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compliance and regulatory issues. Mike Bologna,
the firm's CEO, hopes California will model the way
for other state governments tasked with designing
responsible regulatory frameworks.
• MassRoots Inc.: This social media platform stated it
has raised over $250,000 across the United States for
various cannabis legalization initiatives.
Vantiv growth plans to
include Moneris USA
V antiv Inc.'s planned acquisition of Moneris
USA for $425 million is the latest conquest for
the Cincinnati-based payments acquirer. The
deal, expected to close in the fourth quarter of payment services for merchants across an array of
2016, will be subject to final approval and anti-trust clear-
ance by the U.S. Department of Justice. Schaumburg, Ill.-
based Moneris USA, a subsidiary of Moneris, a Canadian
company jointly owned by BMO Financial Group and
Royal Bank of Canada, processed nearly $12 billion in pay-
ment transactions in 2015, Moneris reported.
Payments analysts expect an easy transition due
to the companies' aligned interests and compatible
organizational cultures. The chief executives expect the
merger to combine and leverage areas of technical and
marketing expertise. Charles Drucker, President and CEO
at Vantiv, said the Moneris USA acquisition will accelerate
the company's growth in key channels. "We look forward
to serving [Moneris USA] technology and banking sector
partners with our deep payments expertise and strong
customer service," he added. Angela Brown, President and
CEO at Moneris, also expects Moneris USA merchants to
benefit from Vantiv's high level of service, economies of
scale and omnichannel capabilities. "Working together
with Vantiv, Moneris will continue to support our mutual
cross-border customers with a focus on innovation and
service," she said.
Vantiv growth, profitability
Vantiv, one of the largest acquirers in the United States,
has a portfolio of 800,000 merchants and 1,400 financial
institution partnerships. The publicly traded company
reported a 12 percent increase in total revenue ($914
million) for the third quarter of 2016, compared with
the same period in 2015 ($816 million). Company leaders
attributed positive earnings to organic growth. "Our
ability to deliver superior financial results by consistently
winning market share speaks to the strength of our people
and their consistent focus on execution," Drucker said.
Following are additional details from Vantiv's third
quarter 2016 earnings report:
• Merchant services: Net revenue increased 17 per-
cent to $404 million, compared with $345 million in
the same period in the prior year, with a 10 percent
increase in transactions and a 6 percent increase in
net revenue per transaction.
• Financial institution services: Net revenue in-
creased 1 percent to $86.2 million in the third
quarter, compared with $85.6 million in the third
quarter of 2015. The company renewed its contract
with Fifth Third Bank during this period, impact-
ing short-term profits but favorably positioning the
company for long-term growth in the channel.
Moneris contactless, EMV leadership
Moneris, a leading North American payment solutions
provider, provides credit, debit, wireless and online
industries, processing more than 3 billion transactions a
year. The company has more than 350,000 merchants and
is known for its value-added loyalty and gift card services.
Moneris has advanced mobile wallet adoption by deploying
near field communication-enabled POS devices. In May
2016, it disclosed that Apple Pay would be available at
select retailers for Visa Inc., Mastercard, American Express
Co. and Interac Debit cardholders. Rob Cameron, Chief
Product and Marketing Officer at Moneris said all of the
company's solutions support contactless payments, noting
25 percent of transactions originate from mobile devices
or contactless credit cards. "With Apple Pay's increased
options and our leading market share in Canada, we are
ready to educate, enable and support merchants across the
country to accept Apple Pay today," he said.
The company was also a leader in U.S. EMV (Europay,
Mastercard and Visa) migration, partnering with POS
software developer Amber Systems Technologies to be
EMV-certified with all five payment card brands. Amber
Systems' expertise in the restaurant, specialty retail
and grocery segments streamlined EMV acceptance for
numerous hospitality retailers and supported Moneris in
its phased rollout of EMV compliant devices across the
United States, the company reported in February 2016.
In addition, Moneris brought a decade of EMV experience
to bear during the October 2015 liability shift, helping U.S.
merchants upgrade POS systems to EMV-capable solutions.
Merchants appreciated the company's proven track record
in EMV deployments, noted Chris Lee, the company's
President of North American Strategic Partnerships and
Emerging Markets. "We manage every aspect of the
EMV migration and integration process, from design and
testing, to certification and implementation, making the
switch to EMV a seamless transition for merchants," she
said.
Rumors of the merger had been circulating for close to
a year, according to Jay Antenen, Senior Editor at The
Mergermarket Group. When the news became official on
Nov. 10, 2016, he tweeted, "Vantiv finally wins Moneris
USA for $425m. Long sale process had lots of fits and
starts, rumors."
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