The Strawhecker Group
NF Edition #551 - 3/31/17
Homepage   |   Resources   |   eReports   |   Archive   |   Advertise   |   Contact
Hot News   |   Fintech   |   Regulation/Security   |   Economy   |   Press

Highlights this week...

7,000+ Data Points on 240 Leading/Emerging Acquiers

TSG's Directory of U.S. Merchant Acquirers is now available (preview).  Click here to purchase. Priced competitively at $2,900.

See rankings of top 10 by volume, transactions, and merchants

Why You Need This Report Today
This information, built upon primary and secondary research, provides an unprecedented and detailed look at the players currently involved in the merchant acquiring marketplace. The report is an excellent tool for competitive awareness, M&A activity, potential partnerships and general reference purposes. 

Data was collected from the companies via a survey in early 2017, from public sources, and/or are estimates by TSG. Where illustrated, numbers have been rounded and are intended to be directional in nature. Company profiles include (as available) processor relationships, merchant vertical specializations, dollar volume statistics, transaction counts, active merchant outlet counts, corporate structures, sponsor banks, partnerships and more

TSG Mini-Report: Payments Vs. Sports - Perspective in Valuations
The Strawhecker Group | 3.31.17

With the Final Four ahead this weekend, TSG has pulled together a comparison of public payments companies versus sports teams/organizations. 

Click here for the full illustration.

For example, Square was founded in 2009, went public in November 2015, and is already more valuable than the combined value of the top 50 NCAA men's basketball teams. MasterCard and Visa went from membership organizations to publicly traded companies in 2006 and 2007, respectively; since that time, their value has increased drastically taking them well past the value of the NFL, NBA, and MLB.

Waves of Change for Payments
Pay Before | 3.30.17

The 10th Annual Smart Card Alliance Payments Summit was in full swing this week with packed sessions across three tracks—payments solutions, payments technology and transportation payments—during which experts delved into hot topics influencing the payments space today.The migration to EMV chip technology in the U.S. is moving forward. The Strawhecker Group reported new data showing that 52 percent of merchants today are enabled for the anti-fraud transactions.

TSG Analysis: Where Does Activated EMV & Contactless Terminal Adoption Stand?

Apple Wins Australia Ruling to Retain Apple Pay Dominance
BBC | 3.31.17

Apple has won a major regulatory battle in Australia that will likely see it retain control of its contactless payment technology. Four banks had wanted to negotiate with Apple to gain access to its payments technology for their own apps, avoiding having to pay fees to Apple. But the country's competition watchdog has now barred them from collectively bargaining with Apple. The decision is the first of its kind and could set a global precedent.

With Settlement, Wells Fargo Has Put Scandal 'In the Rearview' Analysts Say
CNBC | 3.30.17

Wells Fargo has been trying to put its fake accounts scandal behind it since the matter was brought to light last year. Setting aside $110 million to help aggrieved customers is a good place to start, according to two industry analysts. Earlier this week, the bank announced the agreement to end a class-action suit over some 2 million accounts that were opened without customers' permission. Wells Fargo already has paid $185 million in fines as part of an agreement with multiple government agencies.

Supreme Court Clears Way for Retailers to Again Sue Visa, Mastercard Over Fees
MarketWatch | 3.27.17

The Supreme Court on Monday declined an invitation to rescue a $7.25 billion antitrust settlement over fees between Visa Inc. and Mastercard Inc. and retailers, effectively clearing the way for merchants to sue for additional charges incurred in recent years. This raises the prospect that Visa and Mastercard could face higher legal costs. Retailers such as Macy’s Inc, Home Depot Inc and Target Corp. that had opted out of the settlement had brought lawsuits against the card companies, but these covered fees from before 2013. Now, the retailers may be able to sue over fees after that period.

Supreme Court Orders New Look at New York Credit-Card Surcharge Ban
Bloomberg | 3.29.17

The U.S. Supreme Court ordered closer scrutiny of a New York law that bars merchants from imposing surcharges on credit-card purchases, giving a group of retailers a partial victory by saying the measure might violate their free-speech rights. Chief Justice John Roberts said the federal appeals court that upheld the law was wrong to analyze it as a form of price regulation. Writing for the high court, he said the measure regulates speech, requiring it to meet a tougher legal test. The decision to return the case to the lower court was unanimous.

How Acquirers are Adaption to the Mobile Threat
PaymentsSource | 3.27.17

As trends in payments technology take hold or taper off, it's safe to say that one is firmly entrenched: The shift to mobile and integrated point of sale devices. Square kicked off the mobile POS trend about seven years ago by targeting micro merchants with a card-swiping dongle attached to a smartphone, a model that by today's standards seems much more bare-bones. But Square's real influence wasn't its technology; it was its sales model, which cut out independent sales organizations and agents in favor of selling payment technology through convenience stores.

Square Finally Opens for Business in the UK, its First Market in Europe
TechCrunch | 3.28.17

Almost a year after setting up a UK business entity called Squareup Europe, today the payments company Square is officially opening up for business in the UK, marking its first move into Europe and its fifth country after Canada, Japan, Australia and its home market in the US, with a service that turns ordinary smartphones and tablets into point-of-sale payments devices. Brexit and all the questions of what it will mean to the British economy and its technology industry be damned?

Related: With an Update, Square Shaves More Seconds From Contact EMV Processing Time

Bank of England May Ditch Animal Fat for Palm Oil in New Plastic £20 Note
Finextra | 3.30.17

The Bank of England is mulling over whether to jump out of the frying pan and into the fire, replacing the use of animal fat in polymer bank notes with environmentally controversial palm oil. Earlier this year, the central bank faced a backlash when it emerged that it was using tallow, a rendered form of beef or mutton fat, in its new plastic £5 note, which went into circulation in September. In February, the BofE decided against ditching the use of tallow for the £5 note and the new polymer £10 note, which will launch in September. However, it promised to investigate alternatives for the new £20 note and future reprints of the £5 and £10.

Last Chance: ETA Star Awards - Call for Nominations
ETA | 3.31.17

The ETA Star Awards recognize and showcase individuals and companies that have made a significant difference in the payments industry, whether through innovation, business practices, or contributions to the association.

Recipients receive awards on stage at the Visa President’s Dinner & Star Awards Gala, on May 10 and during the opening keynote presentations on May 12 at TRANSACT.

Click here to nominate yourself or someone you know by March 31, 2017.

You Can Now Get Money from a Wells Fargo ATM Without Using a Debit Card
USA Today | 3.29.17

Wells Fargo Bank is introducing new technology that will allow smartphone-toting customers to withdraw money at all of its 13,000 ATMs without inserting their debit card. Customers wishing to use the service can get a use-only-once 8-digit code from the bank’s phone app. Customers then input the code and their ATM PIN number to access ATM options. About 20 million Wells Fargo customers use the app, the company says. Later this year Wells Fargo also plans to introduce a “tap and pay” ATM access service that uses “near-field communication” (NFC) technology.

Samsung Reveals S8 With Multi-Biometrics, Samsung Pay Reaches Quarter of a Billion Transactions and Adds Online Payments
NFC World | 3.30.17

Samsung has unveiled its latest Galaxy S8 and S8 Plus flagship devices, with support for iris and facial recognition technology and a fingerprint sensor which is now located on the back of the phone. Samsung Pass deals with major banks, an expansion of Samsung Pay to include online payments and details of its Bixby virtual assistant have also been announced. The Galaxy S8 and Galaxy S8 Plus will come equipped with a new Infinity Display for a “truly immersive viewing experience” and a dedicated button for Bixby, Samsung’s voice-activated virtual assistant, which will be integrated into several Samsung services including camera, contacts, gallery, messages and settings at launch.

SEC Denies a Second Application to List Bitcoin Product
Reuters | 3.28.17

The U.S. Securities and Exchange Commission on Tuesday denied for the second time this month a request to bring to market a first-of-its-kind product tracking bitcoin, the digital currency. The SEC announced in a filing its decision denying Intercontinental Exchange Inc's NYSE Arca exchange the ability to list and trade the SolidX Bitcoin Trust, an exchange-traded product (ETP) that would trade like a stock and track the digital asset's price. Previously, the regulatory agency said it had concerns with a similar proposal by investors Cameron Winklevoss and Tyler Winklevoss.

BofA Commits $1.5M to Boost Charlotte Fintech Effort
American Banker | 3.30.17

Bank of America has pledged to invest $1.5 million in Charlotte, N.C., as part of the city's efforts to become a hub for financial technology. The investment, which was first reported by the Charlotte Business Journal, will be doled out over the next three years in order to launch and sustain the initiative, according to a statement from Cathy Bessant, the bank's chief operations and technology officer.

Amazon's Cashier-less Convenience Store Delayed to Work Out Technical Glitches
MarketWatch | 3.27.17 Inc. is delaying the public opening of its first cashier-less convenience store because of technical complications. Amazon Go was due to launch to the public by the end of the month, after launching in beta mode to employees in December, according to people familiar with the matter. It is unclear when it will now open, as it works out kinks in the technology to automatically charge customers when they leave, instead of needing to have cash registers, checkouts and lines.

One In Four European Internet Users Shops Online Every Week According To New Mastercard Research
Mastercard | 3.28.17

Europeans are avid online shoppers according to the first Masterindex on pan-European e-commerce and new payment trends. With the European market for e-commerce expected to grow by 45% from 2015 to 2018, a Mastercard survey of consumers in over 20 countries in the European Economic Area (EEA) suggests that one in four Europeans with access to the internet purchased products or services online at least once a week in 2016. While uptake of e-commerce is high across Europe, the research reveals interesting differences from country to country in terms of how often people shop online, what types of things they purchase, and their preferred payment methods.

Rise of the Secure Technology Alliance
Bank Info Security | 3.29.17

The former Smart Card Alliance industry group has expanded its mission to include IoT, mobility and other emerging technologies. And it has a new name, too: Secure Technology Alliance. Executive Director Randy Vanderhoof explains the move. "We're following what's happening in our industry," Vanderhoof says in an interview with Information Security Media Group. "The core technology that's used in smart cards, which is the integrated circuit chip technology, is increasingly found in mobile devices, wearables and internet-connected devices - things that aren't tied directly to the card form factor."

eCommerce Fraud Rates Spike 33% in 2016
Experian | 3.28.17

Experian analyzed millions of e-commerce transactions from our 2016 client data to identify fraud attack rates for both shipping and billing locations across the United States. The data reveals the increase of e-commerce attacks in 2016, the geographical differences, and whether a credit card has been stolen or personal credentials have been compromised. Fraud attack rates represent the attempted fraudulent e-commerce transactions against the population of overall e-commerce orders.

American Express, Mastercard, Visa Fine Rosen Hotels in Data Breach, Lawsuit Says
Orlando Sentinel | 3.29.17

A data breach at Rosen Hotels & Resorts last year threatens to cost the company more than $2.4 million, according to Rosen’s insurance company. Visa and Mastercard have slapped Rosen with $1 million fees. Its insurance company, St. Paul Fire & Marine, is refusing to cover the damages, saying Rosen didn’t buy the right policy. And the costs could continue to grow if Rosen faces additional legal claims from customers, according to the lawsuit.

FCA Vows to Tackle Fraud on Lost and Stolen Contactless Cards
Finextra | 3.31.17

The UK's Financial Conduct Authority is co-ordinating an initiative to address the risks of fraud on contactless cards that have been reported as lost or stolen. The UK's contactless card programme was derided as 'chaotic' by consumer groups and MPs after it emerged that customers can still be subject to fraudulent transactions up to eight months after reporting lost or stolen cards.

How States Can Still Outmatch OCC Over Fintech
American Banker | 3.29.17

Fintech is going through its own version of college basketball’s March Madness. In recent weeks, the Office of the Comptroller of the Currency released its draft requirements for nondepository fintech firms to become national banks. State regulators oppose the charter. They fear the OCC will send them packing like a 16-seed school going against a powerhouse like the North Carolina Tar Heels. However, the state regulators can still turn the game around. The OCC’s draft charter requirements, while well-meaning, appear too cumbersome to help the firms most likely to benefit from more consistent regulations.

Post-FCC Privacy Rules, Should You VPN?
KrebsonSecurity | 3.30.17

Many readers are understandably concerned about recent moves by the U.S. Congress that would roll back privacy rules barring broadband Internet service providers (ISPs) from sharing or selling customer browsing history, among other personal data. Some are concerned enough by this development that they’re looking at obfuscating all of their online browsing by paying for a subscription to a virtual private networking (VPN) service. This piece is intended to serve as a guidepost for those contemplating such a move.

Beginning 'Brexit' and Bracing for Impact
The New York Times | 3.30.17

The world did not end. No recession unfolded. Nine months after Britain voted to leave the European Union, disregarding warnings of grim economic consequences, a nation famous for calmly carrying on has seemingly gone about its business. As Prime Minister Theresa May on Wednesday officially initiated Britain’s exit from Europe — Brexit, in everyday talk — the lack of disaster was touted by those steering the departure as a sign of little trouble ahead.

Consumer Confidence Hits 16-Year High Boost to Economy
Reuters | 3.28.17

U.S. consumer confidence surged to a more than 16-year high in March amid growing labor market optimism while the goods trade deficit narrowed sharply in February, indicating the economy was regaining momentum after faltering at the start of the year. The economy's strengthening fundamentals were underscored by other data on Tuesday showing further increases in house prices in January. Robust consumer confidence and rising household wealth from the home price gains suggest a recent slowdown in consumer spending, which has hurt growth, is likely temporary.

Fed Official: U.S. Economy Finally Back to Normal
CNN Money | 3.29.17

That's what John Williams, the head of the Federal Reserve Bank of San Francisco, declared Wednesday. "The data have spoken, and the message is clear: We've largely attained the hard-sought recovery we've been after for the past nine years," Williams told the Forecasters Club, a gathering of economists, in New York. He dubbed it a "Goldilocks economy." Unemployment peaked at 10% after the Great Recession. Today it's just 4.7%, a level Williams said constitutes "full employment" because there will always be some job seekers, even in a healthy economy. Inflation is also "nearing" the Fed's goal of 2%, he said.


Heading to Vegas in May for TRANSACT 17? The Strawhecker Group (TSG), a Gold sponsor, will have a significant presence. Schedule an in-person meeting to discuss current pain points and goals for the remainder of 2017. Act now before times fill up!

Mastercard Enhances Security of the Internet of Things with the Acquisition of NuData Security Inc.
Mastercard | 3.29.17

Mastercard announced it has entered into an agreement to acquire NuData Security, a global technology company that helps businesses prevent online and mobile fraud using session and biometric indicators. The Internet of Things is creating a more digitally-driven and digitally-connected world, with an estimated 50 billion smart devices to be in use across the globe by 2020. While such connectivity can create unparalleled convenience for consumers to pay how they want, when they want, it remains critically important to keep all transactions secure.

Visa's New Virtual Credit Cards Show it's Serious About B2B Payments
TheStreet | 3.29.17

Paying bills. It's a task that no one really loves to do. While digitization of the process has begun to make it easier for consumers, Visa is focusing on ways to share that advantage with small businesses. That's why the San Francisco-based company announced a partnership with payments technology firm Viewpost this week to expand the availability of virtual credit cards, already used by large corporations, to tinier companies via a network that allows electronic invoicing, payments, and real-time cash management. 

Vantiv Achieves Oracle Validated Integration with Oracle E-Business Suite
Vantiv | 3.28.17

Vantiv, Inc., a leading provider of payment processing services and technology for merchants and financial institutions of all sizes, and Gold level member of Oracle PartnerNetwork (OPN), today announced it has achieved Oracle Validated Integration of the company's eCommerce services with Oracle E-Business Suite 12.2. To achieve Oracle Validated Integration, Oracle partners like Vantiv are required to meet a stringent set of requirements that are based on the needs and priorities of the customers. 

Cayan Achieves Chase EMV Certification
Cayan | 3.27.17

Cayan, a payment technology company, today announced it has attained EMV® certification with Chase Merchant Services, the global payment processing and merchant acquiring business of JPMorgan Chase & Co. This latest certification allows merchants to now process both credit and debit chip card transactions through the Cayan Genius® Platform EMV gateway to Chase as well as Chase consumer credentials through their proprietary ChaseNet solution. "Our new EMV certification with Chase continues to allow us to give customers choice and flexibility and improves our capabilities to offer merchants the latest in payment processing capabilities," said Ken Paull, chief revenue officer at Cayan.

JPMorgan Eyes Dublin as Possible Brexit Landing Spot
American Banker | 3.30.17

JPMorgan Chase is in talks to buy a Dublin office building as the bank considers expanding in the Irish capital as one of its options for when Britain leaves the European Union, according to people with knowledge of the matter. The lender is negotiating the potential purchase of a building being developed by a venture between Kennedy Wilson Holdings Inc. and Ireland's National Asset Management Agency, the people said, asking not to be identified because the plans are private. The building at 200 Capital Dock has about 130,000 square feet (12,000 square meters) of space, the people said. That's enough for more than 1,000 workers.

Instant Refunds on Flipkart for Debit Card Purchases Powered by Visa
LTP | 3.30.17

Flipkart, the country’s leading online marketplace and Visa, the global leader in payments technology, announced instant refunds on returns for online shoppers on Visa Debit card purchases. Since the launch of Visa Developer Platform, an open platform to enable and support Visa’s clients and partners to create innovative commerce experiences, this is the first successful use case in India leveraging the power of the Visa Network to create a superior payment experience.

FIS Named Official Provider of Payment and Loyalty Solutions to Minor League Baseball
FIS | 3.27.17

FIS, a global leader in financial technology, today announced an agreement with Minor League Baseball to be its official provider of financial business solutions. As the “Business-Driving Solutions Provider of Minor League Baseball,” FIS will have the opportunity to market and sell its advanced payment, loyalty and other solutions to 160 MiLB clubs across the United States and Canada. The agreement enables FIS to provide advanced solutions to MiLB and its clubs in three key areas: Ballpark Operations, Merchant Services and Loyalty & Rewards.

eProcessing Network Offers Secure, EMV Processing for SMBs
BusinessWire | 3.30.17

eProcessing Network, LLC (ePN) is pleased to announce that it has been certified by TSYS to accept and process EMV™ transactions with the Castles Technology MP200 terminal. TSYS is a leader in providing EMV expertise and merchant support to the payment processing industry and has certified with eProcessing Network (ePN) to offer real-time EMV capabilities to the ePN merchant base. Certification through the TSYS Merchant Platform includes Retail and PIN Debit transactions, allowing merchants to process both contact and contactless transactions for Visa®, MasterCard®, Discover® and American Express® payments.

Moneris Reports Canadian SMBs Slow to Adopt Modern POS Systems
The Green Sheet | 3.30.17

Canadian small businesses are adopting modern, tablet-based point-of-sale (POS) solutions in surprisingly low numbers, according to research commissioned by Moneris Solutions Corporation ("Moneris"), Canada's leading credit and debit card processor. Research revealed that less than one per cent of small businesses are using an advanced, tablet-based POS solution to process sales, while 42 per cent are sticking to the basics of a standard cash register. 

Flourish Branded Currency Conference Coming to Omaha
The Green Sheet | 3.31.17

Flourish: The Growth of Branded Currency Conference is slated to bring retail payment technology experts from around the world to Omaha, April 10-12, 2017. Over 40 National merchants and their representatives, 50+ payment technology service providers and numerous fintech and media organizations will be will be in attendance. The conference will feature content targeted at the branded currency industry, which includes: gift card, promotional value, point-based programs, point of sale systems, loss prevention, fraud, and those who utilize these tools and programs.

Ingenico Group Unveils Contactless Payment Acceptance into Australia’s First Connected Screens with ANZ at the Inside Retail Live Sydney
Ingenico | 3.29.17

The Connected Screens enable retailers and businesses to engage with customers, allowing them to experience screen commerce, a unique payment and purchase method developed by Ingenico. The Connected Screens now integrate ANZ’s contactless card and NFC payment acceptance solution to address the expectations of the emerging Internet of Things. They are also an ideal payment and media platform for drive to store applications and pop-up stores, especially in high traffic areas such as shopping malls, airports and train stations.

Creditcall And Credorax Align To Bring Omni-Channel Payment Platform To Under-Served Small And Medium Sized European Merchants
BusinessSolutions | 3.28.17

Creditcall, the omni-channel Payment Gateway and EMV Kernel provider, and Credorax, one of the first Fintech companies to evolve into a licensed European Merchant Acquiring Bank, have partnered to launch an integrated omni-channel payment platform for the under-served European SME market.  Recently recognised at MPE’s award ceremony for their respective contributions to the European payments’ industry, Creditcall and Credorax have begun to roll out an end-to-end service that includes online, mobile, in-store, and unattended payments acceptance, with a rapid certification service for ISVs, ISOs, and PFs targeting the European market.

Total Merchant Services Expands Integrated Payments Technology for Developers
PR Newswire | 3.27.17

Total Merchant Services, a leader in payment services and solutions, announced its expanded suite of Groovv Integrated Payments APIs and SDKs for software developers and Independent Software Vendors (ISVs). Free to implement, the tools make it easy for developers to integrate payments seamlessly into their software or websites while meeting compliance requirements. Further, ISVs using Groovv Integrated Payments in their point of sale (POS) or business management solutions earn revenue share when their customers process transactions.

USA Technologies Appoints Priyanka Singh as Chief Financial Officer
BusinessWire | 3.28.17

USA Technologies, Inc., a payment technology provider of cashless and mobile transactions in self-serve retail, announced that Priyanka Singh has been appointed as the company’s new Chief Financial Officer, effective March 31, 2017. She replaces interim CFO, Leland P. Maxwell, who will continue with USAT in a senior finance role. Ms. Singh brings over 15 years of finance and accounting experience to the position, including five years in the payments industry. She joins the company from Global Payments Inc., a leading worldwide provider of payment technology solutions.

Eclipse Cash Systems to Provide College Basketball Fans with Easy Access to Cash During NCAA Final Four Event
CU Insight | 3.31.17

College basketball fans attending the NCAA Final Four March 31-April 3 in Phoenix won’t have to go far to obtain cash. Thanks to Eclipse Cash Systems, fans can score all the cash they need for beer, food and souvenirs at over 50 mobile ATMs strategically located throughout the stadium and the various NCAA-sponsored events taking place in the Valley of the Sun. “We are honored to have been selected to be the ATM provider for the NCAA Final Four event,” says Derek Smith, president of Eclipse Cash Systems.

JetPay Corporation Announces 2016 Financial Results; Annual Revenues Increase 30.0% including 42.4% Increase in Payment Services
MarketWired | 3.27.17

Revenues increased 30.0%, or $13.0 million, to $56.3 million for the year ended December 31, 2016, as compared to $43.3 million in 2015, and up 48.8%, or $5.7 million, to $17.3 million for the quarter ended December 31, 2016 from $11.6 million for the same period in 2015. Revenues within Payment Services increased 42.4%, or $12.1 million, to $40.7 million for the year ended December 31, 2016, as compared to $28.6 million in 2015, and 82.5%, or $5.7 million, to $12.7 million for the quarter ended December 31, 2016 from $7.0 million for the same period in 2015.

Payoneer Offers Working Capital Solution to eCommerce Sellers on
PR Newswire | 3.30.17

Payoneer, a leading cross-border payments company transforming the way businesses send and receive funds globally announced its new Early Payments™ service at Wish's annual seller conference in Hangzhou. The service provides Wish high-volume eCommerce merchants the ability to receive payment for their sales within minutes, giving them crucial capital to drive their businesses forward.
Copyright © 2017 The Strawhecker Group, All rights reserved.

Our mailing address is:
11605 Miracle Hills Dr. Suite 302 Omaha, NE 68154

Want to change how you receive these emails?
You can
update your preferences or unsubscribe from this list
The above will remove you from all TSG communications, this includes email blasts as well as NewsFilter. Please be aware of this before you choose to unsubscribe. Thank you, we appreciate your continued readership.