The Green Sheet Online Edition
July 24, 2017 • Issue 17:07:02
Editor's Note: Following are excerpts from news stories recently posted under Breaking Industry News on our home page. For the full stories, see Breaking Industry News on our home page, www.greensheet.com.
Cybercriminals launch fake Android, iOS updates
Android Marcher and other malware schemes that appear to be software updates are designed to steal financial information and online banking credentials, security experts warned. Some analysts believe Android devices are more vulnerable to these attacks than other device types, due to their open architecture.
"In a recent wave, we are seeing the malware payloads disguised as Adobe Flash player," wrote Zscaler ThreatLabZ in a June 22, 2017, blog post. "Upon opening the dropper URL, the user will be prompted by a message saying the device's Flash Player is out of date, and the malware "Adobe_Flash_2016.apk" will be dropped on the user's device."
Nick Bilogorskiy, Senior Director of Threat Operations at Cyphort, said masquerading as a legitimate software update is a classic malware technique. He has seen similar attacks against iOS devices, including a Mac Trojan attack in February 2017 and the "Koobface" worm in 2010.
Vantiv to acquire Worldpay
Leading U.S. acquirer Vantiv Inc. is merging with Worldpay Group, the largest payment processing company in the United Kingdom, in a deal valued at nearly $10 billion. "The potential merger creates a scale world class payments group in a dynamic market, with deep payments capabilities, product and vertical expertise and strong distribution channels to serve merchants around the world in the global ecommerce market, and in-store and online in the UK and US markets," the two companies said in a joint statement.
The deal is set to be completed by Aug. 1, 2017, pending shareholder and regulatory approvals. The merged company will retain both companies' chief executive officers. Vantiv CEO Charles Drucker and Worldpay CEO Philip Jansen will be co-CEOs; Drucker will also be Executive Chairman.
The proposed deal with Worldpay marks Vantiv's second major acquisition in less than a year. Late in 2016 the company acquired Moneris USA for $425 million.
ScanSource gaining POS Portal
ScanSource Inc. entered a definitive agreement to purchase POS Portal Inc. The all-cash transaction includes an initial purchase price of approximately $144.9 million, plus an earn-out payment up to $13.2 million to be made on Nov. 30, 2017. The combined entity is expected to create the industry's largest deployment channel for POS devices and services sold exclusively through reseller channels.
ScanSource specializes in POS and barcode reader, security and communications products, as well as cloud and telecom services for mid-market and enterprise merchants. POS Portal offers POS equipment, key injection and on-demand, cloud-based solutions for small and midsize businesses (SMBs).
Paul Constantine, Co-President of Worldwide Barcode, Networking and Security and President of ScanSource POS and Barcode, U.S., stated, "We typically like to find the number one player, and POS Portal obviously fit that profile."
Fed details consumer, business noncash payments
Consumers relish electronic payments, and since the turn of the century, they have shifted a significant share of check writing to electronic alternatives such as credit, debit and prepaid cards and the automated clearing house (ACH). Businesses are weaning off of checks, too, but at a slower pace, and ramping up ACH payments. These are two high-level trends revealed in a new report analyzing the Federal Reserve Payments Study 2016.
The Fed takes a read on noncash payment usage every three years. A report released by the Fed on June 30, 2017, is the first in an expected series drawing on data collected last year from bank and nonbank payment services providers. By number, noncash payments nearly doubled, from 72.4 billion in 2000 to 144.1 billion in 2015.
AI sizzles, wearables cool in mPOS surveys
Artificial intelligence (AI) and voice-activation scored highest in the 2017 State of Mobile Whitepaper, published July 5, 2017, by Open Mobile Media. Josh Gordon, Head of Strategy at Open Mobile Media, said AI, natural language processing and voice-activation outperformed wearable technologies.
"With high numbers of respondents bullish about its prospects and the number of projects being deployed increasing over the next year, it looks like AI will finally make the move from concept to reality," Gordon wrote.
Mobile World Daily reported that 48.2 percent of visitors and exhibitors at the 2017 Mobile World Congress saw the Internet of Things as the best business opportunity for mobile operators in 2017.
Prime Day a blockbuster for Amazon
Amazon.com Inc. anticipated its third annual Prime Day, which took place July 11, 2017, would be the highest-grossing day in U.S. retail history. Greg Greeley, Vice President at Amazon Prime, said revenues from Prime Day 2016 were 60 percent higher than the previous year.
Tom Caporaso, Chief Executive Officer at Clarus Commerce LLC, said, "By rewarding Prime customers ‒ both old and new ‒ with exclusive perks and deals, Prime Day serves as a retention and acquisition event for Amazon, and reinvesting in their customer base reinforces and increases that loyalty."
Mike Ackerman, President of DigiPay Solutions Inc., added, "Amazon's July sales event is about more than generating revenue in an otherwise slow shopping month. Their larger goal is to encourage shoppers to sign up for a Prime subscription, which offers free two-day shipping and other perks for members. This membership locks customers in, encourages them to be loyal and spend more money with Amazon."
NAB completes TMS acquisition
North American Bancard Holdings LLC completed acquisition of Total Merchant Services, making it the seventh largest North American payment processor in terms of merchant locations, with annual processing volume of nearly $50 billion. The combined entities plan to expand product offerings and pursue high-growth channels.
According to NAB Chief Executive Officer Marc Gardner, the acquisition signifies an important step in driving strategic priorities forward for NAB. "During this transformational time in the payments industry, NAB is solidifying its commitment to helping businesses prosper by delivering innovative payment solutions and outstanding customer service," he said."
Through this acquisition, TMS gains NAB's processing capabilities, merchant and sales partner portals, onboarding tools and operational resources. NAB realizes an additional $12 billion in credit and debit card transaction processing through TMS's established base of merchants.
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