Dorado Industries

TrendWatch 2.0
Q2 2015
Payments System Industry
Synopsis
Notice: Materials contained in this document are drawn from several media sources, and Dorado Industries is not responsible for their accuracy. Opinions expressed
herein are presented without warranty. Brand names are the trademarks of their respective service offerors.

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Random Thoughts
“We’re Number Three!”
Not the most daunting battle cry, or one often heard in collegiate or
professional sports arenas; still, running in third place behind a
couple of juggernauts does have its advantages. Consider the
nimbleness that American Express is afforded by avoiding the
regulatory and marketplace mean-spiritedness directed at Visa and
MasterCard. As a result, AXP is free to experiment and innovate
across wide market segments with targeted offerings like Bluebird
and Plenti.
Consider, too, the “plight” of the prepaid card industry. Once
considered a distant also-ran behind credit and debit cards and
primarily the stock-in-trade of the EBT segment, today’s prepaid
programs sizzle. What other offering accommodates the unique
needs of maritime employers and their ship-board employees?
Anyone else addressing the flu vaccination needs of the healthcare
industry? And when the U.S. Navy needed a highly secure way to
handle payments aboard and abroad, for its personnel, what industry
got the call? Right, prepaid.
When it comes to building a digital wallet strategy, perhaps we all
ought to be considering which third place player we should be
recruiting. Clearly, Apple Pay won’t cover all the bases; nor will the
Android or Samsung schemes. Trouble is, we need at least two of
these guys to cover the smart phone operating system waterfront.
Yet, what about the rest of the consumer (and merchant) preference
landscape?
Shouldn’t everyone be considering MCX’s CurrenC to cover off
those consumers who relish the idea of merchant loyalty and in-store
rewards? Shouldn’t credit unions be considering offers like CU
Wallet to meet the unique needs of their members and to share
costs? And, try as it might to hoist itself on its own petard yet again,
PayPal still has a viable claim on third place merely due to its size.
2
Since we’re all still in the formative stage with mobile payments and
digital wallets and the chances of an interoperability system are
pretty remote for now, it sure seems too early to be discounting
anyone jockeying for a share of the wallet war spoils. It’s a pretty
safe bet that consumers have yet to decide on a wallet preference,
even though its their decision to make. Seems to us that a wallet
strategy that doesn’t offer consumers a choice is going to come up a
bit short. Let’s hear it for Number Three! (Four, maybe?)
“We’re Number Two”
Well, it worked for Avis rent-a-car in the 1980s. True, Google did
announce Android Pay a distant second behind Apple but, is it
realistic to assume that the search engine behemoth can hold that
position or aspire to becoming the top dog? We’re not convinced.
After all, Google handsets basically suck and the other Android
devices are a couple of shades of gray away from the native
operating system (not to mention cluttered with handset or network
apps.) Then, there’s the nasty dust-up with Samsung over its Loop
Pay-augmented digital wallet. No, we think Google first needs to
decide how much variation it will allow in Android Pay (if any)
before there’s a victory lap to be run.
Alas, until we can collectively decide on how interoperability is
going to work, we’re faced with two of the world’s largest
companies vying for first place in a race that the consumer doesn’t
seem much interested in. Perhaps the Number Three finisher will
set us straight.
So it goes.
Until next time.

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3
Table of Contents
2015 Predictions 4
TrendWatch Scorecard/Summary 6
2015 Payments Industry Yields 7
Interesting Quarterly News That Got No Respect 8
Q2 M&A/Investor Activity 13
Useful Links for More Information 18
Back in the Day! 19

Dorado Industries
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2015 Predictions
• While a Herfindahl index analysis of the third party EFT processor segment might suggest no further mergers
would pass the DoJ sniff test, that’s not the case for merchant services players. There should be room for two
more major M&A transactions. One will occur in 2015.
Mar: Nothing so far. No guts, no glory.
Jun: Well, this is going nowhere fast. A couple of small plays but nothing to write home about.
• Two digital wallet providers will fold up their tents and return to the desert.
Mar: Softcard is the first to go; Loop Pay became Samsung Pay (doesn’t count). Still waiting for number two.
Jun: Delays in Android Pay and Samsung Pay launches to Q4 gives new life for a few of the hangers-on.
• At least one mobile network operator (MNO) will leave the playing field for the sidelines.
Mar: Could claim victory with the players in Softcard but that’s not fair. Still waiting for a hard fall.
Jun: Still waiting for one of the southern U.S. MNOs to make a move.
• Trade and popular press scribes will hail the three joint ventures that will occur in 2015 between issuers (or their
processors) and retailers.
Mar: Jungle drums are beating but, as yet, no major announcements.
Jun: Walmart/Green Dot re-up agreement doesn’t count but it looks a lot like what will happen.
4

Dorado Industries
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More 2015 Predictions
• A truly viable mobile payments solution for owners of Android phones will arrive late in 2015 to compete with iOS
(and Apple Pay.)
Mar: Acquisition of Loop Pay by Samsung sort of fits the bill but not quite. Google’s acquisition of the Softcard
carcass sort of fits the bill but not quite either. Still waiting.
Jun: Android Pay, though delayed, will give consumers something to consider. Merchant acceptance will be the
kicker.
• Try as it might (e.g., Buy With Twitter) to reverse its waning fortunes, Twitter’s year on year growth will be one-half
its current rate of 30 percent.
Mar: No statistics as yet but anecdotal evidence suggests that Twitter volume is on the wane. Probably a Q4
prediction.
Jun: Holding firm on this one until Twitter proves us wrong. Daily volume looks way down.
• There is a deal to be had between MCX (CurrenC) and a banking consortium and it will be announced late in
2015.
Mar: MCX claims that issuers are lining up. Where, it won’t say.
Jun: Maybe the new leadership will warm up to the idea of a banking consortium becoming a partner.
• Clinkle will disappear; but in a blaze of glory.
Mar: Still taking nourishment but through a straw.
Jun: Clinkle staffing down to about a dozen after seven key employees marched out en mass in May over sellout
rumors centered on Apple.
5

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TrendWatch Scorecard/Summary – Q2 2015
Market & Industry Situation
1 – Android Pay and FB Messenger combine to murk things up a bit.
2 – How tough would it be to turn Bluetooth vending machines into ATMs?
3 – Credit card rewards be damned, debit volume is still up.
4 – Regulators in California think Bitcoin is in their wheelhouse but plan to
ignore it. Some regulators still peeved at payroll cards
5 – Another good, but not great, quarter.
6 – Lots of money being made in payments; particularly by the card brands.
7 – Who turned off the spigot? Incumbents are happy.
8 – No major breaches this quarter (except for AdultFriendFinder); oh, and
the IRS. Birds of a feather.
Industry Players To Watch
MCX Retailers: How much longer will they hold out for a full rollout of
CurrenC before jumping ship?
PayPal: The Xoom acquisition could move the ball way, way, down the
field. Or not.
Facebook: FB Messenger payments is in full rollout. How many bar tabs
and bets will settle via linked debit cards? Few, we think.
Fed Faster Payments: Okay, those of us interested in providing FFP
services need to respond to a set of requirements but no specs or rules. Oy!
Amazon: Within-the-hour home delivery? Lots more payments coming.
The Internet of Things: Didn’t like the level of security in the old
Internet? Watch out for light bulb and baby monitor hackers.
5. New Venture Growth
4. Legal/Regulatory Issues
1. New Payment Forms
2. ATM Restructuring
3. POS Volume Trend
Low
Med
High
Low
Med
Med
Low
Positive
Mixed
Negative
6. Earnings Announcements
7. Industry Investments
8. Payments Industry SecurityHigh

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2015 Payments Industry YTD Yields
Sources: Company releases, Morningstar.com, Bloomberg.com, Coinbase.
2015 YTD yield excludes dividends; based on 12/31/14 and 6/30/15 closing prices.
Greece kicked us in the groin on June 29th and may do us in further unless the sanctions are
agreed to. Still, average yields improved quarter-to-quarter while the Dow and S&P clawed their
way back to essentially zero YTD yields. AXP is still putting salve on the Costco wound while most
of the payments processors are out-performing the rest of the equity basket. Even Bitcoin has
revived a bit from its low ebb last quarter. Now is probably a better time for lenders over investors
but what do we know?
Industry Player 12/31/2014 6/30/2015 Price r Cap Value r YTD 2015 Yield
Alliance Data Systems 284.05$ 291.94$ 7.89$ 469.5$ 2.8%
American Express 93.03$ 77.72$ (15.31)$ (16,529.4)$ -16.5%
Blackhawk Network Holdings 38.92$ 41.20$ 2.28$ 119.2$ 5.9%
Cardtronics 38.58$ 37.05$ (1.53)$ (62.3)$ -4.0%
Discover Financial Services 65.50$ 57.62$ (7.88)$ (3,789.5)$ -12.0%
Euronet Worldwide 54.90$ 61.70$ 6.80$ 342.7$ 12.4%
Fidelity National Information Services 62.21$ 61.80$ (0.41)$ (78.2)$ -0.7%
First Data (Future Use)
Fiserv Inc. 70.97$ 82.83$ 11.86$ 3,018.3$ 16.7%
Global Cash Access Holdings 7.17$ 7.74$ 0.57$ 43.9$ 7.9%
Heartland Payment Systems 53.94$ 54.05$ 0.11$ 4.1$ 0.2%
Jack Henry & Associates 62.14$ 64.70$ 2.56$ 214.8$ 4.1%
MasterCard Worldwide 86.18$ 93.48$ 7.30$ 11,753.0$ 8.5%
MoneyGram International 9.09$ 9.19$ 0.10$ 5.8$ 1.1%
Total System Services 33.95$ 41.77$ 7.82$ 1,543.7$ 23.0%
Western Union 17.91$ 20.33$ 2.42$ 1,376.4$ 13.5%
Vantiv 33.95$ 39.19$ 5.24$ 1,299.4$ 15.4%
Visa 65.55$ 67.13$ 1.58$ 1,336.5$ 2.4%
.
Bitcoin Closing Price 315.95$ 265.20$ (50.75)$ -16.1%

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8
Interesting News This Quarter
Subject Source/Date Substance
Digital Currency regulation BI Intelligence
May
Startups and other promoters of digital currencies ought to be looking hard at California as the place
to set up operations. The CA Department of Business Oversight has ruled that it has the power to
regulate digital currencies but has opted not to exercise that right. Instead, CDBO suggests that the
California legislature ought to decide on how regulations should be formulated to control digital
money. Our Sacramento-based legislature being the best group of senators and assemblypersons
money can buy leaves the field of play wide open for anyone able to spell blockchain.
Instacart PYMNTS
June
Like the fast turn around delivery service provided by Instacart? Enjoy the prime servings of meal,
fish, and vegetables you get from Whole Foods? The next time you use Instacart to scrounge up
some goodies from Whole Foods, watch the screen closely. You’re going to be asked to opt in to a
personal data sharing program that asks you to share name and address, order details, and phone
numbers (you get to select which ones). Both of the players are mum on whom gets paid what by
who but rest assured, there’s money involved. A word to the wise.
PayNearMe TechCrunch
June
Where there’s smoke, there’s fire, they say. TechCrunch is reporting some smoke signals on the
horizon coming from the PayNearMe campsite. Seems the cash-to-online-payments firm recently
lost its relationshipwith Family Dollar, laid off a gaggle of employees, and may have come up short
on its recent round of funding. The company’s CEO claims the TC assertions are overly dire, as one
would expect. Too bad; the system needs companies like PNM to bring the underbanked segment a
bit closer to the nation’s payments flow and to supplement gaps in financial literacy. Hopefully,
smoke is all we’ll see.
Tango Card NEWSBTC
June
Rewards card processor, Tango Card is working with Amazon, Best Buy, Foot Locker and others
to provide a conversion metric between two shadow currencies – rewards points and Bitcoin.
Holders of Tango Card loyalty points can convert their gilt to Bitcoin via the SnapCard Bitcoin
wallet. In another twist of irony, cardholders can also earn Bitcoins through participation in
corporate wellness programs in 10,000 step increments. If only the airlines would play along, we
wouldn’t have to worry about blackout dates anymore.

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Interesting News This Quarter – Continued
Target CU Times
May
$19 million just doesn’t buy what it used to, it seems. Mega retailer, Target and MasterCard thought
they had a settlement with victims of the store’s huge pre-holiday 2013 data breach. Seems the card
issuers that took it on the chin because of Target’s lax security suffered more in losses than the
settlement provided. Round two of negotiations are underway now.
Google Finextra
April
Third-partydigital wallet provider, Google, steps up its game and efforts to win over bank-leaning
adherents by adding FDIC insurance to Google Wallet. Other payments aggregators like PayPal and
Venmo haven’t responded yet but neither player is going to want to post a CFPB notice on their
respective products stating that deposited funds are not insured. Just another bump in the rocky road to
mobile wallet supremacy.
Zapp Finextra
June
Proponents of the Fed’s Faster Payments initiative and Anglophiles alike ought to be keeping track of
what’s happeningin Englandwith Zapp. The day following Apple’s announcement that Apple Pay will
be in the UK soon, VocaLink unveiled its Pay By Bank application for mobile devices. Powered by that
country’s Faster Payments rails, Zapp will be accepted by Sainsbury’s, Asda, House of Fraser and others
while HSBC first direct, Nationwide, and Santander have agreed to imbed the Zapp widget within their
phone and tablet apps. Note that the Faster Payments rails in the UK run parallel to the Visa/MasterCard
conduits, making some issuers a bit nervous about lost interchange. Might the Fed’s Faster Payments
initiative wind up with the same end-state? Highly possible. Adios interchange in that case.
Walmart Finextra
May
True, Walmart-backed MCX is late to the market with its CurrenC mobile payments application. But
that doesn’t mean that the retailer is sitting idly by. Walmart is now working with Alibaba in China to
enable Alipay Wallet customers to use their mobile devices for purchases made in 25 stores in Shenzhen
with plans to roll the system out to all 410 locations in the country. Alibaba technology sounds
somewhat akin to CurrenC and is based on 2D barcode scanning. For its part, Walmart has had to make
virtually no changes to its in-store systems to enable the 190 million Alipay users to settle up.

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10
Diageo BI Intelligence
May
Diageo is the world’s largest producer of distilled spirits (booze) and the owner of the Johnnie Walker brand.
Connoisseurs of the JW Blue Label brand ($160/750ml) will soon note the addition of a tag containingan
antenna and integrated circuit. When scanned with a smartphone, the tag will broadcast sales information to
potential buyers. When the tag senses that the bottle has been opened, the messages change to sending drink
recipes. Seems a bit too much technology for suggesting that customers “add ice,” but what do we know?
(Sorry, just one of those stories that we couldn’t pass up.)
MasterCard Presser
June
The tokenization war is heating up. MasterCard announces an enhanced tokenization scheme for merchants to
overcome declines related to stored customer account numbers and expansion of the service to subscription
services, club dues, and utilities. Dubbed “MasterCard Digital EnhancementServices,” the system will soon be
opened to private label applications, eCommerce, and recurring bill card-on-file programs later this year. Next
up to bat: Visa.
Digital Wallets Petoskeynews
June
It looks like the battle lines for round two of the Digital Wallets war have been drawn. Round one, first to
market, was won by Apple. Round two is shaping up as a two-front endeavor with features and acceptance
points being two key differentiators. Apple is adding store-issued credit cards and a rewards program;
meanwhile, Google is playing the “me too” card, once the newest handset models are released, that is. Both
Apple and Google are knocking on retailers’ doors in an effort to get their solution wedged into already
overstuffed terminals (remember, we’re in the middle of the EMV rollout schedule). And, as noted elsewhere,
there’s the footrace to get vending machine deployers into the fold. We’re not picking a winner yet; watching
the race unfold is far more fun.
AdultFriendFinder PYMNTS
May
Yes, we said that we would leave discussions of merchant hacks to more credible writers but this one is too
good to pass up. Imagine being one of the 4 million members of AdultFriendFinder whose personal and
perhaps financial data was recently hacked. We suppose that the other 59 million users of the soft-sleaze site
are feeling a bit relieved that their penchant for non-traditionalrelationships is safely locked away in a safe spot.
For now. It’s not mind-easing to know that 48 hours after the hack, the data were available for download, in the
clear, no less.

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USPS Payments Source
June
Numerous countries utilize their postal services as banks but not the United States. (Well, not anymore.) Yet, if the
Inspector General has his way, the USPS will significantly expand its banking services in the future or become an
actual bank. The argument is relatively simple according to the postal service’s latest report: 68 million people in the
U.S. do not have full access to banking services and the USPS needs more revenue – pure market segmentation,
nothing more. The report suggests that $1.1 billion in fees could be generated over five years through the sale of bill
pay, international transfer, post office to post office transfers (the Western Union model), money orders, ATMs, and
check cashing services. With 31,000 retail locations, USPS as a bank could be an interesting competitor, once again.
(Older readers will remember the short-lived Postal Savings System (1911-1967) which actually took deposits, sold
certificates of deposit and savings stamps. Deposits peaked at $4 billion in 1947. Younger readers – Google it.)
Chase Bank PayNews
June
Speaking of the unbanked segment, Chase is taking a big step forward in its service delivery to that market by
retooling its “Liquid” prepaid card program. Liquid cardholders may now use the bank’s online bill payment service.
In the meantime, the bank has agreed to grant easier access to traditionalchecking accounts through modifications to
its screening process. Altruistic on Chase’s part? Not if you consider that the New York State Attorney General has
been twisting the bank’s tail (and that for others in the market) to expand banking services to the underserved
segment. Chase appears to be taking the lemons-to-lemonade approach while the others have merely capitulated
quietly.
Everlink PaymentEye
April
Everlink, the Canadian payments company recently invested in by CO-OP Financial Services, announces its “Lock N
Block” service for Interac debit cards (Interac is the dominate debit payments factor in Canada). Once users’ cards
are registered, cardholders can lock or unblock their debit cards depending on merchant location or status of the card.
Both iOS and Android (Samsung) operating systems are supported. Others do the same in the U.S. but at the FI level.
BankMobile Bank Innovation
May
Mobile-only financial institution, BankMobile, appears to be reversing its original position on branching but it may
only be a matter of semantics. What BankMobile is doing is staking out franchise operators on college campuses that
will act as brand ambassadors for this new approach to banking. New tools for BankMobile include a personal
financial management platform and educational twists designed to increase college student financial literacy. Bottom
line, BankMobile has learned that just being available in an app store isn’t going to be enough oomph to gain users
and use. A lesson we can all gain from.

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Nacha Business Wire
May
Nacha blinks when confronted by challenges to its proposed 8.2¢ fee for same day ACH transactions. Instead,
the price has been set at 5.2¢ for transactionsthat settle beginning with the first window of 10:00 a.m. PT. The
phased rollout will allow credits to flow first for hourly payroll, P2P, and same day bill payments. Phases 2 and
3 will open up utility, mortgage and credit card payments plus “instantaneous” payments that meet the 5:00 p.m.
local time window. How Same Day ACH will fit within the Fed Faster Payments roadmap has yet to be seen.
MasterCard Finextra
May
MasterCard launches MasterCard Send, a personal payments service that enables merchants to handle
payments to those who often deal in checks. The quasi-B2B service provides an electronic pathway for
insurance claims, rebates, social benefits and refunds, those traditionallyconstrained to paper check remittances.
MasterCard is using its debit rails and can thereby reach just about every debit card in the U.S., regardless of
branding. Great service; sadly, one that might get lost in the shuffle of comings and goings by Google, PayPal,
and Apple.
EMV Mobile Payments
Today
June
A new research report by IHL Group has a title “EMV: Retail’s $38 Billion Money Pit,” which just about says it
all. The report goes on to say that rather than focus on EMV, retailers ought to be emphasizinginvestments
which result in end-to-end encryption and tokenization. In addition to the frightfully large cost of new EMV-
ready terminals, merchants can expect to encounter five to eight seconds in transaction time increases, a labor
cost that can never be recaptured. Based on these research findings, we suspect that the Visa/MasterCard EMV
mandates and liability shift dates won’t do much to engender greater warmth between merchants and the card
brands.
Internet of Things BI Intelligence
May
Now that the battle for mobile payments supremacy has been denigrated to merely a fistfight between mobile
operating systems – after all, why bother with small matters like customer experience and merchant preferences
– we move on to the next war zone, the Internet of Things. The early combatants are IBM, Cisco, and Intel.
Newer warriors include Google, Apple, Samsung, and Microsoft. And, again, operating systems are at the
forefront of the fray. This go-round appears to be focused on who can make the lightest OS rather than the most
feature-rich. That follows, doesn’t it? After all, how much horsepower does a WiFi-connected baby monitor
need? Or a set of mood-altering Hue lights? Or, for that matter, anything associated with Apple’s highly
anticipated HomeKit platform? Google is about to launch Brillo, an IoT OS for small, single-task devices –
appliances, other home machines, and connected automobiles. Hopefully, Google and the others haven’t
thrown security over the side to skinny down these OS-lite platforms. Otherwise, we all are in deep yogurt, for
sure.

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13
M&A/Alliance Activity
Buyer/Investor Target Payments Emphasis Possible Strategy
CO-OP Financial
Services
Everlink
Payment
Services
Canadian transaction
processing
Credit union network and EFT processor, CO-OP acquires a majority
interest in Everlink along with minority shareholder Celero Solutions.
The move represents the first international expansion for CO-OP,
originally a southern California-based ATM network. Terms were
not disclosed. U.S.-based processor FIS had been an investor.
Blackstone and Carlyle NCR Banking devices Private equity firms Blackstone and Carlyle are teaming up on an
offer to purchase NCR for a reported $10 billion. If it happens, this
will be yet another round of ping pong for NCR investors who were
rewarded with a $7.5 billion payday in 1991. AT&T grew bored
with NCR and spun it off to then-current shareholders in 1996. The
market has taken some of the sizzle off this deal as NCR stock is
back to trading in its usual $30 range. Time will tell how this
transaction might impact ATM and POS device innovation. Clearly,
AT&T wasn’t much help.
Goldman Sachs Circle Bitcoin scheme Goldman Sachs and returning investors plop down $50 million to see
if Circle will be successful in its efforts to bring Bitcoins to the
common folk. Circle claims to have mastered the ability to maintain
a fungible relationship between Bitcoin and U.S. dollars at little or no
cost to the investor/holder of the respective currencies. In the
meantime, additional heavy money is being moved in the direction of
startups focused more on the opportunities afforded by blockchain
technology rather than Bitcoin value.
FTV Capital WePay Ecommerce payments WePay, the payments engine behind GoFundMe and Care.com,
raises $40 million from new and returning investors. The company
focuses on insuring that crowdfunding sites are legitimate and
insuring that donated funds reached their intended recipients. Must
be a need; WePay has raised $75 million thus far in its short history.

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M&A/Alliance Activity - Continued
Wellington
Management, New
Enterprise
Associates, Morgan
Creek Capital
Tabbedout Hospitality payments TrendWatch favorite, Tabbedout, ups its capital to $39 million through
Series C funding provided by newcomer Wellington and returning PE firms.
Tabbedout intends to use the new funds to expand user acquisition rates with
rewards campaigns and expansion into 20 new U.S. markets. New brand
partners interested in the data being tracked through Tabbedout systems
include Dos Equis, Heineken, and our dear friend Budweiser. Credit and
debit card data remains confidential throughout the data mining process
Tabbedout says.
IDEA Fund Partners,
Alerion Ventures,
Knoll Ventures,
Hallett Capital
CloudTags In-store data platforms CloudTags raises $2.0 million in expansion capital as it broadens its in-store
services for phone and tablet shoppers. Branded as “In-Store Remarketing,”
the service enables consumers to research products while shopping and to
opt-in for email product updates. The company touts a 20 percent click-
through rate back to the retailers’ websites for follow-up purchases.
Jim Pallotta,
RRE Ventures,
Liberty City
Ventures, Jay Jordon
II
ItBit Digital currency exchange Investors fund $25 million in new money to enable itBit to enter the U.S.
Customers of this new exchange will be relieved to know that funds will be
maintained in on-shore FDIC insured accounts and that the New York
Department of Finance will oversee operations of the trust designated for
holding investor funds. We think the Bitcoin blockchain market is getting a
little crowded and expect to see some consolidation in the next couple of
years. With well-heeled backers and gobs of capital already at hand, itBit
could be one of the survivors.

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15
Buyer/Investor Target Payments
Emphasis
Possible Strategy
Dead Pool Tugboat
Yards
Online barter system Around since, 2012, Tugboat Yards provided publishers and online content
developers with a way to use their subscription lists to barter for donations. It
worked with podcasters and e-zine publishers so well that Andreessen Horowitz
and Greylock Partners jumped in early. Along comes Facebook with a fat check
and pink slips. Tugboat has been shuttered with no announced plans for a
replacement service – FB branded or otherwise. Too bad; Tugboat offered a good
service for scribes like us.
IVP,
RRE Investors,
iGlobe Partners
NerdWallet Financial services
shopping mall
NerdWallet raises $64 million in its first round of funding, far more than it was
trawling for. The personal finance assistance site tailors credit card, insurance,
auto loan, and mortgage options to the specific needs of inquiring consumers. The
Board of Directors and Advisors include the likes of Joe Montana and Vikram
Pandit. Oh, and Arjan Schutte, too. The talent is definitely there. The question is
whether consumers know they’re in need of financial literacy and if they will seek
out the company’s website. Time will tell.
Matrix Partners PayRange Vending machine
payments
It’s not your father’s Coke machine anymore. Startup operator, PayRange, offers
a vending machine retrofit that uses Bluetooth to communicate with a mobile
phone app for product dispensing. Matrix and others invested $12 million in
Paresh Patel’s new hope for the vending machine industry. You may recall that
200,000 of Apple Pay’s initial 700,000 acceptance sites were vending machines.
No discussion provided by PayRange on security or cyber-skimming so we’ll just
have to wait and see.
Verizon SimplyTapp Mobile payments We now know that the lead investor of $5.9 million in new funds for SimplyTapp
was Verizon Ventures, also one of the Big Three behind Softcard (FKA Isis).
Seems like Verizon had been hedging its Softcard bet by promoting SimplyTapp’s
HCE-based alternative to using the NFC Secure Element staunchly supported by
Softcard and the other telco investors. Wonder if Verizon was the only nervous
telly?

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16
Mitek IDchecker Mobile capture Mitek, the company that literally started the mobile capture industry,
pays a mere $10.6 million for Netherlands-based IDchecker and its
“Strong ID” technology. Strong ID is used around the world to verify
customers against passports and other forms of official identification.
The IDchecker facial recognition systems should complement the work
Mitek has been doing recently the realm of KYC and innovative uses for
smartphone cameras. Nice, cheap, business combination.
MoneyStream H&R Block Personal financial
management
You knew it would only be a matter of time before new PFM providers
would emerge to challenge Mint now that it is part of the cozy Intuit
family. MoneyStream works via mobile applications on iPhone and
Android handsets and helps users tract historic and future payments.
H&R Block and others invest $3.2 million in MoneyStream for market
expansion and additional service development. Astute readers may
recall that Acorns, another PFM player, won a round of funding of over
$20 million last quarter. A trend, perhaps?
ANZ Shout for Good Social donations platform Here’s something we don’t see in the United States. Australian bank
ANZ acquires Shout for Good, a platform used by consumers to fund
donations to over 150 social benefit programs like Goodwill, pediatric
diabetics research, and the YWCA. Seems like a logical way for a
financial institution to promote crowdfunding for social betterment.
IDG Capital
Partners, CME
Group, and Seagate
Technology
Ripple Labs Cryptocurrency Ripple is pretty much avoiding the consumer play in cryptocurrency;
instead, the company is chasing the decrepit international money
transfers system in hopes of taking systemic friction out of it. Ripple has
its adherents as evidenced by the $28 million Series A funding it
received in May. The plan is to introduce IP technology to international
funds movement in much the same way we replaced twisted-pair copper
wires for ATMs two decades ago. About time.

Dorado Industries
(310) 544-1316
17
Pitney Bowes Borderfree International ecommerce Pitney Bowes pays $395 million for Borderfree, a major player in
international retail payments and logistics. Blue chip customers include
Bloomingdales, Macy’s, J. Crew and so on. Among other services,
Borderfree holds chargeback risk for its ecommerce customers.
Amazing what one can do with a postage meter cash cow.
PayPal Xoom International remittances PayPal takes a global expansion step forward and acquires Xoom, the
international remittances company with 1.3 million U.S.-based users and
presence in 37 countries. PayPal’s price of $890 million represents a 32
percent premium on Xoom’s current valuation. Despite the hefty price
tag, this is a pretty heady move for PayPal and its new CEO Dan
Schulman. Should put some pressure on Apple Pay and its two country
footprint.

Dorado Industries
(310) 544-1316
18
Useful Links for More Information
We threw a lot of new names out again this quarter. Here’s a list of links for you to
learn more.
Company Role Link
NerdWallet Financial services www.nerdwallet.com
PayRange Vending machine payments www.payrange.com
SimplyTapp Mobile payments (HCE) www.simplytapp.com
MoneyStream PFM platform www.moneystream.com
Circle Bitcoin for common folks www.circle.com
CO-OP Financial Services Credit union payments www.co-opfs.org
CloudTags In-store data tracking www.cloudtags.com
Mitek RDC and identity www.mitek.com
CU Wallet Mobile wallet www.cuwallet.com

Dorado Industries
(310) 544-1316
Back in the day!
19
Congratulations to Q1 2015 Back in the Day contest winners Jim Hayes
(old Cash Station) and Rob Myhre (just old.) Both remembered that Early
Warning Services started out as Star Chek before being spun out from Star
System, the San Diego-based ATM and EFT network. Guys, I promise,
your stuff is going into the mail this week!
Remember when we used to be able to accept a forecast
from Nilson or ATM & Debit News as Gospel? Sure, the
questions were simple then – “how many ATMs will ship next
year,” or “how much POS growth can we expect by the end of
the decade?” Maybe we were more interested in an answer
rather then the answer. Whatever.
Today, things are bit more complex, right? Business Insight
Intelligence was as amused as we were over the far-flung
results of these two surveys conducted by two different
groups at approximately the same time. Simple question:
“Apple Pay or PayPal?” Answer: “yes.”
No trivia question this quarter; we’re off to Baja to teach some
folks how to fish and won’t be around to read the answers.

Dorado Industries

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