FOR 45 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE

JULY 2016 / ISSUE 1091

Visa/PayPal Partnership
A new agreement between Visa and PayPal will send more card
payments over the Visa network and expand PayPals reach into
in-store sales in the U.S. PayPal will no longer solicit consumers
> see p. 12

Middle East/Africa

Purchase Volume 2015 vs. 2014

Market Shares

Mastercard to Purchase VocaLink

Mastercard will acquire 92.4% of U.K.-based real-time payments
specialist VocaLink for $920 million (701 million). That
companys current shareholders could receive up to an additional
> see p. 6

57%

39%

3%

1%

Visa

Mastercard

Amex

Diners

Gemalto/Worldline Mobile Card Partners

Worldline provides end-to-end account processing services to
payment card issuers in Europe and Asia. Through a partnership
with Gemalto, Worldline will support card issuer participation in

+63

Change in
Basis Points
+5

17

52

> see p. 9

Installment Payments for Mobile Web Purchases

Providing consumers the opportunity to make installment
payments for items that range in value from $100 to more than
$10,000 is the business of Affirm, an online acceptance mark.
> see p. 10

Masterpass Goes Omnichannel

Since Masterpass, Mastercards digital payment service, was
launched in 2013 for ecommerce, it has grown to be a merchant
acceptance mark available at 270,000 online and in-app sellers

Purchase Volume ($Bil.)

Visa

14
15

Mastercard

14
15

Amex

14
15

Diners

14
15

153.5

175.3

102.6
120.2
7.2
7.8
3.1
3.7

2016
The Nilson Report

> see p. 5

Top 50 U.S. Prepaid Card Issuers

Middle East/Africa Cards 2015

The 50 largest issuers of Visa, Mastercard, and Discover brand

general purpose prepaid cards in the U.S. accounted for $145.03
billion in purchase volume at merchants in 2015, an increase of

Visa, Mastercard, American Express, and Diners Club

brand credit, debit, and prepaid cards issued in the Middle
East and Africa region generated $839.93 billion in total
volume in 2015. Total volume, which includes purchases for
goods and services combined with cash transactions at
ATMs and over the counter at branches, increased 14.3%
from 2014. Purchase volume for goods and services only
from these general purpose card brands grew 15.2% to
$306.98 billion. Cash volume of $532.95 billion accounted for

> see p. 8

Top U.S. Consumer Credit/Debit Issuers

The largest U.S. issuers of Visa and Mastercard credit and debit/
prepaid cards based on consumer purchase volume in 2015 are
shown on the table on page 7. Purchase volume does not include
> see p. 7

INSIDE 2 4 Fast Facts

5
6

Kerv Contactless Payment

Ring
Mastercards New Look

2016 HSN Consultants, Inc. THE NILSON REPORT

CHARTS 7
8

> see p. 10

Largest U.S. Issuers of Consumer

Visa and Mastercard Cards 2015
Prepaid Cards in the U.S. Top
Issuers in 2015

10
11

Purchase Transactions on Cards

Issued in Middle East/Africa
Middle East/Africa General Purpose
Cards 2015 vs. 2014

VISIT US ONLINE AT WWW.NILSONREPORT.COM

FAST
FACTS
JULY 2016
ISSUE 1091
No paid
advertising.
No sponsored
content of
any kind. Ever.
It is never
permissible for
subscribers to
forward or print
this issue. Doing
so violates
copyright laws.

VERIFONE has launched Curb, a ride-hailing app for taxis

in New York, Philadelphia, Miami, Ft. Lauderdale, San Jose,
and the Washington, D.C. area. Now live in 65 cities, Curb
connects more than 50,000 taxis and 100,000 professional
taxi drivers. Amos Tamam is SVP, Global Taxi Systems at
Verifone, (917) 359-1984, amos.tamam@verifone.com,
www.gocurb.com.

TABLESAFES patented RAIL 2 payment system for

restaurants has received PCI PTS certification. RAIL accepts
mag-stripe, EMV (chip and signature, and chip and PIN),
NFC (Apple Pay, Android Pay), QR/UPC code, and payment
card network mobile payment applications. Steve McKean is
President at Tablesafe, (206) 516-6100, smckean@
tablesafe.com, www.tablesafe.com.

FIFTH THIRD BANCORP has joined the Allpoint Network,

the worlds largest surcharge-free ATM network, adding
43,000 new ATM locations across the United States for
the banks customers. Chad Borton is EVP and Head of the
Consumer Bank at Fifth Third Bancorp, (513) 534-0630,
chad.borton@53.com, www.53.com. Bill Knoll is EVP and
Managing Director at Allpoint, (832) 308-4259, bknoll@
allpointnetwork.com, www.allpointnetwork.com.

WEX, provider of corporate payment products, has

concluded an agreement with global insurance technology
provider Aquarium Software, which specializes in niche
sectors including pet, travel, and gadget. WEX virtual payment products are available in 45 currencies and are used in
190 countries. Renata Caine is VP, Virtual Payments at WEX,
(650) 954 8154, renata.caine@wexinc.com,
www.wexvirtualpayments.com.

ELAN FINANCIAL SERVICES, a division of U.S. Bank,

provides ATM and debit processing to banks and credit
unions. It has launched a suite of mobile services that allow
cardholders to control how their debit card can be used,
including turning off their card if it is misplaced, setting
location controls to indicate where the card can be used, restricting online purchases, setting spending restrictions, and
more. Troy Cullen is President at Elan Financial Services,
(630) 443-3238, troy.cullen@elanfs.com, www.elanfs.com.

SEQUENT SOFTWARE has received Payment Card

Industry Data Security Standards (PCI-DSS) Version 3.1 for
Service Providers Level 1 certification. Lance Johnson is
Chief Security Officer at Sequent, (650) 241-3765,
l.johnson@sequent.com, www.sequent.com.

THE U.S. PAYMENTS FORUM is the new name for

the EMV Migration Forum. The U.S. Payments Forum will
address payment technologies that protect the security of,
and enhance opportunities for, payment transactions within
the U.S., including EMV chip technology, tokenization,
card-not-present transactions, point-to-point encryption,
and mobile and contactless payments. Membership includes
global and domestic payment networks, card issuers, payment processors, merchants, acquirers, vendors, and others.
Randy Vanderhoof is Director, (609) 587-4208, rvanderhoof@
us-emvforum.org, www.emv-connection.com.

FIRST DATA has given Class B+ certification on its Omaha

platform to payment acceptance software from Ingenico
Group that supports EMV Tip Adjust and Common AID for
PIN-based transactions. Bernie Frey is SVP of Indirect Sales,
US at Ingenico Group, (678) 456-1822, bernie.frey@
ingenico.com, www.ingenico.com.
BANK OF THE WEST, the 25th largest debit card issuer
and 57th largest credit card issuer on the Mastercard and
Visa networks, will offer cardholders a mobile wallet in
partnership with Mastercard. The bank will also give cardholders access to Masterpass, Mastercards global digital
payment service. Paul Appleton is EVP, Consumer Banking
Product and Payment Solutions at Bank of the West,
(925) 942-8300, paul.appleton@bankofthewest.com,
www.bankofthewest.com.

Conferences & Seminars

Mobile Payments Conference 2016 (MPC):
August 29-31, 2016. The Renaissance Chicago
Downtown Hotel, Chicago, Illinois. Estimated
attendance: 300. Cost for the three-day
conference is $899 until August 28 ($999 after
that). Subscribers to The Nilson Report will
receive a 20% discount. (Use code
MPC16NIL.) Contact Robin Albright at
MP Associates, (303) 530-4562, robin@
mpassociates.com. Register at
www.mobilepaymentconference.com.

2016 WSAA Annual Conference: September

14-15, 2016. The Hyatt Regency Scottsdale
Resort & Spa at Gainey Ranch, Scottsdale,
Arizona. Estimated attendance: 1,000. Cost for
the two-day conference is $99. Contact
Xavier Ayala, President & CEO, (707) 445-5401,
xayala@suddenlink.net. Register at
www.westernstatesacquirers.com.

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SCA Security of Things 2016: October 1819, 2016. The Hilton Rosemont/Chicago OHare,
Rosemont, Illinois. Estimated attendance: 300350. Cost for the two-day conference is $795
until August 31, then $895 until October 8, then
$1,045 after that. Subscribers to The Nilson
Report will receive a 20% discount. (Use
code NILSDISC.) Contact Bryan Ichikawa
at SCA, (703) 582-7862, bichikawa@
smartcardalliance.org. Register at
www.sca-securityofthings.com.

Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive

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ition

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AMERICAN EXPRESS SERVE, a reloadable prepaid account that offers

free direct deposit, online bill pay, and ATM withdrawals (24,000+ MoneyPass
locations), will be used by Marketing Innovators, a global incentive company
to disburse payments, commissions, incentives, rewards, and expense reimbursements. Stefan Happ is EVP, Alternative Payments at American Express,
(212) 640-2000, stefan.b.happ@aexp.com, www.americanexpress.com.
Richard Blabolil is President at Marketing Innovations, (847) 696-1111,
rblabolil@marketinginnovators.com, www.marketinginnovators.com.

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SURETAP a mobile payment venture in Canada of mobile network operators

(MNOs) Bell, Telus, Koodo, and Virgin, has been shut down. Softcard in the
U.S. and Semble in New Zealand, mobile payment ventures of MNOs, also
shut down this year.

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Asia/Pacific,
United States,
Europe, Canada
Latin America, Middle East/Africa

Merchant Acquirers in 76 Countries

from all World Regions

Order Today

www.nilsonreport.com/specialreport

ELAVON, the 5th largest U.S. acquirer, has renewed its merchant payment
processing agreement with Capital Bank, which operates 152 branches in the
Southeast U.S. Guy Harris is President, North America, at Elavon,
(678) 731-5070, guy.harris@elavon.com, www.elavon.com. Zahid Afzal is
Chief Technology and Operations Executive at Capital Bank, (919) 645-0868,
zahid.afzal@capitalbank-us.com, www.capitalbank-us.com.
ALLIANCE DATA CARD SERVICES will purchase The Childrens Place
private label credit card portfolio and will launch and manage a new loyalty
and private label credit card program for the childrens clothing brand.
Melissa Miller is President at Alliance Data Card Services, (614) 729-4900,
melisa.miller@alliancedata.com, www.alliancedata.com.
FIRST DATA and BYPASS have formed a partnership to bring EMVcompliant card acceptance to food and beverage concessions at stadiums,
arenas, and concert venues. First Data contributes its Clover family of pointof-sale devices and business management software. Bypass provides backoffice software specific to those vendors. Brandon Lloyd is CEO at Bypass,
(512) 217-5545, blloyd@bypassmobile.com, www.bypassmobile.com.
Dan Charron is EVP, Head of Global Business Solutions at First Data,
(404) 890-2000, daniel.charron@firstdata.com, www.firstdata.com.
2016 HSN Consultants, Inc. THE NILSON REPORT
HSN Consultants, Inc. 2015 THE NILSON REPORT

CONTACTLESS EMV PAYMENTS: BENEFITS FOR CONSUMERS,

MERCHANTS AND ISSUERS is a new white paper created by the Smart
Card Alliances Payments Council. It can be downloaded at
http://www.smartcardalliance.org/publications-contactless-emv-paymentsbenefits-for-consumers-merchants-and.issuers/.
IDSCAN.NET, provider of cloud-based ID scanning applications called
VeriScan Online and VS Max, now offers fully integrated payment processing.
Businesses can process card payments and automatically capture and link
them to the purchasers ID. It allows two separate actions to be processed
as one entry. Denis Petrov is CEO, (504) 434-0222, denis@idscan.net,
www.idscan.net.

CAP COM FEDERAL CREDIT UNION will use Vantiv to provide debit,
credit, and prepaid card account processing. The credit union has 126,000
members. Bill Hampton is General Manager, Financial Institution Services at
Vantiv, (913) 254-7781, bill.hampton@vantiv.com, www.vantiv.com.
Diana VanAmerongen is Chief Banking Officer at CAP COM FCU,
(518) 458-2195, dvanamerongen@capcomfcu.org, www.capcomfcu.org.
ACI WORLDWIDES SaaS-based UP eCommerce Payments provides
merchants worldwide with more than 350 alternative payment methods and
connections to acquirers in over 160 countries, as well as plug-ins to all major
ecommerce shopping carts. Also included is fraud fighting capabilities.
Mike Braatz is Chief of Product Officer, (781) 370-3600, michael.braatz@
aciworldwide.com, www.aciworldwide.com.

Management Changes
Ray Wizbowski has been appointed Chief Marketing Officer at
Entrust Datacard, (952) 988-1279, ray.wizbowski@
entrustdatacard.com. Julie Yang has been appointed
Senior Vice President, Core Business, China at Mastercard,
86 (21) 6105-1900, julie.yang@mastercard.com. Shawn Zheng has
been appointed Senior Vice President, Account Management,
China at Mastercard, 86 (10) 8519-9300, shawn.zheng@
mastercard.com. Yvonne Stelpflug has been appointed Vice
President of Operations at TMG, (515) 457-2000, yvonne.stelpflug@
tmg.global.

JULY 2016 / ISSUE 1091 / THE NILSON REPORT

JULY 2016 / ISSUE 1091 / THE NILSON REPORT

LLOYDS BANKING GROUP has renewed its agreement with TSYS to

continue processing commercial card accounts in the U.K. The group has more
than 30 million customers. It operates under the Lloyds Bank, Bank of
Scotland, and Halifax brands. Jennie Hill is Head of Commercial Cards at
Lloyds Banking Group, 44 (207) 574-8148, jennie.hill@lloydsbanking.com,
www.lloydsbankinggroup.com. Rob Hudson is Group Executive at TSYS
International, 44 (190) 456-2025, rhudson@tsys.com, www.tsys.com.

AUSTRIA CARD manufactured contactless and dual interface cards, as well

as NFC-based key fobs, stickers, and bracelets, have received FIDO certification for EMV smart payment cards. FIDO Alliances more than 200 company
and government agency members share technology and collaborate to
develop open specifications for universally strong authentication. Bernd Eder
is Head of R&D at Austria Card, 43 (1) 6106-5133, bernd.eder@austriacard.at,
www.austriacardag.com.

ENTERSEKTS authentication and mobile app security product, Transakt,

delivers a user-friendly adaptation of the 3-D Secure merchant checkout
service through a consumers smartphone. Netcetera, a Swiss software
company and provider of 3-D Secure service at its PCI DSS-certified data
center, will offer the technology to its clients. Schalk Nolte is CEO at
Entersekt, 27 (21) 815-2800, schalk@entersekt.com, www.entersekt.com.
Thomas Fromherz is Head of Payment and Card Services at Netcetera,
41 (44) 297-5818, thomas.fromherz@netcetera.com, www.netcetera.com.

MONERIS SOLUTIONS, the largest merchant acquirer in Canada and the

20th largest in the U.S., has relaunched the Moneris Developer Portal for
ecommerce and mobile developers that want payment integration tools. It
offers full search capabilities, an interactive knowledge base, and regular
blogs. Rob Cameron is Chief Product Officer, (416) 734-8954, rob.cameron@
moneris.com, www.moneris.com.

AMADEUS, a travel technology company, has launched Amadeus B2B

Wallet Prepaid, a virtual card product for travel agencies to pay their
suppliers. Ixaris is the card program manager. Its payment platform enables
Amadeus to source virtual cards through multiple issuers. Celia Pereiro is
Head of Travel Payments at Amadeus, 34 (91) 177-1034, celia.pereiro@
amadeus.com, www.amadeus.com. Alex Mifsud is CEO at Ixaris,
44 (207) 025-5545, alex.mifsud@ixaris.com, www.ixaris.com.
SELECTA, Europes largest operator of vending machines with more than
150,000 in 18 countries, is deploying Ingenico contactless terminals as well
as that companys omnichannel transaction management platform. One
benefit is instant refunds to a payment card account. Refunds account for 1%
to 3% of total vending sales, and their processing cost is sometimes higher
than the value of the merchandise refunded. Guillaume Pascal is Managing
Director Ingenico France, 33 (1) 4625-8200, guillaume.pascal@ingenico.com,
www.ingenico.com.

WESPAY PAYMENTS SYMPOSIUM 2016

Three-Day Conference
September 12-14, 2016
The Green Valley Ranch Resort Spa & Casino
Henderson, Nevada
Topics include: payment channels, cybersecurity, faster payments,
strategy and innovation, and same day ACH. Speakers represent:
Federal Reserve Bank, WesPay, JPMorgan Chase, ECCHO, G2 Web
Services, Ensenta, EZForex, and more. Cost is $895 (member); $1,395
(nonmember). (Use discount code 16PSNR.) Contact Kari Patrick at
Professional Development Group, (812) 339-6374, kpatrick@
prodevmeetings.com. Register at
SAVE
www.paymentssymposium.org.

4
3

FIME has been accredited by JCB to support issuing banks with JCB EMV
migration and certification projects to confirm that their contactless, mobile
J/Speedy v3.0 products are personalized correctly. Arnaud Peninon is VP Asia-Pacific and Global Laboratories at Fime Asia, 886 (2) 6636-0430,
arnaud.peninon@fime.com, www.fime.com.
MASTERCARD will offer Apple Pay to issuers in France, along with the
Mastercard Digital Enablement Service, which creates a unique device
account number (token) that is encrypted and stored in the secure element
on the iPhone or Apple Watch. Bart Willaert is General Manager, France at
Mastercard, 33 (1) 4273-8104, bart.willaert@mastercard.com,
www.mastercard.com.
COMPUTOP, a payment service provider that processes $17 billion annually
for more than 10,000 large international merchants and other partners, now
offers those customers the Amazon Payments interface, used by more than
300 million Amazon customers in online stores worldwide. Ralf Gladis is CEO
at Computop, 49 (951) 980-090, gladis@computop.com, www.computop.com.

Featured Conference

Subscribers to The Nilson Report

will receive a 20% discount.

U.K. COMPETITION APPEAL TRIBUNAL has ruled that Mastercard must

pay $90 million (68.6 mil.) to supermarket chain Sainsbury related to litigation over interchange fees. Mastercard expects to take a pretax charge of
approximately $90 million (U.S.) as a special item in its second quarter 2016
financial results.

20%

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INGENICO EPAYMENTS has made its Ingenico Connect and developer

hub available to any online business at its GlobalCollect platform. Businesses
benefit from the international payment methods, multicurrency management,
and multiple languages for checkout. Ludovic Houri is VP Product,
33 (6) 0715-4992, ludovic.houri@ingenico.com,
www.ingenico.com/ePayments.
SUVIDHAA INFOSERVE, which provides money transfer, prepaid cards, and
bill payment services in India to 35 million people, has opened its network
of 90,000+ retail outlets to consumers wanting to recharge their MobiKwik
mobile wallets. MobiKwik has 30 million users who can use their wallets to
pay at 75,000 retailers. Paresh Rajde is Founder at Suvidhaa Infoserve,
91 (98) 2104-9194, paresh@suvidhaa.com, www.suvidhaa.com. Bipin Preet
Singh is CEO at MobiKwik, 91 (783) 869-3548, bipin@mobikwik.com,
www.mobikwik.com.
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Kerv Contactless Payment Ring

that powers their contactless
functionality. Available in black
or white with a range of
colors inside, rings
are waterproof,
hypoallergenic,
scratch-resistant,
and do not need
to be charged.
They cost $65.50
(49.99).
The Kerv app,
available for iOS and
Android handsets,
...does not need to be charged
can be used to turn
or paired with a smartphone.
a ring on and off
for added security,
but the ring does not need to
funded via PayPal, a bank transfer,
be paired with a smartphone to
or a credit or debit card.
enable a payment. In addition
Kerv rings are made of zirconia
to EMV-compliant Mastercard
ceramic, which does not interfere
payments, rings can also initiate
with the electromagnetic field
Wearable technology company
Kerv has developed an NFCbased contactless payment ring
that links to a deposit account at
PSI-Pay, a Mastercard-licensed
payment institution. Users are
also given the choice of a plastic
prepaid Mastercard card for
in-store purchases or a virtual
Mastercard number if they want
only an online payment option.
The Mastercard products can be

proprietary Oyster card payments

for Transport of London.
Kerv will begin
shipping rings
at the end of
this month.
The company
is looking
for partners
interested in
promoting its rings
along with future
products, including bracelets
andwatches.
Phil Campbell is CEO at Kerv in
London, United Kingdom,
44 (20) 8133-1654, phil@kerv.com,
www.kerv.com.
Phil Davies is Managing Director
at PSI-Pay in Horsham, United
Kingdom, 44 (1403) 788-331, phild@
psipay.com, www.psipay.com.

Masterpass Goes Omnichannel

from page 1...

from 33 countries. Now it has expanded beyond

ecommerce to be completely omnichannel, adding
acceptance at the point of sale as well as on the
mobile web and in a mobile app with everything
operating on one integrated platform.
Consumers with Android devices will use
Masterpass to pay at the more than 5 million in-store
locations in 77 countries that accept NFC-based,

EMV-compliant contactless payments. Masterpass

for Apple devices is not yet available for in-store

Consumers with Android devices

can pay at over 5 mil. merchants.
purchases. Merchants will use Masterpass APIs and
SDKs to enable checkout on the mobile web and
within mobile apps for Android and iOS.
Until now Mastercard has offered Masterpass
directly to cardholders. The omnichannel
version will launch through Masterpass mobile
wallet partnerships with card issuers. Roll out
began this month in the U.S. with Citi, Bank of
America, Capital One, SunTrust, Fifth Third,
KeyBank, Bank of the West, First Hawaiian, and
eight other U.S. issuers.
Outside the U.S., MBNA in the U.K. and
Absa in South Africa are recently announced
Masterpass wallet customers. Other banks in
Europe and the Middle East/Africa that have
signed on to issue omnichannel wallets will be
announced by year-end, with issuers in Canada,
> see p. 6

2016 HSN Consultants, Inc. THE NILSON REPORT

JULY 2016 / ISSUE 1091 / THE NILSON REPORT

Masterpass Goes Omnichannel

from page 5...

Latin America & the Caribbean,

and AsiaPacific to follow in 2017.
Existing commitments worldwide

DYNAMIC
CHECKOUT
BUTTONS
PRESENT AN
ISSUERS
CORPORATE
LOGO WHEN
CARDHOLDERS
MAKE A
PAYMENT
ONLINE

represent 80 million Mastercard

card accounts. All accounts can
be automatically enrolled via their
issuers online banking app.
Unlike Visas competing Visa
Digital Commerce app, issuers can
choose to integrate Masterpass
wallet features with their existing
mobile banking apps. They will
use Masterpass APIs and SDKs
to design and develop their own
branded products.
Issuers store card details on
Mastercard and other brands,

credentials on any future device

such as shipping information and
such as automobile keys.
payment preferences.
Masterpass provides dynamic
Cardholder credentials in
ecommerce checkout buttons
a Masterpass wallet
that can recognize a participating
will always be in sync
cardholders issuer and add the
with Masterpass in all
issuers brand to the checkout
acceptance channels.
process. Merchants only need
If a consumer adds
to add a single line of code for
a payment card in the
thisupgrade.
online channel, for example, it
will immediately show up as an
Pablo Cohan is Vice President,
option for payments initiated by
Product Management at Mastercard
theirsmartphone.
in Purchase, New York, (914) 249Issuers have the option of
2000, pablo.cohan@mastercard.
offering consumers the ability
com, www.mastercard.com.
to pay with
reward/loyalty
points at the
Mastercards New Look
point of sale.
In the future,
issuers will
gain the ability
to manage card

Mastercard to Purchase VocaLink

from page 1...

$220 million (169 million) if performance targets

are met. The agreement, which will take three months
or more to close, requires a majority of VocaLinks
shareholders, which are financial institutions in the
U.K. including Barclays, HSBC, Lloyds, RBS, and
Santander, to retain 7.6% ownership for at least
threeyears.
The U.K.s Payment Systems Regulator, which
wanted more competition in the local payment
processing market, is expected to support the sale.
VocaLink handles more than 90% of all salaries,
70% of all household bills, and nearly all government
benefits transfers in the U.K.
VocaLink had revenues of $240 million (182
million) for 2015, earned from processing more than
11 billion transactions from three payment platforms.
Bacs handles credit and debit payments between
bank accounts for corporations, consumers,
andgovernments.
Faster Payments is a real-time, account-to-account
switch service available for mobile, internet, and
telephone channels.
Link is a nationwide ATM switch and offers
settlement services. VocaLink also offers Zapp, a

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Pentagram, the international design firm

that updated visual
identities for Verizon,
Saks Fifth Avenue,
New York Magazine,
Hillary Clinton, and
others, is responsible for
Mastercards new look.
The new
logo
retains
1996
the paired
circles that have been
around since 1968, but
they have gone from
interlocking to

overlapping, which is how

they originally appeared.
Also back
is lettering that
1968
is entirely
lowercase, although the
corporate name has been
moved from within the
circles to below them.
The flat design that
eliminates shadows is in
keeping with a growing
trend that appears in
revamped graphics for
companies like Instagram
and Uber.

real-time mobile payment app that transfers funds

between bank accounts. VocaLink also provides
services to support faster ACH processing in Sweden,
Singapore, Thailand, and the United States. Its U.S.
partner is The Clearing House. Earlier this year,

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VocaLink won a contract in the

Netherlands to support YourCash,

issuers Lloyds, RBS/NatWest,

Barclays, HSBC, Santander, and
Nationwide are
Visa clients. The
acquisition will

Group (Lloyds, Bank of Scotland,

and Halifax) are customers of Pay
by Bank, which will launch as an
online payment acceptance mark
before year-end.
David Yates is

an independent ATM operator.

With the acquisition,
Mastercard will gain access to
nearly 100% of all checking
accounts in the U.K., something it
has lacked for several years as Visa
dominates the U.K. debit card
market. The six largest debit card

Gains access to deposit accounts at

Barclays and Lloyds Banking Group.

CEO at VocaLink
in London,
United Kingdom,
44 (203)
818-4600,

bring Mastercard the Pay by Bank

mobile app powered by Zapp.
Barclays and the Lloyds Banking

david.yates@vocalink.com,
www.vocalink.com.

Top U.S. Consumer Credit/Debit Issuers

from page 1...

Those top 50 credit and debit/prepaid card

rankings combined consumer and commercial card
products. The largest issuers of Mastercard and Visa
commercial cards were ranked in issue #1089.

spending tied to commercial card products. The 50

largest issuers of credit cards in 2015 were listed in
issue #1081. The 50 largest issuers of debit/prepaid
cards in 2015 were listed in issue #1084.

Largest U.S. Issuers of Consumer Visa and Mastercard Cards 2015

Credit
Rank

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Issuer

JPMorgan Chase
Bank of America
Citibank
Capital One
Barclays
Wells Fargo
U.S. Bank
Synchrony Financial
USAA
Cabelas WFB
Navy FCU
PNC
TD Bank
First Natl Nebraska
Alliance Data
ICBA Bancard
Fifth Third
Nordstrom
Credit One
BB&T
State Farm
Pentagon FCU

Consumer
All
Percent Basis Pt.
Purch. Vol. Purch. Vol. Consumer Chg. vs.
(bil.)
(bil.)
2015
2014

$433.28
$210.12
$177.48
$169.51
$64.31
$61.93
$52.14
$42.20
$35.69
$20.78
$13.90
$11.45
$10.23
$9.90
$8.67
$5.85
$5.41
$5.13
$5.06
$4.63
$3.39
$3.21

$541.88
$285.31
$219.40
$210.33
$65.21
$108.26
$107.85
$42.20
$35.69
$20.78
$13.98
$27.88
$11.49
$14.05
$8.67
$5.85
$10.59
$5.40
$5.06
$8.18
$3.69
$3.21

79.96%
73.65%
80.89%
80.59%
98.62%
57.21%
48.34%
100.00%
100.00%
100.00%
99.40%
41.08%
89.00%
70.44%
100.00%
100.00%
51.08%
95.12%
100.00%
56.58%
91.66%
100.00%

49
53
5
145
13
140
43

6
24
125
137

4
212

21
3

Debit
Rank

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Debit card volume includes prepaid cards. Some prior year figures have been restated.

2016 HSN Consultants, Inc. THE NILSON REPORT

Issuer

Wells Fargo
Bank of America
JPMorgan Chase
U.S. Bank
PNC
USAA
Regions Bank
TD Bank
Navy FCU
SunTrust
Capital One
BB&T
Fifth Third
Citibank
The Bancorp Bank
Citizens Bank
ICBA Bancard
Green Dot
MetaBank
State Empl. CU N.C.
M&T Bank
KeyBank

Consumer
All
Percent Basis Pt.
Purch. Vol. Purch. Vol. Consumer Chg. vs.
(bil.)
(bil.)
2015
2014

$255.90
$255.42
$190.07
$54.64
$53.01
$46.30
$35.32
$32.23
$29.74
$27.73
$27.17
$25.90
$24.61
$22.83
$18.63
$17.33
$16.69
$16.06
$13.37
$11.58
$10.99
$10.22

$287.00
$290.35
$204.76
$59.06
$59.30
$46.30
$37.93
$36.17
$30.04
$32.00
$28.40
$30.08
$26.71
$28.41
$39.99
$19.80
$16.69
$16.06
$27.98
$11.58
$12.03
$11.49

89.17%
87.97%
92.83%
92.52%
89.40%
100.00%
93.12%
89.11%
98.98%
86.66%
95.65%
86.10%
92.14%
80.33%
46.59%
87.53%
100.00%
100.00%
47.79%
100.00%
91.36%
88.91%

4
63
213
1
14

82
167
8
35
3
3
27
63
601
0

30

22
4

2016 The Nilson Report

JULY 2016 / ISSUE 1091 / THE NILSON REPORT

Prepaid Cards in the U.S.

Top 50 U.S. Prepaid Card Issuers

from page 1...

13.0% over 2014. Spending was tied to 4.25 billion

purchase transactions, an increase of 12.3% from the
prior year. Purchases averaged $34 per transaction and
$522 per card. Cash withdrawals at ATMs or obtained
over the counter at financial institutions are not
included in purchase volume shown in the table here.
There were 278.0 million Visa, Mastercard, and
Discover branded prepaid cards in circulation from the
50 largest issuers at year-end 2015, an increase of 5.9%
over year-end 2014. Cards were reloadable or onetime-only type issued with a specific monetary value.
Prepaid cards with Visa, Mastercard, and Discover
brands include those bought by consumers for
purchases of goods, healthcare costs, insurance
premiums, and for travel/transportation/transit. They
are also issued by corporations and governments for
payroll, tax and other refunds, benefits programs,
rebates/rewards, and corporate incentives.
The Bancorp Bank was the largest prepaid card
issuer last year, a position it has held since 2012.
However, its purchase volume market share among

Company

the 50 largest decreased to 22.27% from 23.88% in

2014. The Bancorp Banks market share of cards in
circulation was 29.94%, up from 28.65%. Its market
share of purchase transactions was 18.04%, down
from19.73%.
MetaBank remained the second largest issuer, a
position it has held since 2012. Its market share of
purchase volume among the top 50 issuers increased to
19.27% from 16.35% in 2014. MetaBanks market share
of cards in circulation was 14.95%, up from 13.67%. Its
market share of purchase transactions was 19.93%, up
from 16.74%.
Comerica Bank remained the third largest
issuer even though its market share of purchase
volume among the top 50 issuers slipped to 11.30%
from11.60%.
Among the top 25, MB Financial had the largest
increase in purchase volume (up 134.1%), followed
by Fifth Third Bank (up 132.0%), Navy FCU (up
49.0%), Comdata (up 46.4%), BofI Federal Bank (also
up 46.4%), MetaBank (up 33.1%), and PNC Bank
(up31.1%).

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

Prior issues: 1067, 1043, 1020

Includes Visa, MasterCard, and Discover prepaid cards.

Some prior year figures have been restated.

Cards in circulation from the 50

largest issuers increased 5.9%.

Rank

Purchase Volume
(mil.)
Chg.

VISIT US ONLINE AT WWW.NILSONREPORT.COM

The Bancorp Bank

MetaBank
Comerica Bank
Green Dot Bank
JPMorgan Chase
Bank of America
H&R Block
U.S. Bank
UMB Bank
MB Financial
Wells Fargo
Citibank
BofI Federal Bank
Sunrise Banks
Comdata
PNC Bank
HSA Bank
Metropolitan Comml Bank
BB&T
Fifth Third
Regions Bank
SunTrust Bank
Central Bank (Mo.)
TD Bank
Navy FCU
USAA
Commerce Bank (Mo.)
KeyBank
Arvest Bank
Synovus Bank
Patelco CU
BBVA Compass
TIB-The Indep. BankersBank
Kinecta FCU
State Employees CU (N.C.)
BMO Harris Bank
Intrust Bank
IBC Bank
Zions Bancorporation
Hancock/Whitney Bank
First Citizens Bank
Members 1st FCU
First Tennessee Bank
Umpqua Bank
State Farm Bank
VyStar CU
Old National Bank
Affinity Plus FCU
Randolph Brooks FCU
First National Bank Alaska

$32,296.7
$27,942.2
$16,387.4
$16,055.0
$12,847.0
$6,767.3
$4,664.7
$4,593.9
$3,532.1
$3,089.5
$2,924.7
$2,782.8
$2,121.4
$1,492.2
$1,382.6
$1,119.2
$936.3
$735.0
$672.1
$620.9
$483.7
$341.2
$301.2
$196.2
$135.2
$102.9
$88.0
$86.7
$56.5
$36.7
$33.2
$27.9
$25.2
$22.4
$18.7
$17.4
$15.7
$14.6
$11.4
$8.0
$6.8
$5.3
$5.3
$4.8
$4.7
$3.1
$2.8
$2.3
$2.2
$1.9

5.4%
33.1%
10.1%
13.4%
8.0%
5.5%
8.5%
4.0%
15.9%
134.1%
5.4%
12.1%
46.4%
10.9%
46.4%
31.1%
27.0%
5.0%
0.2%
132.0%
6.7%
3.4%
15.7%
6.5%
49.0%
14.2%
28.0%
199.1%
20.1%
4.3%
4.7%
18.0%
7.8%
13.5%
1.4%
6.4%
3.4%
12.0%
11.4%
17.2%
5.5%
15.1%
39.8%
48.1%
11.2%
12.8%
8.1%
9.2%
8.3%
16.6%

Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive

Top Issuers in 2015

(000)

Cards

83,228
41,550
12,652
4,500
11,160
15,442
2,000
19,726
6,034
2,030
11,851
12,501
4,451
23,626
3,742
4,942
2,112
5,250
570
1,901
349
874
260
2,824
593
189
106
870
74
26
42
27
262
53
184
192
49
13
14
3
55
98
23
2
1,200
131
110
39
71
1

Chg.

10.6%
15.7%
1.7%
4.3%
8.5%
12.9%
14.8%
8.2%
11.3%
78.1%
14.5%
22.0%
109.1%
19.6%
4.1%
12.9%
105.7%
5.0%
1.4%
27.6%
31.4%
4.4%
18.8%
6.0%
6.7%
6.0%
24.9%
34.5%
2.3%
31.4%
8.4%
26.8%
20.0%
14.1%
0.4%
3.4%
26.9%
4.6%
0.5%
3.7%
6.4%
6.9%
13.5%
49.0%
36.4%
18.4%
8.3%
25.0%
41.8%
6.9%

Purchase Trans.
(mil.)
Chg.

767.1
847.1
510.0
565.0
296.8
220.9
143.4
167.4
45.8
133.1
92.5
124.9
73.7
57.8
45.7
29.0
8.9
15.8
13.6
18.0
14.9
15.1
12.4
7.3
4.9
6.3
3.4
1.1
1.8
0.9
0.3
0.9
0.5
0.5
0.8
0.5
0.6
0.3
0.1
0.3
0.5
0.1
0.2
0.1
0.5
0.1
<0.1
<0.1
<0.1
<0.1

2.7%
33.7%
8.2%
10.1%
11.1%
4.7%
6.0%
4.0%
9.2%
117.4%
1.4%
9.6%
26.1%
40.3%
21.8%
23.2%
27.0%
5.0%
9.6%
230.3%
3.8%
3.8%
18.4%
10.8%
11.2%
13.3%
30.9%
22.4%
21.5%
4.6%
5.5%
22.4%
7.7%
13.1%
1.2%
4.5%
78.8%
2.9%
45.7%
12.1%
85.1%
3.9%
33.9%
46.0%
9.5%
7.8%
1.2%
14.2%
11.2%
14.9%

Use percent change to calculate 2014 figures.

2016 The Nilson Report

2016 HSN Consultants, Inc. THE NILSON REPORT

Avg.
Amt.

$42
$33
$32
$28
$43
$31
$33
$27
$77
$23
$32
$22
$29
$26
$30
$39
$105
$47
$49
$34
$32
$23
$24
$27
$28
$16
$26
$80
$31
$41
$110
$30
$51
$43
$23
$32
$27
$51
$105
$30
$14
$41
$26
$34
$10
$21
$35
$31
$28
$143

Gemalto/Worldline Mobile Card Partners

from page 1...

Apple Pay, Samsung Pay, Android Pay,

and other mobile payment systems.
The largest payment card
manufacturer in the world,

Gemalto is also a provider of the

cloud-based Allynis Trusted Services
Hub, which provides over-the-air
provisioning of card credentials
and applications to
mobilewallets.
Gemalto links to
handset manufacturers,
mobile network operators
(MNOs), and other
wallet providers. Worldline joins
other Allynis Trusted Services Hub
customers including third-party
processors Prosa in Mexico, DNP
in Japan, InComm in the U.S., and
Jetco in Hong Kong and Macau,

creates a token to replace a bank

identification number, to Gemalto.
Worldline will also provide cardholder
identity verification and other services.
Visa has made Worldline
the first processor in the world
to receive certification for an
in-house HCE token service.
Worldline will first use its in-house
services to support four clients
in France wanting Visa payWave
contactless payments on their
customers Android handsets.
Worldline is the top payment card
account processor in Germany and a

top seller of card account processing

software in Asia.
Worldline, which is majority
owned by Atos, reported revenue of
$676.3 million (614.8 mil.) for the
first six months of 2016, up 6.0%.
Net income of $101.3
million (92.1 mil.) was
... links to Apple, Samsung, Google,
up 89.1%. That figure
includes a gain of $56.3
MNOs, and other wallet providers.
million (51.2 mil.) from
shares in Visa Europe.
Worldline shares trade on the
payment card issuers in Italy, France,
Euronextexchange.
and Spain, as well as mobile network
operators including Vodafone,
Philippe Cambriel is President for
Orange, and NTT Docomo, and global
Europe, Mediterranean and CIS at
and domestic card and alternative
Gemalto in Meudon Cedex, France,
payment networks.
33 (1) 5501-6280, philippe.cambriel@
Gemalto earns revenue on a
gemalto.com, www.gemalto.com.
per-use and per-service basis for the
Wolf Kunisch is Head of the Global
Hub. The Hubs host card emulation
Business Line Financial Processing
(HCE) software development kit
& Software Licensing and Managing
(SDK) is certified by most global
Director of Germany & CEE at Worldline
payment networks and select
in Frankfurt, Germany, 49 (69) 6657domestic networks. It lets issuers
1500, wolf.kunisch@worldline.com,
customize payment apps to receive
www.worldline.com.
and managetokens.
The Worldline/Gemalto deal is
Prior issues: 1070, 1063, 1060, 1053,
global. Worldline will link its Token
1050
Service Provider platform, which
JULY 2016 / ISSUE 1091 / THE NILSON REPORT

Installment Payments for Mobile Web Purchases

from page 1

The company has contracts with more than 700

U.S. merchants. Customers are mostly people who
do not have the option of using a credit
card or do not want to use one. They
provide their
name, birth
date, phone
number,
and the last
four digits
of their Social Security number to Affirm, which uses
traditional and nontraditional databases to handle
underwriting. Affirms proprietary scoring models
for personal data, merchant data, and itemdata have
been fed by nearly two years of lending experience.
Typically approvals are granted in less than 30
seconds after a customers details are entered. It has
created a mobile device interface that now accounts
for more than 50% of loans.
If approved, customers select 3, 6, or 12 monthly
installments. Merchants receive payment in full
within two days. They pay Affirm from 1.9% to 2.9%
of the value of the sale. Affirm is licensed to offer
loans in all 50 states through a partnership with
Cross River Bank of Teaneck, New Jersey. Unlike
most alternative lenders, the loans are held on
Affirms balance sheet.
Consumers pay different finance charge rates
ranging from 10% to 30%. Paying in 3 months is
less expensive than 12 months. Finance charges
are not compounded. They are based on simple
interest. There are no balloon payments, hidden
fees, or penalty fees. Before customers agree to the
sale, Affirm lets them know the exact amount of
every monthly payment. All communication between

Affirm and customers is by text message. Nearly half

of all payments are facilitated by autopay from a
checking account or debit card account.
Affirm sees its biggest market opportunity with
the 75.4 million millennials (18 to 35 year olds).
Fewer than half of the adults in this group have a Visa
or Mastercard credit card. A majority have below
average credit scores. Other opportunities exist with
new citizens, more than 1 million every year, who
do not yet have a full credit score, and more than 20

Affirms venture and capital market

funding has reached $425 mil.
million people with bad credit who had average or
better credit scores before the recession.
Affirm has received a total of $425 million in
venture and capital market funding. It has more than
30 partnerships among acquirers who see installment
credit as a value-added service to merchant
processing contracts. Merchants can use Affirm tools
to offer special promotions such as 0% financing over
12 months, which gives them a marketing offer that
doesnt involve lowering their prices. Merchants pay a
higher discount rate to fund 0% financing offers.
Affirm also offers customers a virtual Mastercard
product that can be used at any retailer from a mobile
app. Cross River Bank is the issuer. Affirm purchased
personal financial management app Sweep earlier
this year to expand its reach beyond consumer loans.
Carl Gish is Chief Marketing Officer at Affirm in San
Francisco, California, (415) 984-0490, carl@affirm.com,
www.affirm.com.

Middle East/Africa Cards 2015

from page 1...

Purchase Transactions on Cards

Issued in Middle East/Africa 2015 vs. 2020
Market
Share >

Brand

1>
2018

2020

1>
46

44

2013

2015

54

52

2015 (Bil.) 2020 (Bil.) Increase

Visa

2.32

3.87

Mastercard

1.89

3.41

Amex

0.06

0.08

47%

Diners

0.03

0.04

48%

4.29

7.40

2016 The Nilson Report

67%
81%

73%

63.45% of total volume in 2015,

down from 63.74% in 2014.
Visa purchase volume was up
$21.82 billion (14.2%) over 2014.
Mastercard purchase volume was
up $17.58 billion (17.1%). Diners
Club increased by $0.62 billion
(20.0%), and American Express
grew by $0.58 billion (8.1%).
Visas purchase volume market
share declined 52 basis points to
57.12% and Mastercards increased

61

10

VISIT US ONLINE AT WWW.NILSONREPORT.COM

61%

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132%

35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%

Year-Over-Year Growth/Decline in Purchase

Volume* on Cards Issued in Middle East/Africa

Middle East and Africa at yearend 2015 totaled 246.2 million, up

12.7%. Visa and Mastercard cards
accounted for 99.24%.
Mastercard added 19.9 million
cards and its market share grew to
44.57% from 41.10%. Visa added
7.7 million cards and its market
share fell to 54.67% from 58.10%.
Visa cards issued in the Middle
East and Africa region accounted
for 4.53% of all Visa cards in
circulation worldwide at the end
of 2015, up from 4.43% in 2014.
The Middle East and Africa
region accounted for 2.53%
of Visas worldwide purchase
volume in 2015, up from 2.45% in
2014, and 1.84% of its purchase
transactions, up from 1.81%.
Mastercard cards issued
in the Middle East and Africa

Mastercard

Visa

Amex
Diners

*in local currency

2016 The Nilson Report

01

03

05

07

09

11

13

15

Visa and Mastercard cards

generated 4.21 billion purchase
transactions in 2015, which
equaled 98.03%
of the Middle
Purchase transactions reached
East and Africa
4.29 bil. in 2015, up 16.3%.
region total for
all global brand
region accounted for 6.97% of all
cards, up from 97.99%.
Mastercard cards in circulation
Visas purchase transaction
worldwide at the end of 2015, up
market share slid to 54.05% from
from 6.33% in 2014.
55.26%. Mastercard gained share
The Middle East and Africa
to 43.97% from 42.74%. American
region accounted for 3.58% of
Expresss share fell to 1.31%
Mastercards worldwide purchase
from 1.37%. Diners Clubs share
volume, up from 3.42%, and
increased to 0.66% from 0.64%.
3.16% of its purchase transactions,
Global brand credit, debit, and
up from 3.06%.
prepaid cards in circulation in the

63 basis points to 39.14%.

American Expresss share declined
by 17 basis points to 2.53%. Diners
Clubs share increased 5 basis
points to 1.21%.
Cash accounted for 67.89% of
total volume for Visa (down from
68.48%), 57.41% for Mastercard
(up from 56.71%), 2.53% for
American Express (down from
2.65%), and 2.08% for Diners
Club (up from 1.96%).
Purchase transactions for goods
and services generated by Visa,
Mastercard, American Express,
and Diners Club cards issued in
the Middle East and/or Africa
reached 4.29 billion, up 16.3%.

Middle East/Africa General Purpose Cards 2015 vs. 2014

Brand

Volume (bil.)
Purchases Chg.

Visa

$546.07

12.1%

$175.35 14.2%

$370.73 11.1%

4,630.2 10.2%

2,319.8 13.7%

134.6

Mastercard

$282.09

19.0%

$120.15 17.1%

$161.94 20.5%

2,841.1 20.8%

1,887.1 19.6%

109.7 22.2%

$7.96

8.0%

3.0%

58.1 11.5%

56.4 11.8%

$3.80
$839.93

20.1%
14.3%

$0.08 27.2%
$532.95 13.8%

28.7 19.6%
7,558.1 14.0%

28.3 19.5%
4,291.6 16.3%

Diners Club
Totals

$7.76

8.1%

$3.72 20.0%
$306.98 15.2%

$0.20

Chg.

Total

Cards
(mil.)
Chg.

Chg.

American Express

Cash

Transactions (mil.)
Chg.
Purchases Chg.

Total

1.4

6.0%
8.3%

0.4 0.2%
246.2 12.7%

Includes all general purpose consumer and commercial credit, debit, and prepaid cards. Currency figures are in U.S. dollars. Change figures are based on local
currency. Some prior year figures have been restated. Includes Israel. Visa includes Electron. Mastercard excludes Maestro & Cirrus.
2016 The Nilson Report

2016 HSN Consultants, Inc. THE NILSON REPORT

JULY 2016 / ISSUE 1091 / THE NILSON REPORT

11

 2016 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly
prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

Visa/PayPal Partnership
from page 1...

to tie payments for goods

purchased to Automated
Clearing House (ACH)-based
transactions that disintermediate
the Visa network. Instead, it will
give consumers the opportunity
to position a Visa card as their
preferred payment option for
PayPal transactions in any channel

online, in store, mobile web,

and in app. PayPal will design
customer notification strategies to
communicate that fact.
Last year, there were 4.28
billion (up 13.4%) transactions
through the ACH classified
as Internet. That category
includes PayPal wallet payments
to merchants. Firm figures for
PayPal are not available. However,
it is known that a majority of
ACH Internet payments are for
insurance premiums. The Nilson
Report estimates PayPal accounts
for 30%. Visa held a 76% share
of debit card spending in the U.S.
versus Mastercard from 36.85
billion Visa debit card purchase
transactions. When some of
PayPals ACH transactions move
to cards, the Visa network and its
issuers could see an increase of up
to 1 billion transactions.
PayPal will join the Visa Digital
Enablement Program (VDEP)
to gain access to the Visa token
service. Other payment facilitators
in VDEP include Samsung and
Alphabet (Android Pay). The
ability to request a token from

12

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Venmo accounts to their bank

accounts via their Visa debit
cards. This bi-directional service
will disintermediate the ACH.
Consumers will gain increased
liquidity because the Visa service
is faster than the ACH.
The new deal will also shore up
a minor problem in the current
exchange of data between the
companies on PayPal transactions
involving Visa cards. Some
smaller web sellers are classified
as miscellaneous. The new
deal calls for coding them with a
specific merchant category. Issuers
will benefit from transactions that
qualify for higher interchange.
Cardholders could benefit from
transactions that qualify for
rewards points.

Visa opens all Visa payWave

contactless POS terminals in the
U.S. (and worldwide) to PayPal
wallets in Android smartphones.
This puts PayPal on par
with Apple Pay, Samsung
Pay, Android Pay, and
mobile wallets from Visa
and Mastercard.
Any merchant with a
Visa payWave terminal will be
able to handle a PayPal wallet
transaction. When transactions
occur at a merchant with which
PayPal does not have an existing
relationship, the payment will
be handled by
the merchants
Venmo, PayPals P2P money transexisting acquirer.
fer service, also gets Visa tokens.
If there is a
contract, PayPal
PayPals contract with Visa is
will deliver the transaction to
not exclusive. Similar deals will
Wells Fargo Merchant Services,
be completed with the other card
which acquires card payments
networks. Visa and its issuers
forPayPal.
do have a 12-month exclusive on
Venmo, PayPals personmarketing initiatives tied to the
to-person money transfer
new partnership.
service, also gets access to the
PayPal has received financial
Visa token service, supporting
incentives from Visa for increased
its repositioning to a more
volume. Visa has also promised
comprehensive mobile wallet
PayPal price stability.
product. What is only true for
in-app sales today could include
Jim Magats is Head of Global
in-store sales tomorrow.
Core Payments at PayPal in
Visa and PayPal have agreed
San Jose, California, (408) 967to provide U.S. consumers the
1000, jmagats@paypal.com,
opportunity to move money
www.paypal.com.
into and out of their PayPal and

David Robertson, Publisher

July 29, 2016

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