Wednesday , August 15, 2018

Overtaking Venmo and other Digital Transactions News briefs from 6/13/18

  • Investors jumped on shares of Netherlands-based payment processor Adyen Wednesday after the company priced its initial stock offering on the high end of its expected range at €240 ($282.48) per share. As of late morning Eastern time, the stock had more than doubled to €480.30 ($565.31) per share, prompting talk of a tech bubble, according to reports on the financial wires.
  • Zelle, the bank-owned person-to-person payments service from Early Warning Services LLC, will overtake PayPal Holdings Inc.’s Venmo in terms of users this year, eMarketer Inc. forecasted. Zelle’s user base will increase to 27.4 million, while Venmo’s will total 22.9 million this year. Square Inc.’s Cash P2P service will have 9.5 million users by the end of the year.
  • European electronics retailer Dixons Carphone plc said it discovered a breach of its network that “attempt[ed] to compromise” 5.9 million credit and debit cards. The bulk—5.8 million—were chip-and-PIN cards and not affected, the retailer said. However, 105,000 non-EU issued payment cards that are not chip-and-PIN were compromised. Separately, 1.2 million records containing non-financial personal data, such as name, address, or email address, were breached. There is no evidence yet of fraud because of the breach.
  • Wells Fargo & Co. is simplifying its merchant pricing in a bid to compete more directly with Square Inc. and Stripe Inc., according to a report by Bloomberg. The report does not detail the new pricing. Wells is a processing partner of First Data Corp.
  • First Data Corp. is making its Disburse-to-Debit gateway available to Mastercard Inc.’s MoneySend push-payments service. Disburse-to-Debit provides a single connection for domestic and international debit networks.
  • Payment card manufacturer CPI Card Group Inc. said Flex, a credit-union processor with 250 clients in the U.S. and the Eastern Caribbean, has integrated CPI’s Card@Once instant-issuance product into its data-processing platform, enabling credit unions to print EMV chip cards in branches.
  • In related news, CPI Card Group named John D. Lowe chief financial officer to replace current CFO Lillian Etzkorn, who is leaving the company next month. Lowe most recently was CFO at SquareTwo Financial Corp.
  • ACI Worldwide appointed former MoneyGram International Inc. executive chairman Pamela Patsley to its board of directors.
  • The New England Automated Clearing House (NEACH) elected Laurance A. Selnick chairman of the board. Selnick is senior vice president at Webster Bank.

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