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

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

When you drive on rough roads you don't have to slow down, but you do steer more carefully, guiding your car to smoother surfaces. Chinese payment facilitator AsiaPay is welcoming China's recent regulation tightening as a move to help clean up the country's payments industry's fraud-infested reputation. AsiaPay is reading the new road sign as it zooms by, according to our interview with its CEO Joseph Chan, a key player in the massive payments market that is China.
Payment facilitators are helping to save the planet. By enabling electronic and mobile payments for all sorts of markets – like lunch money and rent and race registrations-- that used checks and cash before, less paper is being used, and less paper needed means more trees left standing to produce more oxygen. That's not a stretch at all.

One such example of a new marketplace is Bill.com, which allows small- and medium-sized companies to electronify the entire accounts payable and accounts receivable process, chopping waiting times for both parties using it. And while Bill.com facilitates payments, it is not a payment facilitator, also not a stretch.

Payment facilitators are helping to save the planet.
By enabling electronic and mobile payments for all sorts of markets – like lunch money and rent and race registrations-- that used checks and cash before, less paper is being used, and less paper needed means more trees left standing to produce more oxygen. That's not a stretch at all.
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.
There is growing realization among researchers that the payment facilitator model is a rocket ship, and that old models in the payments industry have slowed their rolls at the PFs' expense. Major players are now saying what we’ve been shouting from the rooftops for years.

In the past three years, I said: "We are seeing more ISOs looking to do frictionless on-boarding and move into aggregation. Support for the aggregation model among acquirers is also increasing."

There is growing realization among researchers that the payment facilitator model is a rocket ship, and that old models in the payments industry have slowed their rolls at the PFs' expense. Major players are now saying what we’ve been shouting from the rooftops for years.
Chuck Danner, GM of Payfacs for processor Vantiv, admires not only the software expertise of payfacs but also their creative nature in finding new verticals to help with their value-adds and efficiencies. "We're reliant on these companies for new ideas," Danner said in this week's edition of the PaymentFacilitator.com podcast.

Danner said payfacs are ideal for emerging markets that were either less complicated, non-existent or not tech-enabled, such as healthcare, ride-sharing, crowd funding and vending machines. Because the payfac model is so young, the need and opportunities for payfacs are outpacing the supply. "Growth is phenomenal," Danner said, but closing that gap will take "maturity and time."

Chuck Danner, GM of Payfacs for processor Vantiv, admires not only the software expertise of payfacs but also their creative nature in finding new verticals to help with their value-adds and efficiencies. "We're reliant on these companies for new ideas," Danner said in this week's edition of the PaymentFacilitator.com podcast.
Have retailers suddenly started developing backbones, in terms of pushing back on payments companies? On Monday (June 27), Kroger sued Visa about how it was implementing EMV, in much the same way that Walmart and Home Depot have done. This follows Walmart kicking Visa out of Canada and a major German company rejecting PayPal after PayPal apologized and reinstated it. Did somebody spike the NRF water fountains with super-caffeine or something? Or have merchants decided that they can push back on payments giants with little risk of meaningful pain?

EMV rules seems to have been the PIN straw that broke the POS camel's back, as even Apple Pay has suffered performance degradations following EMV migrations. The big picture arguments about security—that it's blindingly obvious that PIN is far more secure than signature—are obscured by the reality that this is really a fight about interchange fees. And the EMV argument that the path to PIN must be glacially slow or else American consumers will freak out from the change, despite the fact that most are quite used to PINs from ATMs and debit cards, is frighteningly valid. And here it is in the land of EMV rules that grocery giant Kroger makes it stand.

Have retailers suddenly started developing backbones, in terms of pushing back on payments companies? On Monday (June 27), Kroger sued Visa about how it was implementing EMV, in much the same way that Walmart and Home Depot have done. This follows Walmart kicking Visa out of Canada and a major German company rejecting PayPal after PayPal apologized and reinstated it. Did somebody spike the NRF water fountains with super-caffeine or something? Or have merchants decided that they can push back on payments giants with little risk of meaningful pain?
Of all of the various payments hotspots that payment facilitators need to focus on, gaming—and all of its in-app potential—may be the one of the most lucrative. Witness Tencent Holdings Ltd., which this week confirmed plans to drop $8.6 billion to buy an 84 percent slice of the Finnish maker of the Clash Of Clans mobile game.

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

Of all of the various payments hotspots that payment facilitators need to focus on, gaming—and all of its in-app potential—may be the one of the most lucrative. Witness Tencent Holdings Ltd., which this week confirmed plans to drop $8.6 billion to buy an 84 percent slice of the Finnish maker of the Clash Of Clans mobile game.
For the payments geeks among us, transaction processing can be arresting. But in a bizarre twist, some police are doing both: arresting and processing payments and doing them both in the middle of a traffic stop on the side of the road. Will the familiar flashing-red-light refrain soon be "License, registration and Visa card, please?" In Oklahoma City, the answer might be "yes."

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

For the payments geeks among us, transaction processing can be arresting. But in a bizarre twist, some police are doing both: arresting and processing payments and doing them both in the middle of a traffic stop on the side of the road. Will the familiar flashing-red-light refrain soon be "License, registration and Visa card, please?" In Oklahoma City, the answer might be "yes."
There are at least two great reasons to jump into the payment facilitator game-- increased revenues and market share—and many many tools to help. One of those tools is advice from the hard-won success achieved by those who have made the leap.

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

There are at least two great reasons to jump into the payment facilitator game-- increased revenues and market share—and many many tools to help. One of those tools is advice from the hard-won success achieved by those who have made the leap.
The pain of keeping all the rules and regulations straight for a payment facilitator is only exceeded by the pain of not keeping them straight. A PF has to protect itself from merchant problems with underwriting and monitoring, while adhering to the mandates from card brands and acquirers. It's a lot now, but as everyone knows, there's more coming.

As heard in this week's edition of the PaymentFacilitator.com podcast, the best PFs can do to mitigate excessive regulation from without is to do more within, said Rich Consulting president Deana Rich, moderator of the session Emerging Threats Cage Match: Compliance v. Fraud at the second annual Payment Facilitator Day at Transact 16 in April.

The pain of keeping all the rules and regulations straight for a payment facilitator is only exceeded by the pain of not keeping them straight.

A PF has to protect itself from merchant problems with underwriting and monitoring, while adhering to the mandates from card brands and acquirers. It's a lot now, but as everyone knows, there's more coming.
The National Retail Federation (NRF) has never been a huge fan of the PCI Security Council. But in a detailed note sent to the U.S. Federal Trade Commission (FTC) late last month, NRF's lawyers crafted an impressive takedown of PCI, arguing that PCI represents a monopoly-like attempt by the card brands to control retailers.

The trigger for the FTC letter appears to be concerns that the FTC might incorporate PCI compliance with recommendations it is preparing—a move that would solidify and increase PCI's leverage and power. This is one of these arguments that is best articulated in the abstract. At the legal abstract hypothetical level, NRF makes an impressive-sounding case that PCI is indeed a powerplay by the cardbrands.

The National Retail Federation (NRF) has never been a huge fan of the PCI Security Council. But in a detailed note sent to the U.S. Federal Trade Commission (FTC) late last month, NRF's lawyers crafted an impressive takedown of PCI, arguing that PCI represents a monopoly-like attempt by the card brands to control retailers.