WHAT ARE THE BEST NORTH AMERICAN CREDIT CARD APPS?
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March 2017 Issue 541 www.cardsinternational.com
WHAT ARE THE BEST
NORTH AMERICAN
CREDIT CARD APPS?
The biggest FIs in the region
go head-to-head
• PRODUCTS: Prepaid in Canada
• DISTRIBUTION: ATMs at 50
• GUEST COMMENT: ACI Worldwide
• COUNTRY SURVEYS: The Philippines, Estonia & Cambodia
CI 541.indd 1 06/03/2017 17:01:43
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IE Adverts - 2017.indd 1 21/12/2016 11:53:12
Cards International EDITOR’S LETTER
CONTENTS EDITOR’S LETTER
6 DISTRIBUTION: ATMS AT 50
According to the ATM Industry
Time for credit card issuers
Association (ATMIA), there are
approximately three million ATMs
across the globe. As the self-service
to up their mobile game
kit hits its 50th birthday, Patrick
Brusnahan writes on how the
U
financial mainstay is still developing
K customers are connected in a far more modu- ly of – but as for the rest, how
7 MOBILE: CREDIT CARD APPS
i ncreasi ng ly w i l l i ng lar and component-based way many really good credit card
Canadian and US banks generally
provide a single mobile app for to mu lt i - b a n k , a nd across organisational bounda- account apps are out there?
banking and credit card account already more than a ries. A number of major issuers do
management, and the most half (53%) take their credit Making infrastructure avail- not even offer the most basic
advanced examples also include
fraud prevention. Robin Arnfield card from an alternative to able through standardised inter- account-management features
reviews leading North American their current account provider. faces will be a major trigger for on their mobile banking apps.
issuers’ offerings, and if one single
app is the key to success
Is there scope for credit card new competition, from many Too many banks have taken
issuers to win market share by different sources. the view that they aim for one
10 NEWS: ANALYSIS sharing consumers’ financial Open Banking will give rise to front door in terms of mobile
It is not often that a conference data with third parties in return new business models, with some interaction with the consumer
speaker gets up and delivers a
slating of a host country’s ecosystem for benefits? providers choosing to specialise – one app for all products with
– but that is exactly what happened A report released by PwC, in niche areas rather than offer the credit card added on as an
in Berlin at the Merchant Payment
Ecosystems conference. Anna Milne
Who are you calling a challeng- a traditional suite of products afterthought.
reports er? How competition is improv- or attempt to manage the cus- With annual credit card-
ing customer choice and driving tomer’s end-to-end experience. switching rates in the mid-teens,
11 PRODUCTS: PREPAID IN CANADA
innovation in the UK banking In the credit card sector, how- against the current miserable
While prepaid open-loop and
closed-loop transactions are the market, states that 39% of con- ever, there is much scope for rate of 3% for current accounts,
fastest-growing POS transaction sumers would agree such a deal improvement and optimisation consumers are already more
types in Canada, they still only
account for small proportions of POS
with their financial institution. of the customer experience. The than willing to shop around.
volume and value. But the prepaid Increasingly, retail customers majority of banks do not offer A decent credit card manage-
growth opportunities are significant, are not seeking more full-service separate apps for different prod- ment app is no longer a luxury.
especially in the open-loop segment,
reports Robin Arnfield banks, but rather providers that ucts such as credit cards. Expect issuers to offer apps
specialise in specific products or As customers shift to digital including travel notifications,
14 COUNTRY SURVEY: THE PHILIPPINES
segment needs. channels, issuers will be under the option to block and unblock
16 COUNTRY SURVEY: ESTONIA As the report notes, the pressure to optimise their mobile cards, and personalised rewards.
18 COUNTRY SURVEY: CAMBODIA advent of Open Banking, ena- and online channels to increase Or how about geo-location
20 GUEST COMMENT: ACI WORLDWIDE
bled by technology and regula- conversion rates. controls, enabling cardholders
With a new fast payments ecosystem, tory developments, will be par- Speaking purely as a to say their card can only be
how open is too open? Customers ticularly influential on competi- cardholder and not an editor, used within so many miles of a
will not sacrifice convenience for tive dynamics. the Amex app is outstanding, specific location in proximity to
security, so what is the best way to
strike an effective balance between Supported by a new regula- offering personalised notifica- their smartphone?
the two without sacrificing the tory regime, the initiative means tions for payment and spending We may even see issuers offer-
values of both? ACI Worldwide’s reminders, balance updates and ing an incentive to cardholders
Silvia Mensdorff-Pouilly writes
banks will be able – and required
– to share more customer infor- statements. As a non-customer, prepared to share financial data
mation than ever before. Barclaycard and Capital One with third parties.
This will be achieved via APIs also offer standalone credit card Douglas Blakey
which enable systems to be apps that colleagues speak high- douglas.blakey@cardsinternational.com
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www.cardsinternational.com March 2017 y 1
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NEWS: DIGEST Cards International
DIGITAL
Grameen America, Citi and for over 86,000 low-income female entre- women entrepreneurs through access to capi-
MasterCard to unveil digital preneurs across the US. tal, credit and asset-building services.”
finance platform Citi and MasterCard will support the The upgrades includes the disbursement of
deployment of cloud-based management reloadable MasterCard cards issued by Citi
information system infrastructure to mod- Prepaid Services. These will be used by Gra-
ernise and boost Grameen America’s opera- meen America to provide microloans to its
tional capacity. members.
Grameen America will be able to standard- MasterCard’s president of the centre
ise and modernise its back-office processes, for inclusive growth, Shamina Singh, said:
achieve better efficiency, scale services, and “Connecting people to the networks that
launch new features. power the modern world will unlock their
Grameen America president and CEO economic potential and continue a cycle of
Andrea Jung said: “Solving the need for digi- equitable economic growth and poverty
tal banking services among low-income com- reduction.
Microfinance organisation Grameen Ameri- munities in the US is a pressing priority. “Working with Grameen America, we are
ca has partnered with Citi and MasterCard “This collaboration represents a perfect glad to join a partnership that will advance
to launch a range of fintech solutions to pro- marriage of the key players in technology and economic mobility through entrepreneurship
mote digital financial access and inclusion financial services, coming together to empower in the US.”<
STRATEGY DISTRIBUTION PRODUCTS
HNB, UnionPay agree to accept Doha Bank, MasterCard to offer CIBC FirstCaribbean to issue
card payments in Sri Lanka payment solutions in Qatar contactless cards
Hatton National Bank (HNB), a Sri Lankan Doha Bank and MasterCard have signed a CIBC FirstCaribbean International
lender, has teamed up with UnionPay Inter- long-term agreement to launch a range of Bank has decided to issue chip-and-PIN
national to accept card payments. payment solutions, including remittance contactless debit and credit cards for its Visa
The contract will enable Sri Lankan mer- offerings and contactless payments, in Qatar. cardholders.
chants which use HNB’s POS devices to According to Doha Bank, the agreement CIBC FirstCaribbean’s MD of customer
accept UnionPay cards. will enable both partners to provide innova- relationship management and strategy, Tre-
HNB senior manager of card centre tive products to the country’s workforce. vor Torzsas, believes the development is a
Roshantha Jayatunge commented: “By The new initiative backs efforts by the ‘significant milestone’ as it increases ease of
moving proactively to partner with Union- Ministry of Labour and Social Affairs, and use for small purchases while maintaining
Pay International, we believe HNB has taken Qatar Central Banks to provide a safe work- security.
a vital first step towards further integrating ing environment for workers, while ensuring Torzsas said: “We’ve introduced a series
Sri Lanka into the international economic wages are electronically transferred to their of innovations to our services, including our
system.” bank accounts. very popular Mobile Banking app, to give
UnionPay International senior head of Commenting on the agreement, Doha our clients more choice in how they bank
South Asia Derek Chang said: “We are Bank group CEO Raghavan Seetharaman and make payments. The app is performing
delighted to be partnering with HNB. Sri said: “Our partnership serves to bring the beyond our expectations.
Lanka is an important market for UnionPay best card products to our growing customer “We now have a banking solution to fit
International in South Asia. base and is in line with Doha Bank’s strat- everyone’s lifestyle, and our smart cards will
“We are uniquely positioned and ready egy to deliver the utmost value to employ- provide our cardholders additional com-
to contribute to the growth of the tour- ers and payroll customers within the entire fort that they can make payments in a safe,
ism industry by providing travellers with a framework of the Wages Protection System secure, yet flexible manner. Security is para-
secure and easy payment option.”< implementation.”< mount to our client base.”<
DIGITAL
Vibe, WEX sign virtual payments
agreement which allows automated supplier payments
in 24 currencies worldwide.
US-based payment technology firm WEX WEX Europe commercial director for vir-
has signed an agreement with Vibe Systems tual payments Ian Johnson said: “Our aim is
to combine travel technology and payments to make our payment solutions available to
for a better supplier payment experience. the travel industry, regardless of the systems
Vibe provides advanced front- and mid- they already use.”
office technology to travel businesses, includ- Vibe group e-commerce director Martin
ing online travel agencies, retail agencies, Eade said: “We are delighted to offer our cli-
travel management companies and consoli- ents the ability to enable WEX payment solu-
dators. tions on their Vibe online booking platform.
WEX’s virtual debit, prepaid and credit “Combining WEX’s payment expertise
cards will be directly integrated with either with Vibe’s technology is an exciting pros-
pre- or credit funding into the Vibe platform, pect and one we are excited to continue.”<
2 y March 2017 www. cardsinternational.com
CI 541.indd 2 06/03/2017 17:01:54
Cards International NEWS: DIGEST
RESEARCH
Visa launches new innovation through which Visa aims to ‘excite and create new, secure ways to pay’.
centre in London engage visitors’, including applications relat- Visa executive vice-president for innova-
ed to the Internet of Things in connected car tion and strategic partnerships Jim McCarthy
Visa has opened a new innovation centre in and home environments. said: “What makes the approach we take in
London, where the company will work with According to Visa: “Visitors will experi- our innovation centres unique is that they’re
financial institutions, merchants and other ence the future of retail using virtual reality all about collaborating with clients to solve
partners to develop the next generation of to pick just the right seat for an upcoming real-world consumer pain points or business
payment solutions. Formula E race and biometric authentication problems using digital solutions.”
The 1,000m2 facility is located at Visa’s to pay for tickets.” The new facility joins a global network
European headquarters in Paddington Basin. Coinciding with the opening of the cen- of innovation centres and studios located in
It is described as the largest of Visa’s global tre, Visa announced that fintech develop- technology hotspots, including Berlin, Dubai,
network of innovation centres. ers across Europe will now be able to take Miami, San Francisco, Singapore, São Paulo
It features practical demonstrations advantage of the Visa Developer Platform ‘to and Tel Aviv. <
MOBILE
UnionPay launches mobile
QuickPass in Hong Kong
UnionPay International has debuted Union-
Pay mobile QuickPass products in Hong
Kong, in collaboration with Bank of China
(Hong Kong).
The move follows the issuance of Union-
Pay HCE mobile QuickPass products in
Macau and South Korea. Cardholders can
now link mobile phones with UnionPay
dual-currency credit cards issued by Bank
of China to make daily transactions by
mobile phone. phone, wearable devices and UnionPay chip 20,000 POS terminals in Hong Kong by mer-
UnionPay said its mobile QuickPass facil- cards, as well as online mobile payments. chants such as Sogo, 7-Eleven, Mannings,
ity supports offline payments with smart- Mobile QuickPass is currently accepted at and Tsui Wah Restaurant. <
STRATEGY
Barclaycard, TMC sign fuel card The new programme integrates a fuel with Centrica, providing a fuel programme
agreement with Centrica expenses Barclaycard with accurate, audited that will not only be simpler for their drivers
mileage and comprehensive manage- and fleet managers but will also help the
Barclaycard Commercial Payments has ment information. business reduce its fuel costs.
secured a contract from Centrica – the par- In association with TMC, the “Securing this contract really
ent company of British Gas – to offer a single Barclaycard Fuel+ features chip & demonstrates the value of the
fuel card programme for its van and car fleets PIN security and Visa acceptance, Barclaycard Fuel+ in association
in collaboration with TMC, allowing Centrica drivers to refuel with TMC proposition for larger
The contract, which was awarded after a at virtually any petrol forecourt in fleets.”
competitive tender process, runs for three the UK. Centrica head of fleet Steve Winter
years, providing Centrica with a single fuel Barclaycard head of multinational said: “Barclaycard Fuel+ in association
programme for both its commercial and corporate business Michael Pechner com- with TMC is an exciting opportunity to take
company car fleets. mented: “We are delighted to be working our fuel programme to the next level.”<
STRATEGY
JCB becomes principal member versal card payment standards through new payment networks utilising SEPA-compliant
of nexo Standards protocols and the implementation of speci- terminals.
fications with integrated retail and terminal It also delivers a one-stop-shop for EMV
JCB International, a subsidiary of Japan- management systems. and SEPA -compliant terminal testing,
headquartered JCB, has become a princi- As a principal member, JCB will confirm decreasing the risk of interoperability obsta-
pal member of nexo Standards in its card that its technical requirements are supported cles emerging between payment applications,
schemes category. by nexo protocols, with a particular focus on and thereby promoting an open market for
Headquartered in Brussels, nexo Standards the nexo-Fast suite of specifications. EMV and SEPA terminals.
is the open standards association dedicated The specifications offer a clear description The move means that payment acceptors,
to the creation of implementation specifica- of the application on an EMV chip-and-PIN processors, payment service providers and
tions for card payment acceptance. payment terminal which provides compli- vendors will now be able to implement JCB
It works on behalf of all card stakeholders ance with the European Payments Council's contact and contactless transaction kernels
to harmonise payment acceptance. The asso- SEPA cards framework. nexo-FAST allows into their EMV and SEPA compliant termi-
ciation is developing a new generation of uni- a uniform transaction user experience on all nals, as specified by nexo-Fast. <
www.cardsinternational.com March 2017 y 3
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NEWS: DIGEST Cards International
REGULATION
Allpay’s cards pass Visa’s ment of the cards, access control, HR train- The original building will be modernised to
physical audit ing, credit and police checks. incorporate a larger manufacturing layout.
The audit follows a £1m ($1.2m) Hologram, chip embedding and card
UK-based payment specialist investment into the UK payment -inspection machinery will enable Allpay to
Allpay has passed the annual specialist’s design and produc- create custom-designed cards for clients.
physical audit of its card- tion facilities. New hires include a production planner
manufacturing bureau car- With the investment, Allpay and stock controller, a manufacturing and
ried out by Visa towards the obtained a new building, the bureau operation manager, and a new direc-
end of 2016. latest equipment, and expand- tor, Ceri Davies.
Against the highest stand- ed its card manufacturing Allpay head of card manufacturing and
ards of PCI Compliance, the team from 24 to 49 staff over a bureau operations Jamie Taylor said: “We
annual physical audit assessed 12-month period. are delighted with the near-perfect score
various security factors with regards Currently, the bureau facility is awarded to our card-manufacturing bureau,
to the building, physical control and move- operating from a new purpose-built building. following its annual physical audit.”<
MOBILE
MasterCard to empower MasterCard aims to foster a higher level of checkout with a smartphone, or by entering
150,000 Kenyan merchants with inclusion for MSMEs in East Africa through a merchant identifier code.
MasterPass QR the digital payment initiative. MasterCard division president for Sub-
The regional commitment to impact over Saharan Africa, and head of financial inclu-
MasterCard has committed to provide its 150,000 MSMEs in Kenya is part of Master- sion for international markets Daniel Mone-
MasterPass QR secure digital payment solu- Card’s global goal of connecting 40 million hin said: “Kenyans are entrepreneurial by
tion to more than 150,000 micro, small and micro and small merchants to its electronic nature and there are incredibly exciting busi-
medium-sized enterprises (MSMEs) in Kenya payment network by the end of 2020 – a ness ideas coming from the region.
during 2017. goal that MasterCard hopes it will be able to “We want to help business owners to grow
The mobile-driven person-to-merchant achieve before that date. and prosper by delivering solutions that meet
(P2M) payment solution will be launched Consumers can pay for in-store purchas- their needs. To this end we feel that Master-
through numerous financial institutions. es by scanning a QR code displayed at the Card’s commitment is a valuable one.”<
STRATEGY SECURITY SECURITY
Visa partners with IBM for POS MePIN launches biometric Santander UK enables payments
solution extensions to curb online fraud through voice command
Visa has collaborated with tech giant IBM Finland-based MePIN/Meontrust has intro- Santander UK has launched a feature on its
to incorporate POS solutions and commerce duced additional biometric authentication mobile app to allow users to authorise pay-
into any device, including watches and rings, options to its MePIN Universal Authentica- ments using voice commands.
using IBM’s Watson Internet of Things (IoT) tion platform. As well as enabling fund transfers, the new
platform. The new Human Recognition and User voice-recognition technology will also allow
Through the platform, businesses will Recognition authentication policies can be users to check balances, and report lost or
be able to connect to billions of connected used alongside traditional authentication stolen cards.
devices, sensors and systems wherever Visa methods. The technology is currently in the process
is accepted. The solution is currently used by The provider claims the new policies of being piloted on the iOS version of the
more than 6,000 IBM clients. extend the existing MePIN Public Key Infra- bank’s SmartBank app.
The partnership will allow companies to structure-based non-repudiation without Santander’s head of technology inno-
incorporate secure payments into various affecting the user experience. vation, Ed Metzger, said: “The worlds of
product lines using the Visa Token Service, MePIN/Meontrust CEO Markku Mehtala technology and banking continue to evolve
a technology that replaces sensitive account told Cards International: “Card-not-present at pace, working hand in hand to deliver a
information found on payment cards with a fraud has not been solved with clumsy friction-free user experience.
unique digital identifier. authentication solutions. “We are excited to be the first UK high
IBM Watson IoT general manager Har- “MePIN provides non-repudiation for street bank to enable customers to make
riet Green said: “IoT is literally changing transactions while minimising the friction of payments using just their voice, offering
the world around us, whether it’s allowing authentication. them another channel of choice in how they
businesses to achieve unimaginable levels of “It is important that consumer privacy is wish to bank.
efficiency or enabling a washing machine to not forgotten. Face recognition must be used “Appetite for simple, intuitive banking
ensure we never run out of detergent. wisely,” Mehtala continued. solutions has grown,” Metzger continued.
“This combination of IBM’s IoT technol- Available as a software development kit, “This pioneering technology has huge
ogies with Visa payment services signifies the MePIN biometric solution can be inte- potential to become an integral part of the
the next defining moment in commerce, by grated by the payment card issuers or pay- future banking experience, playing a trans-
allowing payments on any connected object ment service providers into mobile apps, or formational role in the industry and redefin-
with new levels of simplicity and conveni- used as a template to launch new payment ing how customers choose to manage their
ence,” Green added. < security apps.< money.”<
4 y March 2017 www. cardsinternational.com
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Cards International NEWS: DIGEST
DIGITAL PRODUCTS MOBILE
Billtrust unveils Virtual Card Yes Bank launches NFC-enabled MTS introduces new mobile
Capture for automated virtual debit cards for contactless wallet to integrate payment
credit card acceptance payments solutions
India’s Yes Bank has launched its latest range Russia-based Mobile TeleSystems (MTS) has
of NFC-enabled debit cards. launched its latest mobile wallet with ‘easy
Yes Prosperity and Yes First have, accord- one-click access’ to its financial services.
ing to the bank, been ‘designed around the The MTS Money Wallet combines all pay-
specific needs of debit card customers’. ment tools on a single platform, and custom-
The Yes Prosperity card range features ers have the option to make payments and
Payment cycle management firm Billtrust the Yes Prosperity Titanium, Titanium Plus, transfer money from the e-wallet by smart-
has launched the Virtual Card Capture ser- Platinum and Rupay Platinum debit cards, phone.
vice to improve efficiency and automate the whereas the Yes First range comprises the All MTS Money Wallet users will be auto-
cash application process for email credit Yes First World debit card. matically enrolled onto the MTS Bonus
card payments. The bank has also introduced two cards programme, which offers loyalty points and
The solution claims to address a grow- on India’s domestic card payment network, access to exclusive offers and discounts.
ing problem for account departments that Rupay. MTS vice-president for strategy and mar-
receive payments by email using virtual Cardholders can earn reward points on keting Vasyl Latsanych said: “Today we
credit cards from buyers. These are not only all expenditure, and benefit from access to are entering into a new era of mobile and
costly to manage, but also create a burden Yes InControl, which it operates through financial services. We created the unified
for organisations with limited resources. MasterCard, allowing users to set custom- ecosystem, which will become a convenient,
Payment instructions sent by banks and ised spending limits for different locations transparent, and secure alternative for cash
accounts payable platforms are rerouted to and categories. and bank cards.
Billtrust for processing through Virtual Card Yes Bank senior group president for retail “The initial functions included in the ser-
Capture. and business banking Pralay Modal said: vice only mark the beginning of our journey.
Funds are deposited into a supplier’s bank “Our debit card portfolio has been designed We will combine all possible payment solu-
the following business day, and remittances to offer superior features and benefits to our tions with leading loyalty programmes.
are consolidated for all payment sources and valued customers. “We believe that cash and cards will
matched to open invoices. “The launch will augment our efforts become redundant in the near future. All
The new solution claims to reduce the towards encouraging customers to move we’ll need for comfortable communications
burden of acceptance of virtual credit cards, towards a cashless economy. Digitalistion is and financial management is a smartphone.
which was previously a manual process. < the future, but cards are the present.” < We want to give people the future today.” <
DISTRIBUTION
Barclaycard signs new payments million contactless transactions to date – in 10 pay-as-you-go journeys on London’s
agreement with TfL covering journeys made by bus, Tube, tram, buses, Tube and rail services.
Docklands Light Railway, London Over- Commenting on the extension, TfL chief
Barclaycard has extended its contract to offer ground, TfL Rail, Emirates Air Lines, River technology officer Shashi Verma said:
contactless payment solutions to Transport Bus and most of London’s daily National “Contactless payments have completely
for London (TfL) for another seven years, Rail services. transformed the way people pay for travel
with the option to extend the agreement for The contract extension will enable in London, with more than 800 million jour-
a further three years. Barclaycard to support the introduction of neys already made and around 1.8 million
TfL and Barclaycard have been working the new Elizabeth line, while assisting the journeys being made every day.
together for more than 20 years and have launch of contactless payments for train “This new 10-year contract will help
transformed how users pay for travel across travel beyond London. ensure these numbers continue to grow while
the UK’s capital. As TfL’s merchant acquirer, According to Barclaycard, contactless also providing support to allow us to develop
Barclaycard has processed more than 278 transactions currently represent almost four our ticketing system.”<
MOBILE
BharatQR payments launched in issuing cards and establishing expensive POS
India terminals and infrastructure’.
Customers of any bank can use a smart-
BharatQR, a common quick response (QR) phone to make payments through the app by
code that allows consumers with debit or scanning the relevant QR code at the POS
credit cards to pay directly from a phone by and entering the transaction amount.
scanning a QR code, has been launched in Once authorised, the amount is transferred
India. directly from the customer’s account to the
The new payment system was developed merchant’s account.
by MasterCard, Visa, American Express and Leading Indian financial institutions,
the National Payment Corporation of India, BharatQR aims to reduce the country’s including Axis Bank, Bank of Baroda, Bank
which is responsible for operating the RuPay dependency on cards, with a goal of help- of India and HDFC Bank, all currently sup-
card network. ing to ‘disrupt the card network’s business of port the new app. <
www.cardsinternational.com March 2017 y 5
CI 541.indd 5 06/03/2017 17:02:06
DISTRIBUTION: ATMS AT 50 Cards International
Fifty years on, the ATM is still developing
Inaugurated by comedy actor Reg Varney in 1967, the ATM is still with us; according to the ATM Industry
Association (ATMIA), there are approximately three million ATMs currently in operation across the world.
However, one of the mainstays of modern banking is not resting on its laurels. Patrick Brusnahan writes
L
aunched by Barclays in its Enfield
Town branch, the automated tell-
er machine (ATM) has gone from
st reng th to st reng t h. From si m-
ple withdrawals to deposits to security
checks, features are constantly added
to the service. Some say the right ATM
could even replace a branch.
NCR has launched the SelfServ 80 Series of
ATMs which are set to do just that. Accord-
ing to the firm, it will ‘redefine the banking
experience and change the way consumers
interact with the ATM forever’. Hefty claims.
Rachel Nash, director for financial services
at NCR, tells CI: “The new 80 Series fam-
ily is really quite groundbreaking in terms of
how we can deliver services to consumers.
Just from an aesthetic feel, it’s very modern
and tablet-like, not your typical old grey
box, which really does fit into what custom-
ers expect from a digital experience and how
they want to interact and transact with every
organisation.”
Video banking
Features of the new hardware include an
advanced 19-inch multi-touch display and be very convenient for people to pop into a started to interact in that space has changed
built-in video banking. This will be crucial if branch, even when one isn’t there. how they wanted to interact in our space. It’s
the ATM is to replace branches, as research “In some cases, absolutely, if they want another digital touchpoint,” Nash continues.
from NCR states that 80% of the transac- to go to a full-service branch, they should. One of the biggest lessons we learned is
tions completed inside a physical branch We’re not saying one solution fits everything, that the change in mainstream consumer
would be a more complete experience if a we’re just providing a flexible platform that technology is impacting the solutions we
live video teller had a presence at an ATM. allows different types of format and deploy- deliver to market.”<
“What we’re really trying to think about is ment to suit the customers’ needs.”
how we can reposition self-service as part of Is the ATM takeover imminent? Not as
the whole experience. You may have a cus- soon as one might think, as there are issues Extreme locations
tomer that is perfectly happy to serve them- with wide-scale deployment. “We do have a
selves and interact in a 100% self-service lot of legacy across the globe. An organisa- As part its celebration of the 50th
way, and this enables that,” Nash explains. tion is not going to replace everything over- anniversary of the ATM, the ATMIA collated
“But there may be a time they might need night; it is going to be gradual,” notes Nash. some of the most extreme ATM locations:
local and in-person assistance, which is part So how has the ATM changed in the last
• The Antarctic ATM is located inside the
of the tablet banking solution, to alert a 50 years? Nash concludes: “Things that we
McMurdo Station near the South Pole.
member of staff to their call for remote assis- have tried in the past, such as video bank-
tance. These aren’t bolt-ons as they have ing, were cumbersome, clunky and difficult • A desert ATM in the Australian Outback
been in the past. It has helped streamline the to implement. is accessible only via Aboriginal
way staff members help customers.” “Now, advancements in technology mean tracks. On average it completes 500
withdrawals and 200 balance inquiries
One problem with an ATM replacing a we can incorporate mainstream technology
each month.
branch is that if customers want branch ser- across all platforms.
vices, they would surely visit a branch. Nash “The other thing we’ve seen is that none • An ATM in Sust, Pakistan is located
says: “I can see a branch-in-a-box-type envi- of us ever envisioned the idea of an iPhone, 2,375m above sea level, in sub-zero
ronment working in a retail outlet. It would a touchscreen in your hand. How customers conditions. <
6 y March 2017 www. cardsinternational.com
CI 541.indd 6 06/03/2017 17:02:08
Cards International MOBILE: CREDIT CARD APPS
Which North American credit card app
would make it onto your homepage?
Canadian and US banks generally provide a single mobile app for banking and credit card account
management, and the most advanced examples also include fraud prevention. Robin Arnfield reviews
leading North American issuers’ offerings, and their key features and innovations
“W
hen the mobile channel was Mobile card applications ware vendors have yet to catch on to includ-
first introduced, there was In her Aite Group report, US Credit Card ing card controls in their apps.”
a lot of d iscussion a mong Issuers’ Digital Account-Opening Processes, However, Malauzai has offered credit and
North American banks about Montez says most US credit card issuers have debit card control functionality within its
whether they should have standalone the basic foundational capability to accept mobile banking app for the last four years.
apps for different products,” says Tiffani online credit card applications, collecting the “The first generation of card control soft-
Montez, senior analyst at US-based Aite data required for the application, verifying ware just integrated with a bank’s core bank-
Group. applicants’ identity, and presenting disclo- ing system,” says Gaynor.
“Those credit card issuers that also have sures, and ensuring applicants qualify for a “Our software now offers integration with
other banking products primarily want one specific card. the card networks and processors for more
front door in terms of the mobile interaction “Aite Group’s assessment of the mobile effective controls. We find that around 15%
with the consumer. application shows the overall immaturity of of our clients’ active mobile bankers go in to
“Consequently, most US banks and credit the account-opening process,” Montez out- the card control module at some point each
unions don’t have separate apps for different lines in her report. month.”
products such as credit cards, mortgages or “Most mobile application experiences mir- Gaynor says Malauzai’s US banking and
chequeing accounts,” Montez continues. ror online application experience and, at this credit union clients are not using his firm’s
“It’s just one mobile app with access to all point, use few of the phone’s native features mobile banking and card control app yet for
accounts, depending on the type of relation- to optimise the experience.” credit cards. “Half of our 450 clients have
ship a customer has with that financial insti- Montez believes that, over the next rolled out debit card controls using our app,”
tution. few years, as customers increasingly shift he notes. “But it can definitely be used for
“Generally, the apps let cardholders obtain towards digital channels from branches and credit card controls.
balance information, make bill payments, see call centres, credit card issuers will be under “A useful feature which we offer is geo-
purchase information, view rewards, and pressure to optimise their mobile and online location controls, which allow cardholders
track spending. Some issuers, such as Capital channels to increase conversion rates. to say that their card can only be used within
One, have apps that allow you to view your a 10-mile radius of a particular location.
credit score.” Card fraud prevention apps Customers can also use our GPS control to
Montez expects issuers to increasingly Visa, MasterCard and major US card proces- specify that their card has to be used in prox-
offer more mobile-first credit card account- sors such as Vantiv offer standalone credit imity to their smartphone.
management features in their apps, instead and debit card control apps for issuers to “But we don’t see much uptake of that as
of just replicating features provided in their provide to their customers to prevent fraud. it’s heavy on phone batteries. Our most heav-
online services, given that customers always A key provider of card control software to ily used control feature is turning a card off
have their smartphone with them. the processors is US-based Ondot Systems. when it isn’t in use to prevent fraud.”
“For example, they are starting to intro- “Hundreds of US financial institutions are Gaynor notes that none of his firm’s cli-
duce the ability for cardholders to provide rolling out these standalone apps to their ents have asked them to provide a standalone
travel notifications, receive spending alerts, cardholders,” says Robb Gaynor, chief prod- app for card controls.
set spending thresholds, freeze and unfreeze uct officer at US-based mobile banking app “There’s a big question mark as to whether
cards, and report lost or stolen cards via vendor Malauzai Software. “The reason for standalone card controls make sense and as
mobile,” she says. this is that many of the mobile banking soft- to whether consumers will want a separate
www.cardsinternational.com March 2017 y 7
CI 541.indd 7 06/03/2017 17:02:10
MOBILE: CREDIT CARDS APPS Cards International
app for controlling their cards’ usage,” he
says. “Standalone is a strategy the banks and
credit unions are forced to pursue because
mobile banking vendors are behind. The
standalone phenomenon will be short-lived
as mobile banking vendors will build the nec-
essary card controls into their apps.”
Market research data
According to Lynda Lovett and Mary-
Anne Huestis of Canadian financial market
research firm MarketSense, 52% of Cana-
dian credit cardholders have downloaded
a mobile banking app, up five percentage
points from a year ago.
“Incidence is highest for TD with 12% of
cardholders, and Royal Bank of Canada
(11%), followed by CIBC (8%), ‘any credit
union’ (7%), BMO Bank of Montreal (7%),
Scotiabank (7%), Desjardins Group (7%),
and Scotiabank’s direct banking subsidiary:
Tangerine (7%).”
According to MarketSense, 48% of Cana-
dian survey respondents are interested in
❙❙Citi’s dispute-resolution feature: step one
using smartphones to redeem rewards, and
32% to book travel. “Both measures are sta-
ble over last year,” Lovett and Huestis say. customers when they are spending more, the free Fico [Fair Isaac Co.] scores and intro-
A survey of 3,000 US adults in June 2016 same, or less than usual. duced the ability to manage card rewards on
for Mercator Advisory Group’s US Con- Desjardins offers the InstaBalance feature mobile.”
sumers and Credit: Young Adults Return to which lets credit cardholders view balances BankAmeriDeals offers up to 15%
Credit Card Use report found that 47% of without having to log into the Quebec-based cashback when customers make purchases at
US smartphone and tablet owners indicated cooperative financial institution’s AccèsD selected retailers with BofA debit and credit
interest in mobile-enabled credit card fraud- mobile banking app. InstaBalance provides cards.
prevention controls, up from 44% in 2015 budget information such as maximum and
and 41% in 2014. Interest was highest in the minimum account limits and goals in graphi- Capital One Canada
25-34 age group, with 67% in this segment cal form. “Our team of over 80 Toronto-based soft-
indicating interest in 2016. ware studio associates aims to open up new
“We asked smartphone and tablet owners American Express Canada digital possibilities for customers to man-
if they would be interested in a new mobile “American Express Canada is focused on age their accounts,” a Capital One Canada
app from their issuer enabling them to con- reaching its mobile-first customers via the spokesperson says.
trol how and when their credit cards can be Amex App,” an Amex Canada spokesper- “Via our mobile banking app for iOS and
used, either to limit spending or avoid fraud, son tells CI. Android smartphones, Capital One Canada
by setting limits by dollar amount, location “In September 2016, we launched Use customers can view their credit card transac-
of the phone, or shopping category, that Points for Purchases, which lets cardmembers tions, check their balance and available cred-
can be turned on and off in real time,” says redeem points towards purchases made on it, see payment due dates and minimum pay-
Karen Augustine, Mercator’s manager, pri- an eligible American Express card via the ment required, view their credit card rewards,
mary data services. Amex Mobile App.” and contact customer service within the app.”
The Amex App offers personalised notifi- Capital One Canada’s mobile app recently
PFM tools cations for payment and spending reminders, added push notifications sending real-time
Several issuers provide credit cardholders such as payment due, balance updates and alerts to customers’ phones providing details
with personal financial management (PFM) statement ready. such as transaction amount and merchant;
tools to help with budgeting. and multi-factor authentication for security
CIBC offers the Personal Spend Manager Bank of America (BofA) verification.
tool which lets credit cardholders monitor “Credit card account management is built The app offers Live Chat and Second Look,
spending, set budgets and create alerts. Cur- into BofA’s mobile banking app,” a BofA which sends an automatic email alert when
rently, CIBC’s Personal Spend Manager is spokesperson says. a potential mistake is identified on a custom-
only available to online banking users. “Our newest feature is a spending and er’s account, such as a duplicate charge.
TD offers the TD MySpend app for its budgeting tool that tracks spending on cus-
bank account and credit card holders, which tomers’ BofA deposit accounts and cards, Citi
is based on PFM software from US-based fin- and helps them create budgets. In 2016, Citi launched 86 digital features in
tech Moven. TD’s MySpend offers real-time We recently enhanced our BankAmeri- the Citi mobile banking app, including Quick
notifications and virtual receipts and uses Deals program to show deals based on the Lock, which enables cardholders to lock and
red, yellow and green traffic lights to warn customer’s location. Last year, we rolled out unlock cards, file a dispute in-app, and track
8 y March 2017 www. cardsinternational.com
CI 541.indd 8 06/03/2017 17:02:11Cards International MOBILE: CREDIT CARD APPS
a replacement card. “As a result, in 2016
alone, North America mobile app custom-
ers grew by 50% and mobile app downloads
doubled,” a Citi spokesperson says. “We saw
over 3.25 million downloads in 2016.”
“Our ultimate goal is enabling the entire
customer experience – including everything
that a customer can do right now by phone
or in the branch – in mobile,” Alice Milligan,
chief customer and digital experience officer
for Citi Global Cards and Consumer Services,
tells CI.
Since January 2017, US Citi customers
have been able to scan their credit cards
using their mobile device’s camera in the
Citi Mobile App, instead of having to manu-
ally enter their 16-digit card number for
activation. Citi says it is the only major US
credit card issuer to offer the ability to scan
embossed and non-embossed credit cards
within a mobile app.
Other features offered by the Citi Mobile
App include the managing of replacement
cards, Fico scores, redeeming rewards, tem-
porarily locking and unlocking accounts,
and setting up alerts.
National Bank of Canada
“All credit card account management features
are offered in our mobile banking app, which
people who only have a credit card with us
can also use,” says Joel Pomerleau, National
Bank of Canada’s senior manager of digital
channel support and transformation.
“There’s no standalone credit card account-
management app. Features offered include
balance, transaction history, the ability to
off pay card balance, set transaction limits,
advise the bank when one is going abroad,
❙❙Citi’s dispute-resolution feature: step two
cash in points, cashback and loyalty points
balance. “Credit card accounts are much easier to ers to turn travel alerts on and off, and man-
“We don’t yet offer the ability to alert the open on mobile, while investment products age default cards for payments.”
bank via the mobile app if the card is com- are much harder.”
promised – we’re working on this.” Wells Fargo
Instead of developing a proprietary mobile RBC “In 2016, Wells Fargo redesigned its mobile
wallet, National Bank, Canada’s sixth-larg- RBC currently does not offer credit card app, which provides banking services to
est bank, plans to support the wallets offered account management features within its 19.6 million active customers, to be simpler
by the ‘Pays’, such as Apple Pay, says Pomer- mobile banking app or RBC Wallet. and more intuitive for customers, while
leau. “We’ll include a deep link within our “This is clearly an important capability that providing more content and features that
mobile app to these mobile wallets. we’re looking at developing to ensure we’re are better aligned to a customer’s needs,” a
“We’ve seen quite a lot of usage of our delivering to meet our clients’ expectations,” Wells Fargo spokesperson says.
mobile app by our credit cardholders,” an RBC spokesperson says. The app offers credit cardholders features
Pomerleau continues. The RBC Wallet is primarily a payment such as the ability to manage alerts for pur-
“There’s been a shift from online and call vehicle for RBC credit and debit cards, but chase amounts, decline transactions and
centre transactions to mobile, which is our allows cardholders to view their balance, report any suspicious card activity. It also
strongest growing channel now by far.” available credit, and RBC Rewards Point bal- lets users know when they are approaching
Pomerleau says National Bank is working ances. RBC offers a standalone app where their credit limit.
heavily on product origination across all its cardholders can redeem reward points. Cardholders can view spending reports
digital channels, without specifying which aggregated across multiple accounts, includ-
types of product. Scotiabank ing credit card, debit card and chequeing
“You can already apply online and via “We have a robust mobile banking app, which accounts. They can also access Wells Fargo’s
mobile for a bank account and credit card includes My Mobile Wallet,” a Scotiabank Go Far Rewards programme, and view their
with us,” he says. spokesperson explains. “It enables custom- credit score from the app. <
www.cardsinternational.com March 2017 y 9
CI 541.indd 9 06/03/2017 17:02:13NEWS: ANALYSIS Cards International
EPC chairman bashes Germany’s payments scene
It is not often that a conference speaker gets up and, off the cuff, delivers a single-handed slating of a host
country’s ecosystem that everyone would usually be there to promote – but that is exactly what happened
in Berlin at the Merchant Payment Ecosystems conference. Anna Milne reports
S
uch was the dire experience of Javi- accepted”; and the other three, Visa and less” POS system and German airport cabs
er Santamaría Navarrete, chair of MasterCard, “were not legible”. that do not take cards. Those that do, often
the European Payments Council “After half an hour of trying to pay for charge for the so-called privilege, accord-
(EPC), trying to buy a ticket on the a €3.40 ticket, I had to rush for the train,” ing to Sheri Brandon, Head of Transaction
Deutsche Bahn upon arrival in Berlin for whereupon he was promptly issued a pen- Banking at Tieto. Having been asked to pay
the Merchant Payment Ecosystems con- alty charge, which, of course, he had to pay a €1.10 charge to use a card for a €9 cab
ference, that he issued a dressing down of in cash. journey, she reached for her cash purse.
the highest order. Even in the words of the Emerging Pay-
For the hosts: embarrassing. And it was Money where your mouth is ments Association in a recent report on ideal
not the first reference to the fact that Ger- The EPC says it is committed to safe, reliable, European bases for fintechs, Germany was
many lags behind the rest of Europe in terms efficient, convenient, economically balanced seen as resistant to change.
of electronic payments. and sustainable payments, but some were not “Germany has built an impressive reputa-
For Navarrete, who freely shared that he convinced. tion for being antagonistic to the innovative
travels with several cards to avoid a scenario “Yesterday was not safe, not reliable, not European payments sector.
whereby one or more may not be accepted, efficient, not convenient, not economically “In nearly every aspect of interpretation of
the situation clearly warranted a rant. balanced and not sustainable,” Navarrete the key EU laws in this sector, Germany has
Despite several machines at the train sta- quipped. often excelled at taking the narrowest inter-
tion, he could not use cash because each “After this experience, the myths I had pretation.”
one accepted exact cash only. Handy when about Germany being developed have been If the world is going to be cashless by 2040,
you’ve just arrived in a country. obliterated,” he continued. Ouch. Germany looks like it might lag behind.
Of Navarrete’s seven cards, two are Dave Birch had kicked off proceedings in But, in the interests of balance, they’re
Amex, “so, no use”; two are debit, “so, not the morning with a rant against BA’s “point- alright at football, aren’t they?<
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CI 541.indd 10 06/03/2017 17:02:19
Digital touch briefings ad copy - MF 18042016.indd 1 18/04/2016 11:15:29Cards International PRODUCTS: PREPAID IN CANADA
Canadian open-loop prepaid
market open to growth
While prepaid open-loop and closed-loop transactions are the fastest-growing POS transaction types in
Canada, they still only account for small proportions of POS volume and value. Despite this, the prepaid
growth opportunities are significant, especially in the open-loop segment, reports Robin Arnfield
A
2016 report from Mercator based • The average load onto all categories responsible for running the country’s core
on a survey of issuers and pro- of corporate-funded prepaid card was payments infrastructure.
g ra m m e m a n a ger s c ondu c t e d C$125, and
with the Canadian Prepaid Pro- Corporate prepaid and GPR
viders Organisation (CPPO) estimates • The average load onto corporate-fund- Peoples is seeing the most growth in corpo-
that C$3.1bn ($2.37bn) was loaded onto ed cards used for consumer and employ- rate prepaid issuance, says Read.
Canadian Amex-, MasterCard- or Visa- ee/partner incentives was C$110. “This can be corporations giving pre-
? branded prepaid cards in 2015.
“The Canadian open-loop prepaid market Growth opportunities
paid cards to consumers as rewards for
buying one of their products, incentives, or
has eight active segments, compared to 17 in “My view is that there’s room for growth in corporate prepaid cards that are used for
the US, showing significant growth oppor- the Canadian prepaid card market,” says Peter B2B [business-to-business] activities such
tunity for Canadian prepaid programmes,” Read, president of Vancouver-based prepaid as receivables payments, purchasing/pro-
the report says. The Canadian market is card issuer Peoples Card Services. curement, payroll or controlling employee
expected to follow US trends, where open- “Excluding US government prepaid cards expenses,” he says.
loop prepaid cards are the fastest-growing the US open-loop prepaid card market is “There’s a lot of room for corporate B2B
form of electronic payment.” running at around $200bn a year in loads. prepaid cards to grow. There has always been
The Mercator study revealed that: Assuming that Canada is about 10% of a lot of business for corporate B2C [busi-
the US market, we should be seeing around ness-to-consumer] prepaid incentive cards,
• General-purpose reloadable (GPR) $20bn a year in prepaid loads, but we’re and this particular segment will continue to
card loads totalled C$1.84bn in 2015, nowhere near there yet.” grow. Another important segment in Canada
with the average load per card being According to Payments Canada’s 2016 is GPR prepaid cards.”
C$2,016; Canadian Payment Methods and Trends
Report, prepaid open- and closed-loop trans-
• Total loads onto open-loop gift and actions are the fastest-growing POS transac-
mall cards that use a restricted access tion type, but still only account for small pro-
network over open-loop rails amounted portions of POS volume and value.
to C$1.03bn, with the average load per In 2015, prepaid cards represented 1.1%
card being C$83; of total Canadian payments by volume,
accounting for 236 million transactions
• The average load onto all categories worth C$18bn says Payments Canada.
of consumer-funded prepaid card was Formerly known as the Canadian Pay-
C$218; ments Association, Payments Canada is
www.cardsinternational.com March 2017 y 11
CI 541.indd 11 06/03/2017 17:02:26
1:15:29You can also read
