Dublin-based CardBASE Technologies and Taiwan-based CyberSoft have integrated card systems to support the issuance of EMV cards. The combining of CyberSoft’s “CardPac” credit card system and CardBASE’s “MASCOT” smart card management system, provides card issuing banks with an out-of-the-box solution that protects their current investment in card infrastructure while also complying with EMV. “MASCOT” is an integrated solution aimed at the bulk issuance and lifecycle management of smart cards in a single or multi application environment. The integration was completed in six weeks using the “MASCOT Integration Toolkit.
First Data this morning reported that third quarter profits increased 5% to $360 million, as revenue grew 10% to $2.14 billion. However, Wall Street punished the firm as its stock dropped more than 5% in early trading for producing a lackluster quarter. The Payment Services unit produced third quarter revenue of $935 million, up 14% from the same period last year. Operating profits for Payment Services grew 14% to $324 million. Western Union, which comprises more than 80% of Payment Services’ revenue, reported that its Mexico money transfer revenue grew 16% on 20% transaction growth. Merchant Services’ revenue grew 12% for 3Q/03 to $785 million, and operating profits grew 10% to $215 million. Total transactions processed in the third quarter grew 26%. Card Issuing Services posted third quarter revenue of $492 million, up 1%. Operating profits of $73 million declined as a result of decreasing sub-prime business, pricing adjustments and the deconversion of Citi’s bankcard portfolio. During the quarter, the company converted more than 15 million accounts, bringing the total for the year to 24 million. The pipeline of accounts to be converted is approximately 75 million; 11 million of which are scheduled to be converted by year-end. The accounts on file at September 30th stood at 332 million. Emerging Payments, First Data’s eONE Global business, reported $39 million in revenue for the quarter. For complete details on First Data’s 3Q/03 performance visit CardData ([www.carddata.com]).
Bank of America reported this morning that its card income increased 16% to $794 million. The issuer says consumer credit and debit card purchase volumes increased 14% and 23%, respectively, since 3Q/02. Managed credit card profits were $319 million for the third quarter, a 28% gain over 3Q/02. Total revenue for its managed credit card portfolio was $1.1 billion, a 26% gain over last year. At the end of the third quarter, BofA had $33.6 billion in managed credit card outstandings, a 20% increase the year-ago quarter. Third quarter charge-offs were 5.33%, compared to 5.74% in the prior quarter, and 5.13% one year ago. Managed 30+ day delinquency was 3.84%, compared to 3.99% in the second quarter, and 3.63% for 3Q/02. Managed 90+ day delinquency was 1.76%, compared to 1.80% in the second quarter, and 1.66% for 3Q/02. BofA also reported that its 2.8 million active bill pay users paid $12.7 billion of bills during the quarter. For complete details on Bank of America’s 3Q/03 performance visit CardData ([www.carddata.com]).
Comdata’s Stored Value Systems and Salt Lake City-based Gift Card Solutions have integrated the electronic cash card program for NJ-based New World Restaurant Group with Radiant Systems Inc.’s POS system. Stored Value Systems is one of the world’s leading providers of electronic gift certificate and card-based transaction programs. Comdata Corp. is redefining the movement of money and information through technology for businesses, their customers and employees. Radiant’s back-office and point-of-sale technology enables businesses to deliver exceptional customer service while improving profitability.
Experian launched “ContactBuilder,” “BizLinks,” and “Public Record Extract” services this week. The “ContactBuilder” system provides closed-loop handling of information captured across online and offline channels and leverages Experian’s data management, offline fulfillment capabilities and e-mail marketing technology to help marketers acquire new customers, build stronger customer relationships, and improve the speed of communications. “BizLinks” is a new tool that helps financial institutions, credit card grantors, commercial lessors, and others identify where companies assign purchasing responsibilities in order to focus marketing activities where there is a greater potential to contact more commercial buyers per project. “Public Record Extract” provides access to four types of public record files in batch mode, including UCC data, corporate record data, fictitious business name, and derogatory filings.
Coinstar has launched the “TOP-UP” kiosk with partner PRE Solutions that offers self-service bill payment, a prepaid cash card, cell phone mobile content, online computer game time, prepaid wireless, prepaid long distance and prepaid Internet. The TOP-UP kiosks are the first offering for convenience store outlets from Coinstar Inc., the leader in self-service supermarket-based coin counting machines. The company already provides kiosks in more than 10,000 major grocery stores, with a history of 225 million automated point-of-sale transactions in the U.S., Canada and the United Kingdom. Coinstar Inc. owns and operates the only multi-national network of supermarket-based machines that offer coin counting and other electronic services.
The Maryland Bankers Association has endorsed Genpass as a preferred provider of EFT services to its members, including ATM driving, debit processing, debit card programs, as well as other customized ATM and card programs. Genpass currently delivers EFT solutions to over 1,000 financial institutions throughout the United States, and the company continues to earn endorsements from banking associations across the country. Maryland Bank Services, Inc. offers a variety of products and services partnership solutions to MBA member institutions. These partnership programs provide member institutions with an opportunity to increase revenue or reduce costs.
CyberSource has released its new “Recurring Billing Service”. Current recurring billing systems can cause revenue loss when subscriptions needlessly terminate mid-term due to temporary payment failures such as expired credit cards and authorization problems and if left unmanaged, up to 10% of a merchant’s annual subscription base can be affected by this problem. CyberSource Corporation is a leading provider of electronic payment and risk management solutions.
Dallas-based MetroPCS and One Global Finance have introduced the wireless industry’s first fully integrated stored value card. The new “MetroPCS Wired Plastic MasterCard” provides a direct link to each MetroPCS phone. By dialing #222 customers can hear the card’s available balance, pay their MetroPCS bill and add funds to their Metro-Connect account. Customers also receive text messages directly to their MetroPCS phone with daily balance alerts, load confirmation, and other important notifications. The card is re-loadable and no bank account, credit or employment verification is required to qualify for the card. Loading options include Western Union, InstaPay retail locations, and participating MetroPCS dealers, bank wire transfer and USPS money order.
Starbucks, Bank One, and VISA card rolled-out a new card this weekend that combines a re-loadable stored value card with a general purpose credit card. The new “Starbucks Card Duetto VISA” offers cardholders the ability to earn one percent back in “Duetto Dollars” that are automatically loaded on their “Starbucks Card Account” after each billing cycle. “Duetto Dollars can then be used to purchase Starbucks items including beverages, food and store merchandise. Cardholders also receive a one-time pre-load of $10 to their “Starbucks Card Account” after their first “Duetto Card VISA” purchase. Additionally, cardholders earn three percent in “Duetto Dollars” with each automatic reload of the “Starbucks Card Account” using the “VISA Account” of the “Duetto Card.” Starbucks is also offering quarterly opportunities based on usage of the “Starbucks Card Account.” Starbucks will also contribute $5 to the Starbucks Foundation after each cardholder’s first “Duetto Card VISA” purchase. From October 13 through December 31, 2003, Jumpstart will be the recipient of the “Duetto” donation from the Starbucks Foundation.
The National Association of Convenience Stores has teamed with First Data and its PayPoint Electronic Payment Systems subsidiary to launch this week a new program designed to reduce card-processing fees up to 10% for convenience store and petroleum marketers. Retailers participating in the new program should receive reduced fees because of processing efficiencies and the aggregation of their transactions with NACS members and others in the industry. Credit and debit card transactions accounted for 28.2 percent of the convenience store industry’s $290.6 billion in sales in 2002, according to NACS’ 2003 State of the Industry report. The NACS is an international trade association representing 1,900 retail and 1,700 supplier members. First Data serves approximately 3 million merchant locations, 1,400 card issuers and millions of consumers, making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of payment.
Pay By Touch, f/k/a Solidus Networks, announced completion of a $10 million financing round and its new management team last week. The company is gearing-up to bring to market a new patented payment system that allows consumers to pay at the checkout counter without having to present credit cards, debit cards, loyalty cards, paper checks or cash. The business is built from the company’s acquisition in April of Indivos Corp. The company also announced its executive management team, which includes John Rogers, President/Chairman; Brian Miller, EVP Strategic Alliances; Nhan Nguyen, CTO/CIO; Eric Bachman, COO; David Siminoff, CFO; Caroline McNally, Chief Marketing Officer; Steve Zelinger, General Counsel; and, Jon Siegal, VP/Sales, Americas. Bachman was COO of NextBank and McNally was EVP of global brand management for VISA International.