The Nilson Report

Issue 1150 | Mar 2019

FEATURED COMPANIES

Companies featured in this issue include:

Canada Market Shares of Purchase Volume

Canada General Purpose Cards 2018 vs. 2017

Purchase Volume in Canadian Dollars 2014-2018

General Purpose Credit Card Issuers in Canada 2018—Ranked by Outstandings 2018

Market Shares of Visa & Mastercard Outstandings in Canada 2018

Second 50 Largest Visa & Mastercard Credit Card Issuers in the U.S.—Ranked by Outstandings 2018

Payment Industry Firms with Market Capitalization Greater than $1 Billion

The 44 payment industry firms worldwide with market capitalization greater than $1 billion are ranked on page 12. The four largest are shown here.

1. 1. Visa
$342.52 billion
2. 2. Mastercard
$240.96 billion
3. 3. PayPal
$121.63 billion
4. 4. American Express
$92.08 billion

Full access to the Payment Industry Firms with Market Capitalization Greater than $1 Billion listing is available when you subscribe to The Nilson Report.

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POSTED MAR 29, 2019 | PRINT

Mastercard Offers Open Banking Hub

Open banking lets third-party service providers (TPPs) connect to application programming interfaces (APIs) available from financial institutions. Those APIs give access to the available balance in a bank account, transaction histories of a bank account, or access into a bank account to move funds.  

   The European Commission’s PSD2 regulations, which will go into full effect in September 2019, compel banks in the European Economic Area (EEA) to provide regulated third-party service providers with access to data and payment attributes. PSD2 was the catalyst for Mastercard to create an Open Banking Hub. It sees an opportunity to act as a trusted intermediary between banks and TPPs, similar to the position it holds between issuers and acquirers in card payments. 

Mastercard has selected Token.io as one of the technology providers for its upcoming Open Banking Hub. 

Token.io software will support the connectivity layer Mastercard will offer retailers, gateways, portals, and other TPPs operating in the EEA. 

Under PSD2, TPPs can be account information service providers (AISPs) or payment initiating service providers (PISPs).

Token.io software gives developers at AISPs and PISPs a single interface to connect to a bank’s APIs to access data and payment attributes. 

Open banking gives PISPs the ability to look into a bank account in real time to confirm the availability of funds before a payment is submitted. Mastercard’s hub will save PISPs and AISPs from needing to create independent connections to every financial institution they need to reach. Mastercard will only allow TPPs licensed by a national regulator to use its hub. It will provide financial institutions with real-time validation of any TPP, including those not connected to its hub, confirming it has an up-to-date license from a national banking authority. Mastercard will also provide a dispute resolution capability for open banking payments and data transactions. It is expected that most open banking transactions will concern data, not payments. 

Token.io as well as other open banking software providers operating in Europe, including TrueLayer, Figo, and BankBridge, can also function as aggregators of “push payments” to banks. These are authorized payments sent from a consumer’s or business’s bank account to a recipient’s bank account.

All Token.io transactions are digitally signed for added security.

Jim Wadsworth is Senior VP, Open Banking at Mastercard in London, U.K., jim.wadsworth@mastercard.com, www.mastercard.com.

Steve Kirsch is Chief Executive Officer at Token.io in San Francisco, California, stk@token.io, www.token.io.

© Copyright 2019 The Nilson Report

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