u.s. v&mc credit cards — midyear middle east/ africa · pdf filetop issuers in...

PAYPAL ON THE DISCOVER NETWORKThe establishment of PayPal as an in-store payment option at the more than 7 million U.S. merchant locations linked to the Discover Network will begin with a large beta test in the first quarter of

U.S. V&MC CREDIT CARDS — MIDYEARThe top 100 U.S. issuers of Visa and MasterCard credit cards ranked by outstanding debt at June 30, 2012 and by total volume for the first six months of this year are shown on pages 8 and 9.

U.S. MERCHANTS DEVELOPINg MObILE PAYMENT APPMerchant Customer Exchange (MCX) is a newly formed limited liability corporation linking large merchants intent on bringing a new mobile wallet to the U.S. market. The wallet will work with

TRACKINg STOLEN CREDIT CARD DATAHackers who steal card account data sell it in forums on the Internet to other criminals who believe they can create counterfeit cards and/or buy goods online that they can then resell for cash.

TOP ISSUERS IN MIDDLE EAST/AfRICA The Middle East/Africa region’s 50 largest card issuers ranked by purchase volume for goods and services on Visa, MasterCard, Maestro, American Express, and Diners Club credit, debit, and prepaid consumer and commercial cards generated $152.02 billion in purchase volume on 100.6 million cards.

These issuers represented 16 countries. The highest spending in the region came from the 3 issuers from Israel with $54.84 billion in purchase volume from 7.4 million cards, equal to $7,414 per card. South Africa had 6 issuers in the group that collectively accounted for $45.99 billion in purchases at merchants from 53.8 million cards for an average of $855 per card. Saudi Arabia had 8 issuers that accounted for $19.68 billion from 12.3 million cards or $1,594 per card. Kuwait had 6 issuers that accounted for $14.69 billion from

INSIDE: Fast Facts P 2-4

CHARTS: tOP 100 U.s. VIsa/MastERcaRD cREDIt caRD IssUERs RaNKED BY VOLUME, OUtstaNDINGs P 8, 9 MIDDLE East/aFRIca tOP IssUERs — cREDIt, DEBIt, GENERaL PURPOsE/VIsa/MastERcaRD P 10,11

fUNDINg VIRTUAL CURRENCY WITH PREPAID CARDSPlastic Jungle has been offering an online marketplace consumers use to sell and buy private label prepaid cards since 2006. It makes money on the spread between what it pays to acquire an

fICO TO ACqUIRE ADEPTRAAdeptra, operator of a software-as-a-service platform used by 31 of the 50 largest banks in the world to reach their customers using voice, SMS, email, and other communication channels,

VISA POS ENCRYPTION SERVICE In the second quarter of 2013, Visa Inc. will offer a point-to-point encryption service to protect payment card data in the U.S. Between now and then the software application will be

Top Card Issuers2011

MIDDLE EAST/ AfRICA

AUGUST 2012 Issue 1,001For 41 years, the leading publication covering payment systems worldwide.

© HSN Consultants Inc. 2012 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is a copyright violation subject to substantial fines. Yearly Subscription for 23 print and electronic issues is $1,295. ISSN 1087-8718THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA • PHONE (805) 684-8800 • FAX (805) 684-8825 • [email protected]

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Freemonee network, provider of consumer gift incen-tives tied to credit card usage, has received $34 million in Series B funding led by Charles Ryan, Chairman of UFG Asset Management. Redpoint Ventures, Sutter Hill Ventures, Opus Capital Ventures, and Pinnacle Venture also participated. The company has raised a total of $45 million. Jim Taschetta is CMO at FreeMonee, (650) 353-7269, [email protected], www.freemonee.com.

kAiku FinAnce now offers the reloadable KAIKU Visa prepaid card. Cardholders will receive $10 when a referral activates and spends at least $100 on the new card, which is issued by First California Bank. Jon Round is CEO at Kaiku Finance, (805) 413-4320, [email protected], www.kaiku.com.

the BAncorp inc., based in the U.S., plans to acquire the MyCardData technology platform, Easybuy website, customer contracts, and other assets of Transact Network, based in Gibraltar. Terms were not disclosed. The deal is expected to close by the end of the third quarter of 2012. Transact Network has issued over 1 million prepaid cards since 2006. Bancorp is the 2nd largest prepaid card issuer in the U.S. Jeremy Kuiper is Managing Director at Bancorp Payment Solutions, (605) 988-3135, jkuiper@ thebancorp.com, www.thebancorp.com.

AmericAn express reloadable prepaid cards are now being sold at 7,200 Walgreens drugstores nationwide. Dan Schulman is Group President, Enterprise Growth at Amex, (212) 640-2000, [email protected], www.americanexpress.com.

THE NILSON REPORTNUMBER 1001 August 2012 - 1 -

ATPS ASiA-PAcific 2012Two-Day ConferenceSeptember 18-19, 2012The Crowne Plaza Mutiara HotelKuala Lumpur, Malaysia

Subscribers to The Nilson Report will receive a 20% discount (for new bookings).

Topics include: fraud prevention, alternative forms of payment, mobile payments, and credit card merchant costs. Speakers represent: Air New Zealand, PayPal, European Airline Fraud Prevention Group, WorldPay, Finnair, Visa, CyberSource, and more. Cost starts from $399 for airlines/travel providers and $799 for industry suppliers. Contact Michael Smith at Airline Information for discount code, 44 (141) 416-0800, [email protected]. Register at www.atpsapac.com.

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wells FArgo smAll Business DeBit purchase volume in issue #998, page 11, should have been $19,961.8 mil. (up 17%), making it the largest issuer of small business debit cards in the U.S. Brenda Yost is SVP, Debit Card Marketing and Product Management, (415) 222-5556, [email protected], www.wellsfargo.com.

BRAINTREE, provider of a payments gateway to over 2,000 online and mobile merchants, will pay $26.2 million to acquire Venmo, provider of a person-to-person and digital wallet mobile application. Venmo expects to be processing $250 million annually by the end of 2012. Bill Ready is CEO at Braintree, (312) 257-2300, [email protected], www.braintreepayments.com.

resource 1, a provider of consulting services, will jointly market its services to users of HP NonStop computer systems in the U.S. and Canada with BPC Banking Technologies, provider of SmartVista, an integrated suite of software products for transaction processing and card management. Marc Solomon is SVP No. American Sales at BPC-USA, [email protected], (770) 625-5050, www.bpcbt.com. Gary Moore is Managing Partner at Resource 1, (630) 575-5131, [email protected], www.resource1-tandem.com.

sentinel BeneFits & FinAnciAl group, an employee benefits consulting and administration firm, has released a mobile app that lets flexible spending account debit card customers scan barcodes to determine if health-related products can be purchased using pretax dollars through a reimbursement plan. Sentinel serves more than 3,000 businesses. John Carnevale is CEO, (781) 914-1200, [email protected], www.sentinelgroup.com.

truAxis can now provide merchant-funded rewards to 3.5 million consumers using online banking services delivered by Online Resources. StatementRewards provides offers from local and national merchants based on consumers' purchasing histories or their location. Carlo Cardilli is SVP for Business Development at Truaxis, (415) 385-1112, [email protected], www.truaxis.com.

SociAl Mobile PAyMenTS AMericAS 2012Three-Day ConferenceNovember 6-8, 2012Marriott Biscayne BayMiami, Florida

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Topics include: disruption, mobile advertising, MNO strategies, mobile retail/retail mobile, network (r)evolution, social media-morphosis, 5W’s of transactions, wallet warfare. Dedicated tracks include: Near Field Communications, alternative transaction networks, t-commerce, m-couponing, in-app subscriptions, and B/OSS, as well as sessions exploring business strategy and mobile cloud services, among other subjects. Speakers and panelists will represent both innovators and incumbents from across the entire spectrum of the social, mobile, and payments ecosystem from companies such as: Amdocs, Visa, PressPay, Digital River, Apriva, Mogreet, Spindle Mobile, Mopay, PayTap, i2C, ParkMobile, X.Commerce, C-Sam, Carol Realini, We Pay, Boom, Fundable, and more. Cost is $895 with an optional hands-on social media workshop on November 6. Contact Bruce Burke at Gulf Bay Consulting, (727) 612-5775, [email protected]. Register at www.socialmobilepayments.com.

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Fast Facts > > > > > > > > >

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> > > > > > > > > Fast FactsiD Tech, a provider of POS hardware devices worldwide, will

integrate First Data's TransArmor data encryption and tokenization technology into its products. Tim Hornton is VP of Merchant Product Management at First Data, (402) 222-4380, [email protected], www.firstdata.com. George Jiang is VP of Engineering at ID TECH, (714) 761-6368, [email protected], www.idtechproducts.com.

Global PaymenTs, the 7th largest acquirer in the U.S., will purchase Accelerated Payment Technologies, provider of its own middleware, card-present gateway, and security payment technologies, for $413 million in cash. ATP is owned by private equity firm Great Hill Partners. Jay Rising is President – U.S. at Global Payments, (770) 829-8292, [email protected], www.globalpaymentsinc.com. Matthew Vettel is Managing Partner at Great Hill Partners, (617) 790-9432, [email protected], www.greathillpartners.com.

TinyView is a start-up offering a mobile app for product search and shopping. Consumers store all of their checkout information including billing and shipping addresses, e-mail, payment card, etc. on their phone. They search for a product and get results in the app, which automatically fills out the information needed during checkout. Tinyview receives fees for completed sales. Raj Lalwani is Founder, (408) 647-1321, [email protected], www.tinyview.com.

FiFTh ThirD bank now offers EMV-compliant credit cards to its commercial card customers. The bank ranks 16th among all com-mercial card issuers in the U.S. Katie Lutman is VP, (513) 534-7732, [email protected], www.53.com.

tSYS HealtHCare will provide HSA, FSA, and HRA benefit card processing and other services to Acclaris, which supports more than 15,000 employer clients and their 1.8 million active account holders. Trey Jinks is Group Executive at TSYS Healthcare, (706) 649-2417, [email protected], www.tsys.com.

U.s. bank's Travel VirtualPay service does away with ghost accounts, agency invoices, and hotel direct bills for travel expendi-tures by adding single-use account numbers for air, hotel, and car bookings combined with settlement technology from Conferma. Mary Miklethun is VP, Travel Payment Strategy at U.S. Bank, (612) 973-1411, [email protected], www.usbank.com.

naTional reTail FeDeraTion has launched the Integrated Mobile Initiative aimed at providing the organization's 9,000+ members with information about mobile retailing including best practices, case studies, educational content, thought leadership, and more. A dedicated website will provide original NRF research, infographics, policy information, and more. Dan Butler is VP, Merchandising and Retail Operations, (202) 626-8143, butlerd@ nrf.com, www.nrfmobile.com.

american airlines is the first U.S.-based carrier to install Acculynk's PaySecure software-based PIN pad at its Web payments page. Frank DiNuzzo is Managing Director, Marketing Performance at American Airlines, (817) 967-2001, [email protected], www.aa.com. Sandra Chesnutt is SVP at Acculynk, (687) 894-7013, [email protected], www.acculynk.com.

management > CHANGESMarc Gordon has been appointed EVP and Chief Information Officer at American Express, (212) 640-2000, [email protected]. Diane Jackson has been appointed Director of Business Development and Strategic Marketing at CPI Card Group, (720) 889-1192, [email protected]. Joe Wolf, for-merly at Google, has been appointed VP of Product at FreeMonee Network, (650) 351-7998, [email protected]. Alok Kapur has been appointed Global Head of Marketing at Experian Marketing Services, (212) 380-2907, [email protected]. Kevin Reager has been appointed Chief Executive Officer at Global Axcess Corp., (904) 395-1142, [email protected]. Dan Cook has been appointed CEO at Crystal Clear Payments, (425) 205-3090, [email protected].

lemon, launched in late 2011, has a user base of 2+ million custom-ers who have downloaded its iOS-based Lemon Free service and premium Lemon Pro service ($9.99 per month), which scans and stores payment and loyalty cards, receipts, and merchant offers. The company now offers Lemon Wallet for Android 4.0 or higher smartphones. Consumers download the app from Google Play. Matt Murphy is CMO, (650) 529-4101, [email protected], www.lemon.com.

Ge caPiTal reTail bank has received a renewal of its contract to provide private label and Discover credit card products to con-sumer and commercial customers of Sam's Club. Alex Aguila is Se-nior Director, Financial Services at Sam's Club, (479) 277-8662, [email protected], www.samsclub.com. Steve Hacala is VP and General Manager for Sam's Club Credit Services at GE Capital Retail Finance, (479) 254-6165, [email protected], www.ge.com.

Telrock offers its SmartCollect digital self-service payments ap-plication in Canada. The company says that over 26% of customers pay within 15 minutes of receiving “payment due” notification, 40% within 30 minutes, and 74% within 48 hours. The mobile channel has proven to be more effective than manual call center and paper-based collection methods. Clients include Capital One and RBS. Part-ners include TSYS, FICO, and PayPoint. Jerry Ferlisi is GM at Telrock Americas, (678) 772-3037, [email protected], www.telrock.com.

cashFlows, a principal issuer and acquirer member of Visa and MasterCard in the U.K., is also a program manager for prepaid cards. Its first prepaid client is marketing and media group ROK Global, which has made an initial order for 50,000 cards. Those cards will carry the Visa brand. Nick Ogden is CEO, 44 (122) 355-0920, [email protected], www.cashflows.com.

PayVision, the Amsterdam-based payment services provider, will distribute in Europe e-commerce technology from U.S.-based Virtual Piggy that lets parents manage online spending by their children. Rudolf Bookers is CEO at Payvision, (917) 494-3111, r.booker@ payvision.com, www.payvision.com. Jo Webber is CEO at Virtual Piggy, (310) 853-1950, [email protected], www.virtualpiggy.com.



> > > > > > > > Fast FactslUottokUnta, provider of payment card account and merchant

account processing services in Finland, will be acquired by Nets, the largest card and merchant processor based in the Nordic coun-tries. Terms were not disclosed. When the deal is competed, Nets will have annual revenue in the $1.04 billion (€850 million) range. Mette Kamsvåg is CEO at Nets, 45 (2) 948-2345, [email protected], www.nets.eu. Heikki Kapanen is CEO at Luottokunta, 358 (9) 69-641, [email protected], www.luottokunta.fi.

aSB Bank in Azerbaijan has introduced a new MasterCard pay-ment card called Extra Card that offers the country's first install-ment credit product. Cardtek Group's SmartSoft management system is providing account processing. Extra Card lets customers manage their debit and credit card accounts from one platform, make payments in installments, collect bonus points from shop-ping, and spend those points to make payments. Murat Göksenin Güzel is Group General Manager at Cardtek, 90 (212) 328-3331, [email protected], www.cardtek.com. Cenk Bartin is Deputy Chairman of the Executive Board at ASB Bank, 99 (412) 493-4949, [email protected], www.asb.az.

aCCoUrt, a consulting service, focuses on development and implementation strategies aimed at improving performance and minimizing operational risk. Expertise includes regulation and compliance, risk management, and fraud. Visa, MasterCard, Diners Club, Barclaycard, Lloyds, Elavon, and Travelex have been clients. John Berns is Managing Director at Accourt, 44 (207) 839-4930, [email protected], www.accourt.com.

indusind Bank in India now offers the Indus Forex prepaid MasterCard card designed for foreign travelers. The card is available in U.S. dollar, euro, pound sterling, Singapore dollar, Australian dollar, and Saudi riyal currencies. ElectraCard Services (ECS) provides technology and processing services for Forex card. Sumant Kathpalia is Head of Consumer Banking at Induslnd Bank, 91 (22) 4406-6666, [email protected], www.indusind.com. Ramesh Mengawade is CEO at ElectraCard Services, 91 (20) 6627-2101, ramesh.mengawade@ electracard.com, www.electracard.com.

Bank-Verlag has been given a master license to issue girocard/JCB co-branded cards in Germany. Private and commercial banks in Germany use Bank-Verlag for card account processing services. Titus Gerhardt is General Manager at JCBI (Europe), 49 (697) 1045-6341 [email protected], www.jcbcorporate.com. Christoph Thoet is Department Head Market & Customers, Card Division at Bank-Verlag, 49 (221) 549-0417, christoph.thoet@ bank-verlag.de, www.bank-verlag.de.

HyperWallet, a Canada-based prepaid card program provider and account processer, will move into the U.S. with a reloadable Visa prepaid card for corporate clients and their customers. The card will be issued by The Bancorp Bank. Lisa Shields is CEO at HyperWallet, (604) 482-0096, [email protected], www.hyperwallet.com.

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ATPS LATinoAmericA 2012: September 5-6, 2012. The Hyatt Regency Coral Gables, Miami, Florida. Estimated attendance: 200. Cost for the two-day conference starts from $399 for airlines/travel providers and $799 for suppliers. Subscribers to The Nilson Report will receive a 20% discount (for new bookings). Contact Michael Smith at Airline Information for discount code, 44 (141) 416-0800, [email protected]. Register at www.atpslatinoamerica.com.

PAymenTS SouThern AfricA conference And exhibiTion 2012: September 12-14, 2012. The Emperors Palace, Kempton Park, Johannesburg, South Africa. Estimated attendance: 160. Cost for the three-day conference is $1,140 (R 9,110). Contact Sharlee Vickery at TCI, 27 (11) 803-0009, [email protected]. Register at www.tci-sa.co.za.

AdvAnced commerce & mobiLe reTAiL ServiceS SummiT 2012: October 1-3, 2012. The Hyatt Regency, Chicago, Illinois. Estimated attendance: 550. Cost for the three-day conference is $1,695 for industry, $795 for retailers. Complimentary passes available for qualified retailers. Subscribers to The Nilson Report will receive a 40% discount. (Use code RAMP-NILS-D.) Contact Melissa Morrissey at Retail Ramp, (561) 705-6075, [email protected]. Register at www.retailramp.com.

conferenceS & SeminArS

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5Th mobiLe conTAcTLeSS PAymenT innovATionS 2012: October 2-3, 2012. The Westin Michigan Avenue, Chicago, Illinois. Estimated attendance: 400. Cost for the two-day conference is $1,295, merchant rate $650. (Early Bird Registration through September 7, 2012.) Subscribers to The Nilson Report will receive a $350 discount. (Use code NILSON02.) Contact Kathleen Daffner at Strategic Solutions Network, (203) 209-0520, [email protected]. Register at www.paymentinnovations.net.

riSk mAnAgemenT And SecuriTy of cArd TrAnSAcTionS in ciS And eASTern euroPe 2012: October 18-19, 2012. The Grand Admiral Club, Kiev, Ukraine. Estimated attendance: 120-150. Cost for the two-day conference is $861 (€700). Subscribers to The Nilson Report will receive a 20% discount. Contact Dmytro Sakhno at EMA, 380 (44) 568-5838 or 380 (93) 773-0740, [email protected]. Register at www.ema.com.ua.

engAgemenT & exPerience exPo 2012: October 28-30, 2012. The Hyatt Regency, Dallas, Texas. Estimated attendance: 400. Cost for the three-day conference ranges from $520 to $1,399. Subscribers to The Nilson Report will receive a 20% discount. (Use code NILSON20.) Contact Lindsay Wagner at Loyalty 360, (513) 360-8680 x113, [email protected]. Register at www.engagementexpo.com.

- 3 -4 aUGUst 2012 IssUE 1,001 tHE NILsON REPORtIf you are being forwarded a copy of this report, you are not an authorized user and must delete the report


outstanding balance on an account and the price it can get for that balance. Plastic Jungle is integrated with all

major processors that provide prepaid cards for retailers. More than 400 private label prepaid cards can be exchanged at Plastic Jungle, which is the largest marketplace of its kind measured by the amount of Web traffic.

Earlier this year it formed a partnership with InComm, marketer and distributor of private label and general purpose prepaid

cards sold over the counter at 225,000 point-of-sale locations

in the U.S., Australia, Japan, Canada, Mexico, Puerto

Rico, Brazil, Korea, and the U.K. That

integration now supports a new business for Plastic

Jungle — exchanging prepaid card balances from 130 retailers for virtual currency that can be used in over 100 online games and for other

digital content. The exchange is completely automated and is available at the online platform operated by Zeevex, which was acquired

by InComm in 2010. Bruce Bower is CEO at Plastic Jungle in San Mateo, California, (650)

465-2000, [email protected], www.plasticjungle.com. Prior issues: 994, 992, 987, 972, 948, 866

Zeevex integrates with digital content providers directly to supply them with token-based and point-based virtual currency payment systems. It

connects to Plastic Jungle by way of InComm. Consumers can also buy Zeevex currency at InComm point-of-sale outlets in the U.S. Brian Parlotto is Senior VP, Consumer Products and International at InComm in Atlanta, Georgia, (678) 528-7683, [email protected], www.incomm.com.

2013. Nationwide rollout will start in the second quarter.

Discover sends network rules and regulation updates twice a year to the 1,500 large merchants with which it has direct connections as well as to the 135 acquirers it contracts with to accept Discover credit cards. It will send PayPal’s rules and regulations, brand requirements, and pricing when it next communicates these changes in October. The acquirers will handle communication about PayPal to their merchants, who can opt out if they do not want to accept PayPal.

Discover and PayPal already work together. Most of PayPal’s BillMeLater credit transactions are cleared over the Discover Network. And Discover’s Money Messenger person-to-person money transfer service uses PayPal’s Adaptive Payments APIs.

There will be multiple phases in PayPal’s Discover Network product rollout. Neither mobile phones nor merchants in Pulse’s PIN-based EFT network are part of the initial phase. Joby Orlowsky is VP

Strategic Initiatives at Discover in Riverwoods, Illinois, (224) 405-3256, [email protected], www.discovernetwork.com.

PayPal’s remote digital wallet was a payment option only at Web and mobile merchants until earlier this year when Home Depot became the first merchant to accept PayPal inside

its store locations. Another 15 merchants including Office Depot, Barnes & Noble, and Abercrombie & Fitch have subsequently signed up to do the same. All link to PayPal by way of direct connections.

In those stores PayPal customers can use a PIN pad to key in their mobile phone number and a

Funding Virtual CurrenCy with PrePaid Cards (from page 1)...

PayPal On the disCOVer netwOrK (from page 1)...

... turn to page 6

... ExCHANgES PREPAID bAL-ANCES fROM 130 RETAILERS.

bOTH ALREADY WORK ON bILLMELATER & MONEY MESSENgER.



http://www.plasticjungle.com

http://www.incomm.com

http://www.discovernetwork.com

There are at least 150 criminal forums on the Internet.

A company called CloudeyeZ is monitoring seven of these marketplaces in a beta test aimed at determining the daily market price for stolen credit card data, and it plans to publish findings on its website.

Law enforcement agencies have successfully infiltrated forums for years. Usually they pose as criminals and buy their way in. CloudeyeZ

infiltrates the forums using bots, which are intelligent programs that can collect the data from these underground sites. Those bots could also be used to retrieve stolen data on behalf of a client who authorizes CloudeyeZ to do so. This would provide an alternative to the waiting period

inherent in successful law enforcement action.

In addition to card account data, CloudeyeZ’s bots can find intellectual property, proprietary computer codes, personal information, and other stolen data a company might want back, such as

logins and passwords to online bank accounts.

CloudeyeZ expects that monitoring criminal forums will reveal supply and demand factors that influence prices paid for stolen card data,

such as the recent 500,000 accounts stolen in Australia and law enforcement actions. New thefts should lower prices by pushing more products onto the market. Law enforcement actions that shut down forums should raise prices by lowering supply. CloudeyeZ’s trend tool will provide a reasonable gauge as to the success of efforts to fight this type of

cybercrime.

If CloudeyeZ’s bot-based retrieval service works, it could be useful in fighting criminal forums, which are moving from English-speaking marketplaces into Russian, Ukrainian, Chinese, Vietnamese, and Romanian language sites, making it more difficult for successful law enforcement actions. Dan Clements, who sold his CardCops.com consumer protection service to Affinion in 2007, is Founder at CloudeyeZ in Sherman Oaks, California, (818) 455-5969, [email protected], www.cloudeyez.com.

4-digit PIN to gain access to their remote wallet. PayPal will issue a plastic card to accountholders who don’t have

a mobile number or don’t want to use one.

A mobile phone number option for transactions on the Discover Network will not be part of phase one. The more than 50 million active U.S. customers of PayPal — more people than those that have a Discover Card — will be issued a magnetic-stripe card, mainly because only

20% of all U.S. merchants deploy POS terminals with encrypted PIN pads.

Not all details about PayPal card specifications have been finalized. It will not be printed with the Discover logo but will have a 16-digit Discover INN number encoded on the mag-stripe. Because Discover’s 6011 range of card numbers are already stored in POS terminals, acceptance of the PayPal card will not be difficult for merchants.

There are third-party Discover Card issuers in the U.S. including GE, First National of Omaha, Capital One (purchased from HSBC), and

Amalgamated Bank. However, PayPal is different. It is not issuing Discover Cards per se. It is only using its INN numbers to facilitate processing. PayPal is effectively adopting the Discover Network as its own network, similar to how a virtual mobile network operator uses the physical assets of a regulated wireless carrier. Don Kingsborough is VP of Retail at PayPal in San Jose, California, (408) 376-7400, [email protected] www.paypal.com.

traCKing stOlen Credit Card data (from page 1)...

bOTS USED TO INfILTRATE COULD ALSO RETRIEVE A CLIENT’S DATA.

PayPal On the disCOVer netwOrK (from page 5)...



http://www.cloudeyez.com

http://www.paypal.com

introduced to hardware security module and POS terminal manufacturers as well as processors and acquirers, who will need to integrate it into their products and systems.

The Visa application uses Triple DES encryption and DUKPT key management, the same technology currently used to encrypt PINs for ATM and POS transactions. This should make it easier to adopt. In addition to standard encryption the Visa software also provides a 16-digit encrypted value for merchants who need to preserve existing data formats to track transactions or individual buyers.

Over time Visa will introduce its encryption service to other world regions as part of its ongoing multilayered security strategy aimed at eliminating, protecting, and devaluing (to thieves)

card data. Even EMV transactions need encryption because card account data, expiration dates, and ICVV numbers are passed in the clear.

Deploying encryption technology from Visa or from other companies including First Data, VeriFone, and Heartland, reduces a merchant’s risk exposure from card data, which reduces their costs related to PCI DSS compliance.

Visa’s end-to-end encryption service will be added to existing prevention and

response fraud fighting services including risk scoring of transactions that enter VisaNet, alerts to cardholders about suspicious transactions, and adoption of EMV chip technology that generates dynamic data authentication for every transaction. Eduardo Perez is Head of Global Payment System Risk at Visa Inc. in Foster City, California, (650) 432-3988, [email protected], www.visa.com.

all major mobile phone operating systems, and will be open to general purpose and private label card products

as well as to alternative payment products that

access deposit accounts. No name has yet been selected for the

consumer acceptance mark. A committee has been formed to search for a Chief Executive Officer.

MCX will develop the payment application as well as the delivery

platform with the aim of appealing to the widest possible number of merchants

and consumers.

The payment

application will be available within the MCX wallet or

embedded within a merchant’s proprietary mobile commerce app.

Currently 15 companies that collectively generate $1 trillion in sales annually have invested in MCX, and other merchants have already committed. Smaller merchants not able to invest can operate as acceptance locations.

So far only one digital wallet in the U.S. market is generating any significant payment volume inside retail locations, and that is the 2D barcode-based, prepaid, private

label application promoted by Starbucks, which is on pace

to top 50 million transactions this year. Other digital

wallets developed to offer in-store payments tied to general purpose cards include products from PayPal, Google, ISIS, and Visa.

In addition to the merchants whose corporate logos are shown here, other investors in MCX include Alon, CVS,

Darden, Publix, Michael’s, and Sunoco. Dodd Roberts is Manager at Merchant Customer Exchange in Irving, Texas, (972) 868-9120,

[email protected], www.mcx.com.

TOgETHER THEY ACCOUNT fOR $1 TRILLION IN ANNUAL SALES.

... USES TRIPLE DES ENCRYP-TION AND DUKPT KEY MANAgEMENT.

u.s. MerChants deVelOPing MObile PayMent aPP (from page 1)...

Visa POs enCryPtiOn serViCe (from page 1)...



http://www.visa.com

http://www.mcx.com

Rank Total Vol. Purchase . ‘12 ‘11 Issuer (mil.) Chg. Vol. (mil.) Chg.

1 1 JPMorgan Chase $215,920.0 13% $205,840.0 13% 2 2 Bank of America $125,783.6 0% $118,974.1 2% 3 3 Citigroup $94,831.3 4% $94,156.0 4% 4 4 Capital One $68,774.1 23% $65,313.1 24% 5 5 U.S. Bank $45,008.1 7% $42,898.2 7% 6 6 Wells Fargo $38,937.9 15% $35,817.9 16% 7 8 Barclays $18,623.9 22% $17,571.7 21% 8 9 USAA $15,818.5 9% $14,832.5 8% 9 7 HSBC $10,376.7 –34% $10,200.0 –33% 10 10 PNC $10,293.5 29% $9,511.9 24% 11 11 Cabela’s WFB $7,446.3 15% $7,422.3 15% 12 15 Comdata $5,888.3 47% $5,888.3 47% 13 14 GE Capital $5,688.9 36% $5,664.5 36% 14 12 First Nat’l Omaha $5,397.1 18% $5,010.6 18% 15 13 Navy FCU $4,970.5 15% $4,405.4 18% 16 18 Wright Express $4,913.7 47% $4,913.7 47% 17 16 BMO Harris $4,455.3 17% $4,430.6 16% 18 19 Fifth Third $3,996.7 22% $3,749.5 24% 19 17 Target $3,536.0 –5% $3,522.5 –5% 20 20 SunTrust $3,259.6 10% $3,162.7 9% 21 21 BB&T $3,235.3 11% $3,099.6 10% 22 23 Commerce Bank $3,155.1 18% $3,049.2 20% 23 22 Nordstrom $2,999.4 8% $2,985.4 8% 24 24 ICBA Bancard $2,428.6 6% $2,396.8 6% 25 32 Regions Bank $2,239.5 187% $2,169.3 178% 26 26 RBS Citizens $2,107.1 16% $1,972.6 15% 27 25 State Farm $1,951.3 1% $1,873.4 2% 28 27 Pentagon FCU $1,526.4 10% $1,370.4 8% 29 34 UMB Bank $1,018.0 35% $1,010.0 35% 30 35 Credit One $929.7 25% $904.1 25% 31 29 First Hawaiian $908.5 4% $902.2 4% 32 38 TD Bank $885.1 38% $837.9 36% 33 28 TIB $878.6 –5% $871.6 –5% 34 41 M&T Bank $847.8 40% $766.3 30% 35 31 BBVA Compass $828.8 4% $577.2 13% 36 36 Comerica Bank $813.7 19% $812.0 19% 37 45 FleetCor $766.4 48% $766.4 48% 38 37 BECU $747.5 10% $734.8 12% 39 40 Zions Bancorporation $723.0 19% $711.4 19% 40 33 First Premier $691.7 –10% $678.1 –10% 41 39 First Citizens $650.4 3% $639.9 4% 42 42 Bank of the West $636.7 15% $631.3 15% 43 47 Merrick Bank $597.2 26% $560.9 27% 44 44 Synovus/Columbus B&T $562.1 6% $561.0 6% 45 48 America First CU $510.6 10% $412.7 7% 46 46 First Horizon $495.2 4% $490.4 4% 47 49 Ameriprise Bank $473.5 16% $453.6 14% 48 – First Niagara $388.5 new $366.7 new 49 51 Digital FCU $371.4 3% $368.0 3% 50 54 Arvest Bank $360.1 18% $355.3 18%

Rank Total Vol. Purchase . ‘12 ‘11 Issuer (mil.) Chg. Vol. (mil.) Chg.

51 52 SchoolsFirst FCU $348.4 7% $307.9 6% 52 50 BMW Bank $346.1 –4% $341.6 –4% 53 56 State Employ. CU (N.C.) $320.8 7% $289.7 8% 54 58 First Tech FCU $314.2 5% $306.7 6% 55 55 PSECU $305.9 2% $251.6 3% 56 53 Card Assets $298.7 –3% $297.9 –3% 57 62 Randolph-Brooks FCU $290.3 15% $261.0 11% 58 57 San Diego County CU $280.2 –6% $173.2 1% 59 61 The Golden 1 CU $272.5 8% $239.4 5% 60 60 1st Financial $266.7 –3% $261.2 –3% 61 59 Suncoast Schools FCU $263.5 –11% $238.6 –11% 62 64 Redstone FCU $245.6 4% $241.6 4% 63 65 Delta Community CU $244.7 9% $226.2 9% 64 63 Simmons First $238.5 –2% $234.8 –1% 65 66 Intrust Bank $231.3 11% $228.4 11% 66 68 VyStar CU $229.1 10% $216.8 8% 67 43 RBC Bank $227.0 –70% $224.4 –57% 68 69 Baxter CU $225.0 13% $202.0 8% 69 67 FirstBank Data Corp. $220.7 6% $219.8 6% 70 71 Mich. State Univ. FCU $209.1 8% $175.2 9% 71 72 Whitney National $194.7 12% $191.8 12% 72 73 United Nations FCU $185.8 7% $155.4 7% 73 82 T-Chek Systems $181.6 24% $181.6 24% 74 74 BancorpSouth $179.4 5% $172.5 6% 75 76 FirstMerit Bank $178.8 7% $157.4 8% 76 — Sovereign Bank $175.9 new $155.8 new 77 75 First Interstate $173.9 2% $172.5 2% 78 88 City National Bank (Calif.) $167.8 27% $167.7 27% 79 79 Wash. State Employ. CU $166.8 7% $165.8 8% 80 78 Bank-Fund Staff FCU $165.2 5% $160.2 5% 81 77 Tower FCU $164.2 3% $162.2 3% 82 84 Mountain America CU $162.2 15% $160.4 15% 83 80 Patelco CU $154.8 2% $142.4 4% 84 83 Alaska USA FCU $151.1 7% $144.9 7% 85 81 Affinity FCU $149.4 1% $130.0 1% 86 85 Mission FCU $142.1 1% $140.2 1% 87 70 Associated Bank $136.8 –30% $20.4 –9% 88 87 The Bank of N.Y. Mellon $134.6 1% $134.3 1% 89 86 Farm Bureau Bank $133.2 0% $132.0 0% 90 90 CEFCU $127.2 7% $126.0 8% 91 89 Wescom CU $121.3 –3% $115.4 –3% 92 95 Virginia CU $118.0 15% $95.1 11% 93 93 Security Service FCU $113.2 8% $98.7 9% 94 94 Members 1st CU $112.0 9% $109.5 9% 95 92 University FCU $110.3 3% $108.4 3% 96 96 GTE Financial $101.0 5% $95.2 7% 97 97 AA Credit Union $97.3 4% $95.6 12% 98 98 Amalgamated Bank $89.1 –3% $87.5 –3% 99 100 Police and Fire FCU $88.8 8% $86.0 9% 100 103 Grow Financial FCU $85.3 10% $77.7 10%

Top U.S. Visa/MasterCard Credit Card Issuers Volume Midyear 2012

First 6 months of 2012 vs. first 6 months of 2011. Includes both consumer and commercial cards © 2012 The Nilson Report



Rank Outstand- Cards ‘12 ‘11 Issuer ings (mil.) Chg. (000) Chg.

1 1 JPMorgan Chase $123,580.0 –1% 87,900 –3% 2 2 Bank of America $100,804.9 –8% 52,908 –5% 3 3 Citigroup $85,985.7 –2% 54,148 2% 4 4 Capital One $62,723.0 32% 72,500 99% 5 5 Wells Fargo $31,305.3 –1% 18,046 11% 6 6 U.S. Bank $23,236.5 4% 16,763 12% 7 8 USAA $13,092.5 4% 5,255 7% 8 9 Barclays $12,598.9 30% 12,076 15% 9 11 Navy FCU $6,076.5 15% 2,277 3% 10 10 Target $4,923.2 –10% 7,172 –24% 11 12 PNC $4,732.8 11% 3,731 10% 12 14 GE Capital $4,208.0 25% 18,099 20% 13 13 First Nat’l Omaha $4,113.2 13% 5,017 10% 14 15 Cabela’s WFB $3,072.1 13% 2,865 7% 15 16 Fifth Third $2,668.5 11% 2,411 7% 16 17 BB&T $2,006.4 7% 1,769 22% 17 18 RBS Citizens $1,630.3 3% 1,975 3% 18 20 State Farm $1,479.3 1% 929 –8% 19 19 Pentagon FCU $1,477.2 –2% 516 5% 20 21 Nordstrom $1,326.1 –3% 1,309 8% 21 82 Regions Bank $1,237.9 898% 1,069 187% 22 24 Credit One $1,207.4 18% 2,231 15% 23 27 Merrick Bank $1,110.5 20% 1,065 35% 24 25 SunTrust $1,083.9 10% 935 8% 25 23 ICBA Bancard $1,058.5 –1% 1,571 –2% 26 28 BMO Harris $1,040.5 37% 654 63% 27 7 HSBC $988.8 –95% 721 –98% 28 22 Associated Bank $946.0 –12% 80 –10% 29 26 Commerce Bank $906.3 –5% 1,021 3% 30 30 First Premier $722.0 0% 2,555 –11% 31 31 BBVA Compass $658.4 8% 483 4% 32 29 1st Financial $653.3 –10% 350 –8% 33 32 BECU $649.4 7% 297 17% 34 33 Suncoast Schools FCU $570.3 –5% 268 2% 35 37 TD Bank $503.8 20% 364 28% 36 36 PSECU $486.7 8% 195 3% 37 44 American Savings $484.8 40% 42 18% 38 35 The Golden 1 CU $475.7 2% 137 4% 39 34 San Diego County CU $458.4 –7% 79 3% 40 39 SchoolsFirst FCU $416.5 5% 223 4% 41 38 America First CU $415.0 3% 218 4% 42 40 UMB Bank $388.0 –1% 406 2% 43 – First Niagara Bank $337.9 new 450 new 44 45 First Hawaiian $331.8 –3% 229 –1% 45 43 BMW Bank $327.2 –6% 192 –4% 46 41 TIB $324.1 –12% 390 –11% 47 58 M&T Bank $322.9 69% 287 53% 48 46 First Citizens $309.5 –1% 230 –4% 49 48 DCU (Digital FCU) $305.5 5% 193 7% 50 47 VyStar CU $299.4 2% 133 18%

Rank Outstand- Cards ‘12 ‘11 Issuer ings (mil.) Chg. (000) Chg.

51 49 Synovus/Columbus B&T $258.9 –4% 220 –8% 52 54 Zions Bancorporation $237.2 12% 281 8% 53 59 Randolph-Brooks FCU $232.2 22% 100 11% 54 53 State Employ. CU (N.C.) $231.9 9% 285 4% 55 55 Virginia CU $229.5 11% 85 9% 56 51 Security Service FCU $224.7 0% 65 1% 57 62 Ameriprise Bank $222.8 22% 115 17% 58 52 First Tech FCU $220.8 0% 165 3% 59 56 Mich. State Univ. FCU $203.6 5% 105 7% 60 60 Bank of the West $202.7 7% 216 19% 61 68 Comdata $195.6 24% 3,791 15% 62 57 First Horizon $186.3 –3% 152 –5% 63 — Sovereign Bank $183.7 new 157 new 64 64 Redstone FCU $179.7 7% 96 5% 65 63 Simmons First $173.4 –3% 175 –7% 66 66 Baxter CU $169.6 4% 86 13% 67 68 Wash. State Empl. CU $165.6 5% 86 0% 68 70 Arvest Bank $162.9 7% 136 8% 69 76 Mountain America CU $162.4 16% 149 4% 70 78 Wright Express $160.7 18% 4,785 47% 71 65 Patelco CU $158.5 –3% 67 2% 72 72 Delta Community CU $155.2 4% 67 8% 73 71 ESL FCU $145.2 –5% 52 3% 74 73 Affinity FCU $144.5 –2% 83 0% 75 74 FirstMerit Bank $144.3 0% 179 4% 76 79 Farm Bureau Bank $141.8 6% 118 –4% 77 75 GTE Financial $141.4 –1% 42 1% 78 67 Arizona FCU $141.1 –11% 45 –7% 79 77 Wescom CU $136.7 –2% 61 5% 80 87 United Nations FCU $129.3 10% 29 6% 81 81 Municipal CU $128.8 3% 42 6% 82 82 Intrust Bank $125.4 0% 107 4% 83 89 AA Credit Union $123.1 8% 57 26% 84 80 Educ. Employ. CU (Calif.) $122.6 –5% 44 –2% 85 84 Mission FCU $122.3 0% 58 10% 86 96 Logix FCU $121.4 15% 38 10% 87 85 Alaska USA FCU $120.5 2% 81 –2% 88 97 GECU $116.0 13% 54 5% 89 104 Members 1st FCU $114.2 15% 81 18% 90 93 Police and Fire FCU $113.8 7% 61 9% 91 86 Tinker FCU $112.6 –4% 95 –2% 92 91 SECU Md. $108.8 0% 68 –3% 93 103 Alliant CU $107.9 8% 56 5% 94 95 Tower FCU $107.4 2% 60 3% 95 90 Hudson Valley FCU $104.9 –5% 45 –28% 96 99 Veridian $104.5 3% 82 3% 97 88 Card Assets $103.9 –11% 139 –4% 98 94 Bellco CU $103.0 –2% 50 –17% 99 90 Grow Financial FCU $101.5 5% 49 6% 100 98 BancorpSouth $100.8 –1% 90 6%

Change is vs. June 30, 2011. Consumer and commercial cards combined. © 2012 The Nilson Report

Top U.S. Visa/MasterCard Credit Card Issuers Outstandings Midyear 2012



2.9 million cards — an average of $5,020 per card. The United Arab Emirates (U.A.E.) had 7 issuers that accounted for

$10.18 billion from 5.9 million cards or $1,726 per card.

When measuring results for only Visa and MasterCard branded

cards, purchase volume reached $133.07 billion from 81.7 million cards. Issuers from

Israel had the highest combined credit, debit, and prepaid card purchase volume with $50.37 billion from 6.8 million cards, followed by South Africa with $36.56 billion from 41.0 million cards, Saudi Arabia with $15.76 billion from 7.7 million cards, Kuwait with $13.89 billion from

Purchase Purch. 2011 Volume Cards Vol. Rank Issuer, Country (mil. $U.S.) (000) per Card 1 Al Rajhi Bank Saudi Arabia $9,036.4 4,200 $2,152 2 Standard Bank South Africa $7,342.8 16,616 $442 3 Absa Bank South Africa $5,681.4 11,297 $503 4 National Bank of Kuwait Kuwait $5,182.5 683 $7,586 5 Nedbank Limited South Africa $4,711.8 6,232 $756 6 First National Bank South Africa $4,213.2 7,292 $578 7 Kuwait Finance House Kuwait $3,343.8 739 $4,522 8 Gulf Bank Kuwait $1,858.7 234 $7,948 9 Commercial Bank of Kuwait Kuwait $1,483.0 538 $2,756 10 Riyad Bank Saudi Arabia $1,378.3 1,761 $783 11 Emirates NBD U.A.E. $1,330.0 1,182 $1,125 12 SABB Saudi Arabia $1,300.3 724 $1,796 13 Nat’l Comm’l Bank Saudi Arabia $1,228.0 1,061 $1,158 14 Arab National Bank Saudi Arabia $1,161.5 1,000 $1,162 15 National Bank of Abu Dhabi U.A.E. $722.7 732 $987 16 Ahli United Bank Kuwait $711.8 124 $5,740 17 Dubai Islamic Bank U.A.E. $662.4 942 $703 18 Qatar National Bank Qatar $623.1 202 $3,079 19 Abu Dhabi Commercial Bank U.A.E. $435.3 479 $910 20 Doha Bank Qatar $392.7 209 $1,883 21 Boubyan Bank Kuwait $324.0 74 $4,389 22 Mauritius Comm’l Bank Mauritius $288.1 570 $505 23 Mashreq Bank U.A.E. and Qatar $261.0 589 $443 24 Bank Audi Lebanon $222.0 316 $704 25 Attijariwafa Bank Morocco $219.5 965 $227 26 Banque Centrale Populaire Morocco $173.9 775 $225 27 Arab Bank Jordan (1) $157.4 909 $173 28 BMCE Bank Morocco $150.4 892 $169 29 State Bank of Mauritius Mauritius $139.5 252 $553 30 Postbank South Africa $121.0 2,902 $42 31 Saudi Hollandi Bank Saudi Arabia $116.2 37 $3,124 32 Bank Dhofar Oman $114.0 191 $597 33 Bank AlJazira Bahrain $102.7 49 $2,117 34 Commercial Int’l Bank Egypt $98.4 540 $182

Debit Card Issuers in Mideast/Africa

Includes Visa, Visa Electron, MasterCard, and Maestro consumer and commercial debit and prepaid cards. (1) Includes Bahrain, Egypt, Jordan, Lebanon, Palestine, Qatar, United Arab Emirates, United Kingdom, and Yemen. © 2012 The Nilson Report

Purchase Purch. 2011 Volume Cards Vol. Rank Issuer, Country (mil. $U.S.) (000) per Card 1 IsraCard Israel $26,795.2 3,405 $7,869 2 Leumi Card Israel $14,189.3 2,013 $7,049 3 Israel Credit Cards Israel $13,830.0 1,795 $7,705 4 Absa Bank South Africa $7,165.7 2,671 $2,683 5 First National Bank South Africa $5,942.2 2,384 $2,492 6 Nedbank Limited South Africa $5,428.3 1,472 $3,688 7 Standard Bank South Africa (1) $5,270.3 2,090 $2,521 8 Emirates NBD U.A.E. $2,344.1 443 $5,286 9 Abu Dhabi Commercial Bank U.A.E. $1,663.8 466 $3,567 10 SABB Saudi Arabia $1,441.6 428 $3,365 11 Nat’l Commercial Bank Saudi Arabia $1,164.0 429 $2,716 12 Mashreq Bank U.A.E. and Qatar $1,160.8 492 $2,361 13 Samba Financial Saudi Arabia $1,074.3 432 $2,490 14 National Bank of Kuwait Kuwait $952.7 199 $4,792 15 Bank Audi Lebanon $877.6 139 $6,334 16 Al Rajhi Bank Saudi Arabia $742.0 409 $1,813 17 Qatar National Bank Qatar $653.0 68 $9,653 18 Standard Chartered U.A.E. $582.5 271 $2,150 19 National Bank of Abu Dhabi U.A.E. $545.4 111 $4,896 20 Kuwait Finance House Kuwait $477.1 216 $2,209 21 Riyad Bank Saudi Arabia $475.9 434 $1,096 22 National Bank of Egypt Egypt $321.6 1,096 $294 23 CrediMax Bahrain $288.4 63 $4,566 24 Arab National Bank Saudi Arabia $274.3 226 $1,212 25 Dubai Islamic Bank U.A.E. $267.5 109 $2,456 26 Doha Bank Qatar $253.1 40 $6,345 27 Commercial Int’l Bank Egypt $252.4 196 $1,291 28 Bank Alfalah Pakistan $232.0 306 $758 29 Arab Bank Jordan (2) $220.8 101 $2,192 30 Dubai First United Arab Emirates* $207.9 83 $2,493 31 Gulf Bank Kuwait $194.4 59 $3,310 32 Mauritius Comm’l Bank Mauritius $133.6 92 $1,451 33 Saudi Hollandi Bank Saudi Arabia $132.5 60 $2,210 34 African Bank South Africa $114.9 805 $143 35 Credit Agricole Egypt $107.7 103 $1,046 36 Credit Libanais Lebanon $99.8 46 $2,153 37 Commercial Bank of Kuwait Kuwait $88.5 30 $2,954 38 Standard Chartered Bahrain $65.1 40 $1,642

Credit Card Issuers in Mideast/Africa

Includes Visa, MasterCard, American Express, and Diners Club consumer and commercial credit and charge cards. (1) Doesn’t include its Diners Club figures. (2) Includes Bahrain, Egypt, Jordan, Lebanon, Palestine, Qatar, United Arab Emirates, United Kingdom, & Yemen. *Estimate.

© 2012 The Nilson Report

tOP issuers in Middle east/aFriCa (from page 1)...

... turn to page 12



GENERAL PURPOSE CARD RESULTS VISA AND MASTERCARD RESULTS 2011 ‘11 Purch. Vol. ‘11 Total Vol. ‘11 Cards ‘11 Purch. Vol. ‘11 Total Vol. ‘11 Cards Issuer, Country Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) IsraCard Israel 1 $26,795.2 5 $26,795.2 7 3,405 1 $23,508.2 4 $23,508.2 7 3,004 Leumi Card Israel 2 $14,205.9 10 $15,251.0 11 2,038 2 $14,205.9 7 $15,251.0 10 2,038 Israel Credit Cards Israel 3 $13,841.2 11 $14,106.2 12 1,954 3 $12,658.6 11 $12,903.2 11 1,733 Absa Bank South Africa 4 $12,847.1 3 $30,725.0 2 13,968 5 $10,070.0 3 $23,903.5 3 9,368 Standard Bank South Africa 5 $12,613.1 2 $36,807.5 1 18,706 7 $9,315.8 6 $18,693.5 1 11,886 First National Bank South Africa 6 $10,155.4 4 $28,608.8 3 9,677 4 $10,155.4 2 $28,608.8 2 9,677 Nedbank Limited South Africa 7 $10,140.2 6 $26,442.7 4 7,704 8 $6,785.7 5 $21,032.4 4 6,346 Al Rajhi Bank Saudi Arabia 8 $9,778.3 1 $62,468.8 6 4,609 6 $9,778.3 1 $62,468.8 6 4,609 National Bank of Kuwait Kuwait 9 $6,135.2 9 $15,324.8 30 882 9 $6,051.2 8 $14,990.6 28 792 Kuwait Finance House Kuwait 10 $3,820.9 15 $12,563.3 25 955 10 $3,820.9 12 $12,563.3 21 955 Emirates NBD U.A.E. 11 $3,674.1 12 $13,905.4 13 1,626 11 $3,668.6 9 $13,899.6 12 1,618 SABB Saudi Arabia 12 $2,741.9 16 $10,753.5 18 1,152 15 $1,441.6 30 $1,552.0 40 428 Nat’l Commercial Bank Saudi Arabia 13 $2,392.0 7 $16,458.1 15 1,489 20 $1,164.0 34 $1,261.9 39 429 Abu Dhabi Commercial Bank U.A.E. 14 $2,099.1 19 $6,276.3 27 945 12 $2,099.1 15 $6,276.3 23 945 Gulf Bank Kuwait 15 $2,053.1 20 $4,936.1 43 293 13 $2,053.1 16 $4,936.1 42 293 Riyad Bank Saudi Arabia 16 $1,854.2 8 $15,476.5 9 2,195 26 $482.7 47 $570.9 37 439 Commercial Bank of Kuwait Kuwait 17 $1,571.5 21 $4,833.9 38 568 14 $1,571.5 17 $4,833.9 33 568 Arab National Bank Saudi Arabia 18 $1,435.8 13 $13,830.0 16 1,226 16 $1,435.8 10 $13,830.0 13 1,226 Mashreq Bank U.A.E. and Qatar 19 $1,421.8 23 $4,500.1 19 1,081 17 $1,421.8 19 $4,500.1 15 1,081 Qatar National Bank Qatar 20 $1,276.0 24 $3,742.0 45 270 18 $1,276.0 20 $3,742.0 44 270 National Bank of Abu Dhabi U.A.E. 21 $1,268.1 18 $7,319.6 31 843 19 $1,268.1 14 $7,319.6 26 843 Bank Audi Lebanon 22 $1,099.6 27 $2,869.5 41 454 21 $1,077.0 23 $2,846.5 36 448 Samba Financial Saudi Arabia 23 $1,092.2 14 $13,451.5 14 1,518 22 $1,074.3 33 $1,338.4 38 432 Dubai Islamic Bank U.A.E. 24 $929.9 17 $9,366.9 20 1,051 23 $929.9 13 $9,366.9 16 1,051 Ahli United Bank Kuwait 25 $760.2 32 $2,078.2 52 149 56 $48.4 63 $57.4 68 25 Doha Bank Qatar 26 $645.9 29 $2,496.4 47 248 24 $645.9 25 $2,496.4 46 248 Standard Chartered U.A.E. 27 $582.5 45 $691.5 44 271 25 $582.5 42 $691.5 43 271 Mauritius Commercial Bank Mauritius 28 $421.7 35 $1,548.8 37 662 43 $121.1 55 $151.6 55 89 National Bank of Egypt Egypt 29 $419.7 22 $4,728.8 5 5,679 27 $409.3 18 $4,718.4 5 5,672 Arab Bank Jordan (1) 30 $378.1 28 $2,690.6 22 1,010 28 $378.1 24 $2,690.6 18 1,010 Commercial International Bank Egypt 31 $350.8 33 $1,942.6 35 735 29 $350.8 28 $1,942.6 31 735 Boubyan Bank Kuwait 32 $347.0 41 $946.0 59 79 30 $347.0 38 $946.0 58 79 CrediMax Bahrain 33 $288.4 53 $315.7 61 63 31 $288.4 51 $315.7 60 63 Bank Alfalah Pakistan 34 $248.8 39 $1,127.7 21 1,042 32 $248.8 36 $1,127.7 17 1,042 Saudi Hollandi Saudi Arabia 35 $248.6 44 $765.6 55 97 33 $248.6 41 $765.6 53 97 Attijariwafa Bank Morocco 36 $219.6 31 $2,268.6 23 982 34 $219.6 27 $2,268.6 19 982 Dubai First United Arab Emirates* 37 $207.9 54 $216.7 58 83 35 $207.9 52 $216.7 57 83 State Bank of Mauritius Mauritius 38 $179.5 43 $805.6 42 308 36 $179.5 40 $805.6 41 308 Banque Centrale Populaire Morocco 39 $173.9 25 $3,343.4 33 775 37 $173.9 21 $3,343.4 29 775 BMCE Bank Morocco 40 $156.5 26 $2,975.6 29 896 38 $156.5 22 $2,975.6 25 896 Credit Libanais Lebanon 41 $154.1 42 $831.5 50 166 39 $154.1 39 $831.5 49 166 Bank AlJazira Saudi Arabia 42 $133.6 49 $580.3 62 61 40 $133.6 46 $580.3 61 61 Bank Dhofar Oman 43 $130.2 38 $1,145.1 49 203 41 $130.2 35 $1,145.1 48 203 Credit Agricole Egypt 44 $129.7 50 $501.0 46 260 42 $129.7 48 $501.0 45 260 Postbank South Africa 45 $121.0 30 $2,345.4 8 2,902 44 $121.0 26 $2,345.4 8 2,902 African Bank South Africa 46 $114.9 46 $631.6 32 805 45 $114.9 43 $631.6 27 805 Millenium BIM Mozambique 47 $104.5 57 $109.5 26 946 46 $104.5 56 $109.5 22 946 Co-Operative Bank Kenya 48 $90.3 34 $1,623.2 10 2,092 47 $90.3 29 $1,623.2 9 2,092 National Societe Generale Egypt 49 $89.7 40 $1,114.8 28 929 48 $89.7 37 $1,114.8 24 929 Housing Bank for Trade & Fin. Jordan 50 $81.4 37 $1,374.6 39 520 49 $81.4 32 $1,374.6 34 520

Top General Purpose/Visa/MasterCard Card Issuers Middle East/Africa

General purpose results include Visa, MasterCard, Maestro, American Express, and Diners Club consumer and commercial credit, debit, and prepaid cards. Visa and MasterCard results exclude Maestro and cards that carry only the Plus or Cirrus brands. (1) Includes Bahrain, Egypt, Jordan, Lebanon, Palestine, Qatar, UAE, U.K., and Yemen. *Estimate. © 2012 The Nilson Report



2.7 million cards, and the U.A.E. with $10.18 billion from 5.9 million cards.

When measuring general purpose credit cards only, the 38 largest accounted for purchase volume of $96.03 billion from 23.8 million cards. Issuers from Israel accounted for $54.81 billion from 7.2 million cards, followed by South Africa with $23.92 billion from 9.4 million cards, the U.A.E. with $6.77 billion from 2.0 million cards, Saudi Arabia with $5.30 billion from 2.4 million cards, and Kuwait with $1.71 billion from 0.5

million cards.

For general purpose debit and prepaid cards only, the 34 largest issuers in the region accounted for purchase volume of $55.29 billion from 65.3 million general purpose debit and prepaid cards. Debit and prepaid issuers from South Africa generated $22.07 billion from 44.3 million cards. Issuers in Saudi Arabia had $14.32 billion from 8.8 million cards,

those in Kuwait had $12.90 billion from 2.4 million cards, and those in the U.A.E. had $3.41 billion from 3.9 million cards.

will be acquired by FICO for $115 million in cash. The transaction is expected to close in September.

Several FICO decision management applications

have operated on Adeptra’s platform since 2002, and FICO has been an Adeptra reseller since 2007. Currently they have 12 joint customers. FICO believes it can drive more sales of both companies’ products and services as the owner of Adeptra. Initial opportunities

exist among the 9,000 financial institutions worldwide that use FICO’s Falcon Fraud Manager software. Adeptra owns intellectual property related to contact automation and risk management that is highly supportive of fraud fighting.

FICO also sees opportunities to sell Adeptra’s technology to the clients who use its software for collections and recoveries, account management, and customer origination.

Beyond the financial services industry FICO sees prospects in

the travel and utilities industries. Doug Clare is VP, Fraud Solutions at FICO in San Diego, California, (612) 758-5450, [email protected], www.fico.com.

Adeptra’s top competitors are Varolii and SoundBite Communications. After the acquisition, Tony McGivern, CEO at Adeptra, will remain with FICO from offices in Norwalk, Connecticut,

(203) 956-2631, [email protected], www.adeptra.com. Prior issues: 996, 984, 980, 974, 972, 957, 956, 949, 945, 934, 900, 897, 896, 843, 822, 776, 758

THE TOP 50 INCLUDED ISSUERS fROM 16 COUNTRIES.

tOP issuers in Middle east/aFriCa (from page 10)...

...WILL DRIVE MORE SALES Of bOTH COMPANIES’ PRODUCTS.

FiCO tO aCquire adePtra (from page 1)...



David Robertson, Publisher aUGUst 30, 2012

http://www.fico.com

http://www.adeptra.com

u.s. v&mc credit cards — midyear middle east/ africa · pdf filetop issuers in...

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