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« April 21, 2013 - April 27, 2013 | Main | May 5, 2013 - May 11, 2013 »

May 03, 2013

Chart of the Week - UK Card Fraud Losses (2001-2011)

In our Chart of the Week last week, we looked at the relationship between the unemployment rate in the US and outstanding consumer revolving debt.

This week's chart of the week looks at the history of card fraud losses in the UK - as cited in the recent report "The U.S. Adoption of Computer-Chip Payment Cards: Implications for Payment Fraud" by Richard J. Sullivan of the Federal Reserve Bank of Kansas City. In the UK and a few other countries, these kinds of card fraud loss statistics are collected by the industry and shared publicly - unlike currently in the US.

UK Card Payment Fraud 2001 2011

Sullivan's article "examines how computer-chip cards work differently from magnetic-stripe cards, describes the security improvements offered by the chips, and reviews their mixed track record at defeating fraud in other countries."

The top dotted line in the chart represents the total card fraud losses on UK issued cards. The darker line below that represents fraud losses on IMOTO (Internet, mail order, and telephone order) card-not-present transactions while the third line below represents card fraud losses associated with counterfeit card transactions.

EMV chip card deployment took place in the UK during the shaded 2003-2006 time frame. Sullivan notes that the implementation of EMV initially helped reduce counterfeit card losses but that, because those cards still had magnetic stripes on them, fraudsters could still counterfeit them and use them at mag stripe acceptance locations outside the UK.

Sullivan goes on to comment:

After 2008, fraud losses with counterfeit cards and on IMOTO transactions declined. The decline was due to two factors. First, more merchants and ATMs on the European mainland had converted by that time to accept EMV payment cards, so fraudsters with counterfeit magnetic-stripe cards could no longer easily find locations where mag- netic-stripe cards were accepted, merely by crossing borders. Second, increasingly, merchants in the UK were adopting 3D secure systems for their IMOTO transactions."

Glenbrook's Scott Loftesness at Experian's Vision 2013 Conference

GP Logo Horizontal 140pxGlenbrook's Scott Loftesness will speaking on Monday, May 6, at Experian's Vision 2013 Conference in Carlsbad, California.

Scott will be helping to moderate a panel titled "Wallet Wars — Payments beyond 2013" that will be discussing the impact of mobile on payment business models and profitability for financial institutions, wireless providers and emerging players.

Speakers include Cherian Abraham (Experian), Pete Donat (First Data), Paul Moreton (Capital One), Ken Moy (MasterCard) and Chris Gardner (Paydiant).

Mobey Forum Releases New White Paper: "The MPOS Breakthrough"

Mobey forum logo 140pxThe Mobey Forum has just released a new white paper title "The MPOS Breakthrough: How the Power of Mobile has Disrupted Payments".

The paper begins:

"Little more than three years after the December 2009 launch of Square, MPOS has redefined merchant card acceptance at the point of sale (POS), by both rewriting the rules on who can accept card payments and vastly simplifying their means to do so."
The white paper along with a short webinar discussing it are available on the Mobey Forum website.

Headline News - May 3, 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.

May 02, 2013

Google Takes Minority Interest in Lending Club

LendingClub logo 140pxLending Club has announced that Google has acquired a minority stake in the company as part of a secondary transaction whereby new and existing investors acquired shares from existing investors. Buyers include Google and existing investor Foundation Capital.

"Lending Club is using the Internet to reshape the financial system and profoundly transform the way people think of credit and investment," said Google’s David Lawee. "We are excited to be a part of it."

"Few companies have such an in-depth understanding of the Internet as Google," said Lending Club CEO Renaud Laplanche. "We believe our relationship with Google will be very helpful in better serving our customers. We couldn’t be more excited to have them on board."

Lending Club facilitated more than $1.65 billion in loans since inception including over $350 million in the last quarter.

[Editor's note: see also this TechCrunch story on this latest round of financing for Lending Club.]

Headline News - May 2, 2013

On Twitter:

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.

May 01, 2013

Payments Views: Immediate Funds Transfers Are Happening!

PaymentsViews logo 140pxIn a new post on PaymentsViews.com titled "The Geeks Weigh In: Immediate Funds Transfers Are Happening!", Glenbrook's Elizabeth McQuerry writes about what's happening in the world of immediate funds transfer (IFT) systems in countries around the world - including results of a recent survey of payments professionals on their views toward IFT.

Equinox Introduces Apollo - A New Merchant POS Platform

Equinox logo 140pxEquinox Payments has announced the launch of Apollo - calling it "an entirely new technology platform focused on secure payment acceptance. The platform combines state-of-the-art hardware and software to provide merchants and their customers with a reliable, secure and intuitive experience at the point of sale."

Equinox says Apollo is its first major platform initiative since the company divested from Hypercom and will be initially targeted at small- and medium-sized businesses through the company’s extensive network of processor and ISO partners.

“Apollo represents a critical milestone both for delivering smarter technology and as proof of our final transition from the Hypercom legacy to a strong and independent Equinox,” said Patrick Hazel, Equinox Chairman and Chief Executive. “We are extremely pleased and excited to take this major step towards fulfilling our promise to build a major payments brand.”

Equinox says its new Apollo Customer Facing Device is EMV ready and capable of accepting alternative payments including contactless/NFC, PayPal, Google, Isis and other mobile wallets and services.

Separately, Equinox announced that Vantiv is planning to Class A certify the Apollo platform.

Headline News - May 1, 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.

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

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.

April 29, 2013

Headline News - April 29, 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.

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."

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