A new mobile banking analysis just published by New York City government officials found that underbanked consumers were more likely to use text or e-mail alerts as well as engage in more frequent money transfers. But those underbanked were also the most concerned about financial data privacy.

"The unbanked were more likely to share their mobile phones than the banked and underbanked. The way in which respondents reported paying for their mobile phones also differed across banking status: the banked were much more likely than the underbanked and unbanked to report having a monthly contract for their phone, while the unbanked and the underbanked reported using prepaid cell phones at much greater rates than the banked," the report said. "Banked smartphone users were more likely to have iPhones, while underbanked and unbanked smartphone users were more likely to have Android phones."

A new mobile banking analysis just published by New York City government officials found that underbanked consumers were more likely to use text or e-mail alerts as well as engage in more frequent money transfers. But those underbanked were also the most concerned about financial data privacy.
The global payments space was brimming with activity this week, as next month's holidays loom ever closer.

Three major Thailand mobile operators—Advanced Info Service (AIS), Total Access Communication (DTAC) and True Move—have struck a deal that is supposed to allow consumers to easily transfer money amongst the group starting Dec. 1. All users need do is key in the receiver's mobile number. No bank account details needed.

The global payments space was brimming with activity this week, as next month's holidays loom ever closer.
In observation of the U.S. Thanksgiving holiday, PaymentFacilitator.com will not publish the week of Nov. 23, either on our sites or in our weekly newsletter.

We will be back the first week of December with all of the news that PFs need, along with a few extra goodies as we unveil some new editorial features and prepare to launch our podcast series.

In observation of the U.S. Thanksgiving holiday, PaymentFacilitator.com will not publish the week of Nov. 23, either on our sites or in our weekly newsletter. We will be back the first week of December with all of the news that PFs need, along with a few extra goodies as we unveil some new editorial features and prepare to launch our podcast series.
One of the nation's most influential state regulators on Monday (Nov. 9) proposed a series of new security requirements aimed at third-party companies involved in payments. But the letter from Anthony Albanese, the acting superintendent of the New York Department Of Financial Services, could have a chilling effect in PF development efforts, cracking down at potentially the worst time for payments startups.

The letter spoke of "the financial industry’s reliance on third-party service providers for critical banking and insurance functions as a continuing challenge" and such third-party services "often have access to sensitive data and to a financial institution’s information technology systems, providing a potential point of entry for hackers. A company may have the most sophisticated cyber security protections in the industry, but if its third-party service providers have weak systems or controls, those protections will be ineffective."

One of the nation's most influential state regulators on Monday (Nov. 9) proposed a series of new security requirements aimed at third-party companies involved in payments. But the letter from Anthony Albanese, the acting superintendent of the New York Department Of Financial Services, could have a chilling effect in PF development efforts, cracking down at potentially the worst time for payments startups.
MasterCard on Wednesday (Nov. 11) globalized its zero liability policy, in effect delivering the kind of consistent worldwide shopper protection that Visa can not yet offer. But it will take MasterCard—which has been working on the policy change for a year—until as late June 30, 2016, to support all regions, giving Visa time to react.

This competitive differentiator is because MasterCard is one global organization, whereas Visa's country operations are separated, a move that Visa last week started to address with its proposed reunification of Visa and Visa Europe.

MasterCard on Wednesday (Nov. 11) globalized its zero liability policy, in effect delivering the kind of consistent worldwide shopper protection that Visa can not yet offer. But it will take MasterCard—which has been working on the policy change for a year—until as late June 30, 2016, to support all regions, giving Visa time to react.
In a big company, when it's suspected that someone is misusing company data to steal money from other employees, the first call is supposed to be to human resources. But what if the fraud is being perpetrated by a couple of HR staffers? That's what happened at Home Depot.

The two Home Depot HR people, Paulette Shorter and Lakisha Grimes, were sentenced to two years and one day in federal prison. According to the feds, the HR staffers used Home Depot personnel files to extract names, social security numbers and birthdates to apply online for Capital One payment cards. They used the names and data not only of Home Depot employees, but of job applicants, too.

In a big company, when it's suspected that someone is misusing company data to steal money from other employees, the first call is supposed to be to human resources. But what if the fraud is being perpetrated by a couple of HR staffers? That's what happened at Home Depot.
Payments developments around the globe has mobile commerce taking off across southeast Asia, card swipe fees and surcharges on the hotseat in Australia and New Zealand, foreign card players are facing an easier than expected time entering Chinese marketplaces while PayTM is pushing hard for its Payment Bank in India.
Payments developments around the globe has mobile commerce taking off across southeast Asia, card swipe fees and surcharges on the hotseat in Australia and New Zealand, foreign card players are facing an easier than expected time entering Chinese marketplaces while PayTM is pushing hard for its Payment Bank in India.
Even in payments, a little candor can go a long way, especially in public CEO statements about issuing a new kind of payments card. This comes from a British company called Mondo, which is about generate MasterCard Prepaid Debit cards issued by Wirecard Card Solutions, which is a payment facilitator as well as being a prepaid issuer.

Still, it's not often that a payments CEO pledges that customers will have headaches—and yet Mondo CEO Tom Blomfield did just that when introducing the Alpha version of his card.

Even in payments, a little candor can go a long way, especially in public CEO statements about issuing a new kind of payments card. This comes from a British company called Mondo, which is about generate MasterCard Prepaid Debit cards issued by Wirecard Card Solutions, which is a payment facilitator as well as being a prepaid issuer.
When Visa announced Monday (Nov. 2) that it was dropping $23.3 billion to reunite with Visa Europe after the pair functioned as independent companies for eight years, it had a great deal of significance to the PF community. Given the extreme difference in rules between the U.S. payments standards and the European Union, it has been challenging for Visa to deliver global consistency, especially with compliance.

Payment facilitators, for example, can become payment service providers "without the help of a bank, something that cannot happen here" in the U.S., said Deana Rich, president of Rich Consulting and also Partner/Director of Strategy for PaymentFacilitator.com. "Also, EU can be a little more lax on some compliance issues. So, once the dust settles, it will be easier for Visa to level set the Core Rules playing field. Visa often has different rules for different regions, but the EU is drastically different in places. Visa may now be able to tighten up a few things in the EU. Or, maybe, just maybe, learn from the EU and loosen a few things up here (in the U.S.). I believe the former is much more likely."

When Visa announced Monday (Nov. 2) that it was dropping $23.3 billion to reunite with Visa Europe after the pair functioned as independent companies for eight years, it had a great deal of significance to the PF community. Given the extreme difference in rules between the U.S. payments standards and the European Union, it has been challenging for Visa to deliver global consistency, especially with compliance.
In a payment facilitator-focused fight that could be painted as Wall Street lobbyists against Silicon Valley lobbyists, a tech group—consisting of Amazon, Apple, Google, Intuit and PayPal—has created a payments lobbying group solely designed to counter the influence of traditional financial players, including Visa, MasterCard, Amex, Chase and Citibank. The group announced its formation on Tuesday (Nov. 3).

The new group calls itself Financial Innovation Now (FIN) and argues that it wants to persuade politicians to go a different route. Complicating matters is the diversity of the FIN group. The concerns of Amazon, Apple and Google, for example, are aligned, in that they are major financial players in retail, hardware, mobile and search engines that are exploring payments initiatives, initiatives that are likely to remain secondary to their primary revenue lines. But PayPal and Intuit are much more closely involved in financial services, with PayPal being every bit as much of a pure payments player as Visa.

In a payment facilitator-focused fight that could be painted as Wall Street lobbyists against Silicon Valley lobbyists, a tech group—consisting of Amazon, Apple, Google, Intuit and PayPal—has created a payments lobbying group solely designed to counter the influence of traditional financial players, including Visa, MasterCard, Amex, Chase and Citibank. The group announced its formation on Tuesday (Nov. 3).
In this week's wrap of global payments developments, we have payment stats from Egypt that are more lack-of-payment stats, U.K. payments security testing, a Swedish payments spin-off and a new mobile bill pay push in Australia.
In this week's wrap of global payments developments, we have payment stats from Egypt that are more lack-of-payment stats, U.K. payments security testing, a Swedish payments spin-off and a new mobile bill pay push in Australia.
When JPMorgan Chase on Monday (Oct. 26) promised new mobile capabilities for its online Chase Pay program next summer, it chose to take a decidedly retailer-oriented approach. With the lures of lower interchange fees plus all of the fraud cost protections of the EMV liability shift without having to accept EMV, Chase has given retailers concrete reasons to push Chase Pay over other payment methods.

The Chase announcement named MCX (and specifically members Walmart, Target, Best Buy and Shell) as premier partner. Interestingly, the interchange reduction effort that caused MCX to form years ago but had been all but abandoned by the group recently is the centerpiece of Chase's 2016 plans. What MCX couldn't get on their own was handed to them by Chase.

When JPMorgan Chase on Monday (Oct. 26) promised new mobile capabilities for its online Chase Pay program next summer, it chose to take a decidedly retailer-oriented approach. With the lures of lower interchange fees plus all of the fraud cost protections of the EMV liability shift without having to accept EMV, Chase has given retailers concrete reasons to push Chase Pay over other payment methods.

The Chase announcement named MCX (and specifically members Walmart, Target, Best Buy and Shell) as premier partner. Interestingly, the interchange reduction effort that caused MCX to form years ago but had been all but abandoned by the group recently is the centerpiece of Chase's 2016 plans. What MCX couldn't get on their own was handed to them by Chase.

Welcome to PaymentFacilitator.com, your home for an independent and analytical take on the payments issues of concern for the PF community. For our take on the major changes impacting payment facilitators and why this editorial community is needed right now, please drop by our About Us page.

It seems, though, this Letter From The Editor is best used to not promise what we'll deliver in the near future, but to tell you what we are delivering to you right now and why those pieces have the information that you're simply not going to find elsewhere today, especially from the various payments media.

Welcome to PaymentFacilitator.com, your home for an independent and analytical take on the payments issues of concern for the PF community. For our take on the major changes impacting payment facilitators and why this editorial community is needed right now, please drop by our About Us page.

It seems, though, this Letter From The Editor is best used to not promise what we'll deliver in the near future, but to tell you what we are delivering to you right now and why those pieces have the information that you're simply not going to find elsewhere today, especially from the various payments media.

With the liability shift and October already here, where are all the EMV-compliant merchants? Many are still waiting for software updates. And why is that, given how many years everyone has known about the October 2015 cutover? Seems that the U.S. payments processing space is a lot more complicated than even the payment itself realized, according to Randy Vanderhoof, who, as executive director of the Smart Card Alliance, is the industry's chief EMV cheerleader.

Vanderhoof concedes that most U.S. merchants—60-65 percent, he said—are not EMV compliant today and he blames that on several factors, but payments complexity—and good old-fashioned procrastination—are at the top of his list. "The U.S. market is the most complex payments processing market in the world because we have multiple parties involved in managing the retail POS systems and multiple parties engaged in the processing and acquiring of payment transactions," Vanderhoof said. "In other countries, other markets, the major banks who were then issuers were also the acquirers so they owned the terminals in those merchant locations. They invested in the cards and the terminals and their own banking acquiring network. In the U.S., financial institutions are separated from the merchants and acquirers. This means that there needs to be independent investments and alignments."

With the liability shift and October already here, where are all the EMV-compliant merchants? Many are still waiting for software updates. And why is that, given how many years everyone has known about the October 2015 cutover? Seems that the U.S. payments processing space is a lot more complicated than even the payment itself realized, according to Randy Vanderhoof, who, as executive director of the Smart Card Alliance, is the industry's chief EMV cheerleader.

Vanderhoof concedes that most U.S. merchants—60-65 percent, he said—are not EMV compliant today and he blames that on several factors, but payments complexity—and good old-fashioned procrastination—are at the top of his list. "The U.S. market is the most complex payments processing market in the world because we have multiple parties involved in managing the retail POS systems and multiple parties engaged in the processing and acquiring of payment transactions," Vanderhoof said. "In other countries, other markets, the major banks who were then issuers were also the acquirers so they owned the terminals in those merchant locations. They invested in the cards and the terminals and their own banking acquiring network. In the U.S., financial institutions are separated from the merchants and acquirers. This means that there needs to be independent investments and alignments."

Late last month, Pennsylvania issued an advisory that its money transmitter regulations are violated when payments companies–payment facilitators and ISOs–collect money from consumers and forward it to nonprofits and religious organizations. And yes, this advisory is as crazy as it sounds.

Whether or not other states follow the Keystone State’s lead, this decision will have devastating consequences for emerging payment companies, especially those who do not have the resources of traditional old line processors. Many may well be faced with the prospect of either banning Pennsylvania consumers or leaving the nonprofit and religious processing space.

Late last month, Pennsylvania issued an advisory that its money transmitter regulations are violated when payments companies–payment facilitators and ISOs–collect money from consumers and forward it to nonprofits and religious organizations. And yes, this advisory is as crazy as it sounds.

Whether or not other states follow the Keystone State’s lead, this decision will have devastating consequences for emerging payment companies, especially those who do not have the resources of traditional old line processors. Many may well be faced with the prospect of either banning Pennsylvania consumers or leaving the nonprofit and religious processing space.

Given the huge importance of small merchants in the U.S. (especially one-location shops, which account for overwhelmingly more retail locations than any other merchant size segment), it's impressive how little attention has been paid to how inappropriate chip and PIN is for those merchants.

In the wake of the U.S. EMV liability shift that kicked in on October 1, there’s been no shortage of debate about Chip and PIN vs. Chip and Signature. Once again, our old friend, the Durbin Amendment, is having its say. And for all the high-minded security-oriented thoughts being dished out, along with the many biased special interests trying to influence the debate, the small and micro-merchant have been left out, as usual.

Given the huge importance of small merchants in the U.S. (especially one-location shops, which account for overwhelmingly more retail locations than any other merchant size segment), it's impressive how little attention has been paid to how inappropriate chip and PIN is for those merchants.

In the wake of the U.S. EMV liability shift that kicked in on October 1, there’s been no shortage of debate about Chip and PIN vs. Chip and Signature. Once again, our old friend, the Durbin Amendment, is having its say. And for all the high-minded security-oriented thoughts being dished out, along with the many biased special interests trying to influence the debate, the small and micro-merchant have been left out, as usual.