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April 30, 2014

PayPal Introduces New Brand Identity and Launches Global Brand Campaign

PayPal new 140pxPayPal has announced the introduction of a new brand identity and updated PayPal logo that it says "features a more modern and mobile-first appearance."

PayPal worked with the design firm fuseproject to develop the new logo and notes that it "flexes to fit all screen sizes, from wearables and mobile to the biggest, flattest high-definition TVs. It’ll be more legible and recognizable in both type and colors and will easily extend to be usable across the look/feel of various systems, and in the 193 markets we serve worldwide. Connection is a motivating principle behind the redesign — connection to money, to people and between people. It was important to evoke connection that was human and approachable, not too technical."

In addition, PayPal is unveiling a new global brand platform and campaign: Powering The People Economy.

“PayPal has an opportunity and responsibility to help people take control of their money and use it in any way they want, through seamless and delightful experiences,” said David Marcus, PayPal’s president. “Powering The People Economy is a recognition of what our customers should expect and demand from us – secure, easy and convenient payment experiences that get out of the way and get them closer to what they want.”

“PayPal believes in a world that works for people, rather than the other way around,” said PayPal’s vice president of global brand, Christina Smedley. “Through our products, we are making life better in tangible, practical and magical ways and building a world that makes every day easier and simpler for everyone. The essence behind this new campaign puts people, not institutions, first.”

As part of the campaign, PayPal said new television ads will air on major networks in a variety of programming in Germany, the United Kingdom, Australia and the United States, along with print and digital media throughout the summer and into the fall of 2014.

More information about the new brand identity and the campaign are available on the PayPal Forward blog.

Headline News from PaymentsNews.com - April 30, 2014

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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!

April 29, 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.

PayPal payments 1q14

PayPal pmt vol 1q14

PayPal revenue 1q14

PayPal take rate 1q14

PayPal expense rate 1q14

PayPal loss rate 1q14

PayPal Grows Revenues 19% in 1Q14 on 27% Growth in Payment Volume

PayPal logo 140pxPayPal's parent eBay has announced financial results for 1Q2014 which included strong growth numbers for its PayPal business unit.

PayPal revenue increased 19% in the quarter resulting in net revenues of $1.85 billion in the quarter. PayPal gained 5.8 million new active registered accounts in the quarter and ended the year with 148 million, a 16% increase.

PayPal's net total payment volume (TPV) grew 27% in the quarter with 834 million transactions generating $52 billion in net TPV for the quarter.

eBay reports that PayPal's 'take rate" was 3.55%, down from 3.77% in the same quarter last year. As compared to the prior quarter, PayPal's transaction expense increased slightly to 0.99% while the loss rate decreased to 0.27%.

Target Moves to MasterCard for Chip and PIN on REDcards

In a press releaseTarget logo 70px this morning announcing appointment of a new CIO (Bob DeRodes), Target also announced that its entire REDcard portfolio, including all Target-branded credit and debit cards, will be enabled with MasterCard’s chip-and-PIN solution. Existing co-branded cards will be reissued as MasterCard co-branded chip-and-PIN cards. Target said, through this initiative, ultimately all of Target’s REDcard products will be chip-and-PIN secured.

Target has long been an advocate for the widespread adoption of chip-and-PIN card technology,” said John Mulligan, executive vice president, chief financial officer for Target. “As we aggressively move forward to bring enhanced technology to Target, we believe it is critical that we provide our REDcard guests with the most secure payment product available. This new initiative satisfies that goal.”

“Target and MasterCard are taking an important step forward in providing consumers with a secure shopping experience, and the latest in payments technology,” said Chris McWilton, president, North American Markets for MasterCard. “Our focus, together with Target, is on safety and security.”

Earlier this year, Target announced an accelerated $100 million plan to move its REDcard portfolio to chip-and-PIN-enabled technology and to install supporting software and next-generation payment devices in stores. The new payment terminals will be in all 1,797 U.S. stores by this September, six months ahead of schedule. In addition, by early next year, Target will enable all REDcards with chip-and-PIN technology and begin accepting payments from all chip-enabled cards in its stores.

Headline News from PaymentsNews.com - April 29, 2014

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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!

April 28, 2014

Headline News from PaymentsNews.com - April 28, 2014

On the Web:

  • The Problem with Payments - Stratechery (Ben Thompson) - "This is why I, for the foreseeable future, expect to see little if any progress in the United States."
  • How bitcoin is moving money in Africa - USA Today - "The key characteristics of this digital cash also happen to make it a great fit for people who aren't so down with advanced digital technology: the 326 million Africans who lack access to basic banking services."
  • Walmart, ACH and the Elusive P2P Solution - PaymentsViews.com (Elizabeth McQuerry) - "The Walmart-2-Walmart service is a step forward but it’s not a perfect solution. Walmart certainly has plenty of stores in the U.S. but now it’s just another of the growing number of financial networks that is, effectively, just another island nation to itself."
  • Yelp Can Now Show if a Business Accepts Bitcoin - NewsBTC - "It’s unclear just when Yelp added this feature in, but they’ve certainly done so quietly."
  • VC Investment in European Fintech Hits Post-Dot-Com High - "Payment companies and big data companies have become a hot spot for venture capitalists, according to several investors."
  • Northwest’s cheap power drawing bitcoin miners - The Spokesman Review - “I am only personally aware of two bitcoin mining firms locating in Grant County,” Boss said. “But I’ve been told that at least five others are in the process of locating in the area.”

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!

April 25, 2014

Headline News from PaymentsNews.com - April 25, 2014

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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!

April 24, 2014

How We Pay: Results from the Federal Reserve's Latest Payments Study

Atlanta fed logo 140x60pxIn an article in the Federal Reserve Bank of Atlanta's EconSouth, managing editor Tom Heintjes highlights the preliminary results of the 2013 Federal Reserve Payment Study.

Since 2003, when Congress passed the Check Clearing for the 21st Century Act (commonly known as Check 21), the U.S. payments system has shifted dramatically. For instance, paper checks, which once comprised nearly half of noncash payments, accounted for only 15 percent in 2012. Checks are down, but not out, however. Although they made up a smaller share of the payments pie, they are declining from a dominant position, Heintjes wrote. "As check writing continued to decline, the number of checks that could be converted declined as well," he added. As a result, automated clearinghouse (ACH) transactions—many of which originate from the conversion of paper checks to ACH— decelerated, growing just 5.1 percent from 2009 to 2012, compared to 10.9 percent growth during the 2003 to 2012 period.

Meanwhile, payment cards continued to grow, accounting for two-thirds of consumer and business noncash payments in 2012. With annual growth of 15.8 percent, prepaid card payments grew the fastest of all noncash payments.

To learn more about key trends in the U.S. payments system, be sure to read the full article in the first 2014 issue of EconSouth.

Headline News from PaymentsNews.com - April 24, 2014

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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!

April 23, 2014

Headline News from PaymentsNews.com - April 23, 2014

On the Web:

  • SATOSHI'S REVOLUTION: How The Creator Of Bitcoin May Have Stumbled Onto Something Much, Much Bigger - Business Insider - ""For the first time, two people can exchange a piece of digital property, without any prior relationship, and in a secure way, over the Internet," Jeff Garzik, one of Bitcoin's core developers..."
  • Africa’s Tech Edge - The Atlantic - "How the continent's many obstacles, from widespread poverty to failed states, allowed African entrepreneurs to beat the West at reinventing money for the mobile age..."
  • It's Time for the Industry to Embrace Phased-In, Same-Day ACH - American Banker BankThink (Pat Thelen) - "As an industry, we're at a crossroads on whether to evolve or be left behind. If we choose not to evolve, we risk becoming irrelevant."
  • Beyond their breach - BillGuard Blog - "At this point, we might as well walk around with our credit card numbers plastered on our foreheads."
  • The Mobile Security Journey at Wells Fargo - Bank Systems & Technology - "With mobile adoption growing so fast and providing a constant touchpoint with customers (Wells’ mobile customers log in an average of 13 times each day), embedding security, without hurting the customer experience, is a top priority for the bank, Ajami shares."

On the Wires:

  • IDC Financial Insights Unveils Results from 2014 Consumer Payments Survey - "After several years of growth, the market for 'alternative' payment methods is now entering a period where adoption gains may come more slowly and where simply providing an alternative isn't enough. Instead, providers need to offer products that add value beyond the payment," said James Wester, practice director for Worldwide Payment Strategies and the author of the report.
  • Domino's Pizza® Now Accepting Payment via Google Wallet - "Google Wallet is a great technology that allows customers even more flexibility and convenience when it comes to paying for their Domino's orders."
  • Digital River Extends Its SMB Payments Solution to U.K. Merchants - "The solution offers small and medium enterprises, commerce providers, systems integrators and developers turn-key access to credit card processing capabilities for Visa, MasterCard and Maestro cards in Euros and Pound Sterling."
  • 2Checkout Appoints Shawn Budde as CEO - "Mr. Budde has more than 25 years of experience in the finance industry including executive roles at Citibank and Capital One; data analytics experience at Sears Holdings; and as co-founder and President at ZestFinance, a VC-backed technology company."

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!

April 22, 2014

Headline News from PaymentsNews.com - April 22, 2014

On the Web:

  • 10 Questions: Jeremy Allaire, founder and CEO, Circle - Fortune - "The company aims to make Bitcoin simpler, safer, and easier to use. In light of recent controversy around the virtual currency -- particularly around companies that have failed and lost clients' money -- Allaire is taking his time to make sure Circle will be legitimate and regulated."
  • Tokens and Traditionalists - Drop Labs (Cherian Abraham) - "However with HCE I would go beyond NFC – as finally there is a way to decouple the credential from the radio – and look beyond where the credential is stored, and even how it is presented – including other legitimate use-cases such as QR and BLE alongside of NFC."
  • Verizon Data Breach Report: Payment-Card Theft Can Be Avoided at Little Cost - Wall St. Journal - “It’s not necessarily about spending more money. It’s about doing the right things,” said Chris Porter, one of the report’s authors and a managing principal at Verizon’s Cyber Intelligence Center.
  • Facebook Now Powers More Than Half Of All Social Logins - "According to the latest data from social login service Gigya, Facebook remains the absolute market leader here and now powers more than 51 percent of all social logins in North America."
  • Review: Loop mobile wallet - Fortune - "Loop is a brilliant idea, and most importantly, it works. But the fob is better as a proof of concept than a daily companion, and for that reason, only enthusiasts will find today's system worth the expense."
  • Former Citi Executive Sanjiv Das to Join First Data - Wall St. Journal - "Sanjiv Das, who served as chief executive of CitiMortgage from 2008 to 2013, has taken the role as First Data's chief of staff and is joining the company's management committee,"

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!

April 21, 2014

American Express Expands Serve Distribution to Walmart

American Express announced that American Express Serve, its full service reloadable prepaid account, will be available for purchase at 4,100 Walmart stores nationwide. The Walmart stores will also become a part of Serve’s free cash reloading network - extending the network across 19,500 U.S. Walmart, CVS/pharmacy®, and participating 7-ELEVEN® locations.

By offering American Express Serve alongside Bluebird at Walmart, we’re expanding our portfolio of products to meet the needs of more Walmart shoppers,” said Dan Schulman, group president, Enterprise Growth at American Express.

“Bluebird is a great option for the “unhappily banked” who are looking for a true alternative to the fees and hidden charges often associated with debit and checking. With Serve, our full service reloadable prepaid account, we can now provide the nearly 70 million Americans who are unbanked or underbanked1 a simple and affordable way to move and manage their money.”

According to Aite Group, the addition of 4,100 Walmart stores across the U.S. to the American Express Serve and InComm free cash reload network makes it the largest network in the U.S.

Headline News from PaymentsNews.com - April 21, 2014

On the Web:

  • Mobile-Payments Startup Square Discusses Possible Sale - Wall St. Journal - "With losses widening and cash shrinking, representatives of mobile-payments startup Square Inc. have discussed a possible sale to several deeper-pocketed rivals, according to people familiar with the matter."
  • Facebook: Taking on PayPal with socially useful banking - The Independent (UK) - "As a new entrant to the financial-services marketplace, Facebook therefore has a huge advantage. It remains the go-to social network which gives it instant access to potentially millions of fed up UK bank customers."
  • The plot to kill the password - The Verge - "Since 2012, a group called the FIDO Alliance has been working on that standard, building a bridge between hardware projects like Samsung’s fingerprint reader and the online services they’re connecting to."
  • 8 Tools to Send Messages to Shoppers Based on In-Store Movements - StreetFight - "Here are eight tools that merchants can use to send offers or promotions based on their customers’ real-time indoor movements."
  • Using Bitcoin to Build a Better Common Law - The Umlaut - "The basic idea is to use multiple addresses per private key in order to make it harder to hijack your bitcoins."

On the Wires:

  • NetSpend, Western Union to Introduce Co-Branded Prepaid Card in the U.S. - “Combining the strengths of Western Union’s global brand and expertise in moving money with NetSpend’s deep prepaid knowledge and unique product capabilities, creates an incredible opportunity for us to better serve an underserved market,” said Dan Henry, chief executive officer of NetSpend.

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!

April 18, 2014

Headline News from PaymentsNews.com - April 18, 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!

April 17, 2014

Walmart Introduces New Money Transfer Service Powered by Ria

Walmart 140pxWalmart has announced a new Walmart-2-Walmart Money Transfer Service - calling it a "new low-cost service allows customers to transfer money to and from more than 4,000 Walmart stores nationwide for up to 50 percent less than similar offerings on the market."

After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution,” said Daniel Eckert, senior vice president of services for Walmart U.S.

“Walmart-2-Walmart brings new competition and transparent, everyday low prices to a market that has become complicated and costly for our customers. We’re doing what we do best - launching a new service that challenges the status quo and drives down prices for our customers.”

Walmart says the new service "offers a clear fee structure with just two pricing tiers: customers can transfer up to $50 for $4.50 and up to $900 for $9.50. Competitive offerings often include 10 or more fee tiers and charge up to $70 for transferring less than $1,000. Money transfers above $50 make up the majority of transactions in the U.S."

Walmart-2-Walmart is powered by Ria, a Euronet subsidiary and a global provider of money transfers. Ria is the licensed money transfer operator for all Walmart-2-Walmart transactions, and Walmart acts as the authorized agent of Ria.

Headline News from PaymentsNews.com - April 17, 2014

On the Web:

On the Wires:

  • MasterCard Board of Directors Recommends Two New Candidates for Election - “The world continues to get smaller and technology opens new doors every day,” said Richard Haythornthwaite, Chairman of the Board, MasterCard. “MasterCard is advancing to meet consumer, business and societal needs in an increasingly digital world, while maintaining a focus on convenience and security. Merit and Julius’ experience and insights will add to and complement our existing Board as we pursue this vision.”
  • Warburg Pincus To Acquire Electronic Funds Source - "Warburg Pincus ... today announced it has entered into a definitive agreement whereby one of its affiliates will acquire 100% of Electronic Funds Source LLC, a leader in innovative corporate payments solutions, from an investor group including First Data Transportation Services, Inc., CTP Holdings LLC and FJ Management Inc."
  • Lending Club Acquires Springstone - "As part of the financing of this transaction, Lending Club also announced the closing of an equity capital raise. Investors in the $65 million round included funds and accounts managed by T. Rowe Price Associates, Inc., Wellington Management Company, LLP, BlackRock and Sands Capital."
  • Worldpay Launches China Sales Office - "The Shanghai office is headed up by Tang Kok San, VP – Business Development China, and will offer all of Worldpay’s e-commerce customer-facing functions, including relationship management and corporate support."

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!

April 16, 2014

Headline News from PaymentsNews.com - April 16, 2014

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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!

April 15, 2014

Headline News from PaymentsNews.com - April 15, 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!

April 13, 2014

Headline News from PaymentsNews.com - April 14, 2014

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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!

April 11, 2014

Headline News from PaymentsNews.com - April 11, 2014

On the Web:

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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!

April 10, 2014

Fundbox Raises $17.5MM Series A with a Focus on SMB Cash Flow Acceleration

Fundbox Logo 140pxFundbox has announced it has closed $17.5MM in funding led by Khosla Ventures to "fill the void left by banks and credit companies, and fix the small business economy using data science."

Other investors include Ron Conway’s SV Angels, Vikram Pandit, former CEO of Citigroup, Tom Glocer, former CEO of Thomson Reuters, Jay Mandelbaum, former Head of Strategy and E-commerce at JP Morgan Chase, Emil Michael, SVP of Business at Uber, Shlomo Kramer, CEO Imperva, David Krell, Chairman ISE and several others. The investment will be used to scale the data operations and product, increase marketing outreach efforts, expand the Fundbox San Francisco headquarters, and make additional strategic hires in the Bay Area.

We’ve identified an unprecedented opportunity to bring data-driven innovation to a critically underserved and broken market, focused initially on allowing small businesses to immediately clear outstanding invoices and improve cash flow by accelerating payments,” said Fundbox Founder and CEO Eyal Shinar.

“However, the vision behind our company is much larger, as our proprietary engine can dramatically disrupt and modernize entire industries built around analyzing data. We are starting with small business credit because this is where we can have a significant and immediate positive impact, but the future is boundless.”

Fundbox says it processes tens of thousands of invoices daily, offering small business owners the ability to fix their cash flow by advancing payments for unpaid invoices. This effectively eliminates the net plus 30, 60, 90-day problem from which small businesses suffer.

In order to use Fundbox, a small business owner connects with one-click to their accounting and bookkeeping apps, including Quickbooks, Xero, or Freshbooks, on Fundbox.com. The Fundbox risk engine assesses the customer’s network and invoices for risk automatically and instantly. The user can then view all outstanding invoices through their Fundbox account and choose which invoices to clear.

Headline News from PaymentsNews.com - April 10, 2014

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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!

April 09, 2014

Headline News from PaymentsNews.com - April 9, 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!

April 08, 2014

Meet the Glenbrook Team on Thursday, April 17 in Menlo Park, CA

GP Logo Horizontal squareWe're holding an informal meet up with the whole Glenbrook team on Thursday evening, April 17 in Menlo Park. If you're in the area, please RSVP and plan to stop by and join us.

Eventbrite - Glenbrook Meet Up

Headline News from PaymentsNews.com - April 8, 2014

New on PaymentsJobs.com:

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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!

April 07, 2014

Musings about Bitcoin

PaymentsViews logo 140pxIn an article titled "Bitcoin is like...", Glenbrook's Carol Coye Benson muses about comparing bitcoin to the introduction of the printing press:

The printing press freed the written word from the control of the clergy, and let the masses have direct access to books, to the Bible, to politicians’ screeds. Bitcoin has the potential to free money from the control of bankers, central and otherwise."

What do you think? Carol welcomes your comments!

Headline News from PaymentsNews.com - April 7, 2014

On the Web:

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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!

April 04, 2014

First Data Names Michael Manos as Chief Technology Officer

First data logo 140x60pxFirst Data has announced the appointment of Michael Manos as chief technology officer. Manos will be responsible for First Data's global technology infrastructure, be based in Atlanta, and report to company president, Guy Chiarello.

Mike is a key addition to our world-class leadership team and his knowledge and expertise enhances our ability to provide our clients with cutting-edge technology,” said Chiarello.

“He is a seasoned technology management executive with a proven track record of successful revenue generation. Mike’s leadership will be invaluable as we continue to improve our financial position and seek to grow First Data’s business as the global leader and most trusted, reliable and secure network.”

Manos joins First Data from AOL Inc., where he served as CTO of AOL’s Brand Group. Prior to joining AOL, he was a vice president at Nokia where he was responsible for the global operations, consolidation and restructuring of service operations for commercial-facing products and services.

Headline News from PaymentsNews.com - April 4, 2014

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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