For 41 years, the leading publication covering payment systems worldwide.

MARCH 2012 Issue 990

Fraud Detection Software Analytics

Software from start-up Curaxian Analytics doesn’t identify
fraudulent transactions but its software does tell merchants
Purchase Transactions at
how well their existing fraud-detection software is performing. Top U.S. Acquirers 2011
Trans.
turn to page 6 Acquirer (Bil.) Market Share Change vs. 2010

Emerging Markets Payments Holdings First Data* 15.95 22.6% 7.1%

Emerging Markets Payments Holdings, which acquired Visa
BAMS 12.94 18.3% 3.1%
Jordan Card Services last year and Mediterranean Smart Cards
Company in Egypt the year before, has now acquired ACET Vantiv 9.61 13.6% 12.9%
... turn to page 6
Chase 8.20 11.6% 18.9%
Barclaycard/Sallie Mae Card Partners Paymentech
Barclaycard US has acquired 300,000 active co-branded Upromise WorldPay 2.88 4.1% 9.1%
MasterCard credit card accounts from Bank of America tied to
$1.3 billion in outstandings. Upromise is a brand name owned by Heartland 2.80 4.0% 7.6%
... turn to page 5 Global
Payments 2.44 3.5% 13.5%
Oberthur’s Mobile Initiative
Elavon 2.35 3.3% 7.7%
Oberthur Technologies is negotiating to acquire MoreMagic
Solutions, a U.S.-based software vendor that offers a suite of Wells Fargo 1.78 2.5% 16.5%
mobile commerce and mobile financial services applications for
... turn to page 12 TSYS 1.16 1.6% 7.1%

First Data OfferWise Point-of-Sale Redemption
A new open platform available from First Data lets publishers
attach offers, e-coupons, loyalty programs, and more to a
consumer’s payment cards or to a mobile wallet for immediate
... turn to page 12
JPMorgan/AirPlus T&E Card Partners
JPMorgan Chase’s Global Commercial Card unit and AirPlus
International have formed a partnership to offer large
multinational corporations in the U.S. and Canada a global
... turn to page 8
Vodafone and Visa Mobile Payments
Mobile network operator (MNO) Vodafone will embed the Visa
payWave contactless mobile payment application in phones
it sells in markets where smartphones dominate sales. Near
... turn to page 7
Note: Includes all general purpose credit, debit and prepaid
card transactions, including signature and PIN debit.
* First Data includes Citi, SunTrust & Sovereign.
© 2012 The Nilson Report
Top U.S. Acquirers
The 10 largest U.S. merchant acquirers handled
$3.229 trillion in volume last year generated by
60.12 billion general purpose transactions on PIN-
based debit cards, on Visa and MasterCard debit
cards, and on credit cards carrying the brands of
... turn to page 8
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INSIDE: Fast Facts P 2-4 | GLOBALCOLLECT IN LATIN AMERICA P 5

CHARTS: TOP U.S. ACQUIRERS 2011 — Total Purchase volume on general purpoSe cards P 9 | merchant acquirers in the u.s. 2011 P 10,11

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 Fast Facts > > > > > > > >
ZUORA, a startup that provides online services to manage and auto-
mate customer subscriptions and payments, has raised $36 million
in new funding led by Index Ventures and Greylock Partners. This
brings the company’s total funding to over $80 million. Tien Tzuo is
CEO at Zuora, (650) 641-3777, tien.tzuo@zuora.com,
www.zuora.com.
GLOBAL PAYMENTS, provider of merchant acquiring services
in the U.S., Canada, Europe, and Asia-Pacific, now offers new
and existing developers the ability to gain immediate access to
its Global Transport-Software Development Kit through a new
Web portal. Sid Singh is SVP and Global Head, Products at Global
Payments, (770) 829-8375, sidharth.singh@globalpay.com,
www.globalpaymentsinc.com.
ROYAL GROUP SERVICES provides acquiring banks and ISOs
with data breach and uncollectable chargeback insurance
protection for their merchant portfolios. Scott Stangeland is
Partner, (248) 688-9356, stang@royalgroupservices.com,
www.royalgroupservices.com.
INGENICO has increased its equity position in Roam Data from the
43% stake it acquired in 2009 to approximately 75%. Ken Paull is
EVP at Roam Data, (678) 825-2579 , kpaull@roamdata.com,
www.roamdata.com.
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Topics include: mobile wallet wars, helping retailers cut through
the confusion, loyalty programs within the mobile wallet,
growing consumer engagement, mcommerce, emerging
payment models, products beyond the payment, creating
a mobile retail roadmap, retailers and restaurants changing
their game at the point of sale, lack of standards in mobile,
new breed of mobile shopper demographic, NFC & other
diversified technologies, mobile engagement, mobile
applications, in-store technology, location-based marketing,
mobile coupons, loyalty and social media, and tying social
media to mobile applications. Speakers represent: Pizza Hut,
Sears, JetBlue, Estee Lauder, Walt Disney, Macy's, Boston
Celtics, Universal Studios, Ralph Lauren, Coca Cola, Murphy
Oil, Kraft, Walmart, Home Shopping Network, Crate & Barrel,
Sunoco, BestFit Mobile, CorFire, Barclaycard, Isis, InComm,
Cognizant, Giftango, Mobibucks, Infinian, Saygent, Plink, Kony,
Mocapay, CSI Enterprises, and more. Cost is $1,695 for industry
delegates. Limited complimentary passes remain for retailers
– inquire by phone. Contact Melissa Morrissey at Retail Ramp,
(561) 705-6075, melissa@retailramp.com. Register at
www.retailramp.com.
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GREEN DOT will pay $43.4 million in cash to acquire Loopt, a mobile
commerce company. Green Dot is a top prepaid card program
manager. Steve Streit is CEO at Green Dot, (626) 775-3410, sstreit@
greendotcorp.com, www.greendot.com. Sam Altman is CEO at
Loopt, (650) 564-9100, sam@loopt.com, www.loopt.com.
CHARGE ANYWHERE’S Mobile Payment Application for Android
is now available in a Spanish language version. Oscar Muñoz is EVP,
(732) 417-4447 x137, omunoz@chargeanywhere.com,
www.chargeanywhere.com.
FISERV will combine its Popmoney and ZashPay person-to-person
(P2P) payment networks, and maintain only the Popmoney service
mark. The new client base will include 1,400 financial institutions
and reach 35 million online and mobile banking consumers.
Tom Roberts is SVP, Marketing, CashEdge Division at Fiserv,
(212) 478-6006, tom.roberts@fiserv.com, www.fiserv.com.
VANTIV, the fourth largest U.S. acquirer, has filed for an initial public
offering of common stock. It hopes to raise about $461 million on
the sale of 29.4 million Class A common shares. Vantiv is owned by
Fifth Third Bancorp and buyout firm Advent International.
Dara Dierks, Investor Relations at Vantiv, (513) 900-4811,
dara.dierks@vantiv.com, www.vantiv.com.
ISIS, the joint venture of AT&T Mobility, T-Mobile USA, and Verizon
Wireless, has licensed its mobile commerce application to
VeriFone, Ingenico, ViVOtech, and Equinox Payments for
integration into their POS terminals. Mark McKinney is Business
Development Executive at Isis, (404) 915-2789, mark@
paywithisis.com, www.paywithisis.com.
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Topics include: mobile money strategies in developed and
developing markets, augmented reality, connected
consumers, mobile OS and applications and next-generation
shopping technologies. In addition to these key presentations,
the 2012 conference will also feature dedicated tracks on Near
Field Communications, mobile security, mobile advertising,
mobile coupons, in-app billing, and B/OSS, as well as sessions
exploring business strategy, developing markets, devices,
and social media, among other subjects. Speakers represent:
Citi, American Express, Movenbank, Zaarly, PayPal, Dwolla,
Sparkbase, Appcelerator, ShopSavvy, Utiba, Tapjoy, CSI Global
VCard, Mopay, Braintree, Cisco, Mobiquity, CorFire, and more.
Cost is $495. Contact Bruce Burke at Gulf Bay Consulting,
(978) 632-6798 x 157, gbc@gulfbayconsulting.com. Register at
www.socialmobilepayments.com.
> > > > > > > > > Fast Facts
CSR, provider of data compliance technologies and expert services,
now offers CSR Breach Reporting ToolKit, which delivers the
required information to the appropriate regulating bodies on
behalf of businesses. The reporting toolkit aims to reduce regula-
tory scrutiny as well as financial, civil, and criminal penalties for
negligence. Ross Federgreen is Founder of CSR, (772) 225-0007,
rfedergreen@csrsi.com, www.csrcorporate.com.
VANTAGESCORE SOLUTIONS is offering a free white paper
that provides detailed performance results of its VantageScore
2.0 credit scoring model. Barrett Burns is CEO, (203) 363-2161,
barrettburns@vantagescore.com, www.vantagescore.com.
ARROWEYE SOLUTIONS reports that its secure payment card
production grew by over 40% in 2011. It hit a record 100,000 units
one day in the fourth quarter of 2011. Render Dahiya is CEO,
(312) 253-9412, render.dahiya@arroweyesolutions.com,
www.arroweyesolutions.com.
VANTAGE CARD SERVICES' Level 4 merchants now have access
to ControlScan's PCI 1-2-3 compliance technologies through a
Web-based on-demand subscription service, which guides them
through the entire compliance process and lets them monitor their
status in real time. Ty Hardison is VP, Development and Strategy at
Vantage Card Services, (770) 928-5688, tygh@vantagecard.com,
www.vantagecardservices.com. Jethro Felton is EVP Sales and
Business Development at ControlScan, (678) 279-2672, jfelton@
controlscan.com, www.controlscan.com.
ELECTRACARD SERVICES (ECS), a subsidiary of Opus Software
Solutions, provides third-party processing services for credit and
payments management. ECS has launched the electraSWITCH - iTx
series, its new EFT switch platform that drives ATM and POS net-
works. Prashant Mengawade is Head, Products and Engineering,
91 (20) 3092-5107, prashant@electracard.com,
www.electracard.com.
GIESECKE & DEVRIENT’S new Taurus-generation NFC SIM cards
are being deployed by Noverca for Italy’s first mobile payments
pilot test, which involves 600 employees and customers of Banca
Intesa Sanpaolo. They can use their mobile phones to make Master-
Card PayPass contactless payments in Milan and Turin at more than
3,000 POS terminals operated by Setefi. Willem Bulthuis is Group
SVP, Mobile Security, Global Marketing, and Sales at G&D,
49 (89) 4119-3514, willem.bulthuis@gi-de.com, www.gi-de.com.
Maurizio Manzotti is CEO at Setefi, 39 (02) 891-371,
maurizio.manzotti@intesasanpaolo.com, www.monetaonline.it.
GLOBE TELECOM’S G-Xchange mobile commerce subsidiary in
the Philippines has entered into a partnership with American
Express that will allow Globe GCash mobile wallet customers to
buy smartphone apps, music, movies, and games as well as
electronics, toys, and apparel from websites in the U.S. and U.K.
Goods will be delivered from the U.S. or U.K. directly to homes in
the Philippines. Paolo Eugenio J. Baltao is President at GXI,
63 (917) 818-1852, pjbaltao@globetel.com.ph, www.globe.com.ph.
Kula Kulendran is EVP, Global Network Services, Japan, Asia Pacific,
Australia at American Express, (65) 6317-6108, kula.kulendran@
aexp.com, www.americanexpress.com.
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BOKU’S direct-to-carrier (mobile network operator, MNO) billing
services are now available to Web merchant customers of WorldPay,
Europe’s largest acquirer. Boku is connected to 260 MNOs in 67
countries. James Patmore is Managing Director at BOKU,
44 (7711) 146-089, james@boku.com, www.boku.com. Gabriel Hop-
kins is Head, eCommerce Products at WorldPay, 44 (203) 246-5423,
gabriel.hopkins@worldpay.com, www.worldpay.com.
ARAB FINANCIAL SERVICES, a top third-party processor in the
Middle East, has been recertified for the next three years as an ISO
9001:2008 organization for its core services relating to application
processing, account hosting, card personalization, chargeback
processing, fraud management, and customer services.
B. Chandrasekhar is CEO, 973 (17) 294-545, b.chandrasekhar@
afs.com.bh, www.afs.com.bh.
MOBILE TRANSACTIONS INTERNATIONAL in Zambia has
raised $3.2 million from philanthropic investment firms Omidyar
Network and Accion International. MTI has proprietary technology
and a network of 100 cash agents in the country, where up to 80%
of adults who earn a salary do not have a bank account. Arjuna
Costa is Director of Investments at Omidyar Network,
(650) 482-2511, acosta@omidyar.com, www.omidyar.com.
Mike Quinn is CEO at Mobile Transactions, 260 (9) 6866-4643,
mike@mtzl.net, www.mtzl.net.
B+S SERVICE in Germany has implemented VeriFone’s PAYware TCS
technology, which lets network service providers remotely manage
payment functions at merchant locations equipped with VeriFone’s
Artema Hybrid and H5000 terminals. Matthias Kaufmann is CEO at
B+S, 49 (69) 6630-5200, matthias.kaufmann@bs-card-service.com,
www.bs-card-service.com. Adam Biedrzycki is VP, Central Europe at
VeriFone, 48 (22) 380-1703, adam_b1@verifone.com,
www.verifone.com.
> CHANGES
management
Cathy McCaul has been appointed Group Executive,
Integrated Processing Solutions at MasterCard,
(914) 249-3737, cathy_mccaul@mastercard.com.
Steve Elefant, formerly at Heartland Payment Systems,
has been appointed as an Of Counsel Associate at
The Strawhecker Group, (402) 964-2617, steve@
thestrawgroup.com. Deborah Spidle has been appointed
Director, EMV Solutions at Paragon Application Systems,
(919) 567-9890, dspidle@paragonedge.com. John
Kempisty has been appointed Managing Director, North
America at Acquirer Systems, (704) 681-2732,
jkempisty@acquirer.com. Phil Stothard, formerly
at HSBC, has been appointed Director, Business
Intelligence at ReD, 44 (7785) 625-574, pstothard@
redworldwide.com. Amy Masters, formerly at American
Express, has been appointed Director of Marketing at
Payfone, (908) 229-8445, amasters@payfone.com.
> > > > > > > > Fast Facts
DINERS CLUB ECUADOR (DCE) is the first company outside of
the U.S. to license the Discover Card brand. It has sublicensed the
issuing rights to Banco Pichincha, Ecuador’s largest bank. Diners
Club International is owned by U.S.-based Discover Financial
Services. DCE is a franchise. Pablo Salazar is President at Diners
Club Ecuador, 593 (2) 298-1300 x4411, pse@dinersclub.com.ec,
www.dinersclub.com. Diane Offereins is EVP and President at
Discover Payment Services, (224) 405-3092, dianeoffereins@
discover.com, www.discover.com.
SOCIETE GENERALE will use Oberthur Technologies as the
Trusted Service Manager handling the over-the-air provisioning of
NFC-based payment applications to its customer’s smartphones.
Yves Blavet is Head, eCommerce, Card Services at Société Générale,
33 (1) 4213-5210, yves.blavet@socgen.com,
www.societegenerale.com. Eric Duforest is General Manager, Europe
at Oberthur, 33 (1) 4785-5400, e.duforest@oberthur.com,
www.oberthur.com.
PHOENIX MANAGED NETWORKS, provider of payments
communication, gateway, and payment support services, will use
hardware and software-based services from network management
company Mako to create PaySecure, a program that delivers cloud-
based security, management, and PCI DSS compliance to card-
present merchants and small and midsized businesses. Bill Farmer is
CEO at Mako Networks, 64 (9) 448-1340, billf@makonetworks.com,
www.makonetworks.com. Jack McDonnell is CEO at Phoenix ,
(703) 230-7600, jmcdonnelljr@phoenixmanagednetworks.com,
www.phoenixmanagednetworks.com.
AL RAJHI BANK in Saudi Arabia has deployed Gemalto’s Dexxis
Instant Issuance system for EMV card delivery at more than 500
branches. Sultan Al-Hamidi is Head of Cards at Al Rajhi Bank,
966 (1) 279-5677, alhamidisa@alrajhibank.com.sa,
www.alrajhibank.com.sa. Philippe Cambriel is EVP at Gemalto,
33 (1) 5501-5283, philippe.cambriel@gemalto.com,
www.gemalto.com.
ConFeRenCes & seMinaRs
4th Mobile ContaCtless PayMent
innovations 2012: April 3-4, 2012. The Westin Market
www.nilsonreport.com
Street, San Francisco, California. Estimated attendance: 250.
Conference links at
Standard rate for the two-day conference is $1,595, with special
early-bird and merchant rates available. Subscribers to The Nilson
Report will receive a $300 discount. (Use code MP51.) Contact Strategic
Solutions Network, (561) 674-0086, uzma@strategicsolutionsnet.
com. Register at www.paymentinnovations.net.
ePCa suMMit 2012: April 18-20, 2012. The Palazzo Altieri,
Rome, Italy. Estimated attendance: 200-250. Cost for the
two-and-a-half-day conference is $2,481 (€1,895).
Subscribers to The Nilson Report will receive a 20% discount.
Contact Mireille Steenkamer at Transactives,
31 (20) 658-0651, mireille@transactives.com. Register at
www.epcapaymentsummit.com.
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KOTAK MAHINDRA BANK in India has purchased 150,000 non-
performing card accounts from Barclays Bank. In December 2011,
Standard Chartered bought the 150,000 active accounts in the
Barclays portfolio. Barclays is now out of the credit card business in
India. Amulya Mishra is Head of Cards at Kotak Mahindra,
91 (970) 301-8870, amulya.mishra@kotak.com, www.kotak.com.
Anirban Mukherjee is Head of Unsecured Products at Standard
Chartered, 91 (22) 6737-3581, anirban.mukherjee@sc.com,
www.standardchartered.com.
JUMIO has raised $25.5 million in series B funding led by Andreessen
Horowitz. Jumio provides applied computer vision technology. Its
devices are able to read and understand information about an im-
age that has been captured by a computer's camera. The company's
Netswipe product, which was launched in 2011 for Internet retailers
in Europe, lets consumers use their computers to scan and read a
payment card via videostream. No image is taken, and no data is
stored on the computer. The same patent-pending technology is
used to create Netverify, which turns any computer camera into an
ID reader. Thomas Kastenhofer is COO, 43 (664) 610 3869, thomas@
jumio.com, www.jumio.com.
MERCADOTECNIA, IDEAS Y TECNOLOGIA (MIT), which
processes more than 3+ million transactions monthly from mer-
chants in Mexico, recently launched SPUG, a complete payment
processing package for small merchants. SPUG is being sold at
the 201 Office Depot stores in Mexico. Juan Carlos Viramontes is
Managing Director at MIT, 52 (55) 1500-9002, juan.viramontes@
mitec.com.mx, www.mitec.com.mx.
UKASH has expanded its cash voucher payment system for Web
purchases in Argentina through a partnership with POS terminal
network operator Raberil Trading. Ukash now sells through a net-
work of 420,000 locations in 57 countries in 20+ currencies. Tiago
Coimbra is Partner Manager at Ukash, 44 (207) 089-4108,
tiago.coimbra@ukash.com, www.ukash.com. Gustavo Trenche is
Commercial Manager at Raberil Trading, (598) 9800-1154,
gustavo.trenche@connectingmoney.com, www.raberiltrading.com.
naCha PayMents 2012: April 29 – May 2, 2012. The
Baltimore Convention Center, Baltimore, Maryland. Estimated
attendance: 2,500+. Cost for the four-day conference is $1,595
(member), $1,895 (nonmember). Subscribers to The Nilson Report will
receive the member rate. (Please use Discount Code NLSRPT at checkout to
receive Member price if you are not already a Member.) Contact Member
Services at NACHA, (703) 561-1100, info@nacha.org. Register at
http://payments.nacha.org.
nFC solutions suMMit 2012: May 22-24, 2012.
The Hyatt Regency San Francisco Airport, Burlingame,
California. Estimated attendance: 450. Cost for the three-day
conference is $950. Subscribers to The Nilson Report will receive a 20%
discount. Contact Bill Rutledge at SCA/Cnxtd,
(212) 866-2169, bill@cnxtd.com. Register at
www.smartcardalliance.org/nfcsolutions.
 GlobalCollect in Latin America
The top Internet Payment Service Provider (PSP) Argentina, 54 (11) 5252-0960, bmenendez@sub1.
to e-commerce merchants in Argentina Sub1, has com.ar, www.sub1.com.ar.
been acquired by GlobalCollect. Terms were not
GlobalCollect, which is headquartered in the
Netherlands, provides a single interface that
offers e-commerce merchants access to local and
international payment methods in 200 countries
including credit, debit, and prepaid cards, direct
debits, bank transfers, real-time bank transfers,
eWallets, cash at outlets, noncard prepaid
disclosed. Sub1 says it holds a 70% market share
products, checks, and invoices. It integrated with
of e-commerce sales originating in Argentina. It
Sub1 last year to give its e-commerce merchants in
also provides its payment processing
Asia, North America, and Europe access
services to airlines and retailers in
to consumers in Latin America.
Mexico, Brazil, Colombia, and other Sub1 will
countries in Latin America. The operate as Welsh, Carson, Anderson & Stowe is
company’s assets include connections a wholly- majority owner of GlobalCollect, which
to most payment card acquirers in owned operates regional offices in Singapore,
Latin America as well as to noncard San Francisco, and Buenos Aires.
subsidiary.
payment networks. Juan Pablo D’antiochia is General
Manager, Latin America at GlobalCollect
Sub1 will continue to exist as a
in Buenos Aires, Argentina, 54 (11) 5352-
brand, operating as a wholly owned subsidiary
0226, juan.dantiochia@globalcollect.com,
of GlobalCollect. Bernardo Menendez is CEO at
www.globalcollect.com. Prior issues: 986, 985,
Sub1, a Global Collect company, in Buenos Aires,
982, 978

BarclaycARD/Sallie Mae Card Partners

(from page 1)...
SLM Corporation, better known portfolio in 2009. Sallie Mae (not 7.99%) finance charge
as Sallie Mae. Barclaycard also began issuing its own Visa card rate on revolving balances.
purchased from last year. Conversion Barclaycard says that credit
Sallie Mae a small of the Upromise union members have default
Visa credit card SALLIE MAE MasterCard accounts rates that are 200+ basis points
portfolio. SLM offers offers from BofA’s in-house lower than the industry average.
products including products to system to the TSYS It plans to launch Ring during
education loans, 25 milLION platform used by the second quarter supported
tuition insurance, customers. Barclaycard will occur by digital marketing. Amer
college savings plans, in the third quarter. Sajed is CEO at Barclaycard
and online banking The Sallie Mae Visa US in Wilmington, Delaware,
to 25 million customers. card, currently handled
by First Data, will also be
The Upromise MasterCard
converted.
lets cardholders earn reward
points they can use to pay down Barclaycard has also
student loans, apply toward announced a new credit card
college tuition savings accounts, product created by way of
or invest in other SLM products. “crowdsourcing” — input
obtained from an online
Citi was the issuer of the
community it is developing to
Upromise co-branded
act something like a virtual
MasterCard when it was (302) 255-7953, asajed@
credit union. The Barclaycard
launched in 2001. BofA barclaycardus.com,
Ring MasterCard offers an 8%
purchased the Upromise www.barclaycardus.com.

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5 MARCH 2012 ISSUE 990 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
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 Fraud Detection Software Analytics
(from page 1)
Curaxian analyzes monthly chargeback data
to identify fraud that slipped past detection
software, then delivers criteria to the
merchant’s defending platform to improve future
performance.
Company principals, who previously
worked for merchants directly or as
consultants, have produced a laundry list
of problems commonly discovered only
after an analysis of transaction data.
A second feature of Curaxian’s software-
as-a-service is its ability to measure how
many good sales are unnecessarily rejected
by fraud detection rules or processes.
Merchants can test their platform to achieve target
fraud levels by varying how strictly rules are
applied to each type of business. Outcomes are
measured by comparing real data on fraud and
sales against a control group.
Because the company’s software is cloud-based,
implementation with a merchant or payment
service provider can be completed in two to six
weeks depending on how long a client needs to
gather necessary transaction data. This includes
information about authorization, any sales
chargebacks or refunds, the type of products
or services purchased, the sales channel used,
and IP addresses. No new requirements for PCI
compliance are introduced because card data is
not stored.
Curaxian Analytics is financed by
... lets mer- the company’s principals. Its first
chants test customer is expected to be live in
fraud rules May. The platform is multicurrency
to achieve and compatible with all card
target levels. or noncard payment methods
in use worldwide. Curaxian is
looking to integrate with payment
service providers interested in differentiating
their reporting, analytics, and fraud protection
services from competitors. Mitch Muroff is CEO at
Curaxian Analytics in San Francisco, California,
(415) 508-7094, mitch@curaxian.com,
www.curaxian.com.

Emerging Markets Payments Holdings

(from page 1)... CONTACTS
Processing based in South to provide card management t ACET Processing Mike Crawley
Africa. Terms of the deal were support to issuers and acquirers. is CEO in Cape Town, South Africa,
not disclosed. ACET Processing One-third of the payment card 27 (21) 681-2570, mcrawley@
had been jointly owned by issuers in Egypt are clients. acetprocessing.com,
First Data and company Visa Jordan uses S2M software www.acetprocessing.com.
management. to manage 80% of the POS t Actis Rick Phillips is Partner
terminals in Jordan. ACET uses in Cairo, Egypt, 20 (2) 2792-9220,
EMPH is 90% owned by
First Data’s VisionPlus account- rphillips@act.is, www.act.is.
private equity firm Actis,
which focuses on emerging
processing system to support t Emerging Markets Payments
retail credit card and consumer Holdings Paul Edwards is Chairman
markets. Mediterranean, Visa in Johannesburg, South Africa,
finance accounts that generate
Jordan, and 27 (83) 709-7007, pedwards@
spending from over
ACET combined emp-holdings.net,
15,000 retail outlets in
support payment EMPH is 90% www. emp-holdings.net.
South Africa.
card transactions owned by pri-
for more than vate equity EMPH paid $87 million better economies of scale and
125 clients in 40 to buy Visa Jordan deliver higher quality service
firm Actis.
countries in Africa Card Services and levels. The companies are going
and the Middle $30 million to buy to change their names to Emp
East. Mediterranean Smart Cards. It Middle East (Visa Jordan), Emp
plans to combine the assets of Africa (Mediterranean), and
Mediterranean Smart Cards
its three acquisitions to create Emp Retail (ACET).
uses Compass Plus software

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 Vodafone and Visa Mobile Payments
(from page 1)...
Field Communication (NFC)
technology will also be a feature
of those devices. Visa payWave
will be tied to a prepaid product
provided by a Visa card issuer
and used to pay for goods and
services at the point of sale. The
wallet will be Vodafone branded.
Visa cardholder account
management will be handled
by the Visa issuer selected by
Vodafone.
The Visa
contactless
prepaid payment
product will first
reach the market
Netherlands,
Spain, Turkey,
later this year
in Germany, the and the U.K.
Netherlands,
Spain, Turkey,
and the U.K. where Vodafone
has 98 million customers. One
or more of the Visa issuers in
those countries will market
prepaid payWave accounts in
partnership with Vodafone.
Caroline Hawkett is VP, Mobile
at Visa Europe in London, U.K.,
44 (207) 937-8111, hawkettc@
visa.com, www.visa.com.
The Vodafone NFC wallet
utilizes open API standards
published by the GSMA, the
mobile telephone system
standards body. It is designed
for global interoperability and
has the capacity to hold other
Visa payment cards and the
card products of MasterCard,
American Express, and other
issuers, as well as transport,
retailer, and utility company
accounts. When consumers
make purchases on the mobile
Web with general purpose credit
7 MARCH 2012 ISSUE 990 THE NILSON REPORT
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and debit cards they will use feature of the Visa/Vodafone
a 4-digit passcode for security. partnership.
Service fees on a per-active-
Vodafone and Visa could use
account basis will be paid by
software from Visa or an
any outside provider of
outside vendor or the services of
payment or other services
a third-party processor to link
for access to the Vodafone
a 16-digit Visa prepaid account
wallet.
number to the Vodafone phone
Vodafone hasn’t number. This would enable
announced the wallet vendor, purchases on the mobile Web
provider of the NFC SIM at Visa merchants and cash
card, or the Trusted Service withdrawals at ATMs. Those
Manager (TSM). Individual phones could also be used to
Visa, MasterCard, and any other pay bills or to pay individuals
provider of payment, loyalty, using the Visa Personal
and other services will Payments function.
select their own TSM to
Prepaid funds would be held
... will be facilitate provisioning
in a single account shared by
Launched in of account information
Vodafone for its proprietary
to handsets by way of
Germany, the in-network business and a
the MNO.
local Visa issuer for general
Vodafone has purpose transactions. How
experience with mobile accounts are managed is subject
money programs in to regulatory requirements in
emerging markets each market. In some markets
including India, a plastic card could be issued
Tanzania, South Africa, Qatar, too. The first emerging market
Fiji, and the highly successful countries will be announced
M-Pesa in Kenya, operated by later this year.
Safaricom. Vodafone holds a
Visa and mobile network
minority interest in Safaricom.
operator Orange recently
Christian Wirtz is Group
announced a partnership that
Director of
will put Visa prepaid
mCommerce
accounts in Orange
at Vodafone
handsets sold in
in Duesseldorf,
eight countries in
Germany, 49
Africa.
(211) 820-1880,
christian.wirtz@ In the fourth
vodafone.com, quarter of 2011 Visa announced
www.vodafone.co.uk. a prepaid product partnership
with MTN Group, which
Vodafone has 398 million
provides telecom services in
customers worldwide in 30+
20 countries in Africa, Asia,
countries. It plans to work
and the Middle East. Matt Dill
with Visa in all markets in
is Head of Global Business
which it operates. No go-to-
Development, Emerging
market strategies have yet been
Products at Visa Inc. in London,
finalized outside of the five
U.K., 44 (207) 225-8432,
countries named. In emerging
mdill@visa.com, www.visa.com.
markets contactless payWave in
smartphones won’t be the lead
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 JPMorgan/AirPlus T&E Card Partners
(from page 1)...
program that integrates travel and multilanguage applications corporate customers. AirPlus’s
& entertainment payment with in a single database as a main card product is its UATP-
travel expense management way to gain business from based lodge account, which it
reporting in a single offer. competitors who hold
T&E card contracts
Corporate travel managers
at large multinational
will receive an AirPlus lodge
companies for which
account, which uses the UATP
JPMorgan provides
purchasing card and/or treasury issues in 60 countries. It also
management services. issues Visa and MasterCard
brand T&E cards in Germany
JPMorgan serves more than
and a T&E card in the U.K.,
6,000 public and private sector
and offers a proprietary AirPlus
clients. It plans on taking its
virtual purchasing card in
new AirPlus T&E card service
Germany that operates outside
to every country in which
of the Visa, MasterCard, or
JPMorgan provides commercial
UATP networks. AirPlus owns
banking services beginning in
equity stakes in Diners Club
(Universal Air Travel Plan) the fourth quarter of this year.
franchises in Austria and Spain.
network to settle payments for Lionel Le Meur is Managing
airline travel. Employees will Director, Corporate Card The company is also an acquirer
receive a Visa or MasterCard at JPMorgan Chase in New of card payment transactions in
credit card for other travel York, (212) 552-5372, lionel. Germany, mostly from airlines.
and entertainment expenses. lemeur@chase.com, www. In addition, it has started
Those cards will be issued jpmorganchase.com. acquiring transactions from
by JPMorgan in countries hotels and other travel-related
AirPlus is a wholly
where it issues cards, or by merchants there and
owned subsidiary of
AirPlus directly (the U.K. plans to expand its
and Germany), or through an
Lufthansa Airlines. travel acquiring business
AirPlus partner bank in other
Last year it handled managers to other countries in
over 100 million will get an
countries. AirPlus bank partners Europe as well as to
transactions valued
include UBS in Switzerland and AirPlus lodge the U.S. and Canada.
at more than $13.20
Santander in Spain.
billion (10+ billion
account. Spencer Hanlon is
Executive Director
JPMorgan is the top U.S. euros). JPMorgan
of Marketing at
purchasing card issuer and gains AirPlus’s ability
AirPlus International in Neu-
ranks third among Visa and to offer client management
Isenburg, Germany, 49 (610)
MasterCard T&E (corporate) support staff services in more
220-4200, shanlon@airplus.com,
card issuers. It sees AirPlus than 55 countries. AirPlus
www.airplus.com. Prior issues:
assets including multicurrency already serves over 38,000
975, 972, 929, 912, 909, 904, 901

Top U.S. Acquirers

(from page 1)...
Visa, MasterCard, American Express, Discover, billion. The average transaction amount increased
Diners Club, and JCB. Volume represented a 9.8% 0.2% — from $52.95 to $53.04.
increase over $2.942 trillion in 2010. Transactions
Based on Visa and MasterCard credit and debit
were up 9.2% from 55.05 billion. The top 5
card volume alone, the top 10 accounted for $2.361
acquirers accounted for $2.602 trillion in purchase
trillion on 43.77 billion transactions. Volume was
volume generated by 49.06 billion transactions.
up 9.0% from $2.167 trillion. Transactions were
This represented an increase of 9.1% or $216.40
up 9.4% from 40.01 billion transactions. The top
billion, while the transactions were up 8.9% or 4.01
5 issuers accounted for $1.899 trillion generated

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 by 35.52 billion transactions.
Visa/MasterCard volume was
up 8.3% or $145.49 billion
from 2010. Transactions were
up 9.1% or 2.97 billion. The
average amount per transaction
declined 0.8% — from $53.86 to
$53.45.
First Data figures shown in the
charts appearing on page one
and below include merchant-
acquiring contracts owned by
the company outright under its
First Data Merchant Services
division, including Cardservice
International, along with
those owned by First Data’s
revenue-sharing alliances with
SunTrust Merchant Services,
Citi Merchant Services, and
Top U.S. Acquirers 2011
$700
$600
Total Purchase Volume
$500
from General Purpose Cards (Bil.)
© 2012 The Nilson Report
$400
$300
$200
$100
First Data
BAMS
Chase
Vantiv
Elavon
Global
Wells
18.0%
14.6% 14.2% 14.1%
12.4% 11.5% 11.4%
8.7%
5.6%
3.7%
Change vs. 2010
Sovereign Merchant Services,
which are essentially wholly
owned entities of First Data.
Cardservice is also included
with First Data in the table on
pages 10 and 11, but SunTrust,
Citi, and Sovereign are listed
separately.
Pages 10 and 11 show the
ranking of the 94 largest U.S.
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portfolios of merchant card- acquirers, Chase Paymentech
processing contracts based on was the largest, followed by
purchase volume generated BAMS, Vantiv, Global Payments,
by Visa and MasterCard credit Wells Fargo, First Data
and debit cards. Among these (including its revenue-sharing
acquirers, 21 had an average alliances), Elavon, WorldPay,
per-transaction amount of TSYS, and Heartland. For the
over $100 for Visa top five in this
and MasterCard category, volume
transactions. These for the top 10, was $222.40
included top issuers total pur- billion, up 16.8%
TransFirst, Intuit, from 2.40 billion
chase volume
Moneris, Fidelity, Key, transactions,
from general
M&T Bank, JetPay, up 13.9%.
First Hawaiian,
purpose cards The average
was up 9.8%.
Capital One, and TD transaction
Bank. Top issuers amount increased
with average per- 2.6% — from
transaction amounts under $50 $90.45 to $92.77.
included Vantiv (formerly Fifth
Among the 66 acquirers that
Third Processing Solutions),
reported American Express
Citi, Heartland,
volume separately, those with
WorldPay, Mercury,
the largest Amex card volume
The Bancorp Bank,
Cynergy Data, Total
were Chase Paymentech ($56.76
billion), BAMS ($45.00 billion),
Merchant Services,
Global Payments ($28.60
BankCard Services,
billion), Vantiv ($26.39 billion),
and United Merchant
Wells Fargo ($22.99 billion),
Services.
TSYS ($11.03 billion), and
There were 78 Heartland ($10.06 billion).
acquirers that
Among the 71 acquirers that
reported PIN-based
reported Discover Card volume
debit card volume.
separately, those with the
Those with over
largest Discover Card volume
$10 billion were
were Chase Paymentech ($11.70
WorldPay
Heartland
TSYS
Vantiv, Bank of
billion), Vantiv ($10.36 billion),
America Merchant
Global Payments ($8.86 billion),
Services (BAMS),
and BAMS ($6.01 billion).
First Data (including
its revenue-sharing There were 15 acquirers that
alliances), Chase reported private label gift/
Paymentech, prepaid volume, including
WorldPay, Wells
Fidelity ($593.4 million),
Fargo, Elavon, and
Mercury ($343.7 million), and
Heartland. Volume
WorldPay ($297.5 million).
for the top five PIN debit
acquirers was $507.76 billion, There were 20 acquirers that
up 9.9%, generated by 11.62 reported electronic check
billion transactions, up 7.9%. conversion transactions, led by
The average transaction amount Elavon with 46.4 million, Intuit
increased 1.8% — from $42.94 with 39.4 million, Sage with
to $43.71. 9.5 million, WorldPay with 3.7
million, TSYS with 1.2 million,
Based on the volume from
and MSI with 1.0 million. Prior
credit cards other than Visa
issues: 967, 945, 922, 899, 876,
and MasterCard reported by 82
865, 854
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 merchant acquirers in the u.S. 2011 Ranked by Visa/MasterCard Volume
Bank Cards (V&MC) Other Credit PIN Debit Active Bank Cards (V&MC) Other Credit PIN Debit Active
Rank Volume Trans. Volume Trans. Volume Trans. Merchant Rank Volume Trans. Volume Trans. Volume Trans. Merchant
‘11 ‘10 Company, Headquarters (mil.) Chg. (mil.) (mil.) (mil.) (mil.) (mil.) Outlets ‘11 ‘10 Company, Headquarters (mil.) Chg. (mil.) (mil.) (mil.) (mil.) (mil.) Outlets
1 1 Bank of america (BaMs) Georgia (1) $489,058.6 4% 9,577.2 $54,634.6 694.5 $123,574.3 2,672.0 634,170 51 58 MLs direct Network Alabama $3,029.7 40% 50.7 —— — $449.4 13.4 16,964
2 2 First data Georgia (2) $408,588.0 2% 6,120.4 $15,832.0 280.0 $116,200.0 2,901.0 990,000 52 59 central Payment California $2,886.0 39% 53.4 $252.1 2.9 $346.2 9.4 40,611
3 3 chase Paymentech solutions Texas $398,082.6 18% 6,632.0 $68,562.4 724.0 $43,845.0 844.0 307,000 53 51 Eliot Management Group Utah $2,871.5 2% 32.5 $58.8 0.7 $344.9 3.1 20,000
4 4 vantiv Ohio (3) $218,369.5 10% 4,704.7 $37,463.9 567.2 $194,012.7 4,338.2 401,930 54 53 United Merchant services New Jersey $2,834.6 5% 77.1 $342.9 6.0 $501.4 15.5 20,264
5 5 Elavon Georgia (4) $195,409.9 7% 1,988.1 $23,905.8 140.8 $12,179.1 223.3 844,741 55 54 tIB–the Independent BankersBank Texas $2,795.2 6% 24.5 $316.4 2.9 $146.3 2.6 32,988
6 6 citi Merchant services Illinois (5) $142,185.1 17% 5,828.3 —— — —— — 227,670 56 60 Gravity Payments Washington $2,672.0 32% 44.0 $400.0 0.6 $40.0 2.7 10,500
7 7 Global Payments Georgia $120,587.5 11% 2,000.5 $37,457.9 253.9 $9,086.7 187.1 800,000 57 55 Federated Payments New York $2,575.0 8% 39.7 $317.0 2.0 $314.1 6.4 25,938
8 8 Wells Fargo Merchant services Calif. (6) $120,438.5 14% 1,390.2 $24,280.7 157.7 $13,939.6 231.9 243,147 58 67 Electronic Payments New York (7) $2,400.0 50% 45.0 $500.0 3.7 $161.0 4.5 25,093
9 9 heartland Payment systems N.J. $79,446.4 11% 1,980.9 $12,337.8 135.7 $12,093.9 683.5 245,420 59 64 Elite Merchant solutions California (7) $2,389.0 41% 22.4 —— — —— — 12,100
10 10 tsYs Merchant solutions Nebraska (7) $75,150.1 11% 1,003.2 $13,761.4 98.8 $3,118.6 59.6 322,080 60 56 alpha card services Pennsylvania $2,348.1 0% 43.5 —— — —— — 23,549
11 11 WorldPay Georgia $66,310.2 11% 1,868.0 $13,785.9 235.8 $25,564.2 772.1 159,691 61 57 trisource solutions Iowa $2,279.8 3% 33.0 $82.1 0.9 $58.7 1.1 12,608
12 12 suntrust Merchant services Georgia (5) $32,191.0 8% 427.5 $6,305.9 40.7 $3,449.4 61.9 91,501 62 62 Unified Payments Florida $2,196.5 14% 34.6 —— — —— — 15,541
13 13 PNc Merchant services Pennsylvania (8) $32,085.1 17% 505.9 $7,309.0 54.1 $3,671.0 58.9 114,590 63 63 UMs Banking California $2,137.6 21% 15.8 $29.5 0.5 $57.4 0.6 8,563
14 14 transFirst New York $29,429.8 15% 277.9 $5,877.3 56.3 $866.2 14.3 179,530 64 61 First citizens Bank North Carolina $2,077.7 5% 17.4 $61.3 0.2 $100.1 1.2 14,525
15 18 EvO Merchant services New York $22,774.4 11% 331.7 $4,523.0 31.5 $1,218.9 28.9 267,113 65 65 Bank of hawaii Hawaii $1,729.9 5% 24.3 $335.6 2.7 $287.4 8.2 5,000
16 19 Merrick Bank Utah $22,650.0 19% 351.5 $5,114.5 29.6 $1,601.4 41.5 120,258 66 69 veracity Payment solutions Georgia $1,714.4 20% 17.5 $312.3 1.7 $42.0 1.4 13,214
17 16 Intuit Payment solutions Calif. (7) $22,471.7 8% 176.8 $5,558.6 20.8 $907.8 18.1 341,796 67 66 Electronic Merchant systems Ohio $1,694.4 4% 25.4 $284.0 2.0 $106.0 3.1 17,000
18 15 iPayment Tennessee $22,142.4 0% 333.5 $3,258.4 20.6 $1,356.7 32.9 131,834 68 68 century Bankcard services California $1,667.2 4% 18.1 $52.0 0.3 $81.0 1.8 8,500
19 17 Moneris solutions Illinois $21,800.2 6% 201.2 $3,529.0 22.2 — — 100,864 69 75 Fulton Bank Pennsylvania $1,489.1 61% 13.9 $189.4 1.0 $23.7 0.4 5,679
20 20 Mercury Payment systems Colorado $19,815.2 28% 703.6 $3,924.4 86.2 $1,796.0 56.5 63,662 70 70 First california Bank (EPs) California $1,449.2 4% 17.4 —— — —— — 5,500
21 22 Fidelity Nat’l Info. serv. (FIs) Florida $16,297.5 8% 118.5 $1,111.3 4.1 $325.6 3.8 121,638 71 71 approval Payment solutions Indiana $1,404.7 7% 15.0 $522.5 5.2 $86.5 1.5 11,328
22 23 the Bancorp Bank Delaware $16,200.0 33% 620.0 $80.5 1.2 $100.0 1.2 45,000 72 72 Renaissance associates Texas $1,275.4 1% 11.3 $308.0 1.6 $19.4 0.3 3,800
23 21 Merchant E-solutions California $16,147.0 4% 237.4 $1.0 <0.1 $330.0 5.5 72,000 73 82 clearent Missouri (7) $1,251.0 112% 16.0 $226.6 1.6 $65.3 1.1 11,900
24 25 sovereign/santander Massachusetts (5) $14,949.3 33% 243.1 $2,060.4 21.7 $1,113.2 28.0 71,384 74 77 Meritcard solutions Texas $1,010.0 29% 16.0 $135.2 1.8 $16.5 0.8 3,810
25 24 BB&t North Carolina $12,490.9 10% 154.0 $308.1 2.8 $782.2 13.9 57,379 75 74 People’s United Bank Connecticut $931.7 0% 9.2 $27.5 0.2 $37.7 1.1 5,563
26 26 sage Payment solutions Virginia (9) $12,263.9 10% 133.2 $290.1 2.6 —— — 83,182 76 76 First Merchant Payment systems Florida $928.0 6% 9.7 $163.0 1.2 $2.7 <0.1 3,100
27 27 cynergy data Georgia $11,020.0 0% 241.0 $88.0 1.2 —— — 100,400 77 78 vantage card services Georgia $854.4 10% 11.9 $142.5 1.5 $16.8 0.2 3,240
28 28 First american Payment systems Texas $10,844.1 6% 163.4 $2,852.0 14.7 $1,004.5 23.5 140,844 78 79 columbia Bank Washington $721.8 –3% 8.4 $13.6 0.1 $40.1 0.4 5,189
29 29 MsI Merchant services New Jersey $10,491.8 5% 133.9 $227.4 2.3 $385.5 12.4 115,422 79 80 FirstMerit Bank Ohio $713.8 10% 5.1 $102.7 0.4 $0.4 <0.1 3,481
30 30 North american Bancard Michigan (7) $10,300.0 14% 180.0 $1,755.2 14.5 $830.0 25.1 133,596 80 83 NcMIc Iowa $660.2 19% 8.6 $59.4 0.5 $14.3 0.3 9,983
31 34 Westamerica Bank California (10) $9,851.6 48% 102.1 $2,074.1 76.6 $414.0 8.1 131,591 81 84 First National Bank alaska Alaska $554.6 4% 6.5 —— — —— — 1,740
32 32 total Merchant services Colorado $8,500.0 6% 175.0 —— — —— — 94,000 82 — BluePay (bought Primax) Illinois $517.0 new 3.7 $104.1 0.8 $35.0 0.9 5,200
33 31 Key Merchant services Ohio (11) $8,244.4 –4% 78.6 $829.8 4.6 $251.5 4.2 73,809 83 87 sterling Bank Washington $515.3 13% 6.4 —— — —— — 3,915
34 35 PayPros California $7,834.5 21% 112.1 $1,470.1 11.7 $198.2 4.0 35,975 84 92 complete Merchant solutions Utah $507.1 69% 5.0 $81.7 0.4 $9.7 0.2 2,295
35 33 United Bank card New Jersey $7,359.5 5% 130.8 $1,624.5 12.0 $342.2 11.7 129,211 85 91 Intrix (was Epic Processing) California $500.0 43% 4.0 $263.5 1.7 $3.0 <0.1 2,300
36 38 Element Payment services Arizona $6,219.4 27% 72.0 $1,308.5 8.9 $231.3 3.0 27,803 86 89 First citizens Bank & trust South Carolina $489.2 21% 7.6 —— — —— — 2,700
37 37 commerce Bank Missouri $6,106.1 10% 87.7 $1,195.7 9.5 $150.8 4.7 11,349 87 86 Intrust Bank Kansas $458.7 –1% 8.6 $23.7 0.2 —— — 2,856
38 40 Financial transaction services Ohio $5,135.7 26% 88.7 $853.9 5.9 $325.1 10.2 19,782 88 88 central Bank Missouri $453.0 1% 5.5 $53.5 0.4 $13.6 0.3 3,522
39 39 M&t Bank New York $4,807.2 12% 30.2 $958.9 2.8 $23.8 0.4 15,200 89 98 value Exchange corp. Alabama $409.6 168% 4.8 —— — —— — 2,482
40 36 JetPay Merchant services Texas $4,723.9 –17% 31.2 $2,363.6 7.3 $3.8 0.2 30,000 90 90 arvest Bank Arkansas $383.2 5% 4.0 $18.1 0.1 —— — 4,807
41 41 PowerPay Maine $4,602.2 14% 48.5 $1,071.3 5.9 $46.1 0.9 49,593 91 100 coppermark Bank Oklahoma $214.9 75% 1.9 $19.8 0.1 $0.6 <0.1 1,384
42 47 Priority Payment systems Georgia $4,415.4 39% 57.3 $805.0 7.9 $269.1 5.1 28,862 92 93 Farmers & Merchants Bank of Long Beach Calif. $193.1 –15% 2.2 —— — —— — 1,300
43 43 Merchants’ choice Pymt. sol. Texas $4,150.0 14% 57.0 $775.0 4.7 $290.0 5.1 38,000 93 95 simmons First National Arkansas $175.2 –1% 2.5 $7.7 <0.1 $22.6 0.5 1,708
44 42 Payment alliance Int’l Kentucky $4,078.1 10% 61.0 $696.5 4.1 $158.7 3.3 28,374 94 101 chesapeake Bank Virginia $120.5 0% 1.9 $3.8 <0.1 $1.1 <0.1 695
45 44 BBva compass Alabama $3,596.5 6% 42.2 $129.6 1.0 $142.0 2.5 22,000 Some prior year figures have been restated. Use percent change to compute prior year figures. Figures are net (gross minus chargebacks). Bank Cards = Visa
46 46 First hawaiian Hawaii $3,426.1 8% 30.7 $602.2 4.2 $906.5 16.4 7,415 and MasterCard credit and debit cards. Other Credit Cards = American Express, CUP, Discover, Diners Club, Carte Blanche, JCB, and EBT. (1) First Data owns
47 45 capital One Merchant services Texas $3,409.1 6% 30.2 $901.9 3.6 $82.4 1.4 14,876 51%, Bank of America owns 49%. (2) First Data owned and managed business distinct from alliances/joint ventures. (3) Formerly named Fifth Third Processing
Solutions. (4) Owned by U.S. Bancorp. Does not include joint-venture partnership with Key. (5) Has a revenue sharing alliance with First Data. (6) Wells Fargo
48 48 td Bank New Jersey $3,209.3 5% 31.0 $708.7 3.7 $63.9 1.2 16,854
owns 60% and First Data 40%. (7) Includes some business for which it doesn’t own the merchant contract. (8) First Data owns 40%. (9) Includes some busi-
49 49 Bankcard services California $3,161.0 9% 75.0 $306.0 3.2 $480.0 15.0 21,000 ness for which it doesn’t own the merchant contract, but not a material amount. (10) Formerly listed as Redwood Merchant Services. (11) Elavon owns 51%.
50 50 Newtek Elect. Pymt. Proc. Wisconsin $3,117.1 7% 31.2 $520.2 5.1 $177.7 1.8 14,239 © 2012 The Nilson Report

10 MARCH 2012 ISSUE 990 THE NILSON REPORT If you are being forwarded a copy of this report, you are not an authorized user and must delete the report immediately. Your obtaining an unauthorized copy may violate MARCH 2012 ISSUE 990 THE NILSON REPORT 11
the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.
 Oberthur’s Mobile Initiative
(from page 1)...
Android, BlackBerry, iPhone, moremagic.com, needed to access the Secure
and Symbian devices. Its www.moremagic.com. Prior Elements and NFC controller
customers include mobile issues: 974, 963, 857, 852, 848, in NFC-enabled phones as
network 844, 843, 835, 800, 773, 760 well as to facilitate over-the-
air provisioning and post-
Oberthur wants to
issuance management
deliver secure end-
of payment card
to-end payment OBERTHUR accounts on mobile
and money operates as a devices. Arnaud de La
transfer services to
trusted ser- Chapelle is General
banks and mobile
network operators.
vice manager Manager, Convergence
operators, financial institutions,
In addition to for enabling & Solutions at
content providers, and nfc phones. Oberthur Technologies
its ability to
distributors in more than 60 in Nanterre Cedex,
manufacture and
countries. Pankaj Gulati is CEO France, 33 (1) 4785-
personalize chips
at MoreMagic Solutions in 5400, a.delachapelle@oberthur.
for phones and payment cards,
Newton, Massachusetts, com, www.oberthur.com. Prior
Oberthur operates a Trusted
(617) 244-1598, pankaj@ issues: 989, 985, 983, 981
Service Manager (TSM) service

First Data OfferWise Point-of-Sale Redemption

(from page 1)...
redemption at the point of sale. First Data, the
largest acquirer of payment cards in the world, is
piloting its
OfferWise
program
with several
dozen U.S.
merchants before making it available to all of its
over 4 million U.S. merchant outlets.
Merchants and cardholders must opt in to
OfferWise, which leverages First
Data’s capacity to recognize any
issuer’s (signature-or PIN-based) ... WILL BE
credit or debit card at authorization rollED out
as participating in the program. TO 4+ million
close the loop between how offers are redeemed
when they’re distributed via mobile vs. online.
Both support OfferWise with an analytics engine
to help merchants improve how they target
consumers and make offers to increase the return
on invest. The companies will earn revenue from
the publishers who access the OfferWise API.
Applications available through OfferWise include
the ability to tie a particular payment card to a
merchant’s loyalty program so that customers
can use points to pay for purchases at
checkout, receiving receipts via email,
and linking a merchant’s prepaid card
to a payment card in order to deduct the
prepaid balance before any authorization

First Data’s aim is to give application U.S. OUTLETS. request goes to the payment card
issuer. Sarah Owen is VP, Personalized
developers a level of access to the
Marketing and Loyalty at First Data in
payment card industry that is similar
Atlanta, Georgia, (303) 895-6628, sarah.owen@
to what is available for open system mobile
firstdata.com. www.firstdata.com.
devices. Offers are redeemed in real time at the
merchant’s checkout lane, with confirmation
provided through the payment terminal or via an
SMS text to a smartphone.

A developer’s programming interface and

software development kit for OfferWise has been
built by CardSpring, a startup headed by former
Google and Netscape executives. CardSpring and David Robertson, Publisher
First Data are working together to help publishers march 16, 2012

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report
12 MARCH 2012 ISSUE 990 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of
HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.