Payment Solutions News | Commercial Payment Trends

Commercial Payments News Update


EMV®

Visa® reported the following statistics[1] on the continued growth of EMV in the U.S. for November 2016:

  • 1.75 million merchants accept chip cards (+154% y/y)
  • $43.8 billion in Visa chip volume (+262% y/y), and chip-ready merchants now represent 46% of Visa’s in-store payment volume
  • 806 million Visa chip transactions (+359% y/y)
  • 400 million Visa chip cards (+105%)

This topic was covered in the Winter 2014 issue, which summarized enhancements to PNC’s corporate card portfolio, including the incorporation of EMV functionality, well in advance.


ACH

There were 3.8 million same-day ACH transactions (with $5.0 billion in volume) in October 2016, the first full month in operation following phase I implementation towards the end of September. B2B payments accounted for 36% of same-day ACH transactions (and 56% of volume).[2]

This topic was covered in the Fall 2016 issue, which discussed the launch of same-day ACH in September 2016.


Fraud

The Nilson Report reported that global card fraud is expected to peak at $32.8 billion in 2019 (up from $21.8 billion in 2015). Based on cents per $100 of volume, losses are expect to peak at 7.3 cents per $100 in 2018 (from 7.0 cents in 2015).

U.S. fraud losses accounted for 11.76 cents per $100 in volume in 2015, more than double the loss rate outside the U.S. (5.55 cents per $100).[3]

Visa reported that counterfeit fraud fell 52% y/y for merchants who accept chip cards.[4]

This topic was covered in the Fall 2015 issue, which discussed commercial payments fraud, including products and strategies to reduce exposure to payments fraud.


Accounts Payable and Payable Automation

A survey by TechValidate Market Research found that many standard accounts payable (AP) processes remain manual, including invoice collection (60%) and supplier communications (61%).[5]

This topic was covered in the Fall 2014 issue, which highlighted the benefits of invoice automation, as well as provided practical steps to work towards payables automation.


Electronic Payments

The Capgemini 2016 World Payments Report found that global digital payments transactions rose 10% to 426 billion transactions in 2015.[6]

eMarketer projects that U.S. proximity mobile payments volume will rise from $27.7 billion in 2015 to $314.1 billion in 2020.[7]

This topic was covered in the Spring 2015 issue, which discussed the electronification of payments, new payment technologies, and the typical adoption path for these new payment methods.


Blockchain-based Payments

Visa invested in Chain, Inc. in order to launch Visa B2B Connect, a blockchain-based network for cross-border business-to-business  payments.[8]

This topic was covered in the Fall 2016 issue, which analyzed the emergence of distributed ledgers and blockchain-based payments, and summarized PNC’s activities around this technology.

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Important Legal Disclosures & Information

1. “The year of chip: U.S. shows strong growth in 2016,” Visa news release, January 31, 2017

2. “Same Day ACH Generated More Than 13 Million Transactions, Totaling Nearly $17 Billion,” NACHA News Release, January 24, 2017

3. The Nilson Report, issue 1096, October 2016

4. Visa Chip Card Update: December 2016

5. “Finance and Accounting Professional Survey Identifies Waste and Risk with the Manual State of Today’s Accounts Payable Operation,” PR Newswire, October 17, 2016

6. CapGemini 2016 World Payments Report

7. “Newer Smartphone Models Help Drive Mobile Payments Usage,” eMarketer, November 22, 2016

8. “Visa Taps Blockchain for Cross-Border Payment Plan,” The Wall Street Journal, October 21, 2016

This Payment Solutions News was prepared for general information purposes and is not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction, and does not purport to be comprehensive. Under no circumstances should any information contained in this newsletter be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy. Any reliance upon any such information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Neither PNC Bank nor any other subsidiary of The PNC Financial Services Group, Inc.  (“PNC”) will be responsible for any consequences of reliance upon any opinion or statement contained here, or any omission.

Bank deposit, treasury management and lending products and services are provided by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC.

Lending and leasing products and services, including card services and merchant services, as well as certain other banking products and services, require credit approval.

PNC is a registered mark of The PNC Financial Services Group, Inc. All other trademarks are the property of their respective owners.

EMV is a registered trademark in the U.S. and other countries, and is an unregistered trademark in other countries, owned by EMVCo.

Visa is a registered trademark of Visa International Service Association in the United States and used under license.