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COVER STORY: Merchant Power!

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8 The Shortlist

Contents //05 EDITOR’S COMMENT

Charting the rise of card payments

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• • • •

Debit Cards “reaching saturation” UK rail operator starts contactless payments Poppy Day appeal by NFC & QR Three important UK trends

• Card use to rise 75% in next decade • UnionPay increases global card share • • •

More Loyalty cards now on phones than in wallets Mobile powers online growth Barclays expands Pingit mobile app

• • •

Global NFC payments forecast lowered Amazon launches ‘login and pay’ service PayPal steps up high street efforts with mobile app

//13 THE CARD & PAYMENTS AWARDS 2014

The 2014 full shortlist of entries

//31 FEATURE

Regulation: PSD2 is coming soon

//33 FEATURE Tapping the Big Data potential

//34 MOVERS & SHAKERS

Following the industry leaders into their new roles

//35 PLACES TO GO PEOPLE TO SEE

The ‘must go to’ events of the next few months

//10 FEATURE Merchant Power! “Whatever we want” say retailers

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Editor’s Comment

Charting the (unexpected & continuing) rise of card payments //I

t is no secret that we are living in interesting times. This is indeed a period of fundamental change for payments. We are at the cusp of a revolution in the way we interact. The mobile device has become central to the way we live our lives. We all hear these and other equally profound and true statements every time there are a group of payment professionals together in the same room. But there is another trend quietly emerging that is equally interesting. It is the continuing rise in card and other traditional payment methods. History rarely takes the predicted route and payments are no exception. NFC hasn’t burst into widespread acceptance as was envisaged five years ago. Contactless is struggling to reach its expected potential. Mobile payments will undoubtedly be massive, but it won’t be a straightforward route to ubiquity and payments are unlikely to be the driver for consumers. The payments path is complicated, fragmented, fragile and with unexpected turns and about turns. It takes a brave person to make predictions. Take those card payments for instance. mPOS, which was introduced as a mobile phone payments terminal to facilitate mobile payments by small traders, is actually being adopted heavily by large retailers wanting to move the terminal out into the aisle. It is being used extensively to facilitate card payments. Mobile payments were expected to take off for small value amounts such as coffee and snacks. People so far prefer to pay by card because it is quicker. At the same time, there is huge caution about using contactless cards. These are fixable issues, and once addressed, this scenario could look very different but right now mobile is no more likely as a standalone payments solution than electronic purses were. Editor Annich McIntosh amcintosh@cm-media.net www.cardworldonline.com Card & Payments World is published by C&M Publications, 3a Market Place Uppingham, Rutland LE15 9QH United Kingdom Tel +44 (0)1572 820088 Production Editor Liam McLoughlin liam@cm-media.net Commercial Manager & Subscription Enquiries Maxine Wernick Tel +44 (0)1572 820088 maxine@cm-media.net Design Grey Coffee info@greycoffee.co.uk ISSN 0954 8564

And what do merchants want? Everything they ask for, it seems, according to these who comment in our article on Merchant Power. But introduce loyalty as a concept in the scenario and it is a different conversation. A study reported in this magazine points out that customers prefer to have their loyalty cards on their mobile phones than in their wallet. They are also interacting less through retail loyalty cards. These are interesting trends that are the reverse of what is happening with payments. It points to to the potential of loyalty as an important driver for mobile payments. This issue of Card & Payments World contains the full shortlist for The Card & Payments Awards 2014 which displays a diverse and interesting mix of the traditional and the groundbreaking that reflects the unpredictable nature of payments today. It makes a fascinating read.

Annich McIntosh Editor

SUBSCRIBE TO CARD & PAYMENTS WORLD... ONLINE: www.cardworldonline.com and follow the ‘SUBSCRIBE’ link CALL: +44 (0)1572 820088 EMAIL: subscriptions@cm-media.net

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Important to Watch

Debit cards “reaching saturation” Results of UK debit survey

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rowth in the total number of debit cards continues to be slow and the number of cards in issue is reaching “saturation”, according to The UK Cards Association. The number of cards increased by 0.3% in July, compared with the 0.1% average monthly growth in the first half of the year. The number of debit cards increased by around a million to 47 million in 2012 from the previous year, with 245 debit card transactions being made every second in the UK with a combined value of £337bn (equivalent to nearly 25% of total UK GDP). The survey found that 91% of the adult population holds a debit card. Total debit card transaction volumes in the UK grew at around 6.1% to

10.8 billion in 2012, while transaction value increased by 2.7% to £541bn. In 2012 online debit card spending passed online credit card spending for the first time 143% since 2007. Around 73% of all spending in the UK retail sector is made using plastic cards, with debit cards accounting for 50% of the total spend. Contactless debit cards The number of debit cards issued with contactless functionality rose 2.6% in July to reach 18.5 million. The number of contactless debit cards is projected to increase to 21.4 million by the end of the year. Domestic debit card spending grew by 1.3% in July to reach £31.1bn, similar to the 1.4% monthly average recorded in the first six months of the year. Meanwhile debit card transactions jumped by 2.7% in July to stand at 693 million after increasing by 1.5% and 1.8% in May and June respectively. (These figures compare with 0.5% average monthly growth between January and April). The domestic average monthly spend per card increased from £347 to £351, continuing an upward trend that began at the start of the year. Average transaction value (ATV) fell to £44.91 in July from £45.50 in June and £45.65 in May.

UK rail operator starts contactless payments

Poppy Day appeal by NFC & QR

Users will still need a paper ticket

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K rail operator Merseyrail has started accepting contactless cards for payments of under £20 – but users will still need to carry a paper ticket for their journey. Merseyrail has partnered with MasterCard and Global Payments on the initiative. Users will be able to pay with contactless credit, debit or prepaid cards via readers at manned booths in the network’s stations, and they will then be given the paper tickets to travel with. The north-west train operator, which carries around 100,000 passengers on a

“Tap the poppy” campaign enables donations

normal weekday, says 98% of its customer transactions are under £20 and contactless payment will provide a faster service with less queuing time. It adds that most Merseyrail stations will be equipped with the contactless technology by the end of November. There will be no self-service contactless ticketing machines and the operator does not have any plans to introduce London Oyster– style readers at entry gates. The first phase of the launch will accept MasterCard and Visa cards, and the operator says American Express will follow next year.

ollection tins and posters for the Poppy Day appeal in Birmingham were enabled so those with NFC mobile devices could donate to The Royal British Legion charity. Proxama and mobile marketing platform provider PayThru provided the ‘tap the poppy’ technology for the campaign. QR codes were available for people with non-NFC devices to donate to the appeal through their smartphone.

Three important UK payment trends

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ajor new trends in unsecured debt, credit card write-offs and payday loans will heavily impact the UK payments market. The level of unsecured borrowing increased by £8.5bn over the last 12 months – the first increase since the financial crisis in 2008 and driven almost exclusively by student borrowing, according to PWC. The average value of a student loan has increased by more than 2000% since the early 1990s to close to £8,000 today. Credit card write-offs, which peaked

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in 2010 at £5.3bn, and represented close to 10% of outstanding balances, have fallen dramatically. In 2013, write offs fell to less than 3.5% of outstanding balances, lowest in over a decade. The full impact of the government’s proposed new cap on payday loan charges has yet to emerge but independent payments consultant Mark McMurtrie, predicts the change could create new opportunities for credit card issuers.


Card & Payments World // www.cardworldonline.com

Important to Watch

Card use to rise 75% in next decade Mobile payments and ACH in the mix

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onsumer card use in the UK will go up by 75% over the next ten years, according to the Payments Council which expects card use to rise from nearly 10 billion payments in 2012 to almost 17 billion in 2022, driven primarily by increased debit card use and acceptance. The report also predicts that the number of cash payments will fall from 21 billion in 2012 to around 14 billion in 2022, as people increasingly use alternatives such as cards and automated payments. Other major predictions in the report include: • Consumer cheque transactions are projected to continue to decline – from 477 million cheques in 2012 to around 186 million in 2022. • Direct Debit use by consumers will grow by 20% to around 3.7 billion payments in 2022 – driven by increased uptake of new regular commitments and a growth in the size of the adult population. • Mobile payments and internet banking will help drive up consumer use of one-off payments from their accounts from 356 million payments in 2012 to around 1.5 billion in 2022. • Population growth and economic growth will mean consumer payments are worth over £2 trillion in 2022, up from £1.3 trillion in 2013. M-payments Mobile payments growth will be driven by a number of factors, including the Payments Council’s launch next year of a service to make secure account to account transfers using only a mobile phone number. The number of people with internet-connected mobile devices is also set to grow markedly. The Council forecasts that many more people will be paying friends, family and small businesses using phones and tablets by 2022.

Internet The report says that plastic card use for internet purchases has seen large growth in payment volumes in recent years. Nearly 40 million people bought goods or services online last year, mainly via plastic cards and it predicts this trend will continue even more over the next ten years. The report forecasts that alongside contactless cards and mobile payments, e-commerce will be a major factor in the near-doubling of consumer card use to 17 billion payments in 2022. Cash Cash payments are forecast to fall by around a third to 14 billion in 2022, largely driven by an increased use of contactless cards in shops and mobile phones to pay friends and family. Direct Debit Regular household and personal bills such as mortgages, utility bills and gym subscriptions will continue to be made using Direct Debit. The number of wages paid directly to bank accounts will continue to grow. Around 13% more wage payments will be paid to bank accounts in 2022 compared to current levels.

UnionPay increases global card share - Network still lags in value and volume - Total card numbers up by 12%

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he continuing rapid expansion of the Chinese card base has helped UnionPay increase its market share to 34% (3.4 billion) of the global card base in 2012. Despite the increase in its share of global cards (from 31% in 2011), UnionPay’s volume and value of payments remains considerably lower than those of Visa and MasterCard, owing to low card usage in China where more than 99% of UnionPay cards are found. The number of payment cards worldwide

increased by 12% in 2012 to reach a landmark 10 billion, according to data from consulting firm RBR Research. Ten billion cards in circulation worldwide corresponds to an average of 2.3 cards per adult, but this varies from fewer than two in the Middle East and Africa (MEA) and Central and Eastern Europe (CEE) to six in North America. As the banked population grows in developing markets RBR, predicts that card numbers will increase rapidly and that by 2018 there will be 13.6 billion cards in circulation worldwide.

Number of Payment Cards Worldwide, by Type of Card (billions)

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Important to Watch

More loyalty cards now on phones than in wallets

Barclays expands Pingit mobile app

Supermarkets lose their lead in the mobile world

Payments direct from adverts

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ollowing the surge in smartphone usage, UK consumers now have access to more loyalty schemes on mobile devices than they do in their physical wallets. While people carry an average of four traditional loyalty cards, they now have access to six loyalty schemes on their phones, according to a survey of 2,000 people conducted on behalf of mobile wallet provider CloudZync. The most likely to use mobile loyalty apps were electrical retail customers with 62% saying that they access at least one loyalty

scheme for electrical stores over their phones, followed by hairdressers (43%) and clothes stores (38%). Supermarkets still lead the use of traditional loyalty cards with 92% claiming that they regularly use at least one loyalty card for a grocery store, followed by coffee shops (51%) and pharmacies (51%). However, all three traditional loyalty leaders were found to lag behind when it comes to mobile, with just 36% accessing supermarket schemes through their mobile, dropping to 33% for coffee shops and 27% for pharmacies. The research also found that loyalty card

Consumers that regularly use 1 or more physical loyalty cards or access loyalty schemes via a mobile device, by retail sector.

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arclays has launched two new features within its Pingit mobile app, including one that lets users make purchases direct from advertisements.

users have on average £83 worth of redeemable points across their loyalty cards at any point in time, and UK shoppers cashed

in on over £4bn worth of loyalty card points over the past year.

Barclays says the features are available now for businesses, such as retailers, to offer their customers to make payments.

Mobile powers online growth “Cultural change”

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obile devices are now behind all online sales growth, according to new research. Analysis from retail trade association IMRG and Capgemini found that there has been a “cultural change” in digital shopping with sales via desktop flatlining, and all online growth now coming as a result of sales through mobile devices. The report found that ecommerce growth, excluding transactions made via mobile, has

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The first feature is ‘mobile checkout’, a payment feature for quick and easy purchases from a mobile web or app checkout page. The second is ‘buy it’, which the bank says bridges the gap between advertising and sales by enabling consumers to purchase advertised goods and services immediately.

been steadily declining for the last two years, since the first quarter of 2011. In the second quarter of 2013 it flatlined altogether. By that point, mobile devices accounted for 23% of all online retail sales. IMRG and Capgemini are now raising their forecast for online sales in 2013 to 15% growth, due to the rapid growth of mobile commerce.

The bank says the Pingit app, which lets users make swift person to person payments by linking to their mobile phone number, has been downloaded by 2 million people since it was launched in early 2012. It is available for Apple, Google Android and BlackBerry devices. The ‘mobile checkout’ feature is optimised for mobile devices, with only a few clicks required to make an instant settlement via a ‘Pay with Barclays Pingit’ button. Barclays says this eradicates the need for the entry of large amounts of personal details, which can be challenging and time consuming on small handsets.


Card & Payments World // www.cardworldonline.com

Important to Watch

Global NFC payments forecast lowered China one of few brightspots for technology

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he healthy growth in sales of NFC handsets has yet to be matched by the adoption and use of handset-based NFC payments services, with many mobile operators pushing back the launch of NFC-based mobile payment into the final quarter of 2013 or in to 2014 and beyond. The number of cash payments will fall from 21 billion in 2012 to around 14 billion in 2022, as people increasingly use alternatives such as cards and automated payments. Those are among the findings of new research from payments consultant Strategy Analytics, which has lowered its global outlook for NFC-based mobile payments. The UK-based consultant estimates that 115 million NFC handset owners will spend just over US$48bn using their NFC phones by 2017. It adds that, although US$48bn is a large amount it “represents a drop in the ocean” of the multi-trillion dollar global retail sector. Inside Secure CEO Rémy de Tonnac told Card & Payments World that NFC is unlikely to become the de facto standard for mobile payments, although it has applications in many other areas. Strategy Analytics said the lowering of its outlook reflects the slow pace at which operators are pushing NFC payment services, limited

NFC payment deployments by handset makers, and the continued slow adoption of contactless payments by retailers. “With the exception of China, where we see some momentum from China Mobile deploying its mobile wallet service, fewer mobile operators than anticipated launch NFC payment services in 2013,” says Nitesh Patel, director of the Wireless Media Strategies (WMS) service at Strategy Analytics. “Furthermore, handset [maker] OEM Samsung, which announced its strategic partnership with Visa Inc in February 2013 has yet to officially offer a secure payments service based on that relationship.” The research predicts that the vast majority of deployments will continue to be in Asia Pacific, followed by North America and then Western Europe.

Amazon launches ‘login and pay’ service Customers can make payments at other e-commerce sites

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mazon is targeting a slice of PayPal’s online payments business with the launch of a service that lets customers use their Amazon login details to make payments at other e-commerce sites. The system is being made available to Amazon’s 215 million active customers and

could be a major challenge to PayPal’s online payments dominance by enabling people to transact at a number of sites via just one set of login details.

back-end systems. The ‘Login and Pay with Amazon’ system uses the OAuth 2.0 protocol, which has been broadly adopted for userauthorised exchanges across sites.

e-commerce sites that partner with Amazon will be given a set of widgets and APIs to embed on their site and integrate with

Amazon says the new system will enable online merchants to create long-term relationships with more customers.

PayPal steps up high street efforts with mobile app New offering enables POS payments offers and rewards

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ayPal has launched a new assault on the offline world with a mobile app that lets consumers make purchases and redeem offers by scanning a QR code on their mobile device. Users of the new Payment Code app, to be rolled out globally in Q1 2014, can also receive a short four-digit code on their phone to complete a purchase.

PayPal claims that the real value of the app is that it will allow consumers to automatically redeem any special offers, gift cards, merchant rewards programmes or other forms of payment that might be saved in their PayPal wallet in one quick transaction. No new POS technology is needed as the system utilises the 2D barcode scanners already installed at over 40 million merchant POS around the world.

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Feature

Merchant Power “Whatever we want” say retailers

trend has been developing for some time now that is scaring the hell out of financial services. It is the growing power of the retailer.

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Now fast forward to 2013, post the banking crashes, the economic recession, post Amazon, eBay and PayPal, and the situation couldn’t be more different.

Fast track backwards to 1995 for a comparison of attitude and influence. Two decades ago, conferences were about what banks were doing, which new card launches were impressing one’s peers and who was offering the best consumer rewards.

In London recently for example, there was a conference called “Merchants & Payments” – a subject which would have appalled attendees even ten years ago. And the speaker line up contained as many, if not more retailers, than it did payments companies. At the Mobile Wallet Summit Europe, there were as many presentations about consumer loyalty and retailer initiatives as there were from payments providers.

This focus led straight from the issuer to the consumer in a direct line, leap-frogging over the merchant who was the silent, long suffering, uninteresting party within the ... party. And a party it certainly was. Plenty of launches, lots of exciting technology, the internet growing in importance and hardly anything to stop the inexorable rise and dominance of the financial institution in the payments chain. It wasn’t that merchants didn’t count – of course they did. Wasn’t the British Retail Consortium, EuroCommerce or a similar pressure group usually given a 40 minute slot during a two day payments conference? Didn’t they always moan about how hard done by retailers were, and how high interchange was – as if banks and card companies were going to change the four party model. What an outrageous suggestion. Payments was the concern of the card companies, the banks and the card brands, MasterCard and Visa. The retailers were expected to keep out of what they didn’t understand, and let the people who knew what they were doing handle the risk based side of the business.

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It seems the payment industry has changed its oft heard view of the previous couple of decades, that “issuing is the sexy part and merchant acquiring is the boring bit” and started to recognise that it is in fact the merchant that holds the power. Increasingly, these upstart merchants are using it. Demanding retailers The High Street has had to batten down its hatches in a scenario similar to a WorldWar Two style blitz, but those traders that have come through the vagaries of the last few difficult years are stronger, more knowledgeable and a damned sight more demanding. Much of this can be blamed on the internet. Why stick with the incumbent acquirer, when with a swish of one’s mouse, a host of highly competitive internet startups come pouring onto the computer screen? After years of lobbying, the European Commission, together with national regulators from around the globe are insisting that the payment brands and the

banks reduce electronic payment charges The “honour all cards” rule is a thing of the past. Consumers are getting used to being told they will have to pay extra if they use certain ‘expensive to retailers’ payment products and they are altering their shopping practices accordingly. Merchants are offering the methods that work for them, not those they are told to use by their banks. And if their bank does not match their expectations, it is now actually possible, in the UK at least, to move to another. So the pressure from retailers is growing, but what does this mean in practice? Dave Birch, director of Consult Hyperion, described how it used to be: “For those too young to remember, payments used to be boring because it was predictable. Developments were determined in smoke filled rooms where the most exciting aspects of strategic planning tended to be around whether in three years time, they should shift field seven from one byte to two bytes.

Why put up with high interchange and merchant fees if there is an interbank transfer service available at a fraction of the cost or a mobile payments provider who will process payments for nothing?


Card & Payments World // www.cardworldonline.com

Feature “We have made progress with electronic payments,” concedes Birch, “but we have not done well enough. There are new stakeholders now, and these are the merchants. This is a state of affairs that is only just emerging, and it has been caused by the growth of the FAGS (Facebook, Amazon, Google etc). But if we don’t construct some dialogue, there will be some perverse outcomes.” The potential win-wins, for those in payments who set up this dialogue, and work together with merchants is very great. The alternative is that they will lose their customers to new payments providers, such as mobile startups and internet models. There are plenty about that seem to be doing very well circumventing the existing model. So what should financial institutions and existing payments providers do to reconnect with merchants? The strongest request from the merchants speaking at the London Merchants & Payments conference, is to provide them with the tools they need to keep the customers crossing the threshold, whether this is in person, or virtually. This means providing the payments channels that the new consumer wants to use, in a way that is user friendly, and easy for the retailer to manage. They are also interested in using payments data efficiently for customer analytics and in using existing systems for marketing, especially using social media and interesting forms of loyalty initiatives. Mobile payments The irony about mobile payments so far is that it is not the consumer that will be first to adopt this method of paying, but the merchants themselves. mPOS is already being used successfully, not just for small traders such as window cleaners, but for large merchants who want to move the payments terminal out from behind the counter and into the aisle. And there is a great deal more to integrating the mobile into the shopping process than just the payment part. Mobile can be used to research, compare, recommend, collect points and coupons, connect with the merchant and with other shoppers, and store everything from guarantees to shopping preferences. The mobile device is of crucial importance to retailers who want a seamless omnichannel offering for their customers, and a potential goldmine for those who get the proposition right. Data One of the problems with getting banks

to relate to merchants in the way that merchants want to relate to consumers is that they don’t see data the same way. Merchants view customer data as a way to understand shopper behaviour, and respond to trends. They increasingly want to communicate with customers, encouraging proactive response from shoppers using social media, and forming clubs and groups that will recommend products to each other. A massively successful example of this is Starbucks, which is still breaking all records with its payments and loyalty card, and which is exploring how the mobile can make this relationship even more successful. Banks and card companies however, are less comfortable sharing data, and few are using this as a way to add value to a merchant acquiring Rob Harper - PayPal relationship. Financial institutions are also obsessed

“There are likely to be many different types of mobile payment. It will be fragmented. It is impossible to predict which technology we will be using in the future. But who would have been able to predict the success of the iPad, or today predict what the next disruptor will look like?” Rob Harper PayPal with payments, rather than considering the whole shopping journey. Olivier Denecker of McKinsey commented: “No-one likes to pay, they only want to buy. The whole world of POS commerce is changing POS payments, not the

reverse. There is an adjacent opportunity to payments. It is evaluate, buy, bond.” New boys PayPal used to be the new boy on the block, but these days, it is considered rather an old timer, and here too, there is an urgency to take advantage of what technology is making available via mobile interaction. Rob Harper, head of retail services EMEA for PayPal, admits it has gone through many face to face payments trials, but with its relationship with Discover, the online payment company owned by eBay is now ready to move seriously onto the High Street. Working with Clover and First Data, and putting the Amazon checkout at the disposal of merchants, the intention for PayPal is to make money on the whole transaction including from harnessing the data and moving into other adjacent spaces. Asked why they have tried so many different solutions (think face payment for example, as well as lots of other modifications) With a new mobile payment method being launched every few days, and the existing players launching new software every few weeks in order to keep up with developments, this is not a race for the faint-hearted. And there are massive infrastructure challenges. Merchants need to integrate any new payment method into their supply chain. It must be able to adapt to offers, and there must be payment service integration. Above all it must be easy for consumers. This, suggests Harper, is where Starbucks wins hands down. The proposition couldn’t be more simple. A customer uses the card perhaps to pre-order coffee on the way to a shop, or at the very least to earn points and pay. This lack of complexity is credited with much of the success. So are there lessons to be learnt, not least by the NFC business which is still struggling to reach the point where the technology is mainstream? Harper comments: “Because of regulation, and because merchants are changing what Continues on page 12 // Winter 2013

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Feature Continued from page 11 they sell and how they sell it, choices of payment method are being made on levels of efficiency. This is a very expensive business.“ Nishat Mehta, of dunnhumby suggests that there should be more focus on marketing. He gave the example of a payments application offered in a New York taxi that enabled him to pay for his fare quicker than the taxi driver could print out the automated receipt. As this system also enables taxis to be called to a specific place, with the driver able to home into the mobile signal, this offers definite benefit to consumers. “There has been a profound transformation in the way we shop, with an enrichment of the consumer experience,” he mused.

The 2014 Card and Payments Awards

It is this benefit that retailers are anxious to pinpoint and develop. If the payment provider can help them to do this, then a fruitful and long term relationship would follow. Richard Braham, head of payments for the British Retail Consortium is yet to be convinced that payments providers are now on the merchants’ side. Asked to explain why merchants do not steer consumers to contactless for example, even though it has the lowest interchange, he suggested: “Providers make money out of payments. If they want to buy infrastructure, then they have to pay for it. Contactless is 20 milliseconds faster. Who is that going to benefit? Visa and MasterCard want more transactions with a card, it is not speed that is the driver. The same is true of NFC. It is expensive. Who is going to pay for it?” “…and whatever WE want,” say consumers With a blurring of the lines between online and High Street shopping, and a blurring of the rules of engagement between merchant and payment provider. A third scenario has to be taken into consideration. The merchants themselves are arguing that it is not them in control at all, but very definitely the consumer. Said Paolo Bonsignore, marketing director EMEA for coffee company Illy: “Five years ago there were three touch points, the store, a friend or a purchase. Today there are multiple touchhpoints so it is more challenging. There is no longer a buying procedure. Now it is about the customer journey.” Just think, pre - 2004, we thought implementing Chip & PIN was challenging. Happy days.

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or the ninth year running, we are pleased to announce the shortlist for The Card & Payments Awards.This has been a very interesting year for the card and payments industry, with the focus very much on providing that ‘something extra’ to both the consumer and the merchant. Whether it is improved proposition, better customer experience, the use of loyalty and rewards, new channels or improved customer interaction there has been much activity. Marketing is getting lively and new products are coming to market.

There have been some notable innovations and applications and payments professionals are challenged with the need to constantly move forward. mPOS, NFC contactless and other alternative payments methods are increasingly being adopted. There is also the complex and continuously changing regulatory environment to consider. Despite these hurdles and the difficulties, it is an exciting time and this year’s entries have reflected this. Within the shortlist, there are examples of great creativity, innovation, ingenuity and excellence. With a high number of entries and an extremely high standard of entry the task of shortlisting is a difficult one for our independent panel of judges, chaired by John Woods, Chairman of Moneyfacts. However they have managed to do this and we thank them warmly for their efforts. John Woods commented “The judging panel were pleased with the breadth of entries that have come in from both traditional and new supporters of the Awards. There are some very strong entries on the shortlist which showcase the innovation, customer service excellence and other achievements being delivered by the industry” The Card & Payments Awards Gala Evening at the Grosvenor House Hotel, Park Lane, London is heading towards another sell out, so if you have yet to book your table, be quick!” Kirsty Perkins The Card & Payments Awards


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The Card & Payments Awards - Shortlist

Welcome to the shortlist for The Card & Payments Awards 2014. The black tie dinner and awards ceremony will be held in The Great Room of The Grosvenor House Hotel, London on 6th February 2014. For more details on the Awards please visit www.cardandpaymentsawards.com

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Category Sponsor: Coutts & Co

Emirates Skywards and MBNA

Manchester United & MBNA

Silk Card

Emirates Skywards Credit Card Account and Emirates Skywards Elite Credit Card Account.

The Manchester United 2013 Champions Credit Card design

Coutts is a private bank and wealth manager with three centuries of experience, providing customised solutions for its clients. Following a major refreshed brand identity, Coutts looked to bring cohesion to their range of card offerings. Their flagship card was redefined and launched in April 2013 as the Silk Card.

The recently launched Emirates dual credit card is an innovative new programme that enables Customers to enhance their Skywards membership. The result of which is a card design that fuses Middle Eastern art with a contemporary Western feel and finish.

The limited edition ‘Champions 20|13’ card design celebrates a moment in history for Manchester United supporters, with the iconic bold red as the base colour, the Manchester United crest and the record achievement that no other English club has ever achieved ‘Champions 20|13’- a card that truly represents Manchester United and its supporters

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The MBNA Everyday Credit Card

MBNA More Rewards Credit Card

Cash Passport Globe

Designed to delight the customer with a card that stands out from the rest with a vibrant blue foil and clean white base offering a fresh look and feel. The design simultaneously evolves MBNA’s established card design set adding stronger brand prominence for stand out in the market place.

Designed to be different - a complementary twin card set (An American Express and Visa Card) under one account with complementary, yet distinctive designs for credit cards that work seamlessly together symbolising the unique MBNA ‘More Rewards’ programme of both enhanced benefits and a vast choice of rewards.

Since its re-design in November 2012 Travelex’s Cash Passport Globe now visually aligns with the card’s purpose as a travel money solution for global travellers as well as Travelex’s brand as the world’s leading currency specialist. Cash Passport Globe is produced using market leading technology in card design and security. // Winter 2013

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The Card & Payments Awards - Shortlist Best Card Marketing Campaign of the Year SHORTLIST

Category Sponsor:

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Barclaycard

Barclaycard

Barclays

Barclaycard Contactless London

“Toys”

Branch Debit Card Replacement

The Contactless London campaign saw Barclaycard partner with Transport for London in a bid to make Londoners’ lives easier through contactless technology. With a fully integrated campaign that had a reach of over 24m, Barclaycard were able significantly increase Barclaycard brand awareness and daily use of contactless technology.

“Toys” was a highly integrated campaign that positioned Barclaycard as the provider of easier ways to pay and the leader in mobile payments technology. By engaging with consumers across multiple physical and virtual touch-points, Barclaycard was able to drive significant leadership for brand perception and contactless awareness.

When Barclays wanted to show customers why they should bank with them, they knew that their free Branch Debit Replacement Service was a winning reason and they wanted everyone to know. So they developed an integrated campaign to persuade customers and non-customers to make Barclays their bank.

Manchester United & MBNA

Santander UK

Tesco Bank

Manchester United Credit Card

123 Credit Card

Bagel

MBNA and Manchester United partnered together to successfully launch a bespoke proposition to celebrate the success of the clubs 20th league title. The campaign strongly integrated with the clubs branding, providing supporters with bespoke 20 month pricing, limited edition card design, leveraging a wide range of marketing channels never previously utilised for the credit card programme.

In March 2013, Santander launched an integrated national advertising campaign using their brand ambassadors to promote the 1|2|3 Credit Card. Using disruptive and engaging creative, Santander demonstrated it’s commitment to giving value back to the customer and showed once again how customers can earn cashback on their everyday spend.

Using original creative and a transparent offering based on what matters most to customers, this campaign consistently positioned Tesco Bank as a ‘bank that thinks like a supermarket’. Blending geomapping with a multimedia approach,Tesco Bank achieved record credit card sales in 10 weeks and achieved 1st position for purchase cards.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Card Benefits Programme of the Year SHORTLIST

Category Sponsor: Barclaycard

Capital One and Vauxhall Rewards

Coutts & Co

Barclaycard Freedom Rewards

Vauxhall Rewards

Silk Card

The innovative, market-leading Freedom Rewards card was launched in response to customer research indicating a need for better value and choice. Barclaycard’s programme gives back in a way no other scheme can; rewarding Freedom points on everyday spend regardless of where or how the customer chooses to shop.

In partnership with car manufacturer Vauxhall, Capital One launched a unique new rewards card. The new Vauxhall Rewards card offers customers up to £1500 cashback on a new Vauxhall along with heavily discounted servicing/repairs, making it not only the only card of its kind in the sector but one of the most generous cash back offers available.

Silk is Coutts’ new flagship card which comes with an extensive array of exclusive, handpicked benefits. Coutts has launched a truly unique card proposition that is personal, authentic and innovative that is built around the busy lives its clients lead and the additional tailoring they require to meet their unique lifestyles.

Lloyds Banking Group

Royal Bank of Scotland Group

SAV Credit

Halifax Cashback Extras

Cashback Plus “ Feel rewarded every day”

aqua Credit Checker

Halifax Cashback Extras is an innovative programme; rewarding customers with personalized targeted offers from popular retailers based on the customers’ actual spend. Customers can benefit from the scheme through online and mobile banking.

The challenge of current account retention/ acquisition increased this year with account switching legislation. RBSG’s response: the UK’s simplest customer loyalty programme – Cashback Plus. Just use your Visa debit card to earn 1-20% cashback. No fees, minimum deposits or catches – no wonder 400,000+ customers activated in eight weeks.

aqua is the UK’s leading specialist credit card provider, offering credit to consumers not served by High Street Banks. SAV Credit passionately believe in making credit work for more people and have proved this is by launching aqua Credit Checker; a free credit checking service with premium benefits worth £80.

// Winter 2013

15


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WEX CorporatePay’s Virtual Credit and Virtual Prepaid Programme

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Barclaycard has launched a new Transfer to Bank proposition for existing customers. It works in a similar way to a balance transfer, but rather than having the customer transfer a balance from another credit card, their balance is transferred from their Barclaycard into their current account as money.

Best CSR Programme

16

Barclays and Barclaycard have created a package to help customers build their credit history with a Barclaycard Freedom Rewards card and a Barclays current account. Customers have access to benefits including Barclays Mobile Banking and the ability to earn Freedom points, making their money work harder while earning them rewards.

SHORTLIST

American Express

Ikano Bank

‘Realise the Potential of the Community’

Cheese Matters

American Express, in partnership with Albion in the Community, aims to have a positive impact on the community, by engaging beneficiaries in innovative learning initiatives and social inclusion programmes. Since October 2012, the programme has expanded to positively benefit almost 4,500 people across Sussex, a 45% increase on 2011.

Ikano acts as a responsible company, a good employer and a good neighbour, giving support to social initatives, where our help can make a difference. Our focus on education has meant that we have formed links with local schools in deprived areas where activities include our financial education programme along with employability and business education work.

// Winter 2013

WEX CorporatePay’s popular Virtual Prepaid Payment solution is now available to customers as a credit based solution. The development came in July 2012, when WEX acquired CorporatePay. The addition of a Virtual Credit option and the flexibility it affords for managing current and future spend was welcomed by existing prepaid customers.


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Affinity or Co-branded Card Programme

SHORTLIST

Category Sponsor: Capital One and Media Ingenuity

Capital One and Vauxhall Rewards

Emirates Skywards and MBNA

Luma Credit Card

Vauxhall Rewards

Emirates Skywards Credit Card Account and Emirates Skywards Elite Credit Card Account.

As the largest online advertiser in the PF space, Media Ingenuity saw an opportunity to improve communications in the sub-prime sector. Capital One was ideally positioned as the partner with their expertise in this field. Merging these capabilities created an innovative partnership, one that could unlock great value for consumers.

In partnership with car manufacturer Vauxhall, Capital One created a unique cashback credit card for existing and potential Vauxhall owners. The result however, was not a standard cashback product – it was an innovative model that offers consumers unprecedented discount whilst driving revenue for both Capital One and Vauxhall.

The Emirates Skywards Credit Card, launched successfully in partnership with MBNA, provides existing, and prospect Emirates customers with an innovative market leading card. A companion card with the options of ‘non fee’ or ‘Elite’ offering creates customer choice alongside significant benefits. Enhancing Skywards miles earnings through loyalty to airline brand.

Etihad Guest and MBNA

Manchester United and MBNA

STA and IDT Financial Services with Tuxedo Money

Etihad Guest Credit Card Account

Manchester United Credit Card

STA ISIC Cashcard

The successful launch of the Etihad Guest Credit Card is testimony to the solid new partnership between MBNA and Etihad, who have jointly delivered a high-value proposition to the target base, encompassing a unique suite of benefits, which aim to maximise customer spend and affiliation with a best-in-class airline.

MBNA & Manchester United have enjoyed an outstanding 15 year Partnership, having recently renewed the Partnership until 2016. Throughout the 2012/13 football season we have executed successful be-spoke Acquisition and Customer Marketing campaigns as well as delivering Red Rewards, exclusive to Manchester United Credit Card holders.

The ISIC Cashcard is the only combined affinity, international ID and travel card. Launched in June 2013, the STA ISIC Cashcard gives STA its own travel and International ID affinity card. The card is for students and offers a prepaid cashcard plus an internationally recognised student ID and discount card – a UK first.

// Winter 2013

17


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Business Card Programme SHORTLIST

Category Sponsor:

18

Advanced Payment Solutions

AirPlus International

American Express

CashPlus Business Card Programme

Europe’s First Mobile Corporate Payment Product

Corporate Gold & Platinum Cards

The Cashplus Business Card is unique. We’re the only card with Direct Debit (including Debit Protect), an overdraft facility and can leverage faster payments in and out of the account. Not only do SMEs use it but APS have secured over 80% market share of Local Authorities using a card for benefit disbursements.

AirPlus International has introduced a major industry-changing innovation: Mobile A.I.D.A., Europe’s first mobile corporate payment product, offering customers increased flexibility and control of their travel payment programme. It has also launched three unique data enhancements to maintain its position as world leader in business travel payment reporting.

Against a backdrop of constrained corporate budgets, the relaunch of the Corporate Gold and Platinum Cards has reinvigorated the business travel experience for executives. American Express has created market-leading benefits packages to help the employee stay relaxed and productive on business trips, while delivering valuable cost savings to their company.

cardone banking and Wirecard Card Solutions

Lloyds Banking Group

WEX CorporatePay

cardonebanking current account for Small Businesses

Corporate MultiPay

WEX CorporatePay’s Virtual Credit and Virtual Prepaid Programme

The cardonebanking Current Account for Small Businesses fills the need for a transactional business current account that can be opened within hours of applying online. The application process needs no credit checks, physical presence or signatures, but the account delivers exceptional functionality.

Corporate MultiPay is an innovative and unique business payment account that customers can use for BOTH general purchasing and T&E expenses. The product includes a host of physical and virtual features designed to improve businesses’ ability to control, analyse and manage spend.

Following success at the The Card & Payments Awards 2013, WEX CorporatePay’s Virtual Payment solution has gone from strength-to-strength, with the introduction of Direct /Integration into various core industry technology partners and clients; an enhanced online user interface and new and enhanced features to support the travel industry.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Merchant Acquiring Initiative

SHORTLIST

Category Sponsor: AIB Merchant Services

Setting Trends – Wirecard As An Integral Part Of The Mobile Evolution

WorldPay

Authipay

Wirecard UK and Ireland

WorldPay ‘”Contactless”

In March 2013 AIB Merchant Services (AIBMS) launched Authipay, an all in one online payment gateway and merchant service facility. It is a convenient, safe and easy way to facilitate the acceptance, authorisation and processing of online transactions by delivering a service with one invoice, one support number, one price.

Wirecard AG is one of the leading international providers of electronic payments and risk management solutions. Wirecard supports over 14,000 companies from many industry verticals. Wirecard Bank AG provides account and credit card services both for business and private customers and is a Principal Member of VISA and MasterCard and acquirer for JCB, Amex, Discover/Diners, UnionPay and alternative payment solutions.

WorldPay designed a strategy to increase contactless adoption. As a result, WorldPay saw 70 large corporates adopt contactless technology, with transactions in this period doubling; increasing from 1.9 million in October 2012 to 4 million in July 2013, with the value of transactions growing from £14m to £28.8m per month.

WorldPay

Global Shopper Helping retailers use payment technology to improve customer service for international consumers, build understanding of their buying patterns, and their revenue potential. Over 300 retailers are now on board benefitting from increased sales and £1.8 million in shared commission payments.

// Winter 2013

19


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Security or Anti-Fraud Development SHORTLIST

20

Barclays

Chase Paymentech Europe

HSBC

Text message alerts, 24/7 worldwide

Safetech Fraud Tools

‘Groundbreaking Card Not Present Solution’

Millions of card fraud alerts go out by phone every year, but only within the UK. Cardholders miss many of them, so accounts remain blocked unnecessarily. The process wasted time and money and created anxiety. Our new text system is worldwide, 24/7 – faster, cheaper and much more effective.

Chase Paymentech Europe Limited introduced Safetech Fraud Tools in 2012, a state of the art fraud management platform including patented technologies, merged with the unique strengths of its global payments processing core. In 2013 Safetech Fraud Tools became the most successful product in the fraud manag ement portfolio of Chase Paymentech.

HSBC collaborated with Arcot, a CA technologies company, to deploy transparent risk-based authentication to two of HSBC’s fraud-prone portfolios. This deployment was completed in less than two months, delivered its ROI in the first week and is on course to achieve estimated annual savings of £3m.

MBNA

Royal Bank of Scotland Group

MBNA Email Triggers

RBS & RSA Working together to prevent Fraud

Email Triggers is a fully automated email service, identifying transactions which have a high propensity for fraud, the alert triggers an email which is delivered direct to customers’ inboxes and has helped us avoid £1.3m in fraudulent transactions and at the same time giving customer’s confidence in the security of their MBNA card.

RBS expanded its use of the RSA Adaptive Authentication solution to pro-actively defend against new threats from the criminal underground. In addition to protecting against these threats, RBS was able to expand its customer centric initiatives. Customers feel safe and secure when they bank with RBS due to the blend of visible and invisible security delivered with security vendor RSA – as highlighted by the recent Which? report.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Alternative Payments Programme

SHORTLIST

Citi & PayPoint

Kalixa Payments Group

PayPoint

Simple Payment Service

Kalixa Pay

PayPoint Quick Credit Voucher - A Real-time voucher generation portal

Simple Payment is an innovative electronic closed loop prepaid programme delivering benefit, pension and child maintenance payments to beneficiaries who don’t have a bank account. Payments are made either to a secure prepaid card or instantly via SMS or email. Encashment is via the PayPoint retail network throughout the UK.

Kalixa Pay is a contactless prepaid e-wallet that works across multiple devices both online and on the high street. In a fragmented market, payments can be complicated, cumbersome and confusing for consumers. Kalixa Pay removes complexity by offering consumers one way to pay to make payments simple, seamless and secure.

A secure, web-based portal, created and launched in under six months, which enables local authorities to instantly create and distribute vouchers to vulnerable residents in need of a crisis grant. Vouchers can be issued for cash or an energy top-up and are redeemable at any of PayPoint’s 25,000 stores.

paysafecard

Tuxedo Money and IDT Financial Services

Ukash

paysafecard – pay cash. pay safe.

Eccount Money

Ukash

paysafecard is a semi-open loop, non-reloadable prepaid program, issued as an e-voucher that enables customers to pay in more than 4,000 online shops in the virtual area. paysafecard is the leading prepaid organization in Europe, with an historic track record of 12 years pioneering the prepaid payment market in Europe.

eccount® money, is designed to give the 1.5million “unbanked” in the UK a credible alternative to a high street bank current account. The account is available to everyone (18+, UK resident) regardless of current or past credit history. Since launch, over 27,000 applications have been received.

Continued investment by Ukash demonstrates its commitment to empowering consumer financial inclusion. New product launches illustrate this commitment: The Ukash Cash Withdrawals Service including the first ever non card cash withdrawal at ATMs and the Ukash Money Transfer Service, for the first time enabling domestic and international transfers online.

// Winter 2013

21


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Initiative in Mobile Payments SHORTLIST

Category Sponsor:

22

Barclays

Barclays

EE

Pingit - Buyit

Pingit - Picture Payments

Pay Phones are Back!

Described by the media as “the biggest watershed in banking since the launch of the credit card”, Barclays Pingit launched on 16th February 2012 is a free mobile application that allows those with a UK bank account to send and receive money by just knowing someone’s mobile number.

Described by the media as “the biggest watershed in banking since the launch of the credit card”, Barclays Pingit launched on 16th February 2012 is a free mobile application that allows those with a UK bank account to send and receive money by just knowing someone’s mobile number.

Cash on Tap is the new, secure, contactless payment service for your EE phone. Just tap your phone on any contactless card reader in over 230,000 places to pay for anything under £20. Coffees, lunch, taxis… Tap, done. Even when your phone’s off.

Global Payments

Payment Card Solutions and IDT Financial Services

WorldPay Zinc

Bringing card acceptance to small businesses using mobile technology.

PayPal Here

Putting card payments in the hands of micro businesses

Traditionally, it has been difficult and expensive for small businesses in the UK to accept cards. Global Payments and Intuit developed a mobile app, Intuit Pay, which, used with a Bluetooth reader, turns the device into a chip & PIN terminal, so any business or individual can accept cards inexpensively.

PayPal Here UK is a game-changer for small businesses and the answer to one of their biggest challenges – getting paid. It enables any business to accept debit, credit card and PayPal payments anywhere, anytime – businesses can get paid quicker than ever and never need miss out on a sale again.

With the WorldPay Zinc service small businesses can take card payments wherever they are in the UK, using a Chip & PIN keypad and app. It’s fast, simple, secure and pay as you go with no contract lock-ins and no monthly fees, bringing mobile payments to even the smallest business.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Technology Initiative of the Year

SHORTLIST

Category Sponsor: Barclaycard

EE

Global Payments

Disputes Transformation

Pay Phones are Back!

Using mobile technology to make card acceptance a reality for small businesses.

Barclaycard customers’ lives have been much easier, where unrecognised transactions need to be removed from their account. Streamlined, automated processes have reduced a paper form and 25-day wait to just five minutes either on the phone or online for 71% of customers. Customer satisfaction is up 23.6%

Pay phones are back! Cash on Tap is the new, secure, contactless payment service for your EE phone. Just tap your phone on any contactless card reader in over 230,000 places to pay for anything under £20. Coffees, lunch, taxis… Tap, done. Even when your phone’s off.

Traditionally, it has been difficult and expensive for small businesses in the UK to accept cards. Utilising new mobile payment technology, Global Payments and Intuit developed a mobile app, Intuit Pay, which, used with a Bluetooth reader, turns the device into a chip & PIN terminal.

MBNA

Nationwide

PayPoint

MBNA Responsive Digital Design Programme

Favourite Transactions on ATMs

PayPoint Quick Credit Voucher - A Realtime voucher generation portal

MBNA successfully launched a fully responsuve online application form in March 2013 using the latest techniques in a user friendly consistent manner regardless of screen resolution. It was developed to meet customer needs in an evolving digital environment.

Favourite Transactions is a world first, offering all UK cardholders convenient, fast and personalised transaction options to users at Nationwide ATMs. It achieves this by remembering a cardholder’s ATM Transaction habits, and then offering them their three favourite transactions that best fit their ATM needs.

A secure, web-based portal, created and launched in under six months, which enables local authorities to instantly create and distribute vouchers to vulnerable residents in need of a crisis grant. Vouchers can be issued for cash or an energy top-up and are redeemable at any of PayPoint’s 25,000 stores.

// Winter 2013

23


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Industry Innovation of the Year

SHORTLIST

Category Sponsor:

24

AirPlus International

Barclaycard

Barclays

Europe’s First Mobile Corporate Payment Product

Disputes Transformation

Pingit - Buyit

AirPlus International has introduced Mobile A.I.D.A., Europe’s first mobile corporate payment product. Mobile A.I.D.A. gives business travellers a way to pay for on-trip expenses even if they don’t have a corporate card. It takes earlier consumer mobile innovations to new levels by adding key elements of control and data.

Barclaycard customers’ lives have been much easier, where unrecognised transactions need to be removed from their account. Streamlined, automated processes have reduced a paper form and 25-day wait to just five minutes either on the phone or online for 71% of customers. Customer satisfaction is up 23.6%

Described by the media as “the biggest watershed in banking since the launch of the credit card”, Barclays Pingit launched on 16th February 2012 is a free mobile application that allows those with a UK bank account to send and receive money by just knowing someone’s mobile number.

EE

Global Payments

Nationwide

Pay Phones are Back!

Shaving transaction times to under a minute in the hospitality industry.

Favourite Transactions on ATMs

Cash on Tap is the new, secure, contactless payment service for your EE phone. Just tap your phone on any contactless card reader in over 230,000 places to pay for anything under £20. Coffees, lunch, taxis… Tap, done. Even when your phone’s off.

Global PAY Now is revolutionising the way customers pay in the hospitality sector by using Global POS Link to connect standalone terminals to the merchants’ point of sale (POS) tills. This speeds up paying, makes reconciling takings easier and delivers the benefits of large integrated payment systems without the cost.

Favourite Transactions is a world first, offering all UK cardholders convenient, fast and personalised transaction options to users at Nationwide ATMs. It achieves this by remembering a cardholder’s ATM Transaction habits, and then offering them their three favourite transactions that best fit their ATM needs.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best CRM Programme

SHORTLIST

Royal Bank of Scotland Group

Ikano Bank

Barclaycard

RBSG & Aimia - Your Points

Ikano turning Karen Millenâ&#x20AC;&#x2122;s Client data into valuable actionable insight

Barclaycard Credit Increase Policy

RBSG used data analysis and communication targeting to increase redemption response rates and on-going engagement in the YourPoints programme. By analysing spend data and overlaying additional profiling data, a Customer Segmentation was developed to understand YourPoints customers. This enabled improved targeting and relevancy, delivering an impressive 35.5% redemption uplift.

Ikano apply a range of advanced analysis techniques to drive value for customers and Karen Millen. Analysis is combined with modelling to track and predict changes in customer behaviour, overlaid with segmentation, maximises the ROI and delivers a customer centric programme.

Barclaycard have changed their policy in order to accept more customer requests for limit increase. As a result customers achieve greater flexibility, which creates deeper engagement with the brand. It also drives greater value for Barclaycard, driven by increased spend on the card.

Barclaycard Barclaycard Customer Retention Programme At Barclaycard, our aim is to provide the best value and services throughout the customer journey. Through our focused customer retention programme, we have doubled our save rate at the point of closure and reduced portfolio attrition to a record low in 2013.

// Winter 2013

25


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Overseas Payments Programme

SHORTLIST

Category Sponsor:

26

AirPlus International in China

Bank of America Merrill Lynch

Barclaycard US

AirPlus International in China

Corporate Travel Card

Barclaycard Arrival

AirPlus International, already the market leader in business travel payments in China, boosted client contract numbers 44% and transaction volume 49% in one year, after a significant strategic investment. It succeeded through major product customisation for the Chinese market and by targeting Chinese-owned companies in addition to multinational corporations.

Bank of America Merrill Lynch (BofAML) Corporate Travel cards provide exceptional capabilities for organisations with operations in Europe and around the world. We offer a full range of card products to meet the needs of our corporate and government clients including Purchasing cards, Lodge/Central Travel Accounts and ePayables, with Virtual card account numbers.

Barclaycard Arrival is a lucrative travel rewards card offered by Barclaycard in the U.S. that offers unique features such as the ability to earn 10% of miles back upon redemption to make earning for the next free trip even easier and an online community for cardmembers to share travel reviews.

Contis Financial Services

IDT Financial Services and XXImo

WorldPay

airBaltic Payment Card

The XXImo Card

WorldPay’s Alternative Payments Programme

Contis enabled the largest Baltic airline to expand its commercial interests and establish itself as a major player in international financial services. By integrating a range of Visa e-money management facilities with the airline’s loyalty scheme, Contis launched a bank-beating financial solution which offers unparalleled benefits to cardholders across Europe.

The XXImo mobility card is a Visa prepaid business card with auto fund reload function and build in petrol and (contactless) public transport card. One fully compliant VAT invoice, option to set services by amount, region and product type per cardholder and the option to facilitate a mobility budget.

WorldPay’s Alternative Payment Programme refers to the company’s extensive range of alternative payment types that it processes across the globe. WorldPay provides merchants with the greatest concentration of payment services, with alternative payment functionality for 200+ payment methods worldwide. More are being added regularly giving merchants maximum customer reach overseas.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best Achievement in Customer Service SHORTLIST

Blow Out Experiences

BConnected

BResolved

What we did: An interactive learning environment to share culture, values, and customer service standards with our offshore front line Agents. Impact: By developing Agent knowledge of what’s being discussed in the British media or what people are watching on TV, BConnected helps colleagues in India understand and serve customers’ better. It also provides visibility of UK Barclaycard products supporting a reduction in ‘people related’ complaints.

What we did: Created a centre of excellence for the management of Disputes and Chargeback complaints. Supports our vision of end-to-end complaint handling for Barclaycard by a named individual. Impact: Excellent feedback on the customer experience and reduction in time to resolve complaints.

Accelerating our Digital Transformation

‘Track It’ for Level 2 Complaints

What’s planned: Deliver Digital Transformation, achieving ‘digital switchover’ by 2015 through great experiences across access devices, lower CTS and increased revenue. Future impact: Significant experience improvement and cost reduction across payments, paper, Digital TOM and cost of servicing.

What’s planned: Enable customers’ to see the status of their complaint online and without the need to call. Customers’ will be sent an SMS or email when their complaint is logged, explaining how to access, track and review progress. Future Impact: Improve customer experience (measured by TNPS) and remove bad call volume. Supports our self-serve and digital strategy.

6

Customer Advocacy

Agent Empowerment What we did: Empowered Agents to re-price eligible customers. Impact: Reduced FCA reportable complaints by c.200 p.a.

8

Smart Call

Net Promoter Score

First time in Collections and Cycle 1

What we did: TNPS provides real time customer feedback via SMS. Impact: Since the launch of TNPS scores have increased from 20 to 44 driven by a relentless focus on performance improvement.

What we did: Offered a bespoke softer contact strategy that has been rolled out to 90% of Cycle 1 customers who are first time in collections (10% remain in control group.) Impact: Supported a reduction in Contact Inappropriate complaints by c.50% at both Level 1 and FCA reportable.

Go To Fraud

44

Interactive SMS What’s planned: Send an instant SMS to customers if Falcon identifies suspect, potentially fraudulent transactions. Futuer impact: Increase our digital self-serve rate and reduce fraud losses.

1234

Net Promoter Score

Transaction Net Promoter Score (TNPS)

40

What we did: Created a ‘Call Us’ button in the Barclaycard app that allows customers to be verified to Level 3 ID&V through their app login when calling the VCC. Impact: 950 calls since Smart Call went live, averaging 135 per day which have delivered an ID&V success rate of 82%.

31

25

CIFAS Transformation What we did: Implemented real-time fraud checks prior to application decision. Impact: Application complaints have reduced by c.64%.

Text Reassurance Automation What we did: SMS sent to customers automatically, confirming the action taken e.g. payment confirmation, plan set-up, Direct Debit set-up. Impact: Increased our ‘Kept Promise’ rates from 85% to 90% and improved customer satisfaction to 84% for first point of contact resolution.

PIN View Online

Improved FAQs

QR codes

What we did: Enabled customers to obtain a new PIN instantly through either the mybarclaycard or IVR channel. Impact: Instant PINs issued – online (306k); IVR (5k). It will deliver a reduction in calls and cost associated with mailing PINs via post.

What we did: Created a single FAQ database and reduced the content by 50%. The database now provides detailed MI which highlights areas to improve. Impact: Improvement of FAQs will be measured through customer ratings.

What’s planned: QR codes on all paper statements enabling convenient payment via Ping-It. Future Impact: Contributes to the target of 85% digital payments.

CMC/mybarclaycard Integration What’s planned: Deliver a seamless click-through customer journey between CMC and mybarclaycard dependent on customers’ account status and regardless of which digital channel they log into. Future impact: Contributes to the target of 85% digital payments.

20

(Over 100+ initiatives delivered)

Collections Contact Strategy

2

What we did: Created a phone app that provides a quick and easy way for customers to manage their credit card wherever they are. It enables them to view their balance and credit limit, pay their bill and view the last 30 transactions. Impact: 292k downloads, 206k registrations, 3m logins and completed payments worth £32million!

Net Promoter Score

Making the Basics Great

What we did: Moved to one contact method per day and segmented our customers into low, medium and high risk. We also stopped contacting customers’ on a Sunday. Impact: Total and FCA ‘Contact inappropriate’ related complaints reduced by c.50%.

Customer Journey Mapping What we did: Implemented a new programme to sequentially transform our customer journeys leveraging internal and external insight. Impact: It has enabled teams to identify ‘hot spots’ and improve our key customer journeys.

Barclaycard App

What we did: Delivered training and tools to all agents, empowering them to step outside of their usual servicing of an account. Agents can send a surprise gift to customers’ based on their specific circumstances and create that ‘Magic Moment’. Impact: c4k Magic Moments to date, with over 100 delivered every week. c.30 customers every week say how great we’ve made them feel!

What’s planned: Deliver the ‘Go To’ Fraud experience by improving the customer experience, reducing fraud levels and future proofing the business. Future impact: Automated recognition and tracking of known fraudsters and greater protection for fraud victims and exposed customers. Never decline a valid customer transaction. Flexible, real-time fraud solutions offering a seamless, channel agnostic experience.

Net Promoter Score

Net Promoter Score

Magic Moments

Service Incentive Model

Removal of Trailing Interest

What we did: Introduced a new ‘Customer Delight’ measure based on direct feedback from the customer (today’s TNPS) and reduced the weighting against sales performance. Impact: Change contributed to NPS increasing from 25 to 40.

What we did: The interest calculation was confusing for customers, difficult for agents to explain and was a driver of complaints. In partnership with our commercial teams Trailing Interest was stopped. Impact: Reduced associated L1 complaints by 77% and FCA reportable complaints by 50%.

Chordiant (CCCD) in UKRB branches

UK Complaints Escalation Desk

Created the ‘Fraud Care Team’

What we did: Enabled branch colleagues to use CCCD via their desktop to resolve customer’s queries at first point of contact. Impact: Excellent feedback: “What a great new system and user-friendly” Andrew Ling, Branch Manager. CCCD customer searches increased from 130 per week to 4k+.

What we did: Created a UK escalation team to support frontline Agents in complaint resolution and to prevent complaint escalation. Impact: Sales and Service FPOC resolution rate for 2013 is 96% compared with 88% for the same period in 2012.

What we did: Offered a tailored Fraud Care service to those who need it the most, including proactive contact for vulnerable customers, Premier and frequent users. It also provides a dedicated / named point of contact for victims of fraud. Impact: FCT agent CSAT scores increased from 80% to 90%. External relationships with the Police, Victim Support and Age UK have also improved.

Call Back Softkey

Knowledge Tree Transformation

Direct Debit Changes What we did: Reduced the Direct Debit (DD) setup time from 6 weeks to 9 working days and improved customer communication through revised agent and external communication. Impact: The changes reduced FCAR complaints by 50 per month.

FCA Reportable Complaints

47k

Super Servers

Super Servers Onshore

What we did: Created a Super Server team consisting of 40 of our best performing agents to handle our most complex calls. Impact: An average 12 point (28%) higher NPS versus normal agents. 40% better first point of contact fail rate (3 day). 30% better first point of contact fail rate (15 day). Reduced call transfers by 25%.

What we did: Delivered a robust, analytical view of the impact of onshore servicing. Routing key call types to onshore agents to provide significant uplift in NPS and improve operational efficiency. Impact: Early results show positive NPS uplift and fewer complaints escalated.

CMC Payment Solutions Website

Stopped Statements for Closed Accounts

What we did: Created an alternative online collections experience for customers that replicated the options presented within the call centre to grow our digital / self-serve capability. Impact: Delivered a 92% uplift in payments via our digital channels and reduced the number of payments collected by agents from 34% to 25%.

What we did: Proactively wrote off of balances <£5 for closed accounts. Impact: Prevented on-going statements and unnecessary customer contact.

FCA Reportable Complaints

Returned Statement Notification

-70% on Q2’12

What we did: Created a ‘Statement not received’ SMS to let customers know their paper statement had been returned. Impact: Encouraged customer to call and update their information and supported complaint reduction.

14k

Online Disputes Through mybarclaycard What we did: Improved mybarclaycard to allow access to historical transactions and provided customers’ with the ability to flag as fraud. Impact: 22% of Fraud cases now filed online with time to complete reduced from 5 days to 5 minutes.

UKC disputes What we did: Lombardi application development including upfront chargeback recovery decision and automated account remediation (eg: Block & Reissue or Write-off). Impact: Disputes reduced from 25 days to 5 minutes. Paper reduction of 60% for non-fraud and 40% for fraud. Next day customer refund enabled.

BUPLAS What we did: Launched an end-to end agent communication development programme. Agents are assessed and coached on the 5 pillars of BUPLAS – Pronunciation, Language, Discourse, Interactivity and Solution Generation – the key factors for call success or failure and strongly correlate to NPS. Impact: Front line colleagues develop natural sounding speech and clarity. Helps Agents apply interactive strategies and control a call in a more meaningful way.

FCA Reportable Complaints Knowledge Based Authentication (KBA)

Priority Line from UKRB to Barclaycard

What we did: Introduced an intermediary level of identification, asking questions generated from a customer’s credit file e.g. address history. Impact: Reduced the number of Barclays branch ID&V referrals by c.3000 per month and ‘ID&V’ related complaints by c.54%.

What we did: Created a bespoke telephone number to enable branch colleagues to bypass the IVR, connecting directly to an Agent. Impact: It improved the branch customer and colleague contact experience with Barclaycard. Over 2k calls per week are received.

Before Q4’11

Q4’11

What we did: Created a bespoke ‘Call Back’ Team to ensure all call back commitments were fulfilled. Impact: Over 700 Call Backs are made each month.

Q1’12

What we did: Redesigned, re-wrote and made navigation of the agent Knowledge Tree easier. Impact: Simplified the content and reduced the number of pages from 2,150 down to 792. The conversational ‘tone of voice’ text also supports agents in resolving customer queries in a human way.

Improved Agent Training

Speech Enabled IVR (Interactive Voice Response)

What we did: Designed and delivered a new induction programme ‘Making it in Barclaycard’ for agents and ‘Effortless Service’ for existing agents. Impact: Improved listening skills, empathy and focus on providing the right solution for customers. The training has supported the improvement in NPS scores.

What we did: Radical overhaul of the IVR by allowing customers to navigate via speech and touchtone. SEI also created the foundation for intelligent call routing. Impact: Agent CSAT scores increased from 83% to 89%. Call handling time reduced by 24.7s average, saving £0.7m per year. IVR CSAT increased to 68% from 41%.

Q2’12

Q3’12

Q4’12

Q1’13

9k

-38% on Q4’12

Q2’13

Q3’13

After Q3’13

Category Sponsor: Barclaycard

Barclaycard

Global Payments

Disputes Transformation

Making the Basics Great Improvement Strategy

Bringing customer sign-up into the twenty-first century.

Barclaycard customers’ lives have been made much easier, where unrecognised transactions need to be removed from their account. Streamlined, automated processes have reduced a paper form and 25-day wait to just five minutes either on the phone or online for 71% of customers. Customer satisfaction is up 23.6%

During the last 11 months Barclaycard have transformed their customer service experience by introducing their Making the Basics Great strategy and establishing a whole new mechanism to drive customer advocacy. Barclaycard have listened to their customers and have eliminated customer frustrations, increased their customer advocacy score and created deeply personal customer experiences!

In 2013, Global Payments revolutionised the customer experience by completely digitising their on-boarding, making a huge investment in simplifying life for new customers while radically reducing the number of failed applications.

MBNA

Nationwide

Santander UK

MBNA Essentials

Doing The Right Thing

Moments of Truth

MBNA Essentials is a range of pro-active digital communication tools designed to help customers stay in control of their accounts. Built in response to customer feedback, call listening and behavioural observations, MBNA have delivered significant customer journey enhancements as well as annual savings and £1.3m of fraud savings.

On all the measures they used, Nationwide’s customer services beat their opponents. But could they increase their lead through their programme ‘Doing the Right Thing?’ They listened to their customers and put in place changes they wanted. The result : record customer satisfaction.

Moments of Truth’ transformation is an ongoing program of work centred around bringing greater consistency to customer touchpoints across the different stages and teams involved in delivery of the customer journey. The associated project plan is designed around policy, process and people, and enhancements delivered already have seen a significant uplift in FRS score and a tangible reduction in complaint volumes. // Winter 2013

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Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Most Responsible Credit Card Lending Practices SHORTLIST Some things are better together

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With a current account you can apply for a Barclaycard (even if you’ve never had a credit card before)

Non-printing Colours

Non-print 1 Non-print 2 JOB LOCATION:

PRINERGY 3

Speak to a member of our team

Representative example

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05/06/2013 12:50

Barclaycard

CUK Finance Ltd and C Raphaels Bank

Nationwide

SAV Credit

Better Together

Shout! - The Launch of a new voice for responsible lending

Open Doors

aqua Credit Checker

Barclays and Barclaycard have created a package to help customers build their credit history responsibly with a Barclaycard Freedom Rewards card and a Barclays current account. Customers are carefully pre-qualified before being offered all the benefits of a Barclaycard while enjoying the freedom to manage their money responsibly.

In 2013, CCUK designed a new credit card, shout, with responsible lending at its heart. Not for PR – or compliance reasons, but because the customer value inherent in responsibility logically represents better business – higher customer suitability and referrals, lower churn and defaults. Results have surpassed all hopes, targets and expectations.

Nationwide invites all customers to walk through their Open Doors and see how many responsible lending initiatives they have introduced, covering the life of the credit card. Nationwide’s open-to-all approach is totally transparent and central to its lending practices, bringing rewards to Nationwide - and every cardholder.

aqua is the UK’s leading specialist credit card provider offering credit to consumers not served by High Street Banks. aqua passionately believe in making credit work for more people and they have actively invested in valuable customer benefits to make good credit more accessible.

Best New Debit Card Programme of the Year SHORTLIST THE BANK OF ME AND MY Current Account All you need to know ABOUT your NEW current account and switching to KBC.

KBC Bank Ireland plc is regulated by the Central Bank of Ireland.

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KBC Bank

Nationwide

Royal Bank of Scotland Group

The Bank of You

FlexPlus Account

Cashback Plus “ Feel rewarded every day”

KBC Bank Ireland has delivered a current account and MasterCard Debit card which represents an ambitious new bank strategy to be the financial partner of choice for over a half a million Irish customers. Quality, innovation, accessibility and control underpin this proposition.

Packaged Current Accounts have had a bad press but Nationwide thought there was room for one with market-leading benefits and pricing that was very simple to operate. So it has proved - Nationwide’s FlexPlus account, with its feature-packed Visa cards at the core, has provided massively popular with customers and industry experts.

The challenge of current account retention/ acquisition increased this year with account switching legislation. Our response: the UK’s simplest customer loyalty programme – Cashback Plus. Just use your Visa debit card to earn 1-20% cashback. No fees, minimum deposits or catches – no wonder 400,000+ customers activated in eight weeks.

// Winter 2013


Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best New Prepaid Card Product of the Year

SHORTLIST

Category Sponsor: Contis Financial Services

easyJet and Raphaels Bank with Payment Card Technologies

Payment Card Solutions and IDT Financial Services

Motonovo Prepaid Card with Performance Bonus

The Euro Currency Card by easyJet

The Bread4Scrap Prepaid Card Solution for the Scrap Metals Industry

Contis with Performance Bonus have transformed the sales incentive programme of MotoNovo Finance. The new scheme met all commercial and marketing objectives, achieving major positive impact, driving commission earnings, dealership profits and clear market differentiation. It has generated £1m+ in paid rewards and 288% in month-on-month sales achievement.

PCT delivered easyJet’s first prepaid currency card in May 2013. Initially the card was offered to all easyJet customers from its extensive CRM database. To further leverage the brand, this was followed by external promotion of the card via comparison sites, to all holidaymakers looking for a great value card.

Brought to market in December 2012, the Bread4Scrap solution addressed a UK legislation change within the Scrap Metals industry that effectively banned the use of cash in the supply chain. It has been widely adopted within the industry with thousands of cards reused on a daily basis.

STA and IDT Financial Services with Tuxedo Money

Travelex and Raphaels Bank

Tuxedo Money and IDT Financial Services

STA ISIC Cashcard

Multi-currency Cash Passport

Eccount Money

The ISIC Cashcard is the only combined affinity, international ID and travel card. Launched in June 2013, the STA ISIC Cashcard gives STA its own travel and International ID affinity card. The card is for students and offers a prepaid cashcard plus an internationally recognised student ID and discount card – a UK first.

The considered approach taken in developing Travelex’s Multi-currency Cash Passport has led to a product which successfully bridges the gap between customer and business needs. Key features of the card include the functionality to load up to seven currencies on the card and move funds between currencies.

eccount® money, is designed to give the 1.5million “unbanked” in the UK a credible alternative to a high street bank current account. The account is available to everyone (18+, UK resident) regardless of current or past credit history. Since launch, over 27,000 applications have been received.

// Winter 2013

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Card & Payments World // www.cardworldonline.com

The Card & Payments Awards - Shortlist Best New Credit Card Product of the Year

SHORTLIST

Category Sponsor:

30

Capital One

Emirates Skywards and MBNA

Aspire World Travel

Emirates Skywards Credit Card Account Etihad Guest Credit Card Account and Emirates Skywards Elite Credit Card Account.

Capital One created the Aspire World Travel credit card to meet the changing needs of consumers throughout the year by offering a unique combination of benefits: cashback without time-limits/ restrictions and its zero forex fees benefit is for the life of the card.

The recently launched Emirates dual credit card is an innovative new programme that enables Customers to enhance their Skywards membership by maximising their opportunity to earn Skywards miles. This innovative product delivers a package of market leading benefits to maximise the value customers receive for spend on their credit card.

// Winter 2013

Etihad Guest and MBNA

The recently launched Etihad credit card is an innovative new programme that enables Customers to enhance their membership by maximising their opportunity to earn Guest miles. This innovative credit card programme delivers a package of market leading credit card benefits to maximise spend and loyalty on the card.


Card & Payments World // www.cardworldonline.com

Feature

What are the implications of PSD2? PSD2, the European Commission’s second Payment Services Directive contains an interchange cap, more consumer protection and greater regulation for new players. It has been scheduled for early 2014, although some experts, including lawyers Eversheds are suggesting this date is unrealistic.

//W

hen it finally arrives, PSD2 has been tasked with promoting the emergence of new payments players and the development of “innovative mobile and internet payments in Europe for the sake of EU competitiveness worldwide.” The EC also wants to regulate new payment services providers (PSPs) to the same “high standards of regulation and supervision” as all other payment institutions.

(e.g. in case of disputed and incorrectly executed payment transactions). Consumers may be required to face only very limited losses – up to a maximum of €50 (vs €150 currently) – in cases of unauthorised card payments. - Increase consumer rights when sending transfers and money remittances outside Europe or paying in non-EU currencies.

Internal Market and Services commissioner Interchange Michel Barnier said the proposed changes A cap is planned for interchange fees at were needed as the payment market in the 0.2% for debit card and 0.3% for credit card EU “is fragmented and expensive” with a to accept them or to surcharge for them. transactions in all EU member states. The cost of more than 1% of EU GDP or €130bn This flies in the face of the Visa and caps will initially only apply to cross-border a year. MasterCard honour all cards rule which is transactions, before being applied to all Biggest losers written into most merchant contracts. transactions after 22 months. The payment networks claim that the Separation The interchange reforms are likely to most proposed changes could reduce card use Confirmation is contained in the PSD2 heavily impact the markets in Poland and that merchants will keep the money proposition that payment card schemes and (where debit card charges average 1.6%) they save from cuts in fees rather than pass the entities that process transactions and Germany (where the average credit them on to consumers. MasterCard should be legally separated. This has been card interchange rate is 1.8%). commented that “history has shown that part of the EC’s SEPA plans for some time. Payment Services Directive the biggest losers in the event of The EC says the review of the EU payments In addition to enabling the market entrance interchange regulation are consumers and framework, especially the Payment of new payments players, the EC says its small businesses. We have seen this Services Directive (PSD), and the responses revised Directive will also facilitate and happen in Australia, Spain and the US,” but to the Commission’s Green Paper ‘Towards render more secure the use of low cost this was hotly denied by commissioner an integrated European market for card, internet payment services. It adds the PSD Michel Barnier. internet and mobile payments’ in 2012, led will include within its scope new “payment The regulation on interchange fees, to the conclusion that further measures initiation services” that operate between combined with the revised PSD, will ban and regulatory updates, including the merchant and the purchaser’s bank, surcharges imposed by merchants for card adjustments to the PSD, are required. allowing for cheap and efficient electronic use, such as for purchase of airline tickets. payments without the use of a credit card. Almost every bank account holder in the EU The EC said that, when interchange fees possesses a debit payment card and 40% The EC says the revised PSD is required as are capped for consumer cards, retailers’ also own a credit card. 34% of EU citizens recent market developments have costs for card transactions will be shop on the internet and more than 50% highlighted certain gaps in the current substantially reduced and surcharging will possess a smartphone giving them the legal framework for payments and market no longer be justified. potential to make mobile payments. failures in the card, internet and mobile Three party schemes payments sectors that need to be But change is relentless and already there Premium cards and three party schemes, addressed. are initiatives emerging not covered by such as American Express and Diners are PSD2. Bitcoin for example. Virtual The EC says other measures in the so far excluded from the PSD2 regulations, currencies don’t get a mention, yet there is Directive will: but it woud be surprising if they remain already this, and Amazon Coin and outside of the rules indefinitely. An - Better protect consumers against fraud, American Express rewards points for important change is that the proposals possible abuses and payment incidents payment. How soon PSD3? include the option for merchants to refuse

// Winter 2013

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Card & Payments World // www.cardworldonline.com

Feature

Tapping the Big Data potential // Q1: What does Big Data mean in the payments realm?

TSYS has produced a white paper entitled “How Card Issuers Can Leverage Big Data to Improve Cardholder Retention Efforts”. It analyses the reasons why financial institutions (FIs) have been slow in their use of data for customer analytics, and offers suggestions that spend trends and transaction characteristics can help FIs be far more clever in making offers to customers as a retention strategy. The white paper concludes that leveraging Big Data can improve the overall customer experience, drive loyalty and ultimately increase revenue through offering better targeted promotional offers. Card & Payments World explores this and the other concepts from the white paper with Rob Hudson, senior director, client management for TSYS.

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// Winter 2013

A: It means different things to different stakeholders in the payments value chain, but the basics that apply to all are the premise of the three Vs: Volume, Velocity and Variety. Volume refers to the amount of the data available for analysis whereas velocity deals with how quickly it is analysed. In today’s payments environment this requires real-time instead of batch. Variety is perhaps the most intricate in that we are now coupling structured data from known, static fields – think of name, account number and balance – to more dynamic data such as that found in social media which cannot be as easily mapped using traditional mining tools.

decision making. It’s about delivering on the concept of many markets of one and fine-tuning models and cost analyses. But organisations should always be mindful that using Big Data for its own sake without applying it to a specific need will result in wasted resources and false starts.

// Q2: There is a lot of information about Big Data already in the market. Why did you write this paper?

// Q4: Big Data is the wave of the future and always will be. Can you compare and contrast its promise and its current state?

A: There is indeed a lot of buzz about the topic, and most of the analysis is on those that have already mastered it—the likes of Google, Amazon, Facebook and Apple. When we talk to our clients and the market at large however, there is a palpable concern about being left behind that is coupled with a greater fear of a major investment and having no tangible output at the end of it. We want to dispel some myths. There are some initial steps issuers can take towards Big Data that can yield significant results without outlandish risk. But we don’t recommend delving into Big Data simply for its own sake. Specifically for card issuers, better use of data represents an opportunity to address strategic goals of filling revenue gaps posed by threats to interchange by optimising cardholder retention activities.

A: In many instances, there’s a simple failure to launch, as Big Data encompasses so much. Big Data can be intimidating, as folks know that it’s about marrying both structured and unstructured data. Social media data is often held in an unstructured format, unsuitable for storage in traditional table based relational databases where it’s organised in a direct relationship populated by static fields. There are new software tools and frameworks in the market that provide for a file system rather than traditional table based storage. This enables strings of data – such as a tweet or text message – to be stored in a file system that can cope with volume and the need for analysis. But in many instances, this is jumping to a refinement stage before addressing areas where the vast majority of lift from a Big Data programme would come from.

// Q3: Why havent more issuers cracked the code on Big Data? A: There are many FIs that need to better understand the uses of data and how to deploy a Big Data initiative effectively. They need strategies for acquiring, organising, and analysing volumes of data so they can use it to improve their

// Q5: So how do issuers start taking advantage of Big Data? A: Before bringing in consultants and investing (in for example, expensive server farms specially configured to chew through unstructured data to fully pursue


Card & Payments World // www.cardworldonline.com

Feature third-party Big Data streams to the nth degree), issuers should first develop initial programmes using more manageable data sets. FIs can realise the most significant returns by taking advantage of their current data points, such as customer and transactional data. The biggest uplift will come from managing the data to which issuers already have routine access but aren’t using optimally. Once issuers make true inroads with the basics, they can enact later-stage initiatives to address the remaining marginal opportunities yielded by less structured data like that from social media. Jumping to the refinement stage without mastering the basics will yield less significant results and divert resources from pursuing the greater opportunity. // Q6: What budgeting guidelines does TSYS offer its issuing clients interested in launching Big Data? A: In the paper we are adamant that issuers first identify the types and variety of available data they can use, but always with a focus on how it can help them reach their business goals. Budgeting at the initial stages is surprisingly straightforward. From a human resource perspective, FIs can leverage existing internal staff, such as database administrators, market intelligence analysts and report writers. There is no immediate need to purchase external data feeds. The most important data at the onset is in the issuers’ processing platform database. // Q7: How can firms accelerate their Big Data drives to increase retention rates? A: Principally, by identifying and meeting cardholders’ individual needs more readily. Until recently, issuers have reached the upper limits on how well they could deliver on the concept of many markets of one, whereby they can segment their cardholder base to only a certain, limited extent. By developing more sophisticated models to anticipate cardholder needs and enabling clients to engage their cardholders at the most opportune time and through their preferred channels, TSYS is putting people at the centre of payments, and ultimately strengthening the bond between issuer and cardholder.

Big Data is a scary place for some The TSYS White Paper on Big Data suggests that Financial Institutions are nervous about investment in Big Data initiatives, even though the model is well tested by retailers. Rob Hudson, senior director, client management for TSYS, explains that there is caution because of concern over the unknown, in terms of being able to estimate how much investment will be needed in the future and what the commitment is. He said: “We suggest to FIs (financial institutions) that they should take it in stages. First we need to help them get to the stage where we can collect data. FIs will then see the advantage. It is worth looking at emerging financial services propositions to see how effectively data analysis is used. Some have made great progress.” Richard Hamilton, product consultant for TSYS agreed that retailers have the edge when using data to advantage. “Financial Institutions are Richard Hamilton, product consultant for TSYS concerned about data regulation, and they have a different mindset to towards data,” he said. In defence of Financial Institutions, Hudson said: “Many players won’t have a clean canvas, there are multiple brands, legacy systems and historic silos dependent upon how the business has evolved. It is very complex and a huge problem. New entrants with less legacy are likely to find the task of adding layers of data usage less complex, in some cases simply like adding another Lego brick!” Big Data would ultimately give financial institutions the ability to achieve a single view picture of a customer, but Hudson admits it is a goal for the future. “It is still aspirational. To gain analytics on activity that is only a day old is achievable on processing for example, but it will take time to achieve this across the whole business. There is a huge amount that is available. We can help them understand what parts are of benefit and valuable, and then get rid of the rest.” Hudson stressed the importance of taking one step at a time. “We suggest to clients that they ask one question about every single piece of data we provide, and then this will lead to a route map of where they want to go next.” In terms of limitations, he commented: “We understand that financial institutions are highly diverse. Collecting payments data is an important first step, and then onto helping collect insurance and mortgage data too. We could apply a lot of good principles to additional data. First though, we have to convince our customers of the value of the data they have available to them now.”

// Winter 2013

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Card & Payments World // www.cardworldonline.com

Movers & Shakers // VeriFone appoints Galant as new CEO POS system manufacturer VeriFone has appointed Paul Galant as its new CEO. Galant, 45, had previously been the CEO of Citigroup’s Enterprise Payments operation since 2010, and he faces the task of stabilising VeriFone’s business in a rapidly changing multichannel payments market. He replaces VeriFone chairman Richard McGinn who has been interim CEO since the sacking of former CEO Doug Bergeron in March.

// Michael Pirker takes up new paysafecard role Michael Pirker has taken up the newly created role of head of business development at Viennabased prepaid and digital solutions provider paysafecard. His range of duties includes strategy and operations for continued revenues increase in newly opened markets, as well as expansion into new countries. Prior to joining paysafecard he founded the online platform Cambeo, and has also worked as a programme manager (including at Google and DoubleClick) and as a software developer.

// Ex-PayPal exec joins Intelligent Environments Digital banking software company Intelligent Environments has appointed former PayPal executive Deborah Davis as non-executive director to provide strategic oversight. Davis has over 25 years of technology experience with 14 years in vice president roles at PayPal, eBay, Verizon Business and Symantec.

// Alexander returns to mobile Virgin Mobile founder and former Everything Everywhere CEO Tom Alexander has joined Viacloud, a company providing mobile services, as non-executive chairman.Alexander has been appointed as non executive chairman. The company said Alexander will use his leadership experience in the mobile industry to assist with commercial expansion based upon its scalable mobile infrastructure for MVNOs and brands. His appointment follows the recruitment of a new executive team at Viacloud, which includes Emanuele Angelidis (CEO) and senior management including Tim Stone (CCO), Jon Kandiah (CTO), and Richard Schaefer (CFO).

// Identive names Jason Hart as CEO Identive Group has appointed Jason Hart as chief executive officer and director. Hart replaces Ayman Ashour, who has resigned his executive role at the US-based ID and security solutions company, but will remain on the board as non-executive chairman. No reason has been given for Ashour stepping down as CEO. Hart, who takes up his position with immediate effect, previously served as executive vice president of Identive’s Identity Management and Cloud Solutions division.

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// Winter 2013

// First Data recruits new co-general manager for EMEA Payments processor First Data has appointed Marc Overton as co-general manager of Europe, Middle East and Africa (EMEA) and head of the region’s retail payments solutions business. Overton will work alongside Roger Bracken, co-general manager and head of the financial services business, for the region and both men will report in president of the international regions, John Elkins. Overton joins First Data from EE, the company that runs Orange and T-Mobile in the UK, where he was VP of wholesale and machine to machine (M2M). Prior to this, he held senior roles at leading mobile and telecommunications companies including Orange, Wanadoo and Three (Hutchison 3G).

// Michael de Jongh joins Judo Payments Judo Payments, a UK card payment technology provider for mobile apps, has appointed Michael De Jongh as vice president for sales and marketing. He was previously global head of sales for mobile billing and payments at Syniverse. Before that De Jongh worked as a sales director for Antenna software, and he has also worked as director of sales at Sybase 365 managing mobile commerce sales across Europe, Middle East and Africa.

// MasterCard appoints Thailand and Myanmar country manager MasterCard has appointed Antonio Corro as country manager of Thailand and Myanmar. Based in Bangkok, Corro will focus on driving the company’s expansion strategy for Thailand and Myanmar. He takes over from Gregg Hirano. He was previously country manager of the IndoChina region overseeing Vietnam, Laos, Cambodia and Myanmar.

// Andrew Gilchrist joins VocaLink Payments system provider VocaLink has appointed Andrew Gilchrist as corporate development director. Gilchrist will be responsible for strategic relationship development, M&A and innovation investment initiatives. Gilchrist joins VocaLink from Optimal Payments where he was executive VP, corporate affairs, responsible for expanding the corporate development business unit. Prior to that, he managed corporate transactions, IPOs and strategic alliances working for HSBC Investment Bank and Cannacord Genuity in London.

// Secure Electrans appoints executive chairman Payment solutions developer Secure Electrans has appointed former Barclays secure transaction payments expert Kevin Coles as executive chairman. Coles has over 41 years’ experience in the credit card industry and has advised several large institutions on business strategies and proposition development including Visa, HSBC, CBA Australia, Unicredit and Bank of Ireland.


Card & Payments World // www.cardworldonline.com

People

Events // Nordic Card Markets and Future Payment Solutions

// IFINTEC International Finance Technologies Conference and Exhibition Date & Location: 8-10 April 2014 – Istanbul, Turkey www.ifintec.com

Date & Location: 20-21 January 2014 – Copenhagen www.smi-online.co.uk/2014nordiccard5.asp

// PCI London

Date & Location: 23 January 2014 – London www.pci-portal.com/event/pcilondonjan14

// The Card & Payments Awards

Date & Location: 6 February 2014 – London www.cardandpaymentsawards.com Now in its ninth year, this prestigious industry event is highly regarded and enjoys great support from all elements of the industry. The Card & Payments Awards recognise customer service, excellence and innovation in the UK and Irish card and payments industries. They are open across the different categories to credit, debit, prepaid and charge card issuers, co-brands, merchant acquirers and other payment service organisations in the UK and Republic of Ireland.

// CEE and CIS Card Markets and Future Payment Solutions Date & Location: 9-10 April 2014 – Sofia www.smi-online.co.uk/finance/europe/cee-card-markets

// Prepaid Expo Europe

Date & Location: 17-18 April 2013 – London www.iirusa.com/prepaideurope/welcome

// Cartes America

Date & Location: 13-15 May 2014 – Las Vegas www.cartes-america.com

// The Loyalty Awards 2014 // MPE (Merchant Payments Ecosystem)

Date & Location: 18-20 February 2014 – Berlin www.merchantpaymentsecosystem.com The Merchant Payments Ecosystem (MPE) is the biggest international payment acceptance event and community. Both the event and the online groups are populated not just by European payment experts but are increasingly attracting more and more acquirers, ISOs and PSPs from US and Asia.

Date & Location: 10 June 2014 – London http://theloyaltyawards.com

//PayExpo

Date & Location: 10-12 June 2014 – London www.payexpo.com/

// SDW 2014 // Mobile World Congress

Date & Location: 16-18 June 2014 – London www.sdw2014.com

Date & Location: 24-27 February 2014 – Barcelona www.mobileworldcongress.com

// Connect:ID

Date & Location: 17-19 March 2014 – Washington DC www.connectidexpo.com

// Cards & Payments Africa

Date & Location: 18-19 March 2014 – Johannesburg www.terrapinn.com/exhibition/cards-and-payments-africa/index.stm

// Internet of Things World

Date & Location: 17-18 June 2014 – Palo Alto, Silicon Valley, US www.iotconnectevent.com

// Digital Services World Congress

Date & Location: 18-19 June 2014 – London www.digitalservicescongress.com

// Innovative Cards & Payments

Date & Location: 20-21 March 2014 – Brussels www.icbi-events.com/FKP2354CPWW

// The Mobile Innovations Awards

Date & Location: 8 July 2014 – London www.themobileinnovationsawards.com

// Winter 2013

35


Card & Payments World // www.cardworldonline.com

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// Winter 2013


Card payments world shortlist 2013