This document provides a summary of articles from the September 1-5, 2014 issue of Payment Week. It discusses rumors that Apple may soon release an iPhone mobile wallet, security concerns being a barrier to digital wallet adoption, Home Depot warning customers of a potential data breach, and credit card companies stepping up security efforts in response to breaches. The document also briefly mentions other articles on mobile payments driving biometric authentication, the rebranding of the Isis mobile wallet to Softcard, and a travel agency beginning to accept digital currencies like Bitcoin, Litecoin and Dogecoin.
Payment Week - Andrew Barnes, Managing Director___PrepaidAndrew Barnes
Prepaid cardholders are among the top users of mobile payments in the US according to a new report. The report estimates that prepaid card transaction value will hit $274 billion by the end of 2014, an 11% increase from 2013. Young adults between ages 18-34, who have an average of 2.3 prepaid cards, are driving revenue growth in the prepaid market. Their spending and transaction volumes are higher than average, and they are embracing mobile payments.
Venmo was founded in 2007 by students at the University of Pennsylvania to allow money transfers via text messaging. It was acquired by Braintree in 2009 for $26.2 million and then by PayPal in 2013 for $800 million. Venmo has grown rapidly, reaching $16 billion in transfers by 2016 with over 141% year-over-year growth in users. Mobile payments have also grown significantly globally with major players like Alipay in China and M-Pesa in Africa revolutionizing payments. In the US, PayPal has led the expansion of mobile payments and digital wallets as smartphone ownership rises.
The document discusses a WPP event about the Internet of Things (IoT). It provides summaries of presentations by various speakers at the event about implications and opportunities of IoT for businesses and consumers. Key points discussed include how IoT will change retail, consumer expectations, privacy concerns, opportunities for data-driven personalization, and implications for jobs as things become smarter.
As we contemplate how to manage a tsunami of data, wearable devices are rendering technology invisible. Smaller, faster computers and microchips, tracking and measuring metrics in real-time are revolutionizing how we connect with the world.
Fashion-forward designs, developed to crunch and interpret the numbers faster than we are able to collect them, are analyzing biometrics through everything, from our eyewear to our underwear.
The wearable computing market is expected to hit $19 billion by 2018. And it’s no surprise that our co-evolution with technology is becoming the bridge between mobile communication and the Internet of Things.
Data’s ubiquity – whether push, pull or ambient – can be harnessed for efficiency, knowledge, and utility. This enables us to reframe the least renewable of all elements, time itself.
The Internet of Everything and The Quantified Self
By 2020, analysts predict that we’ll be digitally connected to everything around us. Microchips, sensors, and batteries are shifting devices from our desks, out of our hands and pockets, onto our bodies.
The ongoing capture and analysis of data enhances our self-knowledge, informing The Quantified Self, and drives The Internet of Everything, an evolving digital ecosystem. In the future objects will receive data and respond seamlessly ...the refrigerator that delivers a glass of water based on your hydration level; rooms that self-control their energy output based on who is in them; locks that open as you approach, and smart slippers that detect a fall.
In this shifting paradigm of the observer and the observed, traditional industry verticals, such as health telecommunications, automotive, and entertainment will merge into cross-functional, user-centric innovations.
Author Jeremy Rifkin describes this change as the powerful Third Industrial Revolution. People, machines and every aspect of our work and social lives are connected by big data, advanced analytics and predictive algorithms. If we stay on track, we are headed towards economies powering smarter cities, efficient business, streamlined manufacturing, and renewable energy sources. It began with the Internet and continues with the promise of our wearable future, realized by some of the following innovations.
In this edition, we're covering:
RISE OF THE MACHINES • THE PRIVACY PARADOX VISIONS OF EXPERIENCE • NEW CARD TRICKS • MADE TO ORDER • CLASSIC/REFINED, CONTEMPORARY/DEFINED
Mobile payment options will expand in 2011, allowing consumers to pay for goods and services using their mobile phones through technologies like near field communication. Hands-free feedback loops will grow, using sensors and location data to provide personalized deals, health insights, and other automated services to users. Apps will also move beyond phones and tablets, dominating new hardware categories like cars and home electronics as companies integrate app platforms. Finally, the line between online and television content will continue to blur as more users access internet-based entertainment through connected TVs and devices that sign users into personalized online experiences.
Payment Week - Andrew Barnes, Managing Director___CashstarAndrew Barnes
This article discusses how Bluetooth Low Energy (BLE) technology could enable new contactless payment methods at retail stores. BLE allows smartphones to detect signals from antennas installed at stores. Partnerships between stores and payment companies like Apple or PayPal could allow customers to pay for in-store purchases by authorizing payments through mobile apps on their BLE-enabled phones without physical card interaction. The technology has potential benefits for customers, merchants, and payment providers in driving new payment and marketing ecosystems. However, payment networks may view it as a threat if it bypasses their existing models.
Payment Week - Andrew Barnes, Managing Director___PrepaidAndrew Barnes
Prepaid cardholders are among the top users of mobile payments in the US according to a new report. The report estimates that prepaid card transaction value will hit $274 billion by the end of 2014, an 11% increase from 2013. Young adults between ages 18-34, who have an average of 2.3 prepaid cards, are driving revenue growth in the prepaid market. Their spending and transaction volumes are higher than average, and they are embracing mobile payments.
Venmo was founded in 2007 by students at the University of Pennsylvania to allow money transfers via text messaging. It was acquired by Braintree in 2009 for $26.2 million and then by PayPal in 2013 for $800 million. Venmo has grown rapidly, reaching $16 billion in transfers by 2016 with over 141% year-over-year growth in users. Mobile payments have also grown significantly globally with major players like Alipay in China and M-Pesa in Africa revolutionizing payments. In the US, PayPal has led the expansion of mobile payments and digital wallets as smartphone ownership rises.
The document discusses a WPP event about the Internet of Things (IoT). It provides summaries of presentations by various speakers at the event about implications and opportunities of IoT for businesses and consumers. Key points discussed include how IoT will change retail, consumer expectations, privacy concerns, opportunities for data-driven personalization, and implications for jobs as things become smarter.
As we contemplate how to manage a tsunami of data, wearable devices are rendering technology invisible. Smaller, faster computers and microchips, tracking and measuring metrics in real-time are revolutionizing how we connect with the world.
Fashion-forward designs, developed to crunch and interpret the numbers faster than we are able to collect them, are analyzing biometrics through everything, from our eyewear to our underwear.
The wearable computing market is expected to hit $19 billion by 2018. And it’s no surprise that our co-evolution with technology is becoming the bridge between mobile communication and the Internet of Things.
Data’s ubiquity – whether push, pull or ambient – can be harnessed for efficiency, knowledge, and utility. This enables us to reframe the least renewable of all elements, time itself.
The Internet of Everything and The Quantified Self
By 2020, analysts predict that we’ll be digitally connected to everything around us. Microchips, sensors, and batteries are shifting devices from our desks, out of our hands and pockets, onto our bodies.
The ongoing capture and analysis of data enhances our self-knowledge, informing The Quantified Self, and drives The Internet of Everything, an evolving digital ecosystem. In the future objects will receive data and respond seamlessly ...the refrigerator that delivers a glass of water based on your hydration level; rooms that self-control their energy output based on who is in them; locks that open as you approach, and smart slippers that detect a fall.
In this shifting paradigm of the observer and the observed, traditional industry verticals, such as health telecommunications, automotive, and entertainment will merge into cross-functional, user-centric innovations.
Author Jeremy Rifkin describes this change as the powerful Third Industrial Revolution. People, machines and every aspect of our work and social lives are connected by big data, advanced analytics and predictive algorithms. If we stay on track, we are headed towards economies powering smarter cities, efficient business, streamlined manufacturing, and renewable energy sources. It began with the Internet and continues with the promise of our wearable future, realized by some of the following innovations.
In this edition, we're covering:
RISE OF THE MACHINES • THE PRIVACY PARADOX VISIONS OF EXPERIENCE • NEW CARD TRICKS • MADE TO ORDER • CLASSIC/REFINED, CONTEMPORARY/DEFINED
Mobile payment options will expand in 2011, allowing consumers to pay for goods and services using their mobile phones through technologies like near field communication. Hands-free feedback loops will grow, using sensors and location data to provide personalized deals, health insights, and other automated services to users. Apps will also move beyond phones and tablets, dominating new hardware categories like cars and home electronics as companies integrate app platforms. Finally, the line between online and television content will continue to blur as more users access internet-based entertainment through connected TVs and devices that sign users into personalized online experiences.
Payment Week - Andrew Barnes, Managing Director___CashstarAndrew Barnes
This article discusses how Bluetooth Low Energy (BLE) technology could enable new contactless payment methods at retail stores. BLE allows smartphones to detect signals from antennas installed at stores. Partnerships between stores and payment companies like Apple or PayPal could allow customers to pay for in-store purchases by authorizing payments through mobile apps on their BLE-enabled phones without physical card interaction. The technology has potential benefits for customers, merchants, and payment providers in driving new payment and marketing ecosystems. However, payment networks may view it as a threat if it bypasses their existing models.
Disruption in financial services GAMA ELC by Pranav Pasrichaintellectseec
The document discusses disruption in the financial services industry from emerging technologies. It notes that the future is already here but unevenly distributed, and that adaptation to change is key to survival. Emerging technologies like the internet of things, artificial intelligence, drones, and driverless cars will disrupt insurance by changing risks and risk assessment. New entrants from technology companies also threaten traditional insurers. The manual and subjective nature of insurance underwriting is inefficient and will be replaced by big data and AI that can automatically analyze vast amounts of information.
When consumers perceive value from using the Internet of Things (IoT) devices and applications, the trend will quickly create a new market. To read the entire article published in HITEC 2016 Special Report, please click here: The Future of IoT in Hospitality, By Dr. Aluri (pp. 18-21).
State of the internet of things (IoT) market 2016 editionPrayukth K V
2015 was the year IoT gained legitimacy.
Businesses budged off a “start small think big” mindset.
In 2016, they’re building IoT into future strategies and
business models. Companies across all industries now
have IoT squarely on their radar. The worldwide Internet
of Things market spend will grow from $591.7 billion
in 2014 to $1.3 trillion in 2019 with a compound annual
growth rate of 17%. The installed base of IoT endpoints
will grow from 9.7 billion in 2014 to more than 25.6 billion
in 2019, hitting 30 billion in 20201.
TechPay is a software company that has developed SwiftPay, a mobile payment platform for grocery stores and supermarkets. SwiftPay allows customers to scan loyalty cards, create shopping lists, and scan coupons on their mobile device. It processes payments and sends receipts via email. TechPay sees the mobile payment space growing significantly in the next 5 years and aims to partner with retailers and credit card processors to integrate SwiftPay into existing point-of-sale systems. Their marketing strategy involves branding with celebrity spokesperson Kathy Ireland and promoting SwiftPay's benefits to both customers and merchants for a more streamlined shopping experience.
revista Vritti+edition+6 - mahindracomviva Imix Colombia
Le compartimos una de las ediciones de la revista Vritti con artículos y contenido de interés que cubren NFC (Near field communication), IOT (Internet of things) internet de las cosas, en donde también podrá ver cómo se comporta el crecimiento del mercado de la billetera móvil en Oriente Medio y el papel del dinero móvil en la rehabilitación de los refugiados en las zonas de conflicto. #BilleteraMóvil
The 8 Biggest Retail Trends Every Retailer Needs To Be Ready ForBernard Marr
To continue to connect with customers, retailers need to be ready to adapt to the latest worldwide shopping shifts. Here are eight trends retailers should watch.
2014 Tech Predictions by Daily Deal BuilderMarc Horne
2014 Tech Predictions: 8 Predictions for the eCommerce, Coupon, and Daily Deal Industries in 2014 by http://dailydealbuilder.com.
Question? Comments? Concerns? Press?
Email support@hcdesk.com.
Looks at why mobile payments hasn't taken off in most places around the world and what has to happen for mobile payment platforms to ignite. Keynote presentation at the Berkeley Mobile Money Conference on October 11, 2013
Technology tech trends 2022 and beyond Brian Pichman
It's that time of year again, where we get to look ahead and finally have some good news. Tech enthusiast Brian Pichman of the Evolve Project will showcase the latest technology trends and how that impact our learning spaces and spaces at home. It is guaranteed to make you forget about all of 2020 and 2021....well maybe that's a new technology about to be released, the MIB memory eraser. Join this exciting webinar and leave with some high hopes of new technology to explore!
OgilvyOne London's Digital Labs presents a comprehensive report about this year's Consumer Electronic Show that took place in Las Vegas. For the third year in a row, the London Labs attended the show with an aim to scan, scope out and bring back the latest and most exciting technologies and trends that will have most impact in the ever-expanding business and consumer technology market. These findings help inform the predictions we make for our clients about potential future commercial application, and the potential use of those trends within the Marketing and Communication space.
This is an abridged version of the 124-page report. Go to JWTIntelligence.com/trendletters to see the full report, including recommendations for brands
JWT’s third annual report on trends in the mobile sphere spotlights key themes that came out of this year’s Mobile World Congress, Consumer Electronics Show and South by Southwest Interactive, and builds on trends spotlighted in previous reports. The report covers significant drivers and manifestations of these developments, and their implications for brands. “10 Mobile Trends for 2014 and Beyond” is based around on-the-ground research at the MWC in Barcelona and SXSW in Austin, as well as desk research and insights gleaned from interviews with several mobile experts and influencers.
An overview of the mobile wallets in China, we have gathered relevant research to assess the current state and future potential of mobile wallets in China that marketers should know-including the prominent wallet types, usage trends, key challenges and future prospects.
Smartphone Tracking Data And Artificial Intelligence Turn People’s Movements ...Bernard Marr
Cosmose AI provides deep insights into the offline shopping behaviors of consumers that helped support retailers during the COVID-19 pandemic and to prepare for a post-pandemic future. Using anonymized data from smartphones, more than 400,000 apps, and 360,000 stores, Cosmose AI provides services and insights to retailers previously only available for online experiences.
This document discusses emerging mobile themes that could impact financial services. It covers key themes like the internet of things (IoT), smart watches, and mobile payments. For IoT, it describes how connected devices are growing rapidly and could allow new types of personal insurance policies and banking services. Smart watches are presented as another connected device that could enable quick access to financial account information. Mobile payments are also growing significantly through mobile applications, with mobile expected to surpass cash usage globally. Financial institutions will need to ensure optimal mobile checkout experiences and maintain customer relationships as new players like Apple and Google enable payments.
UX Design for Mobile Payment ExperiencesSkip Allums
O'Reilly Webcast: Oct 14, 2014
With mobile devices emerging as new tools for transactions and identification, designers face challenging interactions and user expectations from payment scenarios. Consumers expect mobile payment experiences to be frictionless and familiar, while faithfully protecting their financial data. Falling short on any of these aspects will cause users to drop out, or worse, compromise their financial privacy. In this webcast, we'll look at ten emerging UX design best practices for mobile payment interactions.
References:
Apps mentioned:
http://www.paywithisis.com
http://www.squareup.com
https://www.google.com/wallet/
https://www.venmo.com
http://www.thelevelup.com
http://www.capitalone.com/online-banking/mobile/wallet/
https://www.lyft.com/
https://www.groupon.com
https://www.uber.com/
https://www.coinbase.com/
https://www.simple.com/
https://www.paypal.com/
https://www.apple.com/iphone-6/apple-pay/
http://www.starbucks.com/coffeehouse/mobile-apps/mystarbucks
Merchant Category codes
http://www.irs.gov/irb/2004-31_IRB/ar17.html#d0e1647
PCI DSS Compliance
https://www.pcisecuritystandards.org/security_standards/documents.php?document=pci_dss_v2-0#pci_dss_v2-0
Payment Week - Andrew Barnes, Managing Director___GemaltoAndrew Barnes
This document summarizes several emerging payment stories from August 4-8, 2014. It discusses a new mobile app called JumpQ that allows customers to scan grocery items and pay ahead of time to speed up checkout. It also covers Apple working on a mobile payments platform to be launched with the new iPhone, and hackers stealing over 1 billion usernames and passwords from websites. Additionally, it mentions P.F. Chang's disclosing a security breach that impacted 33 restaurants, and Money20/20 introducing a payments hackathon. Finally, it discusses Robocoin upgrading its bitcoin ATM platform, Global Payments partnering with BitPay to accept bitcoin, and a new app that locks debit cards for added security.
One of the world’s largest mobile events, Mobile World Congress typically serves as a platform for unveiling new innovation and disruption in the space, and setting trends for the year. This year's congress was no exception
Mobile World Congress 2015 was bigger than ever with 93,000 attendees. In this presentation we've collated the top five trends we saw at the event and have provided insight into the implications of each for brands and the future of the industry.
This document discusses several popular mobile payment systems: Google Wallet, PayPal, and Apple Pay. Google Wallet allows users to store credit cards and loyalty cards on their phone to make purchases online and in stores. PayPal is widely used for e-commerce and allows linking a bank account or credit cards to make one-tap purchases. Apple Pay launched with the iPhone 6 and Apple Watch, using tokenization and Touch ID/Apple Watch sensors for security. It aims to replace physical wallets and can be used anywhere contactless payments are accepted.
The payments and currency systems are on the verge of disruption. Payments are getting digitized and going mobile, wearable and biometric, while the rise of cryptocurrencies is prompting new ideas about what currency can be. Millennials, not wedded to the status quo when it comes to money, will drive this shift. This report takes a look at the myriad new ways to pay and how the concept of currency is evolving to encompass everything from bitcoin to social media shares. We also spotlight how disruption is opening the way for new players to act as middlemen between consumers and their money, along with results of a survey exploring U.S. and U.K. consumer attitudes toward payments and currency.
Note: This is an abridged version of the 62-page report. Go to JWTIntelligence.com/trendletters to download the full report at no cost.
The document discusses emerging payment technologies including mobile wallets, wearable payment devices, and biometric payments. Mobile wallets allow users to pay using their smartphones and have seen significant adoption worldwide with over 200 million active accounts. Wearable payment options include smartwatches and wristbands that enable tap-to-pay. Biometric authentication through fingerprints and other identifiers improves security while maintaining convenience. New players like technology companies are also entering the payments space and may challenge traditional banks.
Disruption in financial services GAMA ELC by Pranav Pasrichaintellectseec
The document discusses disruption in the financial services industry from emerging technologies. It notes that the future is already here but unevenly distributed, and that adaptation to change is key to survival. Emerging technologies like the internet of things, artificial intelligence, drones, and driverless cars will disrupt insurance by changing risks and risk assessment. New entrants from technology companies also threaten traditional insurers. The manual and subjective nature of insurance underwriting is inefficient and will be replaced by big data and AI that can automatically analyze vast amounts of information.
When consumers perceive value from using the Internet of Things (IoT) devices and applications, the trend will quickly create a new market. To read the entire article published in HITEC 2016 Special Report, please click here: The Future of IoT in Hospitality, By Dr. Aluri (pp. 18-21).
State of the internet of things (IoT) market 2016 editionPrayukth K V
2015 was the year IoT gained legitimacy.
Businesses budged off a “start small think big” mindset.
In 2016, they’re building IoT into future strategies and
business models. Companies across all industries now
have IoT squarely on their radar. The worldwide Internet
of Things market spend will grow from $591.7 billion
in 2014 to $1.3 trillion in 2019 with a compound annual
growth rate of 17%. The installed base of IoT endpoints
will grow from 9.7 billion in 2014 to more than 25.6 billion
in 2019, hitting 30 billion in 20201.
TechPay is a software company that has developed SwiftPay, a mobile payment platform for grocery stores and supermarkets. SwiftPay allows customers to scan loyalty cards, create shopping lists, and scan coupons on their mobile device. It processes payments and sends receipts via email. TechPay sees the mobile payment space growing significantly in the next 5 years and aims to partner with retailers and credit card processors to integrate SwiftPay into existing point-of-sale systems. Their marketing strategy involves branding with celebrity spokesperson Kathy Ireland and promoting SwiftPay's benefits to both customers and merchants for a more streamlined shopping experience.
revista Vritti+edition+6 - mahindracomviva Imix Colombia
Le compartimos una de las ediciones de la revista Vritti con artículos y contenido de interés que cubren NFC (Near field communication), IOT (Internet of things) internet de las cosas, en donde también podrá ver cómo se comporta el crecimiento del mercado de la billetera móvil en Oriente Medio y el papel del dinero móvil en la rehabilitación de los refugiados en las zonas de conflicto. #BilleteraMóvil
The 8 Biggest Retail Trends Every Retailer Needs To Be Ready ForBernard Marr
To continue to connect with customers, retailers need to be ready to adapt to the latest worldwide shopping shifts. Here are eight trends retailers should watch.
2014 Tech Predictions by Daily Deal BuilderMarc Horne
2014 Tech Predictions: 8 Predictions for the eCommerce, Coupon, and Daily Deal Industries in 2014 by http://dailydealbuilder.com.
Question? Comments? Concerns? Press?
Email support@hcdesk.com.
Looks at why mobile payments hasn't taken off in most places around the world and what has to happen for mobile payment platforms to ignite. Keynote presentation at the Berkeley Mobile Money Conference on October 11, 2013
Technology tech trends 2022 and beyond Brian Pichman
It's that time of year again, where we get to look ahead and finally have some good news. Tech enthusiast Brian Pichman of the Evolve Project will showcase the latest technology trends and how that impact our learning spaces and spaces at home. It is guaranteed to make you forget about all of 2020 and 2021....well maybe that's a new technology about to be released, the MIB memory eraser. Join this exciting webinar and leave with some high hopes of new technology to explore!
OgilvyOne London's Digital Labs presents a comprehensive report about this year's Consumer Electronic Show that took place in Las Vegas. For the third year in a row, the London Labs attended the show with an aim to scan, scope out and bring back the latest and most exciting technologies and trends that will have most impact in the ever-expanding business and consumer technology market. These findings help inform the predictions we make for our clients about potential future commercial application, and the potential use of those trends within the Marketing and Communication space.
This is an abridged version of the 124-page report. Go to JWTIntelligence.com/trendletters to see the full report, including recommendations for brands
JWT’s third annual report on trends in the mobile sphere spotlights key themes that came out of this year’s Mobile World Congress, Consumer Electronics Show and South by Southwest Interactive, and builds on trends spotlighted in previous reports. The report covers significant drivers and manifestations of these developments, and their implications for brands. “10 Mobile Trends for 2014 and Beyond” is based around on-the-ground research at the MWC in Barcelona and SXSW in Austin, as well as desk research and insights gleaned from interviews with several mobile experts and influencers.
An overview of the mobile wallets in China, we have gathered relevant research to assess the current state and future potential of mobile wallets in China that marketers should know-including the prominent wallet types, usage trends, key challenges and future prospects.
Smartphone Tracking Data And Artificial Intelligence Turn People’s Movements ...Bernard Marr
Cosmose AI provides deep insights into the offline shopping behaviors of consumers that helped support retailers during the COVID-19 pandemic and to prepare for a post-pandemic future. Using anonymized data from smartphones, more than 400,000 apps, and 360,000 stores, Cosmose AI provides services and insights to retailers previously only available for online experiences.
This document discusses emerging mobile themes that could impact financial services. It covers key themes like the internet of things (IoT), smart watches, and mobile payments. For IoT, it describes how connected devices are growing rapidly and could allow new types of personal insurance policies and banking services. Smart watches are presented as another connected device that could enable quick access to financial account information. Mobile payments are also growing significantly through mobile applications, with mobile expected to surpass cash usage globally. Financial institutions will need to ensure optimal mobile checkout experiences and maintain customer relationships as new players like Apple and Google enable payments.
UX Design for Mobile Payment ExperiencesSkip Allums
O'Reilly Webcast: Oct 14, 2014
With mobile devices emerging as new tools for transactions and identification, designers face challenging interactions and user expectations from payment scenarios. Consumers expect mobile payment experiences to be frictionless and familiar, while faithfully protecting their financial data. Falling short on any of these aspects will cause users to drop out, or worse, compromise their financial privacy. In this webcast, we'll look at ten emerging UX design best practices for mobile payment interactions.
References:
Apps mentioned:
http://www.paywithisis.com
http://www.squareup.com
https://www.google.com/wallet/
https://www.venmo.com
http://www.thelevelup.com
http://www.capitalone.com/online-banking/mobile/wallet/
https://www.lyft.com/
https://www.groupon.com
https://www.uber.com/
https://www.coinbase.com/
https://www.simple.com/
https://www.paypal.com/
https://www.apple.com/iphone-6/apple-pay/
http://www.starbucks.com/coffeehouse/mobile-apps/mystarbucks
Merchant Category codes
http://www.irs.gov/irb/2004-31_IRB/ar17.html#d0e1647
PCI DSS Compliance
https://www.pcisecuritystandards.org/security_standards/documents.php?document=pci_dss_v2-0#pci_dss_v2-0
Payment Week - Andrew Barnes, Managing Director___GemaltoAndrew Barnes
This document summarizes several emerging payment stories from August 4-8, 2014. It discusses a new mobile app called JumpQ that allows customers to scan grocery items and pay ahead of time to speed up checkout. It also covers Apple working on a mobile payments platform to be launched with the new iPhone, and hackers stealing over 1 billion usernames and passwords from websites. Additionally, it mentions P.F. Chang's disclosing a security breach that impacted 33 restaurants, and Money20/20 introducing a payments hackathon. Finally, it discusses Robocoin upgrading its bitcoin ATM platform, Global Payments partnering with BitPay to accept bitcoin, and a new app that locks debit cards for added security.
One of the world’s largest mobile events, Mobile World Congress typically serves as a platform for unveiling new innovation and disruption in the space, and setting trends for the year. This year's congress was no exception
Mobile World Congress 2015 was bigger than ever with 93,000 attendees. In this presentation we've collated the top five trends we saw at the event and have provided insight into the implications of each for brands and the future of the industry.
This document discusses several popular mobile payment systems: Google Wallet, PayPal, and Apple Pay. Google Wallet allows users to store credit cards and loyalty cards on their phone to make purchases online and in stores. PayPal is widely used for e-commerce and allows linking a bank account or credit cards to make one-tap purchases. Apple Pay launched with the iPhone 6 and Apple Watch, using tokenization and Touch ID/Apple Watch sensors for security. It aims to replace physical wallets and can be used anywhere contactless payments are accepted.
The payments and currency systems are on the verge of disruption. Payments are getting digitized and going mobile, wearable and biometric, while the rise of cryptocurrencies is prompting new ideas about what currency can be. Millennials, not wedded to the status quo when it comes to money, will drive this shift. This report takes a look at the myriad new ways to pay and how the concept of currency is evolving to encompass everything from bitcoin to social media shares. We also spotlight how disruption is opening the way for new players to act as middlemen between consumers and their money, along with results of a survey exploring U.S. and U.K. consumer attitudes toward payments and currency.
Note: This is an abridged version of the 62-page report. Go to JWTIntelligence.com/trendletters to download the full report at no cost.
The document discusses emerging payment technologies including mobile wallets, wearable payment devices, and biometric payments. Mobile wallets allow users to pay using their smartphones and have seen significant adoption worldwide with over 200 million active accounts. Wearable payment options include smartwatches and wristbands that enable tap-to-pay. Biometric authentication through fingerprints and other identifiers improves security while maintaining convenience. New players like technology companies are also entering the payments space and may challenge traditional banks.
The whitepaper presents a holistic view of the digital retail space. It decodes the impact of technologies like NFC, Beacons and Apple Pay while giving a glimpse into trends and challenges associated with m-Commerce.
Mobile wallets are digital versions of traditional wallets that store credit/debit card and loyalty program information that can be accessed via a smartphone app. While adoption has been slow in developed countries, mobile wallets are growing rapidly in developing nations and where many lack bank accounts. A survey in Bangladesh found that while 74% were unfamiliar with mobile wallets, 70% believed they will feel more comfortable using mobile wallets than traditional cards, though 55% cited security concerns. As technology advances and security improves, mobile wallets are expected to continue gaining widespread use globally.
POV: The Present and Future of Mobile PaymentIPG Media Lab
With the introduction of Apple Pay, mobile payment is poised to hit the mainstream. The general public feels optimistic about its future, too. Survey reveals that over two-thirds of people believed that it’s likely that mobile payments will become a major way people make payments in stores in the next five years.
But look around. Hardly anyone you know is paying with their smartphones. Why?
Find out the reasons and more about mobile payment by reading our newest POV here.
Tap to Pay transactions are inherently secure. The best payment processor employs technologies such as tokenization and encryption to protect sensitive information, reducing the risk of fraud. To know more about this visit: https://webpays.com/payment-processing-companies.html
In what ways have smart phones that incorporate wireless technologie.docxvickeryr87
In what ways have smart phones that incorporate wireless technologies changed the business landscape?
In what ways have smart phones that incorporate wireless technologies changed the business landscape? Please give examples... Also please use the reading material below
Customers today are in more of a hurry than ever before. To satisfy them and keep their business, retailers are looking for strategies to speed up the checkout process and improve the overall customer experience. One strategy is to use customers’ smartphones as a replacement for credit and debit cards. Instead of swiping a plastic card at the checkout counter, consumers merely wave their phones a few inches above a payment terminal. This process uses a contact-free technology called near-field communications (NFC). The technology described in the preceding paragraph, known as the mobile wallet, is already being installed on millions of phones in both the United States and overseas. However, wide adoption of this technology in the United States is being hindered by a major battle among large corporations that represent different components of the online commerce industry. In one camp are the established credit card companies such as MasterCard, Visa, and American Express, in alliance with the banks that actually issue the cards to customers. The goal of these businesses is to maintain their traditional position at the center of any payment system and to continue to collect fees from merchants. However, they are facing intense competition from the other camp, which consists of technology companies such as Google and PayPal whose goal is to become major players in the new payment system. In addition, Apple and the mobile carriers such as Verizon, AT&T, and T-Mobile form a third camp that want to collect fees through their own control of the phones. Adding to the competitive mix are individual companies such as Starbucks that are developing proprietary mobile wallet technologies. In the middle of this corporate battleground are the retailers, who may yet be the deciding factor in determining who wins the payment battle. To take advantage of mobile wallet technology, retailers have to install terminals that accept mobile payments. One final concerned party consists of consumer advocates, who are concerned that a mobile system would bring higher fees, which would ultimately be passed on to the customers. The stakes in this competition are enormous because the small fees generated every time consumers swipe their cards add up to tens of billions of dollars of annual revenue in the United States alone. This revenue, of course, goes straight into the pocket of whoever controls the payment system. Before any individual company makes money, all of companies involved in electronic commerce need to sort out what role each one will play and who will collect the lucrative transaction fees from retailers. A Variety of
Solution
s Mobile Phone Carriers. In 2010, three of the four big mobi.
The mobile payments market is rapidly changing as new technologies emerge. A study analyzed over 200 million opinions to determine the most influential companies, executives, and events shaping conversations around digital mobile payments. PayPal and Apple have the highest influence scores while traditional payment providers like Visa are absent. International banks and wireless carriers also demonstrate more influence than US firms. An analysis of business news events found that while Apple's announcement of interest in mobile payments was the most influential, it generated only moderate reaction compared to other technology news.
360i's 2015 International CES Hot List provides a comprehensive recap and essential takeaways from 2015 International CES. On the showroom floor this year marketers saw first-hand the dawn of the Connected Age, a new era of marketing powered by more accessible, affordable and applicable consumer technology
innovations that are changing consumer behavior and transforming brand marketing.
From connected homes to virtual reality, the following report provides an overview of the top trends and technologies from this year’s CES to help marketers position their brands for the future.
U.S. mobile payments are projected to grow substantially over the next few years, reaching $214 billion by 2015. Major mobile carriers have announced a mobile payments venture called Isis to allow contactless payments from mobile phones using near field communications (NFC) technology. While NFC technology and mobile payments show promise, merchants and consumers have been slow to adopt new systems due to technical and coordination challenges.
Mobile commerce (mCommerce) saw significant growth in 2011 and retailers are scrambling to adapt. New mobile payment services like Square and Google Wallet allow customers to pay for purchases directly from their smartphones. Retailers are experimenting with mobile strategies like QR codes and mobile apps to enhance the shopping experience. While mCommerce is still developing, responsive design can help brands provide consistent experiences across devices and platforms.
Digital Wallets: The Next Frontier for Consumer Engagement.pdfMaryLague1
This presentation explores how digital wallets are becoming our new super apps, going beyond payments into power ecosystems for consumer data and engagement
Mobile Wallets In China: What You Need To Know Mark Opao
Sooner or later, mobile wallets will become a norm rather than a trend in the way we do payments in China, online or offline. In this report we have gathered relevant research to assess the current state and future potential of mobile wallets in China that marketers should know- including the prominent wallet types, usage trends, key challenges and future prospects.
In October 2014, when Apple debuted its iPhone 6 with an electronic wallet called Apple Pay, people immediately began to wonder whether it would overtake its competitors in the mobile payments business. The company has an impressive track record of releasing products and technologies that quickly disrupt and dominate markets. Nearly a year and well over 100 million iPhone 6 sales later, Apple Pay has emerged as the clear leader — but we’re still waiting for disruption. Smartphones have yet to displace cash or credit cards at the retail point of sale.
Countless mobile payment systems are active today — Apple Pay, Google Wallet, the Merchant Customer Exchange (MCX) CurrentC platform, and so on — but none has yet gained significant traction with merchants or consumers or become the standard for mobile transactions. And none of them look likely to seize that role for a while.
This document discusses how near field communication (NFC) technology and digital wallets are revolutionizing payment processes. It describes how NFC allows contactless payment through smartphones by tapping them at payment terminals. Major players Apple and Google both offer digital wallets using NFC through Apple Pay and Google Wallet, respectively. While Apple Pay currently dominates the market, Google Wallet is working to gain market share. The document also explores potential future applications of NFC technology beyond payments in areas like smart home devices and healthcare information tracking.
Similar to Payment Week - Andrew Barnes, Managing Director___First Data (20)
This document provides information on commercial real estate brokerage services for petroleum and convenience store properties. It lists contact information for brokers Andrew Barnes and Phillip Bonina and their focus on properties in various US cities. It then provides details on 14 specific commercial properties for sale or lease, including addresses, sizes, years built, parking information and traffic/demographic data. It also includes diagrams outlining the company's marketing and sales processes.
This report summarizes single-tenant commercial real estate transaction data from Q4 2012. Some key findings include:
- Total transaction volume was $28.2 billion over the past 12 months, a 16% increase from the previous year. Cap rates averaged 7.34% over this period, down slightly from the previous year.
- Retail properties saw the largest volume growth at 13% over the past year to $6.8 billion, while cap rates averaged 6.78%, down 51 basis points. Industrial properties had more modest 7% volume growth to $9 billion with cap rates averaging 7.88%, down 12 basis points.
- Office properties had the highest cap rates at 7.8% on average
This document from Stan Johnson Company provides broker opinions of value for commercial real estate properties with various credit ratings, lease terms, and pricing averages from September 2012 to April 2013. Credit ratings range from AAA to B- for properties with net lease terms of 10 to 25 years and rental escalations of 0-12% every 5 years. Average pricing ranges from 5.52-8.42% and trends downward over the periods listed.
This document from Stan Johnson Company provides broker opinions of value for commercial real estate properties with various credit ratings, lease terms, and pricing averages from September 2012 to April 2013. Credit ratings range from AAA to B- for properties with net lease terms of 10 to 25 years and pricing increases of 0-12% every 5 years. Average pricing ranges from 5.52-8.42% and trends downward over the periods listed.
Stan Johnson Company provides brokerage and advisory services for petroleum and convenience store real estate. They help clients grow their business through sale-leaseback transactions, acquisitions, and developing new sites. Sale-leaseback transactions allow clients to generate capital by selling the underlying real estate while maintaining long-term control of site operations. Acquisitions can be done through split purchases where the real estate is immediately sold to reduce capital investment. New sites are pre-sold to investors before completion to also reduce capital needs upfront. The company has extensive experience, having brokered over $12 billion in transactions.
Stan Johnson Company provides brokerage and advisory services for petroleum and convenience store real estate transactions. They help clients grow their business through sale-leaseback transactions, acquisitions, and developing new locations. Sale-leaseback transactions allow clients to generate capital by selling the underlying real estate while maintaining long-term control of site operations. Acquisitions are supported through split purchases that reduce the capital investment required. New locations are developed through forward commitment programs where Stan Johnson pre-sells the future property to investors.
The document presents the results of a broker opinion of value survey from September 2012, January 2013, and April 2013. It provides the average low and high pricing for various commercial real estate properties based on their credit rating, lease term, net lease structure, and periodic rental increases. The average low and high pricing decreased slightly from September 2012 to January 2013 and again from January to April 2013, indicating declining commercial real estate values over that period.
Stan Johnson Company provides brokerage and advisory services for petroleum and convenience store real estate. They help clients grow their business through sale-leaseback transactions, acquisitions, and developing new sites. Sale-leaseback transactions allow clients to generate capital while retaining long-term control of sites. Acquisitions can be done through split purchases where real estate is immediately sold to reduce capital investment. New sites are pre-sold to investors before development to also reduce capital needs. The company has extensive experience, having brokered over $12 billion in transactions.
The document discusses two strategies for splitting the purchase or sale of petroleum and convenience store businesses and real estate:
1) Purchaser "Split Purchase" - The buyer wants to purchase sites with little capital. The company conducts a "paper split" of the business and real estate values, puts in place a long-term lease, then sells the real estate to generate proceeds and reduce the business investment.
2) Seller "Split Sale" - The owner wants a full exit from both the business and real estate ownership. The business is first sold subject to a long-term lease, then the real estate is sold based on the lease terms, generating more total proceeds.
The document also discusses
Payment Week - Andrew Barnes, Managing Director__Citi VenturesAndrew Barnes
This document provides a summary of articles from the May 11-16, 2014 issue of PaymentWeek.com. It features articles on emerging payments technologies including mobile payments from LevelUp and social media payments on Facebook. It also discusses digital currencies like bitcoin and issues facing Dogecoin. Additional articles cover no checkout retail payments, stadium purchases through a DataCash and Sports Fusion partnership, and rewards programs from credit cards.
Payment Week - Andrew Barnes, Managing Director___PayoneerAndrew Barnes
This document discusses several emerging payment topics:
1. Google is integrating voice-activated payments into Google Glass, allowing users to send money through voice commands linked to their Google Wallet account.
2. Privacy is a growing concern in mobile payments as merchants and payment providers could gain complete consumer data and purchase information, so regulations are needed to protect consumer privacy.
3. EBay's CEO signaled the company is considering accepting Bitcoin payments to take advantage of the growing currency, which could help establish it as a legitimate payment option.
Payment Week - Andrew Barnes, Managing Director___WePayAndrew Barnes
The document discusses several topics related to mobile payments and commerce:
- HouseTab launches a new mobile app aimed at socializing bar and nightlife scenes by allowing groups to easily split payments via their phones.
- An interview covers trends in mobile analytics, location-based technologies like beacons, and the importance of responsive design for merchants. Video and app partnerships may be growing trends.
- The upcoming Mobile Shopping Conference in October will focus on attribution, location, and personalization for improving mobile commerce. Speakers will share lessons on analytics, in-store offers, and incentivizing customer location tracking.
Payment Week - Andrew Barnes, Managing Director___WePay
Payment Week - Andrew Barnes, Managing Director___First Data
1. SEPTEMBER 1-5, 2014 visit paymentweek.com
Home Depot
a Potential
Victim of Data
Breach
Security the Main Barrier to
Digital Wallet Usage, Study
Shows
ALSO INSIDE:
Credit Card
Industry
Steps Up
Payments
Security
Efforts
2. 2
F E A T U R E D A R T I C L E S
Felix Shipkevich
FOUNDER
Kevin Xu
EDITOR
CONTENT STRATEGIST
Andrew Barnes
MANAGING DIRECTOR,
EMERGING PAYMENTS
Eric Wagner
CONTRIBUTING WRITER
Melanie Macinas
CONTRIBUTING WRITER
Daniel Cross
CONTRIBUTING WRITER
Ellen Red
CONTRIBUTING WRITER
David Easley
CONTRIBUTING WRITER
Jason Mongiello
DIRECTOR OF MARKETING
GRAPHIC DESIGNER
Corporate Office
65 Broadway
Suite 508
New York, NY 10006
For Advertising Rates:
ads@paymentweek.com
2014 Lamil Media Inc. All rights
reserved. The content of this
publication may not be reproduced
by any means, in whole or in part,
without the prior written consent
of the publisher. Requests to reuse
materials published in Payment
Week should be directed towards our
editor.
M A R K E T P L A C E
T E C H
E M E R G I N G P A Y M E N T S
DIGGING DEEPER WITH FIRST DATA VENTURES
Andrew sits down with Pete Donat, Head
of First Data Ventures to get some straight
talk. They talk about market challenges
unique to being a payments startup, leading
indicators for startup success, and the areas
that he sees as “hot.”
S P O T L I G H T A R T I C L E
4 - Mobile Payments Seen as Key Driver Behind Biometric
Authentication Adoption
3 - Rumor: Apple to Release iPhone Mobile Wallet
I N D U S T R Y V O I C E S
5 - iWatch Has the Time for Play or Pay
S E P T E M B E R 1 - 5 , 2 0 1 4
6 - Isis Wallet Rebrands to Softcard
7 - Security the Main Barrier to Digital Wallet Usage, Study Shows
8 - Home Depot a Potential Victim of Data Breach
9 - Cheapair.com Takes Digital Currencies to New Heights
12 - Clear2Pay Acquisition to Boost FIS Payments Business
13 - Global Payments’ Taiwan Office Adopts CashPro® Any2Any
Platform
10 - Millennials Will Drive Payment Card Growth Studies Show
11 - Credit Card Industry Steps Up Payments Security Efforts
14 - Digging Deeper with First Data Ventures: How a Payment
Processing King Measures Startup Success
3. T E C H
3
Rumor: Apple to Release iPhone
Mobile Wallet
By: Daniel Cross
A
pple has been working closely with Visa,
MasterCard, and American Express to design
a plastic-less payment system that allows
people to use their phones to make payments at
partner banks and retailers.
At least that’s the latest rumor from Cupertino,
where Apple is reportedly working on a new iPhone
and possibly iWatch that will be released to the
larger public on September 9th. In addition to new
gadgets, Apple may also offer a mobile payment
solution that may also introduce an NFC chip for
the first time.
Historically, Apple has resisted NFC, although it
has offered payment integration with apps and its
Passbook app.
Several years ago, Starbucks began offering a
payment solution using QR codes; more recently,
airlines have used the same codes with Passbook
to allow passengers to board planes without a
paper ticket.
Rumors are scant about exactly how Apple’s new
product would operate with existing payment
infrastructure. VeriFone has offered NFC-enabled
payment systems for years, and systems like
MasterCard PayPass have offered limited touch-
less payment availability in the past.
Possibly, the solution will forego NFC entirely and
offer payments through custom apps that must speak
securely to one another, much like peer payments
through existing payment provider PayPal work. If
Apple has already partnered with large retailers
like Wal-Mart and Target, such a solution could
target over $100 billion in transactions overnight.
An Apple payments solution could also integrate
with a marketing platform, allowing smaller
retailers to promote products while also offering
payments via an iPhone. Such a move could help
Apple dominate the small business retail market
much as the iTunes App Store has helped the
company dominate the indie app market.
MOBILE
Image credit: Simon Yeo
4. 4
T E C H
4
G
oode Intelligence – a leading research
organization for the mobile security industry
– predicts that by the end of 2015, biometrics
will become mainstream on mobile devices.
Inits“MobileandWearableBiometricAuthentication:
Market Analysis and Forecasts 2014-2019,” Goode
Intelligence reports that mobile payment is one of
the key drivers behind the adoption of mobile and
wearable biometrics.
Biometrics is defined as “the automatic
identification of living individuals by using their
physiological and behavioral characteristics.”
The Goode Intelligence report revealed that
biometrics will replace passwords and PINs as these
two are not considered as secure and convenient
for mobile and wearable devices.
According to Goode Intelligence, by 2019, mobile
and wearable biometric technology users worldwide
will reach 5.5 billion.
In April 2014, fingerprint biometrics was introduced
for PayPal’s mobile app on the Samsung Galaxy S5
smartphone.
Goode Intelligence also predicted that Apple will
integrate biometrics into its iWatch smart watch
device in late 2014.
Alan Goode, author of the report and founder of
Goode Intelligence, said in a statement,“We believe
that smartphones and tablets will be the first wave
of consumer devices to be biometrically-enabled
and this will quickly be followed by wearable
technology.”
Thrive Analytics, meanwhile, in its “2014 Digital
Wallet Usage” study, reported that security concern
remains as the main barrier to digital wallet
adoption.
Jason Peaslee, Managing Partner of Thrive Analytics,
told Investorideas.com that mobile payments
security will be determined by the strength of the
authentication process.
The Managing Partner of Thrive Analytics said,
“Eventually, biometrics could play a huge role in
tying everything together.”
Mobile Payments Seen as Key Driver
Behind Biometric Authentication
Adoption
By: Ellen Red
MOBILE
Image credit: Kārlis Dambrāns
5. T E C H
5
A
pple’s long awaited unveiling of its signature
smartwatch is expected to wow audiences
around the world Tuesday, September 9th.
Industry analysts expect next week’s event to
feature a flurry of iDevices including the iWatch,
two new iPhones, and an iPad refresh.
Apple’s first iPhone jumpstarted the smartphone
craze, and its new iWatch may have the same
potential to make wearable technology the next
big thing for consumers.
It is now confirmed that the iWatch will also carry
NFC tech in a bid to enable payments on the
smartwatch. The inclusion of NFC matches the
iPhone 6, which will also be unveiled on the same
day.
Near-Field Communication is a short-range
frequency specially designated for use in the
burgeoning payments processing industry.
Tap-to-pay is a feature which is found in most
smartphones save for the previous iterations of the
iPhone, a hinderance to overall NFC adoption.
The leaked drawings of the iWatch show a
beautifully curved wristband that has stylish
appeal and wearable comfort written all over.
Apple plans to begin taking pre-orders for the new
iWatch, and it is expected that the smartwatch will
actually begin shipping to stores until early next
year.
The combination of wearable computers mixed
with mobile payment simplicity is a sure-fire sign
that time keeps slipping into the future.
iWatch Has the Time for Play
or Pay By: Eric Wagner MOBILE
6. 6
T E C H
6
I
sis Wallet, a mobile wallet and payments
initiative, which unfortunately share its name
with ISIS, the infamous militant group in the
Middle East, is rebranding.
With its rebranding first announced in July, Isis
Wallet will soon be known as Softcard. Expect the
mobile wallet app to be updated in the next few
weeks.
Isis Wallet, or rather Softcard, of course is the NFC-
based mobile payments play supported by major
wireless carriers that include T-Mobile, Verizon,
and AT&T.
Softcard promises a bold and simple visual
redesign.
According to Michael Abbott, CEO of Isis Wallet/
Softcard, “Our search for a new name has been
rooted in our founding vision: to use the power
of the mobile phone to help consumers find a
safer and better way to shop, pay and save. But we
also wanted a name and visual identity that had
the power, flexibility, and simplicity to define our
category.”
Isis Wallet Rebrands to
Softcard
By: Kevin Xu
MOBILE
“OUR SEARCH FOR A NEW
NAME HAS BEEN ROOTED
IN OUR FOUNDING VISION:
TO USE THE POWER OF THE
MOBILE PHONE TO HELP
CONSUMERS FIND A SAFER
AND BETTER WAY TO SHOP,
PAY AND SAVE.”
7. T E C H
7
S
ecurity remains the main obstacle to digital
wallet adoption, this according to the 2014
Digital Wallet Usage study conducted by
Thrive Analytics.
Thrive Analytics is a digital marketing research
and customer engagement strategy consulting
firm, and their 2014 Digital Wallet Usage study
surveyed over 2,000 representatives of the U.S.
adult population.
The Thrive Analytics study revealed that while
80 percent of U.S. consumers are aware of digital
wallets, only less than one-third of American
consumers adopt the digital wallet technology.
The low adoption of mobile wallets is mainly due
to security concerns, the Thrive Analytics study
revealed.
Jason Peaslee, Managing Partner of Thrive Analytics,
said in a statement, “An overwhelming majority of
consumers acknowledge the presence of digital
wallets, however a minority have actually used
them despite fewer shoppers carrying cash today.”
Fifty percent of U.S. consumers, mostly on-the-go
females, carry less than $20 on a regular basis, the
study showed.
Sixty percent of digital wallet users though are
males, despite the fact that they carry more cash
than females.
The study further revealed that 18 to 29-year-
old females are more likely to use merchant
digital wallet apps for price shop (56 percent) and
discounts/coupons (72 percent) compared to men.
According to the study, men tend to use merchant
digital wallet apps for paying bills and searching
for products and contact information of retailers.
Gartner, Inc., a leading information technology
research and advisory company, reported that
starting in 2017, mobile security will become a
higher priority for consumers.
Security the Main Barrier to Digital
Wallet Usage, Study Shows
By: Ellen Red
SECURITY
Image credit: Sergio Uceda
8. 8
T E C H
8
H
ome Depot is warning customers about
a potential data breach that could affect
millions.
According to a statement posted on the company’s
website, Home Depot is working with law
enforcement authorities to investigate some
unusual activity that suggested a breach had taken
place.
The statement assures customers that, if a breach
is found, they will be offered identity protection
services free of charge, and that “the financial
institution that issued your card or Home Depot
are responsible for [fraudulent] charges should we
confirm a breach.”
While determining whether an attack indeed took
place, Home Depot apologizes and encourages its
customers to keep a close eye on their accounts.
Any suspicious activity should be reported to the
card issuers themselves. Customers will be notified
once a breach has been confirmed.
The fourth largest retailer in the U.S. is just
the latest victim in a series of high profile data
breaches – Target Corp., Neiman Marcus Group
Ltd., and P.F. Chang’s Bistro all having suffered
recent attacks. Target reported that it has so far
spent $146 million cleaning up the fallout from its
breach.
The news could reverse recent good results for the
retailer. Home Depot reported a nearly 6% increase
in sales over its last quarter. Home Depot stock
was trading down 1% from its market opening of
$91.11.
The attack occurs despite Home Depot’s concerted
efforts to curb credit card fraud. New EMV credit
card computer chip reading technology has been
installed on Home Depot’s card terminals, although
they have not yet been activated. The technology
may not have prevented the breach, however, as
most consumers are still using old magnetic stripe
cards.
Seth Ruden, Senior Fraud Consultant at ACI
Worldwide stated “Similar attacks on merchants
will likely continue until we remove the magnetic
stripe from being the primary mechanism of data
transfer in card-present transactions. This breach,
like the others before it,should serve to increase the
pressure to migrate to the EMV chip card standard
and help to reinforce the need that we have for
stepped-up security in payments, especially in the
US, where we currently lag behind our peers.”
Home Depot a Potential Victim of
Data Breach By: David Easley
SECURITY
Image credit: Mike Mozart
9. E M E R G I N G P A Y M E N T S
9
9
T
he first online travel agency to accept
Bitcoin, Cheapair.com has announced that
they are now accepting Litecoin and the
Internet meme-based Dogecoin.
Fans in the Altcoin arena are ecstatic, as the open-
source Dogecoin is the most transferred digital
currency in existence.
Flyers can now book flights, hotels, and rental cars
all using Bitcoin, Litecoin, and Dogecoin.
According the Cheapair.com CEO Jeff Klee, the
move was largely prompted by the tremendously
positive community response and lucrative results
since the inception of the Bitcoin acceptance.
“We’ve had some success with bitcoin, we’ve
gotten some new customers there – enthusiastic
customers. We’ve gotten a great response since
we began accepting [bitcoin], and we had some
requests for dogecoin and litecoin. We figured why
not?”
The company reported that they raked in over $1.5
million in bitcoin revenue since the inception of
the program, and they are expecting even better
results from the newer and more cultish Litecoin
and Dogecoin protocols.
The company has also chosen a new payments
processor in Gocoin for these altcoin transactions,
as they are more proficient than Coinbase with the
altcoin technology. The company will continue
its relationship with Coinbase as processor of all
Bitcoin transactions.
Now Bitcoin’s younger siblings get a chance to take
flight and travel the world with convenience.
Cheapair.com Takes
Digital Currencies to New Heights
By: Eric Wagner
DIGITAL CURRENCIES
10. 10
E M E R G I N G P A Y M E N T S
10
A
study conducted by the Princeton Survey
Research Associates International showed
that 51 percent of millennials prefer to use
debit or credit cards over cash when purchasing
items close to $5.
Millennials, also known as Generation Y, are those
born between the 1980s and 2000s.
The Princeton Survey Research Associates
International, in a study conducted for CreditCards.
com, surveyed a representative sample of 1,497
Americans in July 2014.
The study also revealed that those aged below
50 years old are more likely to use debit or credit
cards for a $5 purchase compared to 50-year-olds
and older.
The study showed that 46 percent of those below
50 years old prefer debit or credit cards; while only
21 percent of 50-year-olds and older prefer using
debit or credit cards.
The Princeton Survey Research Associates
International survey also showed that Americans
who attended or graduated from college are
considerably more comfortable than others with
using plastic for small buys.
The survey found out that Americans who have
children are more likely to use the cards for small
buys (41 percent) than Americans without children
(30 percent).
The person’s employment status also plays an
important part in card use. The survey showed that
cards are often used for small purchases by those
employed (76 percent) than those unemployed (23
percent).
In its Prepaid and Gift Cards in the U.S., 4th
Edition report, Packaged Facts (a division of
MarketResearch.com) reported that 18 to 34-year-
olds have an average of 2.3 prepaid cards in their
wallets, making them the key drivers behind the
prepaid card revenue surge.
Juniper Research, meanwhile, projected that the
usage of online bill payments by the millennials
will continue to rise in the next five years.
Millennials Will Drive Payment Card
Growth Studies Show
By: Ellen Red
Image credit: Sean MacEntee
CREDIT, DEBIT, & PREPAID
11. E M E R G I N G P A Y M E N T S
11
11
C
redit card industry players are boosting their
efforts to keep sensitive card information
out of merchant environments as reports of
data breaches and theft continue to rise, weakening
confidence in electronic payment systems.
Home Depot is the latest to have reported
a potential data breach on its system. Card
information from consumers who used cards at
P.F. Chang’s China Bistro and in grocery stores
operating as Albertsons, Acme and Jewel-Osco has
also been recently stolen.
Cases like these highlight the vulnerability of
merchant systems and also stress the need for
more security measures.
In a move to bolster electronic payments security,
Visa and MasterCard are introducing a new
technology called tokenization, wherein sensitive
customer information is replaced with a unique set
of numbers that confirms the cardholder’s identity.
The tokenization technology can be used online, in
brick-and-mortar stores using a smartphone, and
with apps that users load onto their smartphone.
As this technology masks sensitive consumer
information, hackers will not be able to steal any
vital details.
Another measure is the EMV chip card technology,
which has become the global standard for debit
and credit card payments. With this technology,
payment instruments come with embedded
processor chips to store and protect cardholder
information.
With these solutions, industry insiders hope
incidences of data breach and theft will be
diminished if not completely eliminated.
Credit Card Industry Steps Up
Payments Security Efforts
By: Melanie Macinas
CREDIT, DEBIT, & PREPAID
12. 12
M A R K E T P L A C E
12
F
lorida-based FIS, a leading provider of
banking and payments technology solutions
and a pioneer in consulting and outsourcing
solutions, will acquire Clear2Pay, a Brussels-based
payments technology firm that offers solutions
for secure, timely and streamlined payments
processing.
The move will provide FIS with global payments
capabilities through new payments managed
services and payments processing utilities, boosting
its abilities to provide differentiated enterprise
payments solution.
The payments domain is one of the fastest-growing
segments in the financial services industry and
a strategic growth and investment area for the
company, said Gary Norcross, president and chief
operating officer of FIS.
The acquisition shows the company’s commitment
to delivering assets and technologies that
encompass all customer channels, simplify payment
operations, reduce costs and provide a better
customer experience, he added.
Michel Akkermans, chief executive officer and
chairman of Clear2Pay, commented: “The payments
landscape continues to evolve to meet the next
generation of customer demands. We believe
the combination of these two companies will be
uniquely qualified to deliver true payment systems
convergence.”
With Clear2Pay’s Open Payment Framework (OPF),
financial institutions are able to improve their
internal payments processing efficiency and provide
clients with better and faster payment services. Its
client-base includes leading financial institutions
in Western Europe, Asia Pacific and the US.
Clear2Pay Acquisition
to Boost FIS Payments
Business
By: Melanie Macinas
INDUSTRY LEADERS
13. M A R K E T P L A C E
13
U
K-based online cash payment provider
Ukash has further expanded its partner
network with its recent collaboration with
Singapore-based payment service provider, Yuupay.
The partnership will allow merchants using the
YuuPay system in Europe, Australia, and Asia to
offer secure online transactions with Ukash.
It will also increase payment choice for customers
who shop and pay online without the need for a
credit card or a bank account.
Ukash is available for use across several sectors,
including shopping, games, gift cards, bingo and
poker. With this system, customers use cash to pay
securely and conveniently online by exchanging
coins and notes for a unique 19 digit code.
Consumers then use the code to make a transfer,
payment or buy online.
“The Ukash brand is already well established
with Asian and Australian consumers, so this
new partnership with YuuPay provides a great
opportunity for merchants to leverage the loyalty
around our service, offering customers flexibility
and security when they shop, play and pay online,”
says James Allum, Chief Commercial Officer at
Ukash.
Yoav Elgrichi, CEO of YuuPay, commented: “Ukash
offers the perfect fit for our customers as its
universal and inclusive payment method helps
consumers transact online safely and securely. Its
simplicity makes it easy for consumers who don’t
own a credit card or those who prefer to keep their
personal information private when making online
transactions.”
Global Payments’ Taiwan
Office Adopts CashPro®
Any2Any Platform
By: Melanie Macinas
GLOBAL & LOCAL
14. I N D U S T R Y V O I C E S
14
A
ndrew Barnes’ series, “Digging Deeper” is
based in Silicon Valley and focuses on key
startups and innovators, and how they are
disrupting digital payments and commerce.
If there were a king in the world of payments
processing, First Data would certainly be a
candidate for the crown. In 2013 it was the #1
processor for U.S. merchant acquirers and the #1
processor in international markets. It has 23,000
employees, 6 MM merchant locations, and 3,500
financial institutions as clients. 2013 revenues
were $10.8 billion on 59 billon transactions.
First Data, like all processors, is in a scramble to
stay relevant and profitable in an increasingly
commoditized business. So where else to drive
for innovation but Silicon Valley where in 2013
First Data launched its Ventures group, which is
investing in and partnering with innovators in
a number of areas, such as payments, marketing,
customer loyalty, security, mobile and solutions
that support the next generation of commerce.
Pete Donat is senior vice president of First Data
Ventures and helped open First Data’s Palo Alto
office in 2013.
“I have seen massive exaggeration of market size,
customer interest, and value creation – especially
in payments. That tends to be a turnoff. If you
haven’t assessed your market, you don’t know what
the customers think.
So what’s the going on here? Andrew sits down
with Pete Donat, Head of First Data Ventures to
get some straight talk. They talk about market
challenges unique to being a payments startup,
leading indicators for startup success, and the
areas that he sees as “hot.”
15. I N D U S T R Y V O I C E S
15
Hi Peter, great to talk with you today. And by the
way, these new First Data Ventures digs in Palo Alto
are quite nice… thanks for the tour. Ok, lots to talk
about, lots going on. Let’s jump in. To start things
off, can you tell me what “venture” means to First
Data Ventures?
Pete Donat: Great to see you and talk with you again
Andrew. It’s always good to talk shop and yes, lots
going on. To your question, to us a venture can be
a new or an existing enterprise. First Data’s intent
behind this Ventures group is to connect the scale,
capabilities, and assets of First Data across the
millions of merchants and thousands of financial
institutions with whom we work. The goal is to
bring those assets and capabilities together with
the innovation and disruption that the Silicon
Valley entrepreneurial community brings.
Is it an acquisition strategy? A partner funding
strategy? What’s your charter?
We’re here to find the disruptive partners. We have
the ability to do acquisitions and we have the ability
to do commercial partnerships. I’d say it’s a whole
range of corporate structures and investments that
we could do with any of these partners. That said,
my team will focus on equity investment-based
work. We want to use a number of different levers
to get access to deal flow, to create awareness.
Using investment dollars is one of those that make
a lot of sense.
If a company is aligned with our business strategies,
for instance growing Clover, that’s helpful. If it’s
aligned with certain product gaps, features, or
functions that we may not have considered, or that
our customers would value, an investment could
help accelerate their growth and integration. Those
are examples of things we think about as we look
at the disruptive partners who are out here.
Clover was one of your early fintech acquisitions.
How did that take shape?
I met the cofounders, Leonard and Mark Schulze, 2
years ago at Finovate. First Data took a look at it and
said, “Gee, there’s something cool going on here.”
As Todd McGuire and our Corporate Development
team started to evaluate it, all of the possibilities
got exciting – the hardware play, the platform play,
and the ability to be an app marketplace of the
future. We felt that really complemented our desire
to transform First Data to be more innovative and
collaborative.
Are startups banging down your door to get noticed?
It’s a great question. We’ll connect with a couple
hundred startups this year. We will have found
them, or they will have found us. I’m not sure the
ratio of reach-outs versus somebody reaching out
to us.
As a company, we want to make sure that First
Data has access to the best and most innovative
deals that would be relevant for us – that we’re
aware of them, we’ve seen them, and we’ve talked
to them. We want to figure out if there’s a way for
our companies to work together.
I think we’ve gotten much better visibility, but we
still aren’t where we want to be. First Data Ventures
is relatively unknown. As a corporate venture arm,
we want to grow our brand, grow awareness, and do
more deals and investments. Ultimately, we’re out
to prove out that we’re a great partner.
16. I N D U S T R Y V O I C E S
16
To date, I think the companies who are working with
us, such as LocalVox or Gyft, would say that we are
a great partner. That really helps our visibility and
ensures that more and more entrepreneurs want to
find a way to connect with First Data.
Are you getting calls from the venture guys saying,
“Hey look, you’ve got to talk to my portfolio
company”?
We do get the inbound happening weekly. Somebody
at Matrix Partners or Andreesen Horowitz or another
venture firm saying, “Take a look, I’m brokering
an intro on a startup that’s in our portfolio.” That
happens a lot, I would like it to happen more.
Is the quality of the introduction better than
trawling out in the open ocean?
The companies who have top tier venture backing
have clearly been through some screening to
help establish some validity to the business. They
wouldn’t have invested if they didn’t think there
was something there. Many venture capitalists want
to prove that they’re adding value to their portfolio
companies. Finding a way to introduce them to us
is helpful to them.
I think those introductions matter. We’ve found
some very interesting companies through those
types of introductions. That said, as a relatively
new voice in town, I’d still like to have a broader
ecosystem awareness of First Data Ventures than
we have today.
Are your term sheets pretty competitive? Would
you say you’re more or less aggressive than other
corporate venture groups?
I don’t know, but I’ll say we’re different. There’s
a benefit of partnering with First Data that goes
beyond the capital that gets put into the deal. We
could put money in, $1 million, $2 million, whatever
that amount is, at a rate anybody else can. Whether
we’re competitive or not, it’s hard to say. I think the
difference for us, and usually the types of things
we’re negotiating, is around something beyond the
money that makes us a different play.
Usually that means huge benefits for the
entrepreneur who wants to work with us. Those
benefits are the ability to access the thousands
of people who are out there selling our solutions,
the merchant base, the processing power, the
99.999% uptime that we have. It’s really hard for an
entrepreneur to try and sell something to a banker,
to a merchant, unless you’ve got somebody like
First Data who is really behind you and supportive
– someone who can help you work through the
regulatory and compliance headaches of executing
payments and commerce at massive scale.
Okay, so I’m a startup and I’ve got a solution. I
need to bring to you something that’s going to be
scalable, but I also have to build something that is
unique and distinguishable. What do you say to a
startup about how to serve both masters?
In some ways, what you’re getting to is the synergy
First Data is trying to create with the Ventures
unit. It’s taking the innovation and creativity of
the startups and partnering with all the assets
we have. The merchants. The sales force. The
bank relationships. The processing power. The
knowledge of how to get to a restaurant channel
versus a petrol channel versus a small business
17. I N D U S T R Y V O I C E S
17
channel. We can bring that knowledge to bear for
startups
If it was as easy as pushing F9 they would have done
it themselves. By partnering with us, we have the
ability to take what they have, help them refine it,
figure a way to productize it, work on the messaging,
then distribute through a lot of different channels
that can get up there very effectively.
When you look to areas for your investment dollars,
where do you see opportunities for disruption, and
for profits? What are the juicy parts in the payments
system?
I’ll tell you two things. One, we’ve got some themes
that we’re pursuing. Two, we also don’t know
enough. Part of the reason we have this office, and
why I’m in this role is to make sure we’re paying
attention to things that we didn’t see coming.
We’re a bit of a listening post, making sure we’re
aware of the innovation. I love meeting with the
startups that make me go, “Wow, I never thought of
disrupting or connecting the dots in the payments
industry with this, and this, and this, in the way you
just talked about.”
There are a couple themes that we tend to think
are hot from a First Data Ventures perspective. One
of those is utilizing our information and analytics
to find ways of proving that the action turned into
a result. Our information and analytics products
are very good at saying how’s your spending, where
are your customers coming from – great insights
around your business.
Can we do something that pairs with that? Those
are the kind of great solutions that we see as truly
disruptive.
For you and your SMB clients, are your efforts about
finding new technology to disrupt, or finding ways
to drive better adoption?
In some ways, I’m not sure. Some of the solutions
we look at have pretty unique technological
innovations. I don’t know whether we’ll invest in
or partner with some of these. I’m seeing some
unique innovations in the sensors, beacons and
other types of categories that might link with our
analytics product. That would be really cool. Those
would be, in my view, technologically cutting edge.
Other things, maybe they were technologically
cutting edge five, ten years ago – but never took off.
Today they are a packaging of that older technology,
but with some better blocking and tackling - and
some really good user interfaces. We’ve seen a
number of companies like that. It doesn’t have to
be that cutting edge. It just has to work really well
for somebody, a small business owner who wants
to spend the vast majority of his or her time not
worrying about payments and commerce. They want
to spend their time growing their business.
Can you tell me a little bit about your story and
how it ties into your work with startups in a venture
capacity?
I got into the space and spent seven years at
MasterCard. During that time, I’ve seen success
and failure in innovation. Some of the things we
pursued at MasterCard were very successful, some
were horrific failures. I also spent five years at Visa
International and Visa, Inc. in strategy, planning
and other roles.
At First Data, I spent a couple years in business
development, e-commerce, and co-heading our
Durbin SWAT team around regulatory reform issues.
18. I N D U S T R Y V O I C E S
18
I think the reason I’m in the chair I am now relates
to the experience of knowing how the payments
industry works, knowing what’s likely to lead to
success or failure, knowing how to work across the
First Data ecosystem.
As First Data Ventures, I need to make sure I’ve
secured business unit support for something that
we want to do as an investment. In our LocalVox
investment, we’ve worked very closely with key
business unit executives and product managers.
Krish Mantripragada, who heads up the analytics
team, and I were tied at the hip in terms of moving
this forward. Joe Plumeri – Senior Advisor to the
CEO - and, Guy Chiarello, the President of First
Data, were involved in approving the deal and how
it is going to integrate with our sales force.
You referenced your time at MasterCard your feel
for what drives success and failures. Can you
deconstruct that and give me your thoughts on the
leading indicators for success?
It’s a complicated question. How do we evaluate
companies and whether they’re likely to be
successful for us? We do a little scorecard that we
use as we assess companies. Some of those criteria
are going to be things you would expect to see.
Are they addressing a big market? Do they have a
fit with what First Data would be doing? Do they
align with the business strategy that we would be
pursuing? Then we’ll assess other things Is their
team great? Is their product good? Is it unique?
The answer to those tend to vary a lot, vertical by
vertical. Our assessment of a new payment network
solution would be one way, versus how we assess a
security solution. Those dynamics tend to be very,
very different.
There are a couple things that tend to be turn-ons
and turn-offs when we look at companies.
Can you talk more about the start-up turn-ons and
turn-offs?
Companies that are entering into the payment
space and the ecosystem must have thought
through, realistically, the value proposition. We’re
talking about some complicated chicken and egg
issues of dealing with a two-sided market.
I have seen massive exaggeration of market size,
customer interest, and value creation – especially
in the payment space. That tends to be a turnoff. If
you haven’t assessed your market, you don’t know
what the customers think.
I often refer to my eight rules of payments. In
payments, getting one or two things right is not
enough – you need to address all eight of these
criteria. For example, can you get to a critical mass
of consumers? Can you get to a critical mass of
merchants? Can you manage fraud? Can you deal
with disputes and things when they go wrong?
These and a few other rules. If you don’t deal with
all of them, usually you’re doomed to failure. The
good news is that First Data’s capabilities can often
help a startup address some gaps it may have in
achieving commercial success.
Payments isn’t a swing for the fence and hope you
get there type of industry.There is plenty of blocking
and tackling, from regulatory to compliance and all
along the stack. It’s a mix of swashbuckling and
diligence to get all the Ps and the Qs handled isn’t
it?
19. I N D U S T R Y V O I C E S
19
I like it. Can I quote you on that? Swashbuckling
and diligence. There’s a GE phrase that goes back a
decade or two that was “loose — tight”. Can you be
really creative at some stage and then rigorously
assess what you’ve creatively innovated? I think
you need to have a bit of both. All swashbuckling
and no diligence, that is problematic. But if you
don’t have any swashbuckling, then it’s not that
exciting either. It has to be both in our minds.
I think that sums things up, swashbuckle and
diligence, the mojo of payments and commerce
startups. It has been great to get your view
of venture’s role in payments and commerce
disruption. Thanks for talking shop with me.
As always, great to talk with you as well Andrew.
About First Data Ventures
First Data Ventures is responsible for leading First Data’s efforts to harness inno-
vation by partnering with small innovative companies who can leverage First Da-
ta’s processing assets and unmatched distribution to drive solutions that delight
customers and materially grow long-term revenue.
Pete Donat, Head of First Data Ventures
In addition to his role as Head of First Data Ventures, Pete is also responsible for
network business development, responses to major regulatory events (e.g. Durbin
I & II), managing several of the company’s non-traditional partnerships.. From
2004-09 he was VP of Enterprise Planning & Corporate Strategy at Visa. From
1997-2004 he held a variety of senior management roles at MasterCard. Prior to
MasterCard he was a management consultant at Marakon Associates. He has an
MBA from Wharton, a Masters in International Economics and American Foreign
Policy from Johns Hopkins SAIS, and a BA from Dartmouth.
Andrew Barnes, Managing Director, Emerging Payments
Barnes is a self-confessed payments “geek” and entrepreneur working in Silicon
Valley. He leverages his business development track record and network in start-
ups, retail, and FI’s to solve tough revenue problems in digital payments and mo-
bile commerce. Barnes has held executive positions internationally with Sprint,
Global One, and 2Roam Mobile. He founded the National NNN Investment Group,
and is an Advisor to the Electronic Transactions Association (ETA). Barnes has an
MBA from WASEDA in Tokyo and a BA from Penn State. He launched the widely
sourced Digging Deeper series and can be reached at @AndrewinSV and Linkedin.