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March 29, 2013

PayPal Highlights from eBay Analyst Day 2013

PayPal logo 140x60pxeBay recently held an analyst day briefing to provide guidance on its various lines of business. The company announced that across its core Marketplaces, PayPal, and GSI Commerce businesses, it expects to enable $300 billion in global commerce in 2015. PayPal specific highlights include:
  • 25% of PayPal users were active on mobile in 2012, 10% of TPV came from mobile in 2012, 1M new users signed up through mobile in Q1 2013.
  • $145 billion total purchase volume in 2012 is expected to double to $290 billion in 2015.
  • Revenue anticipated to be somewhere between $9.5 billion to $10.5 billion by 2015, representing a 22% compound annual growth rate at the midpoint.

Analyst day webcast replay is available here; presentation slides are downloadable from here. PayPal section starts on slide 232.

March 27, 2013

Payment Systems to be Regulated in UK

Hm treasury logo 140x60pxThe Financial Times is reporting that payment systems in the UK are going to be regulated "much like a utility".
Tuesday’s announcement of a consultation on the issue makes clear that the government wants to put the system for retail payments – including bank transfers, cheque clearing and credit card payments – under formal regulation by an existing authority.

The full consultation report, "Opening Up UK Payments", is available for download here.

Federal Reserve Releases Survey On Mobile Financial Services

FedThe use of mobile phones to access a bank account, credit card, or other financial account became more prevalent in the Unites States last year, according to the Federal Reserve Board's latest report entitled, "Consumers and Mobile Financial Services 2013".
Mobile devices have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. The Board's report looks at how consumers access their bank's services using mobile phones ("mobile banking"), at their payment for goods and services using mobile phones ("mobile payments"), as well as their use of mobile phones to inform their shopping decisions.

The full report can be downloaded here.

March 26, 2013

ID Analytics introduces Fraud Detection Solutions for Online Retailers

Id analytics 140pxID Analytics has introduced a suite of fraud detection solutions designed specifically for eCommerce retailers.
“Fraudsters are becoming increasingly sophisticated, and eCommerce retailers still encounter too many false positives when screening for potential fraud. ID Analytics partners with merchants to help them fight fraud while ensuring that no additional friction is introduced into the online customer experience,” said Aaron Kline, director of eCommerce, ID Analytics. “This new suite of products leverages our unique data platform and is specifically designed to help eCommerce merchants maximize conversion by accurately separating true fraud from false positives and detecting when an online account is compromised.”

ID Analytics' eCommerce suite helps retailers improve their fraud detection through access to the ID Network, "one of the nation's largest networks of real-time, cross-industry consumer behavioral data."

AmEx and Walmart Announce the Addition of FDIC Insurance to Bluebird

Amex logo 140pxAmerican Express and Walmart have announced expanded security and funding capabilities to Bluebird, a debit and checking alternative that provides Americans with a better way to manage and control their everyday spending.
Bluebird Accounts(1) will now be eligible for FDIC insurance, providing an extra layer of security. As a result, permanent Bluebird Accounts will now have the ability to receive direct deposit of government payments, such as social security payments, military pay, and tax refunds. Customers can also balance their Bluebird checkbook in real-time with pre-authorized check writing, add checks to their Bluebird Account by mail and add funds up to $100,000 annually.

(1) Available to a Bluebird member who registers with American Express for a permanent account. These new features are not available with the temporary Bluebird card sold at Walmart retail locations.

CyberSource 2013 Online Fraud Report

Cybersource logo 140x60px CyberSource has announced results of its 14th annual survey of eCommerce fraud based on an independent survey of hundreds of online merchants.
In 2012, companies reported losing an average of 0.9% of total online revenue to fraud, similar to 2010 levels. Using 2012 industry market projections on eCommerce sales in North America, we estimate that total revenue loss translates to approximately $3.5 billion. Because the size of the overall market has grown, the revenue loss equates to $100,000,000 more versus 2011.

A full copy of the report can be requested here.

March 25, 2013

NOOK Announces In-App Purchasing Partnership With Fortumo

Fortumo logo 140px NOOK Media, the eBook subsidiary of Barnes & Noble, has announced in-app purchasing is coming soon to NOOK through a partnership with mobile payment provider Fortumo.
For customers, in-app purchasing offers greater access to the most popular games and free apps on NOOK, and gives them the flexibility to buy extra levels, coins and other upgrades to make the app experience even better. And with the integration of Fortumo’s one-click checkout, once a customer has registered for in-app purchasing there’s no need to enter long credit card numbers before each payment. They simply click “Pay” and the purchase is completed in seconds.

Leaf Unveils World’s First App Store Specifically for Small Business

Leaf logo 140x60px Leaf, creators of new tablet specifically designed for commerce, has announced the Leaf Appstore, an app store dedicated to serving the needs of brick and mortar businesses.
Building on the foundation of its built-for-business point of sale (POS) tablet, the LeafPresenter, and its online analytics and management portal, LeafBusiness, the Leaf Appstore completes the company’s vision by enabling third parties to supplement and extend the core features in its technology platform for small business.

The key feature of the Leaf platform and Leaf Appstore is the ability to capture common functionality between different industry verticals such as retail, quick serve and restaurants, while ensuring the specific needs of each business type is accounted for.

41st Parameter Launches TrustInsight Network

41stParameter logo 140px 41st Parameter has announced the TrustInsight Network – a new crowd-sourced service that aims to improve card-not-present transaction approval rates.
With TrustInsight, every online consumer transaction will carry a TrustScore generated from encrypted data contributed by TrustInsight Network participants. This crowd-sourced TrustScore functions as the standard for eCommerce CNP trust. TrustInsight makes it easier for merchants to confidently process the more than 70% of online orders that come from first time customers. These people are unknown to the merchant but that doesn’t mean they can’t be trusted. That is the problem TrustInsight solves.

Heartland Payment Systems and LevelUp Form Nationwide Partnership

HeartlandPayments logo 140pxHeartland Payment Systems and LevelUp announced they are partnering nationwide on the first national roll out of a mobile payment solution.
“The biggest challenge facing mobile payment companies right now is scale,” said Chris Mahl, LevelUp’s chief revenue and strategy officer. “LevelUp has been able to reach 1 million users and 5,000 merchants relatively quickly, but we need even wider consumer and merchant adoption before LevelUp hits the mainstream. Our partnership with Heartland Payment Systems will allow us to fire up our growth rate as we begin a phased roll-out with Heartland’s impactful sales force selling LevelUp and our white-label solutions to businesses and consumers across the country.”

Heartland will distribute LevelUp's mobile payment and loyalty platform to merchants; LevelUp will use Heartland for processing.

Flint and NXGEN Partner to Market Mobile POS Acceptance to SMB Channels

Flint logo 140x60pxFlint Mobile has announced a partnership with Fidano, a subsidiary of NXGEN International, one of the largest merchant service providers.
“Fidano is committed to helping our merchant partners succeed, and we’ve heard resounding demand for a simple mobile payments offering,” said Thomas Nitopi, CEO of Fidano. “Flint’s platform not only enables Fidano partners to get started easily, it also offers a unique combination of ease-of-use and powerful customer engagement features.”
Fidano will be rolling out the program and activating channel partners in 2Q 2013.

March 20, 2013

Western Union Launches Global Stored Value Platform

WesternUnion logo 140pxWestern Union announced the launch of the 'Western Union Global Share platform' which enables the company to partner with local companies around the world on stored-value solutions. Initial partners include Access Prepaid Worldwide, Advent Financial, AirPak, Credencial, Jade Payments, and mFunds.
“The launch of the Western Union Global Share platform and the addition of six companies are proof that Western Union is a relevant, wide-reaching and powerful brand – one with the trust of millions of customers,” said Diane Scott, Executive Vice President, Chief Product and Marketing Officer, Western Union. “We are truly a partner of choice for companies around the world.”

In addition, Western Union announced the launch of its Reload+ network, which allows customers with multiple types of accounts, including prepaid cards, mobile services and other e-commerce-based accounts, to “top up” or add cash to their accounts at participating Western Union Agent locations worldwide.

US Debit Networks Back Discover for Common EMV Support

Srpc logo 140x60pxThe Secure Remote Payment Council has announced that the ten debit network members of its Chip and PIN Workgroup have agreed to adopt a common debit application identifier (AID) and will work with Discover Financial Services to license its D-PAS as the foundation of a common debit card EMV solution in the U.S.
"We are honored to have been chosen by the SRPc Chip and PIN Workgroup and feel that the strength of Discover's D-PAS technology, coupled with our universal and choice-centric EMV approach, will enable the market to move forward," said Diane Offereins, President of Payment Services at Discover. "Discover has deployed D-PAS for the past four years and already has millions of cards in market among international issuers. We are confident it is the right path forward for U.S. debit networks."

Visa and MasterCard are not part of the SRPC Chip and PIN Workgroup.

Starbucks Highlights Mobile Payments Momentum

Starbucks logoStarbucks introduced a new cross-channel, multi-brand reward program at its annual meeting. They also took a minute to discuss the adoption they've seen with their mobile payments initiative.
In January 2011, Starbucks became the first national retailer to offer its own mobile payment technology combined with a world-class loyalty program, and the company now generates over three million mobile transactions each week in the U.S. alone – accounting for approximately 10% of total U.S. tender (Starbucks card, broadly, represents 1 in 3 transactions in the U.S.). New mobile users report that they are embracing the Starbucks mobile payment experience because of the benefits they receive and because it enables them to track their loyalty status in an interactive and engaging way directly on their mobile device.

Headline News - March 20, 2013

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

March 19, 2013

George Peabody Joins Glenbrook Partners

GP Logo Horizontal 140pxGlenbrook announced that George Peabody has joined the firm. As a respected thought leader in payment innovation, he strengthens Glenbrook's strategy practice with in-depth understanding of emerging and mobile commerce, as well as security and authentication technologies.
"For the first time in a generation, many of our clients are fundamentally rethinking the point of sale infrastructure, and they are doing so with an eye toward how payments can be used to grow their business," said Bryan Derman, a managing partner with Glenbrook. "George's expertise and perspective on the role of mobile technologies, data security, and identity in payments will be invaluable to our clients."

Contact information is on the Glenbrook website. George will remain based in the Boston area.

Sift Science Simplifies Online Risk Management

Siftscience logo 140x60pxSift Science, a new risk management startup, has opened up its public beta which includes the industries first 'freemium' service model for risk management. The company aspires to make setting up and using online risk management tools as easy as setting up and using Google Analytics. Sift Science claims that Airbnb and Uber are clients. Website is www.siftscience.com.

Akimbo Launches the Next Generation of Social Banking

Akimbo logo 140x60pxAkimbo, an Austin-based startup, announced a new service to share money with friends through electronic money transfers to Akimbo Visa Prepaid Debit Cards. Users can send funds instantly, and the recipient has immediate access everywhere Visa debit cards are accepted, as well as at ATMs.
"As the payments industry tries to reinvent itself, we need to remember that it takes time for consumers to adopt and adapt to new technology," said Akimbo co-founder and CEO Houston Frost. "The reloadable prepaid account is a great 'bridge' to the wholly digital wallet -- it provides the convenience and ease of a cloud-based solution, with the familiarity and access of a physical card."

Akimbo helps individuals build their own network by allowing them to create up to five personalized "sub-cards" for friends. Once they have provided someone a sub-card, they can send money to the card. Website is www.akimbocard.com.

March 18, 2013

Payments Views - The Rise of the Smart Transaction

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Russ Jones blogs about the how the card industry is starting to subdivide at the point of sale into two submarkets, one being the “smart” transaction market and the other being the “basic” transaction market. He explores how this trend is exemplified through solutions from Google, Isis, PayPal, and Visa. The full article is here.

AJB Software Launches Mobile Payments From Within Your Car

Ajb software logo 140x60AJB Software Design has announced availability of FIPay Mobile, a new app that allows smartphone users to pay for gas purchases while remaining in their car. Hughes Car Wash, a Petroleum & C-Store retailer based in Edmonton, Alberta is the first customer.
“The Hughes MobilePay application, powered by our FIPay suite of products, is an example of how petroleum merchants can quickly deploy mobile applications with minimal new investment or configuration,” said Eric Wong, Director, Special Projects, AJB Software Design. “On miserable days, when it’s too hot, rainy or cold, or when it’s late at night, consumers can sit and pay in the safety and comfort of their car, while the fuel dispenser refills their gas tank.

Headline News - March 18, 2013

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

March 14, 2013

Payments Views - Machine Learning: A Road to Smarter Payments

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Dennis Moser has posted his thoughts on how what's happening in machine learning and how it might be applied to payments.
With the plunging cost of computing and the growing need to manage and interpret “big data”, it seems to me that machine learning should be an important ingredient in payments company IT plans. Of course, there are many large companies in the payment space that already employ machine learning – but for other smaller companies and newer entrants, machine learning may represent an untapped opportunity. Recent developments in machine learning may also be relevant for the big players.

Full post is located here.

March 13, 2013

Payments Views - Faster, Better, and Cheaper (Like it or Not)

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Carol Coye Benson has recently posted her thoughts on the disruptive nature of the new real-time, credit-push systems that are starting to emerge around the world.
Of the various use cases, the largest opportunity is undoubtedly B2B payments. But the most intriguing use case is point of sale purchases – imagine a consumer with a mobile device, pushing a payment to a merchant – no authorization required!

Full post is here - "Faster, Better, and Cheaper (Like it or Not)".

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