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April 30, 2013

PayPal Enhances Commerce Identity Solution with "Log In with PayPal"

PayPal logo 140x60pxPayPal has introduced Log In with PayPal - the latest version of what was formerly known as PayPal Access.

According to the company, "Log In with PayPal, provides everything consumers and merchants need to create an account and complete a purchase - including user identification, shipping information, payment details and checkout." This new version has been tailored for mobile devices and fully integrates PayPal's checkout experience for the first time.

Last Chance to Register - Glenbrook's Innovation in Payments - May 9

GP Logo Horizontal 140pxOn May 9th in Palo Alto, Glenbrook's Carol Coye Benson and Russ Jones will be teaching our Innovation in Payments - Big Data and Faster Payments workshop.

This workshop will cover the following topics:

  • Bitcoin
  • Big Data in Payments
  • Immediate Funds Transfer

Registration for this innovation workshop is closing in the next few days - so it's now your last chance to register. Registration is $995: Glenbrook payments workshop alumni use code GBALPE for a 20% discount. Register here.

Glenbrook's Payments Boot Camp next week in Palo Alto is already fully sold out - but registration is open for courses in October in both New York City and the San Francisco Bay Area.

Discover Signs Over 50 Acquirers to Add PayPal Acceptance

PayPal DiscoverDiscover has announced that it has signed contracts with 50 merchant acquirers to help extend PayPal’s in-store acceptance to more than 2 million merchant outlets by the end of 2013. The relationship between PayPal and Discover to expand PayPal's acceptance was announced last August.

“With the signing of 50 merchant acquirers to date, we are well on our way toward helping PayPal reach its goals of acceptance at millions of physical locations in the U.S.,” said Diane Offereins, president of payment services at Discover.

“Our relationship represents the unique abilities we have to leverage our payments assets and infrastructure to work with emerging payments leaders like PayPal, and we’re proud of the progress we’ve made in such a short time.”

Discover highlighted Vantiv, WorldPay, Global Payments, First American Payments, Heartland Payment Systems and TSYS among the US merchant acquirers who have joined the program.

Headline News - April 30, 2013

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

April 29, 2013

Headline News - April 29, 2013

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

April 28, 2013

First Data Corp. Names New CEO - Frank Bisignano

First data logo 140x60pxIn a Sunday afternoon press release, First Data Corp. announced that Frank Bisignano has been named chief executive officer effective Monday, April 29, 2013. Bisginano joined FDC from JP Morgan Chase where he has been Co-Chief Operating Officer. Earlier he was chief executive officer for Citigroup's Global Transactions Services business.

[Editor's note: See also coverage in the New York Times and Wall St. Journal.]

Two New Payments System Briefings from the Kansas City Fed

Kansas city fed logo 140x60pxThe Payments System Research Department at the Kansas City Fed has published two documents:

  • Fees, Fraud and Regulation: Forces of Change in the Payment Card Industry - by Fumiko Hayashi, Senior Economist and Richard J. Sullivan, Senior Economist. This article summarizes three recent papers exploring two areas of change: crime and competition.

    The article concludes by recommending "establishing a national system for collecting and reporting statistics on payment fraud will help policymakers and the payment card industry respond swiftly and effectively to new forms of fraud. And policymakers will need to monitor developments in the debit card market closely and continue to assess their effects on networks’ competition for merchants, on consumer welfare, and on payments system efficiency."

  • The Impact of Debit Card Regulations on Merchants and Consumers - part 2 of a two part series by Fumiko Hayashi, Senior Economist. The first article (The New Debit Card Regulations:
    Initial Effects on Networks and Banks
    ) found that "the new regulations have had significant impacts on card networks and banks. The present article focuses on the regulations’ effects on merchants, consumers, and overall payments system efficiency."

    The author comments: "Ultimately the improvement of consumer welfare — one of the goals of the new regulations — will depend on the degree to which merchants pass on their cost savings to consumers and the degree to which banks, seeking to offset revenue losses, impose new costs on consumers."

  • April 26, 2013

    What's a Bank To Do? - EMV, Authentication and Bank Disintermediation

    PaymentsViews logo 140pxOver on our Payments Views, Glenbrook's George Peabody shares his observations about the confluence of EMV chip card migration, mobile devices and authentication in the US market.

    While EMV injects dynamic data into the payment message (as well as clear text PANs), it is an otherwise mostly static, single purpose platform. Compare that to the mobile device, which combines static data (SIM serial number, etc.) with recognizable configuration profiles for device fingerprinting, context-specific dynamic data such as location plus application-specific PIN or biometric entry. And that all happens before the payment transaction takes place.

    A Look at EMV Migration in the US - and a Need for Monitoring

    Kansas city fed logo 140x60pxIn an article titled "The U.S. Adoption of Computer-Chip Payment Cards: Implications for Payment Fraud", Richard J. Sullivan, senior economist at the Federal Reserve Bank of Kansas City, takes a look at what has happened to payment card fraud in other countries following their migration to EMV-based chip cards.

    U.S. regulators and industry leaders should expect shifts in the nature of payment card fraud and take proactive countermeasures. But the United States currently lacks effective tools to gauge what types of fraud are on the rise. Establishing a comprehensive monitoring system could help in assessing the level of payment card fraud, tracking trends in the fraud, and measuring the losses sustained by its victims.

    Headline News - April 26, 2013

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    • Coming Soon!

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

    April 25, 2013

    Chart of the Week: US Unemployment vs Revolving Debt

    Last week we looked at PayPal's annual payment volume over the last 10 years and how it's grown. This week's chart is a mashup of the US unemployment rate (the thin blue line - as provided by monthly by the U.S. Bureau of Labor Statistics) plotted on top of the revolving debt statistics (the red vertical bars - as provided monthly by the Federal Reserve).

    US credit card issuers frequently talk about how credit card chargeoffs track the unemployment rate. I was curious as to how the absolute amount of revolving debt tracked unemployment. In this chart you can see revolving debt peaking a $1.2 trillion in 2008 before consumers began paying down revolving debt - and issuer's began charging off amounts from consumers who were defaulting on repayment.

    Beginning in 2011, unemployment peaked and consumers began slowly adding to revolving debt again as employment began also improving.

    Unemployment RevolvingCredit

    Have you seen an interesting chart recently that opened your eyes to new insights? Please tell me about it! Email it to me: editor@paymentsnews.com

    Headline News - April 25, 2013

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

    April 24, 2013

    Q. Have You Heard About Spark Pay from Capital One?

    Spark Pay logo 140pxEarlier today, we noticed a couple of tweets about a new service from Capital One known as Spark Pay.

    Turns out that Spark Pay is the latest entrant in the market of providing card acceptance to small merchants using a smartphone or tablet. Spark Pay and its encrypting card reader allow small merchants to "start accepting all major credit cards immediately." The Spark Pay app is available on Android and iOS (iPhone and iPad).

    Spark Pay is offering two pricing plans to merchants: a Pro Plan and a Go Plan. "The Pro Plan Pro offers a lower per swipe fee of 1.95% per swipe for Visa®, MasterCard®, and Discover® cards plus a $9.95 monthly fee. The Go Plan offers 2.70% per swipe for Visa®, MasterCard®, and Discover® cards with no monthly fee."

    We expect to hear more about Spark Pay soon.

    Paying with PayPal Now Available at Hundreds of Thousands of Locations

    PayPal logo 140x60pxIn a blog post this morning, PayPal's Don Kingsborough, VP of Retail Servicess, announced the expansion of PayPal's participation payments made at physical point of sale merchant locations.
    Today, we are pleased to share the news that through our collaboration with Discover, we have expanded our presence from 20,000 locations in the U.S. to more than a quarter of a million. By the end of 2013 we expect to be in more than 2 million locations.
    PayPal announced its partnership with Discover for retail expansion last August.

    Headline News - April 24, 2013

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

    April 23, 2013

    Q. Are You Ready to Kill the Password?

    Fido Alliance logo 140pxThe FIDO Alliance today announced several new members - including Google, NXP and CrucialTec as board members, Entersekt and Fingerprint Cards as founding sponsors, and Allweb Technologies, Check2Protect, Crocus Technology, Diamond Fortress Technologies, and Insyndia Global as associate members.

    The FIDO Alliance is an industry consortium focused on introducing "the first standards-based open specifications for overcoming password dependency with universal strong authentication."

    "We are very pleased to count these outstanding global leaders among the ranks of the FIDO Alliance," said Michael Barrett, FIDO Alliance president and PayPal Chief Information Security Officer (CISO).

    "FIDO is compelling to those who can lead and affect change, because the open FIDO specifications promise to restore trust with stronger security that also simplifies the user experience and ensures privacy. By overcoming the limits of proprietary authentication methods, FIDO opens up a vast marketplace for strong authentication where FIDO enabled devices and services interoperate. We encourage all who require secure user authentication, and those who provide various methodologies to join us on a very fast track to FIDO universal strong authentication."

    According to the Alliance, "The open FIDO specifications will support a full range of authentication technologies, including biometrics such as fingerprint scanners, voice and facial recognition, as well as existing solutions and communications standards, such as Trusted Platform Modules (TPM), USB Security Tokens, Near Field Communication (NFC), One Time Passwords (OTP) and many other existing and future technology options."

    Glenbrook's Jacqueline Chilton at CARTES Americas Conference

    GP Logo Horizontal 140pxThe Cartes Americas 2013 Secure Connections Conference is underway this week in Las Vegas. Glenbrook's Jacqueline Chilton is attending - be sure to reach out to her if you're there - follow her on Twitter @jaxcan.

    Lots of tweets are coming today on Twitter from the conference - you can follow along by searching for the hashtag #cartesusa and by following @_cartes.

    A Vote of Support for Same Day ACH in the US

    ICBA logo 140pxThe Independent Community Bankers of America® (ICBA) has released a new white paper - “Same-Day ACH: An Opportunity for Leadership” - expressing its support for same-day ACH capabilities and encouraging community banks and other institutions to adopt same-day ACH services.
    “Same-day ACH capability helps community banks stay at the center of serving their customers’ payment needs, particularly as they strive to remain competitive in their marketplace, where same-day payments are already supported in many cases,” said Bill Loving, ICBA chairman and president and CEO of Pendleton Community Bank in Franklin, W.Va. “ICBA strongly believes that an accelerated transition to same-day ACH is vital to all financial institutions and customers.”
    Last August 2012, NACHA’s membership did not approve the Expedited Processing and Settlement Rule that would have supported the same-day settlement of Automated Clearing House (ACH)transactions as a ubiquitous capability of the ACH network. (See Glenbrook's Carol Coye Benson's commentary on that vote in her PaymentsViews.com post: Bankers to NACHA: 1978 Is Modern Enough for Us!)

    Q. Is Your Organization Facing a Payments Inflection Point?

    PaymentsViews logo 140pxGlenbrook's Erin McCune writes on PaymentsViews.com:
    Glenbrook is kicking off a new payments organization optimization project for a biller client. Each time we do one of these projects, our client – with some embarrassment – admits that they think they are the only ones facing payments challenges. Nothing could be further from the truth! In fact, the smooth-running, optimized payments organization is the exception: even the most established, big-brand companies have payments challenges.
    Read more from Erin about how inevitable inflection points force re-examinations of the payments processes in almost every business - and what to do about them. Follow Erin on Twitter @erinmccune

    The InstaMed Health Care Payments Account

    InstaMed logo 140pxInstaMed has announced the launch of the InstaMed Healthcare Payments Account enabling health care providers of all sizes, from solo physician practices to large hospitals, get paid faster and through more channels to increase payments, reduce bad debt and cut collection costs.

    The InstaMed Healthcare Payments Account is a new concept in the healthcare industry that transforms the flow of money to providers,” said Bill Marvin, President and CEO of InstaMed. “By delivering a simplified approach to the complexities of getting paid in healthcare, we are enabling providers to collect more payments, get paid faster and operate more efficiently.”
    Any healthcare provider can register for an InstaMed Healthcare Payments Account free of charge. Once activated, the account enables providers to collect more patient payments by accepting all payment types at every patient interaction point.

    American Express Plans Adding EMV to US Premium Corporate Cards

    Amex logo 140pxAmerican Express has announced that it will begin issuing Corporate Cards with EMV chip & signature technology to its U.S. Corporate Cardmembers.

    “In some countries, chip technology is becoming standard for card authorizations. By providing a chip-enabled solution, the new chip & signature Cards will help U.S. Corporate Cardmembers avoid disruptions while traveling internationally” said Darryl Brown, President, Global Corporate Payments Americas, American Express.
    American Express says it currently offers cards with EMV chip & PIN and chip & signature capabilities in other global markets.

    Headline News - April 23, 2013

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

    April 22, 2013

    Glenbrook at NACHA's Payments 2013 Conference in San Diego

    NACHA logo 140pxNACHA's Payments 2013 Conference is underway this week in San Diego. Glenbrook's Erin McCune, Elizabeth McQuerry and George Peabody are attending - be sure to reach out to them if you're also attending Payments 2013!

    Lots of tweets are coming today on Twitter from Payments 2013 attendees - you can follow along by searching for the hashtag #payments2013 and by following @NACHA_Payments.

    Headline News - April 22, 2013

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

    April 21, 2013

    A Look Inside FinCEN from Director Jennifer Shasky Calvery

    FincenThe Financial Crimes Enforcement Network (FinCEN) is part of the US Treasury Department where it reports to the Office of Terrorism and Financial Intelligence. FinCEN’s mission is to "safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities."

    Last week, FinCEN's Director Jennifer Shasky Calvery spoke at the National Cyber-Forensics Training Alliance's CyFIN 2013 Conference in Pittsburgh. In her speech, she reviewed the activities of FinCEN in detail - from where it gets its data, its analysis process, and the upgrades it's been making to further improve its capabilities to fulfill its mission.

    In addition, Calvery discussed FinCEN's work with respect to emerging payment systems - including "crypto-currencies" and virtual currencies, along with discussing FinCEN's work addressing account takeovers - particularly of small business accounts - and dealing with third-party payment processors. She's also leading FinCEN's efforts to form stronger partnerships with industry, regulatory, law enforcement, and international partners.

    Director Calvery's speech is frankly a "must read" for anyone involved in emerging payments initiatives in the US. A PDF version of her speech is available for download from the FinCEN web site.

    April 19, 2013

    Blackhawk Network Holdings (HAWK) Completes Initial Public Offering

    BlackhawkNetwork logo 140pxBlackhawk Network Holdings, a majority owned subsidiary of Safeway, completed its initial public offering and began trading earlier Friday on NASDAQ under the symbol HAWK.

    Shares were priced at $23 with 10 million shares being offered by the company. In today's trading, the shares advanced 13% to close at $26.01 at the market close. At that price, the market valuation for the company would be about $1.4 billion.

    Blackhawk distributes prepaid cards, including gift cards, and connects brands to consumers via partnerships with various retail distributors, such as grocery store chains.

    How Do You Organize Your Payments Team?

    GP Logo Horizontal 140pxGlenbrook's Jacqueline Chilton is conducting the third annual Glenbrook payments organization survey to learn how companies’ internal organizational structures are evolving to manage the ever-increasing complexity of payments:

    We are eager to learn how your company manages payments, and how your payments organization is changing – whether you are a biller, eCommerce merchant, or retailer; whether you sell to consumers or businesses (or both).

    And we’re also interested in learning how the payments function is managed within payment providers of all kinds. We want to understand the inter-relationship between finance and the payments function, and also how the balance between payments and risk management varies from company to company.

    Please visit PaymentsViews.com to participate.

    Headline News - April 19, 2013

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

    April 18, 2013

    Chart of the Week: PayPal's Payment Volume (2001-2013)

    PayPal logo 140x60pxHere's this week's chart of the week - PayPal's payment volume ($ Billions) by quarter from 2001 through its first quarter 2013 results reported earlier this week. The last two columns show a bit of seasonality - but, otherwise, a pretty impressive ramp "up and to the right"!

    PayPal Payment Volume

    Share your thoughts about PayPal's growth - and future growth prospects - by adding a comment below.

    Have you seen an interesting chart recently that opened your eyes to new insights? Please tell me about it! Email it to me: editor@paymentsnews.com

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