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IBM Acquires European Payment Fraud Vendor IRIS Analytics

Published on January 26, 2016, by in Merger & Acquisitions.

In mid-January IBM announced the acquisition of IRIS Analytics, a data modeling and analytics provider based in Germany that focuses on risk management for issuers and payment providers. This is IBM’s second acquisition in risk management for the financial services industry following their 2013 purchase of Trusteer.

IRIS Analytics was founded in 2007 and provides a data modeling and analytics platform with real-time risk scoring to support payment card and mobile payments. The acquisition will bolster IBMs fraud prevention and eCommerce services, complimenting their IBM Security Trusteer Advanced fraud protection solutions.

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Mobile Driving More Sales So Far this Holiday Season

Published on December 2, 2015, by in Industry News, Payments.

Consumers made more than $2 billion worth of purchases in the mobile eCommerce channel between Thanksgiving, Black Friday and Cyber Monday. Adobe reports that mobile devices accounted for nearly half of online shopping visits while comScore estimates that mobile eCommerce spending increased 53 percent from last year on Cyber Monday.

If the consumer shopping trends observed from Thanksgiving through Cyber Monday continue, merchants can expect to generate a lot of revenue in the mobile channel this holiday season. According to estimates from Adobe’s Digital Index, mobile shopping visits exceeded desktop site visits on Thanksgiving Day. Consumers continued to favor mobile devices more this year on Black Friday and Cyber Monday as well.

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eCommerce Retail Spending Thanksgiving through Cyber Monday Grew 10 Percent While Brick-and-Mortar has Another Year of Decline

Published on December 2, 2015, by in Industry News, Payments.

According to estimates from comScore, U.S. consumers spent over $7.2 billion online from PCs during the five day period from Thanksgiving to Cyber Monday, up 10 percent from $6.5 billion last year. As more consumers chose to shop online retail sales at the point-of-sale declined on Thanksgiving and Black Friday for the second consecutive year. According to estimates from ShopperTrack, brick-and-mortar sales totaled $1.8 billion on Thanksgiving and $10.4 billion on Black Friday, each down about 10 percent from 2014.

Meanwhile desktop eCommerce retail spending on Black Friday grew nearly 10 percent this year to $1.66 billion up from $1.51 billion in 2014, according to comScore data. Although ShopperTrak reports that brick-and-mortar retail volume fell 10 percent on Black Friday, it still totaled $11.6 billion for the day, which is about 7 times the desktop eCommerce spending. While the bulk of Black Friday sales still occur at physical retail stores the share of total Black Friday sales occurring online continues to grow as online spending trends upward and in-store spending hits another year of decline. Nearly 16 percent of Black Friday sales occurred online this year, compared to 14 percent last year, 11 percent in 2013 and below 9 percent every year prior.

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Target and Home Depot Data Breaches Cost Each More Than $250 Million

Published on December 2, 2015, by in Data Breach, Industry News.

After completing a $67 million settlement with Visa in August regarding the high profile data breach Target experienced in late 2013, the company this week announced acceptance of a $39.4 million dollar settlement with MasterCard and issuing banks. Home Depot, who suffered a notable data breach in 2014, also reached a settlement with MasterCard according to court filings. Each retailer has incurred more than one-quarter billion dollars in expenses related to their respective data breaches.

While MasterCard tentatively approved a $19 million settlement back in April regarding the Target data, several issuing banks rejected the offer. In early December the parties reached an agreement that has Target compensating card issuers as much as $20.25 million with another $19.11 million going to MasterCard.

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Visa Reports Increase in Use and Acceptance of EMV Following Liability Shift

Published on December 2, 2015, by in Industry News, Payments.

Visa recently released data and figures regarding EMV usage in the first full month of purchases following the October 1st EMV liability shift, adding that they are “extremely encouraged” with the 42 percent increase in chip-on-chip transaction volume and the 49 percent increase in merchant locations that can accept EMV in just one month’s time. The real test for EMV, however, will be whether its use continues to increase during the peak times of the holiday season when stores are busy and merchants want to keep lines moving.

In late November Visa announced several promising facts and figures regarding the growth in use and acceptance of EMV cards in the United States. The card association reported that there are now 180.6 million Visa EMV cards in the U.S., 57 percent of which are credit cards. This represents about 25 percent of the 720 million Visa payment cards in circulation in the United States, up from 18 percent in July.

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Mobile Payment Volume at the Point-of-Sale Will More Than Double in 2015 and is Expected to Grow by More Than 200 Percent Next Year

Published on November 4, 2015, by in Industry News, Payments.

According to a new forecast from eMarketer, U.S. mobile payments at the point-of-sale, including NFC, QR codes and other methods, will grow from under $4 billion in 2014 to nearly $9 billion this year before really taking off in 2016 when mobile contactless payments are expected to exceed $27 billion. The number of mobile proximity payment users in the U.S. is expected to double over this time frame while the average amount each user spends via mobile at the point-of-sale grows nearly threefold.

While the number of consumers in the U.S. who make mobile payments at the point-of-sale is increasing quickly, it is still only a small subset of all mobile users. eMarketer estimates that 10 percent of smartphone owners made a mobile POS purchase in 2014, and this is expected to grow to 19 percent by the end of 2016. By 2019, however, it is forecasted that nearly one-third of smartphone users and more than one-quarter of all mobile phone users will make at least one mobile POS purchase per year.

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Samsung Pay and CurrentC Grow Their Reach with New Partnerships

Published on November 4, 2015, by in Industry News, Payments.

One of the more difficult and most important aspects of building a successful mobile wallet is ensuring that consumers can use it with the payment cards and mobile devices they want to use. By forming agreements with fourteen major card issuers and Verizon Wireless to support their mobile wallet, Samsung Pay as greatly expanded their potential user base. Similarly, through partnerships with Chase Pay and an ACH-based mobile payment service, MCX looks to make their CurrentC mobile wallet more attractive to consumers and merchants in advance of their full launch sometime next year.

At launch Samsung Pay could be used with a few Galaxy S6 and Note5 model smartphones operating on the AT&T, T-Mobile, Sprint and U.S. Cellular networks. Verizon, with over 100 million postpaid subscribers, was notably missing, but on October 21st the companies announced their partnership that would allow Verizon customers to use to Samsung Pay on eligible phones.

Chase announced a mobile wallet of their own, Chase Pay, and unexpectedly included MCX, or the Merchant Consumer Exchange, as a launch partner. MCX started a limited trial in September with their mobile wallet, CurrentC, in Columbus, Ohio. The Chase Pay-MCX partnership benefits both parties.

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PayPal Evolving P2P Payment App Venmo to Support Online and Mobile B2C Transactions

Published on November 4, 2015, by in Industry News, Payments.

The popular person-to-person payment service Venmo has continued to grow in terms of its user base and total payment volume, but with transaction fees waived for bank account and debit card based payments the company likely hasn’t yielded much profit. Intent on changing that, parent company PayPal recently announced plans that will enable merchants accepting PayPal to begin accepting Venmo for business-to-consumer transactions online and via mobile apps. PayPal CEO Dan Schulman said Venmo will be “fully monetized” by the end of 2016.

The company will start by targeting existing PayPal merchants. Tests will start by the end of this year where merchants will be able to accept Venmo and pay the same rates they do to accept PayPal, typically 30 cents per transaction plus 2.9 percent.

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Visa Inc. Acquisition of Visa Europe Will Bring 3 Billion Active Cards Under Single Entity

Published on November 4, 2015, by in Merger & Acquisitions, Payments.

Visa Inc., the U.S. based publicly traded organization, announced on Monday November 2nd that they would be acquiring Visa Europe Ltd., their London-based counterpart, for $23.4 billion in cash and stock. The acquisition will increase the number Visa Inc. payment card accounts by 20 percent and total payment processing volume by approximately one-third. The deal, pending regulatory approval, is expected to close by June of 2016.

According to their annual earnings report, Visa Europe managed over 500 million payment card accounts and processed more than 16 billion transactions worth $1.65 trillion in 2014. Visa Europe netted €219.8 ($241) million over that time, which was a 29 percent increase in profit from the year before. For comparison, Visa Inc. processed $1.265 trillion, about three-fourths of what Visa Europe processes annually, in the fiscal quarter ending this past September, and has 2.44 billion active card accounts.

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The Fraud Practice and CardinalCommerce Kickoff the 3rd Annual Consumer Authentication Survey

Published on October 13, 2015, by in Fraud Prevention, In The Press, Industry News.

Take the survey today to be entered in up to 5 drawings to win a new Apple Watch Sport™. The earlier you take the survey the more chances you have to win as a new drawing will be held each week.

The Fraud Practice and CardinalCommerce are proud to announce that the 3rd Annual Consumer Authentication Survey is now underway. Continuing with the success and momentum of the first two installments, the latest survey and coming 2016 report will continue to track the changing perceptions and trends around Consumer Authentication programs, how they are most successfully implemented and their impacts on chargebacks, risk management and the customer experience.

Please be sure to take the Consumer Authentication Survey this week. All who complete the survey will be entered in up to five drawings to win a brand new Apple Watch Sport™, and will additionally receive an advance copy of the Consumer Authentication Survey Report.

Take the Survey Today

More information about the Consumer Authentication Survey

 
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