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October 31, 2013

Circle Internet Financial Launches with $9 Million Series A from Accel, General Catalyst Partners

Circle logo 140pxJeremy Allaire has announced a new startup - Circle Internet Financial - that "will seek to drive mainstream adoption of digital currency such as Bitcoin by bringing payment acceptance tools to merchants, and easy to use services to consumers." The company has raised a $9 million Series A from Jim Breyer, Accel Partners and General Catalyst Partners.

Jim Breyer will join the Board of Directors of Circle, as will David Orfao of General Catalyst Partners. Jim Breyer, Accel and General Catalyst were investors in Allaire’s previous company, Brightcove, the industry-leading online video platform which had a successful IPO in 2012, and where Jeremy still serves as the company’s Chairman. Allaire also was a co-founder of Allaire Corp., whose ColdFusion product pioneered the Web application development market and led to a successful IPO in 1999. Allaire Corp was then acquired by Macromedia in 2001, where Allaire became CTO, and helped spearhead the strategy to create an application platform built around Flash.

Bitcoin and digital currency represent a once-in-a-lifetime opportunity to shape the future of the Internet and global commerce,” said Jeremy Allaire, founder and chief executive officer of Circle Internet Financial, Inc.

“There’s a tremendous opportunity to make payments easier, more secure and less costly for consumers and businesses. Digital currency can dramatically reduce the friction and costs currently experienced in the world by merchants and consumers.”

Circle launches amid surging interest in the promise of new global digital currencies such as Bitcoin, which can enable nearly instant payments and money transfers globally at almost no cost and with greater security and privacy than existing electronic payment methods. Like prior Internet-led disruptions of the media, communications and retail industries, Bitcoin’s disruption of payments and finance builds on open source and open standards to create resilient technology platforms that innovators can build upon.
It is rare to find a world-class entrepreneur embarking on a path to bring innovation to the global financial marketplace”, said Jim Breyer, Partner, Accel Partners. “The dramatic global growth in mobile, social and online commerce is creating the need and potential for a real global digital currency. With Jeremy’s vision for Circle and track record as an Internet pioneer, the opportunity here is to build potentially build a significant global company. I’m very pleased to be working with Jeremy again.”
Circle is regulated by the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of Treasury, as a money transmitter and is seeking appropriate state licenses. Circle also recently hired John Beccia as General Counsel and Chief Compliance Officer. Beccia, former Chief Regulatory Counsel for the Financial Services Roundtable in Washington, D.C. brings decades of operating experience in banking, compliance and risk management. Circle is committed to working with key government agencies and policymakers worldwide.

FIS Study Finds Consumers Want Immediate, Real-time Payments

FIS logo 140pxFIS has announced results of the third phase of a consumer banking behavior study finding that "consumers who transfer money person-to-person -- especially those sending money overseas -- want to make those transactions immediate; and, while young consumers are more likely to be among the early adopters of real-time payments, most importantly, they want the process to be convenient and easily accessible."

Real-time payments are clearly the future of money movement, according to the consumer demands laid out by our data,” said Anthony Jabbour, EVP, North American Financial Institutions, FIS.

“As the research has shown, people trust their financial institutions to bring them real-time payment solutions, but they will use other avenues if their bank can’t meet their needs. For that reason, financial institutions must adapt to keep step with their customers and not fall behind non-bank competitors.”

The study, conducted by global market research provider Ipsos Vantis, on behalf of FIS, gauged consumer sentiments and potential economic value for banks that instantly authorize transactions in four key market groups: outbound foreign money transfer users, account-to-account (A2A) transfer users, person-to-person (P2P) payment users and online bill payers.

Faster payment was rated as being important by 80 percent of outbound foreign money transfer users, because it provides both senders and recipients with peace of mind. The majority (58 percent) of A2A users also want to be able to transfer their money between accounts quickly and a large percentage (41 percent) of P2P users want recipients to be able to access funds immediately. Potential adopters of outbound foreign money transfer and P2P real-time payments most often want to use real-time applications to send money -- as gifts, payments, for emergencies and more -- to family members and friends.

Another significantly desired convenience is the ability to enter a recipient’s email address or phone number to route a transaction instead of a long series of bank and checking account numbers. Demand for this convenience is particularly strong among younger generations. Fifty-five percent of Gen Y and 43 percent of Gen X consumers stated they would be more likely to use real-time payments if they could transfer funds in this way.

Headline News from PaymentsNews.com - October 31, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 30, 2013

Square Names Former Goldman Sachs CFO David Viniar to Board as Howard Schultz Steps Down

Square logo 140pxSquare has announced that it has appointed David Viniar to its Board of Directors replacing Howard Schulz who has stepped down. Viniar was most recently Executive Vice President and Chief Financial Officer of Goldman Sachs, and is currently a member of its Board of Directors.

David’s extraordinary financial insight and expertise will add another valuable perspective to our world-class board,” said Jack Dorsey, CEO of Square.

“The growing scope of Square’s business and long-term vision is inspiring,” said Viniar. “I’m honored to join Square’s Board at such an important time in the company’s growth.”

“Howard’s guidance has helped Square grow as a company and as a business,” said Dorsey. “I have come to know Howard well, and I always appreciate his thoughtfulness and good counsel.”

“Jack has assembled a strong and forward-thinking leadership team at Square,” said Howard Schultz, Starbucks chairman, president and ceo. “I am proud of what our companies have accomplished together this past year and I’m excited about the opportunities for Starbucks and Square to continue to innovate together.”

Square’s Board of Directors also includes Jack Dorsey, Roelof Botha, Vinod Khosla, Jim McKelvey, Mary Meeker, and Larry Summers.

Boku Introduces Mobile Carrier Billing for Parking

Boku logo 140x60pxBoku has announced it is "bringing carrier billing to the real world" through a new partnership with PassportParking. Boku says that a "multi-city trial will give drivers a new way to purchase daily and hourly parking at select lots around the country, using only their mobile phone number, with the charge appearing directly on their carrier billing statement."

“Over the last year, carrier billing has really come into its own as a preferred payment method on new devices, from Smart TVs to game consoles. But bringing our solution to real world purchases has always been a major goal for Boku”

“We’re always looking for innovative ways to improve the parking experience for our customers,” said Bob Youakim, Managing Partner for PassportParking. “People want to park, pay, and get on their way with as little effort as possible. With carrier billing, our parkers can just grab their phones, text, and get back to business. No searching for a pay station or digging for coins or your credit card. That’s a huge value add for our customers.”

Using Boku’s® text-to-pay option to pay for parking, drivers only need to text the parking zone and spot number to a phone number readily displayed at the lot. The payment is authenticated right on the phone, and the charge appears on the user’s mobile statement. Anyone with a phone can pay for parking in less than a minute and they are on their way.

The trial will begin in November in: Chicagoland, IL; Denver, CO; Charlotte, NC; Ocala, FL; Ft. Lauderdale, FL; and Hudson, WI.

PayPal Launches Startup Blueprint Program

PayPal logo 140pxPayPal has announced it is introducing a new Startup Blueprint program which waives fees for PayPal's payment processing up to $50,000 over 18 months along with providing "white glove, developer-focused customer service."

PayPal says that to be eligible for the program, "startups must focus on making mobile or web software or services, make less than $3 million USD in annual revenue or be less than five years old. Companies must be nominated by PayPal, or one of the accelerators or incubators enrolled in the Startup Blueprint program. We will be opening it up soon for other startups that want to apply."

More details on PayPal's Startup Blueprint program can be found here.

Headline News from PaymentsNews.com - October 30, 2013

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 29, 2013

New Discussion Paper: Clearing and Settlement of Interbank Card Transactions Transactions

Fed Philidelphia logoThe Payments Cards Center at the Federal Reserve Bank of Philadelphia has published a new discussion paper titled "Clearing and Settlement of Interbank Card Transactions: A MasterCard Tutorial for Federal Reserve Payments Analysts" by Susan Herbst-Murphy.

From the summary: "The Payment Cards Center organized a meeting at which senior officials from MasterCard shared information with Federal Reserve System payments analysts about the clearing and settlement functions that MasterCard performs for its client banks. These functions involve the transfer of information pertaining to card-based transactions (clearing) and the exchange of monetary value (settlement) that takes place between the banks whose customers are cardholders and those banks whose customers are card-accepting. This document summarizes some of the key points from that meeting."

First Data Acquires Perka Mobile Marketing/Loyalty Platform

First data logo 140x60pxFirst Data Corporation has announced it has acquired Perka, provider of a smart loyalty program. Perka, based in New York City and Portland, OR, became a First Data subsidiary on Oct. 4, 2013, and continues to operate autonomously. Financial terms of the deal were not disclosed.

“The loyalty industry is rapidly moving from being proprietary and closed to open and interconnected. This shift opens up tremendous opportunities for small and mid-sized businesses to run virtually the same mobile marketing programs as major brands,” said Alan Chung, chief executive officer, Perka.

“We’re excited to join forces with First Data to revolutionize the loyalty space and level the playing ground for smaller merchants with the Perka platform.”

Perka is a mobile marketing and consumer loyalty platform that helps small to medium-sized merchants engage their customers with location-based smartphone apps. The Perka Punchcard service and Perka Flexpoints for retail stores and sit-down restaurants deliver sustainable and highly personal marketing and incentive programs to consumers. The cloud-hosted platform features merchant-validated transactions, triggered offers, mobile messaging, and retail customer relationship data for the merchant.

Headline News from PaymentsNews.com - October 29, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 28, 2013

How Should Industries Like Payments Be Regulated in the 21st Century?

PayPal logo 140x60pxOn the PayPal Forward blog. Brian Bieron, Executive Director, Global Public Policy, for eBay posts an article about payments regulation in the 21st century - saying that

PayPal is stepping forward to meet this challenge by beginning a collaborative discussion about how increasingly ubiquitous 21st Century technology and data-analytics techniques used by technology-enabled organizations can be used by government regulators to make better and faster decisions to help deliver better results."

Along with the blog post, Bieron also links to three reports - one for Asia/Pacific, one for the EU and one for the US - each addressing payments regulation and suggesting a new approach to regulation that "will enable regulators to better achieve their goals, benefit consumers, and allow for a faster pace of business innovation."

For example, in the policy paper for the US, PayPal writes: "The regulatory landscape is frozen in an outmoded model for decision-making that is decades behind the times. New ideas and fresh thinking are required to thaw the ice." PayPal goes on to propose a new "Smart Governance Cycle" - detailed a multi-step cycle based on big data and careful analytics. The paper is a fascinating look at a whole new approach to understanding and adapting regulation to market forces while encouraging innovation in payments.

Just Make Payments Go Away...

I did a slide for a client last week that said in big letters that what consumers want is to "Make Payments Go Away."

This article titled "A Better Way to Settle Up" by Farhad Manjoo in Fast Company's November edition explains more about that concept.

Every restaurant meal you've ever had, at the greasiest spoon or the most rarefied temple of gastronomy, ends the same way--with a terribly outdated ritual that I like to call the payment dance.
Indeed!

Headline News from PaymentsNews.com - October 28, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 25, 2013

InComm Launches Cashtie™ Cloud Match Service

InComm logo 140pxInComm has announced the launch of the Cashtie™ Cloud Match Service - describing it as a "RESTful API that enables loyalty program, mobile wallet and digital coupon providers to offer their capabilities to InComm's retail network without lengthy integration or new hardware to install at a retailer's point-of-sale (POS). InComm's Cashtie Cloud Match Service enables providers and retailers to manage and process mobile barcode transactions without any changes to the POS system, leveraging the established host-to-host connectivity between InComm and the retailer and InComm's barcode activation.

Cashtie Cloud Match provides a solution that works today to enable retailers and emerging payment and loyalty providers to transact," said Thomas Cornelius, senior vice president, InComm. "While other options are available, they require changes to the cash register or the installation of expensive new equipment, so for the first time partners and retailers leveraging Cashtie's Cloud Match solution can offer new payment, coupon and loyalty solutions that their customers demand today, while the hardware and software upgrade cycle of retailers may still be years out."
Here is how the Cashtie service works: a consumer selects to display a barcode for a coupon, payment or loyalty transaction within a mobile application and presents the barcode on their mobile phone to a cashier to be scanned. When the barcode is scanned from the mobile phone at the POS, the Cashtie Cloud Match Service instantly receives the transaction information.

The cloud match service uses the transaction details to match, in the cloud, the transaction at a specific cash register within a particular retail location and the provider that is associated with the barcode. Cashtie then shares this information with the provider, who matches it to a specific consumer and responds with the transaction details for making a payment, receiving a discount or gaining loyalty points. Cashtie then sends the details for the transaction back to the POS either via InComm's proprietary switching technology, as part of InComm's Enhanced Payment Platform or to any third party switching solution used by the retailer. All of this occurs in real-time.

Cashtie Cloud Match is a RESTful API and providers can request access via http://www.cashtie.com/cloudmatch.

Headline News from PaymentsNews.com - October 25, 2013

On the web:

On the wires:

  • Coming Soon!

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 24, 2013

Headline News from PaymentsNews.com - October 24, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 23, 2013

PayPal and Blackhawk Network to Bring Gift Cards to the Digital Wallet

PayPal logo 140x60pxPayPal and Blackhawk Network have announced they are working together to enhance the gift card experience in general by bringing gift card services to the digital wallet.

According to the companies, "this collaboration will provide an easy way for consumers to both purchase gift cards and use them right from within the PayPal app – beginning in the first half of 2014. Consumers will also be able to reload gift cards from the app, check balances and, of course, be able to keep all of their gift cards in one handy place.:

Headline News from PaymentsNews.com - October 23, 2013

On the web:

  • eBay's turnaround hits a speed bump - Fortune - "eBay recently responded to rising competition in online payments by paying $800 million for Braintree, an online payments processing company..."
  • Bitcoin Poses a Challenge for Law Enforcement - Wall St. Journal - "The rise of Bitcoin, the little-regulated digital currency, is challenging law enforcement's ability to keep tabs on the criminal underworld."

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 22, 2013

Alliance Data And Dwolla Announce Multi-Year Agreement

Dwolla logo 140pxDwolla and Alliance Data Systems have announced signing a new, multi-year agreement for "Alliance Data's Retail Services business to provide a cardless private label credit product for the Dwolla payment network."

Credit is not new—but providing it on a real-time network that removes interchange fees, supports the evolution of credit, and provides a means of cardless payment—is, and that's what Dwolla Credit does," said Ben Milne, chief executive officer and founder of Dwolla.

"Alliance Data's deep experience and the true interest they have in our company will not only lend a new level of convenience to our community of users, but will also give them front-row seats to what we believe will be some really great innovations to credit."

Alliance Data will provide the newly launched credit program, called Dwolla Credit. Once approved, consumers can use Dwolla Credit immediately and for future purchases at participating businesses found in Dwolla's new Storefront directory (www.dwolla.com/storefront). Interested consumers and businesses can register for access at realtime.dwolla.com.

Headline News from PaymentsNews.com - October 22, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 21, 2013

Blackhawk Network to Acquire Intelispend Prepaid Solutions

BlackhawkNetwork logo 140pxBlackhawk Network has announced that it has entered into a definitive agreement to acquire InteliSpend Prepaid Solutions, a provider in the corporate incentives and consumer promotions marketplace. The transaction is expected to close no later than November 8, 2013 and is subject to customary closing conditions including regulatory approvals.

"Blackhawk has become one of the largest third party providers of prepaid cards and payment solutions to consumers through its network of content providers and points of retail distribution. The acquisition of InteliSpend gives us a very strong entry into the complementary corporate incentives and consumer promotions channels," said Bill Tauscher, Blackhawk Network CEO.

"Together, we will be able to bring exciting new digital solutions into the corporate incentives industry in the U.S. and internationally, adding even more value for both InteliSpend's business customers and Blackhawk's content partners," he added.

InteliSpend is one of the largest providers of prepaid open loop incentive products. The company pioneered Restricted Authorized Network (RAN) technology and developed the DirectSpend product that enables clients to fine-tune the effectiveness of their incentives programs by controlling merchant acceptance and directing consumer spend.

New on PaymentsViews.com: The Mobile Wallet Wars of 2014

PaymentsViews logo 140pxIn an article titled The Mobile Wallet Wars of 2013 over on our PaymentsViews.com blog, Glenbrook's Russ Jones writes about the distinctions between multi-merchant, general purpose wallets and merchant specific wallets and how wallets might shape up in 2014.
While the payments industry is running in circles trying to figure out the tap-and-pay challenge—which is a genuinely hard problem—merchants are deploying their own apps using the established card-on-file model.
Be sure to read Russ' thoughts and add your own comments/feedback over on PaymentsViews.com.

Headline News from PaymentsNews.com - October 21, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. 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!

October 18, 2013

Headline News from PaymentsNews.com - October 18, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join us for our Glenbrook Payments Boot Camp on October 23rd/24th in New York City!
  • Glenbrook's Elizabeth McQuerry will be speaking at this year's NACHA Global Payments Forum on October 17-18 in New York City. She'll be speaking on the topic "Mobile Payments, Interoperability & Faster Funds Transfer". Elizabeth will also be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami 4-7, 2013.
  • Glenbrook's Carol Coye Benson will be speaking at this year's American Bankers Association Annual Convention on October 20-22 in New Orleans. She'll be participating in a panel discussion on The Future of the Payments Industry.
  • Join our mailing list for updates about Glenbrook events. 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!

October 17, 2013

Headline News from PaymentsNews.com - October 17, 2013

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join us for our Glenbrook Payments Boot Camp on October 23rd/24th in New York City!
  • Glenbrook's Elizabeth McQuerry will be speaking at this year's NACHA Global Payments Forum on October 17-18 in New York City. She'll be speaking on the topic "Mobile Payments, Interoperability & Faster Funds Transfer". Elizabeth will also be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami 4-7, 2013.
  • Glenbrook's Carol Coye Benson will be speaking at this year's American Bankers Association Annual Convention on October 20-22 in New Orleans. She'll be participating in a panel discussion on The Future of the Payments Industry.
  • Join our mailing list for updates about Glenbrook events. 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!

October 16, 2013

PayPal Grows Revenues 19%, Adds 5 Million Registered Users - 3Q2013 Financial Results

PayPal logo 140pxPayPal's parent eBay has announced financial results for 3Q2013 which included strong growth numbers for its PayPal business unit.

PayPal delivered a strong third quarter performance with revenue increasing 19% to $1.6 billion. PayPal gained 5.0 million active registered accounts and ended the quarter with 137 million, a 17% increase. PayPal's net total payment volume (TPV) grew 25% to $44 billion driven by consumer and merchant use of PayPal both on and off eBay. Merchant Services net TPV increased 30% with a sequential acceleration of payment volume.
eBay reports that PayPal's 'take rate" was 3.70%, down from 3.89% in the same quarter last year. As compared to the prior quarter, PayPal's ransaction expense increased slightly to 1.05% while the loss rate declined slightly to 0.30%.

Square Introduces Square Cash for P2P Payments from Debit Cards

Square logo 140pxSquare has introduced a new service, Square Cash, which "makes sending money as simple as sending an email."

Square has always believed in creating solutions for individuals and businesses that work with the tools they already have in their pocket,” said Square Cash lead Brian Grassadonia. “Square Cash makes it convenient to send money to anyone—without making them jump through hoops to retrieve it. Now it’s easier than ever to split a bill, send a birthday gift, or settle up with a friend, no matter where you are.”
Square Cash is free to send and receive, and there is no signup process. Funds are directly deposited into the recipient's bank account, rather than held in a stored balance account.

A number of reviewers last night cited the simplicity of send money using Square Cash - including Walt Mossberg who wrote in AllThingsD: "The people helping me test were generally wowed. One called it “slick.” Another replied: “Done. Two secs.”

Have you tried Square Cash? Share your comments below.

Headline News from PaymentsNews.com - October 16, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join us for our Glenbrook Payments Boot Camp on October 23rd/24th in New York City!
  • Glenbrook's Elizabeth McQuerry will be speaking at this year's NACHA Global Payments Forum on October 17-18 in New York City. She'll be speaking on the topic "Mobile Payments, Interoperability & Faster Funds Transfer". Elizabeth will also be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami 4-7, 2013.
  • Glenbrook's Carol Coye Benson will be speaking at this year's American Bankers Association Annual Convention on October 20-22 in New Orleans. She'll be participating in a panel discussion on The Future of the Payments Industry.
  • Join our mailing list for updates about Glenbrook events. 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!

October 15, 2013

TSYS Publishes New Research on Consumer Payment Preferences

Tsys logo 140pxTSYS has announced it has made available to the industry the results of its 2013 Consumer Payment Choice Study conducted to gauge current and potential future consumer payment preferences.

TSYS remains committed to providing our clients and other payments industry participants with insights into current and evolving payment trends,” said Sarah Hartman, senior director, TSYS.

“Our research once again confirms the enduring strength of traditional debit and credit products, while also revealing that consumers are increasingly aware of and interested in emerging payment options.”

Key findings from this year's survey include:

  • Although the economics of debit may once again shift, debit cards continue to be the preferred payment type for everyday purchases, with credit being a close second.
  • Payment preferences vary by type of merchant and location, with credit being the preferred payment type for online purchases.
  • Rewards and discounts are the most effective way to influence consumers to use a payment type more often.
  • Consumers are actively using their mobile devices for overall financial activity, in particular for alerts and balance information.
  • Mobile payment usage, while still in the early adoption phase, is rapidly evolving.
  • Consumers continue to be focused on the security, ease of use, control and speed at check-out associated with their method of payment, and incorporating these features into new or expanded offerings will likely result in greater consumer adoption.

Musings on Money2020

PaymentsViews logo 140pxIn a post titled "Money2020: Impressions & Observations" over on our sister PaymentsViews.com site, Glenbrook's Erin McCune shares her thoughts and insights from last week's Money2020 conference in Las Vegas - and she places a bet on "real-time, good funds push payments" in the US within five years.

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