to deliver a modern, comprehensive payments solution for sports arenas and concert venues. This unique collaboration blends First Data’s innovative Clover family of point-of-sale devices and business management tools with Bypass’s revolutionary cloud-based software and back office management tools. The two companies have already collaborated to support major sporting events and concerts across the country. 

Global Payments Announces Support for Apple Pay in Hong Kong
Global Payments | 7.20.16

Global Payments Inc., a leading worldwide provider of payment technology services, is pleased to offer merchants in Hong Kong the ability to accept credit and debit card payments via Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that's fast and convenient. Global Payments' robust suite of payments solutions are fully enabled in Hong Kong, allowing in-store as well as iOS app merchants to offer their customers the convenience of paying quickly and easily with Apple Pay.

Moneris Delivers New Tools and Resources for Developers
Yahoo! Finance | 7.20.16

Moneris Solutions Corporation ("Moneris"), one of North America's leading credit and debit card processors, introduced new and improved resources for eCommerce and mobile application developers seeking payment integration tools. The Moneris Developer Portal provides easy access to information and tools businesses need to add payment capabilities to their applications. The Moneris Developer Portal complements Moneris Gateway, a payment processing platform that allows businesses to securely complete transactions.

KeyBank, PNC See Upside in GOP Convention Drama
American Banker | 7.21.16

It's been one hell of a Republican National Convention, complete with accusations of plagiarism and a hostile reception for a rival that refused to endorse Donald Trump, but two bank sponsors see it as an unqualified success in spotlighting their home area. Both KeyCorp and PNC sponsored the convention, a potentially risky move considering fears of possible violence and security issues due to protests in the area.

The California Bankers Association Selects Vantiv for Endorsed Partner Program
Vantiv | 7.21.16

Vantiv, Inc., a leading provider of payment processing services and related technology solutions for merchants and financial institutions of all sizes, today announced that it has been chosen by the California Bankers Association (CBA), one of the largest state banking trade associations, as its sole endorsed EFT processing partner. “We’re pleased to have been selected by an organization as established and successful as the CBA,” said Bill Hampton, senior vice president and general manager of financial institution services at Vantiv.

USAePay Announces CDE as New Key Injection Vendor
USAePay | 7.18.16

Industry leading payment gateway USAePay and CDE recently partnered to further secure merchant payment processing through contactless EMV and P2PE solutions. Offering a complete EMV solution, the Key Injection Facility (KIF) service offered by CDE acts as an integral part of encrypting the PaySaber MP200 contactless EMV device.

Elavon and Capital Bank Sign Exclusive Payments Processing Deal
Elavon | 7.18.16

Elavon, a leading global payments provider and subsidiary of U.S. Bancorp, and Capital Bank Financial Corp., a leading southeastern regional bank, have signed an expanded multi-year agreement for payment processing that enhances a relationship that began in December 2005. Capital Bank will continue to use Elavon’s innovative payments technology exclusively.

Apriva to Speak on Mobile Commerce at MidWest Acquirers Association Conference
Apriva | 7.19.16

Apriva, the leading provider of secure end-to-end wireless transaction processing solutions, today announced that they will be sponsoring, exhibiting, and speaking at the 14th Annual MidWest Acquirers Association (MWAA) Conference, taking place July 26-28, 2016, in Cleveland, Ohio. Stacey Finley Tappin, the company’s senior vice president of sales and marketing communications, will be speaking on a panel that will discuss today’s challenges and what’s ahead for mobile commerce. 

Verifone Launches Curb in Five New U.S. Cities
Verifone | 7.21.16

Verifone unleashed the power of Curb, the first and only national ride-hailing app for taxis, in New York, Philadelphia, Miami-Ft. Lauderdale, San Jose, and the Washington D.C. area, making the traditional taxi industry more competitive than ever with private car services. Additionally, the number of taxis equipped with Curb has expanded in Chicago and Los Angeles.

Shift4, Springer-Miller Systems and Ingenico Group Bring Enhanced Payment Security to Luxury Hotels, Resorts and Spas
PR Newswire | 7.19.16

Payment gateway provider Shift4 Corporation and Springer-Miller Systems, a leading software provider for luxury hotels, resorts, and spas, today announced the successful installation of EMV-ready, smart payment terminals from Ingenico Group, the global leader in seamless payment, at Beaver Run Resort, a full-service resort and conference center in Breckenridge, Colo.

FIS Leads Technology Transformation with Bank Leumi USA
FIS | 7.18.16

FIS, a global leader in financial services technology, today announced the completion of one of the industry’s most unique transformational projects with Bank Leumi USA. The bank replaced its legacy technology platform with FIS banking and payments solutions, including core processing, branch, digital and mobile banking, compliance, risk and back-office systems.

CardFlight Releases the Latest Trends on EMV Chip Card Usage in the U.S.
CardFlight | 7.20.16

CardFlight, a mobile point of sale (POS) technology provider, released the latest edition of their EMV Migration Tracker with new data and trends covering EMV chip card usage in the U.S. The report shares insights on EMV chip card use among cardholders and merchants in the United States since the October 1, 2015 liability shift.

Total Merchant Services Introduces Secure Cloud-Based Suite of "Card Not Present" Payment Solutions
PR Newswire | 7.19.16

Total Merchant Services, a leader in payment services and solutions, today announced the availability of Groovv Online Payments, a secure, cloud-based solution that enables omni-channel payment acceptance for small businesses. The solution makes it possible for merchants to accept payments made by phone, mail or online, as well as via recurring automatic payments – all through one central tool and for one low monthly fee. 

YapStone Names Thusu as Chief Security Officer
The Green Sheet | 7.18.16

YapStone, a global provider of online and mobile payment solutions for global marketplaces and large vertical markets, today announced that Arjun Thusu has joined the company as Chief Security Officer. “We are thrilled to have Arjun on our team as we expand our payments platform to meet the needs of global marketplaces,” says Tom Villante, CEO of YapStone. “Our number one priority is to exceed security standards for our industry. 

Yardi and BluePay Collaborate for Faster, Easier Canadian Rental Payments
EON | 7.22.16

A new collaboration between Yardi and integrated payment processing solutions provider BluePay will allow rental property managers in Canada to receive electronic rent payments. Under the partnership, BluePay will work with Yardi Voyager and RENTCafé to process credit card, debit card and PAD payments made by residents of multifamily and condominium units, as well as commercial property tenants. BluePay will process payments and post deposits to property managers’ bank accounts “invisibly,” and landlords will receive the funds within hours.

Net Element (NETE) Announces Agreement to Acquire PayStar and Nexcharge
StreetInsider | 7.21.16

Net Element, Inc., a provider of global mobile payment technology solutions and value-added transactional services, announced today the entry into a binding letter of intent to acquire a majority interest in PayStar, Inc. ("PayStar"), a comprehensive remittance and e-wallet platform for emerging markets and Nexcharge, Inc. ("Nexcharge"), a proprietary payment processing, fraud management and merchant management platform.

Canadian NFC Mobile Wallet SureTap to Close Down
NFC World | 7.17.16

The SIM-based NFC Canadian mobile wallet SureTap is to be discontinued in August 2016 due to “ongoing changes in the market”, the mobile wallet provider has announced. “With ongoing changes in the market and an increasing number of mobile payment and banking options available from CIBC, Desjardins, Scotiabank as well as other wallets such as Ugo, we at Suretap have decided that we will no longer offer Suretap after August 26, 2016,” the company says.

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