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August 30, 2012

NACHA Issues RFC on QR Encoding for Consumer Bill Pay

NACHA logo 140pxNACHA has issued a request for comment (RFC) on proposed guidelines for the use QR codes in a variety of bill payment scenarios.
“There has been growing interest in applying QR technology to transaction applications like bill payment to provide consumers with the opportunity to view statements, enroll for eBills, make payments, and set up payees in online banking applications,” said Eric Dunn, senior vice president, Strategic Payment Initiatives for Intuit. “As a member of the council, Intuit is pleased to work with NACHA and the CEBP membership on this particular initiative, as it has the industry representation of bill pay stakeholders and the forum needed to develop effective QR guidelines for bill pay.”

Comments are due by September 19, 2012. Issuance of the final guidelines are expected in Q42012.

Survey Says Self-Checkout is Faster and a Service Differentiator

Ncr logo 140pxNCR has released a new survey that says shoppers appreciate the speed and efficiency of self-checkout at the point of sale.
“Shoppers recognize the speed and value self-checkout provides and are eager to see it expanded into other retail segments,” said Scott Kingsfield, senior vice president and general manager, NCR Retail. “Even among shoppers using assisted checkout, there’s strong appreciation for the benefits this technology provides. Retailers increasingly are finding their shoppers want choices in how they interact with stores at which they shop, and one of the biggest choices these shoppers say they want is self checkout.”

August 29, 2012

VeriFone Opens SAIL Developer Portal for Mobile Payments Integration

Verifone logo 140pxVeriFone has announced the launch of the SAIL Developer Portal, providing application developers with access to tools and APIs that enable them to integrate with the SAIL mobile payment platform.
“SAIL is far more than a mobile payments app,” said Brian Hamilton, VeriFone vice president of SMB Commerce. “VeriFone’s open platform APIs provide independent developers and partners the ability to easily integrate underwriting, payments and settlement into their mobile products and services, often within a matter of days or weeks.”

Cardlytics' System Uses ‘Big Data’ to Deliver Targeted Rewards

Cardlytics logo 140pxWith the addition of Bank of America’s BankAmeriDeals program, Cardlytics announced that its nationwide Transaction-Driven Marketing system now incorporates more than 320 financial institutions reaching more than 75 million U.S. households. "Marketers are using Cardlytics to deliver relevant rewards and advertising based on individual consumer shopping behavior, resulting in substantial and measurable increases in retail store sales nationally."

Full Presenter Lineup for FinovateFall 2012 Finally Revealed

Finovate fall 2012The Finovate Group has announced the full lineup of the 64 companies that will be doing demos at FinovateFall 2012 on "great new innovations in everything fintech -- from PFM to security, from crowdfunding to mobile payments, and much more." This falls conference will be held at the Javits Convention Center on September 12th and 13th.

MasterCard, Everything Everywhere Announce Mobile Payments Partnership

MasterCard logo 140pxMasterCard and Everything Everywhere, the UK’s largest communications company, have announced an exclusive, five-year partnership to develop mobile and digital payment solutions for Everything Everywhere’s 27 million UK customers.
“We’re delighted to be working with Everything Everywhere, the UK’s leading mobile operator," said Marion King, president of MasterCard UK & Ireland. "MasterCard’s vision is of a world beyond cash, where consumers and small businesses alike can benefit from simple payments using smart technology. The partnership we are announcing today builds on our strong heritage in the mobile payments space and ensures that MasterCard remains the partner of choice for leading businesses in the UK.

NACHA Issues RFC on P2P ACH Rules

NACHA logo 140pxNACHA has issued a request for comment (RFC) on a proposal to amend the NACHA Operating Rules to standardize the use of the ACH Network for person-to-person (P2P) payments. The proposal notes that while the current NACHA rules do not specifically address PSP payments, many financial institutions and non-financial institutions are already either offering P2P payments over the ACH Network already or plan to in the near future. Comments are due by October 1, 2012.

August 27, 2012

Google Wallet Update (Video Q&A)

Google logo 140pxGoogle has recently posted a Google Wallet Q&A Video from Google Developers Live. Robin Dua, the product manager for Google Wallet, talks about Google's shift to the cloud and a potential phone-to-phone payment capability.

August 23, 2012

Study Reveals 15 Million US Consumers of Small-Dollar Credit Products

CFSI Logo Small The Center for Financial Services Innovation (CFSI) released a new study that uncovers reasons why consumers use potentially harmful small-dollar credit products and highlights the need for better high-quality credit solutions.
“Every year, millions of American consumers use small-dollar credit products for quick access to cash,” said lead author, Rob Levy, Manager, Innovation and Research at CFSI. “These products — payday loans, pawn loans, direct deposit advance loans, auto title loans, and non-bank installment loans — often come with high fees or interest rates and can lead consumers into a cycle of repeat usage and mounting debt. Our goal with this study was to see where the market is today, and encourage development of high-quality credit as defined by affordability, transparent marketing, a structure that supports repayment without creating a cycle of repeat borrowing, and offering the opportunity for credit-building.”

The study, supported by the Ford Foundation, surveyed over 1,100 small-dollar credit (SDC) consumers, plus an additional 500 non-SDC consumers for comparison.

August 22, 2012

PayPal and Discover to Bring PayPal to Millions of In-Store Locations

PayPal DiscoverPayPal has announced an extension of its offline strategy by teaming up with Discover to bring PayPal to more than 7 million merchant locations across the U.S.
"We couldn't be more thrilled to work with Discover. This relationship quickly extends PayPal's reach to millions of merchant locations nationwide and is a milestone moment for us that will create new benefits for Discover merchants without requiring new hardware or software,” said Don Kingsborough, PayPal’s Vice President of Retail. "This relationship will deliver a truly seamless digital wallet, available most places consumers shop offline, which offers the speed, simplicity and security already enjoyed by 113 million active PayPal customers online."

Rollout to merchants will launch in April 2013.

August 21, 2012

2012 Debit Issuer Study

Pulse logo 140pxAccording to PULSE, debit issuers participating in the 2012 Debit Issuer Study expect to see a 15% growth for PIN debit, and 8% growth in signature debit transactions this year.
The debit market is expanding at the low-end, with small-ticket transactions continuing to displace cash. While the average ticket on a debit transaction is $38, the median is just $19, with more than 30 percent of transactions now less than $10.

Visa to Launch Point-to-Point Encryption Service

Visa logo 60pxhVisa has announced a new service, 'Visa Merchant Data Secure with Point-to-Point Encryption', that will be marketed through acquirers in early 2013 to merchants.
"Merchants large and small have expressed an interest in encryption as a way to protect cardholder data in their payment systems and simplify their security protocols," said Ellen Richey, Chief Enterprise Risk Officer, Visa Inc. "Since encrypted data can't be used to commit fraud, Visa's point-to-point encryption solution can significantly reduce the risk and impact of data compromises."

Revel Systems Brings iPad iPOS System To Supermarket Industry

Revel systems logo 140x60pxRevel Systems has announced the release of its iPOS system designed specifically for supermarkets and grocery stores.
Revel Systems is about building a platform for all commerce to interact, and our Grocery POS system has been in development for over a year to provide our customers with the features they really want and need to run their businesses,” said Lisa Falzone, CEO and co-founder of Revel Systems. “The payment industry is super competitive right now, not to mention that these specialty stores want sleek design with attachment to best-of-breed peripherals."

Hardware connections for all the usual peripherals (PIN pad, printers, etc.) is done wirelessly via the Revel Router. The new configuration also has built in support for Dwolla and LevelUp. This photo nicely captures the idea.

August 20, 2012

August 19, 2012

Payments Views - Bankers to NACHA: 1978 Is Modern Enough for Us!

GP Logo Horizontal 140pxGlenbrook's Carol Coye Benson is disappointed at the lack of banking industry support for moving to same day ACH. According to Carol, she files this kind of banker thinking in her “don’t worry about online music, CD’s work just fine” folder. Read Carol's full commentary on this issue over on our sister site.

August 16, 2012

Discover Brings Google Wallet to Its Cardmembers

Discover logo 140pxDiscover has announced Discover announced that it is partnering with Google to allow its cardmembers to save their credit card directly into Google Wallet by logging into the online Account Center at
“Our cardholders regularly use their Discover card to make purchases and payments online, in-store and now more frequently through their mobile devices,” said Sanjay Gosalia, Director of Mobile at Discover. “By offering the ability to join Google Wallet through our Account Center, Discover is providing our cardmembers with even greater flexibility and convenience when it comes to paying for their purchases.”

"We’re excited to partner with Discover to make it even easier for cardmembers to pay for their purchases,” said Robin Dua, Head of Product Management, Google Wallet. “By providing a simple way for cardholders to securely add their credit card to Google Wallet directly from the Discover website, we’re extending the opportunity to pay with Discover through Google Wallet at hundreds of thousands of merchants."

Google says that Discover is the first issuer to launch an implementation of its new Save to Wallet API for Payment Cards.

Square Introduces Simple Monthly Pricing for Merchants

Square logo 140pxSquare as announced new simple pricing for small businesses - a flat $275 monthly fee for merchants who process up to $250,000 per year and for transactions up to $400 in value.
“For 62 years, merchants have suffered complicated, expensive processing fees. Square is the first company to rethink electronic payment pricing with the merchant in mind. We are giving merchants affordable, predictable pricing, ” said Square CEO and co-founder Jack Dorsey. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”

Doing the math, Square's new flat fee pricing will save fees for merchants who do over $100,000 annually in swipe payment volume as compared to its standard 2.75%/swipe fee. For example, a merchant doing $200,000/year will have an effective discount rate of 1.375%. Manually-entered card transactions are not included in the flat fee - they continue to be priced at 3.5% + 15 cents per transactions.

August 15, 2012

Retailers Form Merchant Customer Exchange (MCX) to Deliver Mobile Wallet

Mcx logo 140x60pxA group of the merchants announced that it has formed Merchant Customer Exchange (MCX), a new company dedicated to offering consumers a versatile mobile-commerce experience that will combine the convenience of paying at the register with customizable offers.
“MCX will leverage mobile technology to give consumers a faster and more convenient shopping experience while eliminating unnecessary costs for all stakeholders,” said Mike Cook, corporate vice president and assistant treasurer, Wal-Mart. “The MCX platform will employ secure technology to deliver an efficiency-enhancing mobile solution available to all merchant categories, including retail stores, casual dining, petroleum and e-commerce.”

The initial group of MCX merchants "serve nearly every smartphone-enabled American and account for approximately $1 trillion in annual sales." The MDX website is located at The domain is registered to First Data.

Payments Views - So You Want to Start a Payments Company?

GP Logo Horizontal 140pxA great friend of Glenbrook’s is Broox Peterson, formerly Senior Vice President and Assistant General Counsel at Visa International and currently in private practice. In 2006, Broox wrote a great article that we shared on Payments News about regulatory implications that entrepreneurs may want to consider when building a new payments company - something that, in our experience, entrepreneurs do not always fully understand or appreciate. He’s just updated that article to reflect some recent changes – and we’re delighted to be able to share the updated version on Payments Views!

Consumers' Use of Prepaid Cards: A Transaction-Based Analysis

Fed Philidelphia logoThe Payment Cards Center of the Federal Reserve Bank of Philadelphia has published a discussion paper by Stephanie M. Wilshusen, Robert M. Hunt, and James van Opstal of the Payment Cards Center and Rachel Schneider of the Center for Financial Services Innovation (CFSI).
The Payment Cards Center and CFSI conducted this research project to develop a better understanding of how consumers use prepaid cards by examining their transaction behavior and the issuer revenue and cardholder costs generated by those transactions. Using data provided by Meta Payment Systems, this study focuses on open-loop reloadable prepaid cards and presents an analysis of more than 280 million transactions made on more than 3 million prepaid cards issued by Meta Payment Systems over a six-year period in over a dozen programs.
The paper, along with an executive summary, a list of key findings, and FAQs, is available here.

ORCC Partners with Truaxis to Help Banks Deliver StatementRewards

Online resources logoOnline Resources Corporation (ORCC) announced it has partnered with Truaxis, a service provider that leverages transaction data to help financial institutions deliver personalized rewards, loyalty incentives and other services to their customers.
"StatementRewards gives financial institutions a way to differentiate themselves in the market while continuing to deliver great value and service to their customers,” said Schwark Satyavolu, CEO and co-founder of Truaxis. “Our personalized services deliver a cost-effective rewards program alternative that allows institutions to decrease customer churn, attract new banking customers and increase earnings potential all while helping customers save thousands of dollars each year.”

USA Technologies Enters Mobile POS Acceptance Market

USATechnologies logo 140x60pxUSA Technologies has announced the introduction of 'ePort Mobile', a mobile acceptance solution that gives retailers and other merchants the ability to accept credit and debit cards “on the go” through USAT’s turnkey ePort Connect service platform.
USA Technologies Chairman and CEO, Stephen P. Herbert, commented: “USA Technologies’ leadership position in the industry was predominately built by making it easy for traditionally cash-based businesses to go cashless by offering a seamless, secure and turnkey way to accept cashless payments. ePort Mobile is a natural extension of that value proposition. ePort Mobile customers will be able to benefit from the same high level of service USAT is known for, while having access to all the sales and margin-building benefits a mobile cashless payment system can provide.”

Text2Pay Launches Frictionless 'Tap2Pay' Mobile Web Payment Experience

Text2pay logo 140x60px Text2Pay announced that is now enabling 1-Tap mobile billing for merchants selling virtual goods and services on mobile device. Director of Text2Pay, Mark Reiken, says Tap2Pay uses an identification process to recognize the user’s phone number, so the user will not have to input any information such as a password or PIN authentication. More info and a video demonstration are at


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