Robert McKinley, Senior Analyst/Editor Robert McKinley, with 33 years experience covering payment cards and payment systems, is Senior Analyst/Editor for CardFlash and other payments-related publications. He is the retired founder and chief executive of RAM Research, CardWeb and CardTrak. McKinley served as an expert witness in 100+ litigations including two multi-$billion trials, testified before the U.S. Congress, chaired multiple payments conferences, hired as consultant by Fortune 100 companies and several overseas financial institutions. Full Bio:

mPayment Readers Drive Cash Down by 10%

Javelin Strategy & Research released 2014 Retail Point of Sale Payment Forecast: The Mobile Payment Square-Effect and Prepaid Card Popularity Drive Cash Down by 10% report which evaluates the forecast changes in the retail POS market, tracking payments mix data from 2012 through the forecast year of 2019. Cash and paper checks dominated consumers’ wallets, with consumers using cash for smaller dollar-value transactions and selecting checks for big-ticket items. This trend has taken a dramatic turn, as consumers increasingly abandoned their traditional paper-based payments for card payments. From 2012 to 2013, cash dropped by 10% of volume of transactions, a total of $86B and is forecasted to drop further over the next six years. Cash is still the most commonly used payment option for in-store purchases, with 65% of all consumers using cash to make a purchase in the past seven days. The report details Javelin’s forecasts for total retail POS payments volume and analyzes share and transaction growth at the POS for credit cards, debit cards, cash, paper checks, prepaid cards, gift cards, and mobile proximity payments.

CashStar CRO to Speak at Card Not Present Expo

CashStar announced that it will join leading specialty retailer Aéropostale to help Card Not Present (CNP) Expo attendees learn about, and successfully navigate, the fastest growing trend in prepaid: the shift to digital and mobile. The CNP Expo provides a meeting place for merchants, banks, processors, anti-fraud software providers, legal experts, alternative payment providers, card networks, and others to learn how to leverage CNP payments in an increasingly multi-channel retail sales environment. CashStar Chief Risk Officer Pete Kledaras will be joined by David Libenson, vice president of financial operations at Aéropostale, and Jim Shanahan, CEO of Prepaidian. The fastest growing trend in prepaid cards is their transition from physical cards to digital and mobile currencies and marketing them for omni-channel use. Industry data shows the under-banked, teens and, increasingly, affluent consumers who don’t want the security risks associated with using a credit card, began using both open- and closed-loop prepaid cards online and on-the-go via smartphones in a big way this past holiday season.

PAR Announces Latest Client to Install POS Terminals

ParTech announced that Fogo de Chão recently installed PAR POS terminals. Fogo de Chão (fo-go-de’e-shoun) is an authentic Brazilian Steakhouse with 24 locations in the U.S. and 9 locations in Brazil. Fogo de Chão has selected the PAR EverServ(R) 7000 POS hardware family as the standard POS for all new store openings and replacements or upgrades at existing stores in the U.S. Fogo de Chão initially deployed the EverServ 7000 terminals for its new flagship restaurant in New York, which opened on December 19, 2013. EverServ 7200 terminals are used at the server stations and EverServ 7700 Low Profile terminals are used at the hostess station for seating guests and taking reservations.

InComm Launch Reloadable Prepaid Card mPayments

InComm in conjunction with Peoples Trust launched a prepaid card to be used in the suretap wallet from Rogers that can be topped up with funds for mobile payments. Nearly 20% of all “face-to-face” MasterCard transactions are processed as a PayPass transaction.Mobile payments are all about convenience and speed. For the consumer, that means no cash or cards are required. The Rogers Prepaid MasterCard can be reloaded any time, at the consumer’s convenience, or via auto top-up. Paying for a purchase at a merchant location is faster than any physical card transaction and only requires tapping on a point-of-sale terminal. Up-to-date balance information is available immediately after each purchase. The card is issued through the suretap wallet and can be activated within minutes. The contactless mobile payments technology behind the prepaid card is based on global standards and proven NFC technology, which is fast, safe and secure.

GlobalPlatform launches security task force

GlobalPlatform announced the launch of a Security Task Force, which will define the association’s security philosophy and tailor GlobalPlatform’s Specification offerings for the security ecosystem. The task force has been created in response to the increasing number of secure and trusted services that are being deployed on devices such as smartphones that contain often under-utilized secure chip technology, but need to be protected. The group’s immediate priorities are to develop white papers to communicate GlobalPlatform’s role in the security ecosystem and to host GlobalPlatform security workshops with industry representatives to explore the management of secure and non-secure applications on a mobile device. In order to achieve its goals, the group will also facilitate discussions regarding security requirements for devices incorporating secure chip technology and actively contribute to industry efforts to streamline security certification. The group is currently made up of 42 GlobalPlatform Member companies.

Target 1Q/14 Earnings Struggle, RedCard on EMV Migration

[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”0″ ihc_mb_template=”1″] Target first quarter net earnings of $418 million, with adjusted earnings per share down 13.9%. To improve performance, Target has made changes to the management team and are investing additional resources to drive U.S. traffic and sales, improve Canadian operations and advance ongoing digital transformation. The Company is projecting a 2Q/14…

Fiserv Collaborates on Next-Generation Banking Apps

Fiserv and the University of Connecticut School of Business announced that Fiserv is participating in the university’s Financial Accelerator Program to help educate students and foster innovation. UConn MBA students are now collaborating with area business leaders from Fiserv and two of its clients, the Savings Bank of Danbury and Greylock Federal Credit Union, to explore how financial institutions can attract and serve Gen Y consumers using state-of-the-art banking technology. This also introduces UConn MBA students to the DNA™ account processing platform from Fiserv. DNA is a modern, enterprise-wide software platform that is relied upon by hundreds of banks and credit unions, including Savings Bank of Danbury and Greylock FCU, for transaction processing, data management and customer relationship management. DNA offers a unique development toolkit – DNAcreator™ – that allows users to create seamlessly integrated applications called DNAapps™ that extend the platform in new and powerful ways. At the conclusion of the Financial Accelerator Program, UConn students will present a business case for creating a new DNAapp that DNA users like Savings Bank of Danbury and Greylock FCU can use to enhance the millennial banking experience.

Another Credit Union Deploys NCR Interactive Video ATMs

American Eagle Credit Union is the first credit union in Missouri to deploy NCR’s new interactive, remote video technology to deliver personal teller services to its members. This offers members live video interaction. The NCR Interactive Teller lets the credit union offer members the benefits of the personal service experience of a branch via a drive-up unit. Interactive Teller acts as a “virtual teller window”, giving members the ability to make transactions as they would inside the branch such as withdrawals, deposits and payments, transfers, and check cashing. The new technology will lower processing costs and provide faster transactions. One service representative can attend to as many four machines at multiple branch locations, enabling the employees at those locations to focus on in-branch member connections.

Visa joins Fido Alliance

The FIDO Alliance, an industry consortium revolutionizing online authentication with standards for strong authentication, announced that Visa, the global payments technology company, has joined. With this, Visa been appointed to the Board of Directors. Also, Visa Europe will join the alliance as a sponsor member and will be represented on the board by Visa Inc. FIDO Alliance members commit to share technology and collaborate to deliver open specifications for universal strong authentication that enables FIDO-compliant authentication methods to be interoperable, more secure and private, and easier-to-use. FIDO specifications will support a full range of authentication technologies, including biometrics such as fingerprint, eye and iris scanners, voice and facial recognition, as well as further enabling existing solutions and communications standards, such as Trusted Platform Modules (TPM), USB Security Tokens, embedded Secure Elements (eSE), Smart Cards, Bluetooth Low Energy (BLE), and NFC.

FIS Wins Category at World Finance Awards

FIS banking and payments technology won “Best Mobile Banking Technology” at the 2014 World Finance Technology Awards.The World Finance Technology Awards, produced by international financial magazine World Finance, were created to celebrate “achievement, innovation and brilliance” in technological advancements. Nominations are based on reader insight, and are judged by a panel with more than 230 years of financial and business journalism experience. In addition, each award winner is carefully reviewed by a research team to make sure its work is of the highest caliber. This is the fourth major award FIS’ mobile business has received in the last six months, including: 2014 Frost & Sullivan Customer Value Enhancement Award for FIS Mobile Wallet, 2013 Best in Class Mobile Banking Vendor Overall by Javelin Strategy & Research No. 1 in Top 3 Mobile Banking Vendor Standards and Customized Solutions and No. 1 in Top 3 Mobile Banking Standard Solutions by Javelin Strategy & Research.

CyberArk Simplifies PCI DSS 3.0 Compliance

CyberArk has released a new white paper demonstrating how retailers can comply with the latest PCI DSS regulations, Securing Privileged Accounts: Meeting the Payment Card Industry Data Security Standard 3.0. The paper outlines how organizations can navigate increasingly stringent compliance regulations by locking down the most targeted attack vector – privileged accounts. Securing privileged accounts is not only one of the most important aspects of protecting cardholder data, it is critical to maintaining control over the IT infrastructure itself. The newly released regulations outlined in version 3.0 underscore the importance of shared responsibility when working with third-parties and requires all entities to align with its regulations by December 31, 2014. CyberArk provides a comprehensive approach to help organizations comply with PCI DSS and protect cardholder data. With CyberArk, organizations can implement effective security to: