The PELORUS Group will host “M-Payments & M-Banking: The Rise of Mobile Financial Services” June 27th and 28th at Caesars Atlantic City. Among the issues to be addressed: what is the potential for m-payments and m-banking to erode the traditional payment and credit card systems; when, why and how quickly will m-payments and m-banking catch on in the U.S.; how do these mobile financial services fit in with other mobile commerce offerings;what opportunities and threats do mobile payments and banking create for carriers, retailers, the financial industry, and companies that currently employ traditional payment systems and what are the key regulatory, standards, fraud prevention, and security issues.
ActiveCore has signed a Letter of Intent to integrate “CyBux” and “ePocket”
with ATMs. This will allow customers to move money from accounts to
stored value cards or digital coins and vice versa by using a common ATM.
Thus, digital coins can be disbursed, as cash, through a cash machine.
an integration of online payment systems used by most major banks and
credit unions across Canada. ePocket was originally designed as electronic
cash for secure purchases over the internet. With this new development,
access to these accounts can be executed from any ATM
without the need for a computer, PDA, or a cell phone.
OR-based Corillian reported that revenues for the first quarter were $16.5 million, compared to $14.3 million for the first quarter of 2006. Net loss for the first quarter of 2007 was $1.1 million, compared to net loss of $971,000 for the first quarter of 2006. On February 13th, Corillian entered into a merger agreement pursuant to which CheckFree will acquire all of the outstanding shares of Corillian’s common stock for $5.15 per share in cash. Corillian’s shareholders approved the merger on April 30th. Corillian serves over 35 million online banking end users. For complete details on Corillian’s first quarter performance visit CardData ([www.carddata.com]).
Despite the overall downturn in the sub-prime market, SD-based First Premier Bank continues to churn-out a solid performance. During the first quarter the issuer reported it added more than 100,000 cards to its portfolio. Outstandings rose 10% to $760,897,788, compared to 1Q/06. First quarter volume was up 8% to $319,939,641. First Premier’s account based increased from 4,003,282 in the fourth quarter to 4,142,265 for 1Q/07. According to FitchRatings, charge-offs for sub-prime portfolios decreased to 8.73% in March from 9.53% in February. The monthly payment rate decreased 69 bps to 9.89% from 10.58% in February. However, gross yield for sub-prime portfolios decreased 239 bps to 24.15% in March from 26.54% in February.
FIRST PREMIER ACCOUNT HISTORICAL
Source: CardData (www.carddata.com)
CA-based VideoKall says it has been working in stealth mode for some time with strategic partners on a video payphone-based EFT service called “VideoKall” for personal use and for migrant workers who have no bank accounts. The “VideoKall” service will provide public video payphones in shopping malls in several states where Mexican, Filipino and Indian migrant workers are frequent visitors. The service allows both sender and recipient to see each other on a video payphone before and during the money transfer. Workers in the U.S. will purchase smart cards to the value of the remittance they wish to send abroad, and then SMS text message their relatives abroad to let them know the mall location plus the phone number of the video payphone and the date and time they will call. The incentive for both parties to visit a mall, at a predetermined time to make the transfer.
Ukrop’s Super Markets announced that its “Savings Spot” loyalty card program has expanded to all Ukrop’s Super Markets in Virginia. “Savings Spot”is a 1-to-1 shopper program delivering personalized offers and messages to shoppers at the start of their shopping trips. Shoppers scan their Ukrop’s Valued Customer Card (UVC Card) at the Savings Spot dispenser located near the store entrance and within seconds receive a sheet of up to eight offers and messages selected just for them based on their shopping history. Ukrop’s was the first retailer to pilot this system with its creator, Entry Point Communications (EPC) and joins Price Chopper based in Schenectady, NY in EPC’s growing retail media network of Entry Marketing dispensers. Ukrop’s Super Markets operates 28 retail food stores.
Targeting the fast food and delivery markets, Worldscout Corporation
& BNA have announced a collaboration for developing a GPS, wireless,
credit/debit payment terminal. The GPS feature will enhance security by
allowing the processing corporations to be aware of the device location
at all times. It will also let the company know where delivery drivers are
and verify delivery times. Also offered with the solution is a “Panic
feature for the drivers’ safety in the event of a robbery or disablement.
Worldscout is a developer of global positioning technology. BNA is a
provider of Banksys Point-of-sale terminals.
After three months of declining confidence, the latest measurement has found that consumers are much more positive about current conditions but less optimistic about their future prospects. Also, Americans’ ratings of their current personal finances strengthened in May, with 31% of consumers saying their personal finances are strong, up from 26% in April. In addition, consumers indicated greater comfort with making major purchases. As a result of these mixed attitudes, the “RBC CASH Index” rose to 87.1 for May, slightly above April’s 85.4 level. RBC says consumers remain relatively positive about their current conditions, likely due to the rising stock market and income gains. The “RBC CASH Index” is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The “Index” is composed of four sub-indices: “RBC Current Conditions Index;” “RBC Expectations Index;” “RBC Investment Index;” and “RBC Jobs Index.”
RBC INDEX HISTORICAL
May 06: 67.1
Jun 06: 84.1
Jul 06: 80.1
Aug 06: 74.8
Sep 06: 93.7
Oct 06: 83.1
Nov 06: 92.4
Dec 06: 86.9
Jan 07: 95.3
Feb 07: 103.0
Mar 07: 92.3
Apr 07: 85.4
May 07: 87.1
Source: RBC Financial Group
Aeroplan has reported an increase since last year reflecting growth
in consumer spending and credit and charge card usage translating
into increased volume from the credit and charge card accumulation
partners. Gross billing for 1Q07 was reported at $228.0 million, an
increase of $26.5 million since 1Q06. This increase is primarily
attributable to an increase of 1.9 billion, or 11.5%, Aeroplan Miles
sold as a result of higher sales to accumulation partners. Cost of
rewards amounted to $155.1 million for 1Q07, compared to $124.9
million in 1Q06, an increase of 24.2%. Aeroplan’s members
earn Aeroplan Miles with its network of more than 60 partners and
representing more than 100 brands in the financial, retail and travel
sectors. Miles earned may be redeemed for Aeroplan’s industry-leading
ClassicFlight Rewards, innovative ClassicPlus Flight Rewards and global
Star Alliance Flight Rewards, offering travel to more than 850 destinations
worldwide. In 2006 more than 1.4 million round-trip flight rewards were
issued. Aeroplan’s rewards include more than 400 specialty, merchandise
and experiential rewards, as well as hotel and car rental rewards.
Houston-based Cardtronics has completed a recent amendment to its existing “Credit Agreement” which reduces the current margin paid by the Company on certain types of advances and increases the Company’s annual authorized capital expenditure levels from $50 million to $60 million. Cardtronics is the world’s largest non-bank owner/operator of ATMs with more than 25,000 locations
Canadian Tire Corporation Limited has reported 1Q07 earnings of $64.5
million, an increase of 35.5% since 1Q06. Of the Corporations four
businesses, The Canadian Tire Financial Services, which markets a range
of branded credit cards, had a total managed portfolio at the end of 1Q07
of $3,473.5 million, an increase of 5.4% since 1Q06. The overall adjusted
earnings, before income taxes increased by 15.1% from $42.2 million in
1Q06 to 48.5 million in 1Q07. Reflecting growth of the division, Financial
Services’ total ending credit card loans receivable reached $3.3
8.7% from $3 billion in 1Q06, thanks in large part to the “Gas Advantage
MasterCard” in Ontario. Growth in the credit card loan portfolio was also
due to a 5.6 % increase in the average account balance to $1,829 from
$1,731 in 1Q06. The net write-off rate for the credit card portfolio
improved during the year to 5.82% from 6.19 % in 1Q06. The results
reflect growth in the credit card loan portfolio, lower than planned
and allowance costs, and a reduction in the operating expense ratio,
partially offset by ongoing expenses related to the retail banking
$4.8 million as compared to $0.2 million in the first quarter of 2006.
Services markets a range of Canadian Tire-branded credit cards including
Canadian Tire Options MasterCard, Commercial Link MasterCard and Gas
GCA has initiated a “Bounty Program” for its “Arriva Card,” the first credit card designed specifically for use in casinos. Casinos receive a cash reward for each new Arriva account if the application comes via channels such as casino mailings, newsletters and Web sites. Arriva has already extended over $40 million of credit to responsible gaming patrons. Cardholders use the card to get better terms for in-casino cash advances and to receive points for cash back and other valuable rewards. Approved applicants receive an Arriva card within minutes, with up to $10,000 of credit – at no risk to the casino. More than 75 casino properties now benefit from Arriva Card on Demand. CIT Bank is the issuer of the card, and Arriva Card, Inc. is the administrator and servicer of Arriva Card accounts.