TrendWatch 2.0 Q4 2011 Payments System Industry Synopsis Notice: Materials contained in this document are drawn from several media sources and Dorado Industries is not responsible for their accuracy. Opinions expressed herein are presented without warranty. Brand names are the trademarks of their respective service offerors. CARD Act, OD fees gone, Dodd- Frank- Durbin. Lord, what more could go wrong? Wait, is that my mobile phone placing a butt call order on Amazon?
Transcript
TrendWatch 2.0 Q4 2011
Payments System Industry Synopsis
Notice: Materials contained in this document are drawn from several media sources and Dorado Industries is not responsible for their accuracy. Opinions expressed herein are presented without warranty. Brand names are the trademarks of their respective service offerors.
CARD Act, OD fees gone, Dodd- Frank- Durbin. Lord, what more could go wrong? Wait, is that my mobile phone placing a butt call order on Amazon?
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When it rains, it pours. Why? It looks like we’re in for another run of alternative payment providers offering merchant and issuer value propositions designed to tempt consumers away from traditional payments brands, rails, and pricing. We’ve seen this at least twice before. Ten years ago, payments got caught up in the dot-com frenzy and about a half-decade back tokens, bracelets, and tags were attempting to irradiate consumers as they eschewed their leather wallets in favor the bright glowing object of contactless payments. Both of these waves crashed for a variety of reasons and a lot of us were caught short. We think that having a framework for the drivers behind the current wave in alternative payments might help us assess the long-term value they bring and their probability of being successful in their own right and contributors to FI, retailer and network bottom lines. Avoidance of the cost of PCI compliance is the first framework driver, one that impacts all parties to the payments system. Most mobile applications that leverage NFC technology and imbedded Secure Elements target PCI compliance cost avoidance by purporting to deliver a more secure transaction. Narrate’s ultrasonic application for POS transactions claims to be incapable of being skimmed or sniffed. Merchant PCI compliance costs can exceeds tens of millions of dollars for larger retailers making the driver a significant long term player.
Abandonment of MC/V rails comes in second and players like Dwolla and Nacha’s Secure Value Payments system are aggressive enrolling issuers and merchants in an effort to avoid traditional payments pricing models. Unique market vertical focus applied by startups TabbedOut and Rail targets special problems in the leisure and hospitality verticals by promoting the notion that “one size does not fit all.” The fourth driver, elimination of check out lines and POS lanes, seems to be getting the most traction of all. By leveraging mobile phone GPS, on-board camera and scanner technology, and aggregated product data, companies like AisleBuyer, ShopSavvy, and Australia’s QkR are empowering consumers both shop and buy without dealing without cashiers or POS devices, two of retailers’ biggest expense categories.
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SOPA
How many of these offerings will succeed is probably unknowable. Yet, if the drivers in our framework prove to be sound, we could see newcomers take the place of those that fade and perhaps one day we will no longer be burdened by PCI, outdated pricing models, retailer queues, and check out systems that expose us to fraud. In the meantime, non-mainstream retailers may final receive some attention from the payments industry.
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2011 Predictions/Results 4 2012 Predictions 6 TrendWatch Scorecard/Summary 7 2011 Payments Industry Yields 8 Interesting Quarterly News That Got No Respect 9 New Names to Watch 13 Q2 M&A/Investor Activity 14 Useful Links for More Information 20 Back in the Day 21
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• Despite good efforts to the contrary and Visa’s plan to support dual interchange schedules, exempt debit card issuers will suffer major product profitability declines as a consequence of Durbin.
Mar. Won’t know until the end the year. Sit tight. Jun. Fed’s final rules changed things somewhat by raising the floor and putting the industry on notice that big brother will be watching. Sep. Already happening as networks lop off 15-20 basis points here and there while kicking up the small ticket fees. Nobody happy. Dec. Merchant group sues the Fed for not doing its job correctly. If successful, the game really is over.
• A major retailer will take first-mover action to propel mobile payments out of its holding pattern in cottage industry land – doesn’t include early players McDonald’s, Starbucks, Coca Cola, or Jack in the Box.
Mar. Major retailers at the Alternative Payments Systems Innovation conference stated that they wanted lower costs, shorter lines, strong security, dial tone reliability, easy implementation, and low maintenance in mobile payments. A tall order; might not happen this year. Jun. Now that the Fed has reneged on its first Durbin offer, it’s likely that retailers will move on with mobile. Sep. Press releases popping all the time with this or that retailer joining Google or Isis. No full-blown movement yet. Dec. Does the Home Depot/PayPal lash-up count? We think so.
• Isis, the mobile payments consortium, will launch to a lukewarm response. Mar. Didn’t see any skyrockets when Isis announced its 2012 (really?) transportation pilot in Salt Lake City. Jun. Yet another change of direction announced – entering Austin market for pilots. We see the term “flip-flop” being used a lot. Sep. Isis may actually get stronger through its “heads or tails” approach. Google launch delay has allowed time for others to re-think. Dec. Guess we’ll just have to wait for the Salt Lake City light rail/bus experiment to launch in 2012.
• Major retailer profits will grow in the second half of 2011 but we will not be able to cite Durbin as the reason. (And, if the issue is raised, the MPC will brush it off.)
Mar. Waiting to see what happens in Q3 and Q4. Jun. Fed Chairman poured cold water on this prediction. Sep. Heartland’s “Durbin Dollars” report is pretty clever and suggests that the money is flowing in already. Where it’s going isn’t clear. Dec. Several articles and a survey stating that consumers have yet to see better pricing as a result of Durbin. Same results as surveys conducted in Australia. Shouldn’t come as a surprise – 1) major retailers are accountable to shareholders just like banks and 2) product pricing is a function of cost, value and competition; there’s never been a direct causal relationship between lower costs and lower prices.
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• Having lost the pricing advantage between their products and POS debit, two providers of alternative payments schemes will fold or sell out cheap.
Mar. Again tied to the Fed’s final rules – which won’t be ready by April 21 as required. Nice. Jun. Three on a match! FaceCash and Bling Nation shut down to “re-think” their business models. Tempo is both in a ditch and liquidating. Sep. Game over. Dec. Yet new alternative forms of payment keep popping up. 2012 will see a new crop of upstarts and startups.
• Starbucks will selectively open use of its proprietary prepaid card to retail partners. Target, with its 1,000 in-store coffee facilities, might be first.
Mar. Nothing yet but it’s going to happen! Jun. Still waiting; come on guys, it’s the next logical step. Sep. Guys must be using too much of their decaf product. This is a slam dunk, Starbucks! If Facebook can do it with Credits, so can you. Dec. Guess we missed this one. In the meantime, buyers of new Blackberry phones can no longer rely on Starbucks for 2D app support. Bummer!
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• Four new payments schemes designed to maximize mobile phone functionality while eliminating the need for retailer check out lanes will proliferate – two will be launched by merchants, two from third parties.
• CFPB or DOJ will put the buy-here, pay-here segment for automobiles and accessories out of business.
• At least one of the top ten FIs will be merged out. • Congress will turn its back on efforts to repeal Durbin and/or materially alter Dodd-Frank. • American Express will prevail in its suit with DOJ. • By yearend, China UnionPay’s base of cardholders will be 120 percent of Visa’s. • Nokia’s partnership with Microsoft will save it from extinction.
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Market & Industry Situation 1 – The niche players are working the edges hard to avoid irrelevance. 2 – No one seems to have followed Cardtronics’ lead last quarter. 3 – Holiday purchasing exceeded expectations and pumped up card volume. 4 – Folks just can’t get over the fiasco left by Durbin; expect more litigation. 5 – Several bankers like the notion of GPR as an option for younger
demographics. Let’s see if CFPB or FTC get wind of it. 6 – Early advisories suggest better times are ahead for a few; most will be
flat. 7 – Everyone is planning on waiting to see how well the Facebook IPO goes
we think.
Industry Players To Watch The Fed: The regulator needs to take the suit filed by NRF, FMI, and NACS as serious as a heart attack. Congress: New legislation designed to overturn Durbin is well funded and could prevail as the road to the 2012 elections straightens out. CFPB: Not six hours after being anointed by President Obama, Richard Cordray sent out thousands of emails soliciting guidance on which evil-doing mole the agency should whack first. Looks like student loans may top the list but payments can’t be far behind. Apple: Its sheath of patents surrounding Siri contains veiled as well as none-too- subtle references to ATMs, e-commerce, and in-store shopping. But we expected that from Apple, right? Payments Networks of All Types: With the Durbin exclusivity ban kick-in date rapidly approaching, you’ve got to wonder how large the checks being written to FIs and merchants to lock up volume must be. New Technology in Payments: Spurred by a desire to avoid PCI, the hoped-for demise of check out lanes, and simple “shiny objectives in the East” strategies, new payment forms are lining up with retailer verticals.
5. Prepaid Card Growth 4. Legal/Regulatory Issues
1. New Payment Forms
2. ATM Restructuring 3. POS Volume Trend
Med
Low
High
High
Mixed
Med
Low
Positive
Mixed
Negative
6. Earnings Announcements
7. Industry Investments
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Sources: Company releases, Morningstar.com, Bloomberg.com 2011 YTD yield excludes dividends; based on 12/30/11 and 12/31/10 closing prices
Another great quarter for our basket of payments industry equities! While the S&P began and ended the year at 1,257+/- for a zero percent annual return and the Dow struggled to post a 6.0 percent 2011 gain, this payments sector shopping cart added $6.0 billion in cap value before considering Visa and MasterCard gains.
Industry Player 12/31/2010 12/30/2011 Price Cap Value YTD 2011 Yield
• When it started out in 2006 as Firethorn Holdings, the company was focused on leading the financial services industry into the mobile banking frontier. Since being acquired by Qualcomm, the company has moved into consumer management of closed-loop gift cards on its new smartphone platform. Firethon Mobile’s new offering, Swagg, promotes retailer coupons and gift cards through a mobile app as well as admission to swanky events touted by a companion blog site that targets the younger demographic. Discover is working behind the scenes for processing.
Retailers/Legislators Various October/November
• From the “just when we thought the war was over” department. Jason Chaffetz (R-Utah) and Bill Owens (D-NY) introduce legislation designed to repeal the Durbin Amendment. A split second later, the NRF, FMI, and National Association of Convenience Stores file suit against the Federal Reserve Bank Board for its alleged failure to comply the law designed to reduce interchange levels to their lowest possible point. It doesn’t seem likely that these folks are going to settle this over a session of beer and pretzels any time soon.
Google Finextra November
• After giving it the old college try, Google tosses in the towel on its Checkout system and merges it into Google Wallet in an effort to create a single online and offline payment solution. In a corresponding move, The Gap switched to Google Wallet payments in 65 stores in the San Francisco Bay Area, just down the road from Google headquarters. In a classic version of merchant-funded rewards, the retailer is offering a 15 percent discount for purchases made using the G Wallet.
Square BusinessWire November
• Not wanting to outdone by the Girl Scouts, Salvation Army bell ringers launched a program for acceptance of donations to the service’s Red Kettle campaign by credit/debit cards using Square card readers. The campaign kicked off at the Thanksgiving Day game between the Dallas Cowboys and Miami Dolphins in this, the fifteenth year of cooperation between Dallas and the Salvation Army. Hope the program performs better for the Army than the Cowboys did this year (although they did eke out a 20-19 win over Miami.)
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Interesting News This Quarter – Continued Subject Source/Date Substance
Green Dot Paybefore November
• Green Dot does what retailing titans Home Depot and Wal-Mart could not by receiving almost unanimous approval (Governor Elizabeth Duke dissented) from the Fed to complete its acquisition of Bonneville Bancorp, a $36 million (assets) bank based in Provo, Utah. Future plans call for a name change to Green Dot Bank, transitioning Green Dot-branded GPR cards from Synovous (excluding the Wal-Mart/GE Money book of business), and maintenance of cash equal to the amount of insured deposits generated through Green Dot’s GPR card operations.
Visa Finextra November
• Visa makes quick work of leveraging its Fundamo acquisition to launch a prepaid card account targeted at developing countries and their unbanked citizens. Visa plans to roll out the account through mobile network operators, financial institutions, and government agencies across Latin America, Asia, and Africa. It is unclear as yet how much of the new service will be integrated with the card giant’s V.me mobile specification. If any of it moves over, count on someone squawking about disintermediation.
Heartland Payment Systems Business Wire November
• Heartland continues to selectively release analyses of post-Durbin interchange reductions posted by retail verticals. In November, the spotlight fell on restaurant and lodging merchants processed by HPY. Heartland reported that between the Durbin effective date and November 9, 2011 this segment received $7.7 million in savings with restaurant operators receiving the lion’s share to the benefit. Other meaningful data points include: 64 percent of signature debit sales qualified as regulated, the average savings on regulated transactions was $0.20, while the average regulated interchange rate was $0.23.
Openbucks Nilson Report September
• Openbucks is a startup that aspires to straddle the gap between online purchases and unbanked consumers by marrying sellers of closed-loop gift cards with online and digital goods providers. Consumers may now purchase CVS, Subway, Circle K, Hess and Sports Authority gift cards and use them on checkout pages at game sellers’ websites. The Openbucks platform links the selling prepaid card merchants to the online digital content sellers. Funds are transferred via the ACH using Bank of America. Openbucks retains a 15-20 percent commission, potentially exposing it to Durbin or CFPB scrutiny. The Openbucks approach appears to skating dangerously close to creating a payments method that parallels the nationally branded card schemes.
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Interesting News This Quarter – Continued Subject Source/Date Substance
Stop & Shop Supermarket Company
Point of Sale News
• Stop & Shop claims to be the first supermarket to offer up a self-scanning application for smartphones. Scan It! enables shoppers to use bar code scanning technology to create an electronic shopping cart while in one of three stores included in the roll-out pilot. To checkout, the application routes the “cart” via Wi-Fi to the in-store point of sale system where a normal payment is tendered. The same Wi-Fi network enables Stop & Shop to route personalized information and offers back to the shopper.
BankSimple TechCrunch November
• BankSimple shortens its name to Simple and opens its doors to consumers in a limited beta. While not an FDIC insured bank, Simple works with chartered banks to hold deposits gathered from consumers and uses and agent bank to issue its Simple Visa card for purchases. To some degree, Simple operates as a meta-layer over these relationships, crafting and distributing mobile device applications that provide assess to consumer’s deposits and card balances. Simple continues to be proud of its key objective: “build a bank that doesn’t suck.”
Card.io Mobile Payments Today
January
• The market for non-traditional card payment acceptance is starting to get crowded. In addition to category killers Square and Intuit’s GoPayment, there are upstarts like Card.io entering. Card.io offers a smartphone app that utilizes the scanning function built into the phone’s camera to capture card data and initiate a purchase transaction. No merchant services account is required; Card.io charges 3.5 percent plus 30 cents per transaction – a bit steeper than others but the market ought to sort that out.
Viableware Bank Technology News
• Viableware has launched Rail, an at-the-table digital payment terminal designed to alter the current diner payment model. Designed to look like a traditional bill folder, Rail uses a digital touch screen to summarize the charges, accepts magnetic stripe swipes and has NFC capabilities to accept mobile and contactless payments. Rail can also be adapted to accept EMV chip cards. Pretty cool solution for casual and high-end dining establishments. Might also be adapted to handle farmers markets and other open air sites.
Harland Financial Services
Nilson Report December
• Harland joins the P2P fray by offering Direct Payment Exchange (DPX) to the 11,000 financial institutions that use it and its sister company Harland Clarke (the check printer). The entry puts Harland in direct competition with PayPal, Fiserv, ClearXchange and several also-rans. The initial service will feature two-party transactions settled via the ACH; the ultimate objective is to route the transactions through a DPX switch thereby eliminating ACH fees and speeding up transaction settlement. P2P, like other “viral” payments sectors, is starting to look like a grudge match fist-fight. Wonder how many P2P transactions actually post every day.
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• Chevron takes an early lead in the mobile payments acceptance realm for petroleum retailers as it announces a pilot program involving 600 service stations in San Francisco and Los Angeles. Pumps at these sites will use contactless readers to accept Google Wallet transactions. Could have sworn that we were discouraged from using cell phones near service station pumps.
PayPal Mobile Payments Today
December
• PayPal runs a test of its mobile payment application with two retailers in Stockholm over the Christmas holidays. A ski/sports equipment retailer and an electronics outlet agreed to accept PayPal’s new “Instore” app. The app is linked to a tag attached to the phone which is swiped/waved at the POS terminal. Despite the dismissive attitude shown by John Donahoe, CEO of eBay toward NFC, it looks like the PayPal payments gurus may have their day in the sun – but it’s not likely to be in Stockholm at Christmas time.
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Here’s a short discussion on some of the emerging solutions designed to reduce consumer time spent in check out lines – similar to Viableware’s Rail offering cited earlier. These apps make for easy shopping but we miss the chance to thumb through the National Inquirer or pick up a pack of gum. So it goes.
Firm/Product Highlights
Apple EasyPay • In-store self checkout built into the Apple Store mobile app • Use an iPhone to scan items marked for EasyPay checkout • Load up the cart and pay using forms of payment on file in the iTunes cloud
AisleBuyer • Shoppers scan merchandise on their smart phone or browse through the retailer’s catalogue • Payment works by scanning a photo of the shopper’s payment card using the on-board camera • For now, the payment function generates a CNP transaction – a pricey merchant disadvantage
TabbedOut • Designed for restaurants and bars • Allows patrons to close out their tabs and leave a tip from their table • Card information is stored on the diner/drinker’s phone and is transmitted to an in-store server
Chipotle Mobile Application • Enables remote ordering and payments • Payment function is in-app using stored payment type data held in the Chipotle cloud • Patrons order ahead of time and go straight to the pick up order site in their favorite Chipotle
Square Card Case • Card Case owner is recognized upon entering the store using GPS logic • User name serves as transaction initiator • App takes care of the rest
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Buyer/Investor Target Payments Emphasis Possible Strategy VeriFone Global Bay Mobile
Technologies Mobile retail solutions Not content to be constrained by magnetic stripe
payment forms, VeriFone pays an undisclosed amount to expand its position in mobile retail applications. Sandeep Bhanote, Global Bay’s CEO and co-founder will step into the role of VeriFone’s general manager of Mobile Retail Systems.
Visa Europe Monitise plc Mobile banking and payments Visa Europe invests $39.9 million in Monitise plc bringing its ownership share up to 8.8 percent. Monitise, now profitable, will use the added funds to invest in additional markets including India and Asia-Pacific. Meanwhile, Monitise plc is acquiring 51 percent of Monitise Americas for $15 million thereby reducing its joint venture partner’s share to 3.3 percent. Metavante/FIS is the diluting partner.
ShopSavvy Eduardo Saverin Smartphone based payments ShopSavvy’s application which enables product location, research and payment using barcodes has enticed Saverin, a Facebook co-founder ,to invest $7 million in the venture. The application boasts 10 million unique users and partnerships with 40,000 retailers.
American Express Various Payments AXP sets aside $100 million to invest in Silicon Valley startups including those targeting mobile payments and online marketing. Harshul Sanghi, late of Motorola Mobility Ventures because of Google’s snatch of that enterprise will be doling out the cash. Might help AXP forget the money pit it launched called Serve.
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Buyer/Investor Target Payments Emphasis Possible Strategy Richard Branson Square Merchant payments Virgin founder peels off $3 million in loose change and
invests in Square on the heels its $100 million round of Series C funding. 800,000 of those free payment-accepting dongles are now generating $10 million a day in payments. Not needing to have a merchant services account continues to attract smaller retailers in droves.
Public Market Vantiv Payments processor You knew this was coming – the three year anniversary of Advent’s major investment in Vantiv is coming up. Vantiv, fka Fifth Third Processing Solutions, fka Midwest Payment Systems, files for a $100 million IPO. Other shareholders cashing in include Bain and, naturally, the bank.
VeriFone Point Electronic payments processor After the small sip it took with Global Bay, VeriFone takes a deep swig in forward integration terms by acquiring Point, a Euro-based payments and gateway processor for over $1 billion. Once again, the rationale is that VeriFone intends to offer fully integrated payment options over and above its standard line of terminals and other devices. “More M&A activity is foreseen,” says the presser. To say the least.
MasterCard Intel Capital FIS Motorola Mobility
mFoundry Mobile banking and payments The frontrunner in mobile banking applications with over 500 bank and credit union clients attracts $18 million in development funds earmarked for payments-related mobile products aimed at the FI and mobile network operator (MNO) segments. See the pattern here? Visa takes down Fundamo while taking stakes and Monitise and Square while American Express goes after Payfone. MasterCard needed to make a play.
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Buyer/Investor Target Payments Emphasis Possible Strategy Returning investors FrontStream Payments Payment solutions FrontStream is a soup-to-nuts payments acceptance
operation managed by a group of ex-Tier Technologies and Sallie Mae execs. FrontStream raises its total funding to $36 million through another $10 million round. Funds are to be invested in improved operations and sales expansion. Its Fasttransact platform claims to offer an ala carte approach to features and functions for delivery to consumers through its business clients.
CO-OP Financial Services
The Members Group Credit union payments services CO-OP makes a strategic investment in The Members Group in an undisclosed amount. Both parties plan to cross-sell each other’s products. CO-OP brings a huge surcharge-free network of ATMs while TMG offers full-service credit card processing. TMG is both and investor in, and back-end ACH processor for Dwolla, the low-cost payments system headquartered in Iowa. Late breaking news – Union Square Ventures plops down $10 million in Dwolla Series B funding. This is now getting interesting.
General Atlantic DST Global Sequoia Capital
Klarna E-commerce payments Well-heeled investors put up a staggering pre-IPO $155 million to expand M&A activities, grow the footprint, and hire more resources. Klarna’s Euro-centric on-the-fly credit granting payments system is backstopped by Analyzd, an Israeli fraud prevention firm it acquired earlier in 2011. Shoppers are extended short term loans upon purchase while merchants are paid upon receipt of order, a practice referred to as “invoicing.”
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M&A/Alliance Activity - Continued Buyer/Investor Target Payments Emphasis Possible Strategy
Western Union eBillme E-commerce WU acquired eBillme in October but kept it quiet until Payments News outed them in December. No word on pricing or what will become of the management team. The brand, however, will go away. Not a bad idea to rebrand eBillme, an also-ran in the online alternatives marathon. eBillme’s share had declined to 2 percent in 2011 Javelin Research estimates.
Village Ventures Contour Venture Partners Others
Zipmark Digital checkbook Currently in invitation-only beta, Zipmark enables users to pay bills (rent, in particular), pay friends, or pay paper invoices via the web and mobile devices. Investors have ponied up $2 million in VC funds to keep things afloat. The service is a FinTech Innovation Lab finalist in 2011. Pretty clever stuff but “digital checkbook?” Oxymoronic in the extreme.
Saudi Prince Alwaleed bin Talal
Twitter Text based social network Apparent the prince anticipates that Twitter will one day measure up (or down in one case) to its other significant holdings in Apple, News Corp and Citibank. His investment company drops $300 million into the 140 character info sharing network. Turns out Arabic is the fastest growing language on Twitter (who knew?) and the service was the mainstay protest coordination tool from Tunisia to Bahrain in 2011.
Euronet Worldwide PayNet Electronic payments EEFT continues to expand in Europe. Remember when Euronet was named Arkansas Software? PayNet is a relatively small (720 ATMs and 1,700 POS terminals) payments outsourcer based in Romania and recently bought by EEFT. Annual revenues are in the $3 million range.
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Buyer/Investor Target Payments Emphasis Possible Strategy Global Payments CyberSource Online merchant portfolio In a classic game of “love the company, hate its customers,”
Visa sells the 9,000 online merchant relationships it gained when the card company paid $2 billion for CyberSource a while back.
Undisclosed investors Jumio Mobile and online payments Jumio raises $25.5 million in funding on top of the $6.5 million plunked down by Facebook co-founder Eduardo Saverin. Among other products, Jumio offers Netswipe, a digital camera -based method for accepting credit and debit card payments with and without a separate merchant account.
eBay/PayPal Billsafe Purchase-on-invoice processor PayPal continues its global conquest by acquiring the remaining 80 percent share of Billsafe that it did not already own. Billsafe boasts 15 million accounts in Germany where it specializes in purchase-on-invoice payments. P-O-I is a Euro-centric service that enables consumers to make online purchases with delayed payment options. Plans are to integrate the functionality with existing PayPal services abroad and ultimately in the U.S.
Citi Ventures Plastic Jungle Gift card online exchange Plastic Jungle claims there are $41 billion in unredeemed gift cards – essentially a “shadow economy” – that it is attempting to free up through use of its online exchange portal. Users can sell unwanted cards for up to 92 percent of their face value. Citi is a strategic investor in PJ for an undisclosed amount. PJ began as a boot strapped venture over five years ago making it a senior citizen in payments exchange. Prior to the Citi investment, Plastic Jungle had raised $20 million in VC and PE monies.
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Buyer/Investor Target Payments Emphasis Possible Strategy Blumberg Capital ZipZap Cash payments for online
purchases Ever wonder where Art Kranzley, the former MasterCard exec is these days? In addition to other ventures he advises, Art is a Director with ZipZap a stealthy beta-only company based in San Francisco. ZipZap offers a product (Cash Payment) that somehow enables purchasers of online content to pay with cash. Blumberg injected an undisclosed round of funding in December to keep the company growing. Small world.
First National Bank Omaha US Bank
Bank of America
Agent bank credit card portfolios
BofA abandons the agent bank market (which it paid a fortune for when it bought MBNA) and is shedding the portfolios in chunks - US Bank took $700 million while FNB Omaha was satisfied with $285 million.
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So, a bunch of old EFT payments network guys from the Midwest got bored and decided to invite an even older payments consultant to Lake Michigan for a day of fishing. They artificially stock salmon in the lake and these Silvers were on their way back to their original streams to spawn. Unfortunately for them, they didn’t know that home was a hatchery in Kansas and got lost. So it goes.
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