With Space to Grow, Parking Vendors Looking for Scale

Parkmobile CEO Jon Ziglar envisions a world where we all leave our homes knowing the exact spot where we’ll park when we get to our destination.

U.S. cities are nowhere near reaching that parking utopia, meaning that there is plenty of room for Parkmobile and companies like it to grow.

Parkmobile CEO Jon Ziglar envisions a world where we all leave our homes knowing the exact spot where we’ll park when we get to our destination. U.S. cities are nowhere near reaching that parking utopia, meaning that there is plenty of room for Parkmobile and companies like it to grow.

Choices at Vending Machine: More Than Salty vs. Sweet

The choices offered by today’s payments technology can be found everywhere – even at the vending machine.

Sure, you can still find machines where you can insert and reinsert that dollar bill with the bent corner. But an increasing array of options is making paying for the snacks more convenient for consumers and managing the machines easier for operators.

The choices offered by today’s payments technology can be found everywhere – even at the vending machine. Sure, you can still find machines where you can insert and reinsert that dollar bill with the bent corner. But an increasing array of options is making paying for the snacks more convenient for consumers and managing the machines easier for operators.

News Roundup: Tech Giants Expanding in India

Two major technology companies are reportedly expanding their services in India, and PayPal continues to add to its roster of partnerships.

Last week, the Economic Times reported that Google had launched an app giving India’s consumers access to restaurant delivery or home services, such as electricians or house cleaners. Users can look to the Areo app to order food or schedule appointments. They can also pay for the service directly on the app.

Two major technology companies are reportedly expanding their services in India, and PayPal continues to add to its roster of partnerships.

Paytm Uses QR Codes to Connect Online, Offline

Paytm is expanding its use of QR codes to drive commerce at small retailers across India.

Earlier this week, the company announced it was opening up a channel for its small, local partner merchants. The program will enable them to sell products from its online Paytm Mall to customers who come into their stores.

Paytm is expanding its use of QR codes to drive commerce at small retailers across India. Earlier this week, the company announced it was opening up a channel for its small, local partner merchants. The program will enable them to sell products from its online Paytm Mall to customers who come into their stores.

News Roundup: Adyen Doubles Revenue, Mastercard Names New Class of Startups

In a roundup of news from this week, Adyen announces significant growth, Stripe upgrades its Atlas program, Mastercard is taking applicants for summer Start Path Global program, and Wirecard and Alipay continue their expansion.
In a roundup of news from this week, Adyen announces significant growth, Stripe upgrades its Atlas program, Mastercard is taking applicants for summer Start Path Global program, and Wirecard and Alipay continue their expansion.

Grab-Kudo Agreement Extends Uber Rival’s Push into Payments, Drive for Financial Inclusion

Grab, a ride-hailing platform that is often referred to as Southeast Asia’s answer to Uber, is extending its payments platform through its acquisition of e-commerce platform Kudo.

The acquisition complements Grab’s existing network across Indonesia’s major cities, the company said. Kudo’s unique structure, with 400,000 agents in 500 towns across Indonesia, will extend Grab into smaller towns and rural areas as well.

The company said it is looking at ways to grow its community of riders and drivers, as well as expand Kudo’s financial services, using this combined distribution network.

Grab, a ride-hailing platform that is often referred to as Southeast Asia’s answer to Uber, is extending its payments platform through its acquisition of e-commerce platform Kudo. The acquisition complements Grab’s existing network across Indonesia’s major cities, the company said. Kudo’s unique structure, with 400,000 agents in 500 towns across Indonesia, will extend Grab into smaller towns and rural areas as well. The company said it is looking at ways to grow its community of riders and drivers, as well as expand Kudo’s financial services, using this combined distribution network.

News Roundup: Why Do So Many Canadian Small Merchants Still Use Cash Registers?

In a roundup of news from this week, PayU’s new payment deferral option consolidates small-ticket transactions, Avangate acquires PF 2Checkout, and Moneris releases research on the adoption of tablet-based POS systems by Canadian merchants.
In a roundup of news from this week, PayU’s new payment deferral option consolidates small-ticket transactions, Avangate acquires PF 2Checkout, and Moneris releases research on the adoption of tablet-based POS systems by Canadian merchants.

Square Makes Its Move into U.K.

Square announced this week that it has launched its business in the U.K. But does its timing mean that it’s already shut out of a competitive market?

Rick Oglesby doesn’t think so. Oglesby is principal of AZ Payments Group and a partner of Double Diamond Group, and he’s bullish on Square’s prospects.

Square announced this week that it has launched its business in the U.K. But does its timing mean that it’s already shut out of a competitive market? Rick Oglesby doesn’t think so. Oglesby is principal of AZ Payments Group and a partner of Double Diamond Group, and he’s bullish on Square’s prospects.

News Roundup: New Authentication Method for Mastercard Selfie Pay

In a roundup of news from this week, Mastercard comments on Samsung iris scanning technology, Wirecard acquires South African payments provider, and Alipay expands its reach again.
In a roundup of news from this week, Mastercard comments on Samsung iris scanning technology, Wirecard acquires South African payments provider, and Alipay expands its reach again.

News Roundup: Samsung Pay Launches in India, Shopify Teams with Klarna

In a roundup of news from this week, Mastercard announced the launch of Samsung Pay in India, Shopify integrates Klarna’s instant financing, and Paytm expands into Canada.
In a roundup of news from this week, Mastercard announced the launch of Samsung Pay in India, Shopify integrates Klarna’s instant financing, and Paytm expands into Canada.

Research: Digital Wallet Adoption Will Happen; Merchants Must Take the Lead

Merchants must take the lead in driving digital wallet adoption and growth. That’s according to research conducted by Forrester Consulting and commissioned by JPMorgan Chase. It looks at the current state of the digital wallet from both consumer and merchant perspectives.

The study looks at the prevailing attitudes of consumers right now concerning digital wallets – including whether they consider them safe, whether they use them and if not, why they don’t. Forrester also asked merchants what barriers they face in implementing digital wallets.

Merchants must take the lead in driving digital wallet adoption and growth. That’s according to research conducted by Forrester Consulting and commissioned by JPMorgan Chase. It looks at the current state of the digital wallet from both consumer and merchant perspectives.

Mastercard Joins with Unilever to Empower Small Merchants

Mastercard and Unilever announced a partnership on Wednesday through which they plan to expand access to resources for small and micro businesses in emerging markets.

The partnership will combine Unilever’s distribution network with Mastercard’s payments technology and expertise.

Mastercard and Unilever announced a partnership on Wednesday through which they plan to expand access to resources for small and micro businesses in emerging markets. The partnership will combine Unilever’s distribution network with Mastercard’s payments technology and expertise.

Paysafe, Square Expand Mobile Ordering for Local Businesses

Ordering ahead with your mobile phone isn’t just for pizza anymore.

Mobile ordering is often associated with pizza delivery and big fast casual chains. But increasingly, platforms are enabling smaller, local businesses to get in the game.

London-based payment facilitator Paysafe is rolling out a new mobile ordering app called GOLO. The app will enable customers to order not only from local restaurants, but other businesses as well. They can then either pick up their order or have it delivered.

Ordering ahead with your mobile phone isn’t just for pizza anymore. Mobile ordering is often associated with pizza delivery and big fast casual chains. But increasingly, platforms are enabling smaller, local businesses to get in the game.

After Demonetization, India Seeking a New Normal

The payments news from India just keeps coming.

As the government continues its push toward a cashless society, its policies are getting mixed reviews. But companies continue to shore up their digital payment offerings, hoping to capitalize on the climate there.

The payments news from India just keeps coming. As the government continues its push toward a cashless society, its policies are getting mixed reviews. But companies continue to shore up their digital payment offerings, hoping to capitalize on the climate there.

Drive to Expand Financial Inclusion Continues in Africa, India

Payments technology companies are continuing the drive to expand financial services into underserved populations. By enabling micro and small businesses to accept non-cash payments, they say, they are improving operational efficiencies for these businesses and avoiding the need for proprietors to carry large sums of cash.

On Tuesday, Mastercard announced that it plans to provide at least 150,000 Kenyan merchants with access to its Masterpass QR mobile person-to-merchant payment solution, beginning this month.

Payments technology companies are continuing the drive to expand financial services into underserved populations. By enabling micro and small businesses to accept non-cash payments, they say, they are improving operational efficiencies for these businesses and avoiding the need for proprietors to carry large sums of cash.

Thailand’s PromptPay Arrives, with Plans to Displace Cash

Thailand took a step toward a digital economy this past week with its release of PromptPay, which enables consumers to send and receive payments using mobile phone numbers or national identification numbers rather than bank account numbers.

PromptPay is part of the Thai government’s effort to develop a national electronic payments infrastructure, which is intended to reduce cash usage and to make the payments system more efficient and transparent, as well as to provide e-commerce opportunities for small to medium businesses.

Thailand took a step toward a digital economy this past week with its release of PromptPay, which enables consumers to send and receive payments using mobile phone numbers or national identification numbers rather than bank account numbers.

News Roundup: New First Data Business Unit Geared to PFs, Other Partners; Mastercard Connects Farmers in East Africa

In this week’s roundup of industry news, payments processors are building on their capabilities for independent software vendors, Mastercard connects farmers to the agricultural supply chain in East Africa, and worldwide cashless payments are rapidly rising.
In this week’s roundup of industry news, payments processors are building on their capabilities for independent software vendors, Mastercard connects farmers to the agricultural supply chain in East Africa, and worldwide cashless payments are rapidly rising.

News Roundup: PayPal and Discover Sign Agreement, Wix Adds Square

In this week’s roundup, PayPal racks up another credit card company agreement, Paytm expands the places it is accepted across India, and more small businesses can use Square for their POS.
In this week’s roundup, PayPal racks up another credit card company agreement, Paytm expands the places it is accepted across India, and more small businesses can use Square for their POS.

Mastercard Continues March to 40 Million with UBA Partnership

United Bank of Africa has launched its first merchant app in Nigeria, with the goal of connecting 100,000 micromerchants to the larger economy during 2017. The app will include Masterpass QR, a mobile payment method from Mastercard.

UBA will work with additional partners to aid in rolling out the program. Innovectives, a Nigerian financial technology provider and payment facilitator, will support the program with technical development and value-added services.

United Bank of Africa has launched its first merchant app in Nigeria, with the goal of connecting 100,000 micromerchants to the larger economy during 2017. The app will include Masterpass QR, a mobile payment method from Mastercard. UBA will work with additional partners to aid in rolling out the program. Innovectives, a Nigerian financial technology provider and payment facilitator, will support the program with technical development and value-added services.

India PF Paytm Gets Approval to Launch Payments Bank

Indian payment facilitator Paytm announced on Tuesday (Jan. 3) that the Reserve Bank of India has granted the company the final go-ahead to launch Paytm Payments Bank. Paytm was granted in-principle approval for the payments bank in 2015.
Indian payment facilitator Paytm announced on Tuesday (Jan. 3) that the Reserve Bank of India has granted the company the final go-ahead to launch Paytm Payments Bank. Paytm was granted in-principle approval for the payments bank in 2015.

European News Roundup: Rewards for U.K. Shoppers, Mastercard and Apple Pay in Spain

In this week’s roundup of news, Google offers rewards for U.K. Android Pay shoppers, Mastercard brings Apple Pay to Spain, and SecurionPay adds a cross-sale feature to its payments software.
In this week’s roundup of news, Google offers rewards for U.K. Android Pay shoppers, Mastercard brings Apple Pay to Spain, and SecurionPay adds a cross-sale feature to its payments software.

Latest from Square: An Integration with Apple Pay

On Tuesday, Square CEO Jack Dorsey announced that the Square Cash service was integrating its virtual debit card with Apple Pay at Recode’s Code Commerce event in San Francisco.
On Tuesday, Square CEO Jack Dorsey announced that the Square Cash service was integrating its virtual debit card with Apple Pay at Recode’s Code Commerce event in San Francisco.

News Roundup: PayPal’s New App, Uber’s Day in Court

In this week’s news roundup, PayPal introduces a new app for business owners, Uber goes to court, and Adobe tracks Black Friday online sales.
In this week’s news roundup, PayPal introduces a new app for business owners, Uber goes to court, and Adobe tracks Black Friday online sales.

PayPal Integrates Voice Commands in Time for Holiday Group Shopping

PayPal recently predicted that more than 17 million P2P transactions will occur during the month of December, as consumers – particularly millennials – pool money for gifts and use P2P payment apps to collect payment from each other.

According to the company’s Holiday Money Habits Study, an online survey of 1,000 American consumers released this week, half of millennials planned to go in on gifts together this holiday season compared to two-fifths of consumers in general.

PayPal recently predicted that more than 17 million P2P transactions will occur during the month of December, as consumers – particularly millennials – pool money for gifts and use P2P payment apps to collect payment from each other.

News Roundup: Square Beats Estimates (Again), Paytm Adds Logistics

In this week’s news roundup, Square reports its 3Q16 earnings, Paytm expands its capabilities, and Alipay expands the availability of its mobile wallet.
In this week’s news roundup, Square reports its 3Q16 earnings, Paytm expands its capabilities, and Alipay expands the availability of its mobile wallet.

News Roundup: Mobile Payments Making Inroads, Somewhat

Two new research reports out this week give us the latest on consumers’ attitudes toward mobile and their overall usage of different payment methods. A product announcement also showcases broader digital wallet adoption.
Two new research reports out this week give us the latest on consumers’ attitudes toward mobile and their overall usage of different payment methods. A product announcement also showcases broader digital wallet adoption.

Leading PF Shopify Turns Customer Service into Sales for Its Merchants Using Facebook Messenger

Part of the beauty of shopping in a brick-and-mortar store is the ability to speak with a person who can help you solve a specific problem or just help you find what you’re looking for. What if you could make that personal engagement happen for your merchants’ e-commerce customers as well? By integrating with Facebook Messenger, Shopify is doing just that.
Part of the beauty of shopping in a brick-and-mortar store is the ability to speak with a person who can help you solve a specific problem or just help you find what you’re looking for. What if you could make that personal engagement happen for your merchants’ e-commerce customers as well?

Europe News Roundup: Mobile Payments Have Taken Off

A look at European payments news this week reveals that financial technology is alive and well across Europe. Visa released statistics on explosive growth in mobile payments, and several new partnerships are expanding the ways Europeans – and visitors – can pay.
A look at European payments news this week reveals that financial technology is alive and well across Europe.

Mastercard Study: Consumers are Hungry for More Innovation. But in Europe, Not So Much.

While European consumers are happily embracing technology, they are a bit more cautious about their payment technology than their counterparts in developing areas. In other countries across the Middle East and Africa, the attitude is more “bring it on.” This is according to Mastercard’s Impact of Innovation Study, a survey of consumers across 23 countries that measured their attitudes about digitization and its impact on their lives.

The study looked at consumers’ readiness to adopt payment innovations, including mobile payments and beyond, and found interesting differences between the more and less developed markets. Despite their differences, however, consumers overall expressed positive feelings about the effect of digitization on their lives. This is good news for software-as-a-service companies thinking about becoming payment facilitators – they are likely to find receptive consumers willing to engage with technology.

While European consumers are happily embracing technology, they are a bit more cautious about their payment technology than their counterparts in developing areas. In other countries across the Middle East and Africa, the attitude is more “bring it on.”

Is Square Changing Its Stripes? APIs Target Stripe and Braintree Approach to ISVs

In a wide-ranging presentation to investors and other audience members at the Jefferies 2016 West Coast Payments Conference on Tuesday (Sept. 27), Square CFO Sarah Friar commented on the company’s growth plans and future opportunities for expansion.

Her remarks make one thing clear: Square sees its reach as expanding far beyond accepting payments with a little white card reader. And it sees working with other software providers as one way to provide its products and services to more merchants.

In a wide-ranging presentation to investors and other audience members at the Jefferies 2016 West Coast Payments Conference on Tuesday (Sept. 27), Square CFO Sarah Friar commented on the company’s growth plans and future opportunities for expansion.

Exploding Internet Access Plus Ubiquitous Smartphone Use Equals Digital Payments Boom

All the digital payments innovation will pay off in some crazy numbers soon, says a report from non-profit think tank The Demand Institute, which is run by Nielsen and The Conference Board.

That strengthens the future of PFs worldwide, as cashless payments could result in over $10 trillion in additional consumer spending over the next 10 years, the report says. That figure is hand in hand with the report's assertion that by 2020, the Internet will be available to over 1.2 billion more people than use it today. Much of that access will be through smartphones.

All the digital payments innovation will pay off in some crazy numbers soon, says a report from non-profit think tank The Demand Institute, which is run by Nielsen and The Conference Board.

Facebook Dives Deeper Into Payments Under David Marcus, Competing As A PF, Again

The only thing separating Facebook from being a true payment facilitator is it registering as one. The social media giant today announced users of its Messenger app can now send payments from within the app to make purchases from sites who interface with the app using bots.

Facebook is working with Stripe, Braintree and PayPal, but also appears to be directly enabling acceptance of Visa, Mastercard, and American Express to make this happen, and Messenger users can store their card info in Messenger for use at checkout. This can be combined with the ability of brands being able to buy ads that take clickers into Messenger where their card info is saved. David Marcus, Facebook's vice president of messaging and a former payments executive, has raised the Messenger user base from 700 million monthly active users to 1 billion in a year.

The only thing separating Facebook from being a true payment facilitator is it registering as one. The social media giant today announced users of its Messenger app can now send payments from within the app to make purchases from sites who interface with the app using bots.

Mastercard And Visa Gain Strength, But Did PayPal?

The deal between Mastercard and PayPal announced Sep. 6 was different for a day than the Visa-PayPal partnership announced in July. Mastercard spokesperson Robyn Cottelli says being a payment choice in PayPal's checkout is crucial, but not the only draw.

"Our thoughtful approach to the partnership with PayPal was not just focused on prominence as a payment option, but going beyond what we’ve seen Visa announce to drive further value for Mastercard and our partners," Cotelli tells paymentfacilitator.com.

The deal between Mastercard and PayPal announced Sep. 6 was different for a day than the Visa-PayPal partnership announced in July. Mastercard spokesperson Robyn Cottelli says being a payment choice in PayPal's checkout is crucial, but not the only draw.

Southeast Asian Roundup Includes Big Names: Google, Alibaba, Jack Ma, Mastercard and Visa

The Asia Pacific region continued this past week to provide evidence of its explosive potential for payments, as Mastercard reshuffled management for the area and a country asked the founder of a global powerhouse payments company to advise it on ecommerce.

Indonesia would like Alibaba founder and chairman Jack Ma to help it grow an ecommerce market that is attracting global attention from investors. The multi-island nation has the fourth highest population in the world and the fifth-largest internet using population (over 100 million), and has recently committed to a multi-million-dollar project enhancing internet speeds throughout the country by 2019.

The Asia Pacific region continued this past week to provide evidence of its explosive potential for payments, as Mastercard reshuffled management for the area and a country asked the founder of a global powerhouse payments company to advise it on ecommerce.

Could the Horrendous Consumer Experience With Chip Cards Boost Mobile Payments in U.S.?

Payments experts have predicted that the U.S. could head to mobile payments much faster than other developed regions have, bypassing the use of contactless cards that the U.K., Canada and Australia have embraced. While mobile usage remains outside the mainstream for now, forces at work in the current environment could help push consumers in that direction.

We surmised a couple weeks ago that while the U.S. use of chip cards has gotten off to a slow start due to retailer infrastructure, slow certification, and consumer behavior, it could be a strong market for the use of phones in contactless in-person transactions.

Payments experts have predicted that the U.S. could head to mobile payments much faster than other developed regions have, bypassing the use of contactless cards that the U.K., Canada and Australia have embraced. While mobile usage remains outside the mainstream for now, forces at work in the current environment could help push consumers in that direction.

Is Google Trying To Steal Venmo Users Or Score New Customers for Android Pay?

Google Wallet has Venmo (and Square Cash and maybe Facebook and Snapchat) in its crosshairs with its latest app update, the ability to have person to person transfers go directly to a user's bank account. But is the competition for share or for users who don't yet have a P2P app? One analyst says attracting new customers for Android Phones and Android Pay is the goal.

The P2P game is played best with less friction and more speed and Google wants more people to play it with Wallet, then try transacting with Android Pay, says Gil Luria, head of technology research at Wedbush Securities.

Google Wallet has Venmo (and Square Cash and maybe Facebook and Snapchat) in its crosshairs with its latest app update, the ability to have person to person transfers go directly to a user's bank account. But is the competition for share or for users who don't yet have a P2P app? One analyst says attracting new customers for Android Phones and Android Pay is the goal.

Millennials, Seeking Uniqueness, Flock To Klarna To Pay Their Way

Millenials' decreasing use of credit cards and increasing use of debit opens doors for companies like Swedish company Klarna, a payment facilitator that offers mobile and online buyers the choice of traditional payments – charge now—or within 14 days or in installments.

Klarna works seamlessly at checkout, says Klarna North America CEO Brian Billingsley—an email address and zip code is all a shopper needs if not paying immediately. Once that info is inputted it doesn’t need to be entered again at Klarna merchant partners. Billingsley says Klarna gives millennials a little of what they're looking for when shopping, control and uniqueness.

Millenials' decreasing use of credit cards and increasing use of debit opens doors for companies like Swedish company Klarna, a payment facilitator that offers mobile and online buyers the choice of traditional payments – charge now—or within 14 days or in installments.

Tech Mobile Contactless Marketing Could Turn The U.S. EMV Frown Upside Down

More than a decade after the U.S. payments community tried and failed to make contactless payments work, EMV resentment and a well-funded mobile payment app movement may make U.S. contactless payments not merely viable, but vibrant—perhaps as soon as late 2018.

One result could be that the U.S. adopts mobile contactless payments before and in higher numbers than chip cards as tech giants like Apple and Samsung and Google blitz consumers with mobile payment app marketing that was not a factor when the country tried contactless a decade ago.

More than a decade after the U.S. payments community tried and failed to make contactless payments work, EMV resentment and a well-funded mobile payment app movement may make U.S. contactless payments not merely viable, but vibrant—perhaps as soon as late 2018.

Meet The New RBI Boss; Same As The Old Boss?

The change in governors of the Reserve Bank of India is no small news, as India is well known for its governmental help with the furtherance of technology in general and fintech in particular.

Under the outgoing governor, Raghuram Rajan, RBI decided to give 11 companies licenses to set up payment banks for the underserved population of the country and this is expected to give rise to an increase in the use of digital banks and wallets. RBI also recently put together a working group of RBI, banking and payments executives to study regulatory issues related to digital banking and fintech.

The change in governors of the Reserve Bank of India is no small news, as India is well known for its governmental help with the furtherance of technology in general and fintech in particular.

If Chargebacks And False Declines Are The Problem, PFs Are A Solution

Chargebacks and false declines present many problems to merchants and issuers alike but where there's complications, there's payment facilitator opportunity, says one risk management expert.

"Whereas merchants may not be familiar with all aspects of payment processing and risk management controls, payment facilitators provide affordable accessibility to systems, knowledge and focused expertise that may otherwise be unattainable," says Marcus Smith, the senior vice president of risk management for processor iPayment Inc. "Due to scale and buying power, payment facilitators can also allow merchants to benefit from their data acquisition, proprietary and third party technology and other value added service that meet the needs of their aggregate clientele. Ultimately, payment facilitators can eliminate various administrative costs and distractions allowing merchants to place their money, time and attention on managing and growing their business."

Chargebacks and false declines present many problems to merchants and issuers alike but where there's complications, there's payment facilitator opportunity, says one risk management expert.

Is $75 Billion In 2016 Mobile In-Store Payments Realistic?

At least one research firm thinks in-store mobile payments, mobile wallets usage, is set to explode in the U.S., despite accounts of slow uptake by consumers and crawling installation of NFC terminals by retailers.

The Business Insider Intelligence's 2016 Mobile Payments Report predicts volume of in-store mobile payments will hit $75 billion this year and $503 billion by 2020. The authors say despite the hurdles of consumer habit and spotty availability, wallets' benefits to both retailers and shoppers, such as security, speedier checkout process and app integration will boost usage quickly and heavily.

At least one research firm thinks in-store mobile payments, mobile wallets usage, is set to explode in the U.S., despite accounts of slow uptake by consumers and crawling installation of NFC terminals by retailers.

India Is Digital Payments Dynamite

India is set to explode in digital payments based on several key metrics: population, number of mobile phone users, Internet users, and smartphone users.

The Boston Consulting Group and Google recently collaborated on a study named Digital Payments 2020: The Making of A $500 Billion Ecosystem In India, painting a bright future in digital payments for several reasons: technology; 10-fold growth in merchant acceptance; rise of data-driven consumer benefits; consolidation leading to simplification; a unified payments interface (UPI) stokes widespread adoption of digital payments; national ID system eases KYC; and non-cash transaction volume will continue to accelerate, surpassing cash transactions by 2023.

India is set to explode in digital payments based on several key metrics: population, number of mobile phone users, Internet users, and smartphone users.

PFs See Market Validation In Square’s Soaring Revenue

When Square’s stock price soared from $10.44 during trading Aug. 3 to $11.51 in after-hours trading, it was a powerful harbinger for the PF community. Square has been aggressive, but what the nation’s largest PF has done is a prototype for others to follow. Square can be seen as the standard bearer for all PFs; their success can be a sign of success for PFs worldwide.

"(The stock price) changed because Square reported earnings that proved their strategy and tactics, which were frowned on by Wall Street, actually worked in the quarter," says Todd Ablowitz, president of Double Diamond Group. "Square is doing exactly what we expected. Their massive investment in sales is paying off. I fail to see any segment of their business disappointing."

When Square’s stock price soared from $10.44 during trading Aug. 3 to $11.51 in after-hours trading, it was a powerful harbinger for the PF community. Square has been aggressive, but what the nation’s largest PF has done is a prototype for others to follow. Square can be seen as the standard bearer for all PFs; their success can be a sign of success for PFs worldwide.

#Brentrance: Mastercard Buys VocaLink, Now Rules Britannia ACH

MasterCard thinks the U.K. is a jolly good place to do business. With its $920 million purchase of processor VocaLink, the card brand gets a firm owned by 13 U.K. banks that did 11 billion transactions in 2015, but that gaudy number might be the milk and sugar in the cup of tea that is a platform it coveted.

The same day Visa made an ACH-related move by partnering with PayPal so the two mega brands putting their money in bank accounts is no coincidence. ACH represents 50 percent of total electronic payment flows across the world's 50 largest countries.

Mastercard thinks the U.K. is a jolly good place to do business. With its $920 million purchase of processor VocaLink, the card brand gets a firm owned by 13 U.K. banks that did 11 billion transactions in 2015, but that gaudy number might be the milk and sugar in the cup of tea that is a platform it coveted.

On China’s Payments SuperHighway, Regulators Stomp The Brakes And AsiaPay Hits The Gas

When you drive on rough roads you don't have to slow down, but you do steer more carefully, guiding your car to smoother surfaces. Chinese payment facilitator AsiaPay is welcoming China's recent regulation tightening as a move to help clean up the country's payments industry's fraud-infested reputation. AsiaPay is reading the new road sign as it zooms by, according to our interview with its CEO Joseph Chan, a key player in the massive payments market that is China.

How massive? In their 2015 report on global payments, Capgemini and the Royal Bank of Scotland said China's non-cash transaction volume growth in 2013 led the world's countries at 37 percent, with the region they call Emerging Asia (India, China, Hong Kong and other Asian countries) leading global regions with more than 21 percent growth. Alipay and WeChat are the dominant third party service providers in the online and mobile payments. ApplePay and SamsungPay have entered the market as well, though they use NFC rather than the QR code conduit favored by Alipay and WeChat.

When you drive on rough roads you don't have to slow down, but you do steer more carefully, guiding your car to smoother surfaces. Chinese payment facilitator AsiaPay is welcoming China's recent regulation tightening as a move to help clean up the country's payments industry's fraud-infested reputation. AsiaPay is reading the new road sign as it zooms by, according to our interview with its CEO Joseph Chan, a key player in the massive payments market that is China.

Global Mobile Brew Is Strong

Turkish coffee is almost as strong as Turkish use of mobile devices for banking and shopping and payments, but not as strong as the payments industry action in Europe. The Turks led a group of 15 countries in most of the categories of questions asked about mobile device usage for a recently released report on mobile banking, mobile shopping and mobile payments conducted for ING International by Ipsos.

The report is titled ING International Survey Mobile Banking 2016 but as ING economist Ian Bright explains, one thing has led to another, as it usually does in fintech, and banking only scratches the surface now, four years after its first mobile banking report.

Turkish coffee is almost as strong as Turkish use of mobile devices for banking and shopping and payments, but not as strong as the payments industry action in Europe. The Turks led a group of 15 countries in most of the categories of questions asked about mobile device usage for a recently released report on mobile banking, mobile shopping and mobile payments conducted for ING International by Ipsos.

Alipay To Begin Conquest Of Munich And Beyond

In two weeks, Chinese tourists landing at Munich Airport will be able to use coupons sent to them through their mobile devices by retailers in the terminals. They will get a notification, directions to the retailer with the coupon, then once they bring the item to the POS, have a bar code scanned without worrying over currency conversion.

Alipay, a mobile payment app run by Alibaba partner Ant Financial, will be accepted in all POS terminals run by German processor Wirecard, which struck a deal with the company that operates 69 shops inside the airport. Markus Eichinger, head of mobile services at Wirecard, which is acting as both acquiring bank and processor for Alipay, gave an interview to paymentfacilitator.com just after coming from the partnership's final testing session.

In two weeks, Chinese tourists landing at Munich Airport will be able to use coupons sent to them through their mobile devices by retailers in the terminals. They will get a notification, directions to the retailer with the coupon, then once they bring the item to the POS, have a bar code scanned without worrying over currency conversion.

It Was Hip To Be Square In Portland

Not only can small merchants ride the coming wave of mobile payments, they can make more in tips. That was part of the fun learned from a two-month Square promotion in Portland, Ore., that ended last week. The drive highlighted the company's NFC/chip readers in a marketing siege of a city chosen for the tactic because of its high implementation of the new Square hardware and its commerce counterculture.

Apple got in on the techfest because its wallet Apple Pay is the other side of the two-way connection Square needs to boost not only wallet use but comfort with wallet use. Apple hosted a merchant tutorial on Apple Pay in one of its stores one day during the Square campaign.

Not only can small merchants ride the coming wave of mobile payments, they can make more in tips. That was part of the fun learned from a two-month Square promotion in Portland, Ore., that ended last week. The drive highlighted the company's NFC/chip readers in a marketing siege of a city chosen for the tactic because of its high implementation of the new Square hardware and its commerce counterculture.

MasterCard Small Merchant Expansion Commitment Should Shake Up PF Game

Payment facilitators and payment facilitators to be: on your marks, get set…Go!

MasterCard on Monday (June 27) announced a plan to add 40 million micro and small merchants to its base in five years. Double Diamond Group president Todd Ablowitz said that spells huge opportunity for both existing payment facilitators and near-term startups. "This is staggeringly important," Ablowitz said.

Payment facilitators and payment facilitators to be: on your marks, get set…Go!

MasterCard on Monday (June 27) announced a plan to add 40 million micro and small merchants to its base in five years. Double Diamond Group president Todd Ablowitz said that spells huge opportunity for both existing payment facilitators and near-term startups.

"This is staggeringly important," Ablowitz said.

Gaming Payments Gets Serious: Tencent Drops $8.6 Billion On Game Firm

Of all of the various payments hotspots that payment facilitators need to focus on, gaming—and all of its in-app potential—may be the one of the most lucrative. Witness Tencent Holdings Ltd., which this week confirmed plans to drop $8.6 billion to buy an 84 percent slice of the Finnish maker of the Clash Of Clans mobile game.

Games generate one payment for the initial purchase—which, for a popular game, is tantalizing enough on its own—and then a potentially unlimited number of follow-on purchases as players purchase new weapons or characters or cheats or various upgrades. Game companies are generally great at creating the games, but they need help facilitating effortless payments within those games. Enter PFs.

Of all of the various payments hotspots that payment facilitators need to focus on, gaming—and all of its in-app potential—may be the one of the most lucrative. Witness Tencent Holdings Ltd., which this week confirmed plans to drop $8.6 billion to buy an 84 percent slice of the Finnish maker of the Clash Of Clans mobile game.

Will Police Take Payments During Traffic Stops?

For the payments geeks among us, transaction processing can be arresting. But in a bizarre twist, some police are doing both: arresting and processing payments and doing them both in the middle of a traffic stop on the side of the road. Will the familiar flashing-red-light refrain soon be "License, registration and Visa card, please?" In Oklahoma City, the answer might be "yes."

This all comes from a bid request that started with the Oklahoma Department of Public Safety to a Fort Worth supplier named ERAD Group Inc., which specializes in payment offerings for law enforcement.

For the payments geeks among us, transaction processing can be arresting. But in a bizarre twist, some police are doing both: arresting and processing payments and doing them both in the middle of a traffic stop on the side of the road. Will the familiar flashing-red-light refrain soon be "License, registration and Visa card, please?" In Oklahoma City, the answer might be "yes."

How To Get Cracking On Your PayFac-ing

There are at least two great reasons to jump into the payment facilitator game-- increased revenues and market share—and many many tools to help. One of those tools is advice from the hard-won success achieved by those who have made the leap.

In a session on the ins and outs of starting a payfac at the second annual Payment Facilitator Day at Transact16 in April, Kevin Harris of RunSignUp said training people was more of a challenge than software concerns, and David Weiss of Yapstone shared the difficulties of international expansion. Nick Starai of gateway tech company NMI told the audience to concentrate on the business they know best rather than focus on technological bells and whistles. The highlights of the discussion fill this week's paymentfacilitator.com podcast, the next best thing to having been there.

There are at least two great reasons to jump into the payment facilitator game-- increased revenues and market share—and many many tools to help. One of those tools is advice from the hard-won success achieved by those who have made the leap.

Apple Pay Announcement Looks Like A Zero But Could Be A Hero

As exciting as Apple’s annual World Wide Developers Conference can be, the news from Monday’s keynote seemed on its face sort of ho-hum for payment facilitators. The new abilities within the upcoming release of the iOS 10 mobile and macOS desktop software updates are for now merely more options that PFs have to consider along with their merchant clients. The long term view of these Apple payment moves is scintillating however, given the higher incomes of iOS and MacOS users and the huge gap between what they spend on apps compared to Android users.

The features will allow merchants to add Apple Pay to their Safari browser shopping portal’s payment suite, and for merchants to develop apps for iMessage users to use for P2P transactions. In the short term, there are challenges. Shoppers with desktops must have not only a Mac, for communicating with the iPhone or Apple Watch that authenticates the payment, but the Safari browser that Apple owns.

As exciting as Apple’s annual World Wide Developers Conference can be, the news from Monday’s keynote seemed on its face sort of ho-hum for payment facilitators. The new abilities within the upcoming release of the iOS 10 mobile and macOS desktop software updates are for now merely more options that PFs have to consider along with their merchant clients. The long term view of these Apple payment moves is scintillating however, given the higher incomes of iOS and MacOS users and the huge gap between what they spend on apps compared to Android users.

Alibaba-Backed PayTm Struggles With Global Payments. What Chance Do Others Have?

A brutal reminder of how convoluted and treacherous mobile cross-borders are today was shared by Paytm on Friday (June 10). That's when the Alibaba-backed wallet said that it can't be used for overseas payments based on current regulations, requiring instead that wallet users pay in Indian rupees.

Let's be clear. Paytm is no slouch among mobile wallets and it's backed by Alibaba—the multinational's multinational. If Paytm and its partners can't navigate payments from country to country, that's frightening. "While the mobile technology can create lower cost and friction free alternatives for cross border small value payments, the same is subject to licensing under FEMA (Foreign Exchange Management Act, 1999). Any cross border payments services by the payments bank will be offered subject to FEMA authorizations and RBI approvals. As such, the current Paytm Wallet cannot be used for overseas payments," the Paytm statement said. "As per the existing authorization, the wallet can only be used in India and any impression that the existing Prepaid Payment Instruments (PPI) semi closed wallet can directly used offshore/for cross border transactions is unintentional."

A brutal reminder of how convoluted and treacherous mobile cross-borders are today was shared by Paytm on Friday (June 10). That's when the Alibaba-backed wallet said that it can't be used for overseas payments based on current regulations, requiring instead that wallet users pay in Indian rupees.

Feds Peer Into Payments Regulatory Crystal Ball—And Get Headaches

For whatever consolation it offers, the feds overseeing payments-related regulatory issues are as apprehensive as payment facilitators. As the payments world is undergoing massive change in new and different ways of handling payments—an area where PFs lead—Justice and Treasury top brass are struggling to figure out the right ways to execute oversight.

Indeed, there's even talk of adopting a European-like saferoom approach, where startups have a limited window to explore and innovate without worrying about regulators cracking down. It's a saferoom in the sense that no idea is too risky to not be explored, even for a limited period of time. In other words, regulators are toying with the idea of whether it's sometimes best to not regulate at all.

For whatever consolation it offers, the feds overseeing payments-related regulatory issues are as apprehensive as payment facilitators. As the payments world is undergoing massive change in new and different ways of handling payments—an area where PFs lead—Justice and Treasury top brass are struggling to figure out the right ways to execute oversight.

PFs May Not Know Mobile Wallet Users As Well As They Think

When the new Auriemma Consulting Group Mobile Pay Tracker report was released on Tuesday (May 31), it delivered some surprises. For example, most mobile wallet consumers do not have their favorite (aka most used) card as the default card in their mobile wallet. Even in April 2016, most mobile users (57 percent) don't have the technology to do almost any mobile payments. The report also detailed the higher incomes of iOS users compared with Android.

Even one of the non-surprising details of the report—that tech brands are more trusted than financial brands-is interesting in its scope, with "banks/financial institutions" getting roughly one-third of the trust points awarded to Apple and performing only slightly better when compared with Google and Samsung. (Note: The exact phrasing of the question is unclear. If the choice was literally "banks/financial institutions," that might not be fair to compare a nameless vertical against specific brands. Had they, however, compared Chase and Wells Fargo to Apple and Google, that would have been more, please forgive me, apples-to-apples.)

When the new Auriemma Consulting Group Mobile Pay Tracker report was released on Tuesday (May 31), it delivered some surprises. For example, most mobile wallet consumers do not have their favorite (aka most used) card as the default card in their mobile wallet. Even in April 2016, most mobile users (57 percent) don't have the technology to do almost any mobile payments. The report also detailed the higher incomes of iOS users compared with Android.

EMV Really Screwing Up Apple Pay

Oh, what a tangled web we weave when EMV data we receive. As more major retail chains fully accept EMV payments, Apple Pay is being dealt some serious experience setbacks, such as being asked twice for price verification and being asked for fingerprint biometric authentication and then, a few screens later, a signature. Neither of those steps were part of the Apple Pay process until merchants switched on EMV.

To be clear, those time-wasting moves are not part of the Apple Pay process at all, but are superimposed after the Apple Pay transaction is complete and customers think they are done. The reason this is now happening is due to very strict interpretations of EMV rules—and the fact that the nature of the payment mechanism (beyond that it's contactless) is not always communicated to the POS. Hence, it must assume the worst. When two retailers—Trader Joe's and Whole Foods--last week made the switch through upgraded Verifone POS terminals, customers used to speedy Apple Pay experiences were literally being called back to the checkout lane to complete the additional keystrokes. Before, once Apple Pay's screen said "done" and displayed an animated checkmark, they were free to leave. Not so in an EMV world.

Oh, what a tangled web we weave when EMV data we receive. As more major retail chains fully accept EMV payments, Apple Pay is being dealt some serious experience setbacks, such as being asked twice for price verification and being asked for fingerprint biometric authentication and then, a few screens later, a signature. Neither of those steps were part of the Apple Pay process until merchants switched on EMV.

In Pizza Hut Asian Restaurants, A MasterCard Robot Takes Orders And Payments—With An Attitude

An interesting MasterCard experiment is going on now at some Pizza Hut restaurants in Asia, where life-size robots take orders and process payments, with the intent of letting more store associates perform more involved customer tasks. (If you'll recall, that was the same argument made for early self-checkout systems.) But what makes this effort different is that these robots are designed to sense emotions and to react accordingly.

Beyond the obvious questions—such as "Is the world ready for empathetic creatures trying to sell you stuffed crust toasted s'mores cookie pizzas?"—there are the implications of emotion-detecting robots named Pepper. ("The name Pepper was chosen because it is a word that is easy to say and understand across many languages and cultures," MasterCard said.) In this deployment, they are named Pepper. The company making these robots, SoftBank Robotics, has created a series of videos depicting their potential. The main video (in Japanese) is worth watching, but be prepared for some serious weirding-out, if my teen daughter will permit me to use that phrase.

An interesting MasterCard experiment is going on now at some Pizza Hut restaurants in Asia, where life-size robots take orders and process payments, with the intent of letting more store associates perform more involved customer tasks. (If you'll recall, that was the same argument made for early self-checkout systems.) But what makes this effort different is that these robots are designed to sense emotions and to react accordingly.

With A New Mission, Walmart Pay Goes Live In Arkansas, Texas

Now that Walmart no longer has to pretend to be support CurrentC—thanks to its effective demise, courtesy of MCX's concession to reality—the largest retail chain announced Monday (May 16) that it had rolled out Walmart Pay across 110 Walmart stores in Arkansas and 480 Walmart stores in Texas. Walmart Pay the concept was announced by the merchant back in December. Walmart Pay has been rolled out in a way very different than Walmart wanted to do a mobile payment, but it's a model that has been obviously shaped by Apple Pay.

Like Apple Pay, it supports "any major credit, debit, pre-paid or Walmart gift card." But unlike Apple Pay, it works across iOS and Android devices. And unlike Apple Pay and every other NFC payment method, it can work on a far wider range of phones—especially older phones—that do not support NFC. All the phone needs is the ability to download an app and enough of a camera to scan a QR code. But Walmart Pay suffers a major weakness that Apple Pay doesn't. As long as the shopper is willing to use the default card in Apple Pay, all that the shopper need do is hold the phone right above the card reader. It doesn't need to be connected to any network, nor does the shopper have to launch an app, key in a password or manipulate the app in any way. Contrast that with Walmart Pay, which requires the shopper to find and then open the Walmart app, select Walmart Pay and then manually activate the camera and then scan a register QR code—which as many shoppers will confirm, isn't always that easy to do on the first or second attempt.

Now that Walmart no longer has to pretend to be support CurrentC—thanks to its effective demise, courtesy of MCX's concession to reality—the largest retail chain announced Monday (May 16) that it had rolled out Walmart Pay across 110 Walmart stores in Arkansas and 480 Walmart stores in Texas. Walmart Pay the concept was announced by the merchant back in December. Walmart Pay has been rolled out in a way very different than Walmart wanted to do a mobile payment, but it's a model that has been obviously shaped by Apple Pay.

MCX Concedes The Obvious: CurrentC Is Dead. Indeed, It Was Never Really Alive

When MCX on Monday (May 16) issued a statement that "MCX will postpone a nationwide rollout of its CurrentC application," it was akin to U.S. presidential candidates who suspend their campaigns. It's a polite way of saying "it's over" without having to say those words outloud.

But for many reasons, CurrentC never had much of a chance, having been created in the most merchant-centric (OK, I'll admit it: Walmart-centric) manner possible. It's creation was to give retailers a way to sharply cut back interchange fees and it was being pushed by a merchant who was already paying among the very lowest interchange fee percentages of anyone.

When MCX on Monday (May 16) issued a statement that "MCX will postpone a nationwide rollout of its CurrentC application," it was akin to U.S. presidential candidates who suspend their campaigns. It's a polite way of saying "it's over" without having to say those words outloud.

In Australia, Apple Pay Boosts Credit Card, Deposit Account Applications

In Australia, the ANZ Banking Group found something strange happen after it started accepting Apple Pay. It experienced "a surge in applications for credit cards and deposit accounts" to such a degree that it "has forced the other major banks to re-enter negotiations" with Apple, according to a report in The Sydney Morning Herald. In other words, Australian shoppers found the idea of the NFC payment method so significant that they wanted to engage in non-Apple Pay-related banking functions.

"ANZ chief executive Shayne Elliott said at the bank's interim results last week that online credit card applications were up 20 per cent since the deal with Apple was announced on April 28," the story noted, adding that the figures "were the highest on record" and "more than double the average." Elliott was quoted as saying "that the higher level is continuing." This is consistent with much of what we've said about Apple Pay, that this huge a behavioral change needs to be a psychological shift. This will need to be a right-brain move—focused on emotions, intuition and imagination—rather than a left-brain (logic, analysis, linear) move. Bankers and payment professionals are notoriously left-brain people, while Apple is the quintessential right-brain company.

In Australia, the ANZ Banking Group found something strange happen after it started accepting Apple Pay. It experienced "a surge in applications for credit cards and deposit accounts" to such a degree that it "has forced the other major banks to re-enter negotiations" with Apple, according to a report in The Sydney Morning Herald. In other words, Australian shoppers found the idea of the NFC payment method so significant that they wanted to engage in non-Apple Pay-related banking functions.

New EMV Methods: Confusion To Reign Supreme

Visa introduced Quick Chip for EMV on April 19th and MasterCard quickly followed with the announcement of M/Chip Fast on April 21st. By speeding up how quickly the consumer can remove the card from the POS, these two networks have also increased complexity for the already complicated payment process as implemented by consumers, merchants, and issuers. Where once it was possible to have some confidence a card would work as long as the brand was displayed, life is now more complicated. Besides Swipe, Dip, and Tap, we now have Swipe, Hover (MST), Show (Chase Pay), Dip, Quick Dip, and Tap – to name a few.

Then there are is the question of compatibility. NFC won’t work at non-NFC terminals while a Samsung device with MST will. Swiping an EMV card forces a dip, but only at terminals that support EMV. I’m in payments and I have no idea what happens if I present an EMV enabled card within my Samsung Pay device and use MST to communicate it to a POS that only supports swipe and EMV – does it ask me to dip my phone?

Visa introduced Quick Chip for EMV on April 19th and MasterCard quickly followed with the announcement of M/Chip Fast on April 21st. By speeding up how quickly the consumer can remove the card from the POS, these two networks have also increased complexity for the already complicated payment process as implemented by consumers, merchants, and issuers. Where once it was possible to have some confidence a card would work as long as the brand was displayed, life is now more complicated. Besides Swipe, Dip, and Tap, we now have Swipe, Hover (MST), Show (Chase Pay), Dip, Quick Dip, and Tap – to name a few.

Purchases Made Via Tablets Plunging

Tablets still play a large role in retail purchases, as they are the most popular device for sales associates to use to do product demonstrations and often to perform in-aisle checkout. But on the other end of the transaction—the end where shoppers use their own tablets to make e-commerce purchases—the tablet is surrendering many of the purchases it briefly stole from smartphones. That's according to research recently published from Bizrate Insights.

The iPad specifically has seen a sharp and continual drop in how many purchases it processes, Bizrate said, dropping from control of about 70 percent of such purchases in 2013's Q3 down to 36 percent in Q116. "The decrease in the percentage of online sales taking place on a tablet is the result of the increasing utility of smartphones (screen size, website optimization, and improved cell phone coverage), which are nearly always at hand," said Hayley Silver, a Bizrate VP.

Tablets still play a large role in retail purchases, as they are the most popular device for sales associates to use to do product demonstrations and often to perform in-aisle checkout. But on the other end of the transaction—the end where shoppers use their own tablets to make e-commerce purchases—the tablet is surrendering many of the purchases it briefly stole from smartphones. That's according to research recently published from Bizrate Insights.

NYC Subways To Go Mobile Payment—In 2022 (Or Maybe A Bit Later)

You can't fight City Hall, nor can you apparently accelerate it. But mobile payments progress is still mobile payments progress and the county's largest mass transit system on Wednesday (April 13) committed to moving to mobile payments for all mass transit activity. But New York City's Metropolitan Transportation Authority (MTA) being the bureaucracy that it is, the RFP that it published Wednesday gives contractors "69 months" (five years and nine months) from the "Notice of Award date to substantial completion."

It's clearly not known how long it will be until that award date—which will follow a lengthy bid submission and evaluation process—but even if it happens this year, that still pushes the deployment to about 2022. Unless, of course, there are implementation delays. In New York City? What are the odds?

You can't fight City Hall, nor can you apparently accelerate it. But mobile payments progress is still mobile payments progress and the county's largest mass transit system on Wednesday (April 13) committed to moving to mobile payments for all mass transit activity. But New York City's Metropolitan Transportation Authority (MTA) being the bureaucracy that it is, the RFP that it published Wednesday gives contractors "69 months" (five years and nine months) from the "Notice of Award date to substantial completion."

Podcast: A Preview of Next Week’s Payment Facilitator Day ‘16

The 2nd Annual Payment Facilitator Day at the ETA TRANSACT 2016 will kick off Tuesday (April 19) in Las Vegas. This year’s theme is In Depth and On Target as the full-day event goal is to explore all of the relevant topics and ideas that are shaping the payment facilitator industry.

"It’s about payment facilitators, for payment facilitators and entities that want to become payment facilitators,” Todd Ablowitz said in this week’s PaymentFacilitator.com podcast. Event hosts, Todd Ablowitz and Deana Rich, dive into what to expect at PF Day ’16 and who will be there.

The 2nd Annual Payment Facilitator Day at the ETA TRANSACT 2016 will kick off Tuesday (April 19) in Las Vegas. This year’s theme is In Depth and On Target as the full-day event goal is to explore all of the relevant topics and ideas that are shaping the payment facilitator industry.

Chase’s Removal Of ATM Limits Is The Right Idea But For The Wrong Device

Moving more and increasingly complex payments capabilities to ATMs and away from bank branches is a good thing, as we've argued before with ATM ApplePay and with MasterCard's patent application to turn ATMs into full-fledged POS units. But there is a line where it doesn't make sense and JPMorgan Chase's current debate about removing per-day cash limits crosses that line.

First of all, unlike mobile devices, ATMs have a very physical limitation: Once the cash that some human loaded into the ATM runs out, the ATM loses much of its most-desired functionality. Sure, it can still accept deposits and reveal balances, but not that much more. To be candid, those particular services are much better handled by a mobile app. (Note: That is true up to the limit of mobile deposits which, I assure you, I'll get back to shortly.) The ATM's most powerful function is to dispense cash, as that is something mobile apps can't do. When the money is gone, the ATM becomes rather pointless.

Moving more and increasingly complex payments capabilities to ATMs and away from bank branches is a good thing, as we've argued before with ATM ApplePay and with MasterCard's patent application to turn ATMs into full-fledged POS units. But there is a line where it doesn't make sense and JPMorgan Chase's current debate about removing per-day cash limits crosses that line.

Finally, An Event Where PF Is The Focus, Not A Footnote

Given how important payment facilitators are to the rapidly emerging and morphing payments landscape in 2016, it's stunning how few places there are to explore the implications of being a PF today. Plenty of meetings and symposium exist for chatting about payments in general or virtual currencies or mobile payments, but the opportunities to really delve deeply into PF issues are practically non-existent. Until now.

If you can swing by Las Vegas on April 19, PaymentFacilatator.com—in conjunction with Double Diamond Group, Rich Consulting and the Electronic Transactions Association—will present our version of Everything You Ever Wanted To Know About PFs, But Were Too Geeky To Ask. Officially, though, it's dubbed simply TRANSACT 16’s Payment Facilitator Day – In Depth and On Target.

Given how important payment facilitators are to the rapidly emerging and morphing payments landscape in 2016, it's stunning how few places there are to explore the implications of being a PF today. Plenty of meetings and symposium exist for chatting about payments in general or virtual currencies or mobile payments, but the opportunities to really delve deeply into PF issues are practically non-existent. Until now.

Banks Simply Can’t Handle Technology As Well As PFs

We have made the argument before that when it comes to mastering the technology required for next-generation payments, the structure of banks doesn't permit it and the attitude of bankers won't allow it. Seems that we're not alone. McKinsey & Company has now come to the identical conclusion.

In a fascinating report, McKinsey's argues that bank's technological intransigence—which creates the economic hole that payment facilitators are uniquely qualified to fill—dates back hundreds of years before credit cards. "Banking has historically been one of the business sectors most resistant to disruption by technology. Since the first mortgage was issued in England in the 11th century, banks have built robust businesses with multiple moats: ubiquitous distribution through branches; unique expertise such as credit underwriting underpinned by both data and judgment; even the special status of being regulated institutions that supply credit, the lifeblood of economic growth, and have sovereign insurance for their liabilities (deposits)," the McKinsey report said.

We have made the argument before that when it comes to mastering the technology required for next-generation payments, the structure of banks doesn't permit it and the attitude of bankers won't allow it. Seems that we're not alone. McKinsey & Company has now come to the identical conclusion.

When Payments Disruptions Hit Nashville, Things Are Looking Good

In the world of payments and transportation, the initial phrase of a disruptive technology is to eat away at the user base of traditional payment and transportation methods. But you know things are being really disrupted when those traditional forces embrace the disruption as a way to improve their offerings. In Nashville, Tennessee, that has now happened with Uber and Lyft. As those services disrupt and transform the very notion of urban transportation, mobile payments are going along for the ride—and it's a beautiful one-way trip.

These are the exact kinds of changes that payment facilitators will deliver. And as cities and their commuters rapidly move into next-generation payments, the demands will expand to all kinds of businesses—especially small merchants—who will now have a ready-made customer base itching for new payment methods, but with no way to deliver. Enter their regional PF. Transportation is arguably the most important sector to modernize because the repetition involved (a regular commuter can use such a service 10 times a week, with five roundtrips) is the best way to quickly get a population comfortable with new payment procedures.

In the world of payments and transportation, the initial phrase of a disruptive technology is to eat away at the user base of traditional payment and transportation methods. But you know things are being really disrupted when those traditional forces embrace the disruption as a way to improve their offerings. In Nashville, Tennessee, that has now happened with Uber and Lyft. As those services disrupt and transform the very notion of urban transportation, mobile payments are going along for the ride—and it's a beautiful one-way trip. These are the exact kinds of changes that payment facilitators will deliver.

Square’s Design Miracle: EMV, NFC And An Amazing $49 Pricetag

FastCompany recently took a fascinating deep-dive into the strategy and tactics behind Square's design. It's a terrific read, if only to explain the design genius behind a thoroughly under-appreciated feat of engineering. It's certainly no surprise that the Square team would have taken so much time perfecting it's design, which delivers a beautiful—yes, I think it's beautiful—fast and truly effortless interface. The biggest surprise here is how difficult it was to deliver the price they needed to hit.

It's a longheld project reality that you can have your timeline, your price or your scope, but never all three. Such realities don't cut it at Square. What is going on here is Square making a strategic longterm bet on mobile payments. Their top brass felt that someone has to suck it up price-wise to get the market moving. It's a loss-leader mentality, but not in the quintessential razor-and-razor-blade mode. It's more in the "we'll pay a lot more now for a big slice of this worthless pie, betting that we can make this pie worth a bundle if we make the first move." And Square's engineering team has succeeded in a big way, not merely in capturing marketshare but in moving the entire market.

FastCompany recently took a fascinating deep-dive into the strategy and tactics behind Square's design. It's a terrific read, if only to explain the design genius behind a thoroughly under-appreciated feat of engineering. It's certainly no surprise that the Square team would have taken so much time perfecting it's design, which delivers a beautiful—yes, I think it's beautiful—fast and truly effortless interface. The biggest surprise here is how difficult it was to deliver the price they needed to hit.

Facebook Wants A Piece Of In-Store Payments

Finding experimental features hidden in code is like reviewing patents for clues as to a company's future plans. Given that most trialed ideas—let alone patented ones that never get to trials—are never productized. That said, code in a product suggests a somewhat more serious interest. And it was inside code of the latest version of Facebook's Messenger that Facebook planted some hints of plans to enable in-store payments.

To be fair, there's as yet no concrete details about how this may materialize nor how Facebook would fulfill in-store product purchases. Still, it's intriguing. "Tucked inside the code for Facebook’s Messenger are clues for how the chat app plans to become a marketplace, including an unreleased feature that lets people use the app to buy things in stores," said a story in The Information. "But the unreleased features suggest Messenger’s push to shape itself as a social commerce platform is accelerating more quickly than previously known. And the interest in store purchases is notable. The software includes commands allowing a user to 'pay in person' or 'pay directly in Messenger when you pick up the item' with 'no cash needed.' One developer who has worked with Facebook said Messenger has a large team working on integrating online and offline services, like using the app for purchasing items in retail stores."

Finding experimental features hidden in code is like reviewing patents for clues as to a company's future plans. Given that most trialed ideas—let alone patented ones that never get to trials—are never productized. That said, code in a product suggests a somewhat more serious interest. And it was inside code of the latest version of Facebook's Messenger that Facebook planted some hints of plans to enable in-store payments.

MasterCard Uses Golf To Demo Virtual Reality

MasterCard, which has sometimes struggled with Internet-of-Things (IoT) efforts, used a golf tournament to (dear readers, please forgive me for what I am about to perpetrate) gulf the digital divide from putting green on a golf course's putting green. (Whatever you just said, I probably deserved it.)

In all fairness, MasterCard put on an impressive virtual reality demo at its sponsored Arnold Palmer Invitational. "While out on the course, golfers might simply tap their golf glove at the point-of-sale to buy refreshments from the beverage cart," said a MasterCard statement. "MasterCard is taking it a step further with a concept designed in collaboration with Wearality, an Orlando-based start-up that designs virtual reality glasses and wearables, to allow consumers to identify an item within the experience - such as a golf shirt - and buy it without leaving the virtual world." Let's put this into context.

MasterCard, which has sometimes struggled with Internet-of-Things (IoT) efforts, used a golf tournament to (dear readers, please forgive me for what I am about to perpetrate) gulf the digital divide from putting green on a golf course's putting green. (Whatever you just said, I probably deserved it.)

Alibaba-Backed Paytm Gets Into Movie Theater Tickets—But They Have Bigger Things In Mind

India payments powerhouse—and Alibaba-financed—Paytm has cut a deal with India's largest multiplex movie theater chain (PVR) to sell movie tickets in mobile and online. Why make the move now, with physical movie theaters a quickly dying industry? Those tickets will unleash a lot more one night at the cinema.

Why make a movie theater play now, when even the most aggressive movie industry defenders concede that the shared physical viewing of films will surrender to the better pricing and much stronger convenience of watching films at home or via mobile devices? It's a smart move. Once shoppers have completed the digital movie transition, mobile payment options will surround them, assuming they haven't already paid Amazon or Netflix directly. But by tying in physical movie payments with Paytm, they are making the mobile connection in a physical context. When those consumers make the inevitable move to a more digital experience, the account and the mindset will already be established. Better yet, Paytm will know the entertainment habits/choices made by those consumers, allowing for very effective marketing moves later.

India payments powerhouse—and Alibaba-financed—Paytm has cut a deal with India's largest multiplex movie theater chain (PVR) to sell movie tickets in mobile and online. Why make the move now, with physical movie theaters a quickly dying industry? Those tickets will unleash a lot more one night at the cinema.

MasterCard Draws Its Line In Silicon: MobileWallet Vendors, Go This Far And No Farther

Speaking at the Barclays Emerging Payments Forum on Tuesday (March 15), MasterCard CEO Ajay Banga told attendees that MasterCard has no problem with the many mobile wallets today, as long as they don't cross the line and try to change key parts of payments infrastructure.

Banga said that current mobile wallets are supporting MC's goal of converting cash and checks into digital transactions. As long as they keep doing that, Banga will be happy to play along. "I will support everything so long as it protects the ecosystem and does not damage the relationship between merchants, banks, these (mobile wallet) players and us. The moment it changes that and it starts playing with the data, then I’ve got a problem. If it's basically a passthrough and it's not affecting the ecosystem and it's actually attacking cash, I'm all for it. If you do things that make it complicated for the ecosystem to work cleanly, I'm not going to be supportive."

Speaking at the Barclays Emerging Payments Forum on Tuesday (March 15), MasterCard CEO Ajay Banga told attendees that MasterCard has no problem with the many mobile wallets today, as long as they don't cross the line and try to change key parts of payments infrastructure.

With Better-Than-Expected Earnings From Square, Comes A Sharp Spike In Its Non-Payment Business

Square late on Wednesday (March 9) posted earnings that topped analyst estimates and briefly sent its stock soaring 3.7 percent in after-market trading. But of potentially greater interest to the payment facilitator community is that Square's non-payment revenue hit 15 percent, which is about triple what it was when Square launched its IPO.

In Q415, Square reported gross payment volume (GPV) soaring 47 percent—year over year—to $10.2 billion. The most surprising stat, though, was from Square's Software and Data Products group. In that same quarter, that software/data products revenue shot up 52 percent (compared with the prior quarter), to $22 million. "From payment processing to point of sale, hardware to software, business financing to payroll and more, we have built a cohesive commerce ecosystem that helps sellers start, run, and grow their businesses," Square said in an unattributed portion of its news release. "This makes us unique and stands in marked contrast to the rest of the industry, which forces sellers to laboriously piece together hardware, software, and payments services from many different vendors."

Square late on Wednesday (March 9) posted earnings that topped analyst estimates and briefly sent its stock soaring 3.7 percent in after-market trading. But of potentially greater interest to the payment facilitator community is that Square's non-payment revenue hit 15 percent, which is about triple what it was when Square launched its IPO.

ExxonMobil Now Accepts ApplePay, But Rejects NFC. Bad Move

Wanting to avoid having to purchase and install NFC-friendly card readers at its stations, ExxonMobil has opted to use ApplePay but only as an in-app method, from within the petro company's own app. Although it might make short-term economic sense from ExxonMobil's perspective, it may be a big hit with over the long-term and it could damage some consumer perceptions of NFC payment convenience.

ApplePay has several solid user-experience advantages and cashiers at retailers that accept a lot of ApplePay transactions (think Whole Foods, TraderJoe's or McDonald's) typically find it the fastest payment experience. The service will be offered initially at 6,000 Exxon and Mobil gas stations in 46 states, with an additional 2,000 stores slated to join by this summer.

Wanting to avoid having to purchase and install NFC-friendly card readers at its stations, ExxonMobil has opted to use ApplePay but only as an in-app method, from within the petro company's own app. Although it might make short-term economic sense from ExxonMobil's perspective, it may be a big hit with over the long-term and it could damage some consumer perceptions of NFC payment convenience.

States Seek Reasonable-Sounding—But Logistically All-But-Impossible—Payment Rules

Some state legislatures are pushing some potential laws aimed at giving consumers—and their heirs—more control over their digital lives. But in doing so, some are preparing to impose rules on merchants that neither the merchant—nor the merchant's payment facilitator—are likely to be able to obey.

The thrust of the rules—under consideration in states such as Oregon and Connecticut—are honorable. They are intended to avoid the heart-wrenching stories of a parent or other next-of-kin unable to access a deceased loved one's e-mails or social media interactions. But the legislation goes beyond that in some cases, granting consumers much more control over their digital footprints. In Connecticut, for example, the bill "would allow consumers to ask stores you no longer do business with to delete your personal information so that your personal information would not be compromised in the event that the company is hacked," according to a report from NBC Connecticut. That's where things get dicey.

Some state legislatures are pushing some potential laws aimed at giving consumers—and their heirs—more control over their digital lives. But in doing so, some are preparing to impose rules on merchants that neither the merchant—nor the merchant's payment facilitator—are likely to be able to obey.

Atlanta Fed Folk Not Wildly Optimistic About Mobile Payments

Although people who work for various Fed chapters don't usually engage in blunt talks publicly, a bunch working for the Federal Reserve Bank of Atlanta released some intriguing 2016 predictions this week. Among them are dire expectations for mobile payments and ACH Same-Day plus a belief that EMV will drive down the number of U.S. ATMs.

To be clear, the Fed folk stressed that delaying the predictions until the year was almost one-sixth over was a deliberate choice: "By waiting a couple of months to release ours, we're hoping they will end up being more accurate than usual." They also stressed that these are not technically Fed predictions, as they come from one just group of Fed employees: members of the Retail Payments Risk Forum of the Federal Reserve Bank of Atlanta.

Although people who work for various Fed chapters don't usually engage in blunt talks publicly, a bunch working for the Federal Reserve Bank of Atlanta released some intriguing 2016 predictions this week. Among them are dire expectations for mobile payments and ACH Same-Day plus a belief that EMV will drive down the number of U.S. ATMs.

Think You’re So Tough, Apple? Meet Bankers In China

Payments professionals who have lost battle after battle fighting with Apple Pay's people on getting reasonable fees know that Apple sees its lock on iPhones and iPads as a reason to not bother having to negotiate on rates. You want in? Pay up. Well, you can take some solace in Apple getting a taste of its own apple-flavored medicine.

Feeling a strong strategic need to get into the government-managed Chinese market, Apple found itself on the weaker end of negotiations with bankers. With government backing, there was little fear of being undercut by a rival bank. The result? This report from Caixin Online: "Apple will earn fees from Chinese banks when customers use its mobile payment service for purchases, but they will be about half of what the U.S. tech giant charges in the United States."

Payments professionals who have lost battle after battle fighting with Apple Pay's people on getting reasonable fees know that Apple sees its lock on iPhones and iPads as a reason to not bother having to negotiate on rates. You want in? Pay up. Well, you can take some solace in Apple getting a taste of its own apple-flavored medicine.

A Shopper’s Checkout Friction Resistance Level Changes Hourly

The idea that shoppers abandon shopping carts when they run into checkout friction has been said so often that it is approaching cliché status. The truth is much more nuanced and complicated. The level of checkout-friction-resistance changes—for the identical consumer—repeatedly during the merchant interaction.

Let's consider that abandoned shopping cart consumer. They ran into some site stumbling block, got frustrated and bolted. Let's further assume that the shopper is somehow reeled back in, most likely with a friendly-phrased text message. Whatever level of resistance/tolerance that shopper had before they abandoned, it's now ten times more sensitive. A hassle that they would have tolerated before is now cause to run away—and they won't be coming back. But let's tweak that scenario slightly. This time, that same consumer runs into some friction, which is that a price seems too high or the choice of color/style is too limited. That shopper then does some Google searching, visits a bunch of other sites and ultimately comes to the conclusion that your offering's price/color/style is the best available. That consumer sheepishly comes back to complete the purchase. The situation is now flipped. That consumer's resistance to checkout friction is now dramatically lower, perhaps ten times lower. Having discovered that your deal is the best they'll get, they will put up with far more hurdles than they would have before they did that research.

The idea that shoppers abandon shopping carts when they run into checkout friction has been said so often that it is approaching cliché status. The truth is much more nuanced and complicated. The level of checkout-friction-resistance changes—for the identical consumer—repeatedly during the merchant interaction.

Why The ChasePay/Starbucks Deal Makes A Difference

When Chase revealed on Tuesday (Feb. 23) that it had cut a deal with Starbucks to incorporate ChasePay into the SBUX mobile app this year, it signaled that ChasePay needs to be taken seriously. More precisely, it means that the mocha-merchant mobile-powerbroker takes ChasePay seriously, which is perhaps the best endorsement it could get.

ChasePay's previous big deal was with MCX, which, to be fair, isn't exactly the endorsement you want in mobile payments to be taken seriously. But for those care about mobile money—and who in this space doesn't?—nobody disses Starbucks.

When Chase revealed on Tuesday (Feb. 23) that it had cut a deal with Starbucks to incorporate ChasePay into the SBUX mobile app this year, it signaled that ChasePay needs to be taken seriously. More precisely, it means that the mocha-merchant mobile-powerbroker takes ChasePay seriously, which is perhaps the best endorsement it could get.

Patent Wrap: MasterCard’s Plan To Turn An ATM Into A POS

In this week’s look at interesting payments patents issued and/or applied for, PayPal and MasterCard inventors are our payments patent people with a trio of invention applications all filed on Feb. 18. MasterCard's filing envisions using all of those strategically ATMs for a lot more than cash-dispensing. This makes even more sense given that cash-dispensing will become increasingly unnecessary as in-person purchases go digital.

Meanwhile, PayPal wants to aggregate purchases from multiple merchants in one quasi-session. And MasterCard also has an idea for a way to use payment data to identify physically-proximate consumers with similar buying patterns.

In this week’s look at interesting payments patents issued and/or applied for, PayPal and MasterCard inventors are our payments patent people with a trio of invention applications all filed on Feb. 18. MasterCard's filing envisions using all of those strategically ATMs for a lot more than cash-dispensing. This makes even more sense given that cash-dispensing will become increasingly unnecessary as in-person purchases go digital.

Global Payments Wrap: MasterCard’s Selfie—And Other Biometric—Authentication—Trials Do Well With The Dutch

This week’s global payments news takes us to the Netherlands, France, India and Brazil. As MasterCard promises to continue and extend its selfie biometric authentications trials in various countries, it found impressively positive results in one region. Dutch participants, given the option of either a fingerprint or a selfie in lieu of a password during a six-month trial, decidedly went bio.

Visa is rolling out Visa Checkout to France, India, Ireland, Poland, Spain and the United Kingdom later this year, the card brand announced. And Paytm is close to finalising technology outsourcing contracts worth Rs 125 crore to manage the back-end for its payments bank which the company expects to roll out in August

This week’s global payments news takes us to the Netherlands, France, India and Brazil. As MasterCard promises to continue and extend its selfie biometric authentications trials in various countries, it found impressively positive results in one region. Dutch participants, given the option of either a fingerprint or a selfie in lieu of a password during a six-month trial, decidedly went bio.

To A PF, The World Of Parking Is Doing Anything But Standing Still

Pity the poor standalone parking meter, nestled between communities' sidewalks and streets. A dozen years ago, five million were scattered across the U.S.. Today, according to the International Parking Institute, no one even bothers to count them any more. New York City is preparing to abandon its 85,000 meters to a PF-fueled mobile system, joining Los Angeles, Boston, Washington, D.C., Atlanta, Indianapolis and Pittsburgh with similar plans.

The movement is hardly surprising. Many of those metal poles could only handle coins and retrofitting them for magstripe—let alone EMV or NFC—is expensive and short-sighted. To get much of the money from those poles requires a municipal employee/contractor to physically move from pole to pole. The system for fining those who disobey the parking rules is equally inefficient. Enter Jon Ziglar, the CEO of PF Parkmobile, whose company is behind many of those municipal parking meter obliteration efforts. His vision is far cleaner. A mobile app pays for the space and can even text a driver when the time is about to run out. But this gets better. Parkmobile is in pilots today with Ford and BMW to integrate the app directly into cars. Marry the efficiency of a mobile app with a smartcar that can park itself and parking takes on a delightfully 21st Century shine.

Pity the poor standalone parking meter, nestled between communities' sidewalks and streets. A dozen years ago, five million were scattered across the U.S.. Today, according to the International Parking Institute, no one even bothers to count them any more. New York City is preparing to abandon its 85,000 meters to a PF-fueled mobile system, joining Los Angeles, Boston, Washington, D.C., Atlanta, Indianapolis and Pittsburgh with similar plans.

PF Flint Mobile Shuts Down, Turns Business Over To Stripe

Payment facilitator Flint Mobile's payments business was effectively shuttered on Monday (Feb. 15), seemingly a victim of a payments player coming into an already-developed market too late and with insufficiently deep pockets. The beginning of the end happened on Feb. 5, when "Flint abruptly suspended all new signups and closed all card processing for current accounts. Users who tried to process cards were met with a message saying, 'You have exceeded your processing limits.'"

A visit to the site late on Wednesday (Feb. 17) by PaymentFacilitator.com found a seemingly active homepage, but clicking on the Sign Up Now button delivered the note "New signups suspended. We are currently transitioning to a new platform. We appreciate your patience." Alas, it seems that patience will serve no purpose. Although it appeared that company executives, between Feb. 5 and Feb. 17, were indeed trying to find a way to keep the business going, it didn't work out.

Payment facilitator Flint Mobile's payments business was effectively shuttered on Monday (Feb. 15), seemingly a victim of a payments player coming into an already-developed market too late and with insufficiently deep pockets. The beginning of the end happened on Feb. 5, when "Flint abruptly suspended all new signups and closed all card processing for current accounts. Users who tried to process cards were met with a message saying, 'You have exceeded your processing limits.'"

Javelin Report Finds What PFs Already Know: Faster Onboarding Is Critical

Onboarding speed isn't merely a consumer nice-to-have, according to a new Javelin study, but it has a concrete impact on whether customers engage at all and how many dollars they entrust.

"Banks and credit unions can boost the profitability of a new customer an estimated $212 a year with effective onboarding that emphasizes engagement," the report said. "Fully engaged customers are four times more likely than inactive customers to identify the new bank or credit union as their primary FI. Fully engaged customers not only 2.7 times more financial accounts than inactive customers at the new FI, but they also intend to open more accounts in the next 12 months." How much more? Three accounts versus an average of one-half of one account.

Onboarding speed isn't merely a consumer nice-to-have, according to a new Javelin study, but it has a concrete impact on whether customers engage at all and how many dollars they entrust.

We’re Not Playing Games. Actually, We Are. In-Game Payments Beget More In-Game Payments

An Israeli mobile game analytics firm has dived deeply into in-game payments and has issued a report on what makes pinball wizards pay.

The report from Soomla notes that average revenue per daily active user (ARPDAU) "is as low as 9¢, but it varies drastically across genres, with board and racing games averaging to 28-32¢. However, adventure, arcade, role playing and educational games generate less than 3¢ in ARPDAU."What is much more interesting is how rapidly users are willing to pay in a second game once they have paid in the first. Logically, that makes sense, in that someone who has already shown a willingness to buy will probably buy again. But what is unexpected is how rapidly those figures are climbing.

An Israeli mobile game analytics firm has dived deeply into in-game payments and has issued a report on what makes pinball wizards pay.

PCI Council’s New EMV Payment Token Rules Are Worth Reading Closely

The PCI Council in late December rolled out its security rules for token service providers for EMV payment tokens, which overwhelmingly deals with mobile transactions. Today, the card brands handle the vast majority of tokens issued, but the council expects that to sharply change now that EMVCo has released the specification. Given the importance of tokens to payment facilitators, it's worth a read.

One of the fun things that this document does, in pure PCI Council fashion, is deliver more acronyms. Yes, these are brand acronyms. (No, no need to thank them.) One is TDE, for Token Data Environment. An important term—not an acronym yet, sadly—is Payment Token Data, which has a very specific definition: "Covers a number of discrete data elements, including the Payment Token and related data as defined in the EMV Payment Tokenisation Specification Technical Framework, which include the Payment Token Expiry Date, Payment Token Requestor ID, Payment Token Assurance Level and Payment Token Assurance Data."

The PCI Council in late December rolled out its security rules for token service providers for EMV payment tokens, which overwhelmingly deals with mobile transactions. Today, the card brands handle the vast majority of tokens issued, but the council expects that to sharply change now that EMVCo has released the specification. Given the importance of tokens to payment facilitators, it's worth a read.

Payments Patent Wrap: MC Wants To Take The Where In Wearables And Add A Who

In this week’s look at interesting payments patents issued and/or applied for, MasterCard is our guest of honor for a pair of patent applications, a little patent pending power. MasterCard on Feb. 11 applied for this patent as a way to better authenticate anyone trying to make a purchase via a wearable device. The idea starts with the system grabbing a reference sample related to the cardholder and payment card info.

In another patent application, MasterCard wants to use mobile purchases to dictate—in realtime—what news stories the shopper will be shown.

In this week’s look at interesting payments patents issued and/or applied for, MasterCard is our guest of honor for a pair of patent applications, a little patent pending power. MasterCard on Feb. 11 applied for this patent as a way to better authenticate anyone trying to make a purchase via a wearable device. The idea starts with the system grabbing a reference sample related to the cardholder and payment card info.

Card Data Breaches Are Unseen Mobile Payments Killers

As payment facilitators see an increasingly high percentage of their transactions going through mobile, it's critical to acknowledge the many ways mobile payments could be harm. For example, I got a new debit card last month. Nothing unusual about that in itself. However, I may add that this is the third card in less than a year from the same issuer.

The reason: card data breaches. A few years ago, this would have been a minor inconvenience, but today a fresh card results in the myriad of digital connections I have being unceremoniously cut off. For the last couple of weeks, I've been revisiting the experience of a few months back when I had to re-establish card details with Netflix, Amazon, Spotify, Starbucks, my gym membership and countless others. It's frankly a huge pain in the ass. Again.

As payment facilitators see an increasingly high percentage of their transactions going through mobile, it's critical to acknowledge the many ways mobile payments could be harm. For example, I got a new debit card last month. Nothing unusual about that in itself. However, I may add that this is the third card in less than a year from the same issuer.

Visa Offering More Goodies For PF Merchant Magicians

When Visa on Tuesday (Feb. 9) officially rolled out its Visa Consumer Transaction Controls program, it provided puzzle pieces that payment facilitators are much better positioned to use than others in the payments arena.

What the program does is it allows account holders "to set simple, convenient, and effective spending controls, receive transaction alerts, or even temporarily suspend their accounts using a simple on/off feature," Visa said. "Spending controls can be applied to different transaction types, date ranges, or overall card spending to offer consumers visibility and control over their money. Alerts can be sent by text, mobile app, or email in when transactions take place." The magic is that these are capabilities that Visa will support, but others will have to put the programming effort into integrating these apps, mobile devices and anything else. The apps that PF merchants will be using can leverage these or not. Few merchants will see much reason to put in the development talent to make them happen as they don't directly boost sales. That's where PF magic comes in.

When Visa on Tuesday (Feb. 9) officially rolled out its Visa Consumer Transaction Controls program, it provided puzzle pieces that payment facilitators are much better positioned to use than others in the payments arena.

The Perception Game: A Non-Security Glitch Makes Consumers Worried About Security

Mobile payments are still young enough that consumers are still making up their hands with how safe and secure they are. Remember that this is a classic perception vs. reality situation. It doesn't matter that mobile payments are in reality far more secure than many credit cards today. Think about a non-EMV Visa credit using signature compared with Apple Pay's biometric authentication and secure element and we're talking Bambi Vs. Godzilla. But anything new and different feels less secure.

Another important factor in the security perception game, though, is robustness and uptime. If the experience feels solid and trustworthy, those attributes will also color the perception of security. And that's why this past week is troubling.

Mobile payments are still young enough that consumers are still making up their hands with how safe and secure they are. Remember that this is a classic perception vs. reality situation. It doesn't matter that mobile payments are in reality far more secure than many credit cards today. Think about a non-EMV Visa credit using signature compared with Apple Pay's biometric authentication and secure element and we're talking Bambi Vs. Godzilla. But anything new and different feels less secure. Another important factor in the security perception game, though, is robustness and uptime. If the experience feels solid and trustworthy, those attributes will also color the perception of security. And that's why this past week is troubling.

Global Payments Wrap: Bad News For MasterCard Out Of Australia

This week's global payments news takes us to Australia, the U.K., the Czech Republic, India and Hong Kong. Australia's ANZ Mobile Pay opts for Visa over MasterCard. Following a Visa-only deal announced from NAB Pay late last month, the ANZ move means double bad Australian bank moves for MasterCard.

American Express Global Business Travel's new system promises to "locate all travelers worldwide, visualize which travelers are closest to a potential travel disruption and enables travel and risk managers to not only locate impacted travelers but also communicate with them in real-time. The GBT solution enables companies to communicate with traveller via SMS, email, or a mobile application, and prioritize aid to those travelers with the greatest need," said an Amex statement.

This week's global payments news takes us to Australia, the U.K., the Czech Republic, India and Hong Kong. Australia's ANZ Mobile Pay opts for Visa over MasterCard. Following a Visa-only deal announced from NAB Pay late last month, the ANZ move means double bad Australian bank moves for MasterCard.

Payments Patent Wrap: How Does A Payment Device Know Whose Voice Command To Obey?

In this week's look at interesting payments patents issued and/or applied for, Amazon and Visa are the guests of honor. Amazon was issued a patent on Tuesday (Feb. 9) for a way to help POS and other systems differentiate different people, when they are all giving voice commands. Amazon: POS, listen to the sound of my voice. No, not her voice. My voice.

Visa was issued a patent on Tuesday (Feb. 9) for ways to identify one user that works with multiple payments devices. The problem? "Each portable payment device associated with a single account within a payment processing system is distinguished using track data. The track data from the portable payment device is read at each of a plurality of merchant point of sale terminals (POS). Rather than relying on the PAN alone, a merchant may utilizes the track data, or a proxy thereof, as the unique identifier for the portable payment device," Visa's patent filing said.

In this week's look at interesting payments patents issued and/or applied for, Amazon and Visa are the guests of honor. Amazon was issued a patent on Tuesday (Feb. 9) for a way to help POS and other systems differentiate different people, when they are all giving voice commands. Amazon: POS, listen to the sound of my voice. No, not her voice. My voice.

The Bank ATM Deals With ApplePay Promise What NFC Needs: Normalcy

When the news hit recently that Bank of America and Wells Fargo were preparing to integrate Apple Pay into their ATMs—on top of an existing deal with Android Pay—it promised a healthy dose of what NFC wallets need more than anything else right now: Normalcy.

At a practical level, the banks can position this as little more than an attempt to eventually phase out the plastic ATM card, not to mention then greenbacks they represent—which, of course, is true. But payment facilitators and others are relying on mobile wallets becoming more than a novelty for the geekiest of shoppers at a handful of the most tech-friendly retailers. For them, the ATM move has delightful potential.

When the news hit recently that Bank of America and Wells Fargo were preparing to integrate Apple Pay into their ATMs—on top of an existing deal with Android Pay—it promised a healthy dose of what NFC wallets need more than anything else right now: Normalcy.

Payments Patent Wrap: PayPal Seeks One Honest Room

Our weekly look at the most interesting—or perplexing—Patents or Patents Pending from the payments industry. PayPal on Thursday (Feb. 4) applied for a patent that would determine the security level of a set of coordinates and remember it, allowing for less stringent authentication and security when making a purchase that place.

Also, EBay on Feb. 4 (Thursday) filed for a Patent on a way for truck fleets and consumers to more intelligently purchase fuel. And MasterCard on Thursday (Feb. 4) filed for a patent application that would look at non-compliant merchants and track activities to find other naughty players. The card brand is operating on the rationale that thieves tend to hang out together—and that shoppers who buy from one illegal store will likely go to another disreputable merchant if the first one is shut down.

Our weekly look at the most interesting—or perplexing—Patents or Patents Pending from the payments industry. PayPal on Thursday (Feb. 4) applied for a patent that would determine the security level of a set of coordinates and remember it, allowing for less stringent authentication and security when making a purchase that place.

The PF Space In Mexico: Salary Debit Cards The Key To The Future

The Mexican payment space is growing rapidly, but it's a country where cash still accounts for some 85 percent of all transactions. It's communities are cursed with large pockets of extreme poverty and banks are viewed with high suspicion.

Although, at a glance, this land seems an ill fit for payment facilitators to flourish, it's a market ripe for growth. And it's businesses that are overwhelmingly paying employees with debit cards that could be the key. "In Mexico, cash is still king, by far," said Ignacio Hidalgo, the director of consulting for a Mexican PF called Marketing Ideas and Technology (MIT, pronounced mēt). Hidalgo said the current environment is simply far more conducive to cash than payment cards or mobile money.

The Mexican payment space is growing rapidly, but it's a country where cash still accounts for some 85 percent of all transactions. It's communities are cursed with large pockets of extreme poverty and banks are viewed with high suspicion.

Event-Booker Placefull Converts To PF, Creates A Sizable Profit Event

One of the key advantages to being a payment facilitator is that it is the desired brand of the merchant that appears on the customer's statement. That certainly delivers the expected marketing boost (brand reinforcement) for the merchant, but event-booking PF Placefull is fond of that brand appearance for a very different reason: far fewer chargebacks.

"We have always wanted the merchant brand to have the most presence. One of the things we didn't like with a Paypal or Stripe experience—other than it's not a pretty-looking site—is that we never wanted to have a broken experience," said Placefull CEO Ryan Hamlin. "Now it’s ABC Bowling that will appear on the bill statement. The amount of disputes and, frankly, fraud was much higher before because people would see something on their statement and would call and dispute it."

One of the key advantages to being a payment facilitator is that it is the desired brand of the merchant that appears on the customer's statement. That certainly delivers the expected marketing boost (brand reinforcement) for the merchant, but event-booking PF Placefull is fond of that brand appearance for a very different reason: far fewer chargebacks.

National Australia Bank Pushing Android NFC Payments

This week's global payments report hits Australia, Asia, U.K., Hong Kong and China. The National Australia Bank (NAB) has updated its mobile banking app to enable Visa Debit account holders to make tap-and-go payments..

Asian Shoppers Driving Global Stat: 34 Percent Online Transactions Now Mobile. Asian markets took an outsized amount of influence on the global stats. U.K. Banks Change Rules For Reimbursing Errored Online Payments. The circumstances are limited, but in cases where there is no dispute, the funds now have to be replaced within 20 working days.

This week's global payments report hits Australia, Asia, U.K., Hong Kong and China. The National Australia Bank (NAB) has updated its mobile banking app to enable Visa Debit account holders to make tap-and-go payments.

Ford’s Mobile Wallet TipToes Into IoT Payments

When Ford rolled out its mobile wallet this month, it took to heart the concept of contextual payments, focusing on paying for parking from within the vehicle as well as leasing alternative vehicles. But it's view of mobile was using a smartphone, rather than making the payments automobile-embedded. Although iPhones may weigh much less than two tons, few Apple Pay transactions will work at 80 MPH.

"FordPass, part of Ford’s transformation into an auto and mobility company, aims to do for car owners what iTunes did for music fans," Ford said. "Launching in April, FordPass reimagines the relationship between automaker and consumer. Membership is free—whether you own a Ford vehicle or not—by registering online." *Sigh* It's not a good sign for business when Visa talks about integrating payments in cars and Ford thinks it can accomplish anything with a mobile app on someone else's hardware. It owns the cars and that's where its customers are. Why not place the payments apparatus right there in the car's dashboard, in a place where rivals can't reach?

When Ford rolled out its mobile wallet this month, it took to heart the concept of contextual payments, focusing on paying for parking from within the vehicle as well as leasing alternative vehicles. But it's view of mobile was using a smartphone, rather than making the payments automobile-embedded. Although iPhones may weigh much less than two tons, few Apple Pay transactions will work at 80 MPH.

Patent Wrap: Why Limit POS Communications To Payments?, Wonders MasterCard

This week's wrapup of the latest in payments patent applications and patents issued.

MasterCard: Why Limit POS Communications To Payments? In a U.S. Patent application filed by MasterCard on Jan. 14, the card brand envisioned using POS data connections as a more flexible communication system, with messages going "to an entity that is neither a payment account issuer nor the transaction acquirer."

This week's wrapup of the latest in payments patent applications and patents issued. MasterCard: Why Limit POS Communications To Payments?

Can Starbucks Pull A Payments Pied Piper With Musical Mobile Money?

Starbucks is working with Spotify on a music deal, one where Starbucks customers will be able to easily download songs from the Starbucks playlist. Here's the hook: It's a backdoor route to more mobile payments.

Before you dismiss this as too bizarre to have any payments impact, music has had some surprising influences on retail purchases. To be precise, it's not the music itself as much as allowing the shopper to be in control of the music.

Starbucks is working with Spotify on a music deal, one where Starbucks customers will be able to easily download songs from the Starbucks playlist. Here's the hook: It's a backdoor route to more mobile payments.

Global Wrap: In China, 360,000 Mobile Payment Viruses Detected In 2015

This week's wrapup of payments news around the globe brings us to Brazil, China, Nigeria, the Netherlands, France, India, Canada and the U.K..

In China, 360,000 Mobile Payment Viruses Detected In 2015. As many as 25.05 million mobile phone users in 2015 became victims of various viruses in China amid the growing popularity of mobile payment in the country, according to a report from the Tencent Research Institute and reported by ChinaDaily.com.

This week's wrapup of payments news around the globe brings us to Brazil, China, Nigeria, the Netherlands, France, India, Canada and the U.K..

Carrier Billing’s New Friends May Prove To Be PF Good Fortune

Carrier billing is hardly a new concept, but some coverage has focused on renewed carrier billing efforts from the likes of Microsoft, Apple, Amazon and Google. Part of the reason that carrier billing has not, thus far, gone very far is that most consumers trust their carriers less than a convicted child molester politician. But carrier trust and likability aside, carrier billing has—on paper—a lot going for it. And payment facilitators are uniquely positioned to benefit from this move.

Carrier billing sidesteps some security concerns because the payment details reside with a company that already has them. Although that's certainly not risk-free, it's a zero increase in risk. More precisely, it's less risky than turning over payment credentials to an unknown merchant for a one-time transaction, especially if it's a faceless e-commerce site. From the merchant's perspective, there is the potential for much lower fees as interchange—in the traditional sense—is gone, especially if the consumer pays that carrier bill via check or, much more likely, ACH.

Carrier billing is hardly a new concept, but some coverage has focused on renewed carrier billing efforts from the likes of Microsoft, Apple, Amazon and Google. Part of the reason that carrier billing has not, thus far, gone very far is that most consumers trust their carriers less than a convicted child molester politician. But carrier trust and likability aside, carrier billing has—on paper—a lot going for it. And payment facilitators are uniquely positioned to benefit from this move.

How Obamacare Ushered In PF-Friendly Payments

Payment facilitator Softheon is an old hand at handling healthcare insurance matters, "dating back to the Romneycare days," said Softheon CEO Eugene Sayan. But Softheon these days—contrary to the PF reputation of focusing only on small businesses—works with the biggest of the U.S. insurance companies, processing a healthy percentage of Obamacare health plans, along with quite a few state plans.

What makes Softheon's move especially interesting is that it was able to position a new system for payments on top of a new system for insurance. "We took payment reform and piggybacked it onto healthcare reform," Sayan said. The twist is that when Softheon started with healthcare insurance, payments had almost universally been done by check, with a smattering of direct withdrawals. Using payment cards for insurance premiums was unheard of then. Thanks to Softheon and others, that's no longer true.

Payment facilitator Softheon is an old hand at handling healthcare insurance matters, "dating back to the Romneycare days," said Softheon CEO Eugene Sayan. But Softheon these days—contrary to the PF reputation of focusing only on small businesses—works with the biggest of the U.S. insurance companies, processing a healthy percentage of Obamacare health plans, along with quite a few state plans.

Small Biz Mobile Weakness Is PF Strength

Forget online banking, from old-fashioned desktops and tablets. New stats show that transactions and financial interactions from mobile-only banking alone last year surpassed those done in physical branches, according to figures published Tuesday (Jan. 12) by Javelin Strategy and Research.

But as much as this reaffirms conventional wisdom that mobile is taking over almost all forms of payments, it’s far from universal. This banking mobile embrace is distinctly not happening with smaller community banks as they mirror the same mobile problems that are plaguing small businesses in just about every other vertical. And therein lies the PF opportunity.

Forget online banking, from old-fashioned desktops and tablets. New stats show that transactions and financial interactions from mobile-only banking alone last year surpassed those done in physical branches, according to figures published Tuesday (Jan. 12) by Javelin Strategy and Research. But as much as this reaffirms conventional wisdom that mobile is taking over almost all forms of payments, it’s far from universal. This banking mobile embrace is distinctly not happening with smaller community banks as they mirror the same mobile problems that are plaguing small businesses in just about every other vertical. And therein lies the PF opportunity.

MasterCard’s Payments-Integrated Fridge Leaves Futurists Cold

When MasterCard used the Consumer Electronic Show on Tuesday (Jan. 5) to unveil its Groceries By MasterCard program, it was an all-too-common payments trend: the introduction of an interesting product with long-term potential, but with the initial version being so limited as to be almost pointless.

The idea behind the Groceries introduction is compelling. The concept is that the card brand would integrate payments deep within Samsung’s new Family Hub refrigerator, a first-class example of the Internet Of Things becoming reality. That is until you start asking questions.

When MasterCard used the Consumer Electronic Show on Tuesday (Jan. 5) to unveil its Groceries By MasterCard program, it was an all-too-common payments trend: the introduction of an interesting product with long-term potential, but with the initial version being so limited as to be almost pointless.

With Lyft Investment, Is GM Getting Out Of The Car Business Or Are Cars Getting Out Of The GM Business?

When Lyft announced on Monday (Jan. 4) that it had just closed a $1 billion round of funding—which included $500 million from General Motors—it struck some as puzzling. Why would an automaker like GM want a big chunk of a car-on-demand service? Did Toyota ever make a huge strategic invest in Yellow Cab? The answer lies in huge imminent changes within the car industry, as it inches its way from a product business to a service business.

The other half-billion came from more traditional investors, with the Kingdom Holding Company dropping $100 million (bringing Kingdom's total Lyft investment to $250 million) and the rest coming from Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba. This all brings Lyft's current valuation to about $5.5 billion. But where's the strategic link between a car-maker and a ride-sharer? That's where things get interesting.

When Lyft announced on Monday (Jan. 4) that it had just closed a $1 billion round of funding—which included $500 million from General Motors—it struck some as puzzling. Why would an automaker like GM want a big chunk of a car-on-demand service? Did Toyota ever make a huge strategic invest in Yellow Cab? The answer lies in huge imminent changes within the car industry, as it inches its way from a product business to a service business.

Apple Envisions P2P In Every Possible Way

With Apple's P2P rollout and partnerships getting closer, it's not surprising that Apple was granted a Patent for the approach last month. But what was not expected was how inclusive and extensive Cupertino envisions P2P being, with the capability integrated into almost every iPhone function.

"It’s clear that Apple is planning to provide an OS-wide payments integration that provides merchants with marketing benefits such as the ability to promote certain deals directly into the OS, such as geo-location based promotions into Maps, or via e-mails or instant messages, all with the ability to compete purchase/pre-order with one click based on Apple Pay enrollment and identity information stored on the device," said Rick Oglesby, a senior analyst with payments consulting firm Double Diamond Group, Oglesby argues that this is the logical next move for Apple, as Apple Pay moves into its second-year year with growing market maturity and acceptance.

With Apple's P2P rollout and partnerships getting closer, it's not surprising that Apple was granted a Patent for the approach last month. But what was not expected was how inclusive and extensive Cupertino envisions P2P being, with the capability integrated into almost every iPhone function.

The Confusing Side Of Chase Pay

When Chase rolled out Chase Pay late last year, it risked customer confusion because it was adding a new payment mechanism to the Chase mobile packages already offered. Chase customers already have a Chase Visa card and, based on Chase’s recommendation, more than a million of those cards are already loaded into Apple Pay. Now Chase Pay will be automatically added to the Chase mobile app that already has 21 million active Chase customers, which guarantees there will be a significant overlap with the users of Apple Pay. The goal of Chase Pay is to have all 21 million Chase customers use Chase Pay with their existing Chase-issued credit, debit, and prepaid cards for in-store payments, which of course means they will need to learn how to use Chase Pay.

Cardholders will retain all the same rewards and consumer protections using Chase Pay as they have with their existing cards. Currently the Chase web site identifies the primary benefit as merchant discounts. But Chase customers that already have Chase cards provisioned into Apple Pay or Android Pay will confront an impossibly confusing choice relative to acceptance. Since Chase Pay will have a limited acceptance footprint that is different than the limited footprint associated with the NFC-based competitors, it strikes Mercator that a customer will simply become even more unsure what mobile app is accepted at which merchant locations and will revert instead to the tried and true physical card.

When Chase rolled out Chase Pay late last year, it risked customer confusion because it was adding a new payment mechanism to the Chase mobile packages already offered. Chase customers already have a Chase Visa card and, based on Chase’s recommendation, more than a million of those cards are already loaded into Apple Pay. Now Chase Pay will be automatically added to the Chase mobile app that already has 21 million active Chase customers, which guarantees there will be a significant overlap with the users of Apple Pay. The goal of Chase Pay is to have all 21 million Chase customers use Chase Pay with their existing Chase-issued credit, debit, and prepaid cards for in-store payments, which of course means they will need to learn how to use Chase Pay.

Why Are Merchants So Afraid Of Mobile Payments?

With all of the hoopla surrounding mobile payments, there is often little attention paid to the pragmatic obstacles faced by retailers in the field. And those obstacles are causing a river of fear, loathing and more fear among merchants when they consider mobile payments. Today, the ease in which a customer can order a pizza is becoming almost as important as the recipe for the sauce. But when it comes to mobile, it's all about ordering, loyalty, and offers—pretty much everything but payment. Why is payment not top of mind? From the chain’s perspective, it's an ugly topics about increased costs and added complexities. For many of my restaurant clients, mobile payments cause more problems than it solves.

Let's not beat around the bush: there is loathing among the restaurant industry when it comes to payment card processing and the associated costs. They still are angry about EMV. I am constantly being asked what can be done with technology to reduce or mitigate these costs. "Can the delivery driver swipe a card at the customer's door? Will that help? If the customer orders online, but picks up their pizza in the restaurant, can we just authorize the transaction online and then cancel it and re-do it in the restaurant to get a card present rate? Can we look at alternative forms of payment that will reduce our overall payment processing costs?" And while these are all good ideas, each one comes with technical and operational challenges that are non-trivial and, in some cases, can make the situation worse than before.

With all of the hoopla surrounding mobile payments, there is often little attention paid to the pragmatic obstacles faced by retailers in the field. And those obstacles are causing a river of fear, loathing and more fear among merchants when they consider mobile payments. Today, the ease in which a customer can order a pizza is becoming almost as important as the recipe for the sauce. But when it comes to mobile, it's all about ordering, loyalty, and offers—pretty much everything but payment. Why is payment not top of mind? From the chain’s perspective, it's an ugly topics about increased costs and added complexities. For many of my restaurant clients, mobile payments cause more problems than it solves.

Payment Patent Package: Using Beacons To Shrewdly Choose Checkout Lanes

This week's holiday-theme gragbag of payments patents and patents pending focuses on privacy—and why no one should have it. PayPal was issued a Patent on Tuesday (Jan. 5) for a way to use retailer-based wireless beacons to calculate how much a shopper is buying and to then send them to the best checkout lane. It may or may not be the best lane for that shopper, but it will be the best to move the greatest number of customers out as quickly as possible. The patent argued that the good of the many outweighs the good of the few.

"At various merchant locations, such as a merchant's retail store, a user may browse items and/or services for sale from the merchant and select various items/services for purchase from the merchant. These items/services may be grouped in areas together, such as a produce or bakery of a shopping market or a computers or televisions section of an electronics store. Based on the amount of items/services purchased, the user may spend a different amount of time completing a checkout and payment. For example, purchasing one bag of apples may be very quick; however, purchasing enough vegetables, meat, condiments, and hamburger buns for a barbeque may take a considerably larger amount of time," the Patent said.

This week's holiday-theme gragbag of payments patents and patents pending focuses on privacy—and why no one should have it. PayPal was issued a Patent on Tuesday (Jan. 5) for a way to use retailer-based wireless beacons to calculate how much a shopper is buying and to then send them to the best checkout lane. It may or may not be the best lane for that shopper, but it will be the best to move the greatest number of customers out as quickly as possible. The patent argued that the good of the many outweighs the good of the few.

Global Wrap: Visa Europe Falling Out Of Love With Bitcoin

In Visa Europe's end-of-the-year payments wrap, it went out of its way to indicate that when it comes to virtual currencies, the Euro cardbrand has a roving eye.

"When 2015 arrived, a lot of innovation chatter in Fintech focused on Bitcoin, but as we leave the year, that focus has shifted substantially to the blockchain. If we think back to how it was perceived a year ago and then how it is understood today, it’s clear that another transformation is happening," the Visa Europe post said. "2015 has turned blockchain into something the industry has to live with. It is no longer a choice anymore. Recent news speculating about the identity of its creator and the formalisation of virtual money as a commodity, just makes it more real than ever before."

In Visa Europe's end-of-the-year payments wrap, it went out of its way to indicate that when it comes to virtual currencies, the Euro cardbrand has a roving eye.

Is TargetPay/WalmartPay A Return To Payments Yesteryear?

When word came out last month that Target was preparing its own mobile wallet app called TargetPay, which followed Walmart's confirmed Walmartpay, which itself followed the announcement of ChasePay, it started to feel as though the payments world was de-evolving into an earlier era.

In the days before Visa and MasterCard came to dominance, almost every major retailer had their own payment card (the Macy's card, the Bloomingdale's card). From a customer experience perspective, it became clear that allowing shoppers to pay for everything with just one or two cards would much more effectively encourage plastic purchases. Fast-forward now to mobile payments in 2016. We are now seeing two distinct camps: the one-for-all-and-all-for-one camp featuring Google Pay, Apple Pay, PayPal and potentially even MCX's CurrentC; and the one-for-one group with WalmartPay, TargetPay and Starbucks. (To be precise, Starbucks is a footnote here, given its use of ApplePay.)

When word came out last month that Target was preparing its own mobile wallet app called TargetPay, which followed Walmart's confirmed Walmartpay, which itself followed the announcement of ChasePay, it started to feel as though the payments world was de-evolving into an earlier era.

Walmart Pay: For The Retailer Who’s Given Up Trying To Get His Way

When Walmart last week introduced Walmart Pay, it was shown to be a simple app that would accept "any major payment type" but it would only work at Walmart. In short, it was the last thing that interchange-fee-hating Walmart wanted to do, especially in the mobile world. MCX's original vision, a merchant utopia where transactions were done in the non-interchange grab-the-money-directly-from-the-shopper's-bank-account universe and one app was used at thousands of different merchant stores, was Walmart's dream.

Mike Cook is the Walmart Senior VP/Assistant Treasurer who initiated the idea of MCX and pushed it so aggressively that many involved—and especially those who chose to not be involved—said the name virtually stood for Mike Cook Exchange. When Walmart Pay was announced, it was Cook whose name was on a statement issued to the media. Said Cook: "We remain committed to MCX, and recently launched acceptance of CurrentC in all of our locations in the Columbus market. We view Walmart Pay and CurrentC as complementary mobile payments solutions, and expect the two to build off each other’s success." Walmart expects "the two to build off each other's success"? If Walmart had even the slightest confidence that MCX and CurrentC were going to enjoy even a modicum of success, Walmart Pay wouldn't have been rolled out. It's true they will support both—there's not a lot of reason to not do so—but Walmart Pay is everything Walmart didn't want to do.

When Walmart last week introduced Walmart Pay, it was shown to be a simple app that would accept "any major payment type" but it would only work at Walmart. In short, it was the last thing that interchange-fee-hating Walmart wanted to do, especially in the mobile world. MCX's original vision, a merchant utopia where transactions were done in the non-interchange grab-the-money-directly-from-the-shopper's-bank-account universe and one app was used at thousands of different merchant stores, was Walmart's dream.

‘Twas Two Months After Liability Shift And At Every Store, Not A Merchant Was Dipping, Not Even A.C. Moore

It's one of the payments industry's worst-kept secrets that EMV merchant acceptance has been nothing shy of dreadful and the reasons for that are many. But an intriguing survey by the independent ConsumerWorld has put some numbers and quite a few names on the naughty/nice list of EMV supporters. It seems that a liability shift these days can only get a cardbrand so far.

In exploring almost 50 of the largest national and regional retail brands between Dec. 1 and Dec. 5, ConsumerWorld found that although almost all had installed EMV-friendly terminals (RadioShack was the only holdout), 75 percent of them had not yet been activated.

It's one of the payments industry's worst-kept secrets that EMV merchant acceptance has been nothing shy of dreadful and the reasons for that are many. But an intriguing survey by the independent ConsumerWorld has put some numbers and quite a few names on the naughty/nice list of EMV supporters. It seems that a liability shift these days can only get a cardbrand so far.

Global Wrap: Russia Offers Card Brand Alternative, Citi Guts Loyalty Benefits In Australia

This week's reports—from Russia, Taiwan, Australia, China, Singapore, Sri Lanka and Canada— show the continued shifts in payments strategies across the globe.

Russian Banks Issue First Payment Alternative To Visa, MasterCard. The move on Tuesday (Dec. 15) reveals the Mir card, which translates to "peace," "world" and "Bite me, U.S. card brands." According to a story in The Rakyat Post, Mir was issued "by a string of banks, among them Gazprombank, Rossiya bank and others blacklisted by the West following Moscow’s annexation of Crimea from Ukraine last year."

This week's reports—from Russia, Taiwan, Australia, China, Singapore, Sri Lanka and Canada— show the continued shifts in payments strategies across the globe.

Deloitte: Ignorance Isn’t Bliss. It’s Killing Mobile Payments

On Wednesday (Dec. 9), Deloitte released a major mobile report and concluded that mobile payments is suffering from a payments industry self-inflicted wound: an almost criminal lack of shopper and store associate education about mobile payments.

This is one of those good news/bad news situations. The good news is if the payments industry leaders act smart, this problem can not only be solved, but reversed. Consumer and store employee education will sharply boost mobile payments usage—and that will on top of a continual influx of new mobile shoppers as more people upgrade to NFC-friendly smartphones. The bad news is—when was the last time you saw a lot of payments industry leaders acting smart?

On Wednesday (Dec. 9), Deloitte released a major mobile report and concluded that mobile payments is suffering from a payments industry self-inflicted wound: an almost criminal lack of shopper and store associate education about mobile payments.

Gift Cards Are Soaring. Keep Gifting, But For Heavens Sake, Stop Carding

A report released Tuesday (Dec. 8) projected U.S. gift card spend will hit $130 billion in 2015, an increase of more than six percent compared with last year. The stats from the ninth annual CEB TowerGroup report were hardly surprising, so why note it? Is it time the industry seriously considering changing the name of gift cards?

The stored value mechanisms are increasingly likely to be digital. And unlike their payment card counterparts—which even in Apple Pay appear as pictures of their plastic rectangular historical selves—the so-called giftcards are running away from their plastic ancestry. And run quickly they should. The next step will be P2P transactions, with a parent or a friend zapping someone $100 that can only be spent at Walgreens. Shortly after that, the gift transaction might be limited to not a specific store, but to a product category. Why? Let's say a parent is sending money to a college-attending offspring and wants the money going to grocery fruits and vegetables and not beer and music.

A report released Tuesday (Dec. 8) projected U.S. gift card spend will hit $130 billion in 2015, an increase of more than six percent compared with last year. The stats from the ninth annual CEB TowerGroup report were hardly surprising, so why note it? Is it time the industry seriously considering changing the name of gift cards?

SamsungPay Admits It Won’t Deliver Wearable Payments Until Next Year

Just what the world of mobile payments needs to boost consumer confidence: Missed delivery deadlines. In a Tweet reply to a consumer, SamsungMobile US has confirmed that SamsungPay didn't make its November '15 promised U.S. payment support for the wearable GearS2 smartwatch. The Tweet apologized for the delay—without explaining its cause—and promised that SamsungPay will happen "in 2016. Stay tuned for more information."

This is especially problematic given that Samsung pushed the payments capabilities as it sold those watches. The fallout from this delay doesn't only hurt Samsung. When an industry segment is as young as mobile payments, we can't afford these kinds of delays. Why is it so damaging? Mobile payments demand a change in behavior, which is hard enough on its own. But what happens when those watch owners get frustrated by their inability to make payments? It will feed their fears that mobile payments really doesn't work and that it's too risky an experiment with which to entrust their hard-earned money.

Just what the world of mobile payments needs to boost consumer confidence: Missed delivery deadlines. In a Tweet reply to a consumer, SamsungMobile US has confirmed that SamsungPay didn't make its November '15 promised U.S. payment support for the wearable GearS2 smartwatch. The Tweet apologized for the delay—without explaining its cause—and promised that SamsungPay will happen "in 2016. Stay tuned for more information."

Payment Patent Potpourri: MasterCard Wants To Combine Purchase History With Police Files

Patents and Patent Pendings issued give a fascinating glimpse into the thoughts, strategies and possible future product plans of payments company executives. Although many issued patents never morph into products, someone thought the idea was worth preserving as an option.

But it can also include plenty of "What the heck were they smoking?" ideas. This week's batch of Patents and Patent Pendings—from Visa, MasterCard, Paypal and eBay—doesn't disappoint.

Patents and Patent Pendings issued give a fascinating glimpse into the thoughts, strategies and possible future product plans of payments company executives. Although many issued patents never morph into products, someone thought the idea was worth preserving as an option. But it can also include plenty of "What the heck were they smoking?" ideas. This week's batch of Patents and Patent Pendings—from Visa, MasterCard, Paypal and eBay—doesn't disappoint.

Global Wrap: In Australia, MC Exec Lashes Out At Apple/Amex Deal

This week's global payments report has investments from Mexico, India and the U.K., an Australian cyber currency IPO delayed for the fifth time, a Canadian Amex small merchant initiative and a MasterCard exec lashing out at the Apple/Amex deal in Australia.

There's more fallout from Apple's decision to launch in Australia (and Canada, for that matter) only with American Express cards. This time, it's from a MasterCard exec crying foul, arguing that regulators take a more lax regulatory position with Amex than with other card brands. Eddie Grobler, division president of MasterCard Australasia, said "Apple Pay launching in Australia with Amex proprietary cards was a symptom of its ability to charge merchants much higher fees than Visa or MasterCard and therefore having much fatter margins to share with Apple, which has been demanding a cut of the fees paid to banks before allowing them onto Apple Pay."

This week's global payments report has investments from Mexico, India and the U.K., an Australian cyber currency IPO delayed for the fifth time, a Canadian Amex small merchant initiative and a MasterCard exec lashing out at the Apple/Amex deal in Australia.

RentMoola Deal Signals Major Upheaval In The Rental World

In the world of payment facilitators, it's hard to envision a segment more in need of payments updates than apartment rentals—one of the last nature preserves for the American Check. A deal announced on Tuesday (Dec. 1) between RentMoola and MasterCard is a very optimistic sign.

The deal itself is simple, but the potential implications are anything but. The deal positions MasterCard as RentMoola's preferred payment brand in the U.S. and Canada, which that tenants and condo owners get an unspecified preferred rate "as well as (again, unspecified) rewards with exclusive offers." This arrangement will include MasterPass "in early 2016," which presumably means any time before July. Replacing checks with payment cards is a step in the right direction, but where rental payments can really shake things up is when the process bypasses the landlord.

In the world of payment facilitators, it's hard to envision a segment more in need of payments updates than apartment rentals—one of the last nature preserves for the American Check. A deal announced on Tuesday (Dec. 1) between RentMoola and MasterCard is a very optimistic sign.

Amex Quietly Shuts Down Its Small Biz Saturday Credit Offers

For the last five years, American Express has championed its Small Business Saturday campaign the day after Black Friday, an attempt to get shoppers to refocus their attention on small local businesses. But this year, it quietly dropped a credit it gave to shoppers who participated (the amounts varied, but it was $30 last year).

Amex confirmed that it halted the incentives and said that it had replaced the cash with other program elements. Amex spokesperson Sravanthi Agrawal listed some of what they are doing instead of issuing the credits. The small business initiative is a very good idea, but when trying to persuade shoppers to change their retail habits, there is little—nay, there is nothing—more effective than a direct cash credit. No number of Neighborhood Campion programs or community events is going to be nearly as persuasive as a $30 credit going directly to the shopper.

For the last five years, American Express has championed its Small Business Saturday campaign the day after Black Friday, an attempt to get shoppers to refocus their attention on small local businesses. But this year, it quietly dropped a credit it gave to shoppers who participated (the amounts varied, but it was $30 last year).

Payment Patent Potpourri: PayPal and MasterCard Get Creative On Authentication, Plus Can Thunder Predict Transactions?

The U.S. Patent Office has been busy approving some wacky payment ideas and we're going to periodically tell you about some of our favorites. The winners this week are two unrelated ideas on mobile-based authentication from PayPal and MasterCard—including the length of a shopper's finger, how they walk and bits of their voice conversations—plus a MasterCard idea on exploring weather-to-purchase correlations on an individualized basis.

This Patent, issued on Tuesday (Dec. 1), is based on the length of a consumer's finger in a secondary fashion. What it actually does is ask the user to create a specific drawing, a task that will be done in a unique way by consumers because of their hand designs and other factors.

The U.S. Patent Office has been busy approving some wacky payment ideas and we're going to periodically tell you about some of our favorites. The winners this week are two unrelated ideas on mobile-based authentication from PayPal and MasterCard—including the length of a shopper's finger, how they walk and bits of their voice conversations—plus a MasterCard idea on exploring weather-to-purchase correlations on an individualized basis.

MasterCard Survey Finds That Australians Prefer NFC Over Cash. But That’s Not The Whole Story

In a survey that MasterCard commissioned in Australia, most participants said that they preferred contactless payments compared with cash. But the fineprint tells a different—and more perplexing—story. The card brand said the survey audience was "1,005 Australians aged between 18-64 years old, who have a credit or debit card." Nothing about them having an NFC-friendly smartphone, which is an important detail when gauging the interest and acceptance of contactless payments.

Of those surveyed, only 64 percent said they preferred contactless to cash, which means 36 percent still preferred cash. (See why it's critical to know if they even have the ability to do mobile payments?) Even worse, it wasn't a reference to all cash payments, but it was limited to "small transactions under a $100 instead of entering their PIN," MasterCard said. That raises the question of what would happen to that 64 percent stat when it tops $100 and PIN-entry becomes an issue? Does paper money regain its favored spot in Australian consumer wallets?

In a survey that MasterCard commissioned in Australia, most participants said that they preferred contactless payments compared with cash. But the fineprint tells a different—and more perplexing—story.

Use Apple Pay, Get Free Rides On The London Underground

The only viable long-term way to get shoppers to change their preferred payments method is to give them a reason to do so. Whether that's a discount for using NFC rather than plastic or greenbacks, coupons/discounts that are only available using a specific payment method or some other perk, consumers need to get something concrete. This is the bulk of the message that MCX is screaming. Someone at Apple is paying attention.

With its U.K. rollout, MasterCard announced free Apple Pay travel days until the end of the year, but only on Mondays. Technically, the fares aren't free but riders will have those fares reimbursed. "Customers can travel on Tube, buses, tram, DLR, London Overground and most National Rail services in London," said a MasterCard statement. "From a standing start to today, over 220 million journeys have been made using contactless bank cards and devices with over one million contactless journeys made every day. Currently, contactless journeys made across all modes make up nearly 25 percent of pay as you go journeys." More to the point, though, those contactless payments have generated non-travel contactless payments.

The only viable long-term way to get shoppers to change their preferred payments method is to give them a reason to do so. Whether that's a discount for using NFC rather than plastic or greenbacks, coupons/discounts that are only available using a specific payment method or some other perk, consumers need to get something concrete. This is the bulk of the message that MCX is screaming. Someone at Apple is paying attention.

Global Wrap: WeChat Unveils Overseas Social Payments, The Importance Of Amex In Australia

The first week of December shows a lot more international payments activity, with this week's news spotlighting shifts in Australia, China, the Netherlands, Africa and Germany.

When Apple Pay was launched in Australia last month, the fact that only Amex cards were supported was unusual. (And statements from MasterCard that cash in Australia is losing to mobile and contactless raised more questions than they answered.) But some of the explanations for that situation are now becoming clear.

The first week of December shows a lot more international payments activity, with this week's news spotlighting shifts in Australia, China, the Netherlands, Africa and Germany.

WeChat Cuts Global Money Transfer Deal With Western Union

In a deal that could make Tencent-owned social media platform WeChat into a serious payments player, WeChat announced Tuesday (Nov. 17) a deal with Western Union that allows WeChat's U.S. users to send money cross-border to 200 countries and territories, all while riding Western Union's rails.

With conflicting laws, industry regulations and security concerns, simplified global money transfers has been a top PF priority. "Consumers are able to fund the money transfer utilizing a debit card, credit card or bank account and easily direct the funds to a Western Union retail agent location around the world, and to a mobile wallet or bank account where available," said a joint statement from WeChat and Western Union. "WeChat together with its sister product Weixin in China had over 650 million of monthly active user accounts at end of September 2015."

In a deal that could make Tencent-owned social media platform WeChat into a serious payments player, WeChat announced Tuesday (Nov. 17) a deal with Western Union that allows WeChat's U.S. users to send money cross-border to 200 countries and territories, all while riding Western Union's rails.

MasterCard Thinks It Can Standardize Mobile Loyalty. And It Might Be Right

For mobile payments to move into the massive adoption phase, some version of loyalty/couponing will be essential. Otherwise, once the novelty wears off, there are simply no sustainable reasons for shoppers to stick with mobile. But with every mobile player preparing to somehow push loyalty, the chance of having conflicting incompatible technology is all-but-certain. Can MasterCard change that?

On Tuesday (Nov. 17), the number two card brand introduced a loyalty middleware specification that it hopes will be adopted widely enough to give mobile loyalty a chance to grow seamlessly. Given that few if any mobile payment schemes will be offered without support for at least one issuer's MasterCard, the card brand seems a sufficiently politically neutral player to sidestep the usual vendor resistance. In MasterCard's statement, the brand said it's proposed specification "enables mobile applications to offer a seamless connection between payment, promotions and loyalty redemption. It enables consumers to select their loyalty card, the coupons/promotions they want to redeem, and make a payment in a single or double tap at a contactless terminal."

For mobile payments to move into the massive adoption phase, some version of loyalty/couponing will be essential. Otherwise, once the novelty wears off, there are simply no sustainable reasons for shoppers to stick with mobile. But with every mobile player preparing to somehow push loyalty, the chance of having conflicting incompatible technology is all-but-certain. Can MasterCard change that?

Transit Mobile Payment Is A PF Dream Come True

On Monday (Nov. 16), San Francisco Mayor Ed Lee officially brought his city's public transit system into the mobile payment era, following similar moves by cities across the globe. Just last month, the totality of London's black cabs said that they will accept mobile payment.

These efforts are crucial for the payment facilitator community as nowhere is the need for the speed and convenience of mobile payments more needed than in urban public transit. Of potentially greater significance are the huge volumes of consumers that are using such systems—and the extreme tendency of such communities to get comfort from what other travelers are doing. In short, successful transportation trials have a far greater chance of meaningfully moving the acceptance needle than almost any other vertical. As much as coffee shops may gravitate to every kind of mobile payment imaginable, they simply don't have the volume—nor the copycat psychology—that comes with the transportation territory.

On Monday (Nov. 16), San Francisco Mayor Ed Lee officially brought his city's public transit system into the mobile payment era, following similar moves by cities across the globe. Just last month, the totality of London's black cabs said that they will accept mobile payment. These efforts are crucial for the payment facilitator community as nowhere is the need for the speed and convenience of mobile payments more needed than in urban public transit.

NYC Mobile Banking Study: Underbanked Much More Likely To Accept Texts

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.

Square Sets IPO Price At $9, Far Below Expectations

When Square's IPO launches Thursday (Nov. 19) morning, it will start off seeking $9/share, which values the company at $2.66 billion, half of where it had valued a year ago. Even its IPO prospectus had estimated a range of $11-$13. Square is arguably the industry's best-known payment facilitator.

"It’s a signal that Square will face a challenge when it finally goes public," noted TechCrunch. "Square’s pricing — below its previous valuation — is one of many instances of valuations being written down among late-stage startups." Fair or not—FYI, it's not—Square is facing Wall Street analysts who need to pigeonhole Square direct competitors. But the Square business model, size and customer based is sufficiently unusual that there really are no like-for-like rivals.<

When Square's IPO launches Thursday (Nov. 19) morning, it will start off seeking $9/share, which values the company at $2.66 billion, half of where it had valued a year ago. Even its IPO prospectus had estimated a range of $11-$13. Square is arguably the industry's best-known payment facilitator.

Global Wrap: European Parliament Insisting On Mobile Payment Standards

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.

We Won’t Publish The Week Of Nov. 23, For Thanksgiving

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.

Wall Street Loves Comparisons, Which Is Why Square Is Driving It Crazy

As PF extraordinaire Square begins its IPO perp walk (aka roadshow), it is seeing consumer media criticism (such as this piece from USA Today) that its numbers are not as strong as so-called contemporaries. The problem is Square's business model and execution approach is truly different, so much so that there are hardly any comparably-sized companies that are apples-to-apples comparisons—and certainly none that are already publicly-held.This concern is oft-cited by startups who claim to have no competitors, but with Square, the differences are much more significant.

Rick Oglesby, a senior analyst with payments consulting firm Double Diamond Group and a longtime tracker of Square, said he was concerned about the influence exerted by comparisons like the ones USA Today made."This article keeps talking about tech companies and, if that’s the benchmark, then it probably isn’t that pretty. But if the benchmark is payments companies, Square is very pretty," Oglesby said. "This is not a Facebook or a Twitter, but relative to the competitors listed in the article—which aren’t really even competitors—I’ll take Square."

As PF extraordinaire Square begins its IPO perp walk (aka roadshow), it is seeing consumer media criticism (such as this piece from USA Today) that its numbers are not as strong as so-called contemporaries. The problem is Square's business model and execution approach is truly different, so much so that there are hardly any comparably-sized companies that are apples-to-apples comparisons—and certainly none that are already publicly-held.

Samsung Pay’s Encryption Perception Problem

It seems a funny thing has happened on the way to using Samsung Pay for some users, as the emerging mobile payments platform isn't compatible with a phone’s encryption protocol. Simply stated: if the phone is switched into encrypted mode (as many who use their phones for work are required to do), users can’t add cards to their Samsung Pay wallet.

This isn't going over well. Although it's not yet clear if this encryption conniption is a glitch or intentional, either way it is sending a positively terrible message to users about Samsung Pay and security. Not requiring a user to activate phone encryption is one thing, but refusing new payment credentials if it's already been activated is very different.

It seems a funny thing has happened on the way to using Samsung Pay for some users, as the emerging mobile payments platform isn't compatible with a phone’s encryption protocol. Simply stated: if the phone is switched into encrypted mode (as many who use their phones for work are required to do), users can’t add cards to their Samsung Pay wallet. This isn't going over well. Although it's not yet clear if this encryption conniption is a glitch or intentional, either way it is sending a positively terrible message to users about Samsung Pay and security.

Apple Wants Into P2P Payments, Talking With Chase, CapOne, Wells Fargo, U.S. Bancorp

In an attempt to control as much consumer payments as possible, Apple is in negotiations with J.P. Morgan Chase, Capital One, Wells Fargo and U.S. Bancorp to launch a bank-account-based P2P payments service, according to a Wednesday report in The Wall Street Journal. If successful, it's value would be huge to Apple, but not on a per-transaction fee basis. The goldmine would be the data, the equivalent of knowing every check, money transfer and payment card transaction made by millions of its customers.

Beyond the privacy implications of a consumer goods company having so much consumer personal data—on top of whatever health data is being gathered through Apple's Health app—there are also security concerns. The more avenues of access that exist into a bank account, the more chances there are for a glitch to withdraw more than expected or for the ultra-sensitive bank account routing numbers to leak where a cyberthief could see it.

In an attempt to control as much consumer payments as possible, Apple is in negotiations with J.P. Morgan Chase, Capital One, Wells Fargo and U.S. Bancorp to launch a bank-account-based P2P payments service, according to a Wednesday report in The Wall Street Journal. If successful, it's value would be huge to Apple, but not on a per-transaction fee basis. The goldmine would be the data, the equivalent of knowing every check, money transfer and payment card transaction made by millions of its customers.

MC Makes Its Zero Liability Worldwide, In A Move That Visa Can’t Yet Match

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.

Visa: Huge Changes For Payments In IoT, Where Context Is King

The imminent Internet of Things (IoT) world—where every watch, car, thermostat, refrigerator, shopping cart and television talk with each other, and everything else—could have a huge impact on PF payments. But, as Jonathan Vaux, Visa's innovation director, recently said, it's really all about context.

Current payment methods (payment cards, whether still in plastic or in a mobile device, cash and even checks) are all about paying for anything anywhere. That's certainly fine and will always be needed—Vaux goes out of his way to defend cash, which he correctly argues isn't going away anytime soon—but there is a huge allure for shoppers to make purchases they are in-context.

The imminent Internet of Things (IoT) world—where every watch, car, thermostat, refrigerator, shopping cart and television talk with each other, and everything else—could have a huge impact on PF payments. But, as Jonathan Vaux, Visa's innovation director, recently said, it's really all about context.

Global Wrap: Nambia Launches A New National Payments System

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.

Amazon Shuts Down Local Register, Having Never Really Loved It Anyway

For the world's largest e-commerce company, Amazon certainly had a busy payments week this week, from opening a physical bookstore integrating online capabilities to pushing its Amazon button for third-party mobile apps. But it's most PF noteworthy move this week was Amazon's choice to give up on Local Register.

Local Register was a payments processing effort that focused on the exact kind of smaller merchant that has gravitated to Square. And Amazon's initial promotional pricing was set lower than Square, on the rationale that price is everything for a small merchant. Apparently not.

For the world's largest e-commerce company, Amazon certainly had a busy payments week this week, from opening a physical bookstore integrating online capabilities to pushing its Amazon button for third-party mobile apps. But it's most PF noteworthy move this week was Amazon's choice to give up on Local Register.

The Reunification of Visa/Visa Europe Could Be Good News For PFs And Compliance

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.

Wall Street Vs. Silicon Valley: There’s A New PF Lobbyist In Town

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).

Google Slaps Symantec Around For Certificate Blunders. But Shouldn’t Payment Certificates Mean Something

Google has taken the unusual action of taking to task Symantec for supposedly sloppy enforcement of its digital certificates. What is payments-relevant here is that digital certificates—even when executed perfectly—do not deliver to shoppers the security assurances that most shoppers assume.

What the payments space needs are true e-commerce certificates, that actually represent security assurances for the site, not merely that the company is truly behind that domain. A cyberthief trying to rip shoppers off would also take the effort to properly register his domain.

Google has taken the unusual action of taking to task Symantec for supposedly sloppy enforcement of its digital certificates. What is payments-relevant here is that digital certificates—even when executed perfectly—do not deliver to shoppers the security assurances that most shoppers assume.

Global Roundup: Why Don’t Egyptians Like Mobile Payments?

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.

MCX Finally Gets Its Interchange Break—After Chase Hands It To Them

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.

PF Magic: Square Is $150m In The Red, But Still Worth Billions

If you’re still not convinced of the power of the PF model, prepare to be so. Square, perhaps the leading payment facilitator, with 2 million active customers, has finally made it’s financials public via its S-1 filing, and its losses are staggering.

How could this company have attracted private valuations in excess of US$6 billion? Simple: by being a great company with a great plan in an emerging market. Despite being on target to accumulate half a billion in losses in a four-year period, it is a robust business, with solid management on the brink of profitability. Its losses do not result from negative business factors, but rather because management is so excited by its opportunities that it is taking a Amazon-esque approach, forgoing short-term profits to invest in its many future opportunities. One should view the magnitude of the losses not as a negative, but rather as indicative of the magnitude of the opportunity.

If you’re still not convinced of the power of the PF model, prepare to be so. Square, perhaps the leading payment facilitator, with 2 million active customers, has finally made it’s financials public via its S-1 filing, and its losses are staggering.

Welcome To Your New Home For Payment Facilitator News You Can Use

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.

The Implications Of Soaring Mobile Biometric Authentication Stats

Noticed an interesting stat hit the wires on Tuesday (Oct. 27) from Juniper Research. Juniper reported "that the increased rollout of contactless payment services using fingerprint scanners will push the number of biometrically authenticated transactions to nearly 5bn by 2019, up from less than 130 million this year."

Going from 130 million to almost 5 billion in four years is an impressive path—if the numbers are to be believed—but the changes to consumer behavior is potentially even more dramatic. Juniper limited its projection to biometrically authenticated transactions. The reality is that as consumers get comfortable with mobile biometrics, those fingerprint scans will authenticate consumers as they walk into banks, doctor’s offices, gyms and when they open secure apps. In the same way that fingerprint scans on iOS and Android devices are making consumers comfortable with all manner of biometric authentication, those devices and associated behaviors are also going to open the door to biometric authentication in areas well beyond mobile devices. Indeed, they could open the doors to, well, opening doors.

Noticed an interesting stat hit the wires on Tuesday (Oct. 27) from Juniper Research. Juniper reported "that the increased rollout of contactless payment services using fingerprint scanners will push the number of biometrically authenticated transactions to nearly 5bn by 2019, up from less than 130 million this year."

Going from 130 million to almost 5 billion in four years is an impressive path—if the numbers are to be believed—but the changes to consumer behavior is potentially even more dramatic. Juniper limited its projection to biometrically authenticated transactions. The reality is that as consumers get comfortable with mobile biometrics, those fingerprint scans will authenticate consumers as they walk into banks, doctor’s offices, gyms and when they open secure apps. In the same way that fingerprint scans on iOS and Android devices are making consumers comfortable with all manner of biometric authentication, those devices and associated behaviors are also going to open the door to biometric authentication in areas well beyond mobile devices. Indeed, they could open the doors to, well, opening doors.

The Non-Intuitive World Of Authentication And Social Media

A cyberthief walks into a bank branch, fully prepared to impersonate his intended high-net-worth victim. Not only is he equipped with fake IDs in the victim's name, lots of personal information courtesy of social and search engine research, but the thief has even taken the precaution of breaking into his victim's social accounts and replacing his thief-like face for the victim's on the victim's own social sites. If anyone tries to check on the Facebook or LinkedIn site of the victim, the thief's face would be confirmed.

The banker in this case sits beneath a tiny video camera, one that is aimed at the seat where customers sit and specifically the facial area of those customers. Controls of the banker-facing screen allow the image to be precisely aimed for customers of varying heights. And while the banker is pitching her safe-deposit boxes and other bank services, software does a quick check on the thief's face. Sure enough, it matches the social media images—but the software notes that those images were all recently changed. The software's database maintains a record of the last 10 images of everyone it can find—and that history of images foiled our thief's efforts.

A cyberthief walks into a bank branch, fully prepared to impersonate his intended high-net-worth victim. Not only is he equipped with fake IDs in the victim's name, lots of personal information courtesy of social and search engine research, but the thief has even taken the precaution of breaking into his victim's social accounts and replacing his thief-like face for the victim's on the victim's own social sites. If anyone tries to check on the Facebook or LinkedIn site of the victim, the thief's face would be confirmed.

The banker in this case sits beneath a tiny video camera, one that is aimed at the seat where customers sit and specifically the facial area of those customers. Controls of the banker-facing screen allow the image to be precisely aimed for customers of varying heights. And while the banker is pitching her safe-deposit boxes and other bank services, software does a quick check on the thief's face. Sure enough, it matches the social media images—but the software notes that those images were all recently changed. The software's database maintains a record of the last 10 images of everyone it can find—and that history of images foiled our thief's efforts.

Why Did Most Merchants Miss The EMV Deadline? Many Reasons, But Complexity Is The Top

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."

Apple Pay Penetration Stats: The Less We Know, The Better It Is

Although there is no question today that mobile payments are increasing, to what degree is challenging. This confusion was magnified this month when Bloomberg quoted the Aite Group as saying that ApplePay accounts for one percent of all U.S. retail transactions.

Aite denies ever having said that—the analyst said that he said that it was much lower than one percent—and indeed Aite says that Apple Pay represents a tiny fraction of one percent of current U.S. retail sales. IDC estimates that Apple Pay today accounts for about one-tenth of one percent of all retail in-store transactions in the U.S., while Javelin puts that figure at about half—roughly one-twentieth of one percent. When moving from Apple Pay to Google Pay, the estimated slices get even thinner. Crone Consulting president Richard Crone sees Google Pay representing about one-third of Apple Pay transactions. IDC analyst James Wester put Google Pay's figures in an even more vague area: "Google Pay is so small to be incalculable. I can't even estimate what it is because it is so small," he said.

Although there is no question today that mobile payments are increasing, to what degree is challenging. This confusion was magnified this month when Bloomberg quoted the Aite Group as saying that ApplePay accounts for one percent of all U.S. retail transactions.

Aite denies ever having said that—the analyst said that he said that it was much lower than one percent—and indeed Aite says that Apple Pay represents a tiny fraction of one percent of current U.S. retail sales. IDC estimates that Apple Pay today accounts for about one-tenth of one percent of all retail in-store transactions in the U.S., while Javelin puts that figure at about half—roughly one-twentieth of one percent. When moving from Apple Pay to Google Pay, the estimated slices get even thinner. Crone Consulting president Richard Crone sees Google Pay representing about one-third of Apple Pay transactions. IDC analyst James Wester put Google Pay's figures in an even more vague area: "Google Pay is so small to be incalculable. I can't even estimate what it is because it is so small," he said.

Financial Futility: Why Chip & PIN Sucks For Small Merchants

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.

Some Interesting Odds And Ends From Money2020 Announcements

At any industry event such as Money2020, companies try and roll out new offerings—even if what they have to say isn't that new or interesting. But in reviewing the self-perpetuating avalanche of accolades, found a few interesting tidbits with that Monday dateline.

New stats from eMarketer: In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method. By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually. Total mobile payment sales will rise faster than average spending per user in 2016 because of the growth in the number of overall users of the technology. Mozido confirmed a gateway platform that is optimized for trade between the U.S. and China. Less significantly, the company also announced the availability of it HCE product.

At any industry event such as Money2020, companies try and roll out new offerings—even if what they have to say isn't that new or interesting. But in reviewing the self-perpetuating avalanche of accolades, found a few interesting tidbits with that Monday dateline.

New stats from eMarketer: In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method. By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually. Total mobile payment sales will rise faster than average spending per user in 2016 because of the growth in the number of overall users of the technology. Mozido confirmed a gateway platform that is optimized for trade between the U.S. and China. Less significantly, the company also announced the availability of it HCE product.