The PYMNTS.com Payments as a Service Tracker

Transcription

/
a
collaboration
Payments as a Service TrackerTM
May 2016
It’s Getting Real On The
Retail Revolution Frontline
33%
The increase in consumers
using virtual or digital loyalty
cards from 2012 to 2014
Tracker grades
range from
83-25
with an
average score of
49.53
$231B
Mobile transactions in
the U.S. hit $231 billion
last year, a 42 percent
increase from 2014
Payments as a Service TrackerTM
03
What’s Inside
05
Cover Story
09
Methodology
10
Top 20 Rankings
14
Watch List – New Additions
15
News and Trends
18
Scorecard
33
About
© 2016 PYMNTS.com all rights reserved
2

What’s Inside
Payments as a Service — platforms or programs that help retailers, restaurants and other businesses turn
everyday purchases and transactions into full-service customer experiences — has grown into a crucial
component of commerce.
In order to offer merchants and consumers the most complete services possible, multiple players around
the space formed collaborations and partnerships over the past month, aimed at turning transactions into
meaningful customer experiences. While the partnerships may have varying goals, each is designed to
combine services offered by two distinct companies into one comprehensive solution.
Here’s a look at some recent notable Payments as a Service news items:
Starmount, an omnichannel solution provider, announced it would partner with payment solution provider
Aurus, Inc. for a new omnichannel payment service. Under the terms of the agreement, Aurus will provide
features like global tokenization and cross-channel transaction feasibility, along with help accepting alternative
payment methods like PayPal, to Starmount merchants. The collaboration will enable consumers already using
Starmount solutions to roll out an omnichannel payment solution for both online and in-store purchases.
Similarly, mobile point-of-sale provider CardFlight and secure payment hardware manufacturer Miura recently
came together to debut a new mPOS solution, manufactured by Miura, that will operate on the CardFlight
mPOS platform. The device, called the Bold B550 reader by CardFlight, will pair with mobile devices via
Bluetooth rather than through the audio jack to accept Apple Pay, Android Pay, contactless NFC payments,
EMV chip card, and magnetic stripe payments.
Apriva and iPayment also announced they would collaborate to help small businesses make the jump to
EMV card acceptance with a new series of EMV-based mPOS solutions. Under the terms of the partnership,
iPayments users will be able to use Apple, Android and Amazon Fire devices as mPOS systems via a whitelabel version of AprivaPay Plus.
Finally, cloud-based restaurant automation provider HotSchedules and hospitality software service provider
Agilysys rolled out a workforce management solution designed for the hospitality industry. Agilysys will now
provide a labor management solution and POS designed to help businesses create schedules more quickly.
The solution is designed to help hospitality businesses save on labor costs, streamline operations and
improve user experience.
Retail revolutions
Not too long ago, the standard retail checkout process was relatively one-size-fits-all – customers waited in
line, gave their purchases to a cashier (who stood at a fixed point in the store), and paid using cash or a card.
Times have changed.
3

What’s Inside
The retail industry has transformed as payments revolutions have swept through the space, which has both
created challenges and provided opportunities for offline merchants. To look at some of these challenges
and opportunities, the May Tracker cover story features an interview with Dax Dasilva, CEO of Lightspeed, a
company that helps businesses adapt to EMV and other payments innovations via cloud-based systems.
The Payments as a Service May Tracker Updates
In this issue, we’ve profiled 30 global Payments as a Service providers to highlight their contributions to the
movements taking place across this burgeoning ecosystem. Among the providers, there are 6 additions to
the Tracker: Chase Paymentech, Elavon, Harbortouch, Heartland Payment Systems, Merchant e-Solutions,
and Planet Payment.
4

“
Cover Story
...it’s our responsibility
”
to teach them about these tools...
It’s Getting Real On The Retail Revolution Frontline
These days, retail merchants must reach customers, both in-store and online, securely and conveniently.
There’s increasingly less middle ground between getting omnichannel right or fading into oblivion. To adapt,
let alone thrive, businesses with store locations must embrace EMV, the latest in payments security and
authentication, especially considering the retailers themselves have taken on more responsibility for fraud
after 2015’s liability shift.
“The challenge for the last year has just been educating our customer base. We don’t want to see them
negatively impacted by a fraud risk,” said Dax Dasilva, CEO of Lightspeed, a company providing cloud-based
systems that integrate in-store and online sales into one omnichannel solution while helping companies
embrace EMV and other payment innovations.
Now that merchants are more responsible for fraud that happens in their stores, he said, “it’s our responsibility
to teach them about these tools, like EMV, that can secure them and secure their businesses. So that’s a really
big, important part of us preparing our customers for the new realities.”
To discuss the revolutions that have driven payments from simple transactions to full-service customer
experiences, PYMNTS spoke with Dasilva about the challenges that retailers have faced – and continue to
deal with – as their businesses evolve.
The Four Recent Payments Revolutions
According to Dasilva, the past decade-plus has brought four major payments revolutions, each of which shook
the retail industry. These changes have forced merchants to constantly be ready to adapt to and embrace new
developments quickly if they hope to maximize their potential profits.
5

Cover Story
And it all started with Apple, he said.
“I would say around 2010, 2011, 2012, with Apple having mobile payments acceptance in stores, checking out
on mobile devices, that’s where we saw transactions become much more personal,” Dasilva said of in-store
retail experiences. “That was one of the revolutions that happened in retail over the past few years, where you
say ‘how do I, as an independent retailer, make my experience memorable? How do I get people off the couch
and into my store? How do I keep them coming back?’”
As Dasilva pointed out, it’s not as if those Apple products that seemingly everyone wanted were not also
available online or through other channels. Apple was able to make their retail stores so popular, Dasilva said,
by making a visit to their store a unique experience for their customers. The company filled the stores with
helpful employees, and enabled those employees to help customers from anywhere in the store, transforming
the customer experience.
The second revolution, Dasilva said, was replicating that Apple Store-type experience, which enabled
employees to help customers find what they were looking for and pay for their purchases from anywhere
in the store using iPads and other mobile devices, among countless retail SMBs. Lightspeed itself, he said,
actually worked with Apple to bring its own solution to all its SMB clients – “every small business that sold
inventory,” he said.
Next up was the emergence of the cloud, an innovation Dasilva called
revolutionary, because it enabled merchants to “bring all their data into
one place.” That made it easier for retailers to see what customers did
and purchased, both online and in-store, allowing them to build deeper
connections with consumers. With the cloud, retailers with more than one
store could now easily have one database, Dasilva said.
“
And it all started
with Apple, he said.”
Utilizing the cloud for POS, he said, “You can really start to build a relationship with a customer, because you
can see all the ways you’ve interacted with the customer, and everything they bought. And, you can use that
data to find out what they’re going to like and market to them.”
According to Dasilva, the fourth and most recent revolution retailers have encountered is the rise of
omnichannel. Now, he said, “it’s not an option to just be online or just be in store. You must have a
blended model.”
He continued, “All of the great eCommerce brands are opening stores, and the retail stores that are
experiencing the renaissance are the ones that are innovating with this new online presence.”
6

Cover Story
Revolution du Jour: Omnichannel
So far, integrating online and offline transactions and information has been a challenge for the kinds of small,
independent retailers that Dasilva and his team work with.
“A lot of the venture capital based retailers, whether they start online or are a blended model, they have large
teams of developers to build innovative omnichannel business models,” Dasilva said. “But, not everybody has
that kind of budget, especially retail stores. They don’t have a dev team, so they’re going to need the same tools
to be great online, to be great in-store, to be great on social media. To have the right products ordered, for the
right customers, at the right moment, on the right sales channels. So, it’s a high bar for specialty retail.”
Dasilva said his company works with independent retailers, including high ticket retailers and specialty
stores like Funkear electronics and Brink Cycleworks, to help those merchants provide secure and convenient
payments that are consistent whether they’re conducted in-store or online. And for those kinds of businesses,
EMV is a crucial tool.
“EMV is actually quite important for those (high ticket businesses) because there’s a lot to lose on each
transaction if there’s fraud,” Dasilva explained, drawing a distinction between a store like Walmart, which
sells a slew of low-priced items, and high-end, specialty stores.
“
...to be great online,
to be great in-store,
to be great on
social media.”
Security is even more crucial when it comes to online purchases, Dasilva
said, because customers physically present a card in-store. As a result,
there are more security measures that can be taken offline, such as chip
and PIN or chip and signature authentication.
“Online, there are all sorts of measures that are taken, obviously, but
when you’re presenting a card physically in a store, that rate of fraud
is just lower,” he said.
The Next Revolution …
So, what’s the next revolution for full-service payments? Dasilva said he expects payments to become more
mobile, allowing retailers to complete purchases from anywhere in their brick-and-mortar locations in order
to provide a better experience for their customers — and he expects EMV to be a big part of that.
“I think it’s in our merchants’ interest to want to create those memorable experiences in-store,” Dasilva said.
“Sometimes that’s being behind a counter and ringing up a sale and that’s a great experience. But, sometimes
you can really blow the customer away by having a conversation on the showroom floor with an iPad with a
payment acceptance device,” he said, then added that EMV poses a challenge to that seamlessness.
“Pre-EMV we had a lot of card swipes that would attach to iPads or mobile devices and, like at the Apple Store,
you could do a checkout process from anywhere on the showroom floor,” he explained. “So, that’s taken a little
bit of a step back with EMV,” which means that “retailers that want to create a personal relationship in the store,
they don’t have some of the same tools with EMV.”
7

Cover Story
While mobility is key, Dasilva said retailers will still need to balance the need for speed and convenience
with security, even when conducting transactions in-store.
Take the recent Target breach, which Dasilva said served as a “wake-up call” for merchants who thought
in-store payments were safe.
“When you see a really devastating example like the Target breach, you realize the potential for in-store
payments to be compromised if people are not using best practices,” including EMV, Dasilva said.
No matter what comes next, retailers will need to be able to adjust to new innovations, fraud risks and security
needs quickly – and Dasilva said that those small, independent omnichannel merchants will be best equipped
to drive the industry forward.
“These are the business that are nimble enough, that are open to new tools. I think they’re going to outpace
the big lumbering big box and chain stores,” he said. “I think the independent retailers of today are going to
be some of the innovative larger chains of tomorrow.”
Be on the lookout for further retail revolutions – coming to stores near (and far from) you.
8

Methodology
Scoring breakdown
The score included in the report evaluates the different capabilities each provider offers. Different weights
were assigned to each feature, depending on which ones improve and make the merchant experience easier
through payments processing and also by helping in every aspect of selling and buying. The weights range
from 25% to 5%:

Payments Acceptance and Processing: 25% of weight
Involves the different types of payments the providers accept and was segmented in
Mobile Wallets, Gift Cards, Open loop cards, Closed loop cards and ACH payments.
POS: 25% of weight
Evaluates the features that enable merchants to accept payments easily in a store or
online (Online Ordering, Omnichannel and Physical POS Integration).

Engagement and Marketing: 20% of weight
Includes capabilities offered to help companies capture and engage customers, and in
turn making them more loyal (such as Rewards, Coupons, Beacons, CRM and Social Media).

Security: 15% of weight
Evaluates the features offered to prevent fraud and to enable safer and more accurate
identification of consumers or businesses. The subcategories included are: PCI Compliant,
Tokenization and Fraud Management, and Analytics..

Hardware: 5% of weight
Takes into consideration if the provider offers a device to process payments.


Operations: 5% of weight
Evaluates different capabilities offered to administrate the business, such as Inventory
Management, Dynamic Pricing, Analytic Informs and Catalogue.

Software: 5% of weight
Evaluates which type of software management the provider offers. The software can be
Cloud Architecture, Local/client/terminal or other.
9

Top 20 Rankings
Payments as a Service Top 20
Rank
Company
Score
83
1
Cayan is a provider of payment technologies, including the Cayan Genius service, which aggregates and
integrates every conceivable transaction technology, payment type and customer program into a single
platform. Genius operates as a customer engagement platform interface when customers pay. Some
payments this gateway accepts are: credit cards, debit cards, gift cards, loyalty cards, chip cards (EMV)...
78
2
First Data Corporation is a global provider of electronic commerce and payment processing services designed
for merchants, financial institutions and their customers. The firm processes payment transactions in a fast,
easy and secure way. First Data accepts credit and debit cards, EMV chip cards, electronic checks, and private
label and gift cards. The cloud-based platform also offers management capabilities, such as reporting...
74
3
Verifone is a payment and commerce solutions provider, which offers a PaaS solution that combines
hardware, software and services into a flexible managed services suite. The solution has a cost-predictable
subscription model that allows merchants to accept chip cards (EMV) and NFC/wallets with loyalty and
rewards transactions. It also has an omnichannel general integration, which provides analytics and reporting...
72
4
Aurus Pay is a payment processing platform integrated with major payment processors in the United States
and 11 countries around the world. Aurus Pay processes payments from credit and debit cards (EMV), NFC,
and Apple Pay. It also enables mobile and online ordering. Some capabilities from the platform include digital
messaging and marketing, personalized campaign management, digital couponing, and loyalty programs...
71
5
Agilysys is a developer and marketer of proprietary enterprise software, services and solutions for the
hospitality industry. The company specializes in point of sale, property management, inventory and
procurement, workforce management, and mobile and wireless solutions and services. Its POS solution,
InfoGenesis, integrates with other applications, including property management, inventory and procurement...
10

Top 20 Rankings
64
6
RedFynn provides retailers with a cloud-based solution which offers payments processing and business
intelligence. Its terminals accept all major credit cards, ACH payments such as eChecks, EMV chip cards and
gift cards. RedFynn helps merchants to improve customer engagement with reward programs and CRM tools.
The solution offers stock management, as well as analytics. RedFynn uses tokenization to store sensitive...
60
7
Payline Data is a payment processor with small-to-medium business solutions. Payline accepts credit and
debit card payments as well as EMV chip cards and all types of mobile payments that use NFC technology,
such as Apple Pay. Some of Payline’s features include inventory management, multi-store management,
loyalty capabilities and analytics. It also provides solutions for physical, online and mobile stores...
59
8
9
Tie
9
Tie
NCR Corporation is a payment SaaS solution provider, supporting payments that include credit and debit cards
with EMV chips, mobile payments and e-wallets. The platform offers in-store, mobile and online payments,
loyalty management, inventory management of an online catalog, and more. NCR is a PCI-compliant firm that
uses P2P encryption and tokenization.
56
Elavon Inc. provides payment processing solutions and services for small to enterprise-sized businesses.
It offers reseller and referral programs, including merchant processing services for financial institutions,
payment processing services for MSPs/ISOs and customer relationship management services. It also
provides Commerce SDK for developers at businesses, value added resellers, agents, and solutions...
56
TSYS Merchant Solutions is a payment acceptance solutions provider that offers services that range from
regular credit card processing to new technologies such as contactless payments and EMV. Its merchant
solution includes marketing features such as the option for users to establish a reward and gift card program,
and it also integrates with an online dashboard that allows users to monitor reviews in social media...
11

Top 20 Rankings
55
11
12
Tie
12
Tie
Total Merchant Services is a credit card merchant account acquirer that enables businesses to accept all
major credit cards, debit cards, checks and EBT. For marketing functionalities, it has a loyalty card program
as well as a gift card program. Total Merchant Services integrates multi-application credit card readers and
processing terminals, which transmits from a retail terminal, to wireless and mobile. In addition...
54
Chase Paymentech is the payment processing and merchant acquiring business of JPMorgan Chase.
Paymentech payment platforms help businesses of all sizes process payments, including credit, debit, and
digital, alternative, mobile payment options. The company also provides business analytics, payment fraud
detection and data security solutions.
54
Square’s register service is a point of sale that allows merchants to accept credit cards and track inventory. It
also provides financial and marketing services, including small business financing and customer engagement
tools. With Square, merchants can monitor sales and create sales reports. It also provides merchants with
analytics and feedback. Square Register works on a smartphone or a tablet, and upgrades automatically...
53
14
Ingenico Group is a global provider of seamless payments, offering solutions to empower commerce across
all channels, including in-store, online and mobile. Accepted Ingenico payments include credit and debit cards,
EMV chip cards, closed-loop payment networks, contactless or NFC technologies, e-wallets and QR code
payment solutions. In addition, Ingenico has a full range of customer loyalty solutions, including loyalty...
52
15
Net Element provides a PaaS framework. The company is a global technology-driven group specializing
in mobile payments and value-added transactional services. Its solutions enable payments in the online
and offline commerce and add value in the mobile commerce and alternative payments environments. Net
Element offers security tools such as PCI compliance. It accepts all major credit cards, EMV chip cards...
12

Top 20 Rankings
51
16
Poynt is a payment as a service provider that allows merchants to accept credit cards (through magnetic
stripe or EMV), gift cards and other mobile wallets such as Apple Pay and Google Wallet. Poynt’s hardware
and software have both received PCI PTS, PCI-DSS and EMV certification.
50
17
First American Payment Systems is a non-bank merchant bank card processing acquirer. In addition to credit,
debit and EBT card processing services, First American offers a complete line of proprietary products and
services to businesses and nonprofits, including 1stPayPOS, 1stPayMobile, Secur-Chex® check services,
FirstAdvantage® gift cards, FirstPay.Net eCommerce solutions, FirstFund® ACH software, Govolution®...
49
18
Alpha Payments Cloud offers AlphaHub, an all-in-one Payments-as-a-Service platform that consolidates a
wide range of payment types and solutions. AlphaHub’s orchestration engine allows users to customize down
to the individual transaction layer using conditional logic. The omnichannel platform also offers anti-fraud
features such as identification and customer behavioral analytics. Merchants can also structure their loyalty...
44
19
Heartland Payment Systems provides bank card-based payment processing services to SMBs. The company
has developed or acquired businesses in payroll processing, gift card and campus card solutions, point of sale
systems, school payments and nutrition, network management, mobile payments and ordering, ecommerce,
billing solutions, and lending services.
43
20
National Bankcard Services is an electronic payment provider that processes transactions by credit cards,
debit cards, EBT and mobile wallets like Apple Pay. Supported technologies are EMV, NFC and magnetic strip.
The platform provides its users with a loyalty reward program and a gift card program, as well as an online
reporting service. It uses encryption to securely store merchant information.
13

Watch List
New Additions to the Payments as a ServiceTM Tracker
Chase Paymentech
Elavon
Harbortouch
Heartland
Merchant e-Solutions
Planet Payment
14

News and Trends
Payment Acceptance and Processing
iPayment, Parlevel form payment-processing, acceptance partnership
Payment solution provider iPayment and vending management solution provider Parlevel announced a new
partnership last month. Under the partnership’s terms, Parlevel will offer iPayment customers integrated
payment processing services and acceptance solutions. iPayment executives said in a press release that
the collaboration was motivated by the company’s need “to create a payments offering that provided full
transparency, while also being easy to implement and manage.”
Verifone to help expand Samsung Pay acceptance
Verifone, a payment and commerce solutions provider, announced a new partnership with Samsung designed
to help merchants more quickly accept Samsung Pay. All Verifone terminals will now accept Samsung Pay,
which uses NFC and Magnetic Secure Transmission, to pay at terminals with EMV and NFC capabilities along
with existing terminals that only accept swipe payments.
Starmount, Aurus team up for omnichannel payment solution
Omnichannel solution provider Starmount announced it would team up with payment solution provider Aurus,
Inc. for a new omnichannel payment service. The service will allow customers already using Starmount
solutions to implement an omnichannel payment solution for both online and in-store purchases. Aurus will
provide Starmount merchants with global tokenization across all channels and cross-channel transaction
feasibility, while also helping them accept alternative payment methods such as PayPal.
POS/POS Integration
Revel Systems, Verifone collaborate for POS integration
Verifone announced that its Verifone Point Classic payment services solution will now be integrated with Revel
Systems’ iPad POS. The integration is designed to help merchants more simply accept and manage EMV
payments. Verifone will also provide Revel merchants with faster access to mobile wallets, loyalty programs
and other new payment innovations and help eliminate the need for recertification.
CardFlight, Miura debut new mPOS solution
Mobile point-of-sale provider CardFlight and secure payment hardware manufacturer Miura recently partnered
to debut a new mPOS solution that will run on CardFlight’s mPOS platform. The device, called the Bold B550
reader by CardFlight, will be manufactured by Miura and allow merchants to accept Apple Pay, Android Pay,
contactless NFC payments, EMV chip cards, and magnetic stripe payments. The device will pair with mobile
devices via Bluetooth rather than through the audio jack.
15

News and Trends
Hardware/Software
BillingTree debuts Payrazr Marketplace
BillingTree recently debuted a new technology and payment solutions source, dubbed the Payrazr Marketplace.
The launch is aimed at helping merchants accept automated telephone payments. The Marketplace will
include my Payrazr Gateway, a custom platform for payment gateways, among other solutions.
Net Element rolls out omnichannel gift and loyalty platform
Global mobile payment technology solutions and value-added transactional services provider Net Element, Inc.
rolled out Unified Payments, a new gift and loyalty platform for SMBs. The company will help sales partners,
developers and merchants offer the platform for clients using any payment processing platform. The platform
is compatible with most mobile EMV POS systems and card terminals.
Security and Operations
Apriva, iPayment partner to bring EMV to SMBs
Apriva and iPayment are coming together to help small businesses make the jump to EMV card acceptance.
The pair announced they would partner for a new series of EMV-based mPOS solutions. Under terms of the
partnership, iPayment will offer a white-label version of the AprivaPay Plus, which will allow iPayment users to
use Apple, Android and Amazon Fire devices as mPOS systems.
First American Payment Systems, UL Transaction Security announce partnership
First American Payment Systems and UL Transaction Security announced a new partnership designed to help
ISVs and VARs with EMV validation. Under the terms of the partnership, the two companies will offer ASTREX,
a new testing environment and tool for the semi-integrated EMV product, designed to reduce time-to-market,
cost and development.
Total Merchant Services makes EMV-compliant tech available to developers
Total Merchant Services announced last month that it would make its Groovv Software Development Kit
available for all software and app developers. The payment services and solutions provider said the software
would make it easier and cheaper for developers to make sure their clients and users are complaint with EMV
and PCI requirements.
Verifone gains EMV acceptance certification for Commander Site Controller
Verifone’s Commander Site Controller was certified for EMV acceptance with First Data’s Rapid Connect.
The certification is designed to help gas stations and convenience stores accept EMV payments, as those
businesses have had an especially difficult time with the EMV shift because they rely on their POS systems to
manage payments and other operations.
16

News and Trends
General Payments as a Service
Agilysys announces general availability for rGuest Stay
Agilysys announced this month that it would make its rGuest Stay property management system generally
available. The solution is currently designed for select-service hotels and chains, but the company said that
future updates of rGuest Stay will serve full-service hotels, resorts and casino gaming properties. rGuest Stay
allows hotels to manage their guest services, track room inventory, accept reservations and more.
17

Scorecard
Company: Adyen
Founded in: 2006
Headquarters: Netherlands
Status: Publicly traded
Payments Acceptance
Engagement & Marketing
Type of Payment
9
4
25

Type of Hardware
5

Operations

1

Type of Security

10
Software Management
Total Score
0
54


Adyen is a global multichannel payment company providing businesses with a fully outsourced payment
solution which allows merchants to accept payments from anywhere in the world. The platform accepts a wide
range of electronic payments, including credit cards, debit cards, gift cards, EMV chip cards, and real-time bank
transfers. Adyen provides its services to mid, large and enterprise eCommerce merchants. The service is PCI
compliant and uses tokenization.
Company: Agilysys
Founded in: 1963
Headquarters: USA
Net revenue: €1.403 billion
(2014)
Payments Acceptance
Type of Payment
14
7
25

Type of Hardware
5

Operations

3

Type of Security

15
Software Management
Total Score
2
71


Agilysys is a developer and marketer of proprietary enterprise software, services and solutions for the
hospitality industry. The company specializes in point of sale, property management, inventory and
procurement, workforce management, and mobile and wireless solutions and services. Its POS solution,
InfoGenesis, integrates with other applications, including property management, inventory and procurement,
self-service options, and property activities. It also provides data analytics and accepted technologies,
including EMV chip cards and NFC contactless payments. As for security, Agilysys is a PCI-compliant firm and
utilizes tokenization and fraud management tools.
18

Scorecard
Company:
Alpha Payments Cloud
Founded in: 1978
Headquarters: Singapore
Payments Acceptance
Type of Payment
16
7
13

Operations
Type of Hardware
0


1

Updated!
Type of Security

10
Software Management
Total Score
2
49


Alpha Payments Cloud offers AlphaHub, an all-in-one Payments-as-a-Service platform that consolidates a wide
range of payment types and solutions. AlphaHub’s orchestration engine allows users to customize down to the
individual transaction layer using conditional logic. The omnichannel platform also offers anti-fraud features
such as identification and customer behavioral analytics. Merchants can also structure their loyalty marketing
efforts by introducing incentive programs to customers.
Company: Aurus Inc.
Founded in: 2000
Headquarters: USA
Payments Acceptance
Type of Payment
14
18
19

Operations
Type of Hardware
5


1

Type of Security

15
Software Management
Total Score
0
72


Aurus Pay is a payment processing platform integrated with major payment processors in the United States
and 11 countries around the world. Aurus Pay processes payments from credit and debit cards (EMV), NFC,
and Apple Pay. It also enables mobile and online ordering. Some capabilities from the platform include digital
messaging and marketing, personalized campaign management, digital couponing, and loyalty programs.
Aurus security products include AurusShield, which takes the POS out of PCI Scope. It uses tokenization,
P2P encryption and supports various fraud and risk management techniques. The firm is PCI certified.
19

Scorecard
Company: Cayan
Founded in: 1998
Headquarters: USA
Status: Privately held
Payments Acceptance
Type of Payment
18
17
25

Type of Hardware
5

Operations

1

Updated!
Type of Security

15
Software Management
Total Score
2
83


Cayan is a provider of payment technologies, including the Cayan Genius service, which aggregates and
integrates every conceivable transaction technology, payment type and customer program into a single
platform. Genius operates as a customer engagement platform interface when customers pay. Some
payments this gateway accepts are: credit cards, debit cards, gift cards, loyalty cards, chip cards (EMV),
NFC, Apple Pay, Android Pay and Samsung Pay. Genius allows both online and in-store ordering and also
provides analytics from its screen marketing. Security capabilities include tokenization, P2P encryption
and PCI compliance.
Company:
Chase Paymentech
Founded in: 1985
Headquarters: USA
Net income: $23.9 billion
Payments Acceptance
Type of Payment
22
0
6

Type of Hardware
5

Operations

4

New!
Type of Security

15
Software Management
Total Score
2
54


Chase Paymentech is the payment processing and merchant acquiring business of JPMorgan Chase.
Paymentech payment platforms help businesses of all sizes process payments, including credit, debit,
and digital, alternative, mobile payment options. The company also provides business analytics, payment
fraud detection and data security solutions.
20

Scorecard
Company: Corduro
Founded in: 2010
Headquarters: USA
Payments Acceptance
Type of Payment
7
16
6

Operations
Type of Hardware
0


0

Type of Security

5
Software Management
Total Score
0
33


Corduro’s enterprise platform provides a complete PaaS framework, supporting mobile, online and POS
terminals. It is a software mobile payments platform providing big data and social media capabilities with
its payment processing. It accepts credit card and ACH payments. This payment network is an established
solution that spans across numerous markets, leveraging their ability to route payments anywhere, anytime to
the least cost provider. It is a certified Level 1 PCI Compliant service provider.
Company: Elavon
Founded in: 1991
Headquarters: USA
Payments Acceptance
Type of Payment
22
8
6

Operations
Type of Hardware
5


3

New!
Type of Security

10
Software Management
Total Score
2
56


Elavon Inc. provides payment processing solutions and services for small to enterprise-sized businesses.
It offers reseller and referral programs, including merchant processing services for financial institutions,
payment processing services for MSPs/ISOs and customer relationship management services. It also provides
Commerce SDK for developers at businesses, value added resellers, agents, and solutions providers to
combine its payment processing, EMV certification coding, encryption and tokenization implementation, and
hardware support for printers, terminals, and mobile devices.
21

Scorecard
Company: First American
Payment Systems
Founded in: 1990
Headquarters: USA
Payments Acceptance
Type of Payment
20
8
6

Operations
Type of Hardware
5


1

Type of Security

10
Software Management
Total Score
0
50


First American Payment Systems is a non-bank merchant bank card processing acquirer. In addition to credit,
debit and EBT card processing services, First American offers a complete line of proprietary products and
services to businesses and nonprofits, including 1stPayPOS, 1stPayMobile, Secur-Chex® check services,
FirstAdvantage® gift cards, FirstPay.Net eCommerce solutions, FirstFund® ACH software, Govolution®
government e-payments, national ATM sales, and Merimac Capital® point-of-sale equipment and ATM leasing.
Company:
First Data Corporation
Founded in: 1971
Headquarters: USA
Annual revenue: $11.2 billion
(2014)
Payments Acceptance
Type of Payment
22
17
13

Operations
Type of Hardware
5


3

Type of Security

15
Software Management
Total Score
3
78


First Data Corporation is a global provider of electronic commerce and payment processing services designed
for merchants, financial institutions and their customers. The firm processes payment transactions in a fast,
easy and secure way. First Data accepts credit and debit cards, EMV chip cards, electronic checks, and private
label and gift cards. The cloud-based platform also offers management capabilities, such as reporting and
inventory tools. First Data provides clients a secure solution with PCI certification and tokenization.
22

Scorecard
Company: Harbortouch
Founded in: 1999
Headquarters: USA
Status: Privately traded
Payments Acceptance
Type of Payment
12
7
13

Type of Hardware
5

Operations

0

New!
Type of Security

0
Software Management
Total Score
2
39


Harbortouch offers a range of merchant services, supplying POS systems, electronic cash registers and credit
card processing terminals as part of its free equipment program. The company provides payment processing
services for many electronic payment methods, such as credit cards, debit cards, gift cards and loyalty cards.
It also offers merchant services such as check services, cash advances and multiple online merchant services
and processing options.
Company: Heartland
Payment Systems
Founded in: 1997
Headquarters: USA
Net income: $84.7 million
Payments Acceptance
Type of Payment
18
7
6

Type of Hardware
0

Operations

1

New!
Type of Security

10
Software Management
Total Score
2
44


Heartland Payment Systems provides bank card-based payment processing services to SMBs. The company
has developed or acquired businesses in payroll processing, gift card and campus card solutions, point of sale
systems, school payments and nutrition, network management, mobile payments and ordering, ecommerce,
billing solutions, and lending services.
23

Scorecard
Company: Ingenico Group
Founded in: 1980
Headquarters: France
Annual revenue: €1.607 billion
(2014)
Payments Acceptance
Type of Payment
18
10
19

Type of Hardware
0

Operations

1

Updated!
Type of Security

5
Software Management
Total Score
0
53


Ingenico Group is a global provider of seamless payments, offering solutions to empower commerce across
all channels, including in-store, online and mobile. Accepted Ingenico payments include credit and debit cards,
EMV chip cards, closed-loop payment networks, contactless or NFC technologies, e-wallets and QR code
payment solutions. In addition, Ingenico has a full range of customer loyalty solutions, including loyalty card
and loyalty program management, prepaid card and gift card management, customer data analysis, marketing
campaign management, and more. Its platform solution is PCI compliant.
Company:
Merchant e-Solutions
Founded in: 1999
Headquarters: USA
Status: Privately traded
Payments Acceptance
Type of Payment
14
0
6

Type of Hardware
0

Operations

1

New!
Type of Security

15
Software Management
Total Score
2
38


Merchant e-Solutions provides payment processing services, including mobile credit card payment processing
solutions through iPhone, iPad, or Android smartphones, online payment processing solutions comprising
phone or mail order transactions, point-of-sale payment processing options, debit card and alternative payment
solutions. Its platform allows users to manage business and account preferences, and run reports and
merchants to accept payments in foreign currencies.
24

Scorecard
Company:
Mint Payments Limited
Founded in: 2007
Headquarters: Australia
Annual revenue: $2.15 million
(2014)
Payments Acceptance
Type of Payment
12
0
0

Type of Hardware
5

Operations

1

Type of Security

10
Software Management
Total Score
0
28


Mint Payments is a Payment Gateway and mPOS provider. It enables organizations and businesses of all sizes
to accept, process and manage payments online and through various mPOS, mobile and tablet devices. Mint
Payments accepts credit cards, ACH, EMV payments and NFC contactless. Mint Payments offers security
capabilities such as tokenization and PCI compliance.
Company:
National Bankcard
Founded in: 2013
Headquarters: USA
Payments Acceptance
Type of Payment
18
9
13

Type of Hardware
0

Operations

1

Updated!
Type of Security

0
Software Management
Total Score
2
43


National Bankcard Services is an electronic payment provider that processes transactions by credit cards,
debit cards, EBT and mobile wallets like Apple Pay. Supported technologies are EMV, NFC and magnetic strip.
The platform provides its users with a loyalty reward program and a gift card program, as well as an online
reporting service. It uses encryption to securely store merchant information.
25

Scorecard
Company: NCR Corporation
Founded in: 1884
Headquarters: USA
Net income: $191 million
(2014)
Payments Acceptance
Type of Payment
12
7
19

Type of Hardware
5

Operations

4

Updated!
Type of Security

10
Software Management
Total Score
2
59


NCR Corporation is a payment SaaS solution provider, supporting payments that include credit and debit cards
with EMV chips, mobile payments and e-wallets. The platform offers in-store, mobile and online payments,
loyalty management, inventory management of an online catalog, and more. NCR is a PCI-compliant firm that
uses P2P encryption and tokenization.
Company: Net Element
Founded in: 2004
Headquarters: USA
Payments Acceptance
Type of Payment
18
10
13

Operations
Type of Hardware
5


1

Updated!
Type of Security

5
Software Management
Total Score
0
52


Net Element provides a PaaS framework. The company is a global technology-driven group specializing in
mobile payments and value-added transactional services. Its solutions enable payments in the online and
offline commerce and add value in the mobile commerce and alternative payments environments. Net Element
offers security tools such as PCI compliance. It accepts all major credit cards, EMV chip cards and mobile
wallets.
26

Scorecard
Company: Payline Data
Founded in: 2009
Headquarters: USA
Payments Acceptance
Type of Payment
14
7
19

Operations
Type of Hardware
5


3

Updated!
Type of Security

10
Software Management
Total Score
2
60


Payline Data is a payment processor with small-to-medium business solutions. Payline accepts credit and
debit card payments as well as EMV chip cards and all types of mobile payments that use NFC technology,
such as Apple Pay. Some of Payline’s features include inventory management, multi-store management,
loyalty capabilities and analytics. It also provides solutions for physical, online and mobile stores. Payline
uses tokenization to store customer data and also provides a fraud prevention service.
Company: PayStand
Founded in: 2013
Headquarters: USA
Payments Acceptance
Type of Payment
9
2
13

Type of Hardware
0

Operations

0

Updated!
Type of Security

5
Software Management
Total Score
0
29


PayStand offers payments as a service solutions, accepting eChecks, eCash and credit cards, for a flat
monthly subscription. PayStand provides merchants with complete contact information as well as APIs to
link CRM. PayStand turns an iPhone into a mobile POS with the card reader, and, as a PCI Level 1-certified
payment processor, adheres to the latest security and fraud prevention standards.
27

Scorecard
Company:
Pivotal Payments, LLC
Founded in: 2003
Headquarters: Canada
Payments Acceptance
Type of Payment
14
7
6

Type of Hardware
5

Operations

0

Updated!
Type of Security

5
Software Management
Total Score
0
37


Pivotal Payments is a merchant services and global payment processing solutions provider. The company
developed FlexPoint, an integrated payment processing platform which offers EMV certification and
accepts Apple Pay, contactless payment cards and more. FlexPoint combines hardware, software and
middleware and provides merchants with the industry’s most stringent security standards, PCI compliance
and point-to-point encryption.
Company: Planet Payment
Founded in: 1999
Headquarters: USA
Status: Publicly held
Payments Acceptance
Type of Payment
14
0
6

Operations
Type of Hardware
0


1

New!
Type of Security

15
Software Management
Total Score
3
39


Planet Payment delivers payment processing and multi-currency. The company offers a centrally hosted
transaction platform, which manages the global connectivity and interaction between consumers, merchants,
banks, and the payment networks.
28

Scorecard
Company: Poynt
Founded in: 2013
Headquarters: USA
Payments Acceptance
Type of Payment
18
10
13

Type of Hardware
5

Operations

0

Updated!
Type of Security

5
Software Management
Total Score
0
51


Poynt is a payment as a service provider that allows merchants to accept credit cards (through magnetic
stripe or EMV), gift cards and other mobile wallets such as Apple Pay and Google Wallet. Poynt’s hardware
and software have both received PCI PTS, PCI-DSS and EMV certification.
Company: RedFynn
Founded in: 2007
Headquarters: USA
Payments Acceptance
Type of Payment
19
11
19

Operations
Type of Hardware
5


3

Updated!
Type of Security

5
Software Management
Total Score
2
64


RedFynn provides retailers with a cloud-based solution which offers payments processing and business
intelligence. Its terminals accept all major credit cards, ACH payments such as eChecks, EMV chip cards and
gift cards. RedFynn helps merchants to improve customer engagement with reward programs and CRM tools.
The solution offers stock management, as well as analytics. RedFynn uses tokenization to store sensitive
payment information off-site.
29

Scorecard
Company:
Shift4 Corporation
Founded in: 1994
Headquarters: USA
Payments Acceptance
Type of Payment
13
0
6

Type of Hardware
0

Operations

1

Updated!
Type of Security

15
Software Management
Total Score
0
35


Shift4 Corporation is a payment getaway solutions developer. Its payment solution offers physical POS
integration and accepts credit, US and Canadian PIN debit, gift cards, signature capture, check verification, and
EMV. Shift4 offers security capabilities such as fraud control tools, tokenized and simplified PCI-compliance.
The solution also provides comprehensive accounting and reporting features allowing merchants to search,
filter, and create custom reports.
Company: Square
Founded in: 2009
Headquarters: USA
Net Income: $1.1 billion
(2014)
Payments Acceptance
Type of Payment
14
11
19

Operations
Type of Hardware
5


3

Updated!
Type of Security

0
Software Management
Total Score
2
54


Square’s register service is a point of sale that allows merchants to accept credit cards and track inventory. It
also provides financial and marketing services, including small business financing and customer engagement
tools. With Square, merchants can monitor sales and create sales reports. It also provides merchants with
analytics and feedback. Square Register works on a smartphone or a tablet, and upgrades automatically. It
currently has no security and fraud features.
30

Scorecard
Company:
Total Merchant Services
Founded in: 1996
Headquarters: USA
Payments Acceptance
Type of Payment
9
12
19

Operations
Type of Hardware
5


0

Updated!
Type of Security

10
Software Management
Total Score
0
55


Total Merchant Services is a credit card merchant account acquirer that enables businesses to accept all
major credit cards, debit cards, checks and EBT. For marketing functionalities, it has a loyalty card program
as well as a gift card program. Total Merchant Services integrates multi-application credit card readers and
processing terminals, which transmits from a retail terminal, to wireless and mobile. In addition to the physical
credit card terminals, Total Merchant Services offers a virtual terminal to run transactions online and an
eCommerce solution to connect a user’s website to a variety of shopping carts. For security, the platform is
PCI compliant and identifies suspicious transactions with built-in fraud tools.
Company:
TSYS Merchant Solutions
Founded in: 1983
Headquarters: USA
Net Income: $322 million
(2014)
Payments Acceptance
Type of Payment
18
10
13

Type of Hardware
0

Operations

3

Updated!
Type of Security

10
Software Management
Total Score
2
56


TSYS Merchant Solutions is a payment acceptance solutions provider that offers services that range from
regular credit card processing to new technologies such as contactless payments and EMV. Its merchant
solution includes marketing features such as the option for users to establish a reward and gift card program,
and it also integrates with an online dashboard that allows users to monitor reviews in social media. For its
operations solutions, the tablet POS and the ShopKeep POS offer different functionalities such as inventory
management and customer sales tracking. It also has multiple solutions for online payment processing. To
protect customers, the platform uses encryption and tokenization and is also PCI compliant.
31

Scorecard
Company: Vantiv
Founded in: 1971
Headquarters: USA
Annual Revenue: €1.607 billion
(2014)
Payments Acceptance
Type of Payment
22
7
6

Operations
Type of Hardware
0


0

Updated!
Type of Security

0
Software Management
Total Score
0
35


Vantiv’s integrated payment processing solution, formerly known as Mercury Pay, is a POS platform that
supports the most common payment types like credit, debit, check, EBT and gift cards, as well as EMV chip
cards. The platform is a cloud-based delivery model for customer acquisition and retention. Features include
protecting card data with PCI-DSS requirements. The solution also provides reporting analytics.
Company: Verifone
Founded in: 1981
Headquarters: USA
Payments Acceptance
Type of Payment
18
19
13

Operations
Type of Hardware
5


1

Updated!
Type of Security

15
Software Management
Total Score
3
74


Verifone is a payment and commerce solutions provider, which offers a PaaS solution that combines
hardware, software and services into a flexible managed services suite. The solution has a cost-predictable
subscription model that allows merchants to accept chip cards (EMV) and NFC/wallets with loyalty and
rewards transactions. It also has an omnichannel general integration, which provides analytics and reporting.
The platform uses E2EE/tokenization, data encryption and is PCI compliant.
32
About
PYMNTS Payments as a Service Tracker
The PYMNTS.com Payments as a Service Tracker™ is a monthly report designed to give an overview of
the trends and activities of merchant platforms that not only enable payment processing of new and old
technologies, but that also integrates with other features that make the merchant’s experience easier such as
customer engagement, security, omnichannel retail experience, analytics, inventory management, software and
hardware management, and more.
The tracker will also include the latest news and highlights about key players of the payments as a service
space, as well as a directory describing key providers and their capabilities and a scoring for each firm.
Scoring
We evaluate companies based on the types of payments they accept, the type of customer engagement
platforms they offer, the type of POS available, their security measures, their operation features, and their
hardware and software management capabilities.
The companies that were included in the analysis support the following types of payments:
‧ Mobile wallets (Apple Pay, Android Pay, PayPal, Samsung Pay)
‧ Gift Cards
‧ Standard open loop cards (Visa, MasterCard)
‧ Closed loop/private label (American Express, Discover)
‧ ACH/direct debit
‧ EMV Chip Cards

The customer engagement capabilities that these companies offer are:
‧ Loyalty/Rewards programs
‧ Coupons
‧ Beacons
‧ CRM
‧ Social Media integration

The types of POS services they offered are:
‧ Online ordering
‧ Omnichannel
‧ Physical POS Integration

Consumer authentication and security features include:
‧ PCI
‧ Tokenization
‧ Fraud management and analytics

33
About
Firms’ operations capabilities include:
‧ Catalogue
‧ Inventory management
‧ Dynamic Pricing
‧ Analytics

Software management platform was evaluated based on the type of software:
‧ Cloud architecture
‧ Local/Client/Terminal
‧ Others

Scores for the hardware management category were based on whether or not they offered a device
management service.

PYMNTS.com
PYMNTS.com is where the best minds and the best content meet on the web to learn about “What’s Next” in
payments and commerce. Our interactive platform is reinventing the way in which companies in payments
share relevant information about the initiatives that shape the future of this dynamic sector and make news.
Our data and analytics team includes economists, data scientists and industry analysts who work with
companies to measure and quantify the innovation that is at the cutting edge of this new world.
34
Disclaimer
The Payments as a Service TrackerTM may be updated periodically. While reasonable efforts are made to
keep the content accurate and up-to-date, PYMNTS.COM: MAKES NO REPRESENTATIONS OR WARRANTIES
OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS, ACCURACY, COMPLETENESS,
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NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, OR DAMAGES
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35

The PYMNTS.com Payments as a Service Tracker

Transcription

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