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© 2016 Visa Inc. All Rights Reserved. 1
The Challenge NewsEdition 4
WEATHER: HIGH: 52° LOW: 28° LATE EDITION
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IN THIS ISSUE1 Impressive Year-on-Year Growth
2 2016 Visa Global Challenge Profit Ladder
4 Year 4 – The Shooting Stars Still Burning Brightly
4 Top of Credit, Debit and Acquiring
5 The Performance So Far . . .
TIMETABLE7 Nov YEAR 5 BEGINS!
View Recorded Webcast: The Changing Payments Landscape
Year 4 Results Available Year 4 Results Webcast & The Challenge News Available
14 Nov Submit Year 5 Decisions Cut-off Time: 15:00 GMT
21 Nov Challenge Winner Announced!
Year 5 Results and Year 4 Webcast & The Challenge News Available
All Change at the Top!As the market matures, and teams become more confident in their decision-making strategies, competition is certainly heating up in Year 4.
SwipeRight moved up three places in Year 4 to top the table with a mighty H$887 million in cumulative profit. Holding position closely behind, and also in the H$800 million + cumulative profit club, are Warsaw Eagles, followed by a new entrant to our Top 10, team Archizoo, who rose 12 places this year.
There is very little between the top ten teams, and they are all eagerly knocking on the door of the top spot with one year left to play. Year 5 promises to be a very tense and exciting round!
[continued on page 2]
Impressive Year-on-Year GrowthYear 4 revealed some fantastic year-on-year profit growth for several teams, (and, not just those at the top of the ladder) with the average profit growth in Year 4 for the top 200 teams an impressive H$252,000.
Most notable among this year’s profit performers are Archizoo, Teletubbies and SwipeRight, each adding more than half a million dollars in profit to the P&L in Year 4.
Rank +/- Team Year 3 Year 4 YOY Increase
3 12 Archizoo 288,909,885 844,993,077 556,083,191
13 49 Teletubbies 177,832,121 702,739,151 524,907,030
1 3 SwipeRight 377,330,324 887,116,162 509,785,838
15 31 Reading Card Sharks 199,559,613 677,441,787 477,882,174
9 2 Serendipity 294,778,867 770,739,644 475,960,777
2 0 Warsaw Eagles 390,106,758 856,048,412 465,941,654
33 83 Team Asgard 101,955,676 566,436,570 464,480,894
5 0 MoscowHeat 363,592,828 805,012,146 441,419,318
11 3 The Newbie 290,747,912 730,973,982 440,226,070
12 0 V-Day 291,826,386 729,488,360 437,661,974
© 2016 Visa Inc. All Rights Reserved. 2
THE CHALLENGE NEWS | EDITION 4
[continued from page 1]
1 3 SwipeRight 887,116,162
2 0 Warsaw Eagles 856,048,412
3 12 Archizoo 844,993,077
4 -3 Lazer 805,604,783
5 0 MoscowHeat 805,012,146
6 -3 The Untouchables 804,260,436
7 -1 peekay 779,447,762
8 0 Houseofcards 771,152,210
9 2 Serendipity 770,739,644
10 -3 FP&Yay!!! 768,710,420
11 3 The Newbie 730,973,982
12 0 V-Day 729,488,360
13 49 Teletubbies 702,739,151
14 10 GoGetters 677,694,732
15 31 Reading Card Sharks 677,441,787
16 6 Hidden Riders 655,040,360
17 16 TaekwonV 648,374,616
18 0 Mavericks 647,452,342
19 -2 DoubleSQ5 630,627,652
20 -10 #ApprenticeNoMore 630,501,061
21 -12 Everywhere 618,846,983
22 7 TheKnuckleBusters 600,539,042
23 3 GCCSAnalysts 596,667,492
24 32 Loyalty Royalty 595,255,612
25 15 Chilean Condors 593,224,782
26 43 The Walking Debt 589,855,449
27 5 THE cAe TEAM 589,281,120
28 13 Team Aura 585,607,820
29 -1 TeeParty 580,413,337
30 9 Power Rangers 576,731,214
31 -18 Cheeseburgers 572,329,739
32 22 The Recursive Backronyms 568,364,200
33 83 Team Asgard 566,436,570
34 23 VChallengers 564,404,894
35 -15 CYBSSupport+1 561,538,095
36 -2 The Dynamic Duos 559,423,408
37 -21 CHAMPS.UA 551,261,787
38 -19 Pokemon Go 550,305,321
39 -12 Youngblood 549,689,889
40 3 PayDay 549,494,264
41 -20 Team V 545,721,064
42 -19 The Optimizers 538,604,349
43 -12 vPropel 524,654,197
44 5 VVLAP 519,473,898
45 -20 Invalid Team Name 518,008,651
46 12 ChiPiChu 516,592,251
47 -3 RevChamp 516,155,166
48 -11 Visa Egypt Team 516,002,392
49 -14 Los Kausas 499,085,389
50 -5 FC Visa 498,390,849
51 2 6Ps - Global NP 497,673,173
52 -22 La Dolce Visa 494,889,796
53 7 MarketMovers 491,776,824
54 5 Nerds Power 489,680,301
55 -19 The Illuminati 483,456,351
56 -6 Deep Threat 483,252,402
57 -9 Risk Moguls 479,995,964
58 40 Over the Limit 474,070,445
59 42 PayPals 471,738,021
60 5 Millenial Falcons 463,915,350
61 15 Visa Marketing Maestros (VMM) 463,498,015
62 18 Innovation Guys 462,457,706
63 -16 Athena 462,339,228
64 -26 CyberPay 459,715,031
65 45 Application 457,609,655
66 0 Six Marketeers 455,159,108
67 -25 Payment Mavericks 455,118,696
68 20 YallaPay 445,821,716
69 -2 Data Monsters 445,599,268
70 -15 Vampires 443,099,758
71 -3 Challenge Accepted 440,722,546
72 -21 V-Dabs 432,855,911
73 22 NPC Stars 432,187,549
74 -11 Beginner’s Luck 425,087,690
75 24 Views From The 6 423,463,047
76 -15 Team Penny 422,085,578
77 4 Juan on One 421,584,427
78 -7 payHack 414,208,583
79 25 superstars 411,380,570
80 14 Vintelligence 390,931,563
81 30 Riskybusiness_corp 384,437,104
82 -12 305 Squad 381,167,264
83 26 DPS Pirates 376,275,123
84 -12 Tokyo2023 371,824,212
85 15 ServiceFirst 367,934,709
86 -22 Decode 367,005,070
87 28 LAC Showtime 366,553,588
88 2 VUXTeam1 364,667,113
89 -2 Sprinters 363,174,544
90 28 V-PAY 362,839,089
91 46 Charlottesgotalot 360,359,942
92 -17 Japan Mario Brothers & Sisters 358,812,666
93 4 Avengers 354,118,235
94 36 The Risk Takers 353,274,139
95 28 prestigeww 351,591,799
96 -7 Austin 349,978,517
97 -19 The Benjamins 348,111,111
98 -13 PRRANK 345,302,580
99 49 Analysis Bank 344,508,138
100 -27 BAC AEs 344,098,465
101 4 CTS Bank 343,583,511
102 -9 Cashless Guru 341,910,196
103 -26 Chip Monks 339,193,353
104 -18 Last Team Standing 338,450,217
105 1 Bazookas 329,307,284
106 6 NextGenPayments 325,863,216
107 61 The Golden-Pont Neuf 324,434,303
108 -56 FosterCitySlickers 322,794,392
109 104 Extensive Enterprises 318,863,361
110 -18 PD Team 317,834,618
111 -29 Big Bank Theory 317,267,258
112 7 Marketbusters 316,238,304
113 29 Mile High Money 315,664,553
114 -31 Hold that W 315,477,384
115 -36 Constellation 314,865,460
116 -14 Consumer Credit B 314,665,472
117 -10 Team X 313,518,387
118 3 innovar 306,881,956
119 -5 Winners 306,513,282
120 -24 BLANDS 303,521,874
121 -30 The No-Brainers 299,677,106
122 -5 BANKONUS 299,414,577
123 13 Visa Hawks 298,684,944
Visa Global Challenge 2016 Profit LadderOur Year 4 Ladder shows the positions of all the teams ranked according to their combined credit and debit profit after Year 4, as well as the change in ranking compared to Year 3’s profit.
Cumulative Profit (Credit, Debit and Acquiring Combined) RANK +/- TEAM PROFIT RANK +/- TEAM PROFIT RANK +/- TEAM PROFIT
© 2016 Visa Inc. All Rights Reserved. 3
THE CHALLENGE NEWS | EDITION 4
124 67 MoneyMovers 297,454,349
125 -12 Number Crushers 295,728,659
126 -4 I&SPay 294,035,913
127 18 Visa CEE 286,050,646
128 13 VPS Gold 285,075,105
129 -26 Visa Warriors 280,540,182
130 9 Zelle-ots 279,997,701
131 -47 PIKA+ 275,838,175
132 31 Prestige Worldwide 275,348,424
133 -6 #LACForce 274,008,613
134 -8 Club Visa 271,248,773
135 -27 acumen 266,732,581
136 24 Millennial Mojo 266,177,451
137 -8 LondonBees 264,658,175
138 24 Team GSD 263,535,178
139 -19 Love Game of Cards 261,141,229
140 13 Card Shark 260,562,128
141 18 The Top of Wallets 256,026,864
142 -10 Visa Six (V-6) 255,979,729
143 46 OBC - Orbis Bonding Currency 254,691,644
144 73 PaySmart 254,151,766
145 -14 VROne 253,009,027
146 -21 VOCC Stars 249,317,624
147 -7 SMART 248,353,587
148 -14 Convergent 240,735,022
149 -21 Emerging market 233,887,857
150 0 Digital Natives 225,219,321
151 13 Voyagers 220,979,138
152 -78 VisaDigiPay 220,542,951
153 13 Black Magic 218,134,130
154 17 Team_Analytic_Riders 217,069,404
155 18 The Game Changers 216,556,846
156 68 Specialized Sales Team 1 211,788,444
157 -33 Winnovation 211,321,151
158 51 teamfortipay 208,951,253
159 13 Catstronauts 208,057,628
160 5 Visanity 206,111,082
161 -23 6 Keys Bank 200,401,459
162 5 Lpride 199,546,980
163 11 KookyDough 195,879,550
164 5 HeartofMachine 195,013,322
165 -21 Ace Mental Hamsters 189,478,126
166 -5 magichip 188,702,033
167 41 Creative Croods 184,170,276
168 43 Corporate Services FC 174,932,940
169 -14 BDzinhos 173,763,741
170 -35 Aspire 171,136,090
171 -28 Globetrotters 165,386,400
172 -15 #MyEverywhereBank 164,416,554
173 -15 Pulsar 163,887,633
174 -28 Self-filfilling Profits 156,675,207
175 0 BizViz 155,591,745
176 -29 CCM special unit 155,379,537
177 51 Challenged Visa Team 154,823,127
178 -29 Bengaluru-Wolves 152,398,966
179 -27 General Funds 152,237,366
180 39 So Simple! 151,733,906
181 1 Visa Inc. 150,724,031
182 1 Treasure Island 147,510,440
183 -29 Miracle Workers 145,082,667
184 -33 Invincible 142,392,367
185 -8 5280 Mile High Solutions 133,409,630
186 50 Card-Asians 132,632,609
187 -2 consumercredit 132,579,466
188 -8 TeamMzansi 127,167,664
189 -19 New Kids on the Block 126,515,370
190 8 STARK INDUSTRIES 120,641,788
191 23 Royal Bank of VPS 117,578,228
192 30 DeepDivers 113,969,127
193 -37 Team Marios 109,817,623
194 -6 US Credit Reserve 108,303,071
195 -8 StrategyBank 105,569,759
196 -18 VUXTeam2 103,011,923
197 23 Quantessential 102,682,165
198 -6 Dream Team 101,405,634
199 41 Credit and Forget it 100,655,365
200 12 The Dream Team 99,179,106
201 34 Autobots 96,858,060
202 -1 Risk Takers 80,643,757
203 12 Risky Business 74,890,001
204 -18 mSPOCK 71,424,613
205 -29 BINthere, RIDthat 70,878,110
206 -16 VPS Bank 68,898,787
207 3 The Goal Getters 65,642,674
208 18 The FinTechstic Sixers 63,582,549
209 -30 Contactless 53,186,716
210 27 Genesis 51,687,991
211 -30 Visa Spanish Office 50,153,131
212 29 digtransf 49,239,745
213 -29 Team Panda 47,652,778
214 20 Digital Hurricanes 35,995,713
215 1 Energizer 21,341,144
216 -83 E-pay 16,971,512
217 -23 Tech Pirates 7,594,494
218 -25 UnderDogs 7,094,080
219 -20 back_to_the_future 6,249,229
220 -24 LAC Millenials 5,937,739
221 -26 WeKnowNothing 5,717,385
222 -25 Vikings 5,705,112
223 -2 unknown 5,254,949
224 -22 Hawk Eye 4,774,799
225 -25 Firebrand 3,458,453
226 -23 Master Minds 2,780,724
227 -22 paymentdisruptors 2,739,776
228 -24 Voccessor 2,644,032
229 -23 London to Lebanon 1,629,692
230 -12 MAP-Arch -4,271,653
231 2 Challengers -22,148,738
232 -5 VEApprentices -25,773,006
233 -4 Payment Ninjas -30,065,958
234 -4 Stepping Towards Pinnacle -35,807,858
235 9 PisForPayments -41,371,378
236 -13 Visa Prague Heroes -58,238,183
237 10 Winning -65,750,507
238 -31 Bel_Rocks -66,255,682
239 0 Six Cents -74,131,805
240 -15 Eco Thinkers -78,596,528
241 -9 Rockstar -79,179,184
242 7 Visa Sydney -81,070,174
243 -5 greatwallBuilders -112,687,159
244 -2 Half and Half -125,702,621
245 8 Christina Wang -132,582,802
246 -15 Analytics Avengers -138,027,305
247 4 GEARS -141,369,999
248 0 The Academy -142,755,700
249 1 CarryNoCash -206,171,855
250 4 Bangoon -215,750,777
251 -6 VMarket -264,901,177
252 -9 StormTrooper -285,715,281
253 -1 Switcheroo -301,929,657
254 -8 BangaloreMinnows -314,195,542
255 3 Bunch of Misfits -343,623,873
256 -1 Visa Rails -346,144,587
257 -1 #innovate -377,124,606
258 2 Corporate Services Global -473,308,343
259 0 Sukiyaki -617,566,016
260 1 VisaBrazil360 -729,102,206
261 -4 beautifulmind -769,861,471
262 0 Alpha -946,838,486
263 1 Taiwan No.1 -1,122,065,306
264 -1 Mastermind -1,502,993,994
RANK +/- TEAM PROFIT RANK +/- TEAM PROFIT RANK +/- TEAM PROFIT
© 2016 Visa Inc. All Rights Reserved. 4
THE CHALLENGE NEWS | EDITION 4
STAFF
Year 4 – The Shooting Stars Still Burning BrightlyThere are a lot of new names in our Shooting Stars Top 10 this year. At the very top, with a amazing 104-place jump is Extensive Enterprises, leaping to 109th place overall and turning a previous three-year loss into a handsome Year 4 profit of H$318 million.
Indeed, many of our biggest movers have come from the lower ranks of the table this year, with a number making profit for the first time. Do they have what it takes to play the long game and take the top spot next year? Not long to go until we find out!
Cumulative Profit LadderRank +/- Team Name Profit (H$)109 104 Extensive Enterprises 318,863,361 33 83 Team Asgard 566,436,570
144 73 PaySmart 254,151,766 156 68 Specialized Sales Team 1 211,788,444 124 67 MoneyMovers 297,454,349 107 61 The Golden-Pont Neuf 324,434,303 158 51 teamfortipay 208,951,253 177 51 Challenged Visa Team 154,823,127 186 50 Card-Asians 132,632,609 13 49 Teletubbies 702,739,151
Top 5 Acquiring (by profit)
Rank Team Year 4 (H$)1 Corporate Services Global 236,053,8712 Data Monsters 204,044,4133 LAC Showtime 196,670,9184 Juan on One 170,099,8545 Rockstar 160,340,951
Top 5 Credit Card Issuers by Profit
Rank Team Year 4 (H$)1 SwipeRight 755,024,207 2 Warsaw Eagles 711,967,384 3 MoscowHeat 685,308,497 4 The Untouchables 677,511,723 5 FP&Yay!!! 677,481,526
Top 5 Debit Card Issuers by Profit
Rank Team Year 4 (H$)1 Taiwan No.1 160,709,742 2 Visa Marketing Maestros(VMM) 157,713,522 3 Pokemon Go 146,351,091 4 Six Marketeers 137,703,080 5 Archizoo 130,033,375
Top of Credit, Debit and AcquiringOur leaders in Year 4 for the three different product types are as follows:
© 2016 Visa Inc. All Rights Reserved. 5
THE CHALLENGE NEWS | EDITION 4
STAFF
The Performance So Far . . .
Average Cumulative Credit Profit: In Year 4, average cumulative profit for credit reached H$160.7 million, helped by the number of teams who have managed to pull themselves out of the red and into the black.
Average Cumulative Debit Profit: Average profit on debit was three times higher than that of the previous year, with a Year 4 cumulative profit of H$49.2 million. Debit seems to be gaining in popularity and profitability!
Visa Credit Card PerformanceOverall performance in credit was good in Year 4.
Average Revolve Rate: There was a small increase in average revolve rates in Year 4, but this still provides opportunity for improvement. Perhaps it’s time for some teams to reconsider their Risk Adjusted Margin targets.
© 2016 Visa Inc. All Rights Reserved. 6
THE CHALLENGE NEWS | EDITION 4
STAFF
Average Bad Rate: In Year 4, we see the average bad rate falling to 9.3%, down from the previous rate of 9.8%, and continuing to head in the right direction. Many teams do seem to be coming to grips with the scorecard and the use of risk-based pricing strategies, as well as optimizing lower-risk acquisition channels.
Approval Rates by Channel: In Year 4, approvals reduced across all channels, with branch continuing to be the most approved acquisition channel.
POS Authentication Method: Year 4 indicators on POS authentication show that the most secure method of POS authentication has increased again to 93%, with these issuers upgrading and adding contactless to their existing Chip & PIN proposition.
The Performance So Far [continued]
© 2016 Visa Inc. All Rights Reserved. 7
THE CHALLENGE NEWS | EDITION 4
STAFF
CNP Authentication Method: Similar trends were also witnessed on CNP authentication, with VBV authentication continuing to grow. Seventy-eight percent of teams now use VBV as their CNP authentication method. This is great news for fraud indicators for these issuers!
Visa Debit Card Performance
Debit Channel Popularity: The popularity of debit sales via the branch channels seems to have stablized at 90%, but issuers continue their interest in pushing sales through the more cost-effective Internet channel, which has now increased to 88%.
Average POS Transactions per Card: Average POS transactions per card in Year 4 did increase to 117, delivering an impressive ratio of 117:10 for domestic:international transactions.
The Performance So Far [continued]
© 2016 Visa Inc. All Rights Reserved. 8
THE CHALLENGE NEWS | EDITION 4
STAFF
The Performance So Far [continued]
Cash to POS Mix: There was a significant change in the (already healthy) Cash to POS mix, with 88% of transactions now being at the point of sale.
Merchant Acquiring Indicators
Average Cumulative Profit: There was a significant improvement in profitability on merchant acquiring portfolios in Year 4, as teams came to grips with managing the previously ailing legacy portfolios while managing the new portfolios acquired through the bidding process.
Pricing Format: Acquirers continued to prefer the bundled approach to merchant pricing, although a few did change in favor of Interchange +.
Make sure to tune into the Year 4 Results webcast, now available.