MIDDLE EAST/AFRICA’S LARGEST ACQUIRERS … · MIDDLE EAST/AFRICA’S LARGEST ACQUIRERS The 28...

MIDDLE EAST/AFRICA’S LARGEST ACQUIRERSThe 28 largest merchant card acquirers in the Middle East/Africa region are ranked on page 11 based on the Visa and MasterCard purchase transactions they handled in 2013. Collectively this

U.S. HOUSEHOLD DEBT AND CREDIT CARDSAt the end of 2013 total household debt in the U.S. was $13.146 trillion. Credit cards accounted for 6.42% or $843.46 billion. The ratio of credit card debt to household debt reached its all time

POS TERMINAL SHIPMENTS WORLDWIDEShipments of payment card authorization terminals with integrated chip and/or magnetic-stripe card readers reached 22.3 million worldwide last year, up 11.4% from 2012. They can be connected to PC-based point-of-sale systems or electronic cash registers (ECRs) or used as stand-alone devices. Smartphones, tablets, peripheral PIN pads, ECRs, and PC-based systems or unattended kiosks are not included in the 22.3 million figure.Asia/Pacific was the largest region for POS terminals. It received a total of 10.8 million terminals in 2013, up 26.9%. This was an increase of 2.3 million units. Its market share of

TOP 50 PREPAID CARD ISSUERSThe 50 largest U.S. bank and credit union issuers of general purpose prepaid cards accounted for $118.09 billion in spending at merchants in 2013, up 6.1% from 2012. That purchase volume was

CARD DEBT BUYERS – PART IIIn the fourth quarter of 2013 the Consumer Financial Protection Bureau issued advanced notice of proposed changes to The Fair Debt Collection Practices Act. By March of this year the CFPB

POWA TECHNOLOGIES ADDS MPAYMEU.K.-based Powa Technologies has acquired Hong Kong-based MPayMe for $75 million in stock. Powa operates a digital commerce platform, and MPayMe operates Znap, a mobile

MASTERCARD PREPAID IN JAPANOnly reloadable private label prepaid cards were available in Japan before 2010, when Japanese vacationers and business travelers were first able to buy prepaid cards for use outside the

SWAGBUCKS ONLINE REWARDSRewarding consumers for their online activity, both payment and nonpayment, is the business of Swagbucks, which recently received a $60 million investment from Technology Crossover Ventures.

6 Credit Card Debt in the U.S. 1983–2013, as a % of Household Debt, as a % of Consumer Credit

8 POS Terminal Shipments Worldwide

9 POS Terminal Shipments by Region 10 Top U.S. Prepaid Card Issuers 2013 11 Merchant Acquirers in Middle East/

Africa 2013

2 – 4 Fast Facts 5 Atos to Spin Off Worldline

Business 6 FDIC Hits Bancorp Bank

INSIDE CHARTS

Asia/PacificEurope

Canada

LatinAmerica

MEA

Shipments of POS Terminals by Region

U.S.

+11% +298% +68% +805% +974%–32%

Europe

MEA

Canada

U.S.

LatinAmerica

©2014 The Nilson Report

Asia/Pacific

Ten-Year Change(2013 vs 2003)

Global Market Shares % in 2013

1 8 14 20 9 48

> see p. 8

> see p. 7

> see p. 6

> see p. 10

> see p. 11

> see p. 7

> see p. 5

> see p. 12

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FOR 43 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE JUNE 2014 / ISSUE 1043

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INFINEON TECHNOLOGIES NORTH AMERICA now offers Macchiato, a Java card-based suite of security controllers optimized for EMV-compliant payment card applications in the U.S. More than 40 million smart cards based on Infineon security controllers have shipped to U.S. customers since the 4th quarter of 2013. Joerg Borchert is VP of Chip Card and Security Group, (408) 503-2608, [email protected], www.infineon.com.

ICAP PATENT BROKERAGE is selling Xerox-owned patents related to methods of shopping, ordering, and paying for consumables. The package is available via sealed bid with a bidding deadline of July 29, 2014. Bids for these lots will be accepted 9:00 A.M. Pacific time July 24, 2014 through 5:00 P.M. Pacific time July 29, 2014. Dean Becker is CEO at ICAP Patent Brokerage, [email protected], www.icappatentbrokerage.com, http://icappatentbrokerage.com/xerox-corporate-sealed-bid-auction.

PAYCUBE has added custom mobile payment software development to its suite of payment, loyalty, and promotions processing platforms. PayCube can build cross-platform apps using PhoneGap, Sencha Touch, JQuery mobile, jQT, and other frameworks based on HTML5 user interface systems for mobile payments. Mustafa Shehabi is Co-Founder, (925) 285-6265, [email protected], www.paycubeinc.com.

MALWAREBYTES provides software designed to protect computers against malicious threats that escape detection by other antivirus solutions. Malwarebytes Anti-Malware Pro, the company’s flagship product, employs a behavior-based detection engine that has removed more than 5 billion malicious threats from computers worldwide. Marcin Kleczynski is CEO, (408) 852-4336 x305, mkleczynski@ malwarebytes.org, www.malwarebytes.org.

POS PORTAL, which provides mPOS technologies and support services to software developers, independent sales organizations, processors, and agents, will offer its customers Powa Technologies' PowaPOS mobile and tablet point-of-sale platform. Ken Schember is Director, U.S. Sales at PowaPOS, (602) 684-3785, [email protected], www.powapos.com. Joe Villamil is VP Bus. Dev. at POS Portal, (916) 993-4205, [email protected], www.posportal.com.

AMERICAN EXPRESS cardholders can download the latest ver-sion of the Uber iOS app and enroll their card, which will enable them to earn 2 times Membership Rewards points while paying for a ride or use existing points to pay. Leslie Berland is SVP, Digital Partnerships at American Express, (212) 640-5142, [email protected], www.americanexpress.com.

SEQUENT SOFTWARE has received U.S. patent #8,745,716 for its technology that turns apps into wallets. Robb Duffield is CEO, (408) 910-7640, [email protected], www.sequent.com.

SHAW SYSTEMS' software clients will be offered automated bill payment services from BillingTree. Shaw specializes in loan and lease servicing, collections, and recovery management software. Cyndy Stone is CEO at Shaw Systems, (713) 782-7730, cstone@ shawsystems.com, www.shawsystems.com. Marya Ulis is Auto Finance General Manager at BillingTree, (602) 443-5971, marya@ mybillingtree.com, www.mybillingtree.com.

SYNCHRONY BANK, formerly GE Capital Retail Bank, must refund $56 million to approximately 638,000 consumers who the Consumer Financial Protection Bureau (CFPB) says were subjected to deceptive marketing practices. Synchrony must also provide an additional $169 million to about 108,000 borrow-ers who the CFPB says were excluded from debt relief offers because of their nation of origin. This represents the federal government's largest credit card discrimination settlement.

SPINDLE'S merchant aggregation and payment infrastructure will be integrated into Moolah's e-commerce and mobile offerings. Mark Raumussen is Managing Partner at Moolah, (949) 354-5605, [email protected], www.mymoolah.com. Bill Clark is CEO at Spindle, (480) 336-2653, [email protected], www.spindle.com.

TRUBEACON, which offers data analytics, mobile payments, mobile point of sale, in-store geolocation/iBeacon integration, and mobile rewards for healthcare, data, payments, rewards, and community channels, has received $1 million in Series A funding from private equity firm National Innovation Fund. Philip Philliou is CEO at TruBeacon, (201) 969-2900, [email protected], www.trubeacon.com.

PAYLESS CARD SOLUTIONS offers general purpose reloadable prepaid cards via direct Web enrollment as well as a proprietary reload network. David Sebestyen is VP, Payment Solutions, (214) 390-7299, [email protected], www.paylesscardsolutions.com.

GLOBAL PAYMENTS, a top global provider of payment card processing services, now offers its merchant customers in the U.S. access to Bigcommerce, an e-commerce platform provider that helps brick and mortar retailers expand into online sales. Bigcommerce delivers design support, mobile, search engine optimization, consult-ing, and more. Melanie Kalemba is VP, Strategic Bus. Devel. at Bigcommerce, (512) 865-4606, [email protected], www.bigcommerce.com. Jay Rising is President, Americas at Global Payments, (770) 829-8292, [email protected], www.globalpaymentsinc.com.

VALID USA has ordered a Cardline Versa Color System from Atlantic Zeiser to support its private label prepaid card production capability. The system will enable Valid to start from blank plastic and produce four-color, fully personalized cards in short or long runs. Friedbert Bayer is Director of Market and Product Mgmt. for Card Systems at Atlantic Zeiser, 49 (7465) 291-125, [email protected], www.atlanticzeiser.com. Dean Warner is President at Valid USA, (630) 852-8200, [email protected], www.validusa.com.

SAGE NORTH AMERICA has made updates to its Sage Exchange Payment Management System, which lets small and midsized busi-nesses monitor and manage payments from all of their sales environ-ments: Web, phone, mobile, and storefront. Consolidated activity and information can be accessed and administered online from anywhere, using a single username and password. Businesses can manage all card transactions, mobile payments, and checks in real-time. Christine Scappa is SVP at Sage Payment Solutions, (703) 269-9202, [email protected], http://na.sage.com/us.

FAST FACTS

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ARROWEYE SOLUTIONS will provide its Digital On-Demand technol-ogy for debit cards to Caledonian Financial Services. In addition to not needing to maintain inventory, a benefit of Digital On-Demand includes flexibility in creating card designs. Render Dahiya is CEO at Arroweye, (312) 253-9400, [email protected], www.arroweyesolutions.com. Elljanna Dixon is Client Services Mgr. at Caledonian, (345) 949-0050, [email protected], www.caledonian.com.

CHARGEBACK GURUS is an e-commerce revenue recovery service that aims to help businesses successfully dispute payment card chargebacks. The company says that it has a recovery rate of 83%. Srii Srinivasan is CEO, (214) 785-9140, [email protected], www.chargebackgurus.com.

HEARTLAND PAYMENT SYSTEMS now offers its 275,000 mostly small and midsized merchant locations VersaPay’s ARC e-lnvoicing system as a replacement for paper invoices. Kris Herrin is Chief of Emerging Products at Heartland Payment Systems, (972) 295-8749, [email protected], www.heartlandpaymentsystems.com. Todd Whiton is President at VersaPay Payment Technology Solutions, (631) 577-7947, [email protected], www.versapay.com.

Troy Woods has been appointed CEO and President at TSYS, replac-ing Phil Tomlinson, who will retire as of July 31, 2014, (706) 649-2104, [email protected]. Damian Young has been appointed Director of Banking at Nomis Solutions, 44 (207) 849-3488, [email protected]. Mike Healey has been appointed Issuer Sales Director, EMEA at Ethoca, 44 (741) 599-3692, [email protected]. Maria Earley has been appointed Counsel at the Banking and Financial Services practice at Sidley Austin LLP, (202) 736-8796, [email protected]. Joshua Rosenblatt has joined the Electronics Payments Industry Team at Frost Brown Todd, (615) 251-5590, [email protected]. Kevin Deveau has been appointed Head, Canadian Operations at FICO, (647) 435-6700, [email protected].

MANAGEMENT CHANGES

ALIPAY, China's top online payment service provider, will collaborate with Global Blue to enable Chinese tourists to be reimbursed directly into their Alipay accounts for the value added tax (VAT) paid on goods and services purchased from Global Blue's 5,000 retail customers in France, Germany, Italy, South Korea, and the U.K. Jingming Li is Vice President at Alipay, (408) 748-1200, [email protected], www.alipay.com. David Baxby is CEO at Global Blue, 41 (22) 363-7740, [email protected], www.globalblue.com.

RAPHAELS BANK will issue the RAC Member Benefits prepaid Visa card to customers who buy a new 12-month RAC UK Breakdown policy or RAC car, home, or motorbike insurance product. The RAC Members Benefits card is preloaded with £20, £50, or £100 depending on how many products are purchased from the emergency roadside services company. Andy Downes is General Manager, Card Services at Raphaels Bank, 44 (743) 597-4005, [email protected], www.raphaelsbank.com.

MONERIS SOLUTIONS, Canada's largest payment card processor, now offers PAYD PRO, the only smartphone-based mobile point-of-sale (mPOS) service in Canada to accept both Interac debit as well as credit card payments. PAYD PRO is also the first mPOS product in the country to include EMV Chip & PIN and contactless payment technology. Rob Cameron is Chief Product and Marketing Officer at Moneris, (416) 734-8954, [email protected], www.moneris.com.

ACQUIRER SYSTEMS' Astrex EMV Test and Validation software suite is now used in South Africa by ABSA, FNB, Capitec, Nedbank, Standard Bank, Bankserv, Net1, and Diners Club. Fergal Molloy is CEO at Acquirer Systems, 353 (1) 604-1980, [email protected], www.acquirer.com.

GLOBALCOLLECT, a top payment service provider, has integrated QIWI into its portfolio of payment products, giving its merchants access to 70+ million consumers in Russia and the CIS. QIWI operates a proprietary network that supports consumer payments in physical, online, and mobile channels. David Jimenez is Chief Revenue Officer at GlobalCollect, (415) 975-0969, [email protected], www.globalcollect.com. Alexey Kolychev is Mng. Director at QIWI, 7 (495) 783-5959, [email protected], http://qiwi.com.

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

Also lists 265 Merchant Acquirers from 65 countries in all world regions

New for 2014

90 pagesFigures include cards in circulation and spending for more than

920 credit & debit card issuersfrom 116 countries in all world regions

Order Todaywww.nilsonreport.com/specialreport

FAST FACTS

© HSN Consultants, Inc. 2014 THE NILSON REPORT 3JUNE 2014 / ISSUE 1043 / THE NILSON REPORT

OBLONG CARDS, which focuses on providing prepaid card program management services to clubs, unions, and other community member-ship organizations, will use Contis Group to manage its portfolio of open, restricted, and closed-loop prepaid card accounts. Ian Hossack is Managing Director at Oblong Cards, 44 (845) 303-2896, [email protected], www.oblongcard.com. Mike Fromant is Managing Director at Contis Group, 44 (175) 669-3245, mike.fromant@ contisgroup.com, www.contisgroup.com.

LADBROKES, a top U.K.-based online provider of betting and gaming, has deployed SafeCharge International's suite of payment technolo-gies including processing, deposits, and risk management. David Avgi is CEO at SafeCharge, 44 (203) 051-3031, [email protected], www.safecharge.com.

PIVOTAL PAYMENTS will offer its merchant customers in Canada the ability to accept all cards on the Discover Global Network including Discover, Diners Club, Pulse, BC Global, UnionPay, and RuPay. Ross Haider is SVP, Canadian Sales at Pivotal Payments, (514) 313-1190, [email protected], www.pivotalpayments.com. Gerry Wagner is VP, Global Acceptance at Discover, (224) 405-2955, [email protected], www.discover.com.

EUROPE MERCHANT ACQUIRERS CORRECTION. In Issue #1,042 on page 9 in the pie chart Top 10 Acquirers in Europe, the note for Elavon should not have included the reference to a partnership with Santander in the U.K.

REDEBAN MULTICOLOR (RBM), the largest acquirer in Colombia, will open all 200,000 of its merchants to JCB card acceptance in early 2015. Naotaka Yazawa is President Director at JCB International do Brasil, 55 (11) 3385-1333, [email protected], www.jcbcorporate.com. Maria Antonieta Jaramillo is Innovation Manager at RBM, (571) 307-7110, [email protected], www.rbm.com.co.

BKM, which plans to conduct a pilot test on HCE and tokenization later this year, has upgraded its EMVCo membership to Business Associates level. Borga Akvardar is SVP at BKM, 90 (212) 350-7888, [email protected], www.bkm.com.tr.

PCMS, a provider of software and services to top-tier retailers in the U.S. and the U.K. including Marks & Spencer, John Lewis, Waitrose, and Walgreens, will offer its customers Seamless' open platform QR code-based SEQR mobile payment technology. Peter Fredell is CEO at Seamless, 46 (8) 5648-7800, [email protected], www.seamless.se, www.seqr.com. Richard Goodall is Group Sales and Marketing Director at PCMS, 44 (247) 669-4455, richard.goodall@ pcmsgroup.com, www.pcmsgroup.com.

TOTAL SYSTEM SERVICES DE MEXICO (TSYS) will use Multos chip card technology in the EMV cards it sells to issuers. Multos supports both static and dynamic data authentication as well as dual interface cards. Jesús Navarro Torres is CEO at TSYS de Mexico, 52 (722) 279-1581, [email protected], www.tsys.com.mx. Richard Cusson is Managing Director at Multos International, (514) 631-4901, [email protected], www.multosinternational.com.

UKASH TRAVEL MONEY Prepaid MasterCard offers U.K. card-holders free ATM withdrawals in Europe and the U.S. There are no transaction fees on the card, which is available in euros and U.S. dollars. Marion King is President U.K. & Ireland at MasterCard, 44 (207) 557-5000, [email protected], www.mastercard.com. David Hunter is CEO at Ukash, 44 (207) 939-0310, [email protected], www.ukash.com.

VANTIV, the 3rd largest U.S. acquirer measured by the number of general purpose transactions acquired, now offers its merchants VIABLE, an EMV testing and validation service in partnership with ICC Solutions. Patty Walters is SVP of EMV Strategy at Vantiv, (513) 900-5304, [email protected], www.vantiv.com. Dave Maisey is CEO at ICC Solutions, 44 (1925) 629-001, [email protected], www.iccsolutions.com.

JUSP has received EMV level 1 and 2, PCI PTS 3.1 SRED security certifi-cations for its chip-and-PIN mPOS device. The company builds its own chip-and-PIN hardware and software. Stefano Calderano is CEO, 39 (335) 720-0341, [email protected], www.jusp.com.

PREPAY SOLUTIONS (PPS), jointly owned by Edenred and Master-Card, will use technology from Proxama to provide Host Card Emula-tion contactless mobile payments to its prepaid card customers. Neil Garner is CEO at Proxama, 44 (1603) 760-060, [email protected], www.proxama.com. Ray Brash is CEO at PPS, 44 (203) 328-3461, [email protected], www.prepaysolutions.com.

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CONFERENCES & SEMINARSLOYALTY CANADA 2014: July 23-24, 2014. Toronto, Canada. Attendance: capped at 90. Cost for the two-day conference is $2,795. Subscribers to The Nilson Report will receive a $200 discount. Contact Robin Yegelwel at Marcus Evans, (312) 894-6306, [email protected]. Register at http://bit.ly/1pg1aCW.

4TH HEALTHCARE PAYMENTS INNOVATIONS 2014 (HCPI): July 28-29, 2014 in Omni Parker House, Boston, Massachusetts. Estimated attendance: 150. Cost for the three-day conference ranges from $995 to $1,395. Subscribers to The Nilson Report will receive a $300 discount. (Use code: NILSON300.) Contact Kathleen Daffner at SSN, (203) 209-0520, [email protected]. Register at www.hcpaymentsinnovations.com.

CARDS & PAYMENTS LATIN AMERICA 2014: August 7-8, 2014. The Eden Roc Miami Beach, Miami, Florida. Estimated attendance: 150. Cost range for the two-day conference is $1,600 to $2,290 depending on early bird dates. Subscribers to The Nilson Report will receive a 20% discount. (Use code NRPT2014.) Contact Cristian Alicke at Next Business Media, 55 (11) 3173-4413, [email protected]. Register at www.cardspayments.com.

FAST FACTS



country. Reloadable general purpose prepaid cards for use inside Japan did not reach the market until last year, when the Visa branded V-Preca product

became available for online purchases.

Now KDDI, Japan’s second largest mobile network operator (MNO), has started to offer its 34 million customers the first MasterCard branded general purpose prepaid card products in the country

— auWallet and WebMoney. In the first month, more than 1.2 million

applications have been received for auWallet, which rewards points for each purchase. Those points can be used to pay mobile phone charges or for other purchases made with the card. Cardholders can reload funds to their prepaid account over the counter at Au shops or online.

WebMoney takes an existing private label product consumers could only use to purchase digital content, and adds a plastic card that can be accepted for payment at all

MasterCard locations worldwide. The card also offers rewards for spending.

WebMoney and auWallet are the first international brand prepaid cards in Japan promoted for both online and in-store purchases. WebMoney and auWallet MasterCard cards are no annual fee products. There are no monthly transaction fees.

KDDI bought WebMoney in 2011 and operates it as a wholly owned subsidiary. WebMoney issues both cards for KDDI under a sublicense agreement from Credit Saison, Japan’s second largest credit card issuer based on purchase volume.

Card issuers in Japan see prepaid as a new growth opportunity. Bank regulations prohibit debit cards attached to deposit accounts. And changes to banking regulations in 2012 left credit cards difficult to issue to young people as well as to spouses who do not have income that can be verified. Robert Luton is Division President, Japan at MasterCard

in Tokyo, 81 (3) 5728-5210, robert_luton@mastercard.

com, www.mastercard.com.

Ron Hynes is Group Executive Global Prepaid Solution

at MasterCard in Purchase, New York, (914) 249-5960,

[email protected], www.mastercard.com.

Information technology services group Atos has filed a

registration statement with the Financial Markets Authority (AMF) in France to spin off 30% of its Worldline subsidiary through an initial public offering (IPO) of common stock. Worldline expects to raise $830.1 million (€610 million) in the IPO, which would value the company from $2.94 billion (€2.16 billion) to $3.59 billion (€2.64 billion)

depending on the initial share price.

Worldline operates in 17 countries in Europe and Asia. Its business units are Merchant Services and Terminals, Financial Processing, and Software/Mobility/e-Transaction Services.

Combined revenues in fiscal year 2013 were $1.51 billion (€1.1 billion). Net income was $163.8 million (€119 million).

Worldline was the ninth largest

merchant acquirer in Europe in 2013 based on general purpose card transactions. Last year it handled 1.20 billion transactions, mostly from Belgium’s Bancontact/Mister Cash domestic debit network. Worldline offers an e-wallet and authentication

service in France for Paylib, a mobile payment service. Michel-Ange

Camhi is Senior Consultant at

Worldline in Paris, France,

33 (3) 2060-7896, michel-ange.

[email protected],

www.worldline.com.

More than 1.2 mil. applications were received in the first month.

...expects to raise $830 mil.(€610 mil.) in the initial public offering.

MASTERCARD PREPAID IN JAPAN from page 1...

ATOS TO SPIN OFF WORLDLINE BUSINESS


http://www.mastercard.com

http://www.mastercard.com

http://www.atosworldline.com

high at 10.05% in 1996. Card debt is comprised of outstanding receivables tied to general purpose and private label credit accounts. Credit card debt is a subset of total consumer credit, which was $2.924 trillion at the end of 2013.

Total consumer credit is reported in the Federal Reserve Statistical Release, Z.1, Financial Accounts of the United States, Flow of Funds, Balance Sheets, and Integrated Macroeconomic Accounts, Table D.3, Credit Market Debt Outstanding by Sector. Card debt

is compiled by The Nilson Report from its surveys of financial institutions and other card-based lenders.

Credit card debt accounted for 27.23% of total consumer credit at the end of 2013. This is the lowest level of card debt to total consumer credit since 1990 when it was 29.42%. The

highest level for card debt was in 1997, when it was 40.95%

Total consumer credit is comprised of installment and noninstallment unsecured personal loans, both closed and open-ended. The Federal Reserve does not count mortgage debt and low-value bank loans as consumer credit. However, total household debt includes consumer credit added to mortgage debt and low-value bank loans.

Mortgage debt (and select other loans) of $10.049 trillion in 2013 declined by $71.90 billion in 2013. Credit card debt increased by $25.41 billion, while total consumer credit grew by $173.80 billion.

Total U.S. household debt of $13.146 trillion in 2013 was up $101.90 billion from $13.044 trillion at year-end 2012. The average debt for each of the 122.5 million U.S. households at year-end 2013 was $107,351. One year before the average household debt was $107,729.

Consumer credit equaled 23.56% of household debt at the end of 2013, up from 22.41% the prior year. Consumer credit per household was $25,293. Not counted by the Federal Reserve as consumer credit are rent payments and automobile leases.

Credit card debt per household was $6,888 at year-end 2013, up from $6,756 in 2012. Prior issues: 1,020, 997, 974, 952, 926, 903

The Bancorp Bank, the largest U.S. prepaid card issuer, entered into a consent decree with the

Federal Deposit Insurance Corporation (FDIC) on June 5, 2014. The order requires Bancorp

to come into full compliance with the Bank Secrecy Act (BSA) Compliance Program. Bancorp entered into the order without denying or admitting violations of the BSA or of any unsafe or unsound banking practices.

Until approval is received from the FDIC, Bancorp can’t sign new independent sales organizations to merchant acquiring sponsorships or sign new programs for

prepaid cards even with existing customers, unless they are for government benefits or are for one-time-only use. It is also prohibited from originating automated clearinghouse transactions to pay newly signed merchants. Bancorp-sponsored ISOs sent more than $6.00 billion in card payments into the Visa and MasterCard networks last year.

Credit card debt per household was $6,888 at year-end 2013.

5.1%

20.0%25.5%

37.0% 41.0% 38.2% 36.8%30.7%

27.2%

5.5%

6.8%

10.1% 9.8%

6.8%

6.2% 6.4%

$12

$9

$6

$3

as a % ofHousehold Debt(Trillion)

‘93‘91‘89‘87‘85‘83 ‘95 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘09 ‘11 ‘13

‘93‘91‘89‘87‘85‘83 ‘95 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘09 ‘11 ‘13

$3

$2

$1

as a % ofConsumer Credit(Trillion)


Credit Card Debtin the U.S. 1983-2013

8.3%

9.0%

U.S. HOUSEHOLD DEBT AND CREDIT CARDS from page 1...

FDIC HITS BANCORP BANK



Consumers can earn Swag Bucks from six activities — purchases from participating

merchants, answering surveys, watching videos, discovering deals, searching the Web, and playing games.

Sellers and other partners offer a fixed amount of Swag Bucks per transaction, usually between 2 and 6, which are immediately credited to a consumer’s account. A Swag Buck is valued at 0.1¢.

Earlier this year, First National of Omaha, the 13th largest bank

credit card issuer in the U.S., began marketing a Swagbucks co-branded Visa card. This month First of Omaha added a Visa secured credit card product to its Swagbucks partnership. Both products are aimed at consumers who want to accelerate the number of Swag Bucks rewards they accumulate.

Swag Bucks are exchanged at the company’s website for private label prepaid cards from 300 merchants.

Since opening for business in 2008, 11 million people have received Swag Bucks, including consumers in Australia, Canada,

and the U.K. Swagbucks has 1.9 million followers on Facebook and 10,000 comments are added to its page on an average day.

Swagbucks had revenue of $53 million last year, up 51% from 2012. More than $65 million in prepaid cards have been awarded to consumers since 2008, and the company’s current rate is $2 million per month.

Chuck Davis is CEO at Swagbucks’

parent company Prodege in El

Segundo, California, (310) 294-9599,

[email protected],

www.prodege.com.

phone-based payment and loyalty/offers system using QR codes or NFC.

Powa Technologies has a division called PowaPOS, which has offices in Singapore and Beijing that

support the manufacture and sale of the company’s EMV-compliant chip and PIN card reader

for use with smartphones and tablets. Current management at MPayMe will take over sales of PowaPOS to value-added resellers and independent sales organizations in Asia, in addition to marketing the PowaTag mobile commerce app to consumers and establishing partnerships with merchants in the region.

Powa’s platform makes offers to consumers from more than 500 participating merchants. Those offers can be presented by QR code, Java Script, audio and visual watermarks, and Bluetooth Low Energy channels. MPayMe brings retail store, loyalty/coupons, and bill payment functionality Powa did not have.

MPayMe provides billers with a Znap QR code they print on invoices. Consumers read the QR code with the Znap app in their smartphones and are presented with payment options. The technology can also be used at the point of sale by retailers, quick-service restaurants, and others. MPayMe technology will be integrated into the Powa platform.

MPayMe, in business since 2010, expects revenue in the $30 million range this year. The company will now operate under the Powa Technologies brand name.

Powa Technologies, which has received $98 million in funding, mostly from Wellington Management, is now valued in the $2.60 billion (£1.6 bil.) range based on the 3% of the company’s shares that were exchanged for 100% of MPayMe.

Dan Wagner is CEO at

Powa Technologies in

London, U.K., 44 (203)

440-6001, dan@powa.

com, www.powa.com.

Alessandro Gadotti, former CEO at MPayMe, is CEO

Direct Asia Pacific at Powa Technologies in Hong Kong,

852 (3) 602-3031, [email protected],

www.powa.com.

Prior issues: 1,037, 1,018, 1,010

...exchanged at the company’s Web-site for private label prepaid cards.

Consumers read the QR code with an app in their smartphones.

SWAGBUCKS ONLINE REWARDS from page 1...

POWA TECHNOLOGIES ADDS MPAYME from page 1...


http://www.prodege.com

http://www.powa.com

http://www.powa.com

total global shipments reached 48.15%, up from 42.25%.

Europe received 4.4 million units in 2013, down 2.2%. This was a decrease of 97,223 units. The region’s market share was 19.76%, down from 22.48% in 2012.

Latin America received 3.0 million units, down 7.8%. This was a decrease of 256,413 units. Its market share declined to 13.59% from 16.41%.

The Middle East/Africa received 2.1 million units, up 23.4%, overtaking the United States for the first time. This was an increase of 403,770 units. Its market share of 9.53% was up from 8.60%.

The U.S. received 1.8 million units, a decline of 2.9%. This was a drop of 54,451 units. Its market share of 8.14% slipped from 9.33%.

Canada received 185,107 units, up 0.2%. This was a drop of 389 units. Its market share was 0.83%, down from 0.92%.

Ingenico remained the largest manufacturer. Its global market share of 30.05% was up from 28.28%. The France-based company had the highest share of shipments to Asia/Pacific, Europe, Latin America, and Canada. It was second largest in the United States and fourth largest in Middle East/Africa.

VeriFone remained the second largest global vendor. Its market share of 18.63% was down from 25.81% in 2012. VeriFone was the largest vendor to the U.S., and was second largest in Canada, Latin America, Europe, and Middle East/Africa.

PAX Technology moved up one position to become the third largest manufacturer worldwide with a market share of 9.21%, up from 6.25%. It was the second largest vendor to the Asia/Pacific region.

SZZT Electronics was the fourth largest manufacturer worldwide with a market share of 7.53%, down from 8.02% in 2012.

Fujian Newland moved up two positions to become the fifth largest with a market share of 4.31%, up from 3.29%. It also had the third largest increase in number of units shipped at 304,010, behind Ingenico’s 1,041,000 unit increase and PAX Technology’s 804,022 unit increase.

Other manufacturers that had large increases in shipments versus 2012 included New POS Technology (up 295,471 units), Shenzhen Justtide (up

266,000 units), and Bitel (up 196,630 units). Prior issues: 1,027, 1,003, 980, 955, 934, 912, 892, 866,

845, 796, 771, 750

‘13 ‘12 Mfg./Headquarters Units Chg.

1 1 Ingenico France (1) 6,714,000 18% 2 2 VeriFone U.S. (2) 4,162,000 –20% 3 4 PAX Technology China 2,058,308 64% 4 3 SZZT Electronics China 1,681,900 5% 5 7 Fujian Newland China 963,650 46% 6 5 CyberNet South Korea 863,000 7% 7 8 Bitel South Korea 846,072 30% 8 6 Shenzhen Xinguodu China 777,441 4% 9 9 Castles Technology Taiwan 686,900 19% 10 16 New POS Technology China 460,009 180% 11 24 Shenzhen Justtide China 335,000 386% 12 15 Yarus Russia 315,000 47% 13 14 Spire Payments U.K., Spain 301,700 36% 14 11 Spectra Tech. Hong Kong 295,495 9% 15 12 Equinox Payments U.S. 250,014 4% 16 10 Vanstone Electronic China 223,672 –23% 17 13 Hangzhou Sunyard China 195,000 –19% 18 18 Worldline Belgium 128,323 –7% 19 19 First Data U.S. (2) 104,000 –5% 20 17 Hanchang System South Korea 103,412 –26% 21 21 InfoCrypt South Korea 94,600 4% 22 22 Kwangwoo I&C South Korea 84,000 –1% 23 23 Panasonic Japan 82,500 18% 24 20 SK M&Service Co. South Korea 77,535 –28% 25 31 Shenzhen Kaifa Tech. China 71,700 219% 26 25 M.POS Hong Kong 70,090 21% 27 35 UIC Taiwan 54,443 704% 28 26 USA Technologies U.S. 44,369 0% 29 27 Linkwell Telesystems India 39,672 19% 30 29 LinkFlex South Korea 32,500 19% 31 30 CCV Germany 27,000 17% 32 28 Bluebird Soft South Korea 22,585 –30% 33 34 Toshiba Tec Japan 18,800 68% 34 32 REA Card Germany 16,112 –10% 35 33 Glintt Portugal 12,234 –8% 36 36 Payter Netherlands 1,600 67% Others (3) 127,180 –16% TOTAL 22,340,896 11%Some prior year figures have been restated, use percent change to calculate 2012 numbers. (1) Includes Fujian Landi. (2) Estimate. (3) Others include Blue Bamboo, ExaDigm, Intelligent Data, ITWell, J-Tec, Linudix, PayTec, RDM, SongWoo Electronics, Symlink, and TechTrex. © 2014 The Nilson Report

POS Terminal Shipments 2013POS TERMINAL SHIPMENTS WORLDWIDE from page 1...



Asia/Pacific 10,757,439 ‘13 ‘12 Manufacturer Units Chg.

1 1 Ingenico (1) 2,440,000 37% 2 3 PAX Technology 1,734,614 79% 3 2 SZZT Electronics 1,640,000 3% 4 6 Fujian Newland 936,000 44% 5 4 Shenzhen Xinguodu 775,430 4% 6 5 VeriFone 645,000 –2% 7 7 CyberNet 418,000 10% 8 13 New POS Tech. 391,976 240% 9 8 Vanstone Electronic 223,672 –23% 10 22 Shenzhen Justtide 220,000 836% 11 12 Spectra Tech. 171,750 47% 12 9 Hangzhou Sunyard 167,000 –24% 13 17 Bitel 153,000 83% 14 11 Castles Tech. 130,000 8% 15 10 Hanchang System 102,800 –26% 16 15 InfoCrypt 94,600 4% 17 16 Kwangwoo I&C 84,000 –1% 18 18 Panasonic 82,500 18% 19 14 SK M&Service 77,535 –28% 20 19 Yarus 47,000 34% 21 24 Shenzhen Kaifa 36,800 171% 22 20 Linkwell Telesystems 34,695 14% 23 21 M.POS 31,510 25% 24 25 Toshiba Tec 18,800 68% 25 23 Bluebird Soft 10,741 –49% 26 26 Worldline 3,304 –24% 27 27 LinkFlex 3,000 7% 28 28 UIC 512 904%

Europe 4,413,914 ‘13 ‘12 Manufacturer Units Chg.

1 1 Ingenico 2,300,000 9% 2 2 VeriFone 1,209,000 –27% 3 3 Spire Payments 286,700 29% 4 5 Worldline 119,740 1% 5 4 CyberNet 118,000 –6% 6 7 Yarus 94,000 57% 7 6 PAX Technology 81,063 23% 8 8 Castles Tech. 39,000 0% 9 9 CCV 27,000 17% 10 15 New POS Tech. 22,620 267% 11 10 Bitel 18,540 –16% 12 11 REA Card 16,112 –10% 13 13 Spectra Tech. 12,980 63% 14 12 Glintt 11,954 –7% 15 20 Fujian Newland 10,000 410% 16 17 Shenzhen Justtide 10,000 104% 17 16 Bluebird Soft 6,740 22%

18 14 M.POS 6,150 –6% 19 18 LinkFlex 5,000 11% 20 19 Hangzhou Sunyard 3,500 17% 21 21 Payter 1,600 67% 22 22 SZZT Electronics 1,500 200% 23 – Shenzhen Kaifa 500 new 24 – UIC 14 new 25 24 Linkwell Telesystems 1 –83%

Latin America 3,036,556 ‘13 ‘12 Manufacturer Units Chg.

1 1 Ingenico 1,307,000 0% 2 2 VeriFone 950,000 –22% 3 3 Castles Tech. 221,400 –10% 4 4 CyberNet 162,000 5% 5 6 Yarus 130,000 44% 6 5 Spectra Tech. 86,600 –31% 7 7 Bitel 66,220 18% 8 8 Shenzhen Justtide 30,000 14% 9 9 PAX Technology 28,858 35% 10 11 New POS Tech. 11,200 –14% 11 12 Hangzhou Sunyard 9,700 43% 12 13 M.POS 9,040 55% 13 14 SZZT Electronics 7,800 56% 14 10 Worldline 5,006 –67% 15 16 LinkFlex 3,500 46% 16 15 Bluebird Soft 2,881 –4% 17 17 Fujian Newland 2,000 27% 18 – Shenzhen Kaifa 500 new 19 – UIC 299 new 20 19 Linkwell Telesystems 102 2450%

Middle East/Africa 2,130,040 ‘13 ‘12 Manufacturer Units Chg.

1 1 Bitel 607,700 25% 2 2 VeriFone 395,000 –17% 3 4 Castles Tech. 275,000 77% 4 5 Ingenico 210,000 43% 5 3 PAX Technology 172,670 4% 6 6 CyberNet 165,000 13% 7 13 Shenzhen Justtide 75,000 424% 8 14 Shenzhen Kaifa 33,900 281% 9 11 SZZT Electronics 30,000 100% 10 7 New POS Tech. 25,646 12% 11 9 Spectra Tech. 23,900 32% 12 8 M.POS 23,210 17% 13 12 Yarus 23,000 53% 14 10 LinkFlex 18,500 16% 15 – Spire Payments 15,000 new 16 16 Fujian Newland 15,000 150%

17 15 Hangzhou Sunyard 12,000 71% 18 17 Linkwell Telesystems 4,842 63% 19 18 Bluebird Soft 782 –36% 20 19 Hanchang System 612 18% 21 21 Shenzhen Xinguodu 447 113% 22 20 Glintt 280 –20% 23 22 Worldline 241 15%

United States 1,817,840 ‘13 ‘12 Manufacturer Units Chg.

1 1 VeriFone 936,000 –17% 2 3 Ingenico 317,000 47% 3 2 Equinox Pymts. 250,014 4% 4 4 First Data 104,000 –5% 5 9 UIC 53,618 697% 6 5 USA Tech. 43,487 0% 7 6 PAX Technology 35,453 25% 8 7 Castles Tech. 20,000 34% 9 8 Yarus 17,000 21% 10 10 New POS Tech. 6,337 23% 11 13 LinkFlex 2,000 33% 12 15 SZZT Electronics 2,000 150% 13 12 Hangzhou Sunyard 1,800 –28% 14 11 Shenzhen Xinguodo 1,564 –49% 15 14 Bluebird Soft 1,093 –11% 16 18 Bitel 612 51% 17 16 M.POS 180 –67% 18 19 Fujian Newland 150 50% 19 17 Spectra Tech. 100 –81% 20 – Linkwell Telesystems 32 new

Canada 185,107 ‘13 ‘12 Manufacturer Units Chg.

1 1 Ingenico 140,000 16% 2 2 VeriFone 27,000 –48% 3 3 PAX Technology 5,650 25% 4 – Yarus 4,000 new 5 4 New POS Tech. 2,230 24% 6 6 Castles Tech. 1,500 50% 7 5 Hangzhou Sunyard 1,000 –33% 8 7 USA Tech. 882 2% 9 9 SZZT Electronics 600 100% 10 – LinkFlex 500 new 11 – Fujian Newland 500 new 12 10 Bluebird Soft 348 116% 13 8 Spectra Tech. 165 –74% 14 11 Worldline 32 –29%

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


POS Terminal Shipments by Region 2013


generated by 3.32 billion purchase transactions, up 5.4% from 2012. The average transaction amount was $35.60.

Purchase volume shown in the table here excludes cash withdrawn from ATMs or obtained over the counter at financial institutions.

At year-end 2013 there were 191.3 million general purpose — Visa, MasterCard, and Discover brand — prepaid cards in circulation from these 50 issuers. This included reloadable as well as one-time-only cards issued with a specific monetary value when they were purchased. This was down 2.4% from year-end 2012.

These prepaid cards included consumer gift, corporate incentive, state and federal government benefits (including child support, unemployment, etc.), payroll, healthcare, insurance claims, travel/transportation/transit, tax and other refunds, teen cards, and rebates/rewards.

The Bancorp Bank remained the largest issuer in 2013, a position it gained in 2012. Its market share of purchase volume among the 50 largest increased to 25.73% from 18.53% the prior year. The Bancorp Bank’s market share of cards in circulation was 30.16%, up from 22.73%.

MetaBank remained in second place. Its market share of the top 50 issuers’ purchase volume increased to 14.54% from 14.22% in 2012. MetaBank’s market share of cards in circulation was 16.17%, up from 13.39%.

Green Dot moved up to third largest from tenth place one year before, overtaking Comerica despite that issuer’s 28.3% growth rate in 2013.Prior issues: 1,020, 997, 975

Top U.S. Prepaid Card Issuers 2013 Purchase Volume Cards Purchase Trans. Avg. Rank Company (mil.) Chg. (000) Chg. (mil.) Chg. Amt.

1. The Bancorp Bank $30,384.6 47.4% 57,704 29.5% 717.5 57.5% $42 2. MetaBank $17,167.0 8.5% 30,940 17.9% 529.6 12.2% $32 3. Green Dot Corp. $13,387.0 6.0% 4,489 2.6% 484.7 5.8% $28 4. Comerica Bank $13,173.0 28.3% 11,074 19.5% 423.8 23.3% $31 5. JPMorgan Chase $10,800.0 9.8% 9,500 15.9% 234.9 8.6% $46 6. H&R Block $8,700.0 –7.8% 2,600 –13.6% 100.2 –6.8% $87 7. Bank of America $5,114.9 –6.2% 7,462 33.2% 168.5 –3.4% $30 8. U.S. Bank $3,680.3 –10.5% 33,581 6.0% 146.2 0.2% $25 9. Citibank $3,079.5 –0.3% 20,387 –25.7% 131.7 0.8% $23 10. Wells Fargo $2,900.8 –6.9% 8,829 8.0% 102.6 –10.7% $28 11. UMB Bank $2,644.0 22.1% 4,554 56.3% 38.4 14.7% $69 12. ADP FCU $1,087.9 71.8% 903 82.9% 46.2 73.4% $24 13. PNC Bank $840.3 31.1% 3,632 71.1% 17.2 –17.3% $49 14. Comdata $714.8 37.3% 1,597 38.5% 27.6 43.4% $26 15. Sunrise Banks $659.4 59.1% 12,303 157.8% 31.0 161.5% $21 16. Webster Bank (incl. HSA) $622.9 20.5% 729 5.5% 5.9 19.1% $105 17. BofI Federal Bank $483.6 new 777 new 22.2 new $22 18. Central Trust Bank (Mo.) $439.1 –14.8% 375 –11.3% 18.1 –14.4% $24 19. BB&T $350.5 27.7% 607 –3.9% 10.6 33.1% $33 20. SunTrust Bank $330.1 13.8% 812 –45.5% 14.1 17.9% $23 21. Regions Bank $319.4 105.7% 123 120.0% 9.3 114.2% $34 22. Fifth Third $202.8 35.7% 1,006 17.9% 3.4 60.6% $60 23. KeyBank $193.1 –36.9% 805 –20.8% 3.3 –35.7% $58 24. TD Bank $159.4 5.4% 2,280 10.7% 5.7 4.1% $28 25. USAA $139.3 –0.8% 215 –5.3% 8.6 –0.9% $16 26. Navy FCU $74.8 12.8% 564 18.6% 3.3 13.5% $23 27. Metropolitan Comm’l Bank $64.0 123.6% 82 117.5% 1.5 125.8% $43 28. MB Financial $51.4 3.4% 44 4.8% 1.3 5.6% $40 29. Commerce Bank (Mo.) $48.9 53.6% 47 8.8% 1.8 57.5% $27 30. Patelco CU $36.7 –1.0% 51 2.2% 0.3 –4.9% $106 31. Arvest Bank $30.3 –6.1% 75 –2.1% 1.1 –4.8% $27 32. Kinecta FCU $28.1 0.9% 43 45.9% 0.7 4.1% $42 33. TIB-The Indep. BankersBank $24.6 7.3% 89 –37.0% 0.6 18.5% $44 34. BBVA Compass $22.5 19.1% 18 14.1% 0.7 20.8% $32 35. State Employees CU (N.C.) $17.9 0.1% 205 –81.0% 0.8 1.8% $22 36. BMO Harris $17.1 –6.9% 166 0.1% 0.5 –16.8% $36 37. Synovus Bank $15.2 221.5% 9 115.6% 0.5 199.3% $28 38. Zions Bancorporation $14.3 26.9% 16 –23.0% 0.3 8.1% $53 39. IBC Bank $9.9 –0.1% 14 0.5% 0.3 –0.8% $39 40. First Horizon $9.7 41.8% 30 57.5% 0.2 –20.1% $55 41. State Farm Bank $7.8 1.0% 1,100 0.1% 0.6 2.2% $13 42. First Citizens Bank $7.1 new 58 new 0.3 new $26 43. Intrust Bank $6.6 20.5% 35 56.0% 0.3 17.2% $23 44. FirstMerit Bank $6.5 –43.0% 38 –75.7% 0.3 –46.0% $25 45. Hancock Bank/Whitney $5.2 21.1% 3 –12.0% 0.2 15.0% $27 46. Old National Bank $3.4 0.8% 130 –0.6% <0.1 0.6% $38 47. VyStar CU $3.3 24.8% 151 2.9% 0.1 10.5% $23 48. Members 1st FCU $3.3 11.9% 43 –5.1% 0.1 3.0% $32 49. BancFirst $3.2 –4.7% 8 –9.1% 0.1 5.8% $28 50. Randolph Brooks FCU $1.8 251.3% 32 98.8% <0.1 253.0% $28Includes Visa, MasterCard, and Discover prepaid cards. Some prior year figures have been restated. Use percent change to calculate 2012 figures. © 2014 The Nilson Report

TOP 50 PREPAID CARD ISSUERS from page 1...



group processed $132.80 billion in purchase volume from 1.83 billion Visa and MasterCard transactions.

In addition, these acquirers, which are based in 12 countries, processed another 9.7 million American Express, UnionPay, Diners Club, and JCB transactions valued at $1.47 billion.

Not shown are 15.2 million domestic debit card transactions acquired by the group. They accounted for $2.18 billion in purchase volume. Brands included Al-Amil and KNET in Kuwait, eCASH in Qatar, AutoBranch in Kenya, and CMI in Morocco.

South Africa-based banks continued to rank first through fourth largest in the Middle East/Africa

region. Absa was the largest, followed by First National, Standard Bank, and Nedbank. Network International,

which is owned by Emirates NBD and Abraaj Capital, rounded out the top five.

Six banks in Saudi Arabia ranked in the top 28, with Al Rajhi Bank being the largest acquirer in that country and sixth largest in the region. Prior issues: 1,020, 996, 983

... $132.80 bil. in purchase volume from 1.83 bil. transactions.

Visa & MasterCard (1) Other Credit Cards (2) Active Rank Transactions Volume Trans. Volume Merchant POS ‘13 ‘12 Company, Headquarters (mil.) Chg. (mil.) Chg. (mil.) (mil.) Outlets Terminals

1 1 Absa South Africa 533.7 20% $18,062.4 14% 2.7 $196.2 64,320 145,180 2 2 First National Bank South Africa 268.8 15% $13,080.0 19% — — 51,338 57,962 3 3 Standard Bank South Africa 241.0 17% $10,241.0 21% 5.6 $570.4 39,753 50,667 4 4 Nedbank South Africa 189.0 18% $10,335.2 21% — — 39,044 47,875 5 5 Network International U.A.E. 117.8 22% $18,576.3 22% 0.3 $324.5 30,926 53,512 6 6 Al Rajhi Bank Saudi Arabia (3) 116.1 49% $16,705.2 29% <0.1 $14.3 13,474 28,103 7 7 Mashreq Bank U.A.E. 54.1 19% $7,675.5 21% 0.1 $55.3 14,093 23,363 8 8 National Commercial Bank Saudi Arabia (3) 38.3 15% $5,292.7 21% — — 6,649 14,889 9 13 SABB Saudi Arabia (3) 34.5 112% $6,151.5 109% 0.2 $92.7 5,931 8,945 10 9 Saudi Hollandi Bank Saudi Arabia (3) 31.1 9% $2,505.0 18% — — 885 8,792 11 10 Riyad Bank Saudi Arabia (3) 27.8 13% $3,748.9 14% 0.1 $36.1 4,233 14,793 12 11 Qatar National Bank Qatar (4) 24.5 28% $2,971.6 32% <0.1 <$0.1 2,996 6,183 13 12 National Bank of Kuwait Kuwait (5) 24.1 28% $3,225.6 20% <0.1 $5.8 10,558 11,716 14 — CMI Morocco (6) 22.7 — $2,089.9 — <0.1 $1.6 29,620 31,178 15 14 Emerging Market Payments Jordan 15.5 7% $1,442.1 13% — — 9,206 12,342 16 17 Kuwait Finance House Kuwait 13.9 67% $1,982.3 117% — — 4,465 5,171 17 15 Bank Alfalah Pakistan 12.2 12% $483.1 28% <0.1 <$0.1 12,441 22,725 18 16 Commercial International Bank Egypt 9.9 12% $844.3 13% <0.1 <$0.1 6,375 9,142 19 18 Arab African International Bank Egypt 9.3 15% $649.0 18% — — 4,728 6,350 20 — Mercantile Bank South Africa 9.1 — $371.7 — — — 4,084 5,129 21 19 Bank Audi Lebanon 9.0 17% $1,500.0 24% 0.3 $95.5 7,500 8,000 22 — Gulf Bank Kuwait 7.4 — $1,688.1 — — — 3,286 3,852 23 21 Doha Bank Qatar 7.1 42% $820.5 25% <0.1 $12.5 1,600 2,550 24 20 Credit Libanais Lebanon 6.5 –2% $905.5 3% — — 9,784 11,947 25 — Saudi Arabian Invest. Bank Saudi Arabia (3) 3.3 — $579.2 — 0.2 $60.2 685 1,991 26 22 Commercial Bank Kuwait 2.9 29% $686.0 35% — — 3,072 4,161 27 23 Equity Bank Kenya (7) 2.2 12% $117.2 18% — — 1,368 3,087 28 — FirstBank Nigeria 0.9 — $65.1 — — — 2,975 9,506Figures are net (gross minus chargebacks). Change in volume is based on local currency. (1) Visa and MasterCard credit, debit, and prepaid cards including Electron and Maestro. (2) Includes American Express, Diners Club, JCB, and UnionPay cards. (3) Includes SPAN co-branded Visa Electron, MasterCard debit, and Maestro cards. (4) Does not include eCASH domestic debit (4.4 mil., $679.0 mil.). (5) Does not include Al-Amil & KNET domestic debit (8.5 mil., $1,379.1 mil.). (6) Does not include CMI private label debit (1.7 mil., $105.8 mil.). (7) Does not include AutoBranch domestic debit (0.6 mil., $20.5 mil.).

© 2014 The Nilson Report

Merchant Acquirers in Middle East/Africa 2013

MIDDLE EAST/AFRICA’S LARGEST ACQUIRERS from page 1...


had received 25,000 comments — although 20,000 were essentially cookie-cutter letters encouraged by consumer advocacy groups.

The CFPB responded in April by initiating a survey of consumers who had been in the collection process. That analysis continues. Until the CFPB makes a final announcement, most large credit card issuers are choosing not to sell charged off card debt. They want

to understand what the new rules will be. On top of any pending CFPB action aimed at

sellers of card debt, there are proposed limits to the collection practices of buyers of charged off credit card debt moving

through several states. In particular, regulators and legislators want to protect debtors against the current collection practice of seeking court judgments against them by default. That is, collectors win a decision because debtors are not aware that they have to show up in court in person to fight a claim. If they don’t file an answer or don’t make a responsive pleading, they lose by default.

In many states this results in wages being garnished or bank accounts seized. In New York, more than 50% of all legal judgments go against debtors by default. New York has new laws that went into effect this month to curb the practice. Among other things it now requires that creditors provide a sworn statement to the court that the debt has not expired. Few states require sellers to verify debt information or to inform consumers that the debt is being sold.

The Center for Responsible Lending, a nonprofit group, says that one in seven U.S. adults is being pursued by a debt collector, and that in too many cases, the sale of debt by a credit card issuer is accompanied by limited or questionable data.

Charged-off credit card loans were the first nonperforming assets to make it on the market in large numbers. Now many buyers are shifting to collecting medical, DDA, real estate, student, payday, and other charged-off loans in order to keep their operations going.

If card debt does come back on the market, prices are not likely to be what they were when the industry was at its peak a few years ago, in part because the debt available will be of less value to buyers due to the statute of limitations’ impact on older debt. In addition, debt buyers seem likely to lose much of the utility derived from using the legal system to collect debt.

Buyers are shifting to medical, student, and other loans.

CONTACTS

Absolute Resolutions Michael Bendickson is President & CEO, (619) 564-6400 x143, [email protected].

Accounts Retrievable Harold Rosenblatt is President, (516) 783-6566, haroldr@ accountsretrievable.com.

Asset Recovery Solutions Chris Speetzen is Director, (847) 257-8306, [email protected].

Atlantic Credit & Finance Jaideep Ganguly is VP, Acquisitions and Asset Management, (540) 772-7800, x4036 [email protected].

Crown Asset Management Brian K. Williams is CEO, (770) 817-6700 x411, [email protected].

eCAST Settlement Edward Benison is EVP, (212) 272-6926, [email protected].

Encore Capital Amy Anuk is SVP, Bus. Development, (858) 309-6019, [email protected].

Fourscore Resource Capital Todd Striker is CEO, (952) 253-6300, [email protected].

JH Capital Anthony Riggio is President, (917) 251-9003, [email protected].

Oliphant Financial Melody Cuff is SVP, Chief Acquisitions Officer, (941) 556-1450, [email protected].

Ophrys William Weinstein is CEO, (206) 267-9992, [email protected].

Portfolio Recovery Associates Chris Graves is SVP, Core Acquisitions, (757) 961-3515, [email protected].

Sherman Financial Bryan Faliero is Director, (843) 266-1717, [email protected].

SquareTwo Financial Brian Tuite is EVP and Chief Business Development Officer, (303) 713-2200, [email protected].

Unifund Andrew Hagerman is VP, Acquisitions & Inventory Management, (513) 246-6259, [email protected].

CARD DEBT BUYERS – PART II from page 1...


© 2014 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, PublisherJun 30, 2014


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