The Strawhecker Group
NF Edition #523 - 9/16/16
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Highlights this week...

New eReport - Tablet POS (Smart Terminal) Competitive Snapshot

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

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

Report: Federal Prosecutors Investigating Wells Fargo For Illegal Sales Tactics
Forbes | 9.14.16

Typically, settlements mark the end of lawsuits and investigations. For Wells Fargo, a $185 million settlement proved only to be the beginning of its headaches. Following last week’s announcement that Wells would pay a total of $185 million in fines to settle charges that it created millions of fake bank accounts, the Wall Street Journal is reporting that federal prosecutors are in the “early stages” of an investigation into Wells Fargo’s sales practices. The Journal says that the investigation is being conducted by the U.S. attorney’s offices for the Southern District of New York and the Northern District of California and that prosecutors have not yet decided if they will pursue a case or whether that case would be civil or criminal.


Mastercard Chip Momentum: Reducing Fraud One Year In
Mastercard | 9.12.16

“Since 2012, Mastercard has championed chip technology. We need chip cards in wallets and chip terminals at checkout to continue to drive card fraud out of the U.S. This country is one of the most complex markets in the world so we know things won’t change overnight,” said Craig Vosburg, president of North America for Mastercard. “However, we’re encouraged by the significant progress over the last 11 months. With every additional chip transaction we move closer and closer to our collective goal – moving fraud out of the system.”

Related: MasterCard Seeks To Stop Online Fraud With Selfies, Fingerprints

Walmart Canada's Visa Ban Expands to Manitoba from Thunder Bay
CBC News | 9.15.16

Walmart's high-profile fight with credit company Visa is apparently still raging, as the retailer announced Thursday that all of its stores in Manitoba will no longer accept Visa cards starting next month. Beginning Oct. 24, shoppers will no longer be able to use their Visa cards to pay for purchases in all 16 stores in the province. The move comes after Walmart began the phasing out process in July, when the retailer banned Visa cards from its three stores in Thunder Bay, Ont. The move could spread to other Walmart locations in other provinces, a spokesman for Walmart said, without elaborating.

Applied Merchant Systems and BlueSquare Resolutions Complete Strategic Merger
BusinessWire | 9.12.16

Applied Merchant Systems continues to develop its integrated electronic payment processing platform while consolidating with other growing merchant acquirers, or independent sales organizations (“ISOs”). In that pursuit, AMS expanded its senior credit facility with Goldman Sachs Specialty Lending Group (“Goldman Sachs”) and Business Development Corporation of America (“BDCA”) through a Strategic Merger with BlueSquare Resolutions. BlueSquare’s founder, Sabin Burrell, has become a significant shareholder and Senior Executive of AMS, while also continuing to serve as CEO of BlueSquare.

“The Strawhecker Group was instrumental in providing advisory services to AMS, Goldman Sachs, and BDCA on this transaction. We are pleased AMS has a strong financial footing for future acquisition opportunities in the payment space,” said Jamie Savant, Co-Founder and Partner.

Alibaba Believes the Future of Mobile Payments Lies in the Veins of Our Eyeballs
Quartz | 9.14.16

Apple wants consumers to pay for things using their fingers. Google and Amazon want consumers to pay with their faces. Alibaba is looking elsewhere. This week, Ant Financial, Alibaba’s payments and financial-services affiliate, announced it had purchased Kansas City, Missouri-based startup EyeVerify for an undisclosed sum (though reports citing unnamed sources place it at $70 to $100 million). The acquisition shows how the Chinese e-commerce giant is aggressively, if stealthily, expanding its footprint abroad, while also advancing the adoption of biometric security—that is, the analysis of detectable biological features.

New York Financial Regulator Rolls Out Cybersecurity Proposals
Bloomberg | 9.13.16

New York state is proposing new rules requiring banks and insurance companies to establish cybersecurity programs and designate an internal cybersecurity officer, in what Gov. Andrew Cuomo described as a "first-in-the-nation" move to codify cyber safety policies. The new regulations, proposed by New York’s Department of Financial Services, will apply only to banks and other financial services companies licensed by the Empire State and not to nationally chartered institutions.

Related: New York Proposes ‘Flexible’ Cybersecurity Regulation for Insurers, Banks

Deutsche Bank Says DoJ Wants It to Pay $14 Billion to Settle Mortgages Case
Fortune | 9.16.16

The U.S. Department of Justice is asking Deutsche Bank to pay $14 billion to settle an investigation into its selling of mortgage-backed securities, Germany’s flagship lender said on Friday. The claim against Deutsche, which is likely to be negotiated in several months of talks, far outstrips the bank’s and investors’ expectations for such costs. While it is yet to become clear what the final payment will be, if it were to be as high as $14 billion, this would be a severe strain for Deutsche’s fragile finances and would likely further rock investor confidence in the bank.

Value-Seekers Warm to a $450 Annual Credit Card Fee
The New York Times | 9.12.16

Seldom does a new credit card go viral. There are the unboxing videos posted on YouTube: People exulting in receiving the precious new metallic rectangle, lovingly unwrapping it, boasting to the world of their ownership of it. (One video features a cat ripping the package open.) There are message boards and blogs dedicated to obsessing over it, with more than 6,000 comments so far on a Reddit discussion. It is so popular that JPMorgan Chase, the bank that issues the card, ran out of the engraved card’s fancy metal stock in only 10 days, and had to send a temporary plastic placeholder to disappointed customers.

The Fintech Honeymoon Is Over — Now What?
BankThink | 9.13.16

Young fintech companies are facing a harsh new reality. After years of unbounded growth fueled by billions in venture capital, the market dynamics that made it all possible have changed. Two trends underscore this market recalibration. First, new fintech investments are tapering off as the broader funding market cools. Second, we're seeing banks, once flummoxed, finally starting to get the hang of digital innovation.

Pony-Riding Millennials Push Venmo in Multi-Platform Campaign
Creativity | 9.12.16

Peer-to-peer payment service Venmo, which recently reached Urban Dictionary status as a verb, wants consumers to quit haggling over sharing a bill and "pony up." To that end, the PayPal-owned company is unveiling a quirky ad campaign that includes national TV spots this week. A 30-second spot shows friends arguing over splitting a Happy Hour bill, before one suggests ponying up with Venmo.

Facebook Adds Payments to Messenger Chatbots
Fortune | 9.12.16

Facebook is adding a new capability to dozens of chatbots that have been created for its messaging app Messenger—payments. Customers will now be able to pay for items within Facebook Messenger without having to leave the app to enter their payment details. In April, Facebook started allowing brands and companies to able to build small artificial intelligence software programs, or chatbots, that interact with Messenger users. These bots will send and receive text, but also add images, emoji, and other rich content such as product carousels to let users browser merchandise options from a retailer, for example.

Related: Domino's Joins Chatbot Movement, Unveils Facebook Messenger Ordering

Best Buy Signs On to Accept Chase Pay
Yahoo! Finance | 9.14.16

“We’ll partner with Best Buy to deepen relationships with our common customers by integrating offers and rewards into the payment experience to deliver a seamless experience at the point of sale,” said Jennifer Roberts, president of strategic alliances and loyalty solutions for Chase, in a press release. “Our goal is always to make things easier for our customers and help them smoothly navigate the checkout process,” added Mark Williams, president of financial services for Best Buy. “Chase Pay provides an easy and safe way for customers to purchase the products they want.”

Half of All Lyft Drivers Cash Out Their Payments Instantly
Recode | 9.15.16

Surprise, surprise. It turns out ride-hail drivers want access to their money as fast as possible. In December, Lyft introduced a feature called Express Pay that allowed drivers to instantly cash out the money they made performing rides instead of waiting to be paid at the end of every two weeks. Today, 50 percent of all of the company’s driver payments are done through Express Pay, which the company created in partnership with payments company Stripe. In total, drivers cashed out $500 million since December, according to the company.

Toronto Film Fest Gets VR and NFC Payments With Visa
NFC World | 9.13.16

Visitors to the Toronto International Film Festival (TIFF) are being given the opportunity to embark on a virtual shopping experience that enables them to enter a wardrobe studio to try on iconic costumes from famous movies, add items to a basket and pay using Visa Checkout. The Virtual Wardrobe Studio forms part of a lineup of payment options showcased by Visa during the 10 day event, including a connected screen powered by Ingenico that allows mobile and wearable NFC experiences.

Merchant Groups Fail To Stop House Bill That Threatens the Durbin Amendment
Digital Transactions | 9.13.16

If you think the upcoming 2016 elections are only about The Donald versus Hillary, think again. A bill in the House of Representatives that would significantly alter the controversial Dodd-Frank Act and repeal its contentious Durbin Amendment passed the House Financial Services Committee Tuesday on a 30-26 vote despite heavy lobbying by pro-Durbin merchant trade groups against it. Retailers and their allies vow to continue their fight against H.R. 5983, The Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act as it makes its way through the House. The bill’s chief sponsor, U.S. Rep. Jeb Hensarling, R-Texas, is the Financial Services panel’s chairman, and his measure has the support of financial trade groups such as the American Bankers Association.

Secret Service Warns of ‘Periscope’ Skimmers
KrebsonSecurity | 9.13.16

The U.S. Secret Service is warning banks and ATM owners about a new technological advance in cash machine skimming known as “periscope skimming,” which involves a specialized skimming probe that connects directly to the ATM’s internal circuit board to steal card data. According to a non-public alert released to bank industry sources by a financial crimes task force in Connecticut, this is thought to be the first time periscope skimming devices have been detected in the United States. The task force warned that the devices may have the capability to remain powered within the ATM for up to 14 days and can store up to 32,000 card numbers before exhausting the skimmer’s battery strength and data storage capacity.

Cybercrime-as-a-Service Economy: Stronger Than Ever
Bank Info Security | 9.14.16

The cybercrime sector involves a rapidly growing services economy. Police estimate that just 100 to 200 people may be powering the "cybercrime-as-a-service" ecosystem by developing the attack code and services that enable criminals who lack technical acumen to pay for their cybercrime will to be accomplished. If you can think of a cybercrime service, chances are that it exists.

New Report Shows that One in Five Businesses Don’t Test for Security Vulnerabilities
Trustwave | 9.14.16

Osterman Research and Trustwave today released a new report that shows many businesses fail to conduct frequent security testing despite believing that it's critically important to securing their systems and data. Shockingly, one in five of businesses surveyed for the report admitted they don't do any security testing, despite the fact that 95 percent of survey respondents reported encountering one of the dozen common security issues associated with security vulnerabilities.

U.S. Retail Sales, Factory Output Slump; Third-Quarter Growth Forecast Cut
Reuters | 9.15.16

U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that further diminishes expectations of a Federal Reserve interest rate increase next week. The economic growth outlook also took a hit from other data on Thursday showing a drop in manufacturing output last month. The reports, which extended August's run of weak data, prompted economists to cut their growth estimates for the third quarter.

The U.S. eCommerce Market Rolls Strongly Into Q3
Internet Retailer | 9.15.16

Nonstore sales grew 10.9% in August, according to figures released today by the U.S. Commerce Department. That’s a deceleration from July and Q2, but still strong compared with norms of the prior several quarters. Monthly retail sales data released by the U.S. Commerce Department today suggests that the e-commerce market is showing healthy gains so far this quarter, though the third quarter may not be quite as strong as second quarter. In the second quarter, e-commerce sales grew 15.8%, its largest year-over-year gain in nearly two years.

A Rebounding Economy Remains Fragile for Many
The New York Times | 9.14.16

The eye-popping improvement in economic fortunes last year raises the question: If incomes are up and poverty is down, why is Donald J. Trump’s message of economic decay resonating so broadly? The answer is in plain sight. While the economy finally is moving in the right direction, the real incomes of most American households still are smaller than in the late 1990s. And large swaths of the country — rural America, industrial centers in the Rust Belt and Appalachia — are lagging behind.

Vantiv Embraces Apple Pay on Web, Lures Its Developers
ISO & Agent | 9.15.16

Apple Pay's move to the Web is exactly what Vantiv had in mind when launching Vantiv One Network Experience two months ago as a multi-channel app developers' playground. The Cincinnati-based payment processor and technology provider is supporting Apple Pay on websites, allowing e-commerce merchants to set up single-touch checkout for customers shopping with the Safari browser through iPhones, iPads or Mac desktops. Apple revealed two months ago its intention to add Apple Pay for web transactions, but limiting it to Safari at the outset.

Visa Rolls Out mVisa in Kenya to Expand Mobile Payments

Yahoo! Finance | 9.14.16

In an effort to facilitate wireless payments in Kenya, Visa, Inc. V, a leader in global payments, has introduced the mobile-phone application called mVisa. This app has been introduced to enable Kenyans to make wireless payments through their hand held. To date, the lion’s share of wireless payments are made by Kenya’s largest telecommunication company Safaricom Ltd.

City of Chicago Launches Pilot Program with Mastercard to Improve City’s Digital Infrastructure
Mastercard | 9.15.16

The City of Chicago announced a pilot project in partnership with the Global Cities Business Alliance (GCBA) and Mastercard to improve the city’s digital infrastructure. “This partnership will help solve the technology challenges Chicago faces today and in the future,” Chicago Deputy Mayor Steve Koch said. “I look forward to seeing the benefits this partnership will produce for residents throughout Chicago.”

Elavon & talech Launch Tablet Payment Solution in Canada for Small and Mid-Sized Businesses
Elavon | 9.12.16

Elavon, a leading global payment solution provider and subsidiary of U.S. Bancorp (NYSE: USB), is launching a tablet-based payment solution in Canada that will provide small and medium-sized businesses with secure, interactive payment processing, powerful data analytics and affordability to help businesses effectively manage and grow their businesses. The solution is the result of a relationship between Elavon and talech, a fast-growing Silicon Valley software company. Together, the duo now equips Canadian businesses with Elavon’s strength in payment solutions and talech’s intuitive and intelligent tablet-based point-of-sale platform.

ACI Worldwide Money Transfer System Gets Swift Accreditation
Finextra | 9.13.16

ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, announced that its global payment processing solution, ACI Money Transfer System, was awarded the 2016 Swift Certified Application for Payments label for the nineteenth consecutive year. SWIFT’s financial services industry certification acknowledges that Money Transfer System effectively manages SWIFT messages in order to achieve certification.

The Bancorp Implements Cost Reduction Plan to Reduce Expenses and Improve Efficiencies
EON | 9.15.16

The Bancorp, Inc. began the implementation of a board-approved cost reduction plan designed to streamline its businesses and corporate functions and better position the organization for the future. The first phase of the plan entailed a company-wide workforce reduction. The second phase will entail a close examination and identification of potential cost saving opportunities within the company’s supply chain network.

Payments Company Klarna Launches 'Buy Now Pay Later' in UK
eCommerce News | 9.13.16

Klarna, one of Europe’s leading payment providers, has announced it has partnered with Topshop-owner Arcadia Group to launch its sales financing solution ‘Buy now pay later’ in the United Kingdom. Customers of brands such as Topshop and Miss Selfridge now have the option to buy products online and pay for them over time. With ‘Buy now pay later’, customers won’t have to fill in their personal details or credit application forms. The payments company wants to separate buying from paying and pre-authorizes customers in real-time when the order is placed.

Blackhawk Network Releases Consumer egift Survey Results
The Green Sheet | 9.13.16

Blackhawk Network, a pioneer of prepaid gift cards, payment tools and rewards delivered via a robust and convenient network, announced findings from a new research study about consumers' usage, adoption of and sentiments toward egifts. The findings revealed that as the consumers surveyed rely on mobile devices or computers to store their personal data, the use of egifts—digital gift cards delivered to recipients via email, social media or text message and that are redeemable in-store, online or via mobile devices—is growing.

Big Banks Invest $55 Million in Blockchain Startup Ripple's Series B
CoinDesk | 9.15.16

Distributed ledger settlement startup Ripple has raised $55m in venture capital from a mix of financial industry heavyweights. Participating in Ripple's Series B round are Standard Chartered, Accenture Ventures, SCB Digital Ventures, the venture arm of Siam Commercial Bank and SBI Holdings. Additional investors include Santander InnoVentures, CME Ventures, Seagate Technology and Venture 51.

Kazkommertsbank and Diners Club International Launch Franchise Activity in Kazakhstan
Discover | 9.15.16

Diners Club International Ltd., as part of Discover Global Network, and JSC Kazkommertsbank, one of the largest acquirers and credit card issuers in Kazakhstan, will commence Diners Club card business operations in Kazakhstan. Kazkommertsbank will be the exclusive acquirer in Kazakhstan for Diners Club and other cards issued on Discover Global Network, which is made up of Discover Network, Diners Club and PULSE. The deal will enable acceptance at over 42,000 POS-terminals and 2,266 ATM locations throughout the country. Kazkommertsbank will also be the exclusive issuer of Diners Club cards in Kazakhstan, and is expected to begin issuing cards later this year.

F.N.B. Hires FirstMerit Vet as Security Chief
American Banker | 9.09.16

F.N.B. Corp. in Pittsburgh has recruited an executive from the recently sold FirstMerit Bank to spearhead its data security efforts. The $21 billion-asset F.N.B. named Scot Pflug chief information security officer on Thursday. Pflug will oversee compliance, incident-response protocols and employee awareness and training programs related to data security, the company said in a press release.

American Payment Solutions Expands Credit Card Processing Portfolio to Include Integration for SAP Business One
PRWeb | 9.15.16

American Payment Solutions (APS) announced the expansion of their ERP integrated credit card processing portfolio to include the SAP Business One user base. Beginning September 26th, SAP Business One users will have a strong, cost-efficient choice when it comes to selecting a credit card processor that has a seamless integration within the SAP B1 framework. Attendees at the ASUG SAP Business One Conference will be able to see this integrated solution first-hand at the APS booth in Miami, Florida.

SuperCom to Launch Mobile Wallet Solution with VeriFone and Nofshonit in Israel
PR Newswire | 9.15.16

SuperCom, a global provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors announced today that Nofshonit, one of the largest loyalty club providers and operators in Israel, has selected SuperCom to provide an e-wallet solution to Nofshonit clients for digital loyalty and pre-paid shopping programs, to be supported at merchant locations over various devices and applications.

Bluefin’s PCI P2PE Solution Available on the Merchant Link Platform
Bluefin | 9.13.16

Atlanta, GA and Silver Spring, MD – Bluefin Payment Systems, the leading provider of PCI-validated Point-to-Point Encryption (P2PE) solutions for retail, restaurants, healthcare, and education, and Merchant Link announced today the availability of Bluefin’s P2PE solution on the Merchant Link platform. “PCI-validated P2PE is a premier security solution. Not only does it encrypt card data at the point of entry at the terminal, but because the solution has been validated by the PCI Security Standards Council (SSC), it offers our clients significant cost and efficiency savings from reduced PCI scope – which you just can’t get with a non-validated solution,” said Scott Carcillo, CIO, Merchant Link.

NoFraud announces Integration with X-Payments
The Paypers | 9.14.16

NoFraud, a provider of fraud prevention technology, has announced the integration with X-Payments, a secure payments integrator available on the X-Cart and Magento platforms. NoFraud specializes in providing small and medium sized businesses (SMBs) with a full service fraud tool, eliminating the need for any type of merchant involvement or expertise in the fraud prevention responsibility.

3dcart Shopping Cart Software Integrates with Amazon Payments
BusinessWire | 9.14.16

Shopping cart software provider 3dcart is now part of Pay with Amazon’s new Global Partner Program, extending quick checkout integration of Amazon Payments to 3dcart stores worldwide. A simple integration gives customers at independent online stores the ability to pay using the information stored in their Amazon accounts. 3dcart customers can get started using Pay with Amazon immediately.

UATP Teams With Affirm To Deliver New Payment Solutions For Its Customers

PR Newswire | 9.15.16

UATP announced today that they have teamed up with Affirm, an innovative financial services provider, to provide technology that will allow airlines' customers to purchase airfare in flexible installments, without a credit card. The partnership builds upon UATP's payment technology platform providing speed to market for the Affirm product. "Cost can often influence a customer's decision to purchase, so travelers are more likely to have the confidence to buy when they can pay in smaller monthly installments," said Brad Selby, Affirm's Chief Development Officer.

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