Loyalty One CN-Driven Redemptions Kill Alliance Data Systems Q4 Profits

Dallas-based Alliance Data Systems (ADS) reported fourth quarter (4Q/16) year-on-year (YOY) profits sunk due to new legislation in Ontario prohibiting the time-based expiration of reward points associated with all loyalty programs. The cancellation of its 5-year expiration policy necessitated a change in ADS breakage estimate, according to CardData. ADS reported gross revenue rose 4.5% YOY…

Biometric Authentication is Unstoppable in Replacing Passwords

A new research report says biometrics will take over passwords the next ten years. The Mercator Advisory Group titled Biometrics: A Market Forecast for Consumer Adoption provides predictions out to 2025 for the penetration of the U.S. market by mobile devices that implement the hardware required to support biometrics, the market availability of persistent biometrics…

China and Jack Ma Take Over U.S.-Based MoneyGram & its P2P Services

MoneyGram, a provider of innovative money transfer services, and Ant Financial Services Group, one of the leading digital financial services providers and parent company of Alipay, a global mobile payment platform, inked a deal to merge. The transaction will connect MoneyGram’s money transfer network of 2.4 billion bank and mobile accounts and 350,000 physical locations…

While Losing Marketshare BofA Holds Stable Q4 Credit Card Performance

The nation’s third largest Visa and MasterCard issuer continued to struggle in the fourth quarter (4Q/16) with sluggish outstandings (OUT) and purchase dollar volume (PDV) growth, but other metrics, remain fairly stable, according to CardData. Pre-tax net income edged down 1.8% YOY to $1290 million in 4Q/16, compared to $1218 million in the prior quarter…

Cost-Optimization Levers Helps Buyers of Network Payment Services

The global network payment services market is expected to witness momentous growth at a CAGR of 7.7% over the next five years due to the widespread adoption of digital payment solutions by not just businesses and consumers, but also the government, banks, and financial institutions. The research report titled ‘Global Network Payment Services Market: Procurement Intelligence…

Synchrony Inks Belk Credit Cards with Retailer Rewards

Synchrony Financial, and Belk, a private department store company, inked a multi-year renewal of Synchrony Financial’s consumer financing program. Belk operates department stores in 16 Southern states as well as belk.com and offers a wide assortment of national brands and private label fashion apparel, shoes, and accessories. Synchrony Financial has provided a consumer financing program…

Discover Cuts Back on Card Marketing – Q4 Profits Rise 13%

While not exploding, Discover’s (DFS) credit card portfolio continues to stay in positive territory. Year-on-year (YOY) growth in the fourth quarter (4Q/16) profits increased double digits reflecting a decline in marketing expenses for credit card marketing, according to CardData. Discover’s total revenue rose 6.9% YOY to $2358 million for 4Q/16, compared to $2301 million in…

Capital One EOY Outstandings – Solid #2 U.S. Issuer – Q4 Profits Plateau

Among the biggest bank credit card issuers in the U.S., Capital One (COF) continues to lead the way in every metric, except charge-offs. Based on fourth quarter (4Q/16) figures COF surpassed Bank of America (BAC) as the nation’s second largest issuer, by $5 billion, according to CardData. COF posted double digit year-on-year (YOY) gains in…