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January 31, 2014

MasterCard Reports Fourth-Quarter 2013 Financial Results

MasterCard logo 140pxMasterCard has announced financial results for the fourth quarter of 2013 reporting net income of $684 million, up 13%, and earnings per diluted share of $0.57 up 16%, versus the year-ago period. Net revenue for the fourth quarter of 2013 was $2.1 billion, a 12% increase versus the same period in 2012. Adjusted for currency, net revenue increased 11%.

“We are very pleased with our performance this quarter and our full-year 2013 results reflect the overall strength of our global business,” said Ajay Banga, MasterCard president and CEO.

“In addition to signing several significant deals last quarter, we made new investments in processing and person-to person payments while expanding our MasterPass digital platform - all supporting safe and seamless payment experiences."

Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the fourth quarter of 2012, to $805 billion. As of December 31, 2013, the company’s customers had issued almost 2 billion MasterCard and Maestro-branded cards.

Headline News from PaymentsNews.com - January 31, 2014

The second edition of our book "Payments Systems in the U.S." has just been published. It's available in print from Amazon.com and in an ebook version for your iPad.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 30, 2014

PaymentsViews.com: The Biggest Mobile Payments Story You’ve Never Heard

PaymentsViews logo 140pxIn an article titled The Biggest Mobile Payments Story You’ve Never Heard over on our PaymentsViews.com blog, Glenbrook's Elizabeth McQuerry writes about developments in mobile payments in Latin America. Elizabeth writes:

As we move into 2014 – yet (again) the year when many say mobile payments are destined to gain traction – let’s look at some key developments in the space. No, I’m not talking about the newest pilot participant in ISIS or whether Apple will be the new sheriff in town. Instead, let’s look to the south to where the foundation is being laid for mobile payments to take hold in a few Latin American countries.

If you're so inclined, Elizabeth would appreciate your comments on the article!

Visa Inc. Reports Fiscal First Quarter 2014 Financial Results

Visa 2014 logo 140x60Visa Inc. has announced financial results for the Company's fiscal first quarter 2014. Net income for the fiscal first quarter was $1.4 billion or $2.20 per share, an increase of 9% and 14%, respectively, over the prior year results. Net operating revenue in the fiscal first quarter of 2014 was $3.2 billion, an increase of 11% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues.

Visa delivered a strong fiscal first quarter, posting solid revenue, net income and earnings growth. We continue to focus on embracing new partners and new technology which will make our network the one of choice. We also continue to build services for issuers, acquirers and merchants to make our network a valuable asset for our clients," said Charlie Scharf, Chief Executive Officer of Visa Inc.

"The recent series of data compromises are terribly unfortunate for everyone involved. However, the established and well understood rules that govern traditional networks coupled with the cooperation between merchants, financial institutions, and the networks have minimized the level of the monetary losses. But these incidents remind us of the need for all of us to continue to work together to secure payments from criminals. Visa is committed to ensuring our network operates at the highest level of security available and will continue to move the industry towards the adoption of new safeguards including EMV chip and tokenization. We also will work with all participants to look beyond these technologies," added Scharf.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2013, on which fiscal first quarter service revenue is recognized, was 13% over the prior year at $1.1 trillion.

Headline News from PaymentsNews.com - January 30, 2014

The second edition of our book "Payments Systems in the U.S." has just been published. It's available in print from Amazon.com and in an ebook version for your iPad.

On the Web:

  • Amazon’s Ambition in Physical Retail May Go Way Beyond Payments - Re/code.net - "The goal is to make this new collection of tools and services as critical to brick-and-mortar shops as its Amazon Web Services offering has become to online businesses."
  • Apple introduces us to a Major Financial System Beyond iWallet - Patently Apple - "On January 30, 2014, the US Patent & Trademark Office published a major patent application from Apple that reveals a new financial Systems Integration System." Meeting the Needs of Non-Traditional Consumers and Achieving Scale with Mobile Contactless Payments in the U.S. - Federal Reserve Bank of Boston - Mobile Payments Industry Workgroup - "In November 2013, the Mobile Payments Industry Workgroup (MPIW) met with academia, government, non-profits, card networks, mobile wallet providers, transit authorities, issuing banks, and retailers to gain a better understanding of fundamental consumer mobile payment adoption issues by exploring how mobile financial services and payments can meet the needs of non-traditional consumers and what is needed to achieve scale in the U.S. mobile payments market. The findings in this paper are based on the discussions at this meeting and include panelists' views on mobile technology and financial access considerations for the underserved consumer, broader consumer market adoption for mobile retail payments, and the transformational role of mobile technology for financial services."
  • Visa CEO Doesn’t See Bitcoin As Business Threat - CoinDesk - "Visa CEO Charlie Scharf offered his opinion of bitcoin and other emerging virtual currencies on 30th January in a conference call discussing Visa’s first-quarter fiscal earnings."
  • Fred Wilson's 5 Predictions for the Future of Your Money - Inc. - "If you like the way Wilson makes bets with his venture-capital fund, Union Square Ventures, which has invested in Etsy, Tumblr, and Twitter, you might just like the way he thinks about the future of currencies."
  • Why Bitcoin is here to stay - ZDNet - "...the drivers are simply too powerful - crypto-currency is around to stay and the changes to our global economy because of it will be staggering. So take a reality pill and strap in."
  • Coinbase and Mint Announce First Bitcoin Personal Finance Integration - "This partnership marks a milestone in the ongoing evolution of bitcoin as Mint becomes the first personal finance and money management tool enabling users to view their bitcoin transactions."
  • PayPal Wants Role In Apple’s Mobile Payments Dreams - Re/code.net - "Three payments industry executives tell Re/code that eBay-owned PayPal has been pitching Apple on helping the consumer electronics maker bring its long-rumored payments initiative to fruition."
  • Ribbon Takes On Square Cash, PayPal & Others With A Peer-To-Peer Payments Service That Lets You Send Money For Free - TechCrunch - "The difference here, besides not yet being available in a native app format, is that Ribbon works with both debit and credit card users, and will allow you to send payments to others without first having a Ribbon account."
  • Mobile Payments, Electric Cars and the Keys to Driving Change - Re/code.net - "The shared issues between e-cars and smartphone payments boil down to cost of hardware (the phone, the car), infrastructure (networks and merchant acceptance, filling stations), but perhaps most importantly, the catalyst for changing human behavior."
  • GhIPSS Urges Banks to Issue Local Cards - Payments Afrika - "Ghana Interbank Payment and Settlement Systems (GhIPSS) has urged banks to issue more proprietary ‘local’ ATM cards to their customers. Historically most banks in Ghana would issue international cards..."

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 29, 2014

Headline News from PaymentsNews.com - January 29, 2014

The second edition of our book "Payments Systems in the U.S." has just been published. It's available in print from Amazon.com and in an ebook version for your iPad.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 28, 2014

Headline News from PaymentsNews.com - January 28, 2014

The second edition of our book "Payments Systems in the U.S." has just been published. It's available in print from Amazon.com and in an ebook version for your iPad.
Upcoming Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City.

On the Web:

On the Wires:

  • Bitcoin vs. Electronic Money: Digital But Different - "A new CGAP report released today compares the main differences between Bitcoin and electronic money (e-money). The report shows that Bitcoin as a virtual currency is markedly different from e-money and cautions regulators and policy makers not to confuse the two."
  • Clinkle Names PayPal’s Mike Liberatore As Chief Financial Officer - "Liberatore joins the company from PayPal, where he served as senior director of large enterprise finance and the North America financial planning and analysis (FP&A) group."
  • Bluetooth® Smart Technology Unveiled as the Magic Behind Beacons - "Bluetooth Smart brings three essential features to the beacon experience: an intelligent wireless connection that can authenticate and manage interactions; an extremely power-efficient connection that doesn’t drain the user’s phone battery; and ubiquitous support from phone manufacturers and mobile operating systems."
  • FIS Continues its Leadership Role in U.S. EMV Smart Card Transition - “Smart card technology is the way of the future; it’s vital in mitigating card-present fraud; it offers greater spending convenience to people traveling overseas, where EMV already is standard; and it allows the U.S. to move to more secure processing of card transactions,” said Bob Woodbury, SVP and General Manager, FIS Payments Networks.
  • GTCR Closes $3.85 Billion Buyout Fund - "Target investments will continue to focus on companies across high-growth sectors, including Financial Services & Technology, Healthcare and Information Services & Technology."

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 27, 2014

US Postal Service Explores Providing Non-Bank Financial Services

The US Postal Service's Office of Inspector General has published a new white paper titled: "Providing Non-Bank Financial Services for the Underserved". From the Executive Summary:

The Postal Service is well positioned to provide non-bank financial services to those whose needs are not being met by the traditional financial sector. It could accomplish this largely by partnering with banks, who also could lend expertise as the Postal Service structures new offerings. The Office of Inspector General is not suggesting that the Postal Service become a bank or openly compete with banks. To the contrary, we are suggesting that the Postal Service could greatly complement banks’ offerings.

They conclude the introduction by writing: "There is a clear market need for innovative financial products, and millions of families would benefit from more affordable solutions. The Postal Service could be exactly what they are looking for."

Headline News from PaymentsNews.com - January 27, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 25, 2014

New Payment Card Compromise Reported at Michaels Stores

Earlier this afternoon, Brian Krebs broke the story on his Krebs on Security blog about a newly discovered pattern of payment card fraud on cards which had been used earlier to pay for purchases at Michaels Stores.

Subsequently, the company itself issued a press release: "Michaels Stores, Inc. (the “Company” or “Michaels”) recently learned of possible fraudulent activity on some U.S. payment cards that had been used at Michaels, suggesting that the Company may have experienced a data security attack."

CEO Chuck Rubin was quoted: “While we have not confirmed a compromise to our systems, we believe it is in the best interest of our customers to alert them to this potential issue so they can take steps to protect themselves, for example, by reviewing their payment card account statements for unauthorized charges.”

January 24, 2014

Discover Reports 4Q2013 Financial Results

Discover logo 140pxDiscover Financial Services yesterday reported financial results for the fourth quarter of 2013. Discover card sales volume increased 3% year over year while credit card loans resulting from card usage grew 4%. Net charge-off rate for credit card loans increased 4 basis points from the prior quarter to 2.09% and delinquencies over 30 days past due increased 5 basis points from the prior quarter to 1.72%.

The fourth quarter concluded a strong year for Discover, with record net income for 2013," said David Nelms, chairman and CEO of Discover. "Last year, we grew our card receivables faster than the industry and further established ourselves as a leading direct bank and payments company through expanded product offerings and new payments partnerships."

In Discover's Payment Services segment, revenue declined due to lower transaction processing revenue at its PULSE debit card unit.

Global Payments to Acquire PayPros for $420 MM

Globalpayments logo 140pxGlobal Payments has announced an agreement to acquire Payment Processing, Inc. (PayPros). PayPros, based in California, is a provider of fully-integrated payment solutions for 58,000 small-to-medium sized merchants in the United States. PayPros delivers its products and services through a network of over 1,000 technology-based enterprise software partners to vertical markets that are complementary to the markets served by Accelerated Payment Technologies, Inc., a Global Payments company since October 2012.

Global Payments' President and CEO Jeffrey S. Sloan said: "Our acquisition of PayPros will expand our direct distribution, add new vertical markets, accelerate growth in our largest geography and further enhance our existing integrated solutions business with the addition of PayPros' talented team."

Chuck Smith, Founder and CEO of PayPros, added, "I am very pleased to announce this partnership with Global Payments. This transaction is the culmination of nearly two decades of hard work and vision at PayPros. I am confident that Global Payments will be a fantastic partner for our customers and employees."

Under the terms of the agreement and pending regulatory approvals and customary closing conditions, Global Payments will pay $420 million in cash to acquire PayPros, inclusive of tax assets.

Headline News from PaymentsNews.com - January 24, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 23, 2014

Neiman Marcus Reports 1.1 MM Payment Cards Potentially Compromised

In a letter to customers on its website, Neiman Marcus President and CEO Karen Katz writes:
It appears that the malware actively attempted to collect or "scrape" payment card data from July 16, 2013 to October 30, 2013. During those months, approximately 1,100,000 customer payment cards could have been potentially visible to the malware. To date, Visa, MasterCard and Discover have notified us that approximately 2,400 unique customer payment cards used at Neiman Marcus and Last Call stores were subsequently used fraudulently.
She continues: "We are notifying ALL customers for whom we have addresses or email who shopped with us between January 2013 and January 2014, and offering one free year of credit monitoring and identity-theft protection."

Stripe Raises $80MM at $1.75 Billion Valuation

Stripe Logo 140pxSan Francisco-based Stripe has closed an $80 million Series C financing round at a reported $1.75 billion valuation. According to TechCrunch, the round was led by Founders Fund with Khosla also joining as a new investor and earlier investors also participating.

Founded by brothers Patrick and John Collison, Stripe set out to be a "developer-friendly way to accept payments online and in mobile apps" and differentiates itself from other payment service providers by emphasizing its "robust, clean APIs" that appeal to other developers needing to quickly implement payments solutions.

Last week Re/Code.net reported that " Stripe was nearing a deal with Twitter that would enable people to purchase products directly from tweets" - although to date there's been no official announcement of such a relationship.

As a reminder, Braintree was acquired by PayPal last month and was valued at $800 MM.

Headline News from PaymentsNews.com - January 23, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 22, 2014

A Graphical Look at PayPal's Performance

At Glenbrook, we've been following PayPal for a long time.  Each quarter, we take the latest financial results and add them to our database - and then produce a series of charts.  Following eBay's latest earnings release today, we did that again - and thought we'd share with you some of the charts that help illustrate PayPal's performance over time.

If you have questions or comments, please send them along to me: scott@glenbrook.com or on Twitter: @sjl. READ MORE »

PayPal Grows Revenues 19% in Q4, Adds 5.2 MM Users - 4Q2013 Financial Results

PayPal logo 140x60pxPayPal's parent eBay has announced financial results for 4Q2013 which included strong growth numbers for its PayPal business unit.

PayPal delivered a strong fourth quarter performance with accelerating momentum in its merchant services business. Revenue increased 19% in both the quarter and the full year, resulting in $6.6 billion in 2013. PayPal gained 5.2 million active registered accounts in the quarter and ended the year with 143 million, a 16% increase.

PayPal's net total payment volume (TPV) grew 25% in the quarter with 3 billion transactions generating $180 billion in net TPV for the full year. On-eBay payment volume grew 14% in both the quarter and for the full year, producing $54 billion in net TPV for the year. Merchant Services net TPV increased 31% in the quarter and 29% for the full year, resulting in $125 billion in net TPV for the year.

Mobile was a key catalyst, with payments volume off eBay growing 128% for the year. Total mobile payment volume for the year was $27 billion.

eBay reports that PayPal's 'take rate" was 3.53%, down 3.72% in the same quarter last year. As compared to the prior quarter, PayPal's transaction expense declined to 0.97% while the loss rate increased slightly to 0.32%.

Separately, eBay announced that "it has received a notice from Carl Icahn indicating that he has nominated two of his employees to its Board of Directors and submitted a non-binding proposal for a spinoff of its PayPal business into a separate company. The notice stated that companies controlled by Mr. Icahn had, earlier this month, acquired shares and derivative securities that give him an economic interest of approximately 0.82% in the company."

eBay commented that "eBay's Board of Directors routinely assesses the company's strategic direction and has explored in depth a spinoff or separation of PayPal. eBay's Board of Directors has concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best way to maximize shareholder value."

Managing Cardholder Data Security Risks

GP Logo Horizontal 140pxLast week, Glenbrook's Bryan Derman participated in a webinar titled "Managing Cardholder Data Security Risks in an Evolving Payments Landscape" along with colleagues Craig A. Hoffman of BakerHostetler and Marshall Heilman of Mandiant.

A recording of the webinar along with the slides that were presented are now available online.

Visa Europe Publishes 2013 Annual Report

Visa logo 60pxhVisa Europe has announced its results for 2013. Visa Europe CEO Nicolas Huss writes in a blog post discussing the results and his priorities for the future:

The results demonstrate that I've joined a very successful business. We have huge scale – as many Visa cards as people in Europe (500m) and €1 in every €6.50 spent in Europe is now on a Visa card."

The Visa Europe Annual Report is available for either viewing or downloading from the Visa Europe web site.

Headline News from PaymentsNews.com - January 22, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

On the Web:

  • The Value of PayPal and eBay Together - PayPal Forward Blog - "No other payments competitor has achieved PayPal’s success – because no other competitor has a commerce platform like eBay. PayPal is successful precisely because we are part of eBay Inc., not in spite of it."
  • Gang Rigged Pumps With Bluetooth Skimmers - Krebs on Security - "This blog has featured several stories about gas-pump skimmers that were Bluetooth enabled. What’s remarkable is how common these attacks have become."
  • A new way to pay: Dash rolls out more mobile payment tools at restaurants - Macworld - "If you have Dash installed on your phone, the Bluetooth-enabled Dashboard pushes you an alert when you walk into a venue where you can use the app to pay."
  • EBay Says Icahn Proposes PayPal Spinoff - Bloomberg - "The investor is proposing to spin off online payments unit PayPal, one of EBay’s faster-growing businesses."
  • LG Reveals Fingerprint ID Coming to their Smartphones this Year - "LG Electronics has revealed that they'll be integrating fingerprint recognition functionality into their premium smartphones ... later this year..."
  • Argentina restricts online shopping as foreign reserves drop - BBC - "Argentina has introduced new restrictions on online shopping as part of efforts to stop foreign currency reserves from falling any further."
  • Bitcoin Targets Payments Business of Giants Visa to JPMorgan - Bloomberg BusinessWeek - “Perhaps the rise of Bitcoin will put pressure on big banks to get us a more modern payment system,” said Jennifer Tescher, president of the Center for Financial Services Innovation, a Chicago-based research group.
  • Card-Theft Software Grew in Internet's Dark Alleys - Wall St. Journal - "The Reedum malware worked like a Trojan horse by hiding its malicious nature and compromising systems from inside."
  • Priorities for the future - Visa Europe (Nicolas Huss) - "As a membership organisation focused on European solutions for the best interests of all parties in our four‐party model, our continued success is good for the European economy because electronic payments fuel commerce, replace inefficient and expensive cash and fight the shadow economy."
  • Visa to step up marketing of V.me - Marketing Week (UK) - "Jonathan Vaux, V.me commercial director, says it will use “assets” such as its World Cup sponsorship to raise awareness of the service. Ads will push the convenience and security of V.me."
  • T-Mobile Hopes to Shake Up the Check-Cashing Industry, Too - Re/code.net - "Through the combination of a smartphone and a prepaid Visa debit card, T-Mobile (and its banking partner, Bancorp) aims to offer many of the services typically offered through a bank, including check cashing, direct deposit and bill pay."
  • T-Mobile wants to be your next bank The Verge - "T-Mobile's chief marketing officer Mike Sievert says the service could save the "typical household" using a check casher to cash their paychecks "about $1,500 per year.""
  • On the Matter of Why Bitcoin Matters - Medium (Glenn Fleishman) - "As a currency, I have little faith that it will become a replacement for dollars, euros, or renminbi. As a model for a future payment and transaction system, I believe it’s already shown its value."
  • B2B e-commerce gets its own publication - Internet Retailer - "B2Bec News, a weekly e-mail newsletter, will cover technology and strategies that manufacturers, wholesalers and distributors are using to sell online to businesses, government agencies and nonprofits, including universities and hospitals."

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 21, 2014

Now Available: Glenbrook's Payments Systems in the U.S. - Second Edition

The second edition of our book, “Payments Systems in the U.S. - Second Edition” is now available in both print and iBook editions. Updated to reflect recent changes in the industry, the book, described by many as “the new Bible for the Payments Industry”, provides a succinct and entertaining view of payments in the United States.

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The book provides a comprehensive, unbiased, and lively description of the industry”, says Carol Coye Benson, co-author and founding partner at Glenbrook. “It covers what payments systems are and how they work – providing insight into the marketing, economics, operations, technology, risk management and regulatory aspects of each system.

“Like the first edition, the second edition is the companion to our highly popular Payments Boot Camp workshop”, says Scott Loftesness, co-author and founding partner at Glenbrook. “The second edition adds the perspectives of consumers and merchants - the key users of payments systems, as well as that of many payment providers – the networks, banks, processors and service providers.”

Payments Systems in the U.S. - Second Edition is available for order on Amazon.com and as an iBook at the Apple iTunes store. Purchases of the first iBook edition can download an free update to the second edition.

Glenbrook clients may place bulk orders for the book, at a discount, directly with Glenbrook by contacting books@glenbrook.com. Registrants to Glenbrook’s Payment Boot Camp also get a copy of the book when they attend the two-day educational workshop.

Headline News from PaymentsNews.com - January 21, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 20, 2014

GlobalPlatform Announces Board of Directors for 2014

Globalplatform 240pxGlobalPlatform, the organization which standardizes the management of applications on secure chip technology, has announced its Board of Directors for fiscal year 2014.

For the fourth year, Marc Kekicheff – Senior Business Leader of Chip Innovation at Visa Inc. retains his position as Chairman. Uwe Wittig – Group Vice-President within the Mobile Security Business Unit at Giesecke & Devrient continues as GlobalPlatform Vice-Chairman; and Yves Moulart – Director of Development and Innovation within STMicroelectronics' Secure MCUs Division, Integrated Secure Solutions, is again confirmed as GlobalPlatform’s Secretary / Treasurer.

The GlobalPlatform Board of Directors, in its entirety, consists of the following GlobalPlatform Members:


  • Marc Kekicheff, Senior Business Leader of Chip Innovation – Visa Inc.
  • Uwe Wittig, Group Vice-President within the Mobile Security Business Unit – Giesecke & Devrient
  • Yves Moulart, Director of Development and Innovation, Secure MCUs Division, Integrated Secure Solutions – STMicroelectronics
  • Simon Moore, Director of Engineering of the Secure Services Division – ARM
  • Rémi de Fouchier, Vice-President, Marketing Communication – Gemalto
  • Arnaud du Chéné, Vice President, Head of Product Quality within Global Chip & Contactless Solutions – MasterCard Worldwide
  • Eikazu Niwano, Producer in the R&D Planning Department – NTT Corporation
  • Andreas Muehlberger, Senior Director Engineering – NXP Semiconductors Business Unit Identification
  • Sebastian Hans, Senior Standardization Manager – Oracle
  • Jeppe Dorff, Head of Transaction Services – Rogers Communication
  • Jon Geater, Chief Technology Officer – Trustonic

Headline News from PaymentsNews.com - January 20, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

On the Web:

On the Wires:

  • McDonald’s Launches McD App for Smartphones Throughout Northern Nevada Area - "McD App utilizes location-based services to provide consumers with deals and offers accessible direct from their mobile device and has the ability to tailor future offers and deals based on a user’s preferences and purchasing behaviors."

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 17, 2014

Last Call: The 2014 PaymentsNews Reader Survey

PaymentsNews logo 140px

Our thanks go out to the many readers who have already shared their opinions and recommendations about PaymentsNews in our 2014 Reader Survey. If you haven't had a chance to participate, we'd love to have you take a minute or two to do so. Your opinions and comments are very important to us and will help us make PaymentsNews more useful to you.

Please take a moment to participate.  It’s quick and easy: https://www.surveymonkey.com/s/393MCB3  

Thanks again for participating! - we'll be closing the survey over the weekend.

Headline News from PaymentsNews.com - January 17, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

On the Web:

On the Wires:

  • Retailers Urge Appeals Court to Make Federal Reserve Follow the Law - The Merchants Payments Coalition, a group of merchants fighting for a more competitive and transparent bank-card industry, said today: “Judge Leon struck a blow for fairness with his original ruling. We think the evidence will also prove as compelling to the appeals court. We look forward to that court reaffirming the Durbin Amendment as passed and sending the Federal Reserve back to the drawing board to ensure it actually follows the law.”
  • "NRF Asks Appeals Court to Uphold Order for Lower Swipe Fee Cap - "The National Retail Federation today asked an appeals court to uphold a judge’s ruling that the Federal Reserve set its cap on debit card swipe fees far higher than intended by Congress and that the cap needs to be recalculated at a lower level."
  • Retailers Comment On The Data Security Act - "PIN-and-chip cards are widely used across the globe, and it’s time for the bankcard industry in the United States to adopt that technology to better protect our consumers. We must transition away from 1960s technology and adopt a 21st century system that will help reduce and prevent fraud and protect customers from the threat posed by sophisticated cybercriminals, hackers and data thieves."
  • U.S. Bank Announces Plan to Wind Down Checking Account Advance - "U.S. Bank will begin to wind down its short-term, small-dollar deposit advance product, Checking Account Advance, to align with final regulatory guidance issued by the Office of Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC)."
  • FinCapDev 2014 Opens Call for Proposals - “Mobile technology has the potential to expand access to critical financial services and support, improving consumer financial health,” said Jennifer Tescher, President & CEO of the Center for Financial Services Innovation. “That’s what FinCapDev is all about: leveraging that potential and enabling innovators to build products for consumers who want and need better access to high-quality tools and information.”
  • Acculynk Gains Ground in Europe with Secure PIN-Based Authentication Patent Grant - "Acculynk, the first global PIN-debit authentication gateway, announced today that the European Patent Office granted Acculynk patent protection for the company’s propriety process for PIN based authentication over the Internet."

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 16, 2014

EMVCo to Work on Payment Tokenization Standards

EMVco logo 140pxEMVCo - which is collectively owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa - has announced that it is expanding its scope to lead the payments industry's work to standardize payment tokenization. EMVCo says that "the new specification will help provide the payments community with a consistent, secure and interoperable environment to make digital payments when using a mobile handset, tablet, personal computer or other smart device."

Tokenization is the process of replacing a traditional card account number with a unique payment token that is restricted in how it can be used with a specific device, merchant, transaction type or channel. When using tokenization, merchants and digital wallet operators do not need to store card account numbers; instead they are able to store payment tokens that can only be used for their designated purpose. The tokenization process happens in the background in a manner that is expected to be invisible to the consumer.

Key elements of EMVCo’s work include adding new data fields to provide richer industry information about the transaction, which will improve transaction efficiency and enhance the consumer and merchant payment experience by helping to prevent fraudulent card account use. EMVCo will also create a consistent approach to identify and verify the valid use of a token during payment processing including authorization, capture, clearing and settlement.

EMVCo’s announcement follows an earlier joint announcement from MasterCard, Visa and American Express that proposed an initial framework for industry collaboration to standardize payment tokenization. EMVCo says it will now build on this framework with collective input from all of its members and the industry as a whole.

Headline News from PaymentsNews.com - January 16, 2014

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 15, 2014

Headline News from PaymentsNews.com - January 15, 2014

We’d love to have you participate in our 2014 PaymentsNews Reader Survey! Please take a moment to participate - it’s quick and easy to complete: https://www.surveymonkey.com/s/393MCB3

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

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. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

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