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May 11, 2013

Headline News - May 11, 2013

On the web:

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

May 10, 2013

ATM Cash-outs, Security, and the Coming Authentication Battles

GP Logo Horizontal 140pxOver on, Glenbrook's George Peabody examines the recent attacks on two prepaid card processors which led to $45 million of cash being withdrawn from ATMs around the world over a very short period of time.

Chart of the Week - Canadian Interac Debit Card Fraud Losses (2006-2012)

Last week, we looked at the history of card fraud losses in the UK from 2001 through 2011. This week, we're taking a look at the history of counterfeit card fraud in Canada on Interac cards - Canada's national debit card scheme - based on skimming.

Interac reports that these losses decreased to $38.5 million in 2012 - representing just 0.012 percent of domestic Interac card volume) from a high of $142 million in 2009. Interac also reports that the number of cardholders affected by this form of card fraud fell to 93,800 in 2012 from 238,000 in 2009.

Over the last few years, Canada completed a migration chip card technology - with essentially all cards now equipped with chip and nearly 90 percent of POS terminals upgraded to support chip.

Canada Interac Debit Card Fraud 2006 2012

Headline News - May 10, 2013

On the web:

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

May 09, 2013

MCX Continues to Grow - Adding Southwest Airlines, Chilis, and Others

Mcx logo 140x60pxMerchant Customer Exchange (MCX) has announced the addition of several new merchants to its membership including Southwest Airlines, Brinker International, Inc. (parent company of Chili’s® Grill & Bar and Maggiano’s Little Italy®), Pacific Convenience & Fuels LLC and RaceTrac.

Southwest supports efforts to bring a competitive mobile-payments network to the market that also protects consumer and merchant data,” said Chris Monroe, Treasurer, Southwest Airlines. “We’re proud to join the growing list of outstanding merchants backing MCX.”
MCX’s 30-plus merchant members represent more than 700 million customer accounts and more than $1 trillion in annual sales.

Headline News - May 9, 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 08, 2013

Discover and Ariba Partner on B2B Payments

Discover logo 140pxDiscover Financial Services and Ariba have announced Ariba® Pay™, a new service to be offered by Ariba that the companies say "is expected to transform B2B payments by eliminating paper transactions, providing better visibility into cash flow and producing rich remittance information that improves reconciliation processes for buyers and sellers."

AribaPay will provide a reliable and cost-effective way for buyers to create purchase orders, receive invoices and send payments, while sellers receive more-detailed remittance information – all in a fast, secure, electronic environment.

"Ariba and Discover are seizing the opportunity to digitize a share of the estimated $30 trillion in B2B payments that are still mostly made with paper checks,” said Roger Hochschild, president and chief operating officer for Discover.

“Discover is broadening its network capabilities and infrastructure and choosing diverse business partners like Ariba to move beyond facilitating payments to enabling and improving business commerce.”

When launched in 2014, the cloud-based service will combine the applications and insights embedded in the Ariba Network and deliver them through Discover’s global payments infrastructure to enhance settlement and reconciliation of business commerce.

Headline News - May 8, 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 07, 2013

Coinbase - VCs Begin Investing in Bitcoin Startups

Coinbase logo 140pxIn an article titled "Bitcoin Startups Begin to Attract Real Cash", Sarah Needleman and Spencer Ante write for the Wall Street Journal about Coinbase, a San Francisco-based startup that is expected to announce Wednesday raising $5 million from venture investors led by Union Square Ventures.

The Coinbase web site says "Bitcoin Made Easy - Coinbase is the simplest way to buy, use, and accept Bitcoin."

Earlier Tuesday afternoon, Coinbase tweeted the news about its venture financing (see @coinbase on Twitter):

Fed Reports 2.4% Decline in Revolving US Consumer Credit for March 2013

FedToday the Federal Reserve reported on consumer credit for the month of March - reporting that revolving credit use by US consumers declined at a 2.4% annual rate to $846.2 billion - the first month of decline this year. Total consumer credit during March increased 3.4% with non revolving credit increasing 11.3%.

CFSI: Financial Technology Trends in the Underbanked Market

The Center for Financial Services Innovation (CFSI) and Core Innovation Capital have jointly produced a new paper "Financial Technology Trends in the Underbanked Market" which highlights recent innovations in mobile technology, computing power, and data availability that are driving the development of products and services for underbanked consumers.

“The emerging trends detailed in this research represent tremendous potential for the financial services industry to engage more fully with underserved consumers in value-driven ways,” said Rob Levy, Director, Research, CFSI.

“Our goal is to provide guidance and leadership as entrepreneurs and innovators begin to capitalize on new technology and develop relevant, sustainable, and scalable strategies for meeting consumer needs.”

The four key trends identified in the paper include:
  • Harnessing Social Networks
  • Solving the Cash In/Out Problem
  • Leveraging Big Data for Better Risk Management
  • Scaling Up by Going B2B2C

The paper has been sponsored by Morgan Stanley.

Headline News - May 7, 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 06, 2013

New Fed Report: U.S Mobile Payments Landscape - Two Years Later

Boston fed logo 140pxThe Federal Reserve Bank of Boston in conjunction with the Federal Reserve Bank of Atlanta has just published a new report titled "U.S. Mobile Payments Landscape – Two Years Later."

Based upon ongoing meetings of the Mobile Payments Industry Workgroup (MPIW) convened by the Federal Reserve, the report updates an earlier paper from 2011. It examines changes in the evolution of mobile POS retail payments over the past two years, characterized by an expanding fragmented market environment and frequent technology innovations.

“There have been some notable changes in the mobile payments area in the last two years,” said Marianne Crowe, Vice President of the Payment Strategies Group at the Federal Reserve Bank of Boston and co-author of the report.

“For instance, the mobile device has become a pivotal driver in creating a dynamic marketplace that is bringing diverse companies and sectors together, both as competitors and collaborators and across traditional boundaries of industry and technology.”

The report points out that competition and collaboration have been essential to moving the mobile payments industry forward, as marked by collaborative efforts among large banks and mobile network operators, card networks, retailers, mobile solution providers, and innovative start-ups.

The paper concludes that while the market is still nascent, progress is being made towards achieving benefits within this ecosystem such as improved security and fraud reduction, cost efficiencies, value-added services, revenue and monetization opportunities, and data privacy.

First Data Names Ed Labry Vice Chairman

First data logo 140x60pxFirst Data Corporation has announced that EVP Ed Labry has been named by the board as the company’s Vice Chairman.

“Ed Labry has done more to help build First Data than any other person I know,” said Chief Executive Officer Frank Bisignano. “It gives us great pleasure to name Ed to this new role, where he will continue to engage with our strategic customers and with our topmost prospects to help us drive new sources of top-line revenue.”
Having served as interim CEO since Jan. 28, Labry was previously president of First Data North America, a market that grew to contribute more than 85 percent of the company's consolidated revenue under his leadership from 2010 through 2012.

Discover Partners with UAE's Network International

Discover logo 140pxDiscover Financial Services has announced another partnership with a regional payment network - partnering with Network International, a payment solutions provider in the Middle East and promoter of the newly launched Mercury domestic card network.

The alliance will allow acceptance of Mercury Network Cards on Discover, Diners Club International and PULSE networks for international purchases and cash access outside of U.A.E.

“This alliance is another example of Discover’s flexibility, unique positioning in the market and ability to support and encourage domestic payment networks around the world,” said Diane Offereins, EVP and President of Discover Payment Services.

"By partnering with regional payment networks such as Network International, Discover is able to leverage its assets to grow volume and increase brand awareness in places like the U.A.E., one of the fastest growing economies in the world. We’re also providing our partners with customized solutions to help them achieve global reach and address localized preferences."

Discover has established other network alliances including relationships in China, Japan, Korea, Serbia, India, Puerto Rico, Nigeria and throughout Europe.

Headline News - May 6, 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 05, 2013

Book: Act of Congress - Inside the Passage of the Dodd-Frank Act

On Tuesday this week, a new book titled Act of Congress: How America's Essential Institution Works, and How It Doesn't by Washington Post associate editor Robert G. Kaiser will be published. Based on access that Kaiser had at the time to the bill's main sponsors, the book tells the story of the Dodd-Frank Act and how it was ultimately passed by Congress in 2010.

Today, in an article titled "How Barney Frank foiled the banking lobby to form a new financial watchdog", the Washington Post ran an excerpt from the book discussing the Consumer Financial Protection Agency, the formation of which was a centerpiece of Dodd-Frank.


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