The Nilson Report

Issue 1145 | Jan 2019


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FEATURED COMPANIES

Companies featured in this issue include:

Credit Card Outstandings in the U.S.

Visa Wants B2B Cross-Border Payments Company

Card Transactions Projected Worldwide

Self-Sovereign Identity Using DLT

Pine Labs Merchant Services

IATA Financial Services

Fingopay Vein ID Biometric Authentication

Ingenico ePayments in Russia

Investments & Acquisitions—December 2018

MoreFun POS Terminal

EMV Solution for Gas Pumps

JCB QR Code Payments in Asia

Citi Rewards+ Credit Card

Mastercard Streamlines Corporate Logo

U.S. General Purpose Cards, Outstandings vs. Purchase Volume

Investments & Acquisitions—December 2018

Projected Growth of Purchase Transactions Worldwide

Outstandings as a Percentage of Purchase Volume on U.S. General Purpose Cards 1990-2018

Investments & Acquisitions—December 2018

A total of 43 acquisitions, joint ventures, and investment transactions occurred in 12 countries in December 2018. The top five deals with disclosed values are listed below.

1. 1. Earthport, United Kingdom
Visa, $252.0 mil.
2. 2. Plaid, United States
Series C, $250.0 mil.
3. 3. Earnin, United States
Series C, $125.0 mil.
4. 4. Danal, South Korea
Boku, $112.0 mil.
5. 5. Cross River Bank, United States
Venture round, $100.0 mil.

Full access to the Investments & Acquisitions—December 2018 table is available when you subscribe to The Nilson Report.

POSTED JAN 17, 2019 | PRINT

IATA Financial Services

The International Air Transport Association (IATA), the trade organization of 290 airlines worldwide representing more than 80% of all air traffic, processed $480 billion in payments last year through the IATA Financial Settlement System. Those payments included remittances from travel agencies to airlines, payments between airlines, payments by freight forwarders for shipments of cargo, and payments to airports and air navigation providers. 

The IATA helps airlines lower payment acceptance costs in multiple ways. The on-time settlement rate of IATA’s Billing and Settlement Plan for 400 participating airlines is 99.999%. The IATA Financial Gateway consolidates different sales payment processes across various distribution channels and networks. IATA EasyPay is a recently launched business-to-business wallet product available to accredited travel agents for the purchase of tickets through IATA’s Billing and Settlement Plan. 

IATA Pay is the association’s latest financial services initiative. It is aimed at consumers who buy tickets directly from an airline website. Transactions are direct debits initiated from the consumer’s bank account and deposited into the bank account of the airline. IATA Pay will offer lower costs to airlines versus card payments as well as a higher level of security. Airlines should also experience faster cashflow and fewer lost sales.

The first IATA Pay ticket purchases took place in December 2018 in the U.K. Cathay Pacific, Scandinavian, and Emirates were among the airlines participating in the test of IATA Pay. Transactions were facilitated by ipagoo, a nonbank payment service provider. Ipagoo is the first nonbank payment service provider that is a direct participant in Chaps, one of the largest high-value payment systems in the world.  

The IATA Pay test was possible under the U.K.’s Open Banking framework that, along with the European Commission’s second Payment Services Directive (PSD2), encourages faster and more secure access by consumers to their funds on deposit.

IATA Pay will be tested in Germany in March 2019, with Deutsche Bank acting as the payment initiator. The IATA will compare the bank’s service versus ipagoo’s to see which kind of third-party provider partner it prefers to support rollout of IATA Pay. 

Jose Antonio Rodriguez is Director of Operations, Financial and Distribution Services at the IATA in Geneva, Switzerland, 41 (22) 770-2525, rodriguez@iata.org, www.iata.org

Prior issues: 873, 620

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