On Track Innovations contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications posted its 1H/11 results, reflecting a total revenue of $26.7 million, a 4% decrease from the year ago figure of $27.8 million. With these results much better than expected, OTI’s Board of Directors has authorized to resume the…
Cardtronics USA forged agreements to acquire Access to Money, stipulating it will acquire all of the outstanding shares of Access to Money for a cash payment of $0.285 per share and retire all of Access to Money’s outstanding indebtedness. The total cost to be paid at closing will be approximately $21.2 million. The companies expect an early fourth quarter completion date for the transaction. Access to Money provides ATM services to merchants and financial institutions, currently operating approximately 10,350 ATMs in the United States. This expands Cardtronics’ portfolio of merchant relationships to include Kangaroo Express convenience stores and coffee and doughnuts. Access to Money operates approximately 1,400 ATMs throughout 11 Southeastern states and at nearly 500 of the QSR franchisor’s U.S. locations, with the opportunity to expand further into its extensive network of franchisees. Additionally, Access to Money brings to the proposed merger a growing ATM services business focused on community banks and credit unions.
The national credit card delinquency rate was down for the sixth consecutive quarter, dropping to 0.6% at the end of the second quarter in 2011 to the lowest mark in 17 years. The 2Q/11 data shows credit card delinquency rates improving by more than at any other time since the recovery began in 2009, both on a quarter-over-quarter basis (-18.9%) and on a year-over-year basis (-34.8%). The analysis found that consumers made an estimated $72 billion more in payments on their credit cards than purchases between the first quarters of 2009 and 2010, in contrast to five years prior when consumers made an estimated $2.1 billion more in purchases than payments for a nearly $75 billion turnaround in consumer payment dynamics from 2004 to 2009. TransUnion forecasts that credit card borrower delinquency rates will continue to drift downward for the remainder of 2011 as the economy continues its slow recovery and financial institutions maintain a conservative approach to underwriting, based on economic assumptions such as gross state product, consumer sentiment, disposable income, and interest rates.
Western Union global payment service is nationally expanding its enhanced walk-in bill payments service as a result of a successful regional test, extending to consumers a network of 10,000+ billers along with walk-in access to a network of Western Union Agent locations. The enhanced walk-in service gives consumers a valuable money management tool and control over their payments with a transaction process that is convenient, fast and easy to use. The service also delivers marketplace benefit to participating retailers, such as Kmart and Rite Aid, by giving consumers one more reason to come through the door and adding yet another valuable element to their one-stop shop experience.
Retail Decisions (ReD) payment fraud prevention and payment processing has completed PCI compliance under the new PCI-DSS 2.0 standard. Validation of compliance is completed annually by an external Qualified Security Assessor (QSA) for organisations handling large volumes of transactions. All assessments must be under version 2.0 of the standard from 1st January 2012, so ReD has announced its upgrade to the new version 6 months earlier than is required.
Payfone mobile payment processing service and Fortumo mobile payments partnered to power the direct billing option for its in-app purchasing SDK. With this, Fortumo’s clients will be able to provide consumers with the ability to make safe and secure mobile payments in real-time from any device, such as PC, smartphone, tablet or Wi-Fi. Payfone’s Mobile Commerce Service is directly integrated into the mobile operator’s network, which provides the ability to intelligently identify a consumer’s profile in the system and offers true payment authorization and authentication.
Consumers, on average, spent one-third more when making a cashless purchase than a cash purchase, which accounted for approximately 26% of all sales at these vending machines. These findings, according to USA Technologies, are based on a July 2011 survey of over 10,000 traditional vending machines utilizing its ePort cashless payment system. They also conclude consumers spent 33% more, or $0.37 more per transaction, when they used a card versus cash on a machine equipped with an ePort, increasing the average transaction from $1.13 to $1.50 and cashless usage was approximately 26% of total sales on machines equipped with an ePort”up 73% from 15% usage in a similar study conducted just three years ago. Additionally, customers on the ePort Connect Service has risen from approximately 1,000 at June 30, 2010 to approximately 2,000 at June 30, 2011, or 100%, and connections on the service have risen from approximately 82,000 to approximately 119,000, or a 45% increase over the past year.
Evolution1 electronic payment, on-premise and cloud computing healthcare solution appointed Robert J. Sheehy to its board of directors. Bringing with him extensive experience and expertise, Sheehy served with UnitedHealth Group for more than 20 years, from 1986 to 2008, becoming CEO of UnitedHealthcare in 2000. Sheehy held various multi-state and single-state responsibilities in the Midwest and led all of United’s acquisitions that were health plan focused during this period of the company’s growth. In 1998, Sheehy was named president and chief operating officer of UnitedHealthcare, and after serving as CEO for seven years, he became senior vice president of UnitedHealth Group in 2007.
Monster Offers mobile banking solutions and Daily Deal aggregator teamed to sponsor the “Pitch That App!!!” promotion, hosted by Iconosys. The winner will receive a $500 pre-paid ZalaPay card for demonstrating the best mobile application idea that integrates mobile payments and mobile banking solutions. The “Pitch That App!!!” event is scheduled for Aug. 17, 2011 at Dave and Busters in Irvine, Calif. at 6 p.m. and will provide entrepreneurs and other mobile application developers a platform for finding partners to assist in the financing, development and creative process involved in building what could be the next block-buster app. This coincides with Monster Offers’ plans to release a full suite of mobile banking solutions with its “EZ-Pay Mobile Cashier,” Zala pre-paid Visa debit card, P2P mobile money sharing, deal wallet, redemption and merchant loyalty programs.
The worldwide figure of eight billion cards in circulation has been passed, with a fall in the number of cards in North America and more than 10% growth in the prepaid and debit card sectors. The new RBR research shows that there is still plenty to play for, with 20% of cards worldwide belonging to domestic bank card or private label schemes. The global market is projected to expand from 8.0 billion in 2010 to 10.1 billion by 2015, as a slowdown in card issuance in the mature North American and western European regions is more than offset by rapid growth elsewhere. Representing 3% of the global total, prepaid and debit card sectors each grew by more than 10% in 2010, while the credit card sector decreased by 6%. Even though credit card numbers are likely to rise over the next five years, the share of payment cards is forecast to fall by one percentage point to 27% by 2015.
Cartera Commerce card-linked marketing solutions and Barclaycard US payments business of Barclays in the United States forged a strategic partnership to reward more than three million Barclaycard customers for their shopping purchases. Barclaycard is launching “Barclaycard RewardsBoost,” a new shopping platform for select co-branded card programs including Barnes & Noble, Carnival Cruise Lines, L.L.Bean, NFL and Travelocity — leveraging Cartera’s award-winning loyalty shopping platform and large multi-channel merchant network. The new program will allow these cardholders to earn discounts, rewards, miles and cash back for purchases at participating in-store, local and online retailers.
Nautilus Hyosung ATM manufacturer has agreed to plead guilty and pay a $200,000 criminal fine for obstruction of justice in connection with a premerger filing and investigation by the Antitrust Division. Accordingly, the parent company of Nautilus Hyosung Holdings submitted false documents to the Department of Justice and the Federal Trade Commission (FTC) in conjunction with mandatory premerger filings made under the Hart-Scott-Rodino Antitrust Improvement Act. After receiving the premerger filings, the Antitrust Division opened a civil merger investigation of the proposed acquisition. The altered documents directed other corporate employees to alter existing corporate documents with the intent to impair their integrity and availability for use in an official proceeding. The department said that, among other things, the alterations misrepresented and minimized the competitive impact of the proposed acquisition on the market for ATMs in the United States.