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NewsBriefs

Editor's Note: Following are excerpts from news stories recently posted research, to be conducted by McKinsey & Co. and Blueflame
under Breaking Industry News on our home page. For links to these and Consulting LLC, will separately survey banks and
other full news stories, please visit www.greensheet.com/breakingnews. processors to assess banking and payment card processing
php?flag=previous_breaking_news. trends. The study's executive sponsor, Mary Kepler, senior
vice president of the Federal Reserve Bank of Atlanta, said
the Federal Reserve will publish aggregate estimates, and
individual survey data will remain strictly confidential.

FIS-Worldpay mega merger: pros and cons
Merchant acquiring is shaping up as a battle of the titans
with this week's news that Fidelity Information Services
is merging with Worldpay Inc. The combination is valued
at $43 billion in stock and cash to Worldpay shareholders,
which works out to a 14 percent premium over Worldpay's
share price, said Thomas McCrohan, managing director
of financial technology and payments at the research and
analytics firm Mizuho Americas.
Halt those ILC charters, community bankers urge
News of the FIS-Worldpay combination comes on the heels
A legal loophole allows certain financial institutions and of Fiserv's acquisition of leading acquirer First Data Corp. It
their parent companies to skirt regulatory oversight, also comes less than two years after Vantiv paid $10.6 billion
endangering both consumers and the economy, according for Worldpay Group plc and rebranded the combined entity
to the Independent Community Bankers of America. And as Worldpay Inc.
on March 11, 2019, the organization issued a white paper
setting forth why that loophole should be closed. Worldpay first to enable Amazon Pay

The paper, Industrial Loan Companies: Closing the Loophole to On the heels of news about Worldpay's pending merger
Avert Consumer and Systemic Harm, asks the Federal Deposit with FIS comes word that Worldpay has become the first
Insurance Corp. to impose an immediate moratorium on acquirer to support Amazon Pay for its merchants. Now
approving deposit insurance for these companies and urges U.S. merchants can add Amazon Pay as an accepted
Congress to close the ILC loophole permanently, the ICBA payment option for online customers, using Worldpay as
stated in a press release announcing the paper's publication. both gateway provider and acquirer, the company stated.
ILCs are nontraditional U.S. financial institutions that
provide niche financial services, including accepting Amazon Pay allows consumers to pay for purchases
deposits and making consumer and commercial loans. at participating online businesses using the payment
information they keep on file with Amazon. It also offers
Are we ready for video banking? the convenience of one-click purchasing, which consumers
find appealing.
Financial analysts are debating the sustainability of
interactive video banking as a tool for remote deposit Apple rewrites Pay-book, takes on merchant services
capture (RDC). Some experts call the service a bridge
technology; others say the technology is serving Players in multiple industries were stunned on March 25,
underbanked populations. Both proponents and naysayers 2019, when Apple Inc. unveiled a revamped technology
agree a supportive communications infrastructure and suite to a rapt audience of developers, sales channel part-
strong security posture are critical to success. Gene Pranger ners, employees and fans. A series of presentations illus-
is credited with introducing the Interactive Teller Machine, trated the multiple ways in which Apple is rethinking me-
an early iteration of video banking. He subsequently dia, gaming and, yes, even merchant services.
expanded the platform by launching POPio Mobile Video
Cloud, making the service remotely accessible on mobile Richard Crone, CEO at Crone Consulting LLC, observed
devices. the unveiling and concluded Apple had curated best-in-
class payment products and services while leaving friction
Fed prepares for triennial study, and pain points behind. Apple Pay is leveraging both brand
evaluates ACH road map identity and market share, Crone noted, adding that by in-
troducing Apple Card and Apple Pay Cash, the company
The Federal Reserve Board disclosed March 14, 2019, that is doubling down on its usual strategy for superior value
it will invite select financial institutions and payments chain control.
industry stakeholders to participate in its seventh triennial
Federal Reserve Payments Study. The independent

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