INSIDE:

FAST FACTS P 2-4 | MIURA CHIP & PIN DEVICE P 6 | U.S. BANKS NEW PREPAID CARD P 7 | WIRECARD SUPPORTS VISA/ORANGE NFC PARTNERSHIP P 7
CARDLINX ASSOCIATION FORMED P 9 | WEX FUEL CARD JOINT VENTURE IN EUROPE P 10

CHARTS: U.S. GENERAL PURPOSE CARDS YTD 3Q P 8 | PAYMENT INDUSTRY M&A SEPTEMBER 2013 P 9 | TOP 150 ACQUIRERS WORLDWIDE 2012 P 11
U.S. GENERAL PURPOSE CARDS THROUGH 3Q 13
There were 51.58 billion purchase transactions initiated by general
purpose credit and debit (including prepaid) cards in the U.S. from
January 1 through September 30, 2013, an increase of 7.8% or 3.75
TOP ACQUIRERS WORLDWIDE
The 150 largest acquirers of merchant card transactions based
on the number of general purpose card purchase transactions at
merchants during calendar year 2012 are listed on page 11.
PAYMENT CARDS PROJECTED WORLDWIDE
Payment cards in circulation worldwide reached
14.44 billion in 2012, up 8.2% over 2011. These
included cards with global general purpose
brands (Visa, MasterCard, American Express,
Maestro, JCB, Diners Club, and UnionPay),
M&A AND CORPORATE FINANCING SEPTEMBER 2013
Turn to page 9 for a list of 34 mergers, acquisitions, joint ventures,
and corporate nancing deals that occurred in September. There
were 325 transactions from January 1 through September 30.
FIRST DATA TABLET PLATFORM
The move to replace countertop terminals, cash registers, and PC-
based systems with tablet-based systems is accelerating faster than
even early adopters had predicted. First Data, the worlds largest
FICO FIGHTS FALSE POSITIVE FRAUD
Issuers face back-ofce costs as well as disgruntled cardholders
when their fraud protection systems decline valid authorization
requests from transactions originating in a foreign country.
DELOITTE PAYMENTS INDUSTRY CONSULTING
In the aftermath of the Great Recession, the amount of money
nancial institutions and industry vendors have available for
consulting services has shrunk. As a result, several payment
EVO PAYMENTS EXPANDS IN EUROPE
Privately held EVO Payments, which ranks 18
th
among U.S.
merchant acquirers, has formed majority-owned joint ventures in
Spain and Poland. These deals follow last Decembers acquisition
Payment Cards Worldwide
2012 vs. 2017
51%
26%
9%
23%
29%
5%
36%
28%
2012
2017
Type 2012 2017
Private Label* 5,677.1 7,764.4
UnionPay 3,534.0 5,341.7
Visa 2,499.2 3,197.9
Domestic GP 600.0 1,606.8
MasterCard 1,157.4 1,576.4
Maestro 725.0 762.8
Amex 102.2 128.5
JCB 78.3 96.2
Discover 61.5 79.6
Diners 5.8 6.3
14,440.5 20,560.5
Growth in Global Brands
Total Cards (Mil.)
*Private Label includes prepaid.
2013 The Nilson Report
NOVEMBER 2013 Issue 1,029 For 43 years, the leading publication covering payment systems worldwide.
HSN Consultants Inc. 2013 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for
any purpose is a copyright violation subject to substantial nes. Yearly Subscription for 23 print and electronic issues is $1,495. ISSN 1087-8718
THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA PHONE (805) 684-8800 FAX (805) 684-8825 info@nilsonreport.com
turn to page 9
... turn to page 8
turn to page 11
... turn to page 6
... turn to page 10
... turn to page 12
turn to page 5
... turn to page 5
CONSUMER FINANCIAL PROTECTION BUREAU has
eliminated a feature of the Credit Card Accountability, Respon-
sibility and Disclosure Act passed in 2009, which effectively
denied credit cards to stay-at-home spouses or domestic partners
because the employed spouse or partner's income could not
be considered in the application. Credit card issuers must now
consider household income, rather than individual income, for
persons applying for a credit card under their own name.
CHASE CARD SERVICES will add EMV-compliant chips to Sap-
phire Preferred Visa cards it issues in the U.S. The largest U.S. credit
card issuer will add EMV chips to its upscale JPMorgan Palladium
Visa and JPMorgan Select cards and British Airways and Marriott co-
branded cards. Jennifer Roberts is President at Chase Card Services,
(302) 282-4000, jennifer.roberts@chase.com, www.chase.com.
HEARTLAND PAYMENT SYSTEMS will offer its small business
customers American Express Merchant Financing based on their
annual card processing volume. Loans are paid back over a
12-month period. Merchants can borrow up to $75,000. HPS is the
6th largest U.S. acquirer. Pierric Beckert is EVP, Pricing & Bus. Devel.
at American Express, (212) 640-5757, pierric.beckert@aexp.com,
www.americanexpress.com. Bob Carr is CEO at Heartland,
(609) 683-3831 x2203, bob.carr@e-hps.com,
www.heartlandpaymentsystems.com.
SQUARE, provider of payment card processing services to merchants
using smartphones and tablets, will discontinue its monthly service
fee as of February 1, 2014. By that time all processing will be han-
dled on a per-transaction basis. Square has also eliminated holds
and deposit limits on manually entered transactions in the U.S.
THE NILSON REPORT
NUMBER 1029 Novemober 2013
- 1 -
FUNDING CREDIT CARD LOANS: Current and Future Consid-
erations is a discussion paper available from The Federal Reserve
Bank of Philadelphia's Payment Cards Center. The 21-page report is
available from http://www.philadelphiafed.org/consumer-credit-
and-payments/payment-cards-center/publications/discussion-
papers/2013/D-2013-November-Funding-Credit-Card-Loans.pdf.
PROPAY, a wholly owned subsidiary of TSYS, will offer its
e-commerce merchant customers Planet Payments Shop in Your
Currency multicurrency pricing service. Greg Pesci is President at
ProPay, (801) 341-5560, greg.pesci@propay.com, www.propay.com.
Philip Beck is CEO at Planet Payment, (516) 670-3200, pbeck@
planetpayment.com, www.planetpayment.com.
ONYX PAYMENTS is the new name of the former Pegasus
Financial Services. The company provides more than $500 million
annually in payment disbursement and reconciliation services to
more than 40,000 hotels and 60,000 travel distributors worldwide.
Mark Dubrow is CEO, (214) 234-4120, mark.dubrow@pegs.com,
www.onyxpayments.com.
FISERV has licensed iovation's ReputationManager360 Internet
authentication and fraud control service. John Horn is Security
Strategist, Enterprise Risk & Resilience at Fiserv, (330) 874-0529,
john.horn@fiserv.com, www.fiserv.com. Jon Karl is VP, Corporate
Devel. at iovation, (503) 224-6010, jon.karl@iovation.com,
www.iovation.com.
TRANSFIRST, the 14th largest U.S. acquirer, will offer its nearly
200,000 active merchants PayPal card acceptance at the point of
sale. Craig Tieken is Director of Product at TransFirst, (303) 625-4614,
ctieken@transfirst.com, www.transfirst.com. Don Kingsborough is
VP, Enterprise & Retail Solutions at PayPal, (408) 967-3794,
dkingsborough@paypal.com, www.paypal.com.
INCOMM, a top provider of prepaid cards, now offers merchants a
shopping cart optimized for buyers using mobile devices.
David Nelsen is General Manager, Digital Solutions, (503) 443-8264
x706, dnelsen@incomm.com, www.incomm.com.
EON PAYMENT SOLUTIONS has released the latest version of
EonPay, its Enterprise-Class Hosted Recurring Billing Platform for
corporations, software companies, and payment service providers.
The platform is PCI compliant. EON is a division of ABC Financial
Services. Doug Elkins is Managing Executive at EON, (501) 515-5062,
doug.elkins@eonpayments.com, www.eonpayments.com.
HIGHER ONE has reached a preliminary agreement in federal court
to settle class-action lawsuits in five states. The company will pay
$15 million if the settlement is approved. The litigation was tied to
fees charged to debit card accounts held by college students.
JUMIO has reduced to an instant the time it takes for its new
Netswipe Version 2.0 SDK to scan a payment card using a camera
in a smartphone or tablet and initiate payment in a merchant's app
on a checkout page. Netswipe 2.0 scans and extracts the customer's
name, in addition to the 16-digit card number and the expiration
date. Customers only need to enter the 3-digit CVV number to
complete the transaction. Daniel Mattes is CEO, (650) 424-8545,
daniel@jumio.com, www.jumio.com.
PAYTECH SUMMIT 2013
Two-Day Conference
November 27-28, 2013
The Hotel Estanplaza International
So Paulo, Brazil
Topics include: how technology and innovation could bring
a larger convergence and interoperability, regulation of
m-pay, business models for m-pay in Brazil, technology for
secure transactions, Brazilian consumer behavior, and more.
Speakers represent: Walmart Chile, Agncia Nacional De
Telecomunicaes, Mg Systems Consutoria, TVZ, Banrisul
Compras, Clearsale, Redecard, Banco Santander, Caixa
Econmica Federal, Paypal Brasil, COTS Advocacia, Buscap
Company, Nokia Solutions and Networks, Vivo do Brasil,
MasterCard, ACG, Camara E-Net, Polishop, Claro do Brasil,
Ericsson, Associao Paulista de Supermercados APAS,
EMTU, M.Sense, Ewave do Brasil, Cielo, Morpho do Brasil,
and more. Cost is $1,800. Contact Eduardo Machado at Next
Business Media, 55 (11) 3173-4413, eduardo.machado@
nextbm.com.br. Register at www.paytechsummit.com.br.
FEATURED CONFERENCE
20%
C
o
n
f
e
r
e
n
c
e

l
i
n
k
s

a
t

w
w
w
.
n
i
l
s
o
n
r
e
p
o
r
t
.
c
o
m
Subscribers to
The Nilson Report
will receive a 20%
discount. (Use code
TNR_13K_PT.)
FAST FACTS
> > > > > > > > >
2 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
MITEK SYSTEMS has received its second U.S. patent related to
using a smartphone or tablet camera for bill payment. The com-
pany's Mobile Photo Bill Pay software takes a picture of a bill, reads
the text, and auto-populates the fields required to make a pay-
ment. Keith Gray is VP Sales, (858) 309-1740, kgray@miteksystems.
com, www.miteksystems.com.
MERCHANT360 provides POS development, integration, and
transaction processing to support payments and value-added
services. The company now offers bi-directional NFC between
enabled mobile phones and point-of-sale terminals from Ingenico
and VeriFone. Steve McRae is CEO at Merchant360, (541) 292-0667,
stevemcrae@merchant360.net, www.merchant360.net.
AURUS, formerly TalentBeat, has been awarded U.S. Patent No.
8543461 for its whizPay payment processing service, which lets
businesses isolate their POS systems from PCI requirements while
remaining compliant with Payment Card Industry Data Security
Standards. WhizPay features can apply to payment processing,
CRM, loyalty, mobile, and social media integration. Rahul Mutha
is CEO, (508) 982-0334, rmutha@aurustech.com,
www.aurustech.com.
ACCULYNK, provider of PaySecure, a graphical PIN pad that con-
sumers can use for online debit payments, as been deployed by Ria,
provider of international money transfers. John Beisner is SVP,
Client Services at Acculynk, (678) 894-7026, jbeisner@
acculynk.com, www.acculynk.com. Juan Bianchi is CEO at Ria,
(562) 345-2154, jbianchi@riafinancial.com, www.riafinancial.com.
BILLTRUST, a top provider of outsourced billing and payment ser-
vices, now offers EmailPlus, a turnkey service that billers can use to
e-mail bill recipients a summary of their invoices along with a PDF
attachment. Recipients can securely view and pay invoices as well as
download invoicing data directly into accounting software such as
QuickBooks. Flint Lane is CEO at Billtrust, (609) 235-0846,
flane@billtrust.com, www.billtrust.com.
STRUCTURE & PRACTICES OF THE DEBT BUYING
INDUSTRY is a 49-page report available from the Federal Trade
Commission at www.ftc.gov/os/2013/01/debtbuyingreport.pdf.
PCI DATA SECURITY STANDARD (PCI DSS) version 3.0 is now
available. Updates include recommendations for making PCI DSS
part of everyday business processes, best practices for maintaining
ongoing PC DSS compliance, guidance from the Navigating PCI DSS
Guide built in to the standard, and enhanced testing procedures to
clarify the level of validation expected for each requirement.
Visit www.pcisecuritystandards.org.
ROGERS, Canada's largest mobile network operator with more than
9 million subscribers, has signed an agreement with MasterCard to
install a prepaid MasterCard account and contactless PayPass tech-
nology in NFC-enabled smartphones. The Rogers Prepaid Master-
Card in the Rogers suretap wallet will allow cardholders to tap their
phone to pay at more than 40,000 retailers in Canada. Betty DeVita
is President at MasterCard Canada, (416) 479-3226, betty_devita@
mastercard.com, www.mastercard.ca. David Robinson is VP,
Emerging Business at Rogers Communications, (416) 935-5112,
david.robinson@rci.rogers.com, www.rogers.com.
Paul Burmester has been appointed CEO at ValidSoft,
44 (203) 170-8125, paul.burmester@validsoft.
com. Jeffry Beene has been appointed Senior Risk
Management Officer at JetPay, (972) 503-8900
x169, jbeene@jetpay.com. Andrew Mathieson has
been appointed Group Executive of Relationship
Management at TSYS, (770) 663-2954, amathieson@
tsys.com. Allison Bennett has been appointed
Chief Marketing Officer at Elavon, (678) 731-5540,
allison.bennett@elavon.com. Robyn Brewington,
formerly at Source One Direct, has been appointed VP,
Direct Sales at TransCentra, (678) 728-2541,
robyn.brewington@transcentra.com. Simon Wilson has
been appointed U.K. Sales Manager at NXGEN,
(406) 863-9977, swilson@nxgen.co.uk.
MANAGEMENT

>
CHANGES
L
a
r
g
e
s
t
P
a
y
m
e
n
t C
a
r
d
Is
s
u
e
r
s
and M
e
rc
h
a
n
t A
c
q
u
ire
rs

a 2013 Nilson Report Publication
HSN Consultants Inc. 2013 THE NILSON REPORT, www.nilsonreport.com/largest issuers. Reproduc-
ing or allowing reproduction or dissemination of any portion of this document in any manner is a
copyright violation subject to substantial nes.
W
o
r
ld
w
id
e
Fifth Edition
Asia/Pacic,
Canada, Europe,
Latin America, United States,
and Middle East/Africa
Also lists
250 Merchant Acquirers
from 64 countries in all world regions
New for 2013
85 pages
Figures include
cards in
circulation and
spending for
more than
880 credit
& debit
card issuers
from 115 countries in
all world regions
Order Today
www.nilsonreport.com/largestissuers
> > > > > > > > >
FAST FACTS
3 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
> > > > > > > >
FAST FACTS
FIRST DATA MERCHANT SOLUTIONS, First Data's direct-
to-market merchant acquiring business, will offer Diners Club and
Discover card acceptance to its merchants in the U.K. Gerry Wagner
is VP, Global Acceptance at Discover Network, (224) 405-2955,
gerrywagner@discover.com, www.dinersclub.com. Raj Sond is
General Manager at First Data Merchant Solutions,
44 (126) 828-5710, rsond@firstdatacorp.co.uk,
www.firstdatams.co.uk.
PROSA, the top third-party processor in Mexico, will offer its
merchant customers in that country and others in Central America
AnywhereCommerce's aCommerce Gateway for accepting payment
cards, payment acceptance software, and mobile POS devices. The
devices will be branded SQCarnet. Bill Nichols is EVP, International
Markets at AnywhereCommerce, (954) 993-5093, bill.nichols@
anywherecommerce.com, www.anywherecommerce.com.
Emmanuel Ari Chamarro is in charge of Carnet, Issuance & Accep-
tance at Prosa, 52 (55) 5268-1212, emmanuelari@prosa.com.mx,
www.prosa.com.mx.
EMERGING MARKETS PAYMENTS (EMP) has certified
Ingenico's Telium 2 range of POS terminals. More than 130 banks
and 30,000 retailers use EMP as their payment processing company
in the Middle East and Africa. Rachid Oulad is Africa Director at
Ingenico, 33 (6) 2118-3095, rachid.ouladakdim@ingenico.com,
www.ingenico.com. Paul Edwards is Chairman at EMP,
27 (83) 709-7007, pedwards@emp-group.com,
www.emp-group.com.
RBM REDEBAN MULTICOLOR, Colombia's top third-party
payment processor, now offers an application for smartphones
that lets merchants accept card payments. RBMovil can be used
with Android, BlackBerry, and iOS devices. RBM is working with
MasterCard to promote mobile payment processing. Juan Carlos
Silva is VP, Sales at RBM, 57 (1) 307-7110 x1217, jcsilva@rbm.com.
co, www.redebanmulticolor.com.co. Marcela Carrasco is President at
MasterCard Colombia, 57 (1) 607-0520 x70528, marcela_carrasco@
mastercard.com, www.mastercard.com.co.
FIRST BANK in Nigeria now offers a platinum MasterCard
debit card exclusively for members of its premier loyalty club.
Chuma Ezirim is General Manager & Group Head, eBusiness at
First Bank Nigeria Limited, 234 (80) 2501-8720, chuma.ezirim@
firstbanknigeria.com, www.firstbanknigeria.com. Omokehinde
Ojomuyide is VP & Area Business Head, West Africa at MasterCard
Worldwide, 234 (1) 460-0902, omokehinde_ojomuyide@
mastercard.com, www.mastercard.com.
STATE BANK OF INDIA will use the payment processing platform
of Yalamanchili to support its Xpress Money Visa card, which enables
cardholders to receive money transfers that originate from the UAE
directly onto the card. Ramkumar Sekar is President South East Asia
& India Sub Continent at Yalamanchili, (65) 6933-8600, ramkumar.
sekar@yalamanchili.com.sg, www.yalamanchili.com.sg. Amit Kumar
Tripathi is Deputy General Manager at State Bank of India,
91 (22) 2274-1210, dgm.nbps2@sbi.co.in, www.sbi.co.in.
BARCLAYS, Europe's 2nd largest merchant acquirer, will provide full
card acquiring services for Digital River World Payments. Marc
Pettican is Director of Sales at Barclaycard, 44 (20) 3555-5569,
marc.pettican@barclaycard.co.uk, www.barclaycard.com.
Souheil Badran is SVP and GM at Digital River World Payments,
(952) 225-3736, sbadran@digitalriver.com,
www.digitalriverpayments.com.
THE NATURAL SECURITY ALLIANCE is a newly formed
association dedicated to wireless biometric authentication.
Members include MasterCard, Banque Accord, BNP Paribas, Carre-
four Banque, Groupe Auchan, Ingenico, Leroy Merlin, Oberthur, and
Paycer. For more information visit www.naturalsecurityalliance.org.
PAYLEVEN, a provider in Europe of payment card processing for
tablets and smartphones, now offers its merchant customers the
ability to create loyalty programs based on consumer email
addresses. Alston Zecha is COO, 44 (786) 736-1792, alston.zecha@
payleven.co.uk, www.payleven.co.uk.
THE NILSON REPORT
NUMBER 1029 November 2013
- 3 -


CARTES 2013 PARIS: November 19-21, 2013. The Paris
Nord Villepinte, Paris, France. Estimated attendance: 1,600.
Cost for the three-day conference is $1,798 (1,328). Subscribers
to The Nilson Report will receive a 20% discount. (Use code PPARIS13.)
Contact Alexandra Pinard, 33 (1) 7677-1126, alexandra.pinard@
comexposium.com. Register at www.cartes.com.
MOBILE MONEY & DIGITAL PAYMENTS ASIA
2014: January 21-23, 2014. The Gran Melia Jakarta Hotel,
Jakarta, Indonesia. Estimated attendance: 200. Cost for the
three-day conference is $1,200. Subscribers to The Nilson Report
will receive a 20% discount. (Use code NILSON.) Contact Charlotte
Walkling at Clarion Events, 44 (20) 7384-7919, charlotte.walkling@
clarionevents.com. Register at www.mobile-money-gateway.com/
event/mobile-money-and-digital-payments-asia-2014.
CONFERENCES
&
SEMINARS
C
o
n
f
e
r
e
n
c
e

l
i
n
k
s

a
t


w
w
w
.
n
i
l
s
o
n
r
e
p
o
r
t
.
c
o
m
PREPAID CARD COMPLIANCE 2014: January 30-31,
2014. The Washington Plaza Hotel, Washington, D.C. Estimated
attendance: 150. Cost for the two-day conference is $2,295.
Subscribers to The Nilson Report will receive a $300 discount. (Use code
TNR300.) Contact Nicole ONeill at ACI, (212) 352-3220 x5257,
n.oneill@americanconference.com. Register at
www.americanconference.com/prepaidcardDC.
SCA 2014 PAYMENTS SUMMIT: February 5-7, 2014. The
Grand America Hotel, Salt Lake City, Utah. Estimated attendance:
600. Cost for the three-day conference for nonmembers is $1,120
(discounts available with registration before December 20, 2013
and January 15, 2014). Subscribers to The Nilson Report will receive a
20% discount. (Use code 20-DISC.) Contact Kristin Krebs at SCA,
(203) 733-9715, kkrebs@smartcardalliance.org. Register at
www.scapayments.com.
4 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
processor of card payments at merchants, has now
rmly committed to replacing legacy devices with
tablets, which it can easily deploy with industry-
specic applications.
Clover Station is the
name First Data has
given to a hosted,
cloud-based POS
commerce platform
it plans to
offer small
and midsized
businesses to
replace all of the
existing devices
they use on their countertops. The hardware and
open-system software were developed by First
Datas Clover Network subsidiary
a unit that operates with its own
governance structure.
Bank of America Merchant Services,
a joint venture of BofA and First Data,
is the rst merchant acquirer to offer
Clover Station.
First Data will bring Clover Station
to market directly and in partnership with joint
venture and other partners in the U.S., Europe, and
other regions by year-end. Clover will replace sales
First Data currently makes using its proprietary
POS terminal as well as sales it makes using POS
terminals manufactured by other vendors.
The Clover Station uses the Android operating
system. Its 11.6-inch screen is larger than those
available from other vendors selling tablet-
based POS commerce systems. The tablet ts
into a swivel stand that can be turned to face the
cardholder. The Clover Station deploys Wi-Fi,
Bluetooth, and Ethernet protocols. A USB port can
be used to add an NFC card reader. Future systems
will integrate contactless readers. A barcode reader
is available.
Clover Stations installed menu of core apps can be
broken down to subapps to work better
for specic merchants or they can be
completely uninstalled and replaced by
a customized app created by an outside
developer.
Clover Station was designed to be
shipped fully congured for the
merchant it is being shipped to and
is able to be installed in 15 minutes
without the need of a professional IT person.
Leonard Speiser is President at Clover Network
in Mountain View, California, (350) 396-9444,
leonard@clover.com, www.clover.com.
Balancing the customer
experience versus protection
against fraud has been an
ongoing debate for payment
card issuers. In the current
environment, issuers see more
to gain by favoring the customer
experience.
ValidSoft offers issuers a
condence score on cross-border
transactions through its ability to
identify the location of a mobile
phone in proximity to an ATM
or POS terminal where the card
is being used. Issuers send the
cardholders mobile number and
the location of the transaction
to ValidSoft, which returns a
score in less than half a second.
Cardholders are not aware that
the connection has been made.
Jon Alford is Product Manager
at ValidSoft in London, U.K.,
44 (203) 170-8128, jon.alford@
validsoft.com, www.validsoft.
com. Prior issues: 996, 993, 980,
948
FICO has integrated ValidSoft
into its Falcon Fraud Resolution
Manager product, which is
used to protect issuers and
cardholders from payment
card fraud. Falcon monitors
transactions from more than 2.4
billion cards. Fraud Resolution
Manager includes customer
communications software that
FICO gained in the $115 million
acquisition of Adeptra last year.
FICO has already tested
ITS 11.6-INCH
SCREEN IS
LARGER THAN
OTHER POS
TABLETS.
FIRST DATA TABLET PLATFORM
(from page 1)...
FICO FIGHTS FALSE POSITIVE FRAUD
(from page 1)
... turn to page 6
5 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
of all assets of Germany-based Deutsche Card
Services, which operates in 39 countries in Europe.
In Spain, the new 50%-50% joint venture between
EVO and Banco Popular will operate under the
name Popular Payments. A 10-year marketing
alliance will direct merchants with accounts at
Banco Popular exclusively to the joint venture.
Banco Popular operates more than 2,000 branches
in Spain. Last year it ranked 39th among merchant
acquirers in Europe by processing 158.9 million
Visa and MasterCard transactions (up 10%). Jos
Flix Martnez de Cabo is Merchant Acquiring
Manager at Banco Popular in Madrigal, Spain, 34
ValidSofts proximity correlation service with two
U.K. card issuers. Those trials showed that false
positives on international transactions can be
reduced by up to 70%. This helps create another
positive effect fraud personnel are freed from
working many false positive transactions and can
focus on real fraud. FICO expects Falcon users
based in Europe to be particularly interested in
the service, which is now available globally. The
mobile phone proximity service can be licensed on
a volume basis or a per-transaction basis. Thomas
Horan is VP, Product Management at FICO in San
Diego, California, (858) 369-8118, tjhoran@co.
com, www.co.com. Prior issues: 1,027, 1,026,
1,024, 1,020, 1,015, 1,014, 1,011, 1,009, 1,001, 996,
991, 990
The M007, Miuras latest chip
and PIN entry device,
measures 150 mm
high x 80 mm
wide x 23
mm deep.
It
comes with USB, RS232
(serial), and Ethernet physical
connections and Bluetooth and
Wi-Fi communications. The
M007s smart card reader is
rated for 1 million insertions. Its
triple track mag-stripe reader
is rated for 500,000 swipes.
The embedded contactless
reader gives ISO 14443 A/B
and NFC support. M007 is
certied for Level I and Level
II. Authentication processors
are available to integrate with
Apple, Android, and BlackBerry
devices.
The high-resolution
backlit LCD
display measures
256 x 128 pixels
and is capable of
supporting QR
code generation.
The M007, which
uses the Linux operating
system, can be locked into
a cradle and secured by an
alarm for use in xed-lane
environments. It can be
unlocked from the cradle for
handheld use.
Miura brought its rst mobile
device to the U.K. market in
2011. It provides the hardware
and software kernel. Its
customers, which include
banks, PSPs, system integrators,
and others, add the software
needed by end users. Customers
include PayPal, Adyen,
Payleven, WorldPay,
Swiff, Stagecoach,
International
Transaction Systems
(ITS), Touchpoint
Payments, and iZettle.
Miura products are
sold directly and
through resellers in
Europe, the Middle
East, Africa, Asia, and South
America. Richard Goodland
is Chief Operating Ofcer at
Miura in Stokenchurch, U.K.,
44 (790) 997-5773, rgoodland@
miurasystems.com,
www.miurasystems.com.
MIURA CHIP & PIN DEVICE
ITS SMART
CARD READER
IS RATED FOR
1 MIL. INSER-
TIONS.
EVO PAYMENTS EXPANDS IN EUROPE
(from page 1)...
FICO FIGHTS FALSE POSITIVE FRAUD
(from page 5)...
6 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
The new Visa brand prepaid
Contour Card from U.S. Bank
replaces the issuers Convenient
Cash and Buxx products. U.S.
Bank believes that combining
features tied to those products
gives Contour Card a stronger
chance of creating long-term
relationships with users of
reloadable prepaid accounts.
The new Contour Card account
can include a second card linked
to the primary account for use
by a spouse. It can also support
up to ve subaccounts, each
with separate prepaid cards that
are linked to the main account.
Users can select different color
schemes for all of the cards in
their accounts.
U.S. Bank provides
a single online
dashboard to
track spending
and transfer funds
between the linked
cards. It will also
offer Contour Card
apps for iOS and
Android devices.
U.S. Bank charges a $4 upfront
enrollment fee for each card on
the account and a $4 recurring
monthly service fee per card.
Funds can be loaded at U.S.
Bank branches or by direct
deposit.
U.S. Bank rst used the Contour
brand for a prepaid MasterCard
launched in 2012 as
part of its Campus
Card program. That
card doubles as a
student identication
card. It offers mobile
account management
and person-to-person
payments. Whitney
Bright is Market
Leader for Consumer
Prepaid at U.S. Bank in St.
Louis, Missouri, (636) 300-5653,
whitney.bright@usbank.com,
www.usbank.com.
(91) 520-8275, jfmartinez@bancopopular-e.com,
www.bancopopular.es. Prior issue: 1,019
In Poland, PKO Bank Polski received
$113.5 million for selling EVO a
66% stake in its eService merchant
acquiring business plus the amount of
any operational cash in the company
at closing. An earn-out mechanism
allows for additional revenue if
performance goals are reached.
A 20-year alliance agreement will begin at closing
of the transaction, which is expected by year-end.
The partners see eService expanding to other
countries in Central and Eastern Europe. Last
year eService ranked 28th among all acquirers in
Europe with 278.9 million Visa and MasterCard
transactions processed (up 53%). Marek
Paradowski is CEO at eService S.A. in Warsaw,
Poland, 48 (22) 533-2210, marek.
paradowski@eservice.com.pl,
www.eservice.com.pl.
When EVO completed acquisition of
Deutsche Card Services earlier this year,
it became a primary member of Visa
and MasterCard. The joint marketing
relationship EVO has with Deutsche
Banks Global Transaction Banking
division is a 10-year contract. During that time EVO
receives exclusive access to the banks merchant
base. James Kelly is CEO at EVO Payments
International in Atlanta, Georgia, (770) 804-8787,
jkelly@goevo.com, www.evopayments.com. Prior
issues: 1,008, 1,003, 990
Orange, a mobile network operator (MNO) with
233 million subscribers in 32 countries in Europe,
the Middle East, and Africa, signed an agreement
with Visa last year to add prepaid products to
Orange Money accounts.
Orange Money Visa prepaid cards were launched
in Botswana in August of this year. Orange Money
was an existing prepaid account offered by the
MNO to its nearly 1 million customers in the
country and used to transfer funds to other mobile
accounts, buy airtime, and pay recurring bills.
Moussa Thiemoko Dao is Orange Money Director
PKO BANK
POLSKI AND
EVO HAVE
SIGNED A 20-
YEAR ALLIANCE.
USERS CAN
CREATE UP
TO FIVE SUB-
ACCOUNTS
WITH SEPARATE
CARDS.
... turn to page 8
U.S. BANKS NEW PREPAID CARD
WIRECARD SUPPORTS VISA/ORANGE NFC PARTNERSHIP
7 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
billion versus the total for the
rst nine months of 2012. Credit
card purchase transactions
increased by 7.1% or 1.24 billion.
Debit card purchase transactions
increased by 8.3% or 2.52 billion.
Debit cards generated 63.75%
of all purchase transactions, up
from 63.49%.
Through the rst nine months
of 2013, Visa credit cards
issued in the U.S. accounted for
50.01% of credit card purchase
transactions, up 158 basis points
from 48.43% for the rst nine
at Orange in Gaborone, Botswana, (267) 369-3700,
moussa.dao@orange.com, www.orange.com.
Orange, with 27 million subscribers, is Frances
largest MNO. It has started to preload the Visa
mobile payment application into NFC-enabled SIM
cards in handsets it sells. Approximately 40% of the
handsets it sells are NFC-enabled.
Cardholders can download an
Orange Cash app from app stores
and top up their Orange Cash
account using their bank card.
Wirecard Card Solutions is the Visa
issuer.
Cardholders can use their handsets
at the 120,000 merchant locations
in France where NFC card readers
are expected to be installed by year-
end 2013. They can also generate
virtual, one-time-use account numbers for spending
at online merchants.
The service will launch in Strasbourg and Caen
before rolling out nationwide in midyear 2014.
Frederic Maistre is Head of Strategic Alliances at
Visa Europe in Paris, 33 (1) 5305-3914, maistref@
visa.com, www.visaeurope.com.
Frances four largest banks also have formed
partnerships with Orange. They will add debit
products to NFC-enabled phones. Orange also has
prepaid account partnerships with MasterCard in
Spain and Poland. Thierry Millet is VP, M-Payments
and NFC at Orange in Paris, 33 (1) 5548-7685,
thierry.millet@orange.com, www.orange.com.
Wirecard, which will also handle the account
processing for Orange Cash Visa prepaid
transactions, also provides prepaid account
processing for Deutsche Telekom, Vodafone,
E-Plus, Telefonica O2, and SFR. For all of those
programs except Deutsche Telekom, it is also the
card issuer.
Those mobile network operators also use Wirecard
to provide over-the-air provisioning of card account
and loyalty/coupon information to NFC-enabled
handsets. Markus Braun is CEO at Wirecard AG in
Aschheim, Germany, 49 (89) 4424-1415, markus.
braun@wirecard.com, www.wirecard.com.
U.S. General Purpose Cards YTD 3Q 2013 vs. YTD 3Q 2012
Dollar Volume (bil.) Purch. Trans.
Brand/Type of Card Total Chg. Purchases Chg. Cash Chg. (bil.) Chg.
Visa Credit $827.20 10.1% $791.10 10.1% $36.10 9.9% 9.35 10.6%
American Express Credit $467.90 7.5% $465.12 7.5% $2.78 9.9% 3.25 6.6%
MasterCard Credit $431.82 3.9% $412.27 4.6% $19.55 8.1% 4.67 1.4%
Discover Credit $99.30 4.1% $92.77 4.6% $6.53 2.5% 1.43 5.6%
CREDIT CARD TOTALS $1,826.22 7.6% $1,761.26 7.8% $64.96 2.5% 18.70 7.1%
Visa Debit & Prepaid $1,189.45 6.4% $884.20 7.5% $305.25 3.3% 23.61 7.3%
MasterCard Debit & Prepaid $488.85 8.8% $364.55 9.8% $124.30 5.7% 9.27 10.8%
DEBIT CARD TOTALS $1,678.30 7.1% $1,248.75 8.1% $429.55 4.0% 32.89 8.3%
Visa Total $2,016.65 7.9% $1,675.30 8.7% $341.35 4.0% 32.96 8.2%
MasterCard Total $920.67 6.4% $776.82 7.0% $143.85 3.6% 13.95 7.5%
VISA & MC TOTALS $2,937.32 7.4% $2,452.12 8.1% $485.20 3.9% 46.91 8.0%
CREDIT & DEBIT TOTALS $3,504.52 7.3% $3,010.01 7.9% $494.51 3.8% 51.58 7.8%
Includes activity on all consumer and commercial credit, debit, and prepaid cards for January 1September 30,
2013 vs. January 1September 30, 2012. American Express and Discover include gures for third-party
issuers. 2013 The Nilson Report
U.S. GENERAL
PURPOSE CARDS
THROUGH 3Q 13
(from page 1)...
WIRECARD SUPPORTS VISA/ORANGE NFC PARTNERSHIP
(from page 7)...
8 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
Membership in the
newly formed CardLinx
Association is open to
nancial institutions,
publishers,
advertisers, merchants
and their acquirers, and other
entities interested in connecting
digital advertising and
marketing to the physical world
in the form of a payment card.
Card-linked offers bypass the
use of a paper coupons as well
as promotion or voucher codes
tied to a mobile phone.
CardLinx Associations stated
aim is to create interoperability,
eliminate friction, and promote
payment growth of the card-
linked offers. Members include
Facebook, First Data, Microsoft,
MasterCard, Living Social,
Afnity Solutions, CardSpring,
Bank of America, Discover,
and Linkable Networks. Silvio
Tavares is CEO at The CardLinx
Association in San Francisco,
California, (202) 549-4397,
silvio@cardlinx.org,
www.cardlinx.org.
months of 2012. MasterCards share of debit card
purchase transactions increased by 64
basis points, from 27.56% to 28.20%.
For credit and debit cards combined,
Visas market share increased 23
points, from 63.68% to 63.90%.
Combined credit and debit card
purchase volume was up 7.9% over
the rst nine months of 2012. Credit
card purchase volume increased 7.8% or $127.13
billion. Debit card purchase volume increased 8.1%
or $94.02 billion.
Visa increased its share of credit and debit card
purchase volume to 55.66% from
55.27%. MasterCards share declined
to 25.81% from 26.04%. American
Expresss share declined to 15.45% from
15.51%. Discovers share declined to
3.08% from 3.18%.
Credit card cash advances generated
3.56% of total credit card volume, down
from 3.73%. Debit card cash withdrawals generated
25.59% of total debit card volume, down from
26.34%.
*Terms not disclosed. (1) $20 million strategic investment. (2) Acquired 5%
stake. (3) Led by e.ventures. (4) No investor(s) identied. (5) Led by Social &
Capital Partnership. (6) Acquisition. (7) The private equity rms acquired a
majority stake. (8) Led by Karlin Ventures. (9) Additional funding from parent
company. (10) Undisclosed investment. (11) Led by Crunchfund. (12) Several
individual investors. (13) Led by Next World Capital. (14) Undisclosed growth
investment. (15) Acquisition of 550,000 Aeroplan co-branded credit card
accounts. (16) Will buy 4.25 million shares from Info. Tech. Mgmt. (17) Led by
Menlo Ventures. (18) By TA Associates including acquisition of equity held by
Goldman Sachs. (19) Led by Core Innovation Capital. (20) Led by Second
Avenue Partners. (21) Led by North Bridge Venture Partners. (22) Led by
Sequoia Capital. 2013 The Nilson Report
Yoyo seed funding(12) $1.2 U.K.
PayPartners TransCard(6) * U.S.
Zuora Series E(13) $50.0 U.S.
Network Merchants Bregal Sagemount(14) * U.S.
CIBC TD Bank(15) $158.0 Canada
RS2 Software Barclays Bank(16) $6.9 Malta
Check Series C(17) $24.0 U.S.
RoamEx Trans. Network Serv.(6) * Canada
BluePay Processing Recapitalization(18) * U.S.
Wipit Series A(19) * U.S.
Front Desk seed funding(20) $3.2 U.S.
Paydiant growth equity(21) $15.0 U.S.
Zazma Series A(22) $10.0 U.S.
Amount
Company Buyer/Investor (mil.) Country
Amount
Company Buyer/Investor (mil.) Country
September
Leaf Heartland Pay. Sys.(1) $20.0 U.S.
Carta Dierence Capital(2) $2.0 Canada
Azimo seed funding(3) $1.0 U.K.
LevelUp equity funding(4) $7.5 U.S.
Simplee Series A(5) $10.0 U.S.
eScan Data TransUnion(6) * U.S.
IdenTrust Parallax Cap./StepStone(7) * U.S.
Kreditech debt funding $7.0 Germany
Deem Series G(4) $70.0 U.S.
Century Payments WorldPay(6) * U.S.
Gyft Series A(8) $5.0 U.S.
Grapple Montise(6) $63.4 U.K.
Numbrs Centralway(9) $3.8 Switz.
Prosper undisclosed funding $25.0 U.S.
Clinkle Richard Branson(10) * U.S.
Americant AmeriCommerce(6) * U.S.
Plaid seed/angel funding(4) $2.8 U.S.
Branding Brand Series B(11) $9.5 U.S.
Ocial Payments ACI(6) $109.0 U.S.
Advanced ChronoCash MoneyGram(6) * Greece
PayLife Six(6) * Austria
Payment Industry Acquisitions & Investments September 2013
VISAS SHARE
IMPROVED TO
55.66% FROM
55.27%.
CARDLINX ASSOCIATION FORMED
9 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
ExxonMobils Esso European
commercial eet fuel card
program will be acquired by
a newly formed joint venture
between WEX and Radius.
WEX will own 75% with
Radius owning 25%. Radius is
a company formed in 1990 to
provide sales and marketing
programs aimed at small
businesses on behalf of retailers
of petroleum products and other
companies.
ExxonMobil, which sells under
the Esso brand in Europe, will
enter into a 10-year agreement
with the joint venture. WEX
owns the receivables and
operates the ExxonMobil eet
credit card programs in the U.S.
and Canada.
WEX will purchase
ExxonMobils
commercial card
program in nine
countries in Europe.
Approximately 1
million cards are
involved. The cards
are used mostly for
fuel purchases by small business
owners and their eets of cars,
trucks, and vans.
WEX will convert Essos
card management system to
the multicurrency platform
it uses in Australia, New
Zealand, and North America.
WEX estimates that the joint
venture, which is its rst fuel
card business in Europe, will
contribute approximately $35
million in annual revenue once
investments are completed.
WEX also sells
single-use virtual
credit cards in
Europe to online
travel company
clients. It entered
the prepaid card
program manager
business through its
2012 acquisition of
CorporatePay. Two U.K. banks
issue the virtual MasterCard
product. David Maxsimic is
President, International at WEX
in South Portland, Maine,
(207) 523-7379, david_
maxsimic@wrightexpress.com,
www.wexinc.com. Prior issues:
1,018, 995
domestic general purpose brands (such as RuPay,
Elo, Discover, Interac, BC, Star, Bancontact,
BankAxept, BCA, PostFinance, girocard,
CuentaRUT, Verve, etc.), and private
label credit, debit, and prepaid cards
(such as store cards and fuel cards).
Global general purpose cards
accounted for 56.11% of all payment
cards in circulation at the end of 2012.
UnionPay brand cards accounted for
24.47% of the worldwide total of all
payment cards, Visa cards accounted for 17.31%,
MasterCard cards accounted for 8.01%. Maestro,
Amex, JCB, and Diners cards combined accounted
for 6.31%.
Private label cards accounted for 39.31% of the
world total in 2012. Many of these cards are gift
cards for use at retailers. Domestic general purpose
cards (including Discover) accounted for 4.58%.
By 2017, payment cards are expected to increase
by 42.4% over 2012, reaching 20.56 billion. Private
label cards (mostly prepaid), will lead the growth
(up 2.09 billion). UnionPay is projected to increase
by 1.81 billion, with domestic general purpose
up 1.01 billion, Visa up 0.70 billion,
MasterCard up 0.42 billion, and the
others (Maestro, Amex, JCB, Discover,
Diners) up 0.10 billion.
UnionPay will be the only global general
purpose brand that will increase its
share. UnionPay cards in circulation
are projected to gain 151 basis points
to 25.98%. Domestic general purpose cards
collectively are expected to gain 366 basis points,
led by RuPay in India and Elo in Brazil.
MasterCard cards are projected to decline 35 basis
points in market share to 7.67%, private label cards
are projected to decline 155 basis points to 37.76%,
Visa cards are expected to decline 175 basis points
to 15.55%, and the others (Maestro, American
Express, JCB, Discover, and Diners Club cards) are
expected to decline 152 basis points to 5.22%.
APPROXIMATE-
LY 1 MILLION
CARDS IN 9
COUNTRIES ARE
INVOLVED.
... AN INCREASE
OF 6.12 BILLION
CARDS WORLD-
WIDE BY 2017.
WEX FUEL CARD JOINT VENTURE IN EUROPE
PAYMENT CARDS PROJECTED WORLDWIDE
(from page 1)...
10 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
Top 150 Acquirers Worldwide 2012
Ranked by all purchase transactions by country (Visa, MasterCard, UnionPay, American Express, Discover, Diners Club, JCB, domestic
debit and credit). *Includes other countries. 2013 The Nilson Report
1 Bank of America (BAMS) U.S. 13,544.5
2 Vantiv U.S. 11,209.4
3 First Data U.S. 9,683.0
4 Chase Paymentech Sol. U.S. 9,044.9
5 Citi Merchant Services U.S. 6,166.4
6 WorldPay U.K.* 5,744.0
7 Cielo Brazil 4,301.6
8 Heartland Payment Sys. U.S. 3,295.8
9 Redecard Brazil 3,127.3
10 Moneris Solutions Canada 3,084.7
11 Barclays U.K. 3,024.0
12 WorldPay U.S. 2,704.9
13 Teller A/S Norway* 2,625.6
14 BC Card South Korea 2,603.7
15 Elavon U.S. 2,593.1
16 Credit Mutuel CIC France 2,578.2
17 Credit Agricole France 2,151.1
18 Global Payments U.S. 2,103.7
19 Wells Fargo U.S. 2,080.5
20 Swedbank Group Sweden* 1,595.0
21 China UnionPay China* 1,579.9
22 Global Payments Canada 1,480.5
23 JCB Japan 1,419.9
24 Sberbank Russia 1,335.9
25 Atos Worldline Belgium 1,271.1
26 TSYS U.S. 1,256.5
27 BPCE France 1,175.2
28 Global Payments U.K. 1,130.1
29 Mitsubishi UFJ Nicos Japan 1,110.2
30 Visa Argentina 1,077.0
31 Mercury Payment Sys. U.S. 1,056.9
32 Nets Finland 1,001.1
33 TD Merchant Services Canada 952.1
34 Samsung Card South Korea 936.7
35 Commonwealth Bank Australia 919.7
36 Elavon Europe Ireland* 919.3
37 BNP Paribas France 907.9
38 ANZ Merchant Serv. Australia 882.0
39 Societe Generale France 848.2
40 KB Kookmin Card South Korea 774.9
41 BBVA Bancomer Mexico 766.2
42 Natl Australia Bank Australia 753.1
43 B+S Card Service Germany 708.8
44 Garanti Bank Turkey 683.9
45 PNC Merchant Services U.S. 683.6
46 Westpac Australia 667.3
47 Comercia Spain 637.1
48 SETEFI Italy 584.4
49 Hyundai Card South Korea 559.3
50 Mellat Bank Iran 555.7
51 Desjardins Canada 555.4
52 Yapi Kredi Bankasi Turkey 538.9
53 Credit Saison Japan 538.7
54 SunTrust Merchant Serv. U.S. 536.8
55 Aeon Financial Serv. Japan 532.1
56 Santander Brazil 498.4
57 Parsian Bank Iran 479.6
58 Transbank Chile 464.2
59 SIX Payment Serv. Switzerland 450.0
60 Absa South Africa 443.7
61 First Data Polska Poland 432.8
62 Nordea Sweden 432.3
63 Merrick Bank U.S. 431.2
64 CartaSi Italy 424.0
65 T. Isbank Turkey 423.7
66 TransFirst U.S. 413.3
67 EVO Payments Intl U.S. 398.5
68 iPayment U.S. 397.2
69 Akbank Turkey 392.9
70 Unicre Portugal 364.4
71 Melli Bank Iran 362.1
72 Santander Group Spain* 355.1
73 Citibank Singapore* 354.7
74 La Banque Postale France 347.7
75 Evertec Puerto Rico* 343.0
76 Lloyds Banking Group U.K. 339.8
77 AIBMS Ireland 339.6
78 Sovereign/Santander U.S. 332.7
79 Banesco Banco Univ. Venezuela 321.8
80 PayLife Bank Austria 307.0
81 Banco Nacl (Banamex) Mexico 291.1
82 eService Poland 280.8
83 Handelsbanken Sweden* 276.5
84 North American Bancard U.S. 267.9
85 Concardis Germany 264.7
86 Erste Bank Group Austria* 257.7
87 First Data Argentina 255.0
88 Grupo Banco Popular Spain 248.4
89 Merchant E-Solutions U.S. 239.6
90 Cynergy Data U.S. 238.6
91 Mercantil Banco Univ. Venezuela 234.1
92 First Natl Bank South Africa 233.7
93 BBVA Spain* 233.3
94 Bankia Spain 227.3
95 Moneris Solutions U.S. 224.9
96 Bank Pekao Poland 219.8
97 Intuit U.S. 218.8
98 Saderat Bank Iran 213.3
99 Standard Bank South Africa 209.2
100 BBVA Provincial Venezuela 208.0
101 ChinaTrust Comm. Taiwan 207.2
102 First American Pymt. Sys. U.S. 193.5
103 BB&T U.S. 189.6
104 Total Merchant Services U.S. 185.9
105 Raieisen Bank Austria* 176.6
106 NCCC Taiwan 174.4
107 Harbortouch U.S. 168.2
108 CardConnect U.S. 163.9
109 Nedbank South Africa 160.2
110 PostFinance Switzerland 158.3
111 Banc Sabadell Spain 157.8
112 PayPros U.S. 156.0
113 MSI Merchant Services U.S. 144.2
114 Orient Corporation Japan 138.7
115 Sage Payment Solutions U.S. 138.6
116 Global Payments Hong Kong* 132.5
117 Fidelity Natl Info. Serv. U.S. 132.2
118 Banco Merc. del Norte Mexico 126.8
119 Banco de Venezuela Venezuela 125.3
120 Finansbank Turkey 123.8
121 Westamerica Bank U.S. 123.8
122 Tejarat Bank Iran 120.9
123 Banco Santander/Elavon Mexico 120.8
124 T. Vakiar Bankasi Turkey 119.0
125 Turk Ekonomi Bankasi Turkey 117.2
126 Aduno Switzerland 114.9
127 Element Payment Serv. U.S. 108.8
128 Pasargad Bank Iran 107.5
129 Commerce Bancshares U.S. 103.8
130 United Merchant Services U.S. 101.8
131 UCS Russia 101.7
132 BankCard Services U.S. 100.2
133 Privredna Banka Croatia 99.2
134 Merchants Choice U.S. 99.1
135 T.C. Ziraat Bankasi Turkey 97.9
136 Elavon Canada 96.7
137 Network International U.A.E. 96.6
138 Bancolombia Colombia 96.4
139 Kasikornbank Thailand 91.7
140 CardNET Dominican Republic 90.6
141 Electronic Payments U.S. 88.0
142 Key Merchant Serv./Elavon U.S. 83.8
143 Shared Elec. Bank Serv. Kuwait 81.2
144 Hang Seng Bank Hong Kong 80.8
145 PrivatBank Ukraine 80.3
146 Central Payment U.S. 79.5
147 HSBC Mexico 79.0
148 Al Rajhi Bank Saudi Arabia 77.8
149 Deutsche Credit Card Italy 76.1
150 Saman Bank Iran 75.0
Transactions Transactions Transactions
Rank Acquirer, Country (mil.) Rank Acquirer, Country (mil.) Rank Acquirer, Country (mil.)
11 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
industry consulting practices
have contracted and others
have closed or been acquired.
Deloitte is an exception. Over
the last ve years it has grown
from 610 advisors to more than
1,000, adding many former
card industry executives and
government regulators.
Over the last six months Deloitte
has seen business pick up even
further, in particular among
payment card issuers who have
seen revenue growth in recent
years from improvements in
credit quality, lower charge-offs,
and cost-cutting, but want to
look beyond these short-term
benets. Issuers have a pent-up
desire to deploy innovations.
They also show signicant
interest in new uses of predictive
analytics. These technologies
can now identify a cardholders
predisposition toward a
certain type of reward which
increases the value of loyalty
programs. Other analytics use
structured and/or unstructured
data to anticipate cardholder
complaints. Higher levels of
customer service are seen as
a must to support long-term
growth. In countries including
the U.S., reducing complaints
is also a response to potential
regulatory action. Banks want to
answer complaints before they
are reported to the Consumer
Financial Protection Bureau.
More than 50% of Deloittes
projects are cross-border.
Companies are looking to
expand into Asia, Africa, and
Latin America. U.S. companies,
including early stage technology
companies, processors, and ISOs,
as well as issuers and acquirers,
want to enter China, while
companies in China are looking
to expand to the U.S.
Merger and acquisition
consulting has returned to
prerecession levels. Of particular
interest is the acquisition of fraud
and risk management vendors.
In some cases, Deloitte advises
companies to make at
least an investment if
not taking controlling
interest in order to
preserve options.
It advises nancial
services clients on the
role of private equity
rms in payment
systems.
Recognizing that new
innovations usually dont launch
at scale, Deloitte is helping
clients form consortiums of
companies who can contribute
pieces to a project cumulatively
and generate scale benets for
all parties by leveraging the
cloud. This approach has worked
in health industry payments,
loyalty, mobile, and social
networking projects.
In all markets Deloitte sees
interest in new products and
services for consumers who are
outside the nancial services
industry. The availability of
smartphones by this group, as
well as by small merchants, leads
Deloitte to combine analytics
with mobile delivery to combat
the risks associated with the
mobile channel for a variety of
products and services. Deloitte
says that only 10% of its projects
start out as a contract for mobile
services but that more than 50%
of its projects touch on mobile.
Social medias impact on
payments is an area of focus for
Deloitte. It advises established
companies on the potential for
nonbanks to disintermediate
legacy systems and their
operators.
Deloitte customers include most
of the worlds 10 largest retail
banks, most of the
largest payment
processors, 8 of the
10 largest credit
card issuers in the
U.S., and 2 of the
3 largest U.S. debit
card issuers. Brian
Shniderman is
Principal at Deloitte
Consulting in New York, (602)
738-7600, bshniderman@deloitte.
com, www.deloitte.com/us/
consulting. Prior issues: 1,006,
980, 971, 968, 959, 951, 923, 915,
908, 878, 830, 820, 801, 777, 768,
746, 724
... HAS GROWN
FROM 610 ADVI-
SORS TO MORE
THAN 1,000
OVER THE LAST
5 YEARS.
David Robertson, Publisher
NOVEMBER 18, 2013
DELOITTE PAYMENTS INDUSTRY CONSULTING
(from page 1)...
12 NOVEMBER 2013 ISSUE 1,029 THE NILSON REPORT
If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.