Top 50 U.S. Prepaid Card Issuers Shipments of POS ...files.ctctcdn.com/610724ae101/64d24d2c-092e-4865-adc0-f592f73e… · POS Terminal Shipments Worldwide Last year 30.2 million payment

8 Top U.S. Prepaid Card Issuers 2014 9 U.S. Visa/MasterCard Credit Card Issuers — 101-150

10 POS Terminal Shipments 2014 11 POS Terminal Shipments 2014 by Region

2 – 4 Fast Facts 4 Investments & Acquisitions — June 2015 6 Vantiv Adds Capital One Merchants 6 Visa Digital Enablement Program

INSIDE CHARTS

PayPal to Acquire XoomXoom, an online and mobile money transfer and bill payment provider, will be acquired by PayPal for $890 million in cash in a transaction expected to close in the fourth quarter of 2015 or

POS Terminal Shipments WorldwideLast year 30.2 million payment card authorization terminals with integrated chip and/or magnetic-stripe card readers were shipped worldwide, up 32.0% from 2013. These devices were connected to PC-based point-of-sale systems or electronic cash registers (ECRs) or used as stand-alone terminals. Smartphones, tablets, peripheral

Third 50 Largest U.S. Credit Card IssuersTurn to page 9 for the MasterCard and Visa consumer and commercial credit cards issuers in the U.S. ranked 101-150 based on outstandings at year-end 2014.

Top 50 U.S. Prepaid Card IssuersThe 50 largest issuers of Visa, MasterCard, and Discover brand general purpose prepaid cards in the U.S. accounted for $126.71 billion in purchase volume at merchants in 2014, up 15.7% from

2Checkout’s Global Payment ServicesOnline sellers in 196 countries are linked to 2Checkout, which operates both as an independent sales organization (ISO) and a payment service provider (PSP) depending on a merchant’s size.

Coupons.com Links Merchants to CardholdersLast year Coupons.com processed more than 1.60 billion digital and print coupons and coupon code transactions for top consumer packaged goods companies and specialty retailer brand clients

PeerTransfer Cross-Border PaymentsInternational students pay $53 billion annually in tuition, room and board, and other fees to colleges and universities outside their home countries. PeerTransfer processed $1.05 billion of those

Canada 1%United States 7%

Mideast/Africa 9%Latin America 14%

Europe 16%Asia–Pacific 53%

Shipments of POS TerminalsMarket Shares by World Region

© 2015 The Nilson Report

Amex Express CheckoutAmerican Express cardholders in the U.S. can enter their americanexpress.com user ID and password, rather than their primary account number, to settle payments online at Burberry,

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FIRST AMERICAN PAYMENT SYSTEMS, a payment processor with more than 140,000 merchant customers, now offers the American Express OptBlue card acceptance program in the U.S. Merchants receive a single statement and settlement process. Neil Randel is CEO at First American Payment Systems, (817) 317-7220, [email protected], www.first-american.net.

AVALARA, a provider of cloud-based software that handles sales tax, VAT, and other transaction tax-related compliance, is now fully integrated with Stripe’s subscription billing ser-vices and the Stripe API. Stripe merchants can automatically calculate the sales tax owed, and automate the process for tax return preparation, filing, and remittance. Cristina Cordova is Head of Business Development at Stripe, (650) 416-8114, [email protected], www.stripe.com. Marshal Kushniruk is EVP of Global Business Development at Avalara, (206) 826-4900, [email protected], www.avalara.com.

FISERV’S Biller Advantage, which lets small businesses offer their customers electronic billing and payment options, will be available to merchant customers of U.S. Bank. Biller Advantage electronic billing, presentment, and payment capabilities are cost effective for businesses that send over 2,000 bills per month. Sam Robb is SVP at U.S. Bank, (651) 466-3000, [email protected], www.usbank.com. Rahul Gupta is President, Billing and Payments Group at Fiserv, (262) 879-5910, [email protected], www.fiserv.com.

CORRECTION: In issue #1066 we said that the Court of Appeals for the Second Circuit “agreed to give American Express a new trial to relitigate the same anti-steering pro-vision beginning the week of November 23, 2015.” In fact, the Court of Appeals will hear Amex’s appeal of the district court’s ruling that week. No decision has yet been made regarding whether a new trial will be granted.

CITI has redesigned Citi Mobile App for iPhone in the U.S. The app lets customers add and modify bill payees in addition to making payments, better leverages the iPhone’s camera to offer an auto-capture feature within Mobile Check Deposit, provides real-time notifications when charges are over a preset amount, searches and views historical transactions, and offers a “Make a Payment” button on the account summary page. Melissa Stevens is Global Head of Digital, Global Consumer Banking at Citi, (718) 248-6610, [email protected], www.citigroup.com.

JPMORGAN CHASE will pay $216 million to settle state and federal agencies’ charges of improper tactics used to collect and sell credit card debt. The settlement, with the Consumer Financial Protection Bureau and 47 states, requires Chase to stop trying to collect debt on 528,000+ accounts, and to stop selling debt. It includes $30 million to the CFPB, $136 million to the participating states, and $50 million in restitution. California and Mississippi have not signed on to the settlement. Both have pending litigation against Chase.

TSYS has received a long-term renewal contract to continue providing support for U.S. Bank’s commercial cards in the United States, Europe, and Canada, as well as for its acquir-ing business. Keith Pierce is EVP for Relationship Mgmt. at TSYS, (706) 649-2977, [email protected], www.tsys.com. Mary Miklethun is Global BankCard Program Mgr., Corporate Payment Systems at U.S. Bank, (612) 436-6188, [email protected], www.usbpayment.com.

AFFINION must refund $6.8 million to at least 73,000 cardholders to settle claims made by the Consumer Financial Protection Bureau that it charged for identity theft protection or credit card monitoring services but never provided the services. The alleged wrongdoing occurred between July 2010 and August 2012. Affinion must also pay $1.9 million in civil penalties.

EXPERIAN HEALTH, AXIAMED, and INGENICO will provide EMV-compliant payment card acceptance to hospitals and medical providers. Ingenico’s EMV card acceptance devices integrate with Experian Health’s PaymentSafe software for patient payment processing and collections. AxiaMed provides integrated payment technology to healthcare organizations and software providers. Scott Bagwell is President at Experian Health, (714) 830-5700, [email protected], www.experian.com. Kevin Kidd is President at AxiaMed, (805) 962-6114 x128, [email protected], www.axiamed.com. Rod Hometh is SVP, Strategic Development at Ingenico Group, North America, (678) 456-1200, [email protected], www.ingenico.us.

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3rd Annual Mobile Wallet 2015: August 18-21, 2015. The Grand Hyatt Hotel, Jakarta, Indonesia. Estimated attendance: 100. Cost for the four-day conference ranges from $1,495 to $2,195. Subscribers to The Nilson Report will receive a 15% discount. (Use code P46281TNR.) Contact Helen Pham at IBC Asia, (65) 6508-2416, [email protected]. Register at www.mobilewallet-asia.com.

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PAYMENT ALLIANCE INTERNATIONAL will offer its small business customers EMV-compliant mobile POS services in partnership with CardFlight under the name PAImobile Plus. John Leehy is CEO at PAI, (502) 212-4043, [email protected], www.gopai.com. Derek Webster is CEO at CardFlight, (646) 389-4450, [email protected], www.cardflight.com.

PROPERTY PAYMENTS, a division of International Bancard, lets property owners and managers accept credit and debit cards for one-time and recurring rent payments online. MasterCard is the preferred payment network accepted by Property Payments’ digital platform. Valerie Miller is VP of Acquirer Relations at MasterCard, (914) 249-2131, valerie_miller@ mastercard.com, www.mastercard.com. David Iafrate is CEO at International Bancard, (248) 581-8368, [email protected], www.intlbancard.com.

AMERICAN EXPRESS Premier Reward Gold Card customers now receive 2x Membership Rewards points for spending at U.S. restaurants, a $100 air-line fee credit at one airline for charges including baggage fees, a personal-ized travel service, and no foreign transaction fees from American Express for card purchases made outside the U.S. Lisa Durocher is SVP, Consumer Charge Cards & Benefits, (212) 640-8785, [email protected], www.americanexpress.com.

PAYONYX, an Australia-based provider of ewallet services to card issuers and a payment gateway to merchant acquirers, will jointly develop a facial recognition payment authentication service with Imagus. A consumer could make a purchase or withdraw cash by having their photo taken from a desk-top computer, mobile phone, tablet, POS terminal, or ATM. Daryn Griggs is CEO at Payonyx, 61 (401) 649-100, [email protected], www.payonyx.com. Glen Thomas is CEO at Imagus, 61 (423) 688-353, [email protected], www.imagus.com.

TAG SYSTEMS, a smart card provider with operations in Spain, Norway, Poland, and Colombia, has made an equity investment in Seglan, an IT company based in Spain. Seglan develops software and services for payments and ticketing. The companies will work together to offer financial institutions and other clients HCE and tokenization. Joaquin Miró is President at TAG Systems, (376) 879-600, [email protected], www.tagsystems.net. Imanol Garcia is CEO at Seglan, 34 (91) 144-0780, [email protected], www.seglan.com.

eMERCHANTPAY, a payment service provider (PSP) based in Bulgaria, has become a Master Merchant on UATP, the airline-owned payment network. The PSP will offer UATP card acceptance to online travel agencies and book-ing engines. Vania Koleva is COO at eMerchantPay, 359 (2) 421-0472, [email protected], www.emerchantpay.com. Ralph Kaiser is CEO at UATP, (202) 626-4000, [email protected], www.uatp.com.

EMERGING PAYMENTS ASSOCIATION (EPA) has launched Catalyst, an incubator for early stage payment companies in association with MasterCard and The Bancorp. In its first year, Catalyst will help 25 companies in the financial technology industry. The first six are Cashwave, Cubits, Digiseq, Pannovate, Peak Financial Services, and W2. Tony Craddock is Director General at EPA, 44 (207) 378-9890, [email protected], www.emergingpaymentsassociation.com.

GLOBAL PAYMENTS’ small and midsized merchants in Canada can gain funding for their businesses from cash advanced against future debit and credit transactions through an agreement with Evolocity Financial Group. Colin Wright is Senior VP, Strategic Portfolio Management at Global Payments Canada, (416) 847-4434, [email protected], www.globalpaymentsinc.com. Neil Wechsler is CEO at Evolocity Financial, (514) 738-2022, [email protected], www.evolocity.com.

FEXCO’S dynamic currency conversion (DCC) and multicurrency pricing (MCP) system is now being offered by Worldline to independent ATM deployers and financial institutions in Europe. The companies already work together offering DCC and MCP to retailers. Denis Cleary is Managing Director at Fexco, 353 (66) 976-1258, [email protected], www.fexcoms.com. Nick Dalgaard is Managing Director at Worldline, 352 (2) 602-9201, [email protected], www.worldline.com.

CASHCLOUD offers its 100,000 registered mobile eWallet customers a prepaid MasterCard issued by PPRO Financial, which is based in the U.K. The mobile eWallet also comes with an NFC sticker. Cashcloud customers are in Germany, France, the Netherlands, and Spain. Olaf Taupitz is Managing Director at Cashcloud, (352) 2644-1524, [email protected], www.cashcloud.com.

© HSN Consultants, Inc. 2015 THE NILSON REPORT 2JULY 2015 / ISSUE 1067 / THE NILSON REPORT

Seventh Edition

a 2015 Nilson Report PublicationWorldwide

Largest

© HSN Consultants Inc. 2015 THE NILSON REPORT, www.nilsonreport.com/specialreport. Reproducing or allowing reproduction

or dissemination of any portion of this document in any manner is a copyright violation subject to substantial fines.

Card Issuers

Merchant Acquirersand

in

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

Over 1,000* Card Issuersfrom 115 countries in all world regions*includes over 700 outside the U.S.

7th Edition

275* Merchant Acquirersfrom 65 countries in all world regions

*includes over 190 outside the U.S.

Figures include cardsin circulationand spending for

credit & debit card issuers

Order Todaywww.nilsonreport.com/specialreport

© 2015 HSN Consultants, Inc. THE NILSON REPORT 3JULY 2015 / ISSUE 1067 / THE NILSON REPORT

Below is a list of 58 mergers, acquisitions, and corporate financing deals that occurred in June 2015. In the first six months of 2015 there have been 316 transactions in

35 countries. Those deals involved card, mobile, loyalty, cryptocurrency, lending, and security companies. See issues 1065, 1063, 1061, 1059, and 1057.

AchieversPD Blackhawk Network1 * U.S. Auth0SE Series A2 $9.3 U.S. AzimoMT Series B3 $20.0 U.K. Bayside Business Sol.SO Jack Henry & Assoc.1 * U.S. Bitcoin CapitalCR crowdfunding $1.6 U.S. Bits of ProofCR Digital Asset Holdings1 * U.S. Blockchain CapitalCR Series B4 $7.0 U.S. Bond StreetLE Series A5 $110.0 U.S. Bridge2 SolutionsLO secured loan6 $5.0 U.S. Brooks BrothersCC Citi Retail Services7 * U.S. Case WalletHW seed funding8 $1.5 U.S. CashSentinelPR seed funding9 * Switzerland ClippMP Mobile Embrace10 $3.6 Australia CoinverseCR CoinBR1 * Brazil ControlEC seed funding11 $1.5 Canada Credit KarmaPF Series D12 $175.0 U.S. Currency CloudMT Series C13 $18.0 U.K. FaircentPP seed funding14 $0.3 India GlobeSherpaMP RideScout1 * U.S. GMOEC undisclosed round15 $65.0 Japan GoCoinCR Ziftr16 * U.S./Singa. GoFundMeCF undisclosed round17 * U.S. HyperledgerCR Digital Asset Holdings1 * U.S. IFAN FinancialMP equity credit line18 $2.5 U.S. IMEMT Ria Money Transfer1 * Malaysia IQcardCC undisclosed round19 * Russia JETCOPR UnionPay20 * Hong Kong LavuMP Series A21 $15.0 U.S. Marketing Software Co.SO Valid USA1 * U.S. MirrorPP Series A22 $8.8 U.S. Miura SystemsHW undisclosed round23 $16.0 U.K. Mobi724LO private placement24 $2.4 Canada MultipostSO ACCEO Solutions1 * Canada MyPoolinPP seed funding25 * India NordeaMA Nets26 $350.0 Nordics NubankMP undisclosed round12 $30.0 Brazil

Orga SystemsSO Redknee1 $34.4 Canada PayinTechHW undisclosed round27 $1.2 France PayRangeMP Series A28 $12.0 U.S. PepperbillHW Orderbird1 * Germany PersonaliLO Series B29 $12.0 U.S. Prairie CloudwareSO undisclosed round24 * U.S. Prodo TelecomSO Oberthur Technologies1 * France PromisePayEC equity stake30 $2.0 Australia Regal Pay. Sys.MA C&H Financial1 * U.S. RevealCR seed funding31 $1.5 U.S. Sequent SoftwareSO undisclosed round24 * U.S. SignifydSE Series A32 $7.0 U.S. SumUpMP undisclosed round33 * Germany TabbedOutMP Series C34 $21.5 U.S. TagcashEC undisclosed round35 $3.0 Philippines Tento TechnologiesSE undisclosed round36 * U.K. Track HoldingsMP Crowd Mobile1 $20.3 Neth. UnisendCR Bitso1 * Mexico VelocityMP undisclosed round25 $12.0 U.K. VogogoCR Series B37 $12.5 Canada White PaymentsPR PAYFORT1 * UAE

*Terms not disclosed. (1) Acquisition. (2) Led by Bessemer Venture Partners. (3) Led by Frog Capital. (4) Formerly Crypto Currency Partners. (5) Led by Spark Capital. (6) From Horizon Technology Finance. (7) Purchased private label card portfolio. (8) Led by FuturePerfect Ventures. (9) Led by GoBeyond. (10) Purchased 72%. (11) Led by Vanedge Capital. (12) Led by Tiger Global Management. (13) Led by Sapphire Ventures (formerly SAP Ventures). (14) From M&S Partners. (15) From Mitsui Sumitomo. (16) Merger. (17) Led by Accel Partners. (18) From Sea Otter Global Ventures. (19) From Finteca Holdings. (20) Purchased minority equity stake. (21) Led by Aldrich Capital Partners. (22) Led by Route 66 Ventures. (23) From DFJ Esprit Secondaries. (24) Undisclosed investors. (25) Individual investors. (26) Purchased merchant acquiring business. (27) Led by Fa Diese. (28) Led by Matrix Partners. (29) Led by Norwest Venture Partners. (30) From Westpac’s Reinventure Group. (31) Led by Resolute Ventures. (32) Including Lucas Venture Group. (33) Led by Venture Incubator. (34) Led by Wellington Management. (35) From Zeresoft. (36) Including RBS. (37) Beacon Securities, Clarus Securities, and Salman Partners. Company categories: CC = credit card, CF = crowdfunding, CR = cryptocurrency, EC = ecommerce, HW = hardware, LE = lending, LO = loyalty/coupons, MA = merchant acquiring, MP = mobile payments, MT = money transfer, PD = prepaid, PF = personal fi nance, PP = P2P payments, PR = processor, SE = security, SO = software.


AmountCompany Buyer/Investor (mil.) Country

AmountCompany Buyer/Investor (mil.) Country

Investments & Acquisitions June 2015


MASTERCARD is offering Qkr!, a digital payment and shopping app for Android and iOS devices in Chile. The app is called MasterPass in the U.S., Australia, and Canada. The first merchants to integrate Qkr! for checkout are the National, Estadio Monumental David Arellano, and La Portada stadiums, which will allow consumers to order food from their seats. Patricio Sandoval is General Manager, Chile at MasterCard, 56 (2) 2373-7200, [email protected], www.mastercard.com.

BRAZIL’S largest online payment processing service is PagBrasil, which has just launched Boleto Flash. A payment slip generated instantly online can be paid via Internet banking, at ATMs, or at any branch of participating banks. PagBrasil confirms the payment within a few hours and sends confirmation to the merchant. The system operates without possibility of chargebacks. Ralf Germer is CEO at PagBrasil, 34 (9) 3802-1660, ralf.germer@ pagbrasil.com, www.pagbrasil.com.

Investments & Acquisitions — June 2015



Warby Parker, Intermix, Newegg, Wall Street Journal, Ticketmaster, BarkBox, Ledbury, and Sabon.

Amex Express Checkout will soon also be available at Avis, Banana Republic, Cole Haan, Gap, Old Navy, 1-800-Flowers, and some of the merchants using Stripe to process their transactions.

Merchants receive code and application programming interfaces (API) to execute

Amex Express Checkout on their shopping carts. They do not need to make any changes to their back-office connections to acquirers.

The service aims to reduce shopping cart abandonment. Amex Express Checkout autofills fields on the checkout page with American Express card details and all related information such as billing and shipping information, phone numbers, and email addresses.

The primary account number (PAN) is not provided to the merchants. They are sent a token that includes a digital account number tied to the PAN. Cardholders review all fields to confirm information before they click to finalize the sale.

Merchants can also give cardholders the option to set up an account with them, and the merchant can choose to retain the digital account number to

facilitate future sales and obtain information for promotions. When authorization requests are made with stored tokens, the Amex Express Checkout API will update all billing, shipping, and other details, avoiding problems with processing data retained on file at merchants.

Amex Express Checkout is being promoted directly to cardholders. And American Express has created a website for merchants and developers to gain access to the code and API.

Amex Express Checkout does not require cardholders to create or manage a new account because it is not a wallet.

Amy Marino is Director, Digital

Partnerships & Development at

American Express in New York,

(347) 224-9394, amy.marino@aexp.

com, www.americanexpress.com.

For small and midsized customers 2Checkout is a PSP. For larger merchants it is an ISO. Merchants access 2Checkout’s platform using an API or either of

two hosted service models. The platform supports 26 currencies and operates in 15 languages.

A majority of 2Checkout’s 50,000 online and mobile merchants are small to midsized businesses in the U.S., where a majority of its transaction volume occurs. The company also supports merchants in Europe, Asia, Latin America, and the Middle East. Merchants sell physical and digital goods. Some use the platform for recurring billing.

In addition to its direct sales force, merchants come to 2Checkout through 1,300 channel partners including Bigcommerce, Shopify, FreshBooks, WooThemes/WooCommerce, osCommerce, X-Cart,

OpenCart, Ecwid, WHMCS, and Brink’s. More than 100 shopping cart providers worldwide are certified by 2Checkout, including 14 of the top 20.

Bigcommerce recently integrated with 2Checkout’s global payment platform, giving its 95,000 ecommerce businesses in 100 countries access to 2Checkout’s multicurrency service in minutes. Merchants already using 2Checkout will be referred to the Bigcommerce ecommerce platform.

2Checkout has received $60 million in private equity funding since 2012 from Chicago Growth Partners and Trident Capital. It recently established European headquarters in London.Kevin Gallagher is Senior VP, Business Development

at 2Checkout in Columbus, Ohio, (614) 921-2450,

[email protected], www.2checkout.com.

Bigcommerce will offer the platform to its 95,000 customers.

2Checkout’s Global Payment Services from page 1

Amex Express Checkout from page 1...


http://www.americanexpress.com

http://www.2checkout.com

The Visa Token Service is available at no charge to financial institutions and companies such as mobile handset manufacturers, computer and mobile operating system providers, recurring billers, ecommerce merchants, and others — if the parties sign on to the Visa Digital Enablement Program (VDEP). Google is the first company to join VDEP. It did so in advance of the upcoming launch of Android Pay, which will use tokens in NFC-compatible handsets to replace a Visa primary account number (PAN).

When Visa receives a request for a token, for example from Apple for Apple Pay transactions, it forwards the request to the card issuer for identification and verification of the accountholder. Upon approval, Visa issues a token to the PAN. It also has the ability to assign limits on the token’s validity for duration of use, type of device, purchase amount,

etc. Visa pushes the token over the air to the consumer’s handset, and subsequently manages the token over its lifecycle.

VDEP is part of Visa’s effort to devalue card data, making it

useless or at least less useful to criminals. VDEP, available worldwide except in 37 countries in Europe where Visa Europe operates its own token service, eliminates the need for bilateral agreements between

token requesters and card issuers — as long as the token requester does not plan on charging issuers transaction fees. Google will not charge issuers for Android Pay.

Capital One Merchant Services, the 37th largest U.S. acquirer, has signed a long-term revenue

sharing agreement with Vantiv, the 4th largest U.S. acquirer. Vantiv has been providing acquiring processing services for Capital One’s small business merchants and cardholder account processing for debit cards issued by Capital One.

The new agreement adds complete EMV-compliant credit and debit card processing and related support services for all active Capital One merchants.

Last year, those merchants handled $6.19 billion in Visa and MasterCard card payments and another $1.20 billion in American Express and Discover

card payments. Vantiv will deal directly with all merchants and handle everything except treasury management and ACH transaction services, which Capital One will continue to provide.

Vantiv began offering revenue sharing agreements in 2011. Partners include Union Bank, Comerica, People’s United, and Centier Bank. Capital One joins

that group. Vantiv is using revenue sharing partnerships to increase its geographic footprint while avoiding deals that would create interregional conflicts between its partners.

Acquisitions in 2013 and 2014 of Mercury Payment Systems, Litle & Company, and Element Payment Services

have helped Vantiv create a portfolio of merchant services as comprehensive as any available in the industry, and include support for mobile POS, integrated POS, ecommerce, and more.

Vantiv was already the largest PIN-based debit acquirer in the country.

Partners receive all processing products and related services

their merchants need as well as all compliance and regulatory management services they need

to satisfy bank examiners and payment networks.Stephanie Ferris is Senior VP and

General Manager of Merchant

Services for Financial Institutions at

Vantiv in Cincinnati, Ohio,

(513) 900-5131, stephanie.ferris@

vantiv.com, www.vantiv.com.

Prior issue: 1059

...available at no charge to financial institutions and other companies.

...full credit/debit card process-ing for all active merchants.

Visa Digital Enablement Program

Vantiv Adds Capital One Merchants


http://www.vantiv.com


with 62,000 store locations. For more than 44,000 of those stores, Coupons.com was the

only provider of digital coupons. The company started in 1998 marketing printed coupons before building a digital platform to help clients deliver offers to consumers online. Today its omnichannel capabilities include the Coupons.com website (more than 17 million consumers visit every month), the websites of merchants making offers, websites of more than 30,000 partner marketers, mobile providers (Samsung Wallet), social networks (1.5 million followers), email (4.7 million consumers receive a monthly newsletter), and

online advertising. All channels aim to drive consumers into physical stores, where more than 90% of all retail sales occur in the U.S.

Coupons.com offers can be percent-off discounts, dollars-off discounts, and prepaid cards. Offers can be one time only or reloadable. Merchants control the expiration date, limits, and budgets. Campaign and tracking analytics and reporting are provided.

Large retailer clients integrate with the Coupons.com platform

through a software-as-a-service model. Small and midsized businesses (SMBs) use the company’s Card Linked Offers platform, which requires little integration.

Cardholders select an offer from the Coupons.com website, from the offer publisher’s website,

or from within the publisher’s app. They link a payment card and use that same card when they purchase inside a store. There is no Coupons.com app to download, coupon to print, or code to show at checkout.

Coupons.com does not have contractual relationships with any credit or debit card issuers. Consumers register any Visa, MasterCard, or American Express payment card at the Card Linked Offers website. All compensation to Coupons.com is based on performance.

Eventually, Coupons.com wants to build its network of SMBs interested in

making offers to local cardholders to gain new customers, improve purchase frequency, and increase average purchase amount. Bruce Sattley is Senior VP, Product

Management at Coupons.com in

Mountain View, California, (650)

605-4600, bsattley@couponsinc.

com, www.coupons.com.

payments last year including $450 million from China, mostly to schools in the U.S. The company’s cross-border payment platform handles 65 currencies and allows students to make payments in their own

currency using bank transfers, credit cards, wire transfers, ewallets, and online banking. More than 52% of peerTransfer users send payments from China, India, and South Korea.

Citibank and Deutsche Bank are depository financial institutions for peerTransfer. Worldpay and Digital River handle MasterCard, UnionPay, and Visa credit card transactions, which were introduced

When Apple launched Apple Pay in the U.S. in the fourth quarter of last year it needed bilateral agreements with every card issuer or its account processor. More recently, it had to do the same in the

U.K. Apple charges card issuers fees for every Apple Pay transaction.Jim McCarthy is Global Head, Consumer Products at

Visa Inc. in San Francisco, California, (650) 502-4300,

[email protected], www.visa.com.

More than 17 mil. consumers visit its website every month.

Coupons.com Links Merchants to Cardholders from page 1...

> see p. 8

PeerTransfer Cross-Border Payments from page 1...


http://www.coupons.com

http://www.visa.com

last year. Cards accounted for 10% of payments on the peerTransfer platform in 2014. That figure is expected to more than double this year when peerTransfer expects to handle more than $2 billion in total payments. The average credit card payment is in the $4,000 range but transactions regularly exceed $40,000. Most card payments involve payors assuming the card processing costs. All foreign exchange conversion fees are passed on to the payor.

More than 720 colleges and universities in 12 countries use peerTransfer to handle payments from their international students. Another 50 new schools are added every quarter. PeerTransfer is the largest processor of cross-border education-related payments based on the number of school customers. Outside the U.S., competitors include banks and several regional education payment specialists. Growth also comes from the average 5% increase annually in higher education tuition. In the U.S., peerTransfer competes mainly with Western Union.

High-value cross-border payments are typically high-risk transactions in the payment card business. However, tuition payments experience almost no fraud or incidents of money laundering.

The peerTransfer cross-border payment platform could be used in other industries such as real estate, travel, taxes, and medical. Its platform, which was developed with proprietary technology, handles all foreign exchange conversion, anti-money laundering compliance requirements, and exception item processing. PeerTransfer provides 24/7 customer service for payors

Top U.S. Prepaid Card Issuers 2014 Purchase Volume Cards Purchase Trans. Avg. Rank Company (mil.) Chg. (000) Chg. (mil.) Chg. Amt.

1. The Bancorp Bank $30,652.9 25.2% 75,239 41.0% 747.0 28.0% $41 2. MetaBank $19,409.1 13.1% 35,906 16.1% 633.8 19.7% $31 3. Comerica Bank $14,888.4 13.0% 12,436 12.3% 471.4 11.3% $32 4. Green Dot Corp. $14,153.0 5.7% 4,700 4.7% 513.1 5.9% $28 5. JPMorgan Chase $11,890.0 10.1% 10,285 8.3% 267.1 13.7% $45 6. Bank of America $6,414.8 0.5% 13,678 17.6% 211.0 3.9% $30 7. H&R Block $5,795.4 5.7% 2,347 –9.7% 162.6 5.4% $36 8. U.S. Bank $4,419.3 20.5% 18,235 21.0% 160.9 9.7% $27 9. Citibank $3,151.7 2.9% 15,779 –8.2% 136.9 6.2% $23 10. UMB Bank $3,046.6 15.2% 5,423 18.9% 41.9 9.1% $73 11. Wells Fargo $2,674.5 –7.8% 10,352 17.3% 90.0 –12.3% $30 12. BofI Federal Bank $1,448.8 199.6% 2,129 174.1% 58.5 163.4% $25 13. Sunrise Banks $1,345.8 104.1% 29,380 138.8% 41.2 33.0% $33 14. MB Financial $1,320.0 150.0% 1,140 124.0% 61.2 103.0% $22 15. Comdata $944.1 31.3% 3,594 71.0% 37.5 31.0% $25 16. Webster Bank (incl. HSA Bank) $737.3 18.4% 1,027 40.7% 7.0 18.1% $105 17. Metropolitan Comm’l Bank $704.0 1000.0% 4,920 5900.0% 15.0 900.0% $47 18. BB&T $670.7 91.4% 562 –7.4% 12.5 17.2% $54 19. ADP FCU $524.8 –6.3% 396 0.5% 17.5 8.8% $30 20. Regions Bank $512.1 41.9% 197 27.3% 14.2 42.1% $36 21. Central Trust Bank (Mo.) $357.3 –18.6% 320 –14.7% 15.2 –16.1% $24 22. SunTrust Bank $353.1 7.0% 914 12.6% 15.7 11.3% $23 23. Fifth Third $267.6 32.0% 1,489 48.0% 5.5 62.3% $49 24. PNC Bank $262.2 89.5% 78 70.3% 8.9 89.8% $29 25. TD Bank $184.2 16.0% 2,663 16.8% 6.5 15.8% $28 26. USAA $119.9 –13.9% 201 –6.5% 7.3 –15.2% $16 27. Navy FCU $89.0 19.1% 610 8.1% 3.9 19.1% $23 28. Commerce Bank (Mo.) $68.9 41.1% 96 28.0% 2.6 42.7% $27 29. Arvest Bank $47.1 52.2% 76 1.0% 1.5 38.0% $31 30. Patelco CU $34.9 –5.1% 46 –9.5% 0.3 –7.6% $109 31. KeyBank $29.0 –85.0% 646 –19.7% 0.9 –73.1% $33 32. TIB-The Indep. BankersBank $27.3 10.8% 219 146.1% 0.5 –4.2% $51 33. Kinecta FCU $25.9 –7.9% 62 42.4% 0.6 –9.9% $43 34. BBVA Compass $23.7 5.0% 22 19.9% 0.7 5.6% $32 35. Synovus Financial $20.5 35.0% 14 57.3% 0.7 36.4% $28 36. State Employees’ CU (N.C.) $19.0 5.8% 184 –10.5% 0.8 3.2% $23 37. BMO Harris $16.4 –4.1% 185 11.9% 0.5 9.6% $31 38. Zions Bancorporation $12.8 –10.3% 16 0.9% 0.2 –26.3% $64 39. Int’l Bank of Commerce $9.2 –7.2% 13 –9.3% 0.2 –4.6% $39 40. Intrust Bank $7.0 5.4% 38 9.0% 0.3 12.1% $21 41. First Citizens Bank $6.5 –8.5% 52 –10.4% 0.3 –3.8% $25 42. State Farm Bank $5.3 –10.1% 1,888 26.9% 0.5 –1.7% $10 43. Members 1st FCU $4.6 41.5% 92 112.1% 0.1 22.5% $37 44. First Horizon $4.3 –56.1% 11 –62.8% 0.1 –43.6% $33 45. VyStar CU $3.5 5.6% 111 –26.7% 0.2 8.6% $22 46. Umpqua Bank $3.3 1109.9% 1 164.6% <0.1 1078.5% $33 47. Old National Bank $3.1 –8.8% 120 –7.7% <0.1 –8.9% $38 48. AA CU $2.3 new <1 new <0.1 new $90 49. Randolph Brooks FCU $2.0 11.1% 50 57.5% <0.1 7.0% $29 50. BancorpSouth $1.8 18.1% 4 2.9% <0.1 18.8% $64Includes Visa, MasterCard, and Discover prepaid cards. Some prior year figures have been restated. Use percent change to calculate 2013 figures. © 2015 The Nilson Report

PeerTransfer Cross-Border Payments from page 7...



the previous year. That spending was generated by 3.77 billion purchase transactions, up 15.9% from 2013. The average purchase transaction amount was $33.57. Purchase volume shown in the table here excludes cash withdrawn from ATMs or obtained over the counter at financial institutions.

There were 257.9 million Discover, MasterCard, and Visa brand prepaid cards in circulation from these 50 issuers at year-end 2014. This was up 31.8% from year-end 2013. These cards were reloadable or one-time-only type issued with a specific monetary value when they were purchased. One-time-only prepaid cards are steadily falling as a percentage of total general purpose prepaid cards in circulation.

Prepaid cards with MasterCard, Visa, and Discover brands include those obtained by consumers to be used for household expenses, for healthcare costs, for insurance claims, and for travel/transportation/transit. They are also issued for payroll, for tax and other refunds, for state and federal government benefits, and as rebates/rewards. They can also be issued to teens, given as gifts, or provided as corporate incentives.

For the third year in a row The Bancorp Bank was the largest prepaid card issuer. Its market share of purchase volume among the 50 largest increased to 24.19% from 22.37% in 2013. The Bancorp Bank’s market share of cards in circulation was 29.17%, up from 27.26%.

MetaBank continued as the second largest issuer. However, its market share of the top 50 issuers’ purchase volume decreased slightly to 15.32% from 15.68% in 2013. MetaBank’s market share of cards in circulation was 13.92%, down from 15.81%.

and payees. It can link to any bank or processor in the world.

The company, which is cash flow positive, has received $43.5 million in venture funding since 2011. Investors include Spark Capital, Devonshire Capital, Bain Capital, Maveron, and QED Investors. PeerTransfer is headquartered in Boston and has offices in Shanghai, London, and Valencia. Mike Massaro is CEO at peerTransfer in Boston,

Massachusetts, (617) 329-4524, mike@peertransfer.

com, www.peertransfer.com.

‘14 Outstand. Chg. Issuer, State of Charter Rank (mil.) vs. ‘13

University FCU Texas 101 $116.1 3% Whitney Bank Louisiana 102 $115.4 15% Affi nity Plus FCU Minnesota 103 $114.6 2% Citadel FCU Pennsylvania 104 $114.4 11% SECU Maryland 105 $114.4 –1% Redwood CU California 106 $114.1 9% OnPoint Community CU Oregon 107 $113.4 11% BancorpSouth Mississippi 108 $113.0 –62% Partners FCU California 109 $112.8 1% Grow Financial FCU Florida 110 $112.5 3% Travis CU California 111 $112.4 8% Bellco CU Colorado 112 $110.0 4% Anheuser Busch CU Missouri 113 $109.3 11% Chartway FCU Virginia 114 $108.9 11% Royal CU Wisconsin 115 $108.4 5% Citizens Equity FCU Illinois 116 $108.0 4% School Employees CU Washington 117 $105.0 14% Hudson Valley FCU New York 118 $104.9 1% Langley FCU Virginia 119 $103.9 30% Nassau Educators FCU New York 120 $102.6 3% First Arkansas B&T Arkansas 121 $101.4 –5% Service CU New Hampshire 122 $101.2 3% Hapo Community CU Washington 123 $99.3 23% Empower FCU New York 124 $98.8 6% Summit CU Wisconsin 125 $98.6 11% Wash. State Employ. CU Washington 126 $97.6 –3% Sharonview FCU South Carolina 127 $94.7 8% Space Coast CU Florida 128 $94.5 8% Kinecta FCU California 129 $93.5 –2% Educators CU Wisconsin 130 $90.9 11% Bank-Fund Staff FCU Wash., D.C. 131 $90.0 5% Robins FCU Georgia 132 $89.7 6% Founders FCU South Carolina 133 $89.0 6% Keesler FCU Mississippi 134 $87.7 6% Apple FCU Virginia 135 $87.4 6% Andrews FCU Maryland 136 $86.3 3% Community First CU Florida 137 $85.9 4% CommunityAmerica CU Kansas 138 $85.7 5% Georgia’s Own CU Georgia 139 $85.3 –1% Northwest FCU Virginia 140 $84.8 –6% Cap Com FCU New York 141 $84.7 1% Western Federal CU California 142 $84.3 1% Coastal FCU North Carolina 143 $83.7 3% SAFE CU California 144 $83.3 1% Idaho Central CU Idaho 145 $82.5 16% FirstBank Colorado 146 $81.1 –1% Commonwealth CU Kentucky 147 $80.4 16% TruMark Financial CU Pennsylvania 148 $78.3 19% South Carolina FCU South Carolina 149 $77.9 –9% Nusenda CU New Mexico 150 $77.7 18%

U.S. Visa/MasterCard Credit Card Issuers — Third 50 2014

Includes consumer and commercial cards. © 2015 The Nilson Report

Top 50 U.S. Prepaid Card Issuers from page 1...

> see p. 12


http://www.peertransfer.com

PIN pads that are not also card readers, ECRs, PC-based systems, and unattended kiosks are not included in the 30.2 million figure.

The largest region for POS terminals was Asia–Pacific with 15.8 million terminals received in 2014, up 43.4%. This was an increase of 4.8 million units. Its market share of total global shipments reached 52.52%, up from 48.37%.

Europe received 5.0 million units in 2014, up 9.5%. This was an increase of 431,043 units. The region’s market share was 16.49%, down from 19.89% in 2013. Latin America received 4.1 million units, up 28.8%. This was an increase of 926,561 units. Its market share declined to 13.75% from 14.10%. The Middle East/Africa received 2.6 million units, up 36.1%. This was an increase of 701,600 units. Its market share of 8.77% was up from 8.51%. It overtook the U.S. in the number of units shipped. The U.S. received 2.2 million units, an increase of 22.7%. This was an increase of 416,129 units. Its market share of 7.45% dropped from 8.02%. Canada received 306,227 units, up 19.7%. This was an increase of 50,360 units. Its market share was 1.02%, down from 1.12%.

The largest manufacturer of POS terminals was France-based Ingenico. Its global market share of 30.23% was up from 29.38%. The company had the highest share of shipments to Asia–Pacific, Europe, Latin America, and Canada. It was second largest in the United States and fifth largest in Middle East/Africa. It had the largest increase in number of units shipped with 2,406,000.

The second largest manufacturer was Verifone. Its market share of 18.25% was down from 20.67% in 2013. Verifone was the largest vendor to the U.S., and was second largest in Canada, Latin America, Europe, and Middle East/Africa. It shipped 780,801 more units in 2014 than in 2013.

PAX was the third largest manufacturer worldwide with a market share of 10.03%, up from 9.01%. It was the third largest vendor to the Asia–Pacific, Latin America, and Middle East/Africa regions and had an increase in units shipped of 966,268.

Fujian Newland was the fourth largest (up from fifth the prior year) with a market share of 7.71%, up from 4.22%. It was the second largest vendor to the Asia–Pacific region. It also had the second largest increase in number of units shipped at 1,362,150. SZZT Electronics was the fifth largest manufacturer worldwide with a market share of 5.71%, down from

7.36% in 2013. Other manufacturers that had large increases in shipments versus 2013 included New POS Technology (up 519,880 units), Hangzhou Sunyard (up 469,285 units), and Shenzhen Xinguodo (up 297,077 units).

1 1 Ingenico France (1) 9,120,000 36% 2 2 Verifone U.S.(2) 5,504,510 17% 3 3 PAX China 3,024,576 47% 4 5 Fujian Newland China 2,325,800 141% 5 4 SZZT Electronics China 1,721,350 2% 6 8 Shenzhen Xinguodu China 1,074,518 38% 7 10 New POS Technology China 979,889 113% 8 7 Bitel South Korea 877,828 4% 9 6 Cybernet South Korea 814,900 –6% 10 9 Castles Technology Taiwan 743,800 8% 11 17 Hangzhou Sunyard China 664,285 241% 12 13 Spire Payments U.K., Spain 418,000 39% 13 14 Spectra Tech. Hong Kong 389,400 32% 14 12 Yarus Russia 381,500 21% 15 11 Shenzhen Justtide China 358,000 7% 16 16 Vanstone Electronic China 238,537 7% 17 15 Equinox Payments U.S. 186,554 –25% 18 23 Kwangwoo I&C South Korea 144,000 71% 19 22 Panasonic Japan 120,000 41% 20 18 Worldline Belgium 115,450 –10% 21 24 SK M&Service Co. South Korea 103,000 41% 22 19 First Data U.S. (2) 101,900 –2% 23 20 Hanchang System South Korea 95,200 –8% 24 21 InfoCrypt South Korea 91,300 –3% 25 25 Shenzhen Kaifa Tech. China 84,100 17% 26 26 M.POS Hong Kong 73,150 4% 27 28 USA Technologies U.S. 57,251 29% 28 27 UIC Taiwan 52,423 –4% 29 29 Linkwell Telesystems India 50,206 27% 30 32 Bluebird South Korea 45,467 101% 31 33 Toshiba Tec Japan 38,000 102% 32 30 LinkFlex South Korea 35,450 9% 33 31 CCV Germany 28,000 4% 34 34 REA Card Germany 17,301 7% 35 35 Glintt Portugal 12,664 4% 36 36 Payter Netherlands 2,963 85% Others 78,250 3% TOTAL 30,169,522 32%Some prior year fi gures have been restated, use percent change to calculate 2013 numbers. (1) Includes Fujian Landi. (2) Estimate.


‘14 ‘13 Mfg./Headquarters Units Chg.

POS Terminal Shipments 2014POS Terminal Shipments Worldwide from page 1...



Asia–Pacifi c 15,845,777 ‘14 ‘13 Manufacturer Units Chg.

1 1 Ingenico (1) 4,000,000 64% 2 5 Fujian Newland 2,200,000 135% 3 2 PAX 2,079,245 20% 4 3 SZZT Electronics 1,568,000 –4% 5 4 Verifone (2) 1,234,910 32% 6 6 Shenzhen Xinguodu 1,047,215 35% 7 7 New POS Tech. 947,027 119% 8 12 Hangzhou Sunyard 608,785 241% 9 8 Cybernet 376,200 –10% 10 9 Vanstone Electronic 238,537 7% 11 10 Shenzhen Justtide 219,000 0% 12 11 Spectra Tech. 192,000 12% 13 13 Bitel 158,753 4% 14 14 Castles Tech. 145,000 12% 15 18 Kwangwoo I&C 144,000 71% 16 17 Panasonic 120,000 41% 17 19 SK M&Service 103,000 41% 18 15 Hanchang System 94,700 –8% 19 16 InfoCrypt 91,300 –3% 20 20 Yarus 51,000 9% 21 22 Linkwell Telesystems 44,913 29% 22 21 Shenzhen Kaifa 43,100 17% 23 23 M.POS 41,120 31% 24 24 Toshiba Tec 38,000 102% 25 26 Worldline 8,777 166% 26 25 Bluebird 6,135 –43% 27 27 LinkFlex 2,000 –33% 28 28 UIC 60 88%

Europe 4,974,747 ‘14 ‘13 Manufacturer Units Chg.

1 1 Ingenico 2,600,000 13% 2 2 Verifone (2) 1,316,900 –2% 3 3 Spire Payments 342,000 20% 4 6 Yarus 117,000 24% 5 4 Worldline 106,394 –11% 6 5 Cybernet 100,300 –15% 7 7 PAX 95,010 17% 8 15 Fujian Newland 90,000 800% 9 8 Castles Tech. 37,000 –5% 10 9 CCV 28,000 4% 11 10 Bitel 20,220 9% 12 12 Spectra Tech. 19,000 46% 13 11 REA Card 17,301 7% 14 14 New POS Tech. 12,613 12% 15 13 Glintt 12,314 3% 16 16 Shenzhen Justtide 12,000 20% 17 17 Bluebird 8,872 32%

18 20 Hangzhou Sunyard 8,000 129% 19 18 M.POS 5,180 –16% 20 22 SZZT Electronics 4,600 207% 21 19 LinkFlex 4,200 –16% 22 21 Payter 2,963 85% 23 23 Shenzhen Kaifa 1,000 100% 24 24 UIC 279 1893% 25 25 Linkwell Telesystems 1 0%

Latin America 4,148,507 ‘14 ‘13 Manufacturer Units Chg.

1 1 Ingenico 1,500,000 15% 2 2 Verifone (2) 1,340,000 18% 3 9 PAX 388,104 1245% 4 3 Castles Tech. 238,000 8% 5 4 Cybernet 170,100 5% 6 5 Yarus 165,000 27% 7 6 Spectra Tech. 138,000 59% 8 7 Bitel 63,854 –4% 9 12 SZZT Electronics 58,000 644% 10 8 Shenzhen Justtide 45,000 50% 11 10 Hangzhou Sunyard 10,000 3% 12 11 M.POS 9,500 5% 13 13 New POS Tech. 6,723 0% 14 17 Fujian Newland 5,000 150% 15 16 Bluebird 3,141 9% 16 15 LinkFlex 2,500 –29% 17 — Spire Payments 2,000 new 18 18 Shenzhen Kaifa 1,000 100% 19 — Shenzhen Xinguodo 300 new 20 14 Worldline 34 –99% 21 20 Linkwell Telesystems 1 –99%

Middle East/Africa 2,646,561 ‘14 ‘13 Manufacturer Units Chg.

1 1 Bitel 634,581 4% 2 3 Verifone (2) 428,000 90% 3 5 PAX 391,538 127% 4 2 Castles Tech. 295,000 7% 5 4 Ingenico 210,000 0% 6 6 Cybernet 168,300 2% 7 7 Shenzhen Justtide 82,000 9% 8 9 SZZT Electronics 76,000 153% 9 15 Spire Payments 74,000 393% 10 10 Spectra Tech. 40,000 67% 11 8 Shenzhen Kaifa 37,500 11% 12 16 Hangzhou Sunyard 35,000 192% 13 12 Yarus 31,000 35% 14 14 Fujian Newland 30,000 100% 15 19 Bluebird 25,691 3185%

16 13 LinkFlex 24,500 32% 17 21 Shenzhen Xinguodu 22,560 4947% 18 11 M.POS 17,350 –25% 19 17 New POS Tech. 12,843 32% 20 18 Linkwell Telesystems 5,271 9% 21 20 Hanchang System 500 –18% 22 22 Glintt 350 25% 23 23 Worldline 241 0% 24 — UIC 36 new

United States 2,247,703 ‘14 ‘13 Manufacturer Units Chg.

1 1 Verifone (2) 1,109,700 15% 2 2 Ingenico 600,000 89% 3 3 Equinox Pymts. 186,554 –25% 4 4 First Data (2) 101,900 –2% 5 7 PAX 65,847 86% 6 6 USA Tech. 56,808 31% 7 5 UIC 52,048 –3% 8 8 Castles Tech. 26,000 30% 9 9 Yarus 15,000 –12% 10 10 SZZT Electronics 8,000 300% 11 13 Shenzhen Xinguodo 4,443 184% 12 11 LinkFlex 2,250 13% 13 12 Hangzhou Sunyard 2,000 11% 14 14 Bluebird 1,238 13% 15 16 New POS Tech. 671 77% 16 15 Bitel 420 4% 17 18 Fujian Newland 300 100% 18 19 Linkwell Telesystems 20 –38% 19 — Worldline 4 new

Canada 306,227 ‘14 ‘13 Manufacturer Units Chg.

1 1 Ingenico 210,000 50% 2 2 Verifone (2) 75,000 –25% 3 8 SZZT Electronics 6,750 1025% 4 3 PAX 4,832 –14% 5 5 Castles Tech. 2,800 87% 6 4 Yarus 2,500 –38% 7 — Shenzhen Kaifa 1,500 new 8 6 Hangzhou Sunyard 500 –50% 9 9 Fujian Newland 500 0% 10 7 USA Tech. 443 –50% 11 12 Spectra Tech. 400 142% 12 11 Bluebird 390 12% 13 — New POS Tech. 12 new

Shipments from vendors not shown are included in regional totals. (1) Includes Fujian Landi. (2) Estimate.

©2015 The Nilson Report

POS Terminal Shipments by Region 2014


Comerica Bank moved up to third largest. However, its market share of the top 50 issuers’ purchase volume also declined slightly to 11.75% from 12.03%. Among the top 25, Metropolitan Commercial Bank (N.Y.) had the largest increase in purchase

volume (up 1000%), followed by BofI Federal Bank (up 199.6%), MB Financial (up 150.0%), Sunrise Banks (up 104.1%), BB&T (up 91.4%), and PNC Bank (up 89.5%).

the first quarter of 2016. The acquisition has been approved by the boards of directors of

both companies as well as by the private equity investors that hold approximately 18% of Xoom’s outstanding shares. PayPal will pay a premium of 32% over Xoom’s three-month volume-weighted average stock price.

Xoom’s 1.3 million active customers sent approximately $7.00 billion over the company’s proprietary network in the 12

months ended March 31, 2015. That figure includes remittances, bill payments, and mobile telecom account reloads. Remittances are sent from the U.S. to recipients in 38 countries where Xoom has established links to financial institutions and retailers (in select countries). Recipients have the option of having remittances deposited in their bank accounts or paid over the counter in cash. All funds enter the Xoom platform from either a mobile device (60%) or computer (40%). Xoom charges senders between $5 and $10 per transaction depending on the amount of the transfer.

Xoom will operate as an independent division within PayPal, which will be spun off from eBay this month. Trading of PayPal common stock will begin on Nasdaq on July 20. PayPal expects to retain all of Xoom’s personnel including its CEO.

PayPal will cross-sell Xoom’s services to its 68 million active U.S. customers. It also plans to expand Xoom’s business by offering it to consumers in select

international markets wanting to send remittances.

PayPal is a transaction account. The acquisition of Xoom offers PayPal the opportunity to deepen its business with existing customers and potentially leverage the emotional relationship that exists between the sender and the receiver of a remittance. PayPal sees opportunities with recipients

of Xoom remittances who are underbanked.

PayPal’s Venmo division operates a person-to-person money transfer system within the U.S. That system is 100% mobile. Transactions occur between the sender’s and the recipient’s Venmo accounts. Recipients can choose to move funds into their bank accounts, which causes at least a day’s delay in availability of cash. Jeremy Jonker is VP, Corporate

Development at PayPal in San Jose,

California, (408) 967-6048, jjonker@

paypal.com, www.paypal.com.

... will cross-sell Xoom’s services to 68 mil. active U.S. customers.

moneytransfer

cybersecurity

mobilewallet

mobilewalletmobile

software

mobilecamera scan

telecombillingmobile

payments

transactionalcreditonline

securitypaymentgateway

$890.0

N/A

$280.0

N/A

$800.0

N/A

$240.0

N/A

$945.0

$169.0

$370.0© 2015 The Nilson Report

2015

2013

2012

2011

2008

PayPal Acquisitions (Mil.)

PayPal to Acquire Xoom from page 1...

Top 50 U.S. Prepaid Card Issuers from page 9


© 2015 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.

David Robertson, PublisherJuly 15, 2015

http://www.paypal.com


Documents

Top 50 U.S. Prepaid Card Issuers Shipments of POS ...files.ctctcdn.com/610724ae101/64d24d2c-092e-4865-adc0-f592f73e… · POS Terminal Shipments Worldwide Last year 30.2 million payment