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July 31, 2013

US Merchants Win Victory in Debit Card Interchange Litigation

FedEarlier today, U.S. District Judge Richard Leon ruled on litigation brought in November 2011 by a group of merchants against the Board of Governors of the Federal Reserve System ("NACS v. Board of Governors of the Federal Reserve System") that sought to overturn the Board's Final Rule setting standards for debit card interchange fees and network exclusivity provisions (so-call Regulation II).

Ruling on summary judgment in favor of the merchant plantiffs, Leon concluded that "the Board has clearly disregarded Congress's statutory intent by inappropriately inflicting all debit card transaction fees by billions of dollars and failing to provide merchants with multiple unaffiliated networks for each debit card transaction."

In his decision, he goes on: "It appears that the Board completely misunderstood the Durbin Amendment's statutory directive and interpreted the law in ways that were clearly foreclosed by Congress."

Judge Leon is inviting the parties to provide supplemental briefings on the issues of how to adjust the rules - and staying any change for the moment - but noting that he is inclined toward a stay of vacatur "for months, not years."

Isis Announces National Rollout of NFC-based Mobile Payments

Isis logo 140x60pxIsis, the mobile commerce joint venture created by AT&T Mobility, T-Mobile US Inc. and Verizon Wireless, has announced plans to roll out the Isis Mobile Wallet nationwide later this year, following what it described as successful pilots in Austin, Texas and Salt Lake City, Utah. The Isis Mobile Wallet uses near field communication (NFC) technology to allow consumers to pay, redeem coupons and present loyalty cards with a tap of their smartphone. To use the Isis Mobile Wallet, consumers need an NFC-enabled smartphone and a SIM-based secure element, which together make a handset "Isis Ready".

“Over the past nine months, we have proven the power of an open platform, creating an ecosystem of literally hundreds of partners dedicated to making mobile commerce a reality,” said Michael Abbott, chief executive officer, Isis. “As part of our commitment to consumers, we are incorporating feedback from our pilots into the next generation of the Isis Mobile Wallet as we prepare for national availability later this year.”

Isis says that some 20 million smartphones already in use currently feature NFC technology and that millions more are being shipped each month by its mobile carrier partners – AT&T Mobility, T-Mobile US Inc. and Verizon Wireless.

“NFC technology is important to Samsung and is a standard feature in our flagship smartphones, including our Galaxy S® 4, as a powerful way for sharing through S Beam, and a tool for secure mobile payments with Isis,” said Kevin Packingham, chief product officer, Samsung Telecommunications America. “At Samsung, we are committed to providing our customers with the most innovative technologies available and the Isis Mobile Wallet is just one example of that commitment brought to life.”

Key findings from the pilot include:

  • On average, active Isis Mobile Wallet users tap more than 10 times per month
  • Two-thirds of active users opted in to receive offers and messages from their favorite brands, following an average of seven brands
  • Contactless acceptance nearly quadrupled to more than 4,000 locations in Austin and Salt Lake City
  • More than 80 percent of transactions take place at everyday spend locations such as quick-service restaurants, coffee shops, gas stations, convenience and grocery stores
  • Wallet users engaged in loyalty and offers tap up to two times more frequently than users who only make payments

Isis says it will be incorporating key learnings from the pilot of the Isis Mobile Wallet in Austin and Salt Lake City into its national rollout later this year.

Headline News from PaymentsNews.com - July 31, 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 30, 2013

Visa and MasterCard Support Common Solutions to Enable U.S. EMV Chip Debit Routing

Visa logo 60pxhMasterCard logo 140pxIn a press release this morning, Visa Inc. and MasterCard announced "an agreement to license their respective common U.S. debit solutions to each other to meet the industry need for a streamlined approach to route U.S. chip debit transactions over multiple, unaffiliated networks."

"This represents our continued commitment to advance the adoption of the most advanced payment solutions and security standards in order to deliver maximum value to merchants, consumers and issuers," said Chris McWilton, president, North America, MasterCard. "By providing every U.S. debit network with an efficient, market-ready answer, we are delivering a proven solution that not only preserves merchant routing choice, but ensures seamless interoperability with all other EMV programs across the globe."

"This approach offers issuers, acquirers and merchants a streamlined solution for debit chip card routing, helps ensure a cost-effective migration, and enables even broader adoption of secure, convenient chip debit programs in the United States," said Elizabeth Buse, Global Executive, Solutions, Visa Inc. "Importantly, this solution allows merchants and acquirers to deploy payment terminals using existing chip technologies that are already widely integrated into existing chip card acceptance solutions."

In opening their investments and technologies to the industry, the two card networks say they hope to "further accelerate the U.S. market to a more secure chip-enabled marketplace."

Issuers will be able to load their global brand's application onto their cards - either Visa or MasterCard - and flexibly enable transactions to route over any participating PIN debit network within the US. The networks say that this approach is consistent with the EMV Migration Forum's recommendations resulting from the aligned merchant and issuing communities' needs for a single common debit application identifier (AID) and single application on each card and reduce the complexities of the U.S. EMV implementation.

MasterPass by MasterCard Makes European Debut in the UK

MasterCard logo 140pxMasterCArd has announced that British consumers will be the first in Europe to experience MasterPass by MasterCard.

MasterPass is a digital service that allows consumers to use any payment card or enabled device to discover enhanced and secure shopping experiences with just a click, tap or touch – online, in-store or anywhere. MasterCard says "it moves payments forward by allowing the consumer to safely store all their payment, store card, loyalty, shipping and billing address details in one place and gives consumers the ability to make a payment from wherever they are with whatever device they have."

Marion King, President, UK and Ireland at MasterCard said:

"For retailers, MasterPass provides a faster, easier way to check out their customers, and increase sales without significantly changing the way they currently process payments. MasterPass can help retailers reduce checkout abandonment rates, which affected 37% of all online transactions in the first quarter of 2013, equating to more than £6 billion in much needed revenue per year according to IMRG and Capgemini**. UK consumers spend more than £62 billion a year online."
MasterCard confirmed that MBNA is one of the first issuers on the MasterPass platform in the UK.

Headline News from PaymentsNews.com - July 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 29, 2013

A Look at Starbucks and Mobile Payments

Starbucks logoLast week, on Starbucks' quarterly earnings call, Chief Digital Officer Adam Brotman commented on the company's digital initiatives. He noted that the Starbucks card represents nearly one-third of Starbucks' in-store transactions and 10% of all transactions in US stores are made with mobile phones.

Brotman concluded:

I truly believe that no other retailer ... that’s as far as long as Starbucks in terms of building an end-to-end digital customer experience across a variety of digital touch points both in store and out of store, across channels and now across geographies.

Headline News from PaymentsNews.com - July 29, 2013

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  • Coming Soon!

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 25, 2013

Headline News from PaymentsNews.com - July 26, 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

The Payment Industry's Take on Bitcoin

GP Logo Horizontal 140pxBitcoin and other virtual currencies have gained plenty of attention from the financial press, the blogosphere, the tech press, and even the media at large. We've read the pros and cons, with predictions of both revolution and disaster. And we've seen how this ferment has attracted multiple angel and VC investors to the scores of startups already working with math-based currencies and especially Bitcoin.

Until now, what we haven't learned is what the payments industry thinks of all this. What do the many participants in payments - from entrepreneurs, bankers, and regulators to the complex mix of entities in between - have to say about the present and future of math-based currencies like Bitcoin. Please help us find out by taking the "Payments and Bitcoin" survey.

With the survey open for just a few days, the response has been great. The survey should take 5 to 10 minutes to complete. The survey is anonymous - but if you want to see the results, leave your email with us at the end of the survey. By way of thanks, we will also send you our new ebook "Bitcoin and math-based virtual currencies, Some initial thoughts...".

We're looking forward to sharing the results soon!

Headline News from PaymentsNews.com - July 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 24, 2013

Visa Inc. Reports 13% Growth in 2Q13 Payments Volume, 17% Growth in Net Revenue

Visa logo 60pxhVisa Inc. reported financial results for its fiscal third quarter of 2013 earlier this afternoon. Net operating revenue in the fiscal third quarter of 2013 was $3.0 billion, an increase of 17% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues. Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2013, was 13% over the prior year at $1.1 trillion. Total operating expenses were $1.2 billion for the quarter, a 9% increase over the prior year adjusted results.

"Visa delivered solid financial performance during our fiscal third quarter and we remain confident in delivering our guidance for fiscal year 2013," said Charlie Scharf, Chief Executive Officer of Visa Inc.

"We remain committed and focused on our long-term strategic goal of supporting our issuers, acquirers, merchants and government partners through flexibility and innovation in electronic payments. We are accelerating opportunities to expand our network through mobile, eCommerce and data-driven solutions, while continuing to deliver value to our shareholders."

Net income for the quarter was $1.2 billion or $1.88 per share, an increase of 16% and 20%, respectively, over the prior year adjusted results.

EU Proposes New Rules on Payment Services and Regulation of Interchange Fees

European commission logo 140x60psThe European Commission today announced a new payment Services Directive ("PSD2") along with a proposal for regulation on interchange fees for card-based payment transactions. EU Internal Market and Services Commissioner Michel Barnier said:

"Today, the payment market in the EU is fragmented and expensive with a cost of more than 1% of EU GDP or €130 billion a year. These are costs our economy cannot afford. Our proposal will promote the digital single market by making internet payments cheaper and safer, both for retailers and consumers. And the proposed changes to interchange fees will remove an important barrier between national payment markets and finally put an end to the unjustified high level of these fees."

Vice President Joaquín Almunia added: "The interchange fees paid by retailers end up on consumers' bills. Not only are consumers generally unaware of this, they are even encouraged through reward systems to use the cards that provide their banks with the highest revenues. Complementing the enforcement of antitrust rules, the regulation capping interchange fees will prevent excessive levels of these fees across the board. A level playing field will be created for payment services providers, new players will be able to enter the market and offer innovative services, retailers will make big savings by paying lower fees to their banks, and consumers will benefit through lower retail prices."

"The Regulation on interchange fees, combined with the revised PSD, will introduce maximum levels of interchange fees for transactions based on consumer debit and credit cards and ban surcharges on these types of cards."

Headline News from PaymentsNews.com - July 24, 2013

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Updates from Glenbrook:

  • We've redesigned our web site - be sure to check out the fresh new look at glenbrook.com!
  • Glenbrook's Payments Boot Camp! - A special summer session of our popular Payments Boot Camp - in Half Moon Bay on August 6th and 7th is ALMOST SOLD OUT! We're also leading a half day course on Data In Payments - August 8th, also in Half Moon Bay. Join Carol, Scott and Russ for lively, interactive sessions - register now!
  • Join our mailing list for updates about Glenbrook events.
  • Follow Glenbrook Partners on LinkedIn! -
  • Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 23, 2013

Discover Reports Financial Results for 2Q2013

Discover logo 140pxDiscover Financial Services reported financial results for the second quarter 2013. Discover card sales volume increased 4% year over year while credit card loans outstanding grew 5% to $49.8 billion. Credit card delinquencies over 30 days past due were 1.58%, a record low.

"Discover's strong overall results were driven by profitable growth in Direct Banking and continued improvement in credit offset to a small degree by a loss in Payment Services as we supported Diners franchises in Europe," said David Nelms, chairman and CEO of Discover.
Overall, Discover reported net income of $602 million or $1.20 per diluted share for the second quarter of 2013, as compared to $525 million or $0.99 per diluted share for the second quarter of 2012

Lemon Launches Lemon Network to Ease Mobile Payments

Lemon logo 140x60pxMobile wallet provider Lemon has announced the launch of Lemon Network, an enhancement to the Lemon Wallet app that will allow consumers to make purchases from merchants with the Lemon Network without having to re-enter their card information each time. Lemon Network is offered to merchants as a free software development kit (SDK).

"We see the Lemon Network as a true step forward in the mobile payment space,” said Lemon Chief Sales Officer Jenna Wyer.

“Consumers will quickly see the benefit of using the Lemon Network for mobile shopping as well as web shopping. They can update their credit card information in one place—the Lemon Wallet—so any card being used via the Lemon Network to make purchases is always an updated card, not expired. Plus, the individual merchants are not storing consumers’ cards, Lemon is. This means consumer transactional identity is being stored in just one location, not on multiple merchant apps, making mobile and web shopping safer and simpler.”

In addition to credit cards, users can also store merchant rewards cards, identification and insurance cards in the Lemon Wallet. The Lemon Network SDK is now available for merchant download. For more information, visit http://lemon.com/network/.

An Update on Glenbrook's Payments Education Courses - August 6-8, 2013

GP Logo Horizontal 140pxOur upcoming Payments Boot Camp in Half Moon Bay, California on August 6-7 is nearly full. If you're thinking about attending, please get your registration in quickly - you can register here. Click here to see the course description.

We're also leading a half-day session on August 8, also in Half Moon Bay, focused on Data in Payments - sign up for that session here.

More details on all of our payments education offerings - including our private payments workshops - can be found on our newly re-designed Glenbrook.com! Glenbrook's Allen Weinberg and Russ Jones are just back from a week in Shanghai leading one of our private workshops - we travel the world to serve payments professionals!

Headline News from PaymentsNews.com - July 23, 2013

On the web:

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Updates from Glenbrook:

  • We've redesigned our web site - be sure to check out the fresh new look at glenbrook.com!
  • Glenbrook's Payments Boot Camp! - A special summer session of our popular Payments Boot Camp - in Half Moon Bay on August 6th and 7th is ALMOST SOLD OUT! We're also leading a half day course on Data In Payments - August 8th, also in Half Moon Bay. Join Carol, Scott and Russ for lively, interactive sessions - register now!
  • Join our mailing list for updates about Glenbrook events.
  • Follow Glenbrook Partners on LinkedIn! -
  • Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 22, 2013

PayPal Steps Up Emphasis on Cross-Border Commerce

PayPal logo 140x60pxPayPal has stepped up its emphasis on cross-border commerce with a press release titled "PayPal Unveils the Modern Spice Routes" that unveils a new report based on PayPal and Nielsen data.

According to PayPal, "the report reveals amazing insights about cross-border shoppers, and their payments preferences, to enable businesses and exporters to take advantage of this multi-billion dollar opportunity:" In particular, the report focuses on cross-border online shopping and spending behavior in six major markets — the United States, the United Kingdom, Germany, Australia, mainland China and Brazil.

Cross border trade is nothing new. Our local stores are filled with goods from around the world. What is new is how easy it has now become for consumers to shop online directly from merchants around the world and the massive opportunity that represents,” said David Marcus, President, PayPal. “

The emergence of these ‘modern spice routes’ is great news for businesses the world over. Our message to merchants is if you are looking for new ways to grow your sales, especially in an economic downturn, start selling directly to 94 million cross-border shoppers in these 6 markets and own a piece of this $105 billion market. For consumers, paying for items in a different currency or country has never been easier and we help make it safer with our buyer protection policy* available in 193 markets worldwide.”

You can download a copy of this new PayPal report here (registration required).

Fed Reports on Government-Administered, General-Use Prepaid Cards

FedThe Federal Reserve has published its annual report to the Congress on the use of general-use prepaid cards in federal, state, and local government-administered payment programs and on the interchange fees and cardholder fees charged with respect to the use of those cards.
Government offices reported disbursing more than $1 trillion, 13 percent of which was disbursed through prepaid cards. Issuers reported collecting more than $504 million in fee revenue during 2012—62 percent from interchange fees and 38 percent from cardholder fees.

The Payments and Bitcoin Survey

PaymentsViews logo 140pxOn our PaymentsViews.com blog, Glenbrook's George Peabody announces a new Payments and Bitcoin Survey he's conducting. He writes:
Until now, what we haven’t learned is what the payments industry thinks of all this. What do the many participants in payments – from entrepreneurs, bankers, and regulators to the complex mix of entities in between – have to say about the present and future of math-based currencies like Bitcoin.
Please join us by taking the survey here!

ICICI Bank and Movida partner on mobile payments service in India

Movida 140pxMovida, the mobile payments joint venture between Visa Inc. and Monitise, has announced a deal with ICICI Bank, India’s largest private sector bank, to utilize Movida’s mobile payments service for the Bank’s customers. The service will enable ICICI Bank payment card holders to pay bills, recharge prepaid airtime and buy cinema tickets from their mobile phone, anywhere, anytime. It will be possible to access Movida either through a menu-based USSD mobile technology, or an Interactive Voice Response (IVR) in multiple languages. The service is designed to operate across all mobile networks using any payment card – Visa and non-Visa.

Rajiv Sabharwal, Executive Director, ICICI Bank, said: “This tie-up with Movida provides an added facility in an array of mobile payment options that ICICI Bank offers to its customers. We have seen a high level of demand from consumers to use their mobile phones for financial transactions. We are constantly innovating to meet this demand and empower our customers with solutions that offer greater choice and more convenience. This service by Movida will ensure they can get immediate access to a secure and simple solution that can be utilized even without an active internet connection.”

Naushad Contractor, Movida’s President and Head of the Visa-Monitise joint venture in India, stated: “A growing population of more than 1.2 billion coupled with widespread access to a mobile phone, make a strong case for a vast mobile payments opportunity. Mobile payments users spend significantly less time and energy paying their bills, recharging their phones or those of family or friends, or waiting in line to buy tickets to the next blockbuster, because they are able to do it on the go and around the clock. The mobile payment services which will succeed in India are simple, interoperable solutions that solve a real consumer need and can apply to any handset, without the need for a technology upgrade or a new purchase. They must be highly secure, reliable and provided by trusted partners. These are the premises of the Movida solution, and we are delighted to be working with ICICI Bank to provide this service to its customers.”

Cardholders will be able to make payments through Movida’s secured connection after linking their payment card to their mobile phone number registered with ICICI Bank. Their card account information will be kept secure by a unique PIN number.

Headline News - from PaymentsNews.com - July 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 19, 2013

India's Ezetap Launches Mobile POS Device at Under $50 Price Point

Ezetap Chip  Pin Card Reader Pic 2Bangalore-based Ezetap has announced the launch of what it's calling "the first integrated and globally certified Mobile Point of Sale Device with a price point under $50" that supports magnetic stripe and chip and PIN card acceptance. The entire Ezetap solution from its card reader to service platform has been 100% designed and developed in India.

“Ezetap is committed to delivering world-class products from India.” said Abhijit Bose, Co-Founder and CEO of Ezetap. “To succeed, we needed to deliver a product that met the highest global security and technical standards, but at a price that could help spread the adoption of mobile payments in India and well as other markets.”

“Beyond the money and time required, finding the expertise to build a product with this type of technology in India is almost impossible. It’s exciting to see an Indian company setting the pace globally for this market,” said Dr. Pramod Varma, Chief Technology Advisor for Ezetap and the former Chief Architect for the UID project.

The Ezetap solution consists of a lightweight card reader that can be plugged into practically any smart device or feature phone, and turn it into an intelligent point of sale. The new Ezetap device has a magnetic stripe and chip card reader with a pin pad integrated into a single product. The device is certified against global security standards and is compliant with the guidelines issued by the Reserve Bank of India. Earlier this month, Ezetap announced that it was the first company from India to achieve both EMV Level 1 and Level 2 certifications. Ezetap has over 7,000 live devices in India alone and says it is adding over 2,000 devices per month. In addition to India, Ezetap is live in Kenya and will be expanding to South East Asia in the next three months.

Headline News from PaymentsNews.com - July 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. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 18, 2013

US Bank Adds Square Wallet to Digital Wallet Options

USBank logo 140pxU.S. Bank has announced that it is adding Square Wallet to its digital wallet options available to customers on their iOS and Android smartphones. The bank says that "customers can link their U.S. Bank credit, debit, or prepaid account to the Square application to make purchases from their smartphone."

“We share a strong commitment with U.S. Bank to helping local businesses thrive” “Commerce is changing,” said Dominic Venturo, chief innovation officer for U.S. Bank Payment Services. “The proliferation of smartphones is altering the way consumers shop, compare products and make purchases. Our goal is to be where our customers are, and with the evolving marketplace, it’s important for us to support a variety of state-of-the art payment solutions to give customers the flexibility that they have come to expect from U.S. Bank.”

“We share a strong commitment with U.S. Bank to helping local businesses thrive,” said Chuck Kimble, head of strategic partnerships with Square. “Square Wallet gives U.S. Bank customers an easy and engaging way to discover and pay at great businesses in their neighborhood – all from their phone.”

Square wallet can be used at merchant locations that sell with Square. Customers can discover nearby businesses using Square Wallet, and pay at the point of sale with their mobile device by simply saying their name. Square’s technology automatically manages the transaction from the customer’s U.S. Bank payment account to the merchant. Transactions are completed without the cashier ever having the customer’s account number and other sensitive data.

RBC Announces RBC Secure Cloud Mobile Payments Solution for Canada

RBCRBC has announced RBC Secure Cloud - a mobile payments service that keeps sensitive client data secure with RBC in the cloud, not on the phone. RBC says this "makes RBC Secure Cloud a safer, faster, more flexible solution." RBC is calling the service "the first cloud-based mobile payments solution in Canada" - and notes that it's "patent-pending".

With RBC Secure Cloud, the financial institution assumes the security burden, since sensitive client data remains with the bank, as opposed to keeping it on the phone. The data is transmitted encrypted and decoded locally on the client's mobile device at point of sale through partnerships with mobile service providers. RBC says the solution is initially focused on NFC but "is flexible and can support new technologies such as bar or QR codes, or other standards, and allows offline transactions."

"We have designed a mobile payment solution that offers a better client experience and increased security than has been previously available, while meeting industry standards," said Linda Mantia, executive vice-president, Cards and Payment Solutions, RBC. "The result is a solution that offers benefits and options to everyone in the payment ecosystem."

"We understand the importance of security to our clients and make safeguarding their personal information our highest priority," said Paul Gerics, vice-president, Information Security at RBC. "RBC Secure Cloud is being built with the highest security standards in mind. We employ a diverse range of technologies and security mechanisms to help ensure the safety, confidentiality and integrity of our client's information and transactions."

"This is a critical advancement for mobile payments in Canada," said Mark O'Connell, President and CEO, Interac Association and Acxsys Corporation. "We are excited about RBC's announcement and our participation in the evolution of mobile payments."

RBC says it will bring RBC Secure Cloud to market by the end of the year with debit and credit on a number of smartphone platforms.

Dekkers L. Davidson Named CEO of MCX

Mcx logo 140x60pxThe Merchant Customer Exchange (MCX) has announced it has named Dekkers L. Davidson its Chief Executive Officer. Davidson was most recently Managing Director at Barclaycard US. Previously, Davidson led management consultancy Oliver Wyman’s U.S. mobile practice, and he managed investing activity in the mobile sector for Fidelity Ventures.

In announcing Davidson, the MCX Board released a joint statement saying:

“It was imperative for MCX to select a CEO who has a strong passion for the customer, who understands the emerging mobile payments industry, and who also aligns with the key objectives of MCX. In Dekkers, we have found someone uniquely qualified for this role.”
Davidson commented:
“The strength of the customer experience, the breadth of acceptance, and the quality and security of technology the MCX solution will offer provides MCX with a historic opportunity to improve the shopping and paying experience for customers. I’m excited and honored to have the opportunity to lead this initiative for such a prestigious group of merchants. Great things are ahead.”

Headline News from PaymentsNews.com - July 18, 2013

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Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

July 17, 2013

PayPal Grows Revenue 20%, Hits 132 MM Active Accounts - 2Q2013 Financial Results

PayPal logo 140x60pxPayPal's parent eBay has announced financial results for 2Q2013 which included strong growth numbers for its PayPal business unit.

PayPal delivered a strong second quarter performance with revenue increasing 20% to $1.6 billion. PayPal gained 4.7 million active registered accounts in the period and ended the quarter with 132 million, a 17% increase. PayPal's net total payment volume (TPV) grew 24% to $43 billion driven by consumer and merchant use of PayPal both on and off eBay. PayPal continues to invest in growing its addressable market, product development, and consumer awareness. Payment velocity increased with a sequential acceleration of both the number of transactions and payment volume. PayPal made strides offline with PayPal Here now live in six countries while growing domestic merchant coverage by signing agreements with more than 50 merchant acquirers to facilitate usage of PayPal over the Discover network.
eBay reports that PayPal's 'take rate" was 3.79%, up from 3.77% in the prior quarter but down from 3.94% in the same quarter last year. Transaction expense continued to decline to 1.04% while the loss rate ticked up to 0.31% compared to 0.26% in the same quarter last year.

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