Stockholm-based Klarna has secured a banking license from the Swedish Financial Supervisory Authority.

With this license, the company can operate as a bank across the European Union. And according to Klarna, securing the license makes it one of Europe’s largest banks right out of the gate, with 60 million customers.

The company sees itself as a formidable competitor to Europe’s banks.

Stockholm-based Klarna has secured a banking license from the Swedish Financial Supervisory Authority. With this license, the company can operate as a bank across the European Union. And according to Klarna, securing the license makes it one of Europe’s largest banks right out of the gate, with 60 million customers. The company sees itself as a formidable competitor to Europe’s banks.
This may come as a surprise to some, but people who use Airbnb aren’t always on the up-and-up.

Despite the home-sharing marketplace’s efforts to keep fraudulent listings and other bad behavior off the site, scams still make headlines. The company is apparently hoping that technology can help.

This may come as a surprise to some, but people who use Airbnb aren’t always on the up-and-up. Despite the home-sharing marketplace’s efforts to keep fraudulent listings and other bad behavior off the site, scams still make headlines. The company is apparently hoping that technology can help.
Businesses that have embraced the payment facilitator model often do so because they recognize the need to simplify the complex business of payments for their merchant clients.

They understand how important it has become to integrate payments into a merchant’s offerings in a flexible way that helps them serve their customers. A natural extension of that is the omnichannel approach – enabling the merchant to seamlessly connect with customers through both digital and in-person touchpoints.

Businesses that have embraced the payment facilitator model often do so because they recognize the need to simplify the complex business of payments for their merchant clients. They understand how important it has become to integrate payments into a merchant’s offerings in a flexible way that helps them serve their customers. A natural extension of that is the omnichannel approach – enabling the merchant to seamlessly connect with customers through both digital and in-person touchpoints.
In this week’s news roundup, Stripe expands and the agreements forged between PayPal and the card networks continue to deliver new features.

Leading payment facilitator Stripe said in a blog post that it has fully launched in six new European countries. Now businesses in Germany, Austria, Switzerland, the Netherlands, Belgium, and Luxembourg have access to all of Stripe’s products.

In this week’s news roundup, Stripe expands and the agreements forged between PayPal and the card networks continue to deliver new features. Leading payment facilitator Stripe said in a blog post that it has fully launched in six new European countries. Now businesses in Germany, Austria, Switzerland, the Netherlands, Belgium, and Luxembourg have access to all of Stripe’s products.
A study released by shipper UPS earlier this month concluded that today’s U.S. online shoppers are more likely than before to make purchases from international retailers, and more likely to buy from online marketplaces.

What does this trend mean for the merchants looking to attract those shoppers – and the payment facilitators enabling their payments?

A study released by shipper UPS earlier this month concluded that today’s U.S. online shoppers are more likely than before to make purchases from international retailers, and more likely to buy from online marketplaces. What does this trend mean for the merchants looking to attract those shoppers – and the payment facilitators enabling their payments?
Munich-based payments processor Wirecard continues to expand its global reach, this time with a new partnership in Turkey.

Wirecard Turkey recently announced that it is enabling payments for Istanbul-based Startsub, operator of the web site Aydanaya.com.

Munich-based payments processor Wirecard continues to expand its global reach, this time with a new partnership in Turkey. Wirecard Turkey recently announced that it is enabling payments for Istanbul-based Startsub, operator of the web site Aydanaya.com.
India’s push to digitize financial transactions and remove cash from its payment systems continues.

The government’s latest instructions focus on a specific vertical, potentially expanding opportunity for payment facilitators and other payment providers in India.

India’s push to digitize financial transactions and remove cash from its payment systems continues. The government’s latest instructions focus on a specific vertical, potentially expanding opportunity for payment facilitators and other payment providers in India.
This week, simplicity and convenience – whether that means shopping from the comfort of home, paying wherever you are or just having the ability to use your preferred method – are at the center of much of the payments industry news.

Paytm has expanded on its use of QR codes to bring online and offline together for small merchants, Visa has launched a new program aimed at its partners in B2B, and Amazon hit a milestone.

This week, simplicity and convenience – whether that means shopping from the comfort of home, paying wherever you are or just having the ability to use your preferred method – are at the center of much of the payments industry news. Paytm has expanded on its use of QR codes to bring online and offline together for small merchants, Visa has launched a new program aimed at its partners in B2B, and Amazon hit a milestone.
The technology news from Asia often talks about how likely consumers there are to embrace mobile technology, particularly payments.

Those stories often refer to places like China, where adoption rates are significantly higher than in the U.S., for example.

But Japan appears to be a different story.

The technology news from Asia often talks about how likely consumers there are to embrace mobile technology, particularly payments. Those stories often refer to places like China, where adoption rates are significantly higher than in the U.S., for example. But Japan appears to be a different story.
At PaymentFacilitator.com, we want to be the first place you look for information that is relevant to payment facilitators and important to your business.

That’s why we’re introducing the new Payment Facilitator Resource Center, sponsored by Vantiv. We plan to collect valuable information on topics including onboarding and underwriting submerchants, risk management, market research, and compliance, just to name a few.

At PaymentFacilitator.com, we want to be the first place you look for information that is relevant to payment facilitators and important to your business. That’s why we’re introducing the new Payment Facilitator Resource Center, sponsored by Vantiv. We plan to collect valuable information on topics including onboarding and underwriting submerchants, risk management, market research, and compliance, just to name a few.
If you’re familiar with payment facilitation, chances are that you’re already savvy about payments. As a payment facilitator, you become a “mini-acquirer,” managing your own community of merchants.

Payment facilitation can be critical to enabling new business models, but for developers it can present gnarly technical challenges. The top five “must-haves” for payment facilitator APIs are described below.

If you’re familiar with payment facilitation, chances are that you’re already savvy about payments. As a payment facilitator, you become a “mini-acquirer,” managing your own community of merchants. Payment facilitation can be critical to enabling new business models, but for developers it can present gnarly technical challenges. The top five “must-haves” for payment facilitator APIs are described below.
In a look at this week’s payments industry news, we gather some of the reactions to Apple’s recent announcements from its Worldwide Developer Conference, and payments companies announce partnerships and new products to make payments easier for developers and merchants.
In a look at this week’s payments industry news, we gather some of the reactions to Apple’s recent announcements from its Worldwide Developer Conference, and payments companies announce partnerships and new products to make payments easier for developers and merchants.
The Indian government’s pro-digital policies are having a significant effect on behavior in that country. That is according to the Internet Trends Report, a wide-ranging presentation published annually by venture capital firm Kleiner Perkins.

The 2017 report puts hard numbers to some of the global digital payments trends we’ve been watching at PaymentFacilitator.com – trends that have been creating opportunity for dominant payment facilitators. Here are a few of the highlights.

The Indian government’s pro-digital policies are having a significant effect on behavior in that country. That is according to the Internet Trends Report, a wide-ranging presentation published annually by venture capital firm Kleiner Perkins. The 2017 report puts hard numbers to some of the global digital payments trends we’ve been watching at PaymentFacilitator.com – trends that have been creating opportunity for dominant payment facilitators. Here are a few of the highlights.
The drive among payments companies, banks, and governments to displace cash continues. And for many, the concept of using QR codes holds a great deal of promise.

Relatively easy to use and implement, the two-dimensional codes are more attractive to small and micro-merchants – where cash still reigns in many cases.

But are they being accepted by users?

The drive among payments companies, banks, and governments to displace cash continues. And for many, the concept of using QR codes holds a great deal of promise. Relatively easy to use and implement, the two-dimensional codes are more attractive to small and micro-merchants – where cash still reigns in many cases. But are they being accepted by users?
Recent surveys have highlighted just how different your opinion of cash could be depending on where you live – and how close you might be to living in a society that drops cash for cards or mobile payment options.

No matter where they’re located, as consumers increasingly embrace the idea of a world without cash, the opportunities for payment facilitators to connect merchants with buyers are rising.

Recent surveys have highlighted just how different your opinion of cash could be depending on where you live – and how close you might be to living in a society that drops cash for cards or mobile payment options. No matter where they’re located, as consumers increasingly embrace the idea of a world without cash, the opportunities for payment facilitators to connect merchants with buyers are rising.
The Washington, D.C., Department of For-Hire Vehicles has tapped leading payment facilitator Square to power an initiative that will move that city’s taxi drivers to a digital platform.

“The for-hire transportation industry has been through disruption with the advent of the e-hailing apps and changing consumer preferences. One of the objectives about what we want to do is to allow the traditional taxi to compete more fairly.”

The Washington, D.C., Department of For-Hire Vehicles has tapped leading payment facilitator Square to power an initiative that will move that city’s taxi drivers to a digital platform.

Now you have even fewer reasons to stop scrolling through your Facebook feed. If checking nearby restaurants to find one that allowed you to order food directly from its Facebook page was enough to drive you away from the site in search of food, you’re in luck.
Now you have even fewer reasons to stop scrolling through your Facebook feed. If checking nearby restaurants to find one that allowed you to order food directly from its Facebook page was enough to drive you away from the site in search of food, you’re in luck.
Interest in the business of payment facilitation is growing, not just among companies lured in to monetize transactions and the investors excited to fund fast-growing startups, but also regulators wanting to make sure a new third party isn’t taking advantage of consumers.

And all these eyes on the industry mean payment facilitators themselves, and companies thinking about switching to the model, are hungry for more information about how to run their business to take full advantage of all the opportunity in the space.

Interest in the business of payment facilitation is growing, not just among companies lured in to monetize transactions and the investors excited to fund fast-growing startups, but also regulators wanting to make sure a new third party isn’t taking advantage of consumers. And all these eyes on the industry mean payment facilitators themselves, and companies thinking about switching to the model, are hungry for more information about how to run their business to take full advantage of all the opportunity in the space.
Payment processor First Data has launched a new e-commerce program for payment facilitators that it’s calling Global PFAC.

As part of First Data’s e-commerce suite of products, Global PFAC offers a single integration interface that allows merchants to settle and fund transactions in more than 40 countries and 17 currencies.

Payment processor First Data has launched a new e-commerce program for payment facilitators that it’s calling Global PFAC. As part of First Data’s e-commerce suite of products, Global PFAC offers a single integration interface that allows merchants to settle and fund transactions in more than 40 countries and 17 currencies.
There may well come a day when money transmitter laws are consistent across state lines. Baby steps in that direction, however, underline the complicated work that lies ahead if such a dream is to become reality.

The Conference of State Bank Supervisors recently announced its plans to move toward a consistent framework for regulating non-bank entities, including financial technology companies – a plan it called its Vision 2020 initiative.

There may well come a day when money transmitter laws are consistent across state lines. Baby steps in that direction, however, underline the complicated work that lies ahead if such a dream is to become reality.
As third parties, payment facilitators have a complicated regulatory framework to wade through. And it’s unlikely to get untangled any time soon, especially as state regulators look to clamp down on a payments industry they don’t fully understand, according to panelists at Payment Facilitator Day during the ETA’s TRANSACT 17 conference.

Prepaid, money transmission, data and cyber security, these are perennial worries, one panelist said, but one particular trend in state regulation has her very nervous.

As third parties, payment facilitators have a complicated regulatory framework to wade through. And it’s unlikely to get untangled any time soon, especially as state regulators look to clamp down on a payments industry they don’t fully understand, according to panelists at Payment Facilitator Day during the ETA’s TRANSACT 17 conference. Prepaid, money transmission, data and cyber security, these are perennial worries, one panelist said, but one particular trend in state regulation has her very nervous.
A roundup of some of this week’s headlines includes biometric authentication news from PayPal and Trulioo, as well as a survey about the challenges of small and medium-sized businesses from WePay.

PayPal has further expanded its relationship with Google, announcing that Android Pay users can now make payments at online merchants using their fingerprints as authentication.

A roundup of some of this week’s headlines includes biometric authentication news from PayPal and Trulioo, as well as a survey about the challenges of small and medium-sized businesses from WePay.
While most people outside the industry don’t know what a payment facilitator is by name, the process of simplifying merchant onboarding to allow merchants to quickly start accepting payments is a business model seeing increased interest from the venture capital community.

According to panelists at Payment Facilitator Day during the ETA’s TRANSACT 17 conference, the payment facilitator industry is still in the very early days, but there’s substantial interest both by software companies looking to follow the PF model and investors looking to funnel money into the model.

While most people outside the industry don’t know what a payment facilitator is by name, the process of simplifying merchant onboarding to allow merchants to quickly start accepting payments is a business model seeing increased interest from the venture capital community. According to panelists at Payment Facilitator Day during the ETA’s TRANSACT 17 conference, the payment facilitator industry is still in the very early days, but there’s substantial interest both by software companies looking to follow the PF model and investors looking to funnel money into the model.
Developers, according to Square Developer Lead Carl Perry, are the most important community for many payment facilitators.

It’s not something payment facilitators hear very much, but developers are a core part of the business, and payment facilitators need to make the building of payment solutions streamlined for this group.

And this is especially important as payments and all the features around payments become more complex. With increasing consumer payment options, such as NFC, EMV and bitcoin, and multichannel strategies for acceptance, developers have a challenge to build solutions that keep up with buyers’ quickly changing demands of payments whenever, wherever.

Developers, according to Square Developer Lead Carl Perry, are the most important community for many payment facilitators. It’s not something payment facilitators hear very much, but developers are a core part of the business, and payment facilitators need to make the building of payment solutions streamlined for this group.
In a roundup of this week’s news, major card brands are continuing their expansion of digital payments acceptance, targeting cash usage at small and micro businesses and at festivals. And eMarketer ventures a prediction about the cross-border e-commerce shopping habits of German consumers.
In a roundup of this week’s news, major card brands are continuing their expansion of digital payments acceptance, targeting cash usage at small and micro businesses and at festivals. And eMarketer ventures a prediction about the cross-border e-commerce shopping habits of German consumers.
In many respects, India's 9-year-old Aadhaar national ID system is a global model for simplifying payments, banking and payroll operations. It was designed to be a comprehensive database allowing easy access to bank accounts and other payments mechanisms. As a concept, it worked brilliantly.

But according to data from a report from the Centre For Internet and Society, it also serves as a world-class example of security recklessness, with methods so sloppy that they could have exposed sensitive data about almost a quarter of a billion Indian citizens.

In many respects, India's 9-year-old Aadhaar national ID system is a global model for simplifying payments, banking and payroll operations. It was designed to be a comprehensive database allowing easy access to bank accounts and other payments mechanisms. As a concept, it worked brilliantly. But according to data from a report from the Centre For Internet and Society, it also serves as a world-class example of security recklessness, with methods so sloppy that they could have exposed sensitive data about almost a quarter of a billion Indian citizens.
Next week’s Payment Facilitator Day – an entire day of content by, for and about payment facilitators at ETA’s TRANSACT conference – promises to be a wealth of informative conversations for companies in the space or considering it.

The lineup of experts includes innovative payment facilitators who are leading the way in the PF market, as well as investors who have helped payments companies strategize and grow their businesses.

Next week’s Payment Facilitator Day – an entire day of content by, for and about payment facilitators at ETA’s TRANSACT conference – promises to be a wealth of informative conversations for companies in the space or considering it. The lineup of experts includes innovative payment facilitators who are leading the way in the PF market, as well as investors who have helped payments companies strategize and grow their businesses.
This week, we talk with Carl Perry, developer lead at Square. Perry will deliver the keynote at next week’s Payment Facilitator Day, a full day of focused content at ETA’s TRANSACT.

In this conversation with PaymentFacilitator.com, he talks about some of the trends that are shaping the role of a developer in the PF space.

This week, we talk with Carl Perry, developer lead at Square. Perry will deliver the keynote at next week’s Payment Facilitator Day, a full day of focused content at ETA’s TRANSACT. In this conversation with PaymentFacilitator.com, he talks about some of the trends that are shaping the role of a developer in the PF space.
If your company is exploring becoming a PF, it is important to understand the relevant drivers behind becoming a PF as well as the impact your decisions have on the operations of your business.

Registering as a PF is not a panacea for making payments easier, and in fact, can be a drain on the resources within your organization.

You already know you want something more than a traditional merchant processing referral relationship. Identifying what you are trying to accomplish with a PF model while analyzing the various options to meet those needs, rather than focusing on simply becoming a PF, is a valuable exercise.

If your company is exploring becoming a PF, it is important to understand the relevant drivers behind becoming a PF as well as the impact your decisions have on the operations of your business. Registering as a PF is not a panacea for making payments easier, and in fact, can be a drain on the resources within your organization. You already know you want something more than a traditional merchant processing referral relationship. Identifying what you are trying to accomplish with a PF model while analyzing the various options to meet those needs, rather than focusing on simply becoming a PF, is a valuable exercise.
Leading payment facilitator Square released its quarterly financials on Wednesday, reporting $462 million in revenue, a 22% increase year over year.

The company also reported that it processed $13.6 billion in payments volume, down slightly from $13.7 billion last quarter, but in line with normal seasonal trends, the company said. That number is up 33% over first quarter last year.

“That's staggering growth for a company that was at zero just eight years ago,” Rick Oglesby, Double Diamond Group partner and principal of AZ Payments Group, told PaymentFacilitator.com.

Leading payment facilitator Square released its quarterly financials on Wednesday, reporting $462 million in revenue, a 22% increase year over year. The company also reported that it processed $13.6 billion in payments volume, down slightly from $13.7 billion last quarter, but in line with normal seasonal trends, the company said. That number is up 33% over first quarter last year.
A recent study by the UN-based Better Than Cash Alliance supports what payment facilitators have long known – that enabling access to electronic payments is increasing financial inclusion and creating opportunity.

The report, titled “Social Networks, e-Commerce Platforms and the Growth of Digital Payment Ecosystems in China -- What It Means for Other Countries,” looks at the growth and the economic impact in China of leading payment facilitator Alipay and WeChat Pay.

A recent study by the UN-based Better Than Cash Alliance supports what payment facilitators have long known – that enabling access to electronic payments is increasing financial inclusion and creating opportunity. The report, titled “Social Networks, e-Commerce Platforms and the Growth of Digital Payment Ecosystems in China -- What It Means for Other Countries,” looks at the growth and the economic impact in China of leading payment facilitator Alipay and WeChat Pay.
This week, we talk with Mike McGirr, senior vice president, compliance and risk, for payments platform provider Adyen.

In a wide-ranging conversation, McGirr talks about Adyen’s role in the payments ecosystem. He also talks about his own roles as chair of ETA’s new Payment Facilitator Committee and moderator of an acquirer panel at the upcoming Payment Facilitator Day, part of ETA’s TRANSACT conference. And he previews some of what PFs can expect from both.

This week, we talk with Mike McGirr, senior vice president, compliance and risk, for payments platform provider Adyen. In a wide-ranging conversation, McGirr talks about Adyen’s role in the payments ecosystem. He also talks about his own roles as chair of ETA’s new Payment Facilitator Committee and moderator of an acquirer panel at the upcoming Payment Facilitator Day, part of ETA’s TRANSACT conference. And he previews some of what PFs can expect from both.
Payment technology provider Vantiv is planning to acquire Paymetric, a B2B electronic payments provider, the company said this week.

The acquisition expands Vantiv’s presence into the B2B payment space, the company said. Paymetric integrates payments capabilities with enterprise systems such as SAP, Oracle and Salesforce. It uses tokenization technology to store customer information securely.

Payment technology provider Vantiv is planning to acquire Paymetric, a B2B electronic payments provider, the company said this week. The acquisition expands Vantiv’s presence into the B2B payment space, the company said. Paymetric integrates payments capabilities with enterprise systems such as SAP, Oracle and Salesforce. It uses tokenization technology to store customer information securely.
Being a pioneer can be a bit isolating.

The unique approaches payment facilitators have taken to their markets often mean that they have challenges – and solutions – only other PFs are likely to understand.

Being a pioneer can be a bit isolating. The unique approaches payment facilitators have taken to their markets often mean that they have challenges – and solutions – only other PFs are likely to understand.

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.

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.
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.
When a technology company decides to take on payments, it often seems like a natural next step. Who wouldn’t want to extend their services by enabling clients to accept payments?

Then reality sinks in. Adding the technical capability to move money is one thing. Opening the door to the complex web of federal and state regulation and card brand rules is another.

When a technology company decides to take on payments, it often seems like a natural next step. Who wouldn’t want to extend their services by enabling clients to accept payments? Then reality sinks in. Adding the technical capability to move money is one thing. Opening the door to the complex web of federal and state regulation and card brand rules is another.

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.
A handful of big-name acquisitions have dominated headlines this week.

The U.K.’s Competition and Markets Authority cleared the way for Mastercard’s acquisition of VocaLink, announcing on Tuesday that the companies had adequately addressed competition concerns about the purchase.

A handful of big-name acquisitions have dominated headlines this week. The U.K.’s Competition and Markets Authority cleared the way for Mastercard’s acquisition of VocaLink, announcing on Tuesday that the companies had adequately addressed competition concerns about the purchase.
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.
Once a year, payment facilitators – and those thinking about being PFs – get to huddle with peers to learn more about mastering this fast-moving space.

This year, that event is on May 11 in Las Vegas. Payment Facilitator Day: A Closer Look is a full day of content by, for, and about PFs presented by PaymentFacilitator.com at the Electronic Transactions Association’s TRANSACT, the organization’s signature industry conference.

Attendees will have the chance to hear from and network with leaders in the space, including Adyen and Square.

Once a year, payment facilitators – and those thinking about being PFs – get to huddle with peers to learn more about mastering this fast-moving space. This year, that event is on May 11 in Las Vegas. Payment Facilitator Day: A Closer Look is a full day of content by, for, and about PFs presented by PaymentFacilitator.com at the Electronic Transactions Association’s TRANSACT. Attendees will have the chance to hear from and network with leaders in the space, including Adyen and Square.
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.

Visa and leading payment facilitator PayPal announced an expansion of a strategic partnership they entered into in the U.S. last summer.

The partnership is an agreement to work jointly to grow the adoption of mobile and digital payments. This latest agreement covers the Asia Pacific region.

As was the case in the U.S., the APAC partnership includes PayPal’s use of the Visa’s Digital Enablement Program (VDEP), which gives PayPal access to Visa’s tokenization technology. This enables PayPal users to conduct secure transactions at point-of-sale locations where Visa is accepted.

Visa and leading payment facilitator PayPal announced an expansion of a strategic partnership they entered into in the U.S. last summer. The partnership is an agreement to work jointly to grow the adoption of mobile and digital payments. This latest agreement covers the Asia Pacific region.
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 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.
Nine months after its historic vote to leave the European Union, Britain made the breakup official this week. What follows this event is up to two years of negotiations regarding how newly single Britain will interact with the rest of the world.

With the process officially begun, has anything changed for businesses interested in doing business in the U.K.?

Nine months after its historic vote to leave the European Union, Britain made the breakup official this week. What follows this event is up to two years of negotiations regarding how newly single Britain will interact with the rest of the world. With the process officially begun, has anything changed for businesses interested in doing business in the U.K.?

With frictionless underwriting, it’s easy to sign up for merchant accounts in seconds. If that’s the case, what’s to keep bad actors from signing up for multiple accounts, with multiple service providers?

In the latest in our series of industry perspectives on frictionless onboarding, we talk to Danny Klein, the COO of cyber risk intelligence provider EverCompliant, about how risk has evolved along with the practice.

With frictionless underwriting, it’s easy to sign up for merchant accounts in seconds. If that’s the case, what’s to keep bad actors from signing up for multiple accounts, with multiple service providers? In the latest in our series of industry perspectives on frictionless onboarding, we talk to Danny Klein, the COO of cyber risk intelligence provider EverCompliant, about how risk has evolved along with the practice.
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.
We continue our series on frictionless underwriting this week with a closer look at India’s rapidly changing environment and what it means for onboarding and monitoring merchants.

With the advent of rapid digitalization in India, the race has been on for payments providers to board many merchants quickly.

Companies have responded to the government’s aggressive moves toward a digital economy by announcing a slew of new initiatives intended to bring small merchants into the fold.

With the advent of rapid digitalization in India, the race has been on for payments providers to board many merchants quickly. Companies have responded to the government’s aggressive moves toward a digital economy by announcing a slew of new initiatives intended to bring small merchants into the fold.
Last Friday, the U.S. District Court for the District of North Dakota dismissed the U.S. Consumer Financial Protection Bureau’s case against Intercept.

In that case, the agency had alleged that Intercept, a payments processor, had ignored obvious fraud warning signs about its merchants, which it referred to as “red flags.”

The court decided that the CFPB did not adequately back up its allegations about what Intercept should have known.

Last Friday, the U.S. District Court for the District of North Dakota dismissed the U.S. Consumer Financial Protection Bureau’s case against Intercept. The court decided that the CFPB did not adequately back up its allegations about what Intercept should have known.
Wondering what to do with your kids this summer? You could Google “summer camp” and your location, and then take your chances with what you find. Or you could try Cubspot.

The marketplace with the cute name provides parents with an easier way to find camps, lessons and enrichment activities in their area. It made its debut just last year.

Wondering what to do with your kids this summer? You could Google “summer camp” and your location, and then take your chances with what you find. Or you could try Cubspot. The marketplace with the cute name provides parents with an easier way to find camps, lessons and enrichment activities in their area. It made its debut just last year.
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.
The advent of frictionless underwriting turned the payments world on its head. The ability to onboard merchants quickly with a minimum of fuss has enabled small merchants to accept payments more easily, clearing the way for many more to enter the market.

But the practice does have its downside. Lowering barriers to entry into the payments system lowers them for everyone, not just the good guys. With that in mind, PaymentFacilitator.com is beginning a series on the perils and the benefits of frictionless underwriting.

The advent of frictionless underwriting turned the payments world on its head. The ability to onboard merchants quickly with a minimum of fuss has enabled small merchants to accept payments more easily, clearing the way for many more to enter the market. But the practice does have its downside. Lowering barriers to entry into the payments system lowers them for everyone, not just the good guys. With that in mind, PaymentFacilitator.com is beginning a series on the perils and the benefits of frictionless underwriting.
In consumer payments, enabling the acceptance of electronic payments often makes the process easier.

When it comes to corporate payments to suppliers, however, digitizing the payment is only the beginning.

In consumer payments, enabling the acceptance of electronic payments often makes the process easier. When it comes to corporate payments to suppliers, however, digitizing the payment is only the beginning.

India removed all limits on cash withdrawals this week, ending its demonetization period. The government had imposed strict limits on cash withdrawal amounts after its initial announcement last November.

While digital transactions rose sharply after demonetization, data from the Reserve Bank of India shows cash making a return.

India removed all limits on cash withdrawals this week, ending its demonetization period. The government had imposed strict limits on cash withdrawal amounts after its initial announcement last November. While digital transactions rose sharply after demonetization, data from the Reserve Bank of India shows cash making a return.
In a roundup of news from this week, Wirecard acquires Citi’s merchant portfolio, Square sees a significant increase in chip cards, and PerformLine launches merchant monitoring.
In a roundup of news from this week, Wirecard acquires Citi’s merchant portfolio, Square sees a significant increase in chip cards, and PerformLine launches merchant monitoring.
Among fintech companies, there is often a common thread. Many began with the needs of a vertical in mind. Then they create a solution from the ground up that meets those needs.

Usually, however, the people who develop software for these companies are already programmers.

Not so with Mindbody, the software company that caters to health, beauty and wellness businesses.

Among fintech companies, there is often a common thread. Many began with the needs of a vertical in mind. Then they create a solution from the ground up that meets those needs. Usually, however, the people who develop software for these companies are already programmers. Not so with Mindbody, the software company that caters to health, beauty and wellness businesses.
Access to formal financial services is among the factors contributing to success for women business owners globally.

This is according to the first edition of the Mastercard Index of Women Entrepreneurs, which the company released on Tuesday. The index looked at the relative success of women entrepreneurs across the globe. It then compared conditions that either support or hinder it in different markets.

Access to formal financial services is among the factors contributing to success for women business owners globally. This is according to the first edition of the Mastercard Index of Women Entrepreneurs, which the company released on Tuesday. The index looked at the relative success of women entrepreneurs across the globe. It then compared conditions that either support or hinder it in different markets.
This week, we talk with Melissa Sutherland, director of merchant solutions for LegitScript, a compliance company. Sutherland is also deeply involved with the Merchant Acquirers’ Committee, otherwise known as MAC.

We talk with Sutherland about the benefits of MAC membership and the reasons she’s involved. She shares some of the background behind the formation of the organization. The founders, she said, wanted to feel free to share information with each other about fraud and “didn’t want to be constricted by competition.”

This week, we talk with Melissa Sutherland, director of merchant solutions for LegitScript, a compliance company. Sutherland is also deeply involved with the Merchant Acquirers’ Committee, otherwise known as MAC. We talk with Sutherland about the benefits of MAC membership and the reasons she’s involved. She shares some of the background behind the formation of the organization. The founders, she said, wanted to feel free to share information with each other about fraud and “didn’t want to be constricted by competition.”
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 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.
For an established company to grow, it needs to find new paths.

Sometimes, those paths lead somewhere unexpected.

Visa’s payment facilitator program is just such a route. For Visa, the program began simply as a way to expand acceptance of its cards. But it has evolved into much more.

For an established company to grow, it needs to find new paths. Sometimes, those paths lead somewhere unexpected. Visa’s payment facilitator program is just such a route. For Visa, the program began simply as a way to expand acceptance of its cards. But it has evolved into much more.
The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have increasingly targeted actors in the payments industry—including processors and independent sales organizations (ISOs)—for allowing “bad” merchants into, or to remain in, the payments ecosystem.

Indeed, when regulators identify significant consumer injury resulting from a merchant’s deceptive practices, it is not uncommon for the merchant’s payment processor and/or ISO to be named as a codefendant in an ensuing enforcement action—along with individuals at the processor or ISO who facilitated the merchant’s processing activity.

The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have increasingly targeted actors in the payments industry—including processors and independent sales organizations (ISOs)—for allowing “bad” merchants into, or to remain in, the payments ecosystem. Indeed, when regulators identify significant consumer injury resulting from a merchant’s deceptive practices, it is not uncommon for the merchant’s payment processor and/or ISO to be named as a codefendant in an ensuing enforcement action—along with individuals at the processor or ISO who facilitated the merchant’s processing activity.
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.
This week, we talk with Chris Bucolo, director of market strategy for managed security service provider ControlScan, about e-commerce security.

When they take on payments, companies jump into a complex system where all parties are responsible for maintaining data security.

In some cases, payment facilitators are companies that have created applications that work well for the vertical they serve. But they may not always be aware of all the risk elements associated with that application.

This week, we talk with Chris Bucolo, director of market strategy for managed security service provider ControlScan, about e-commerce security. When they take on payments, companies jump into a complex system where all parties are responsible for maintaining data security. In some cases, payment facilitators are companies that have created applications that work well for the vertical they serve. But they may not always be aware of all the risk elements associated with that application.
New sellers and an expanding product line made 2016 a good year for Square.

In its earnings report on Wednesday, the company said its net loss per share during the final quarter of 2016 was $.04, a significant improvement from $.34 during the same period the previous year.

New sellers and an expanding product line made 2016 a good year for Square. In its earnings report on Wednesday, the company said its net loss per share during the final quarter of 2016 was $.04, a significant improvement from $.34 during the same period the previous year.
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.
In a roundup of news from this week, DocuSign officially launches payments, Shopify improves its shipping, and Facebook friends can now send money internationally through Messenger, thanks to TransferWise. DocuSign has made its payments capability available to U.S. customers, following the beta it launched in November. As PaymentFacilitator.com reported at the time, the company is offering the payment capability through a partnership with Stripe.
In a roundup of news from this week, DocuSign officially launches payments, Shopify improves its shipping, and Facebook friends can now send money internationally through Messenger, thanks to TransferWise.</p><p>DocuSign has made its payments capability available to U.S. customers, following the beta it launched in November. As PaymentFacilitator.com reported at the time, the company is offering the payment capability through a partnership with Stripe.
In this week’s podcast, we’re talking with Vadeene Sisk, chair of the Education Committee and secretary for MAC. She shares her perspective on what the organization does and how it can help payment facilitators. She also lets listeners in on highlights from some of the organization’s recent educational activities, including a popular webinar on what to expect from a Trump administration.
In this week’s podcast, we’re talking with Vadeene Sisk, chair of the Education Committee and secretary for MAC. She shares her perspective on what the organization does and how it can help payment facilitators.</p><p>She also lets listeners in on highlights from some of the organization’s recent educational activities, including a popular webinar on what to expect from a Trump administration.
The Electronic Transactions Association is launching a new committee, pointing to the growing importance of PFs within today’s payments industry. Members of ETA’s Payment Facilitator Committee will address challenges and issues having to do with compliance, business and technology in the PF space.
The Electronic Transactions Association is launching a new committee, pointing to the growing importance of PFs within today’s payments industry.</p><p>Members of ETA’s Payment Facilitator Committee will address challenges and issues having to do with compliance, business and technology in the PF space.
Leading payment facilitator PayPal announced on Tuesday that it plans to acquire TIO Networks. TIO is a Vancouver-based bill payment processor.

The companies cite their interest in providing services to the underserved as a key philosophical fit. And with this acquisition, PayPal gains an expanded offering for its consumer base.

Leading payment facilitator PayPal announced on Tuesday that it plans to acquire TIO Networks. TIO is a Vancouver-based bill payment processor. The companies cite their interest in providing services to the underserved as a key philosophical fit. And with this acquisition, PayPal gains an expanded offering for its consumer base.
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.
In a roundup of briefs from this week’s news, payment tech companies have been busy making deals and introducing new capabilities, India’s payments app is now available for more users, and Aite talks to acquirers about best practices for merchant onboarding.

Australian payment facilitator PromisePay has changed its name to Assembly. The company cited its evolution from an online payments provider to a company focused on customer experience, as the reason for the change.

In a roundup of briefs from this week’s news, payment tech companies have been busy making deals and introducing new capabilities, India’s payments app is now available for more users, and Aite talks to acquirers about best practices for merchant onboarding.
In this week’s podcast, we talk to Marcus Smith, senior vice president of Risk Management for iPayment, a provider of payment solutions and processing services, about the tools used in underwriting submerchants.

Smith points out that while underwriting tools themselves are relatively simple, interpreting the results effectively requires some training.

In this week’s podcast, we talk to Marcus Smith, senior vice president of Risk Management for iPayment, a provider of payment solutions and processing services, about the tools used in underwriting submerchants. Smith points out that while underwriting tools themselves are relatively simple, interpreting the results effectively requires some training.
Stockholm-based payment facilitator Klarna is again expanding in Europe, this time with the purchase of German e-commerce payment company BillPay.

BillPay enables customers to pay by invoice, direct debit, or in installments through its PayLater product.

Stockholm-based payment facilitator Klarna is again expanding in Europe, this time with the purchase of German e-commerce payment company BillPay. BillPay enables customers to pay by invoice, direct debit, or in installments through its PayLater product.
A three-judge panel from the U.S. Court of Appeals for the D.C. Circuit dealt a setback to the U.S. Consumer Financial Protection Bureau last week when it denied motions to intervene in a lawsuit on behalf of the agency. After the same panel ruled the agency's structure unconstitutional, the CFPB asked the entire court to rehear the case. But opponents of the CFPB aren’t waiting for that ruling to continue their assault.
A three-judge panel from the U.S. Court of Appeals for the D.C. Circuit dealt a setback to the U.S. Consumer Financial Protection Bureau last week when it denied motions to intervene in a lawsuit on behalf of the agency. After the same panel ruled the agency's structure unconstitutional, the CFPB asked the entire court to rehear the case. But opponents of the CFPB aren’t waiting for that ruling to continue their assault.
Companies and organizations ranging from the U.S. Chamber of Commerce to banking technology provider Fiserv have submitted comments on a proposed rule from three federal agencies regarding enhanced cyber risk management standards. The advance notice of proposed rulemaking (ANPR) is directed at financial institutions and their service providers. The agencies said that they are considering enhanced standards to mitigate against the impact of technology failures and cyberattacks on one of those entities.

While any resulting rule is unlikely to apply to payment facilitators at this point, that doesn’t mean they should ignore it.

Companies and organizations ranging from the U.S. Chamber of Commerce to banking technology provider Fiserv have submitted comments on a proposed rule from three federal agencies regarding enhanced cyber risk management standards. The advance notice of proposed rulemaking (ANPR) is directed at financial institutions and their service providers. The agencies said that they are considering enhanced standards to mitigate against the impact of technology failures and cyberattacks on one of those entities. While any resulting rule is unlikely to apply to payment facilitators at this point, that doesn’t mean they should ignore it.
In a roundup of this week’s industry news, InstaMed tokenizes payment information for healthcare patient portals, Adyen nearly doubles transaction volume, and PayPal has a busy week.

Payment facilitator InstaMed has introduced what it calls the InstaMed Secure Token. The token enables healthcare providers to integrate payments within their patient portals without storing sensitive payment information on their servers.

In a roundup of this week’s industry news, InstaMed tokenizes payment information for healthcare patient portals, Adyen nearly doubles transaction volume, and PayPal has a busy week.
Travel tech company FLYR thinks you shouldn’t have to pay a significant upfront sum for your travel booking, so it’s offering another option: installment payments.

Through client partners such as travel sites, airlines and online travel agents, FLYR offers consumers the ability to spread out the expense of their travel with no interest and no credit check, through a product they call TripPay.

Travel tech company FLYR thinks you shouldn’t have to pay a significant upfront sum for your travel booking, so it’s offering another option: installment payments. Through client partners such as travel sites, airlines and online travel agents, FLYR offers consumers the ability to spread out the expense of their travel with no interest and no credit check, through a product they call TripPay.
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.
President Trump’s executive order on Friday halting immigration from seven countries sparked a vocal reaction from many among the tech business community. The CEOs of Square and Stripe were among those expressing concern about the potential impact of the order, both in economic and human terms.
President Trump’s executive order on Friday halting immigration from seven countries sparked a vocal reaction from many among the tech business community. The CEOs of Square and Stripe were among those expressing concern about the potential impact of the order, both in economic and human terms.
In our roundup of this week’s industry news, a Singapore PF looks to expand with an Alipay acquirer and Intuit comes to an agreement over data sharing with JPMorgan Chase.

Singapore payment facilitator MCPayment announced that it has taken a controlling stake in Genesis Payment Solutions, a company licensed to acquire merchants on behalf of Alipay.

In our roundup of this week’s industry news, a Singapore PF looks to expand with an Alipay acquirer and Intuit comes to an agreement over data sharing with JPMorgan Chase.
In the U.S., regulators, businesspeople and other groups are in the midst of a debate about how financial technology firms should be regulated. The OCC’s proposed special purpose national bank charter for fintech companies is one example; a white paper outlining policy objectives around the fintech sector issued by the Obama administration at the end of its term is another.

But the U.S. is hardly the only place where the deliberation over just how to oversee this rising sector is taking place. Financial technology is on the minds of governments worldwide, which signals real opportunity for payment facilitators.

In the U.S., regulators, businesspeople and other groups are in the midst of a debate about how financial technology firms should be regulated. The OCC’s proposed special purpose national bank charter for fintech companies is one example; a white paper outlining policy objectives around the fintech sector issued by the Obama administration at the end of its term is another. But the U.S. is hardly the only place where the deliberation over just how to oversee this rising sector is taking place. Financial technology is on the minds of governments worldwide, which signals real opportunity for payment facilitators.
In the announcement last week that Western Union had agreed to pay $586 million as part of a settlement with the Justice Department and the Federal Trade Commission to resolve investigations into anti-money laundering and consumer fraud violations, authorities described the settlement as the “largest forfeiture ever imposed on a money services business.”

What should payment facilitators take away from this settlement?

In the announcement last week that Western Union had agreed to pay $586 million as part of a settlement with the Justice Department and the Federal Trade Commission to resolve investigations into anti-money laundering and consumer fraud violations, authorities described the settlement as the “largest forfeiture ever imposed on a money services business.” What should payment facilitators take away from this settlement?
In our roundup of this week’s industry news, payment facilitators in the U.S. and in Europe are building out features and expanding their services.

Leading payment facilitator Stripe announced that it has added support for five local European payment methods: Bancontact, Giropay, iDEAL, SEPA Direct Debit, and SOFORT.

In our roundup of this week’s industry news, payment facilitators in the U.S. and in Europe are building out features and expanding their services. Leading payment facilitator Stripe announced that it has added support for five local European payment methods: Bancontact, Giropay, iDEAL, SEPA Direct Debit, and SOFORT.
The curtain closed this week on the comment period regarding the special purpose national bank charter the Office of the Comptroller of the Currency (OCC) proposed for financial technology companies in December.

The Electronic Transactions Association and Financial Innovation Now were two of the organizations that submitted comments prior to Tuesday’s deadline. Both said they welcomed the discussion about devising a regulatory framework that can support innovation in financial technology while effectively protecting the financial services system and the consumers it serves.

The curtain closed this week on the comment period regarding the special purpose national bank charter the Office of the Comptroller of the Currency (OCC) proposed for financial technology companies in December. The Electronic Transactions Association and Financial Innovation Now were two of the organizations that submitted comments prior to Tuesday’s deadline. Both said they welcomed the discussion about devising a regulatory framework that can support innovation in financial technology while effectively protecting the financial services system and the consumers it serves.
Policymakers in D.C. and across the country are looking at the modern payments industry with an eye towards regulating it, taxing it, or increasing their cost of doing business. Now is the time for industry officials to work with policymakers to shape good public policy.

One area state policymakers are examining is money transmitter laws. Regulations on money transmitters are changing rapidly and are changing how the payments industry operates.

Policymakers in D.C. and across the country are looking at the modern payments industry with an eye towards regulating it, taxing it, or increasing their cost of doing business. One area state policymakers are examining is money transmitter laws. Regulations on money transmitters are changing rapidly and are changing how the payments industry operates.
After a troubled year, online rental marketplace RadPad is moving in with LandlordStation.

After acquiring RadPad, the company unites both ends of the rental market – renters and landlords – under one roof. LandlordStation CEO Copley Broer says he expects this will be a differentiator in a market boasting many players who handle individual pieces of it well.

After a troubled year, online rental marketplace RadPad is moving in with LandlordStation. After acquiring RadPad, the company unites both ends of the rental market – renters and landlords – under one roof. LandlordStation CEO Copley Broer says he expects this will be a differentiator in a market boasting many players who handle individual pieces of it well.
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.
As President Obama leaves office and Donald Trump prepares to take the reins, a Republican Congress has declared repealing Obamacare to be one of its top priorities. But what that will entail and what the resulting healthcare system will look like is anyone’s guess at this point.

With so much uncertainty in the health care market, you might expect Eugene Sayan, the CEO of PF Softheon, whose platforms are used by insurers and health plan exchanges to market products to and accept payments from consumers, to be worried. You would be wrong.

As President Obama leaves office and Donald Trump prepares to take the reins, a Republican Congress has declared repealing Obamacare to be one of its top priorities. But what that will entail and what the resulting healthcare system will look like is anyone’s guess at this point. With so much uncertainty in the health care market, you might expect Eugene Sayan, the CEO of PF Softheon, to be worried. You would be wrong.
The unexpected election of Donald Trump has left many wondering what the impact will be to the regulatory environment of the financial services industry. A Republican president and Congress will have the potential to alter that environment, but questions remain about how much and how soon. Marsha Jones, president of the Third Party Payment Processors Association, shares her organization's perspective.
The unexpected election of Donald Trump has left many wondering what the impact will be to the regulatory environment of the financial services industry. A Republican president and Congress will have the potential to alter that environment, but questions remain about how much and how soon. Marsha Jones, president of the Third Party Payment Processors Association, shares her organization's perspective.
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.
Leading payment facilitator Shopify announced that it had integrated with Amazon, allowing its sellers to sell through Amazon stores directly from their Shopify accounts.

Rumors of the news before it was officially launched led shares of the company’s stock to spike.

Leading payment facilitator Shopify announced that it had integrated with Amazon, allowing its sellers to sell through Amazon stores directly from their Shopify accounts. Rumors of the news before it was officially launched led shares of the company’s stock to spike.
The president-elect spoke on the campaign trail about dismantling regulations, including the Dodd-Frank Act. So far, many of his appointees have been businessmen with anti-regulatory tendencies. The Republican Party has majorities in both the House and the Senate. Does this political climate mean payment facilitators should say good-bye to their compliance teams? Not so fast.
The president-elect spoke on the campaign trail about dismantling regulations, including the Dodd-Frank Act. So far, many of his appointees have been businessmen with anti-regulatory tendencies. The Republican Party has majorities in both the House and the Senate. Does this political climate mean payment facilitators should say good-bye to their compliance teams? Not so fast.
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.

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.

This week’s roundup of news from around the web includes a new partnership for Adyen, Asian expansion for PayPal’s Xoom, and growing cashless payments in India.

E-commerce technology provider VTEX announced a new partnership with Dutch payment facilitator Adyen, through which it has added payments processing and risk tools from Adyen to its platform. The partnership is geared to helping its customers grow their e-commerce businesses globally, the company said.

This week’s roundup of news from around the web includes a new partnership for Adyen, Asian expansion for PayPal’s Xoom, and growing cashless payments in India.
Dealing with all the places your credit card number has gone to pay for various subscriptions can become a bit unwieldy even for the average consumer.

Multiply that effect by the number of a company’s employees – for whom software and tools are increasingly cloud- and subscription-based – and you can begin to see how demanding the recurring billing model has become for many companies.

Dealing with all the places your credit card number has gone to pay for various subscriptions can become a bit unwieldy even for the average consumer. Multiply that effect by the number of a company’s employees – for whom software and tools are increasingly cloud- and subscription-based – and you can begin to see how demanding the recurring billing model has become for many companies.

Earlier this month, the OCC announced it would be accepting applications from financial technology companies for a new special purpose national bank charter.

The news is an acknowledgement that fintech firms are a rising segment of the economy and increasingly relied upon by consumers for financial services. But obtaining the charter will be costly and come with its own strict set of requirements. So what types of companies are likely to benefit from obtaining such a charter?

Earlier this month, the OCC announced it would be accepting applications from financial technology companies for a new special purpose national bank charter. The news is an acknowledgement that fintech firms are a rising segment of the economy and increasingly relied upon by consumers for financial services. But obtaining the charter will be costly and come with its own strict set of requirements. So what types of companies are likely to benefit from obtaining such a charter?
Releasing the findings of a new study this week, Mastercard argued that technology and digital solutions are key to improving access to financial services for those Europeans who are currently excluded from the system.

The survey looked into who the financially excluded are and why they are excluded from their countries’ financial services.

Releasing the findings of a new study this week, Mastercard argued that technology and digital solutions are key to improving access to financial services for those Europeans who are currently excluded from the system. The survey looked into who the financially excluded are and why they are excluded from their countries’ financial services.
As Rich Consulting president Deana Rich explains in this week’s PaymentFacilitator.com podcast – a re-run from August 24 – the Treasury’s beneficial ownership rule announced in May will require banks to perform KYC on all owners with more than 25 percent ownership as well as the person that manages or runs the business, and banks will likely turn that extra work over to ISOs or PFs underwriting merchants or submerchants.
As Rich Consulting president Deana Rich explains in this week’s PaymentFacilitator.com podcast – a re-run from August 24 – the Treasury’s beneficial ownership rule announced in May will require banks to perform KYC on all owners with more than 25 percent ownership as well as the person that manages or runs the business, and banks will likely turn that extra work over to ISOs or PFs underwriting merchants or submerchants.
In this week’s roundup of news, Procore Technologies reaches unicorn status, Freshbooks adds Apple Pay as a new payment method for its small business users, and two European companies team up to create a short-term financing solution through their new Sage Clic&Cash platform.
In this week’s roundup of news, Procore Technologies reaches unicorn status, Freshbooks adds Apple Pay as a new payment method for its small business users, and two European companies team up to create a short-term financing solution through their new Sage Clic&Cash platform.
On Friday, the OCC announced it will begin accepting applications for special purpose national bank charters from financial technology firms. Reception of this news has been generally positive, with industry organizations such as the Electronic Transactions Association and American Bankers Association issuing statements in support of such a charter.

But the early take on the news from industry insiders indicates that it is a mixed bag for individual companies. Applying for the charter may be either a smart move or a bad idea, depending on who you are and why you want it.

On Friday, the OCC announced it will begin accepting applications for special purpose national bank charters from financial technology firms. Reception of this news has been generally positive, with industry organizations such as the Electronic Transactions Association and American Bankers Association issuing statements in support of such a charter. But the early take on the news from industry insiders indicates that it is a mixed bag for individual companies. Applying for the charter may be either a smart move or a bad idea, depending on who you are and why you want it.

Typically, growing businesses are advised to develop expansion plans and stick to them. But sometimes you have to go where your customers lead you.

Being open to new verticals is one of the ways MemberPlanet has evolved from one college student with an idea for dramatically improving the financial management of his fraternal organization to a company that serves more than 13,000 nonprofits, faith-based organizations, alumni organizations, parent-teacher associations, and even the U.S. Air Force.

Typically, growing businesses are advised to develop expansion plans and stick to them. But sometimes you have to go where your customers lead you.
Last week, we spoke with Deana Rich about the special considerations behind underwriting payment facilitators. This week we take our focus on underwriting in the payment facilitator space a step farther. We talk with Eric Haru, executive vice president, Risk and Compliance, for Merchant e-Solutions about underwriting submerchants.
Last week, we spoke with Deana Rich about the special considerations behind underwriting payment facilitators. This week we take our focus on underwriting in the payment facilitator space a step farther. We talk with Eric Haru, executive vice president, Risk and Compliance, for Merchant e-Solutions about underwriting submerchants.
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.
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.
Facebook has received a license from the Central Bank of Ireland to serve as an electronic money institution in Europe.

The broad nature of Facebook’s existing user base – globally, the company has an average of 1.18 billion daily active users – may give it an advantage over any competitors looking to establish alternative payment schemes in Europe. But the fact that it is a social network first and a payment entity much later means the company needs to be very careful.

Facebook has received a license from the Central Bank of Ireland to serve as an electronic money institution in Europe.
The news on Friday (Nov. 25) that Stripe had raised $150 million of new funding on a company valuation of $9 billion has been seen by many as a validation that this is a company at the top of the fintech game.
The news on Friday (Nov. 25) that Stripe had raised $150 million of new funding on a company valuation of $9 billion has been seen by many as a validation that this is a company at the top of the fintech game.
This week we’re talking with Rich Consulting president and compliance expert Deana Rich about underwriting payment facilitators. How is it different from underwriting other entities, and what are some of the special considerations?

Acquirers who are thinking about entering a relationship with a payment facilitator need to fully understand the risks and how to control them before making the commitment, Rich said.

This week we’re talking with Rich Consulting president and compliance expert Deana Rich about underwriting payment facilitators. How is it different from underwriting other entities, and what are some of the special considerations?
Europe is undergoing a step change in banking and payment services, leveraging open API technology and new regulatory frameworks to make a historically cumbersome industry more competitive, secure and customer-friendly.

The goal? “Customer first” digital banking and Europe-wide faster payments to drive innovation and increase cross-border trade in a European B2C e-commerce market worth over 425 billion euros.

Europe is undergoing a step change in banking and payment services, leveraging open API technology and new regulatory frameworks to make a historically cumbersome industry more competitive, secure and customer-friendly. The goal? “Customer first” digital banking and Europe-wide faster payments to drive innovation and increase cross-border trade in a European B2C e-commerce market worth over 425 billion euros.

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.
Shyp announced this week that it is providing fulfillment services to merchant customers of leading PF and e-commerce platform Shopify. PFs like Shopify are continually looking for ways to add value for their customers. Shopify sees its relationships with partners such as Shyp as a significant way to provide that value to its sellers.
Shyp announced this week that it is providing fulfillment services to merchant customers of leading PF and e-commerce platform Shopify. PFs like Shopify are continually looking for ways to add value for their customers. Shopify sees its relationships with partners such as Shyp as a significant way to provide that value to its sellers.
This week we’re talking with Chris Bucolo, director of market strategy for managed security service provider ControlScan. Last week, Bucolo wrote a guest post for PaymentFacilitator.com in which he talked about how risk is viewed and managed within the payment facilitator space. He expands on the topic in this conversation.
This week we’re talking with Chris Bucolo, director of market strategy for managed security service provider ControlScan. Last week, Bucolo wrote a guest post for PaymentFacilitator.com in which he talked about how risk is viewed and managed within the payment facilitator space. He expands on the topic in this conversation.
In a roundup of this week’s news, AirPlus International and Airbnb are joining forces, NMI has added features to its platform for payment facilitators, and Stripe has rounded up handy tools for its merchants.
In a roundup of this week’s news, AirPlus International and Airbnb are joining forces, NMI has added features to its platform for payment facilitators, and Stripe has rounded up handy tools for its merchants.
Dutch payment facilitator Adyen has added WeChat Pay to the roster of local payment options available to its merchants. WeChat Pay is the payments feature within the popular Chinese WeChat messaging app.
Dutch payment facilitator Adyen has added WeChat Pay to the roster of local payment options available to its merchants. WeChat Pay is the payments feature within the popular Chinese WeChat messaging app.
Getting to the airport is not necessarily an easy thing to do. Driving yourself isn’t always practical, nor is it always pleasant after a long flight. Public transportation and shuttles can be difficult to schedule; you have to work with available times, and pick-up and drop-off points may not always be nearby.

GoOpti is looking to change all that, in an expanding number of locations across Europe.

Getting to the airport is not necessarily an easy thing to do. Driving yourself isn’t always practical, nor is it always pleasant after a long flight. Public transportation and shuttles can be difficult to schedule; you have to work with available times, and pick-up and drop-off points may not always be nearby. GoOpti is looking to change all that, in an expanding number of locations across Europe.
There is plenty of evidence that the payment facilitator market will grow significantly over the next few years. There are multiple drivers for this growth, including the belief that the increased complexity of compliance/security requirements for merchants will generate more interest in this payments model.

Although there is general agreement that the growth potential is large, there is a divergent set of opinions on how risky the model is, and how risk needs to be approached.

There is plenty of evidence that the payment facilitator market will grow significantly over the next few years. There are multiple drivers for this growth, including the belief that the increased complexity of compliance/security requirements for merchants will generate more interest in this payments model. Although there is general agreement that the growth potential is large, there is a divergent set of opinions on how risky the model is, and how risk needs to be approached.
For many micro and small merchants in developing countries, the ability to accept electronic payments is out of reach. Spotty electricity and internet access prevent reliable connectivity to payments infrastructure. The merchants’ low profit margins make buying equipment and paying service providers difficult. And in many cases, their customers prefer to pay in cash.

Yet a recent study commissioned by Visa argues that reliance on cash excludes individuals in the developing world from the wider economy. It says that access to affordable digital services has the potential to help lift individuals and families out of poverty.

For many micro and small merchants in developing countries, the ability to accept electronic payments is out of reach. Spotty electricity and internet access prevent reliable connectivity to payments infrastructure. The merchants’ low profit margins make buying equipment and paying service providers difficult. And in many cases, their customers prefer to pay in cash. Yet a recent study commissioned by Visa argues that reliance on cash excludes individuals in the developing world from the wider economy. It says that access to affordable digital services has the potential to help lift individuals and families out of poverty.

This week’s podcast continues our conversation with WePay Chief Strategy Officer Rich Aberman. Aberman discussed how WePay’s business model as a “partner-driven business” impacts its approach to geographic expansion.
This week’s podcast continues our conversation with WePay Chief Strategy Officer Rich Aberman. Aberman discussed how WePay’s business model as a “partner-driven business” impacts its approach to geographic expansion.
Government regulations laid out by the Bank Secrecy Act and the USA PATRIOT Act require businesses to follow certain practices to avoid facilitating criminal activity, even inadvertently. Together, these regulations form the backbone of anti-money laundering efforts in the U.S.

These government regulations are supported by card brand rules that provide direction on payment facilitators’ specific roles and responsibilities. This is an area that can be daunting to many new and even seasoned payment facilitators.

Dr. Heather Mark, Ph.D., director of compliance for ProPay, shared four critical AML practices the payment facilitators she meets do not always fully understand.

Dr. Heather Mark, Ph.D., director of compliance for ProPay, shares four critical AML practices the payment facilitators she meets do not always fully understand.
In this week’s podcast, we talk to WePay’s co-founder and Chief Strategy Officer, Rich Aberman. He shares his perspective on the trends that are impacting ISVs, and the ways ISVs are actually creating trends in commerce.
In this week’s podcast, we talk to WePay’s co-founder and Chief Strategy Officer, Rich Aberman. He shares his perspective on the trends that are impacting ISVs, and the ways ISVs are actually creating trends in commerce.
Buried within the 1,689-page Consumer Financial Protection Bureau (CFPB) “final rule,” or Prepaid Access Rule, are provisos that pertain to digital wallets. In a previous article, I shared the basic outlines of the rule itself and how it relates to digital payments. But how worried should payment facilitators who operate a digital wallet be?
Buried within the 1,689-page Consumer Financial Protection Bureau (CFPB) “final rule,” or Prepaid Access Rule, are provisos that pertain to digital wallets. In a previous article, I shared the basic outlines of the rule itself and how it relates to digital payments. But how worried should payment facilitators who operate a digital wallet be?
Both Etsy and Freelancer.com have tapped Adyen to power their payment solutions.

The Etsy partnership covers the U.S., Europe, and “other markets” where Etsy operates, according to the announcement. The company said it has been operating in China, Europe, India and North America for Freelancer.com.

While one marketplace connects buyers and sellers of handmade goods and the other service providers and their customers, in some ways, the payments needs of both are similar.

According to two press releases in as many days from payment facilitator Adyen, the company is actively signing up online marketplaces with global reach. Both Etsy and Freelancer.com have tapped Adyen to power their payment solutions.
Coming to agreement and collecting signatures is often just the first step for many businesses such as property management services, insurance agencies and contractors. The next step is getting paid.

Seeing a massive opportunity to add value for its more than 250,000 business clients, DocuSign is beta testing an integrated payment capability it hopes to officially launch next year.

Coming to agreement and collecting signatures is often just the first step for many businesses such as property management services, insurance agencies and contractors. The next step is getting paid. Seeing a massive opportunity to add value for its more than 250,000 business clients, DocuSign is beta testing an integrated payment capability it hopes to officially launch next year.

As card transaction volume grows, so does the level of fraud associated with those transactions.

In fact, growth in fraud is outpacing the growth in electronic transaction volume, according to new research from The Nilson Report. The publication said in a press release that global card fraud losses grew by 20.6% to total $21.84 billion last year, while transaction volume grew by 7.3%.

With statistics as grim as this, a smart approach to fraud detection is on many payment facilitators’ minds.

As card transaction volume grows, so does the level of fraud associated with those transactions. In fact, growth in fraud is outpacing the growth in electronic transaction volume, according to new research from The Nilson Report. The publication said in a press release that global card fraud losses grew by 20.6% to total $21.84 billion last year, while transaction volume grew by 7.3%.
In a wrap of news from Europe this week, a payment facilitator expands its POS system outside the U.K., Mastercard released research about what Britons are carrying in their wallets, and Visa announced when it will activate its 3D Secure 2.0 program in Europe.
In a wrap of news from Europe this week, a payment facilitator expands its POS system outside the U.K., Mastercard released research about what Britons are carrying in their wallets, and Visa announced when it will activate its 3D Secure 2.0 program in Europe.
In this week’s podcast, we talk to attorney Theo Monroe about money service businesses, also known as money transmitters. He says that payment businesses can sometimes engage in activities that qualify as money transmission activities under federal or state law – possibly without realizing it.

Federal and state authorities view money transmitters differently, which means that payment facilitators must understand and navigate varying regulations to make sure they are operating within the law, he says.

In this week’s podcast, we talk to attorney Theo Monroe about money service businesses, also known as money transmitters.
In the payment facilitator world, APIs are everywhere you look. In many cases, they’re the mechanism that allows the system to work – enabling payments infrastructure to integrate with other functions in a way that solves businesses’ unique problems.

So not surprisingly, API security is a hot topic. Does the use of APIs leave merchants more vulnerable to fraud? What are the special security considerations?

Not surprisingly, API security is a hot topic. Does the use of APIs leave merchants more vulnerable to fraud? What are the special security considerations?
A new white paper that will be released by Double Diamond Group on Thursday (Oct. 20) argues that the payment facilitator market holds significant potential for independent software vendors looking to generate new revenue.

The big names operating as payment facilitators already have used the PF model to garner a significant chunk of payment processing volume. According to the paper, large companies such as PayPal. Stripe and Square already collectively process hundreds of billions of dollars a year in gross payment volume. This number has the potential to go much higher as other companies enter the market.

A new white paper that will be released by Double Diamond Group on Thursday (Oct. 20) argues that the payment facilitator market holds significant potential for independent software vendors looking to generate new revenue.

Healthcare in the U.S. is a complicated mix of people and organizations both large and small. Patients navigate through small practices and large healthcare systems as well as individual and employer-provided insurance. Further adding to the complications are very specific regulations protecting patient data and the need to protect the patients’ payment information.

As a payment facilitator, InstaMed strives to connect those disparate parts through a single network. The company claims to connect more than two-thirds of the healthcare market and process tens of billions of dollars a year in healthcare payments.

Healthcare in the U.S. is a complicated mix of people and organizations both large and small. Patients navigate through small practices and large healthcare systems as well as individual and employer-provided insurance. Further adding to the complications are very specific regulations protecting patient data and the need to protect the patients’ payment information.
In this week’s PaymentFacilitator.com podcast, we talk to Jason Oxman, CEO of the Electronic Transactions Association. On Thursday (Oct. 20), the organization is releasing its new payment facilitator guidelines at its 2016 Strategic Leadership Forum in Palm Beach, Fla.

The document is intended to serve as a toolkit for best practices related to fraud detection and prevention, Oxman said.

In this week’s PaymentFacilitator.com podcast, we talk to Jason Oxman, CEO of the Electronic Transactions Association. On Thursday (Oct. 20), the organization is releasing its new payment facilitator guidelines at its 2016 Strategic Leadership Forum in Palm Beach, Fla.
An increasing number of online shoppers in the UK can now indulge in their shopping desires today and pay for them over time, by financing their purchase when they check out. Swedish payment facilitator Klarna is expanding availability of its ecommerce financing solution to reach more UK consumers through new agreements with Worldpay, BigCommerce, Shopify and CyberSource.
An increasing number of online shoppers in the UK can now indulge in their shopping desires today and pay for them over time, by financing their purchase when they check out.
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.
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?
Have you finished reading all 1,689 pages of the Bureau of Consumer Financial Protection (CFPB) “final rule” regarding prepaid cards and digital wallets? Probably not, but you’ve undoubtedly heard a wide variety of opinions about whether this is good or bad for those in the payments business. My advice: screen out the emotional reactions, focus on the facts, and let’s figure out where we go from here.

Of particular interest to many payment facilitators is how the rule impacts the growing world of digital payments.

Have you finished reading all 1,689 pages of the Bureau of Consumer Financial Protection (CFPB) “final rule” regarding prepaid cards and digital wallets? Probably not, but you’ve undoubtedly heard a wide variety of opinions about whether this is good or bad for those in the payments business.
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.
The line between fraud prevention and bad customer experience continues to be a tightrope the payments industry has to walk. While the correct balance hasn’t yet been struck, industry watchers are bracing for another attempt when EMVCo releases 3DSecure 2.0 later this year.

EMVCo, a technical body overseen by its six member organizations – American Express, Discover, JCB, Mastercard, UnionPay, and Visa – is currently collecting industry feedback on a draft version of the revised specification, with the final version expected to be released this year. But will it be an improvement? And what should payment facilitators be watching for?

The line between fraud prevention and bad customer experience continues to be a tightrope the payments industry has to walk. While the correct balance hasn’t yet been struck, industry watchers are bracing for another attempt when EMVCo releases 3DSecure 2.0 later this year.
Innovation and compliance are two terms that are not often heard together. But as Heather Mark, director of compliance at ProPay explains, payment facilitators bring a unique perspective to bear on the traditional payments industry. This can sometimes make things interesting, even for seasoned compliance professionals.
Innovation and compliance are two terms that are not often heard together. But as Heather Mark, director of compliance at ProPay explains, payment facilitators bring a unique perspective to bear on the traditional payments industry.
As small business lending continues its slow rebound from the recession, many small businesses are still experiencing frustration when they try to obtain funding to grow their businesses. In an analysis it conducted last year, the Wall Street Journal reported that small loans to businesses in 2014 remained down about 38% from their high in 2006.

In a move that builds on the payment facilitator model’s strengths in this challenging market, London-based Paysafe announced a relationship with lender IOU Financial last week. The agreement expands the global PF’s offerings beyond payment processing into an area it says will help it fuel the growth of North American small businesses.

As small business lending continues its slow rebound from the recession, many small businesses are still experiencing frustration when they try to obtain funding to grow their businesses.In a move that builds on the payment facilitator model’s strengths in this challenging market, London-based Paysafe announced a relationship with lender IOU Financial last week. The agreement expands the global PF’s offerings beyond payment processing into an area it says will help it fuel the growth of North American small businesses.
In the payments world, few things are as confusing or as controversial as network fees. The economics of a transaction routed over Visa or Mastercard rails could amount to a college-level course.

Rates for interchange, the amounts that the networks collect from retailers on behalf of card issuers, are often on merchants’ minds as they look for the most economical transaction routing options. But in recent years, the fees that the networks keep for themselves have generated plenty of ink.

In the payments world, few things are as confusing or as controversial as network fees. The economics of a transaction routed over Visa or Mastercard rails could amount to a college-level course.
Finally, a good use for selfies.

This week Mastercard announced that it is officially rolling out its biometric authentication technology, what it’s unofficially calling “Selfie Pay,” in Europe. Following on the heels of pilots in the Netherlands as well as the U.S. and Canada earlier this year, Mastercard is introducing the technology in 12 countries across Europe.

Finally, a good use for selfies. This week Mastercard announced that it is officially rolling out its biometric authentication technology, what it’s unofficially calling “Selfie Pay,” in Europe. Following on the heels of pilots in the Netherlands as well as the U.S. and Canada earlier this year, Mastercard is introducing the technology in 12 countries across Europe.
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.”
As Rick Oglesby argues in this week’s PaymentFacilitator.com podcast, Square is clearly evolving beyond its roots to a company that is able to grow along with its customers’ needs. The way it’s going about it offers some interesting perspectives for other PFs to consider.

Oglesby, principal of AZ Payments Group and a partner of Double Diamond Group, discusses why invoicing is a significant opportunity for Square, what gives the company “hooks” to help it keep customers for the long haul, and how Square benefits from a “test and learn” strategy.

As Rick Oglesby argues in this week’s PaymentFacilitator.com podcast, Square is clearly evolving beyond its roots to a company that is able to grow along with its customers’ needs. The way it’s going about it offers some interesting perspectives for other PFs to consider.
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.
Alipay is expanding its mobile wallet into the U.K. with help from Wirecard, a Munich-based payments processor, the company announced Wednesday (Sept. 28).

The Body Shop, a skin care retailer, will allow shoppers from China to use the Scan Alipay App in three London locations beginning Oct. 1. The launch coincides with the beginning of a week-long national holiday in China, during which thousands of Chinese tourists are expected to visit London, according to the press release.

Alipay is expanding its mobile wallet into the U.K. with help from Wirecard, a Munich-based payments processor, the company announced Wednesday (Sept. 28).
Of the seven stages of grief, the most remembered is denial. It's certainly remembered by small merchants, who often bizarrely gravitate to denial when they are told that they have been breached. At least that's how Chris Geron, chairman of the MAC Government Relations Committee, sees it.

The justifications for this denial are many, Geron said in this week's PaymentFacilitator.com podcast, a re-run from May 25. Some cling to the absurd belief that being granted a letter of PCI compliance means "that it's not possible to be breached," Geron said. Other small merchants react negatively to a notification from a cardbrand, bank or processor. "Small retailers often believe that if the information has not been shared with them by law enforcement, that the allegation of a breach is not true," Geron said. And some smaller store chains believe that only large chains get breached, he said, despite the fact that the opposite is true. But the most likely reality-denying aspect is financial.

Of the seven stages of grief, the most remembered is denial. It's certainly remembered by small merchants, who often bizarrely gravitate to denial when they are told that they have been breached. At least that's how Chris Geron, chairman of the MAC Government Relations Committee, sees it.
Rep. Patrick McHenry (R-NC) introduced a bill last week (Sept. 22) designed to help encourage financial technology innovation in the U.S.

We’ll be watching debate over this bill as it progresses, but we hope it opens up a dialogue about the best way to balance the need for regulatory oversight to protect consumers with the need to develop new products and services that meet rapidly changing demands.

Rep. Patrick McHenry (R-NC) introduced a bill last week (Sept. 22) designed to help encourage financial technology innovation in the U.S.
Last week (Sept.23), the Consumer Financial Protection Bureau filed a lawsuit against a credit repair company called Prime Marketing Holdings.

In a press release announcing the complaint, CFPB Director Richard Cordray said, “We are taking action against Prime Marketing Holdings for luring consumers with misleading claims about its ability to repair credit files and then charging illegal fees.” This case is a reminder to PFs that, when you’re dealing with merchants in high-risk categories, frictionless onboarding is not the way to go.

Last week (Sept.23), the Consumer Financial Protection Bureau filed a lawsuit against a credit repair company called Prime Marketing Holdings. This case is a reminder to PFs that, when you’re dealing with merchants in high-risk categories, frictionless onboarding is not the way to go.
A July exposure of transaction records from 899 submerchants serviced by payment facilitator BlueSnap highlights an important lesson for PFs.

In addition to making sure their own houses are in order, they bear responsibility for their submerchants and service providers as well. PFs who control all aspects of the card entry, where it’s impossible for a transaction to enter outside of their interface, may be able to certify compliance on behalf of all their submerchants. However, if any submerchant or service providers could conceivably get access to card data, the PF must ensure they are certified and registered. BlueSnap had to learn that the hard way.

A July exposure of transaction records from 899 submerchants serviced by payment facilitator BlueSnap highlights an important lesson for PFs.
As the European Union nears the creation of new rules on payments providers for consumer authentication, many question their utility.

The European Banking Authority's proposed rules say that service providers have to choose two of three verification methods: knowledge (such as a password), possession (a card, phone or wearable) and/or inherence (fingerprints, voice or iris scan, for example).

As the European Union nears the creation of new rules on payments providers for consumer authentication, many question their utility.
Tipalti does a lot of things a PF does, except take credit card payments. The B2B accounts payable software service accepts six payment methods and does pre-payment checks against AML and OFAC lists and enables global payments, herding 26,000 payments rules and 120 currencies while streamlining supplier onboarding and providing everything but tax returns to its clients.

Tipalti just got $14 million in funding and chief marketing officer Rob Israch says accepting card payments is most likely in its future. It's another example of a perfect candidate to become a PF, but Israch says because it uses so many partners to do what it does, when it offers card payments to suppliers, freelancers, etc., the facilitation would most likely be outsourced. The company helps pay approximately 750,000 suppliers and remits $2 billion annually.

Tipalti does a lot of things a PF does, except take credit card payments.
The B2B accounts payable software service accepts six payment methods and does pre-payment checks against AML and OFAC lists and enables global payments, herding 26,000 payments rules and 120 currencies while streamlining supplier onboarding and providing everything but tax returns to its clients.
In Dallas Sep. 27 the Merchant Acquirers Committee (MAC) hosts its Midwestern Regional Training meeting, one of its three regional gatherings packed with presentations and networking. Non MAC members are welcome to the all-day event that features seven sessions on topics presented by company executives from Visa, Mastercard, Rich Consulting, Mitigator, Kount, and Aperia.

Jim Bibles, vice president and chief compliance officer at Aperia and a MAC director, said in this week's paymentfacilitator.com podcast that the day is capped by a roundtable moderated by himself and Rich Consulting president Deana Rich. They enable the audience to ask questions that most times are answered by someone in the room, either a moderator or audience member.

In Dallas Sep. 27 the Merchant Acquirers Committee (MAC) hosts its Midwestern Regional Training meeting, one of its three regional gatherings packed with presentations and networking. Non MAC members are welcome to the all-day event that features seven sessions on topics presented by company executives from Visa, Mastercard, Rich Consulting, Mitigator, Kount, and Aperia.
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.
Preston Todd Advisors is an advisory firm for companies who want to merge, acquire or sell, specifically in the payments sector. Adam T. Hark is a managing director and principal of the Boston-based company, and has much to say about the payment facilitator niche in this week's edition of the paymentfacilitator.com podcast.

Hark says he thinks the traditional acquirer/ISO model is dead, and in its stead will be a model using new technologies enabling business management solutions and schemes. He says payment facilitation is not a 'segment killer,' replacing integrated POS or the traditional acquiring model.

Preston Todd Advisors is an advisory firm for companies who want to merge, acquire or sell, specifically in the payments sector. Adam T. Hark is a managing director and principal of the Boston-based company, and has much to say about the payment facilitator niche in this week's edition of the paymentfacilitator.com podcast.
Three months have passed since the referendum on June 23rd that set course for the UK, the EU’s second largest economy, to leave the European Union. Yet there is still considerable uncertainty on how this event will impact the payments industry and payment facilitators.

In this article, we look at the key considerations for U.S. PFs with an existing UK presence or those looking to set up a EU company to expand into European markets.

Three months have passed since the referendum on June 23rd that set course for the UK, the EU’s second largest economy, to leave the European Union. Yet there is still considerable uncertainty on how this event will impact the payments industry and payment facilitators.
Over half percent of UK consumers, 69 percent of U.S. consumers, and 60 percent of Australian consumers say they are becoming hesitant to make payments by phone.

A consumer survey by Syntec, one of the UK’s leading call center systems specialists, reveals that consumers in the U.S.and Australia agree with UK consumers: to decrease fraud, call centers should use the latest technology to hide payment card data from call center agents and call recordings.

Over half percent of UK consumers, 69 percent of U.S. consumers, and 60 percent of Australian consumers say they are becoming hesitant to make payments by phone.
Google "Wells Fargo scandal" and you get a choice of three: 2016, 2015, 2013, all of which may effect how SMBs view banks.

The public didn’t hold banks in high esteem to say the least after the high risk mortgage crisis of 2008 led to government bailouts, but the blatant practice and prolific number of fake accounts created between 2011 and 2015 shocked even the most jaded and cynical observers. Coincidentally, or not, Wells Fargo's stock doubled in the same time period. Wells Fargo of course is just the latest big bank to run afoul of regulators; HSBC drew charges of foreign exchange trade violations a week before the Wells Fargo scandal broke.

Google "Wells Fargo scandal" and you get a choice of three: 2016, 2015, 2013, all of which may effect how SMBs view banks.
Indian payment facilitator Paytm will be onboarding customers for its payments bank with eKYC enabled by India's voluntary national identification program, Aadhaar.

As of Sep. 5, 2016, 87 percent of India's 1.2 billion people had registered for the unique 12-digit number. To register, residents have to bring three forms of identification (proof of identity, proof of address, proof of birthdate) to an enrollment center, where their fingerprints and irises will be scanned.

Indian payment facilitator Paytm will be onboarding customers for its payments bank with eKYC enabled by India's voluntary national identification program, Aadhaar.
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.
There has been a 50 percent increase in global cybercrime attacks, with 1 out of 10 new account applications now being rejected. This reflects the dual challenge of a rising threat as well as the potential for considerable impact on customer experience. These statistics come from a ThreatMetrix report named "ThreatMetrix Cybercrime Report," and it gives a number of other powerful warnings:

*A larger supply of stolen identities not surprisingly leads to a growing number of attacks based on those identities. As those identities are shared, sold, and further distributed, the risk multiplies; the report shows a 250 percent year over year increase.

There has been a 50 percent increase in global cybercrime attacks, with 1 out of 10 new account applications now being rejected. This reflects the dual challenge of a rising threat as well as the potential for considerable impact on customer experience. These statistics come from a ThreatMetrix report named "ThreatMetrix Cybercrime Report," and it gives a number of other powerful warnings:
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.
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.
Cozy, a platform to streamline interactions between property managers and renters, just secured what it hopes is its last round of funding, an $8.5 million Series B led by American Family Ventures. The four-year-old company strives to make the renting process between independent landlords and renters simple, secure and intuitive.

In three years Cozy has worked with three payment processors –BancBox, Balanced Payments, and currently Stripe--and vice president of engineering Rob Galanakis shared on this week's paymentfacilitator.com podcast the company's trials and tribulations with the churn and the decision whether to become a payment facilitator.

Cozy, a platform to streamline interactions between property managers and renters, just secured what it hopes is its last round of funding, an $8.5 million Series B led by American Family Ventures. The four-year-old company strives to make the renting process between independent landlords and renters simple, secure and intuitive.
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.
The U.S. Treasury clarified its anti money laundering regulations regarding foreign correspondent banks Aug. 30 and the attention it got was a reminder how weighty the Treasury's words are to those in the payments world. Any time the Treasury speaks about AML PFs should listen, says Deana Rich, president of Rich Consulting.

Rich, a compliance expert, says KYC and AML and transaction monitoring are all practices that the technology companies who become payment facilitators are not used to overseeing, so attention to detail is highly recommended.

The U.S. Treasury clarified its anti money laundering regulations regarding foreign correspondent banks Aug. 30 and the attention it got was a reminder how weighty the Treasury's words are to those in the payments world. Any time the Treasury speaks about AML PFs should listen, says Deana Rich, president of Rich Consulting.
Chris McNabb didn’t set out to run an online registration tool for children's activity centers, he just wanted a better way to register kids for classes at his gymnastics facility. A techie but not a developer, he shopped his cloud-based solution at tradeshows around the turn of the century and in 2008 founded iClassPro.

Then, he used third party payment gateways but the hassles of the multiple gateways and extra friction "was weighing us down," he says. Three years ago iClassPro became a payment facilitator and McNabb gained peace of mind and business growth. In this week's edition of the paymentfacilitator.com podcast, McNabb explains the switch: what it solves, what the change entailed, how it has helped, and what the future holds.

Chris McNabb didn’t set out to run an online registration tool for children's activity centers, he just wanted a better way to register kids for classes at his gymnastics facility. A techie but not a developer, he shopped his cloud-based solution at tradeshows around the turn of the century and in 2008 founded iClassPro.
If you can't beat 'em, buy 'em, or maybe incubate 'em.

This is corporate banking's attitude toward the fintech that is competing with them, making traditional banking and its customers things of the past. Slower to innovate, bound by regulations and size, banks are increasingly investing money and time in fintech startups to benefit from the agility and creativity of outsiders who have grown up digital.

If you can't beat 'em, buy 'em, or maybe incubate 'em.
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.
Clearly, Visa is a believer that grass doesn't grow on a rolling stone. It's harder to stay at the top than it is to get there.

A recent article lauded Visa but wondered if it wasn't being overvalued. We report but don't comment here on the stock market or individual stock performance but we are a big fan of the card brands and would like to compile the reasons Visa has a bright future.

Clearly, Visa is a believer that grass doesn't grow on a rolling stone. It's harder to stay at the top than it is to get there.
As Rich Consulting president Deana Rich explains in this week's paymentfacilitator.com podcast, the Treasury’s beneficial ownership rule announced in May will require banks to perform KYC on all owners with more than 25 percent ownership as well as the person that manages or runs the business, and banks will likely turn that extra work over to ISOs or PFs underwriting merchants or submerchants.

There are different impacts to banks and their PF partners based on the size and ownership/operation structure of the merchant. The largest category of submerchants are sole proprietors or owned by one person, who also runs the business. All PFs are performing KYC on these owners and therefore there is no change to this category.

As Rich Consulting president Deana Rich explains in this week's paymentfacilitator.com podcast, the Treasury’s beneficial ownership rule announced in May will require banks to perform KYC on all owners with more than 25 percent ownership as well as the person that manages or runs the business, and banks will likely turn that extra work over to ISOs or PFs underwriting merchants or submerchants.
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.
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.
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.
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.
The payment facilitator model is exploding because of the vast number of small to medium sized merchants who like their lives uncluttered by multiple partners trying to help them run their business, including those that enable them to accept electronic payments. They want the simplicity of valuable services as well as payment ability, and not from two vendors.

But becoming a payment facilitator is no picnic; who's there to help potential payment facilitators who are hesitant to take on the maze of underwriting, compliance, fraud risk, and monitoring despite the growing evidence that market share and revenue can be gained?

The payment facilitator model is exploding because of the vast number of small to medium sized merchants who like their lives uncluttered by multiple partners trying to help them run their business, including those that enable them to accept electronic payments. They want the simplicity of valuable services as well as payment ability, and not from two vendors.
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.
There was a host of stories last week on the occasion of the 10-month anniversary of the Oct. 15, 2015 EMV migration date. While there have been extensions to the date of transfer of liability from issuers to non-EMV enabled merchants, apparently the story writers couldn’t wait for the more traditional annual lookback. Major data thus far: the U.S. is the only region in the world where chip card usage is lower than chip card deployment and adoption, and is last by far of the globe's six regions in both deployment and use.

Some real developments around EMV took place this past week though, as the pursuit of a more robust infrastructure and consumer acceptance continues:

There was a host of stories last week on the occasion of the 10-month anniversary of the Oct. 15, 2015 EMV migration date. While there have been extensions to the date of transfer of liability from issuers to non-EMV enabled merchants, apparently the story writers couldn’t wait for the more traditional annual lookback. Major data thus far: the U.S. is the only region in the world where chip card usage is lower than chip card deployment and adoption, and is last by far of the globe's six regions in both deployment and use.
Recent attention has been paid to lower use of credit card by millennials but the snapshot is worse than the movie, says one analyst.

A survey commissioned by Bankrate and compiled by Princeton Survey Research Associates International shows that more than 60 percent of millennials do not own a credit card. Conversely, 70 percent of people over 30 years old do have at least one credit card. Are card brands panicking, or are their recent moves toward ACH (PayPal/Visa, Mastercard/VocaLink, clearXchange and both brands) a response by diversifying?

Recent attention has been paid to lower use of credit card by millennials but the snapshot is worse than the movie, says one analyst.
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.
The payments world lost a favorite when Ken Elderts passed away Aug. 6.

When he wasn't a payments executive for the Western States Acquirers Association, VeriFone, TASQ Technology, Dejavoo Systems, and most recently AnywhereCommerce, Elderts loved fastpitch softball, airplanes and new technology. Elderts was known for his mentorship, warmth, smiles and hugs.

The payments world lost a favorite when Ken Elderts passed away Aug. 6.

allpago, one of Latin America's leading payment facilitators, is using a real estate golden rule to achieve stunning growth, mirroring PF growth in the region. Enabling companies globally to do business and accept payments across Latin America, allpago uses locally-preferred credit cards and alternative payment methods via location-based checkout, and recently achieved 150 percent annual growth in transaction volume.

Double Diamond Group president Todd Ablowitz says allpago's dominance is further proof of the power of payment facilitators.

allpago, one of Latin America's leading payment facilitators, is using a real estate golden rule to achieve stunning growth, mirroring PF growth in the region. Enabling companies globally to do business and accept payments across Latin America, allpago uses locally-preferred credit cards and alternative payment methods via location-based checkout, and recently achieved 150 percent annual growth in transaction volume.
First, Visa and PayPal scratched each other's backs, and industry observers expect it won’t be long until Mastercard and maybe American Express align similarly with PayPal. Then Mastercard announced the purchase of most of U.K. ACH king VocaLink. August 2, Early Warning Services announced that both Visa and MasterCard joined its clearXchange peer-to-peer network.

What will happen next in the maneuvering of card brands gaining major footholds in the world of banking, peer-to-peer payments and ACH?

First, Visa and PayPal scratched each other's backs, and industry observers expect it won’t be long until Mastercard and maybe American Express align similarly with PayPal. Then Mastercard announced the purchase of most of U.K. ACH king VocaLink. August 2, Early Warning Services announced that both Visa and MasterCard joined its clearXchange peer-to-peer network.
One of the cyberthief's favorite tactics these days is transaction laundering, where the bad guy takes their bad transactions—usually for drugs, gambling, counterfeit goods or human trafficking—and runs them through seemingly good web sites, ones ostensibly trying to sell innocuous products.

There are things that a payment facilitator can do to thwart such efforts and that is the focus of this week's podcast, a re-run from March 30, featuring Deana Rich, president of Rich Consulting.

One of the cyberthief's favorite tactics these days is transaction laundering, where the bad guy takes their bad transactions—usually for drugs, gambling, counterfeit goods or human trafficking—and runs them through seemingly good web sites, ones ostensibly trying to sell innocuous products.
Don't pin your hopes on PIN. That's the advice of a report from the Aite Group, which claims that the cost of having to implement PIN for all card transactions, especially for merchants who don’t already have PIN pads, may just not be worth the expense considering the limited impact on fraud and merchant liability.

The report "Chip Cards in the United States: The PIN, PINless, Debit, Credit Conundrum" says because merchants misunderstand fraud and their own liability risks, a large majority (65 percent of those surveyed) are in favor of implementing chip and PIN in EMV card transactions. None of the issuers surveyed were in favor of it.

Don't pin your hopes on PIN. That's the advice of a report from the Aite Group, which claims that the cost of having to implement PIN for all card transactions, especially for merchants who don’t already have PIN pads, may just not be worth the expense considering the limited impact on fraud and merchant liability.
It can't be said enough: If you want to be special, specialize.

The way to success in payment facilitation is not to appeal to as many merchants as possible, it's to appeal to as many of a certain kind of merchants as possible. There are exceptions like bill.com, which targets any business that pays employees, but even then it specializes in one part of what merchants need: to streamline accounts payable and receivable.

It can't be said enough: If you want to be special, specialize.
First things first: In our opinion, the Treasury's May 11 FinCEN rules are going to impact ISOs and Payment Facilitators alike, in that banks are going to make them follow these new rules.

Although the rule does not speak to ISOs or PFs underwriting merchants or submerchants, we fully believe if you are required to do KYC now -- and ISOs and PFs are required to do KYC now -- they will be required to do the increased KYC under the new rules.

First things first: In our opinion, the Treasury's May 11 FinCEN rules are going to impact ISOs and Payment Facilitators alike, in that banks are going to make them follow these new rules.
With the average Paydex Index score dropping fast, SMBs are biting the interchange bullet and encouraging payment cards—all to accelerate payments. In step payment facilitators, who know a few things about fast payments and reducing interchange.

Paydex, a Dun & Bradstreet credit rating for businesses, fell 3 percent during the first half of this year from the last six months of 2015, and that followed a 1 percent increase at the end of last year when compared with the first half of 2015. The decline means companies are taking longer to pay their B2B bills, and to compensate, the waiting businesses ask their customers to use credit cards for payments either in full or as deposit so faster consumer payment fills the void left by slower partner payments.

With the average Paydex Index score dropping fast, SMBs are biting the interchange bullet and encouraging payment cards—all to accelerate payments. In step payment facilitators, who know a few things about fast payments and reducing interchange.
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.
Onboarding merchants in less than a week, nearly a month quicker than what the CEO says is the industry standard, Indian payment facilitator Razorpay has used that impressive stat to sign up more than 8,000 Indian merchants, including mom-and-pops and global chains such as Papa John’s. Not bad for a company that wasn’t even a Mastercard payment facilitator until last year.

A member of Mastercard's Start Path program since 2015, Razorpay is precisely how the card brand envisions signing 40 million merchants by 2020. The challenges are as plentiful as the opportunities.

Onboarding merchants in less than a week, nearly a month quicker than what the CEO says is the industry standard, Indian payment facilitator Razorpay has used that impressive stat to sign up more than 8,000 Indian merchants, including mom-and-pops and global chains such as Papa John’s. Not bad for a company that wasn’t even a Mastercard payment facilitator until last year.
Mastercard has aggressive goals-and has failed to show how they will meet them. That's one of several reasons for the card brand's reliance-nay, dependence-on payment facilitators. PFs are not helpful to MC's strategy: They are the only thing that gives it a chance to work.

Payment facilitators are absolutely crucial to Mastercard's stated goal of adding 40 million micro and small merchants to its base in five years. Banks can't provide the tech necessary to onboard so large a number, says Double Diamond Group president Todd Ablowitz in this week's podcast, and onboarding—speedy onboarding—is a specialty of payment facilitators.

Mastercard has aggressive goals-and has failed to show how they will meet them. That's one of several reasons for the card brand's reliance-nay, dependence-on payment facilitators. PFs are not helpful to MC's strategy: They are the only thing that gives it a chance to work.
Small business is booming; sometimes it needs a payment facilitator and sometimes it becomes one. Sometimes huge business takes the plunge too.

Microsoft this past week introduced a Microsoft Office Service named Microsoft Bookings, designed to ease scheduling of appointments for business owners between themselves, employees and customers. It's a short leap to see that businesses could ask customers making appointments to pay first or lock in a date with a deposit. MindBody comes to mind, with its focus on wellness businesses and appointment bookings and payment enabling.

Small business is booming; sometimes it needs a payment facilitator and sometimes it becomes one. Sometimes huge business takes the plunge too.
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.
PFs, make sure your PayPal and Visa relationships are strong. PF giant PayPal and card brand titan Visa each struck digital gold from a partnership announced last week: PayPal can be used with contactless payments because it gets access to Visa's tokenization feature, while Visa gets access to PayPal's 188 million users and can sell issuers on a differentiator the other brands don’t have.

Rick Oglesby, principal of AZ Payments Group and a partner of Double Diamond Group, says on this week's paymentfacilitator.com podcast that frictionless speedy payment processes drives the deal on both ends. PayPal has the signups to cut down a step at checkout while Visa has the rails to decrease the time it takes for PayPal to get paid by banks.

PFs, make sure your PayPal and Visa relationships are strong. PF giant PayPal and card brand titan Visa each struck digital gold from a partnership announced last week: PayPal can be used with contactless payments because it gets access to Visa's tokenization feature, while Visa gets access to PayPal's 188 million users and can sell issuers on a differentiator the other brands don’t have.
Facebook is charging back into the payments space but this time charging hard -- taking 5% on every donation it processes through its recently launched non-profit features, announced to page administrators Tuesday. Facebook introduced a Donate button for 19 select non-profits in 2013, but didn't charge a fee, instead sending 100 percent of donations to the charity. The social media giant says of each donation made through Donate buttons that keep donors on a non-profit's page:

"We’re committed to building products that make it as easy and safe as possible for people to contribute to the causes they care about. To make this possible, starting in August, 2% of contributions will be used to cover a portion of the costs of nonprofit vetting, security, and fraud protection, operational costs and payment support and 3% of contributions will go to payment processing. The remaining 95% will go straight to the nonprofit. Facebook's goal is to create a platform for good that’s sustainable over the long-term, and not to make a profit from these charitable giving tools.”

Facebook is charging back into the payments space but this time charging hard -- taking 5% on every donation it processes through its recently launched non-profit features, announced to page administrators Tuesday. Facebook introduced a Donate button for 19 select non-profits in 2013, but didn't charge a fee, instead sending 100 percent of donations to the charity. The social media giant says of each donation made through Donate buttons that keep donors on a non-profit's page: