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February 02, 2012

Payments Views - “Over the Top” with Mobile Payments

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Scott Loftesness blogs about the new FIS approach to mobile payments:
With much of the card payments industry zigging toward an NFC-based solution securing payment card credentials on mobile handsets, FIS is zagging in a different direction with this new solution – one that doesn’t need to wait for NFC and Secure Element (SE) chips to be embedded in mobile phones.

FIS is the world’s largest global provider of banking and payments technologies, serving 14,000 financial institutions in over 100 countries.

MasterCard Announces 4Q2011 Financial Results

MasterCard logo 140pxMasterCard has announced financial results for the fourth quarter 2011.
  • Net revenue for the fourth quarter of 2011 was $1.7 billion, a 20.2% increase versus the same period in 2010. On a constant currency basis, net revenue increased 20.8% compared to the same period in 2010.

  • Worldwide purchase volume during the quarter was up 15.2% on a local currency basis versus the fourth quarter of 2010, to $648 billion. As of December 31, 2011, the company’s customers had issued 1.8 billion MasterCard and Maestro-branded cards.

  • Cross-border volume was up 17.5%.

Press release, supplemental operating results, and an accompanying investor presentation are available on the MasterCard website.

February 01, 2012

Payments Views - CFPB Final Remittance Rule

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Jacqueline Chilton summarizes and reacts to the CFPB Final Remittance Rule that has been issued by the Consumer Financial Protection Bureau. "This rule has considerable implications with both intended and potentially unintended consequences."

First Data Reports 4Q2011 Financial Results

First data logo 140x60px First Data has reported its financial results for 4Q2011.
"Consolidated revenue for the fourth quarter was $2.69 billion, down $43 million or 2%, compared to a year ago on a $115 million decline in debit network fees. These fees are passed directly to customers and therefore did not impact operating income. Adjusted revenue, which excludes certain items including debit network fees, increased $47 million, or 3% year-over-year to $1.73 billion."

Facebook Outlines Facebook Credits Business for IPO

Facebook logo 140pxFacebook filed its Form S-1 to IPO today. Here's what they said about their payments business:
  • Reported payments-related revenue was $13M (2009), $106M (2010), and $557M (2011). Full year 2011 payments revenue represented 15% of 2011 Facebook revenue.

  • They caution that year-to-year comparisons can be very misleading as the payments business didn't hit full deployment until Q42010, and wasn't mandated for on-platform game developers until Q3 2011. To help see the trends, they show quarter-to-quarter payments revenue growing throughout 2011 from $94M (Q1), to $119M (Q2), $156M (Q3), $188M (Q4). At $188M, payments represented 17% of the Q4 revenue.

  • Facebook also revealed that it has applied for "certain money transmitter licenses and expects to apply for additional money transmitter licenses in the United States."

Interestingly, Facebook doesn't use the term "Facebook Credits" in the S-1, preferring instead the simple term "payments". Remember also that Facebook does a 70/30 revenue split with developers, implying that the $557M in 2011 payments-related revenue came from $1.867 billion in Facebook Credit redemptions.

Upcoming Payments-Related Conferences

SmartCard Alliance 2012 Payments Summit
The 5th annual SmartCard Alliance conference will be held February 8-10 at the Hilton Salt Lake City Center in Salt Lake City, Utah.

FinovateEurope 2012
The FinovateEurope 2012 Conference returns to London on February 7th, 2012 at the Old Billingsgate Market Hall in the heart of London.

Discover PAYMENTS 2012
The NACHA Payments 2012 Conference will be held April 29-May 2, 2012 in Baltimore, MD at the Hilton Baltimore.

Brand Finance Releases Bank Brand Rankings

Hsbc logo 140x60pxBrand Finance, in conjunction with The Banker, has announced the results of its latest study of the financial value of various banking brands around the world. From this year's report:
  • HSBC, the only British bank among the ten most valuable banking brands, knocks Bank of America off the top spot in the Brand Finance Banking 500.

  • Wells Fargo is the most valuable banking brand in the U.S. market, and the second most valuable worldwide.

  • Chinese banks performed strongly with China Construction Bank, ICBC, Bank of China and the Agricultural Bank of China maintaining a successful streak for Chinese banking as they secure spots in the Top 20.

  • There are now more banks from the BRICs (Brazil, Russia, India and China) in the top 20 banking brands than there are from Europe.
Each bank is accorded a brand rating (a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set), as well as a brand value (a summary measure of the financial strength of the brand.)

January 31, 2012

CardSpring Launches New Payment Network Platform

Cardspring logo 140x60pxCardSpring announced a new Application Programming Interface (API) that lets developers add new capabilities to credit and debit cards by programming the CardSpring payment network to link online applications to specific payment events.
Because CardSpring runs in the payment network cloud, developers can add applications to any of the billions of existing credit or debit cards without changes to the purchase experience or store infrastructure, enabling any website or retailer to create innovative new online/offline commerce applications at a fraction of the cost and complexity of existing approaches.

The company also announced that it has raised a $10M Series A investment led by Accel Partners and Greylock Partners.

Discover’s Cashback Bonus Redemption Continues to Trend Upward

Discover logo 140pxDiscover has announced that Cashback Bonus rewards continued to trend upward in 2011, with the company "citing a 20% increase over 2010."
“Not only did cardmembers respond favorably to the extra Cashback Bonus that more than 70 top retailers offered during the holiday season, but they also appreciated the various enhancements we made throughout the year to ShopDiscover, such as adding merchant coupons and site functionality,” said Dana Traci, vice president of rewards and product management at Discover. “As for increased redemption, cardmembers clearly are seeing there’s great value in redeeming their Cashback Bonus, whether it be for partner gift cards, merchandise, statement credits or on”

TrialPay Secures $40 Million in Funding For Offer-Based Payments Platform

Trialpay logo 140pxTrialPay has announced that it has raised more than $40 million in its latest round of funding.
“TrialPay’s approach to payments is different,” said Reid Hoffman, Partner at Greylock Partners. “Their tremendous growth in the last year validates the efficacy of the model. We believe that the next generation of e-commerce depends on the ability to maximize revenue from every transaction, and TrialPay is the only company that has successfully leveraged global advertiser relationships to meet that end.”

Visa was also an investor in this round of funding.

January 30, 2012

MasterCard Introduces Electronic Payments Roadmap for U.S. Market

MasterCard logo 140pxMasterCard has introduced a "comprehensive" roadmap focused on advancing the U.S. electronic payments system to EMV and dynamic transaction data.
“Consumers deserve a great experience any time they use MasterCard products,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard. “As the industry invests in the upgrade to EMV in the U.S., we now have the ability to enhance the consumer experience and the security of a payment, regardless of the device – contactless card, mobile, eCommerce and technologies still to come.”
MasterCard says it will provide additional detail on the roadmap in the coming weeks and months. Initial resources can be obtained at

Glenbrook on Wallets at the Payments Boot Camp

GP Logo Horizontal 140pxRegistration is open for Glenbrook's Payments Boot Camp February 15th and 16th in Santa Clara, CA and April 10th and 11th in New York. Our constantly-updated material includes a substantial section on all things wallet - NFC, cloud, P2P and more. Come hear Glenbrook explain what's happening, why, and what the future may look like. More dates, agendas, testimonials and information at or contact Glenbrook partner Carol Coye Benson.

Xsolla And ZipZap Partner For Online Cash Payments

Zipzap logo 140x60px Xsolla announced that they have partnered with ZipZap, an alternative payments company that enables cash transactions for online purchases.
ZipZap's CashPay payment option enables those without bank accounts or credit cards to be able to pay for virtual currency in their favorite games using their extensive cash payment network, which includes over 700,000 payment centers worldwide.

More information on ZipZap is available from their website at

I Love Velvet Mobile POS Granted EMV Terminal Level 2 Certification

Ilovevelvet logo 140x60pxI Love Velvet, a Mobile POS provider, has announced that "it reached the second level of EMV certification--EMV2--which authorizes PIN and integrated chip (IC) payments from debit, credit and smart cards around the world."

Companies To Combat Email Phishing Through

Dmarc org logo 140pxFifteen leading companies have announced the formation of, a working group that has been developing standards to fight spam and phishing.
"Email phishing defrauds millions of people and companies every year, resulting in a loss of consumer confidence in email and the Internet as a whole," said Brett McDowell, Chair of and Senior Manager of Customer Security Initiatives at PayPal. "Industry cooperation - combined with technology and consumer education - is crucial to fight phishing."

Founding financial services providers include Bank of America, Fidelity, and PayPal.

Current Opportunities on

PaymentsJobs logo 140pxSeveral new positions for payments professionals have recently been posted to Glenbrook's payments industry job board in the last 30 days: Is your company hiring? Are you in the market for qualified payments professionals? You can reach the best candidates here! Post your job openings for payments professionals on!

Sequent Launches Middleware to Bring NFC to All Apps

Sequent logo 140x60pxSequent Software has announced a suite of NFC-related middleware services called 'Core Card Services (CCS)'. "Sequent's CCS unlocks NFC innovation for app developers, making it possible for any mobile app to seamlessly integrate NFC payments, ticketing, coupons, ID badge access and more."

Payments Views - Who Knows What In Payments?

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Russ Jones blogs about "Who Knows What In Payments?" and the explores whether or not the targeting of ads and offers can be enhanced with insight from payment transaction data. He also looks at what mobile wallets will know about the consumer's purchase behavior.


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