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July 25, 2013

Headline News from PaymentsNews.com - July 26, 2013

On the web:

On the wires:

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!

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

On the web:

On the wires:

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 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

On the web:

On the wires:

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:

On the wires:

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

On Twitter:

On the web:

On the wires:

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!

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