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

Ingenico ePayments in Russia

Gaining access to the largest number of alternative payment methods to Visa, Mastercard, and other global card brands is an increasingly important way acquirers and payment service providers (PSPs) help merchants increase sales outside their native country. To boost sales in Russia, global merchants want access to Mir, the country’s domestic-only card program. 

Ingenico recently became the first international PSP to offer merchants the opportunity to accept payments from the 47 million Mir cards in circulation as on-us domestic payments, which improves authorization rates. It did so by connecting to acquiring banks in Russia—Sberbank, VTB, Alfa Bank, and Tinkoff Bank. Ingenico reaches those acquirers through a Russia-based information technology and gateway provider.

Global merchants connect to Ingenico through a single link to reach the four local acquirers. Ingenico has a routing engine that identifies the Mir card and pushes the transaction to the card-issuing bank, which makes them on-us transactions. That process increases by 2% to 3% the authorization rates for merchants and it lowers per-transaction costs. 

Mir cards can only be authorized by a domestic bank. Of the 47 million Mir cards in circulation, more than 30 million have been issued to government workers. More than 3 million Mir cards are expected to come into circulation each month this year. 

Before setting up the link with the domestic gateway provider, Ingenico, which supports more than 500 large global merchants, had been processing global card payments initiated in Russia using non-Russian acquirers to handle authorizations. Other PSPs and acquirers that handle transactions initiated by global brands in Russia do the same. If they want to handle Mir card transactions, they set up a link to individual banks. 

Having a payment authorized in Russia by a local acquirer helps global merchants with issues including value-added tax, repatriation of funds remitted locally, and domestic laws regarding storage of personal data. Ingenico focuses on authorizing travel industry, video game, and retail merchants, including China-based marketplaces, interested in reaching Russian consumers. 

Mike Goodenough is Head of Strategic Initiatives at Ingenico in Hoofddorp, Netherlands, 31 (0) 6301-58185, mike.goodenough@ingenico.com, www.ingenico.com.

© Copyright 2018 The Nilson Report