FOR 45 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE

DECEMBER 2015 / ISSUE 1076

Largest Maestro Issuers Worldwide

Top 150 Credit Card Issuers

Worldwide by Region

The 100 largest issuers of Maestro brand debit cards based on

purchases at merchants for calendar year 2014 are listed on page
10. The issuers represented 40 countries.

Based on Outstandings in 2014

> see p. 10

Issuers

Visa & MasterCard Outside the U.S. through 3Q 15

Region

Outstandings (Bil.)

> see p. 9

48

ASIA
PACIFIC

10

CANADA

ICBC
China Construction
Bank of China
Agricultural Bank
China Merchants
Bank of Commun.
China Minsheng

$542

ACI Worldwide Buys Pay.On

ACI Worldwide acquired Pay.On for $200 million in cash and stock
on November 4, 2015. Pay.On was a pioneer in sales support for
online merchants in Europe. It provides a gateway that payment

Square IPO on NYSE

34

EUROPE $163

29

LATIN
AMERICA

MID. EAST
AFRICA

26

UNITED
STATES

An initial public offering (IPO) on the New York Stock Exchange

(NYSE) of 31 million shares of Square Class A common stock
on November 19, 2015, raised $279.5 million. Square provides
> see p. 8

Omnichannel QR Code Payments for Large Retailers

OmnyPay has created an integrated QR code-based mobile loyalty,
rewards, and payment platform for large retailers whose consumers
will download a wallet app branded with the retailers service mark.
> see p. 5

Gemalto Brings Dynamic CVV to Mexico

All banks in Mexico are required by the Comisin Nacional
Bancaria y de Valores, the countrys banking regulator, to secure
online and mobile banking sessions with two-factor authentication.
> see p. 6

Mobile Payments in Poland

Blik is the domestic mobile payment service in Poland. Managed
by Polish Payment Standard (PSP), it was formed by Alior Bank,
Bank Millennium, Bank Zachodni WBK, ING Bank Slaski, mBank,

Fast Facts
ID Tech POS Hardware
CPI Card Group IPO on Nasdaq and TSX
RS2 Card Management Software

2015 HSN Consultants, Inc. THE NILSON REPORT

U.K.
$32.8
Turkey
Russia
$32.8
Spain $14.0
Greece $4.6
Germany $3.5
France $2.9

Brazil $58.5
Venezuela $27.4

$94.8

$119

$5
$705

Chase
BofA
Amex
Citbank
Cap. One

$129.6
$100.2
$93.8
$82.3
$72.7

2015 The Nilson Report

Top Credit Card Issuers Worldwide

The 150 largest issuers of credit cards based on
outstanding receivables at year-end 2014 are listed on
page 11. Outstandings were tied to American Express,
Diners Club, Discover, JCB, MasterCard, UnionPay, Visa,
and domestic general purpose credit cards.

> see p. 7

24
5
7
12

$59.6
$53.5
$43.6
$36.3
$35.7
$27.4
$27.4

$78

> see p. 6

INSIDE

$373.0

China

MasterCard purchase volume outside the U.S. accounted for

63.33% of its global purchase volume of goods and services, up
from 61.65% for the same nine-month period in 2014. Purchase

CHARTS

> see p. 11

9

10
11

Visa & MasterCard Worldwide

through 3Q 2015 vs. 3Q 2014
Largest Maestro Issuers Worldwide 2014
Largest Credit Card Portfolios Worldwide 2014

VISIT US ONLINE AT WWW.NILSONREPORT.COM

FAST
FACTS
DECEMBER 2015
ISSUE 1076

Objective,
independent
reporting for
45 years.
No paid
advertising.
No sponsored
content of
any kind.
Ever.

AMERICAN EXPRESS has expanded the free cash

reload network for eligible prepaid Serve Card customers
to include Dollar General and Rite Aid locations. The total
number of outlets exceeds 45,000 and includes
CVS/pharmacy, Walmart, and participating 7-Eleven
locations. Stefan Happ is Chief Commercial Officer,
Enterprise Growth at American Express, (212) 640-2000,
stefan.b.happ@aexp.com, www.americanexpress.com.
TARGET has agreed to pay another $39.4 million to banks
over the retailers 2013 data breach that resulted in stolen
payment card data being used to make fraudulent transactions. MasterCard card issuers will receive $19.1 million,
and a separate group of credit unions and community banks
will receive $20.3 million. Previously, Target agreed to pay
Visa issuers $67 million.
NORDSTROM now offers its customers the ability to
create custom prepaid eGift cards using a large selection of
Nordstrom-designed faceplates, artwork, and personalized
messages. The eGift card is delivered in a virtual Nordstrom
silver envelope. The technology is available through CashStars cloud-based platform. Ben Kaplan is CEO at CashStar,
(207) 549-2222, bkaplan@cashstar.com, www.cashstar.com.
Sean Burrow is Director, Gift Card at Nordstrom,
(206) 454-2073, sean.m.burrow@nordstrom.com,
www.nordstrom.com.
JCBS J/Smart contactless payment application identifier
has been certified for EMV chip card acceptance in the U.S.
by Global Payments, the 8th largest U.S. acquirer.
Dan Skaling is EVP at JCB USA, (213) 896-3719,
dan.skaling@jcbusa.com, www.jcbusa.com.
VANTAGESCORE SOLUTIONS reports that more than
6 billion VantageScore credit scores were used in the
12-month period from July 1, 2014, through June 30, 2015,
a 100% increase over the previous 12-month period.
VantageScore credit scores are used by 7 of the 10 largest
financial institutions in the U.S. Barrett Burns is CEO,
(203) 363-2161, barrettburns@vantagescore.com,
www.vantagescore.com.

JETPAY, which provides card acceptance processing and

support services to 11,000 merchants, now offers its customers software from Hybrid Business Services that
automatically calculates the merchants total cost of accepting card payments. Merchants can use the calculation to
offer their customers a discount if they pay with cash.
Peter Davidson is Vice Chairman at JetPay, (484) 324-7982,
peter.davidson@jetpaycorp.com, www.jetpaycorp.com.
Jeff Moskowitz is CEO at Hybrid Business Services,
(323) 999-4427, jeff@hybridsvcs.com, www.hybridsvcs.com.
FIRST DATA is now the preferred provider of cybersecurity
and payment processing services to NCRs customers in the
grocery, petroleum, and convenience store industries. NCR
will be a preferred provider of ATM hardware and services
to First Datas client base of more than 4,000 financial institutions. Jimmy Frangis is GM, Payments & Security at NCR,
(770) 688-3064, jimmy.frangis@ncr.com, www.ncr.com.
Guy Chiarello is President at First Data, (212) 515-3171,
guy.chiarello@firstdata.com, www.firstdata.com.
STOCKPILES prepaid card is available at select U.S.
retailers through Blackhawk Network in denominations of
$25, $50, and $100. The cards can be redeemed online for
stock or ETFs, including commodity ETFs (gold, coffee, cocoa)
and Index ETFs (NASDAQ, S&P 500). Customers can open a
brokerage account within minutes and get fractional shares
of stock. David Tate is SVP, Products and Marketing at
Blackhawk Network, (925) 226-9990, david.tate@
bhnetwork.com, www.blackhawknetwork.com. Dan Schatt
is CCO at Stockpile, (415) 705-1374, dan@stockpile.com,
www.stockpile.com.
ETHOR, a provider of point-of-sale integration services, has
implemented a new loyalty middleware specification
created by MasterCard that will enable mobile applications
to offer a seamless connection between payment, promotions, and loyalty redemption. Gary Ziegler is CEO at eThor,
(650) 933-3332, gziegler@ethor.com, www.ethor.com.
James Anderson is EVP, Digital Payments at MasterCard,
(917) 408-2862, james_anderson@mastercard.com,
www.mastercard.com.

Conferences & Seminars

7th Annual Healthcare Payments Innovations 2016: January 20-21,
2016. The Phoenix Marriott Tempe at The Buttes, Tempe, Arizona.
Estimated attendance: 150. Cost for the two-day conference is $995$1,895. Subscribers to The Nilson Report will receive a $300 discount. (Use code NILSON300.) Contact Aron Barkan at Strategic
Solutions Network, (561) 674-0082, aron@strategicsolutionsnet.com.
Register at www.hcpaymentsinnovations.com/.

2
1

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Merchant Payments Ecosystem 2016: February 16-18, 2016. The

InterContinental, Berlin, Germany. Estimated attendance: 600. Cost for the
three-day conference is $2,200. Subscribers to The Nilson Report will
receive a 20% discount. (Use code NR-MPE2016, only applicable on
attendance fee and only prior to registering.) Contact David Vesely at
Empiria Group, 421 (245) 248-931, david.vesely@empiriagroup.eu.
Register at www.merchantpaymentsecosystem.com.

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on

iti
Seventh Ed

THE 2ND U.S. CIRCUIT COURT OF APPEALS IN NEW YORK upheld

a lower court ruling made earlier this year that American Express, Citigroup,
and Discover Financial Services did not violate the Sherman Antitrust Act by
requiring cardholders to submit to arbitration to settle disputes. By requiring
arbitration, payment card issuers avoid class action lawsuits. In 2010, Bank of
America, Capital One, Chase, and HSBC settled litigation by agreeing to drop
arbitration clauses in cardholder agreements for 3 1/2 years.

Largest
rs
Card Iasnsd ue
uirers
q
c
A
t
n
a
h
Merc
BARCLAYCARD in the United States is offering the Barclaycard Cash7th Edition

Figures
include cards
in circulation
and spending
for

credit
Over 1,000* Card Issuers
from
115 countries in all world regions
& debit
*includes over 700 outside the U.S.
card
issuers

Forward World MasterCard. Cardholders receive 1.5% cash back on every

purchase and a 5% redemption bonus every time they redeem points for cash
back. Cash can be deposited to a bank account, credited on a card statement,
or provided in a prepaid MasterCard card. Rachana Bhatt is Head of Branded
Cards at Barclaycard US, (302) 255-8314, rbhatt@barclaycardus.com,
www.barclaycardus.com.

275* Merchant AcquirersWorldwide

ion

Publicat
on Report

from 65 countries in all world regions a 2015 Nils

*includes over 190 outside the U.S.

THE CITY OF SAN FRANCISCO is suing American Express in San

Francisco Superior Court seeking a judicial declaration that Amexs rules for
merchant card acceptance violate Californias Unfair Competition Law. Case
No. CGC-15-548854: People of the State of California, ex rel. Dennis Herrera
v. American Express Company et al., was filed November 6, 2015.

uction
wing reprod
ucing or allo
report. Reprod ject to substantial fines.
com/special
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Asia/Pacific,
United States, Europe, Latin America,
Middle East/Africa, and Canada

Order Today

www.nilsonreport.com/specialreport
CARDFLIGHTS PCI-DSS Level 1 compliant gateway for mobile payments
has been certified by TSYS to accept EMV chip card transactions.
Derek Webster is CEO at CardFlight, (646) 3389-4450, derek@cardflight.com,
www.cardflight.com. Craig Ludwig is Head of Products for TSYS Merchant
Services Segment, (480) 308-1919, cludwig@tsys.com, www.tsys.com.
THE IOWA COURT OF APPEALS ruled November 25, 2015, that Capital
One did not violate an Iowa debt collection law by collecting debt without
registering with the state as a debt collector.
SYNCHRONY FINANCIAL has completed its separation from General
Electric. S&P Dow Jones Indices added Synchrony Financial to the S&P 500
after the close of trading on November 17, 2015. Margaret Keane is CEO at
Synchrony Financial, (203) 585-6152, margaret.keane@
synchronyfinancial.com, www.synchronyfinancial.com.
FINANCIAL SERVICES INFORMATION SHARING AND ANALYSIS
CENTER (FS-ISAC) has made available a best practices guide for financial
services companies working to improve their operational continuity and
reduce risks associated with a destructive cyberattack. An executive summary
is available upon request. A more detailed paper is available at the Financial
Services Sector Coordinating Council website.
2015 HSN Consultants, Inc. THE NILSON REPORT
HSN Consultants, Inc. 2015 THE NILSON REPORT

PAYONEER, provider of a Web-based platform that facilitates global

business-to-business payments including business-to-individual trader transactions, will be used by Amazon for cross-border payments to sellers from 24
countries who sell on marketplaces in the U.S., Spain, France, Italy, Germany,
and the U.K. Upon registration, sellers receive online accounts that can
collect Amazon disbursements, and that provide access to these disbursements through a local bank account or a Payoneer MasterCard. Scott Galit is
CEO at Payoneer, (646) 308-1300, scott@payoneer.com, www.payoneer.com.

Management Changes
Merton Smith has been appointed Vice President EMEA,
Sales & Business Development Digital Payments at Proxama,
44 (203) 668-2888, merton.smith@proxama.com. Robert Miskin has
been appointed Managing Director, Europe, Middle East and Africa
at Geoswift, 44 (207) 960-6888, robert.miskin@geoswift.com.
Brian Radin has been appointed Chief Revenue Officer at
CloudPay, (919) 322-5800, brian.radin@cloudpay.net. David Butler
has been appointed Vice President of Operations at CreditCall,
44 (117) 930-4455, david.butler@creditcall.com. Gregory Lambertie
has been appointed Vice President Corporate Strategy & M&A at
Ingenico, 33 (1) 5801-8323, gregory.lambertie@ingenico.com.
Brad Petzer, CFO at Monitise has resigned. Raghu Malhotra has
been appointed President, Middle East and Africa at MasterCard,
971 (4) 391-4200, raghu_malhotra@mastercard.com. Jim Jones,
most recently CEO at AccountNow, has joined Qualpays board of
directors as Executive Chairman, (650) 388 5250, jimjones@
qualpay.com. Himanshu Patel has been appointed Chief Financial
Officer at First Data, (212) 515-3165, himanshu.patel@firstdata.com.

DECEMBER
20152015
/ ISSUE
10761076
/ THE
NILSON
REPORT
NOVEMBER
/ ISSUE
/ THE
NILSON
REPORT

23

AMADIS, a provider of software development and consulting services for

secure electronic payments, has formed a technical partnership with FIME to
support EMV payment terminal testing and services. Emmanuel Haydont is a
Partner at Amadis, (514) 299-8914, eh@amadis.ca, www.amadis.ca.
Vincent Poty is VP, Strategy and Marketing at FIME, 33 (1) 4198-4861,
vincent.poty@fime.com, www.fime.com.

SEQR will use Dwollas payment platform and infrastructure to provide

peer-to-peer payments for its SEQR digital payment service set to launch in
the U.S. in the first quarter of 2016. Peter Fredell is CEO at Seamless,
46 (8) 5648-7824, peter.fredell@seamless.se, www.seamless.se.
Bob Rutherford is Director of Strategic Partnerships at Dwolla,
(515) 280-1000, bob@dwolla.com, www.dwolla.com.

WIRECASH gives U.S. residents online access to multiple money transfer,

bill payment, and mobile telecom top-up providers to send money to
recipients in over 100 countries. A new partnership with Cuallix lets U.S.
senders pay bills for utilities, financial services, taxes, telephone, cable, and
Internet in Mexico instead of sending money to a family member.
Logan Lemberger is VP of Business Development at WireCash,
(323) 977-9473, loganl@wirecash.com, www.wirecash.com.

MYPINPADS technology for multifactor authentication of transactions

originating from unsecured touchscreen devices such as mobile phones and
tablets will be available to financial institutions through a 5-year agreement
with VocaLink. Last year VocaLink processed over 10 billion transactions.
Philip King is CEO at myPINpad, 44 (203) 289-6728, philipk@mypinpad.com,
www.mypinpad.com. Sara Parker is Product Director Link ATM Services at
VocaLink, 44 (203) 818-4521, sara.parker@vocalink.com, www.vocalink.com.

B2 PAYMENT SOLUTIONS, which distributes and supports UL products in

North America, has delivered ULs Brand Test Tool to Chase Commerce
Solutions, the largest U.S. merchant acquirer. Mitchell Scott is
Executive Director at Chase Commerce Solutions, (813) 354-4126,
mitchell.scott@chase.com, www.chasecommercesolutions.com.
Bruce Murray is President at B2 Payment Solutions, (416) 730-9827 x101,
bruce.murray@b2ps.com, www.b2ps.com.

JIFFY, a person-to-person mobile payment service supported by 50 banks in

Italy, is expanding to Germany through a partnership between SIA and GFT
Technologies. GFT is a Germany-based IT services and consulting company.
SIA is a payment service provider in Italy that handles Jiffy transactions.
Cristina Astore is Head of SIA North West Europe, 39 (02) 6084-2720,
cristina.astore@sia.eu, www.sia.eu. Bernd Kohl is Executive Director at
GFT Germany, 49 (6196) 969-2779, bernd-josef.kohl@gft.com, www.gft.com.

COSMOS CO-OPERATIVE BANK, INDIA will replace its legacy payment

platform with BPC Banking Technologies SmartVista suite of card management products for debit and prepaid cards as well as ATM and POS
management. Rajan Narayan is Managing Director Asia-Pacific at BPC
Banking Technologies, (65) 6423-0313, narayan@bpcbt.com, www.bpcbt.com.
Vasant Manwadkar is CIO at Cosmos Bank, 91 (90) 1107-0058,
vasant.manwadkar@cosmosbank.in, www.cosmosbank.com.

IZICAPS merchant analytics, card-linked marketing, and customer loyalty

software will be integrated into Ingenico Groups Telium Tetra products.
Reda El Mejjad is Founder & President at Izicap, 33 (6) 3533-2827,
r.elmejjad@izicap.com, www.izicap.com.

YAPITAL, a QR code-based mobile and online payment service operating in

Germany and Luxembourg, will shut down on January 31, 2016. Marc Berg
is Executive Director, 49 (4060) 590-0600, marc.berg@yapital.com,
www.yapital.com.
GALITT has published a white paper titled The Internet of Things (IoT),
An Innovative Approach to the Payment Experience. The paper focuses on
wearables such as wristbands and watches and how the IoT will bring added
value to merchants, financial institutions, and all stakeholders. The paper is
available from the company website: www.galitt.com.
VISA CHECKOUT is now available in Brazil. The first merchant is
Futebolcard, a service that lets soccer fans purchase tickets for games in
12 different stadiums. Visa Checkout, which lets online shoppers make
purchases using only their username and password, is available in 16
countries. More than 7 million cardholders use the service, which is offered at
250,000+ online merchants. Percival Jatoba is VP, Products at Visa do Brasil,
55 (11) 2102-0077, pjatoba@visa.com, www.visa.com.br.
PREPAID FINANCIAL SERVICES, an e-money institution, prepaid card
issuer, BIN sponsor, program manager, and acquirer, sold 5% of its equity
for $3.78 million (2.5 mil.) to an unnamed investor. PFS manages prepaid
card programs in 23 countries. Noel Moran is CEO, 44 (207) 534-8040, noel.
moran@prepaidfinancialservices.com, www.prepaidfinancialservices.com.

4
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BELL IDS HCE: NFCs Missing Link eBook, first issued in 2014, has been
updated. It is aimed at mobile payment industry participants seeking better
understanding of HCE and tokenization. The eBook can be downloaded for
free at http://info.bellid.com/host-card-emulation-nfcs-missing-link.
SWIPP, a mobile payment app used by 800,000 people in Denmark, will
be integrated into the 30,000+ retailers using Verifone POS terminals in the
country. The app is based on Bluetooth Low Energy (BLE) technology. It allows
contactless payments from smartphones. Peter Bredgaard is CCO at Swipp,
45 (30) 100-599, pb@swipp.dk, www.swipp.dk. June Felix is President at
Verifone Europe, 44 (189) 527-5588, june.felix@verifone.com,
www.verifone.co.uk.
WIRECARD is offering boon, a mobile payment app, to consumers with NFCcapable smartphones that use the Android 4.4 operating system (or above) in
Germany, the Netherlands, Austria, and Belgium. Boon payments are funded
by a prepaid MasterCard issued by Wirecard Card Solutions, which can be
topped by bank transfer or credit card. Markus Braun is CEO at Wirecard,
49 (89) 4424-1415, markus.braun@wirecard.com, www.boonpayment.com.
GIESECKE & DEVRIENT provides the embedded smart card chip and
operating system used by Swiss watchmaker Swatch in China for its
contactless Bellamy payment watch. The Swatch Bellamy can be used for
contactless payments at the 5 million China UnionPay POS terminals in China
equipped with NFC readers. Stefan Auerbach is Group Executive Mobile
Security at Giesecke & Devrient, 49 (89) 4119-2213, stefan.auerbach@
gi-de.com, www.gi-de.com.
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ID Tech POS Hardware

ID Tech, which has manufacturing facilities in
Taoyuan, Taiwan, and Cypress, California, provides
PCI-certified card reader hardware on a subassembly
basis to companies including HP, Dell, and Micros.
Those same products, which
handle magnetic stripes,
chip cards (contact and
contactless), QR codes,
and signature capture,
are also sold as finished
goods under the ID Tech
brand to customers that
connect them to PC-based
POS systems and electronic cash
registers. ID Tech hardware can support
encryption of magnetic stripe data (including
EMV) inside the magnetic head or other equipment
for secure transport to acquiring processors.
ID Tech also makes contact and contactless
payment acceptance devices that use its proprietary
processing software for customers that install them

in kiosks and vending machines. It competes with

OTI and UIC. Last year ID Tech shipped more than
100,000 of those payment acceptance devices and
expects 2015 shipments to increase 15%.
In recent years ID Tech has also manufactured
and sold dongles for use with smartphones and
tablet devices. Those dongles can be magnetic
stripe or combination mag-stripe and chip readers.
They also use ID Tech software to handle payment
processing. Most are sold in the Americas under the
ID Techname.
ID Tech has the largest installed based of
contactless NFC readers in the world. It sells
hardware in more than 90 countries.
Eric Lecsene is VP, Marketing at ID Tech in Cypress,
California, (916) 203-4535, ericl@idtechproducts.com,
www.idtechproducts.com.

Omnichannel QR Code Payments for Large Retailers

from page 1

The app can reside on 95% of all

smartphones. OmnyPay aims to
lead consumers to purchases with
the payment mechanism preferred

by the retailers, led by private

label credit or debit cards. To give
consumers the same experience
in-app, at the physical point of
sale, and online, purchases are QR
code-based, not NFC.
Retailers are able to integrate
OmnyPay directly into their
existing rewards, loyalty,
and promotional programs.
Promotions can be automatically
delivered to the mobile app and
applied at the point of payment.
This eliminates coupons,
vouchers, or reward cards.
The OmnyPay QR code is only
an identifier of the sales channel.
2015 HSN Consultants, Inc. THE NILSON REPORT

All transactions
are tokenized
using host card
emulation. The
tokens change with
each payment.
OmnyPay is
not a consumer
acceptance
mark. It sells its
software-as-aservice technology
exclusively on a
white label basis.
Revenue is based
on transactions
processed.
Typically there is
no licensing fee.
All payments enter the retailers
POS system as if initiated by a
plastic card. OmnyPay can work
with a retailers private label credit
card issuer or debit card processor
without integrating with their
card management systems. It also

works with issuers

to immediately
provision new
accounts to the
consumers app.
OmnyPay sees
QR codes as the
quickest way to get
its technology to
most top retailers,
although its
software can also
work with SMS
texts, contactless
NFC, and Beacon
BLE. No POS
integration is
required because
the software connects
through a retailers back-end
system and is completely
cloud-based.
Ashok Narasimhan is CEO at
OmnyPay in San Francisco,
California, (650) 743-1090, ashok@
omnypay.net, www.omnypay.net.

DECEMBER 2015 / ISSUE 1076 / THE NILSON REPORT

Gemalto Brings Dynamic CVV to Mexico

from page 1

BBVA Bancomer, which

uses Gemalto servers, token
technology, and mobile SDKs
to satisfy that

to create a digital-only product

that limits spending to cardnot-present transactions. Last
year, card issuers in Mexico
incurred $480 million in losses
from 3million fraudulent
transactions, and 20% were
tied to ecommerce.
There are 1.3 million BBVA
Bancomer mobile banking
customers, and in the first three
weeks of availability 130,000
signed up to add the digital-only
Visa card. Payments for purchases

requirement, has decided to

leverage those assets to protect
ecommerce payments made from
its mobile wallet.
Gemaltos Dynamic Code
Verification
technology
3-digit CVVs are created every 2
replaces static
minutes within the mobile wallet.
3-digit card
verification value
are tied to existing plastic card
(CVV) codes with dynamic 3-digit
accounts. Most of the EMV chip
CVVs, created every two minutes
cards BBVA Bancomer issues are
within the BBVA Bancomer
supplied by Gemalto.
mobile wallet in the customers
The same enrollment server
mobile device. Currently, BBVA
BBVA Bancomer uses for
Bancomer mobile wallets
mobile and online banking
contain Visa primary account
authentications matches the
numbers (PANs), which are used

dynamic CVV to the digital-only

PAN. Gemalto can fully install
its Dynamic Code Verification
technology in three months.
Dynamic CVV transactions look
like any other card-not-present
EMV payments. Merchants do
not have to make any adjustments
to their ecommerce checkout
pages. Gemaltos Dynamic Code
Verification technology can also
work if issuers want to put existing
plastic card account numbers
into mobile wallets. Additionally,
Gemalto offers EMV-compliant
plastic cards that generate and
display dynamic CVVs.
Hugo Najera Alva is General
Director, Digital Banking at BBVA
Bancomer in Mexico City, Mexico,
52 (55) 5621-6960, hugo.najera@
bbva.com, www.bancomer.com.
Herv Bayle is Vice President,
eBanking for the Americas at
Gemalto in Mexico City, Mexico,
52 (55) 2122-1427, herve.bayle@
gemalto.com, www.gemalto.com.

ACI Worldwide Buys Pay.On

from page 1...

service providers (PSPs) and acquirers license and

use on a white label basis. The gateway features more

than 300 alternative payment methods and links to

card acquirers operating in more than 160 countries.
It does not acquire any transactions.
Pay.On gives ACI a card-not-present service
including in-app payments via mobile SDKs, oneclick checkout, and recurring billing to fill out its
suite of card-present processing services for acquirers
and large merchants. ACI has been providing
payment acceptance support for merchants and
acquirers for 20 years. It aggregates card-present
transactions, submits them directly to the networks,
fleet companies, check authorization firms, etc., or
delivers them to acquirers. ACI has more than 300

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direct connections to large merchants around the

world. Pay.On offers the possibility of expanding
that number with its customers in Europe. ACI also
handles chargebacks, manages PCI compliance,
provides encryption, and more. Six of the ten largest
merchant acquirers in the world are ACI customers.
The combined ACI/Pay.On service gives merchants
and PSPs the ability to deliver complete omnichannel
customer payment support in store, mobile, online
either licensing the software for on-premises use or
accessing it on a hosted, on-demand basis.

The gateway features more than

300 alternative payment methods.
ACI can also offer Pay.On customers access to its
Retail Decisions card-not-present fraud protection
service, as well as the ability to deploy a common
tokenization service capable of identifying repeat

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customers regardless of the channel they are using for

a particular purchase.
Pay.On will be integrated into ACI in phases.
It will not operate as a separate subsidiary or
stand-alone business unit. Eventually ACI will
have a single global system for card-present and
card-not-presentprocessing.

Lynn Holland is VP, Product Line Manager, UP Merchant

Retailer Solutions at ACI Worldwide in Naples, Florida,
(239) 434-3141, lynn.holland@aciworldwide.com,
www.aciworldwide.com.
Markus Rinderer is CEO at Pay.On in Munich, Germany,
49 (89) 452-300, markus.rinderer@payon.com,
www.payon.com.

CPI Card Group IPO on Nasdaq and TSX

cards, 376.2 million prepaid cards,
218.3 million prepaid phone cards,
3.0 million other telephone cards,
and 269.1 million nonpayment
cards in 2014, providing services
to more than 3,200 card issuers.
For the first 9 months of 2015
net income was $33.2 million,
up 301% from the same period in
2014. Revenues of $280.5 million
were up 62%.

CPI Card Group (CPI),

the 5th largest payment card
manufacturer worldwide, raised
$150 million in its initial public

U.S. products include EMV

and non-EMV Visa, MasterCard,
Discover, and American Express
cards, as well as private label

offering (IPO) on October 9,

2015 on Nasdaq in the U.S. and
the Toronto Stock Exchange
in Canada. As of December3,
CPI had an equity market
capitalization of $562 million.
CPI operates seven facilities
in North America and two in the
U.K. The U.S. debit and credit
segment manufactures payment
cards and offers personalization
services. It accounts for 55% of
CPIs total revenue. The U.S.
prepaid segment provides cards,
packaging, personalization, and
fulfillment services. It accounts for
19% of total revenue.

cards. It also owns an instant

card issuance system it sells to
bankbranches.
The U.K.
segment
U.S. credit and debit cards
manufactures
account for 55% of total revenue.
mostly private
label prepaid and
CPI is 57.5% owned by
loyalty cards for customers in the
Tricor Pacific Capital based in
U.K. and Canada. It also provides
Vancouver,Canada.
packaging, personalization, and
fulfillment services. The U.K.
Steve Montross is CEO at CPI
segment accounted for 13% of net
Card Group Inc. in Littleton,
sales in2014.
Colorado, (303) 345-2460,
CPI Card Group shipped
smontross@cpicardgroup.com,
387.1 million payment cards, 17.4
www.cpicardgroup.com.
million transportation/ticketing

Mobile Payments in Poland

from page 1...

and PKO Bank Polski in 2013.

Collectively over 1 million of their
customers have registered for
Blik since February of this year
300,000 of them actively use
theservice.
Consumers fund Blik
transactions through a deposit
account at their bank. PKO Bank
Polski customers can also use
a prepaid account. To initiate a
Blik payment they log in to their
2015 HSN Consultants, Inc. THE NILSON REPORT

mobile banking application, which

generates a one-time, 6-digit
code. The code is entered on
the PIN pad of a POS terminal
or ATM, or at an ecommerce
checkout page. Consumers receive

a payment notification from PSP

and confirm each transaction
in their app by entering their
handsetpassword.
More than 130,000 pointof-sale terminals (100,000
merchant outlets) of the 425,000
POS terminals in Poland can
handle Blik transactions. PSP
estimates 15% of Blik transactions
are generated at the point of sale,
> see p. 8

DECEMBER 2015 / ISSUE 1076 / THE NILSON REPORT

Mobile Payments in Poland

from page 7...

In the third quarter of this

year, Bank Zachodni WBK added
NFC-based payment functionality
to its mobile banking app using
host card emulation (HCE) and
tokenization technology, which
the bank developed in-house.
The payment feature is based
on Visa cloud-based payment
specifications. Customers sign in
to their banking application to
link a Visa or MasterCard debit
transfers. The remainder are cash
card to fund payments. Customers
withdrawals at the more than
do not need to log in to their
12,000 ATMs in Poland that are
mobile banking application to
Blik-enabled. Only customers of
initiate an NFC payment.
Bank Millennium and ING Bank
Last year ING Bank Slaski
Slaski can make P2P transactions
partnered with Orange, the second
now, but the other owner banks
largest mobile network operator
will offer that feature in 2016.
in Poland, to
launch an NFC
Blik uses technology Hewlett PackSIM-based
ard developed for PKO Bank Polski.
mobile payment
application
called NFC Pass. Over-the-air
Merchants integrate with
provisioning of Visa debit card
Blik through their acquirer.
credentials to a smartphones SIM
First Data and the eService
is provided by Morpho.
unit of EVO Payments, the two
Getin Bank will offer its mobile
largest merchant acquirers in
wallet, a standalone, NFC-based
Poland, have signed marketing
payment application for Android
agreements. Elavon will offer Blik
devices based on Visa cloud-based
to its merchants in the second
payment specifications, next year.
quarter of 2016.
HCE technology and payment
Blik uses technology Hewlett
card tokenization is provided by
Packard developed for PKO
Oberthur Technologies. A Visa
Bank Polskis mobile banking
debit card can be linked to fund
application called IKO, launched
payments. Getin will also offer
in 2013. Around 370,000 of the
Blik to its customers in the first
banks customers have signed up
quarter of 2016.
to use IKO since it was launched.
30% occur at 25,000 ecommerce
checkout pages, and 5% are
person-to-person (P2P) money

CONTACTS
Polish Payment Standard Grzegorz
Dlugosz is President in Warsaw,
Poland, 48 (696) 405-044, grzegorz.
dlugosz@polskistandardplatnosci.pl,
www.polskistandardplatnosci.pl.
PKO Bank Polski Jakub Grzechnik is
Head of Mobile and Internet Banking
in Warsaw, Poland, 48 (22) 521-6277,
jakub.grzechnik@pkobp.pl,
www.pkobp.pl.
Bank Zachodni WBK Tomasz
Niewiedzial is Head of Multichannel,
Mobile, and Internet Banking in
Poznan, Poland, 48 (61) 856-4060,
tomasz.niewiedzial@bzwbk.pl,
www.bzwbk.pl.
ING Bank Slaski Mateusz Poznanski
is Executive Director of Retail
Banking in Warsaw, Poland,
48 (32) 357-8412, mateusz.poznanski@
ingbank.pl, www.ingbank.pl.
Visa Europe Sebastian Geldner is
Senior Manager of Mobile Strategic
Alliances in Warsaw, Poland,
48 (22) 630-6838, geldners@visa.com,
www.visaeurope.com.

PKO Bank Polski, ING

Bank Slaski, mBank, Raiffeisen
Polbank, Eurobank, and BPS plan
to offer contactless NFC-based
payments in their mobile banking
applications in 2016. Contactless
payments can be made at over
80% of POS terminals in Poland.

Square IPO on NYSE

from page 1...

proprietary card payment processing hardware

and software and related commerce services for
smartphones and tablets. The IPO valued the
company at $3.20 billion, considerably less than
what venture capital investors believed it was worth a
year before. By December 4, Squares stock price had
grown from $9 per share to $12, increasing its market

VISIT US ONLINE AT WWW.NILSONREPORT.COM

capitalization to $4.57 billion. Square had raised

$488 million in five venture funding rounds. About
8% of the companys shares were sold in the IPO.
From January 1, 2015 through September 30,
2015, Squares gross revenues were $892.8 million,
up 49% year-over-year (YOY). The gross payment
volume for those 9 months was $25.44billion,

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up 51.2% YOY. This excludes payments tied to

a discontinued contract with Starbucks as well
as Square Cash peer-to-peer money transfers.
Micromerchants had accounted for 88% of Squares
gross payment volume in the third quarter of 2011.
By the third quarter of 2015, that figure had fallen to
62%, as the company continued to expand services
to new industries. Nearly all of its more than two
million active merchant customers (at least five

sales annually) are in the U.S. with a small number

in Canada and Japan. Square has started to sign
merchants in Australia.
Adjusted net revenues of $317.6 million for the
first 9 months of 2015 were up 64% YOY. This figure
is adjusted to reflect a now discontinued contract to
process card payments at Starbucks-owned locations
in the U.S. Net income was negative $131.5 million,
> see p. 12

Visa & MasterCard Outside the U.S. through 3Q 15

from page 1...

transactions worldwide, up from

Debit cards issued outside the U.S.
52.32% in 2014.
generated 49.21% of MasterCards
MasterCard credit card
global debit card purchase
purchase volume on cards issued
transactions, up from 43.79%
outside the U.S. grew by 12.2%
in2014.
Debit card
purchase volume
Purchase volume outside the U.S.
for Visa cards
accounted for 60.9% of Visas total.
issued outside
the U.S. grew
compared to a 6.9% increase
10.3%. U.S. debit card purchase
for U.S.-issued cards. Purchase
volume grew 7.3%. Purchase
transactions on MasterCard credit
transactions on Visa debit cards
cards issued outside the U.S.
issued outside the U.S. were up
were up 11.7%. U.S. credit card
14.8%. Purchase transactions on
purchase transactions were up
Visa debit cards issued in the U.S.
8.1%. Credit cards issued outside
rose by 7.8%. Debit cards issued
the U.S. accounted for 75.49%
outside the U.S. generated 53.88%
of MasterCards credit card
of Visa debit card purchase
purchase transactions, up
from74.89%.
Visas credit card
purchase volume on cards
Dollar Volume (bil.)
Purch. Trans.
issued outside the U.S.
Brand/Type
Total
Chg.
Purchases Chg.
Cash
Chg.
(bil.)
Chg.
grew by 12.4%. Inside
Visa Credit
$2,777.06 11.0%
$2,583.56 12.0%
$193.50 0.6%
33.26 10.7%
the U.S. growth was
MasterCard Credit
$1,813.05 9.8%
$1,673.24 10.6%
$139.81 0.9%
21.83 10.8%
11.3%. However, purchase
CREDIT TOTAL
$4,590.11 10.5%
$4,256.80 11.4%
$333.31 0.0%
55.09 10.7%
transactions on Visa credit
Visa Debit
$4,647.43 7.2%
$2,545.99 9.1%
$2,101.44 5.1%
58.96 11.5%
cards issued inside the
U.S. grew 14.0%, while
MasterCard Debit
$1,552.64 16.3%
$803.29 15.6%
$749.35 17.1%
21.68 20.7%
growth outside the U.S.
DEBIT TOTAL
$6,200.07 9.4%
$3,349.28 10.6%
$2,850.79 8.0%
80.64 13.8%
was 9.0%. Credit cards
Visa Total
$7,424.49 8.6%
$5,129.55 10.5%
$2,294.93 4.6%
92.22 11.2%
issued outside the U.S.
MasterCard Total
$3,365.69 12.7%
$2,476.53 12.2%
$889.16 14.2%
43.51 15.5%
generated 64.17% of Visas
TOTAL
$10,790.18 9.9%
$7,606.08 11.1%
$3,184.09 7.1%
135.73 12.5%
credit card purchase
transactions, a decline
Figures are for January 1, 2015 through September 30, 2015. They include all consumer and commercial credit, debit, and
prepaid cards. Currency figures are in U.S. dollars. Change figures for dollar volume reflect a year-over-year comparison in
from 65.20% in 2014.
transactions outside the U.S.
accounted for 62.39% of its total,
up from 60.06%.
Visa purchase volume outside
the U.S., including Visa Europe,
generated 60.92% of its global
purchase volume, up from 60.47%
for the same nine-month period
in 2014. Purchase transactions
at merchants outside the U.S.
accounted for 57.59% of its total,
up from 56.98%.
MasterCard purchase volume
on debit cards issued in the U.S.
grew 7.7%. Outside the U.S. that
spending was up 26.2%. Purchase
transactions on MasterCard debit
cards issued outside the U.S. grew
35.6%. In the U.S. they grew 9.1%.

Visa & MasterCard Worldwide thru 3Q 2015 vs. 3Q 2014

local currency. Visa includes the sum of Visa Europe and Visa Inc. and includes Visa, Visa Electron, and Interlink brands.
MasterCard excludes Maestro and Cirrus figures.
2015 The Nilson Report
2015 HSN Consultants, Inc. THE NILSON REPORT

DECEMBER 2015 / ISSUE 1076 / THE NILSON REPORT

Largest Maestro Issuers Worldwide 2014

Rank

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

Issuer, Country

ING Netherlands, Belgium, France(1)

BBVA Provincial Venezuela
Commonwealth Bank Australia
ABN Amro Netherlands
Itau Unibanco Brazil
KB Kookmin Card South Korea
Banesco Banco Venezuela
BancoPosta Italy
Caixa Economica Federal Brazil
Sberbank Russia
Clydesdale Bank United Kingdom
Mercantile Banco Venezuela
UBS Switzerland
Banco Santander Brazil
Raiffeisen Schweiz Switzerland
Credit Agricole France
Deutsche Bank Germany
National Commercial Saudi Arabia
Banco de Venezuela Venezuela
Bancolombia Colombia
Bancaribe Venezuela
Credit Suisse Switzerland
NongHyup Bank South Korea
Shinhan Card South Korea
ANZ Bank New Zealand
Commerzbank Germany
Banco Santander Chile
Riyad Bank Saudi Arabia
Standard Bank South Africa
Volksbank Austria
Caixa Geral de Depositos Portugal
BNP Paribas Fortis Belgium
Absa Bank South Africa
SABB Saudi Arabia
Erste Bank Austria
Swedbank Sweden
Santander Bank Germany
Banco Davivienda Colombia
Banco Nacional de Credito Venezuela
Euro6000 Spain
Credit Mutuel France
Banco del Estado Chile
Banco de la Nacion Argentina
Ziraat Bankasi Turkey
Frankfurter Sparkasse Germany
OTP Bank Hungary
KEB Hana Card South Korea
Rabobank Netherlands
Swedbank Estonia
DZ Bank Germany

Purchase
Volume (mil.)

Cards
(000)

Rank

$45,958.7
$35,465.1
$29,809.3
$27,088.1
$23,571.0
$21,351.4
$20,461.5
$19,528.1
$16,941.8
$14,517.4
$8,503.8
$8,463.5
$8,408.6
$7,748.8
$6,901.2
$6,875.6
$6,874.1
$6,683.5
$6,376.4
$5,188.3
$4,698.3
$4,072.2
$3,687.7
$3,554.9
$3,516.6
$3,387.2
$3,185.9
$2,581.1
$2,465.3
$2,318.6
$2,118.8
$1,990.0
$1,970.7
$1,944.1
$1,938.9
$1,756.2
$1,737.5
$1,709.4
$1,708.3
$1,693.0
$1,537.1
$1,465.7
$1,404.0
$1,388.1
$1,334.5
$1,261.1
$1,060.2
$997.7
$996.4
$944.4

12,352
3,158
4,528
6,313
30,632
18,088
3,417
7,344
48,810
38,837
1,710
3,453
1,256
24,181
1,284
2,041
3,942
3,659
4,492
6,340
687
675
7,388
4,493
539
2,044
3,199
1,726
3,537
805
1,397
3,715
4,506
548
556
412
527
2,840
821
896
284
1,593
2,669
9,962
689
2,189
1,917
7,371
487
7,619

51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100

Issuer, Country

BFC Banco Fondo Comun Venezuela

Ahli United Kuwait
Akbank Turkey
PBZ Croatia
Borgun Iceland
BW-Bank Germany
Cartao BRB Brazil
RBC Financial Trinidad & Tobago
Belus Bank Belgium
Intesa Sanpaolo Card Italy
Santander Totta Portugal
Raiffeisen Bank Romania
Maduro & Curiels Netherlands Antilles(2)
Slovenska Sporitelna Slovakia
VakifBank Turkey
Banco Itau Chile
Banco Bicentenario Venezuela
BNL Gruppo BNP Paribas Italy
Banco Caroni Venezuela
Banco Comercial AV Villas Colombia
BRD Romania
National Bank Greece
Nuevo Banco de Santa Fe Argentina
T. Is Bank Turkey
BPH Poland
Mauritius Commercial Mauritius
Erste & Steiermarkische Croatia
Nordea Europe
PKO Bank Poland
KBC Bank Belgium
Nedbank South Africa
BIB Serbia
Banco Sotasa Venezuela
CIB Hungary
Swedbank Lithuania
BCR Romania
Abanka Vipa Slovenia
GE Money Czech Republic
Banco Security Chile
Erste Bank Hungary
Banco Corpbanca Colombia
Barclaycard Germany
Bank Zachodni WBK Poland
BMN Spain
CBC Banque Belgium
Alior Bank Poland
Banco Colpatria Colombia
PrivatBank Ukraine
Yapi Kredi Bankasi Turkey
Banka Koper Slovenia

(1) Also Germany, Italy, Luxembourg, Poland, Romania, Spain, Turkey. (2) And Curacao, Aruba, St. Maarten, Bonaire.

10

VISIT US ONLINE AT WWW.NILSONREPORT.COM

Purchase
Volume (mil.)

Cards
(000)

$903.4
$870.4
$826.8
$772.2
$744.2
$735.9
$700.8
$654.2
$648.6
$642.8
$637.1
$622.6
$570.5
$570.4
$567.0
$553.8
$518.9
$485.6
$480.6
$443.9
$437.8
$432.9
$428.3
$425.3
$410.1
$404.2
$387.5
$366.8
$325.3
$321.6
$321.1
$296.3
$296.3
$295.8
$284.8
$283.5
$257.8
$237.6
$228.9
$224.1
$221.7
$209.8
$208.6
$208.3
$193.9
$182.6
$176.7
$160.6
$155.1
$151.2

1,170
130
4,232
624
135
394
1,065
534
3,164
849
255
777
446
279
5,241
179
460
1,702
252
1,352
1,310
3,020
730
2,489
260
642
545
77
184
2,137
830
697
287
185
611
742
146
266
78
291
471
479
94
148
206
114
333
6,635
1,172
103

2015 The Nilson Report

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Largest Credit Card Portfolios Worldwide 2014

Rank

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

Issuer, Country

Outstandings
(bil.)
Rank

JPMorgan Chase U.S.

$129.57 51
Bank of America U.S.
$100.24 52
American Express U.S.
$93.82 53
Citibank U.S.
$82.30 54
Capital One U.S.
$72.66 55
ICBC China
$59.57 56
Discover U.S.
$56.13 57
China Construction China
$53.54 58
Bank of China China
$43.59 59
Agricultural Bank China
$36.25 60
China Merchants China
$35.73 61
Wells Fargo U.S.
$35.21 62
U.S. Bank U.S.
$32.88 63
Barclays U.K.
$27.66 64
Bank of Communications China $27.44 65
China Minsheng China
$24.02 66
Itau Unibanco Brazil
$22.32 67
China Guangfa China
$21.53 68
Barclays U.S.
$20.78 69
China Everbright China
$18.67 70
USAA U.S.
$17.78 71
Ping An China
$16.74 72
Mitsubishi UFJ Nicos Japan $16.32 73
TD Canada Trust Canada
$15.90 74
Synchrony Financial U.S.
$15.15 75
Banco Bradesco Brazil
$14.47 76
Lloyds Banking Group U.K. $14.24 77
Shinhan Card South Korea $13.69 78
RBC Royal Bank Canada
$13.04 79
China CITIC China
$12.28 80
Sumitomo Mutsui Japan
$12.15 81
Scotiabank Canada
$11.72 82
HSBC U.K.
$11.57 83
China Industrial China
$10.79 84
Credit Saison Japan
$10.48 85
MBNA U.K.
$10.47 86
CIBC Canada
$10.08 87
Commonwealth Bank Australia $9.73 88
Hyundai Card South Korea
$9.66 89
Shanghai Pudong Dev. China $9.61 90
KB Kookmin Card So. Korea $9.58 91
Navy FCU U.S.
$9.51 92
Tesco Bank U.K.
$9.47 93
Banco do Brasil Brazil
$8.53 94
Westpac Banking Australia $8.19 95
ANZ Banking Group Australia $8.18 96
RBS/NatWest U.K.
$8.16 97
Yapi Kredi Bankasi Turkey
$7.58 98
BMO Bank of Montreal Canada $7.34 99
Fed. Desjardins Canada
$7.18 100

Outstandings
(bil.)
Rank

Issuer, Country

Sberbank Russia
$7.17
Banco Nacl (Banamex) Mexico $7.15
Banco Santander Brazil
$7.03
Samsung Card South Korea $6.93
Banco de Venezuela Venezuela $6.68
Garanti Bank Turkey
$6.64
BBVA Bancomer Mexico
$6.33
Mercantil Banco Venezuela $6.09
PNC U.S.
$5.56
Akbank Turkey
$5.50
First Natl of Omaha U.S.
$5.29
Russian Standard Russia
$5.28
Natl Australia Australia
$5.25
Aeon Financial Serv. Japan $5.00
BBVA Provincial Venezuela $4.75
TD Bank U.S.
$4.73
Capital One Canada
$4.52
Cabelas WFB U.S.
$4.49
UC Card Japan
$4.34
Canadian Tire Canada
$4.27
T. Is Bank Turkey
$4.26
Lotte Card South Korea
$4.14
HSBC Hong Kong
$3.95
Citi Australia
$3.71
Finansbank Turkey
$3.65
Orient Corporation Japan
$3.53
Santander Cards U.K.
$3.44
Capital One U.K.
$3.43
Hua Xia China
$3.28
Toyota Finance Japan
$3.23
Caixa Economica Fed. Brazil $3.20
Cedyna Financial Japan
$3.18
KEB Hana Card South Korea $3.17
Banesco Banco Venezuela
$3.15
Hang Seng Hong Kong
$3.12
Fifth Third U.S.
$3.00
Carrefour France, Spain, Belg. $2.86
Banco Santander Mexico
$2.81
Credit One U.S.
$2.78
Nationwide Building Soc. U.K. $2.69
Banco Occidental Venezuela $2.67
Standard Bank South Africa $2.44
CaixaCard Spain
$2.39
NongHyup Bank South Korea $2.36
Citibank South Korea
$2.30
BB&T U.S.
$2.27
Banco Santander Chile
$2.15
Presidents Choice Canada
$2.15
Barclaycard Germany
$2.14
Banco Popular Spain
$2.11

101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150

Issuer, Country

Outstandings
(bil.)

Banco Santander Spain

$2.06
Kasikornbank Thailand
$2.01
Industrial Bank South Korea $2.00
Banco Santander Rio Argentina $1.99
Citibank Malaysia
$1.98
NewDay Cards U.K.
$1.94
Merrick Bank U.S.
$1.90
VakifBank Turkey
$1.88
BOC Credit Card Hong Kong $1.81
Absa Bank South Africa
$1.81
Banco Falabella Chile
$1.80
Alpha Bank Greece
$1.77
Natl Bank of Canada Canada $1.75
Virgin Money U.K.
$1.74
DenizBank Turkey
$1.71
Citizens Bank U.S.
$1.70
Banorte Mexico
$1.67
E. Sun Commercial Taiwan
$1.61
Pentagon FCU U.S.
$1.60
State Farm Bank U.S.
$1.57
Banco CSF Brazil
$1.57
HSBC Turkey
$1.56
Bancaribe Venezuela
$1.55
Tinkoff Credit Systems Russia $1.50
Nordstrom U.S.
$1.47
SunTrust Bank U.S.
$1.45
Citi Cards Japan
$1.44
Banco de Chile Chile
$1.43
Bancolombia Colombia
$1.42
Natl Bank of Greece Greece $1.41
Citibank Brazil
$1.41
Citibank Hong Kong
$1.40
Eurobank-Ergasias Greece
$1.39
Landesbank Berlin Germany $1.39
Maybank Malaysia
$1.35
HSBC Mexico
$1.32
Banco Exterior Venezuela
$1.31
Banco de Credito BCP Peru $1.31
Bankia Spain
$1.29
Regions Financial U.S.
$1.29
EnterCard Norway
$1.29
Woori Card South Korea
$1.26
Bank of Ireland Ireland
$1.23
ANZ Bank New Zealand
$1.22
Banco Davivienda Colombia $1.20
First Natl Bank South Africa $1.20
Banco Bicentenario Venez. $1.17
Banco Popular Puerto Rico
$1.16
Citibank Singapore
$1.14
Banco del Pacico Ecuador $1.13

Outstandings on general purpose cards as of December 31, 2014. American Express and Discover do not include third-party business.
2015 The Nilson Report
2015 HSN Consultants, Inc. THE NILSON REPORT

DECEMBER 2015 / ISSUE 1076 / THE NILSON REPORT

11

 2015 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly
prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

Square IPO on NYSE

from page 9...

which compares to negative $117.0

million for the same period a year
before. Earnings before interest, taxes,
depreciation, and amortization on an
adjusted basis were negative $35.0
million. This compared with negative
$57.0 million the prior year. Even
when Starbucks revenue and costs
are taken out, net income would still
reflect a loss of more than $100 million
through the first 9 months of its 2015 fiscal year.
Currently, 88% of Squares adjusted revenue is
generated by handling payments and providing
related commerce services. Beyond payment
processing, merchants have access to software
including Register, which lets them handle noncard
payments; Appointments, which lets them organize
client information and more; Analytics, which

is cloud-based information about

their businesss performance; and
Marketplace, which lets them
integrate apps from other companies
into their Square POS system. Also
available is a digital invoice product
that can be used to send bills and
collect payments, and Square Cash,
a smartphone-based money transfer
product for consumers.
The other 12% of Squares revenue comes
from financial services including cash advances
to merchants and payroll processing as well as
marketing services. Square Capital, the merchant
cash advance business, is mostly funded by outside
investors. So far, $300 million has been advanced.
Customer Engagement marketing support lets
merchants create offers and more.

RS2 Card Management Software

Multicurrency, multilingual
payment card management
software has been available

from RS2 since 1988. Customers

include Barclays Bank, which
owns 18.5% of RS2, First Data,
Global Payments, and OmniPay.
RS2 licenses its software directly
to large issuers and acquirers.
It can also offer itself as a third
party processor for all or some
card management services to
customers including e-money
license companies in Europe
focused on prepaid cards. Within
five years RS2 believes that most
of its business in Europe will be
for managed services.
RS2 is best known for its
settlement and reconciliation
engine, which has a consistent
user interface and database

12

worldwide. Payment service

directly or through partners. Large
providers (PSPs) to online
banks use RS2 when needing help
merchants find it easier to use
with new product development.
when managing international and
New projects include research
local-market-only payment cards
& development on blockchain
as well as local-market alternative
and cryptocurrency as well as
payment systems. Large
acquiring bitcoin transactions
multinationals use the system to
from merchants.
distribute merchant transactions
Radi Abd El Haj is CEO at RS2
to local acquirers, maximizing
Software in Neu-Isenburg,
their interchange income. PSPs
Germany, 49 (6102) 730-030, radi.
and acquirers can license only
el.haj@rs2.com, www.rs2.com.
the settlement
and reconciliation
Within five years most of its busimodule or use
ness will be for managed services.
it on a managed
servicebasis.
On the card issuing side,
Prior issues: 1070, 1057, 1029, 968,
much of RS2s new business is
963, 938, 935, 933, 918, 906, 905,
coming from prepaid issuers
861, 791, 782, 774, 773, 764, 754,
pursuing unbanked/underbanked
753, 751
consumers. RS2 works with users

VISIT US ONLINE AT WWW.NILSONREPORT.COM

David Robertson, Publisher

December 7, 2015

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