PassMarket, first launched in 2012, is a behind-the-scenes platform that allows businesses to interact with customers using passes stored in digital wallet applications like Apple’s PassBook. Formerly focused on loyalty and rewards programs, the addition of “empty hand” payments was announced on Monday at the National Retail Federation’s annual trade show in New York. When the customer makes a purchase at that retailer with a credit card, the payment information can be stored in a secure vault at the payment processor and “tokenized” ” that is, assigned a unique but meaningless code ” and the tokens added to the user’s pass profile. Subsequent charges by that user can be made by simply passing the tokens to the processor, rather than reacquiring the payment information with another swipe.
NearPay is a solution that can be integrated into Mobile Wallet applications for mobile payments, but it’s not a wallet application in itself. By using several features that are available on NearLogin, NearPay is a service that allows payment applications to perform transactions on mobile devices both online and offline, with all the safety features that are necessary in financial applications. The NearPay system includes a server and security structure, and by using the NearBytes technology, can be used on various POS devices, and in physical and online stores. With NearPay, transactions can be completed using smartphones, tablets and computers, while online or offline.
i2c, Inc. announced that it is partnering with CardFlex Japan, a wholly owned subsidiary of Tay Two Corporation and licensee of CardFlex, Inc., and Shinsei Bank to launch a new prepaid card in Japan. The card will bear the brand of Tay Two Corporation, a leading Japanese retailer of games, videos, music and books with more than 100 retail locations across the country. i2c will serve as prepaid processor, CardFlex Japan as program manager and Shinsei Bank, working closely with its holding company APLUS Co., Ltd., as BIN sponsor for the program. The Tay Two Visa prepaid card will provide Japanese consumers with a new payment option that combines the flexibility of cash with the convenience of card payments. Consumers will be able to load money onto the cards online and via mobile app and make payments online or in person anywhere Visa debit cards are accepted.
The number of MasterCard accounts in Europe topped the U.S. for the first time. As a September 30, 2013 there were 293 million MasterCard accounts in Europe, compared to 289 million in the U.S. market. For the year ago quarter, the U.S. market led the European market by 19 million MasterCard accounts. MasterCard’s European account-base is growing at annual rate of 18.1%, compared to 8.2% according to CardData. For the third quarter MasterCard reported gross dollar volume in Europe is growing 16.6% per annum, compared to 8.7% in the U.S.
Severe winter weather did not dampen December retail sales as shoppers took advantage of heavy promotions and last-minute deals. According to the National Retail Federation, December retail sales, which excludes automobiles, gas stations and restaurants, increased 0.4 percent seasonally adjusted month-to-month, and 4.6 percent unadjusted year-over-year. Total holiday retail sales, which includes November and December sales, increased 3.8 percent to $601.8 billion, which was in line with NRF’s projected forecast of 3.9 percent and $602.1 billion. In addition, non-store holiday sales, which is an indicator of online and e-commerce sales, grew 9.3 percent to $95.7 billion. December retail sales, released today by the U.S. Census Bureau, which include categories such as automobiles, gasoline stations, and restaurants, increased 0.2 percent seasonally adjusted month-to-month, and 4.1 percent adjusted year-over-year.
JPMorgan Chase & Co reported net income for the 4th Quarter 2013 at $5.3 billion. This was a slight increase from 4th Q 2012 which was reported at $5.2 billion. Revenue for the quarter was down 1% to $24 billion compared to the same period in 2012. Legal costs associated with a number of issues was noted as a reason for the drop in profits. Adjusted for the significant items disclosed in our earnings press releases this quarter and in the fourth quarter of 2012, EPS would have been $1.40 this year compared with $1.35 in the prior year and ROTCE would have been 15% this year, flat compared with the prior year.
VeriFone Systems, Inc. announced that The Jones Group Inc. has selected VeriFone solutions to enable mobile payment acceptance and enhance customer experience for its internationally recognized brands, including Jones New York and Nine West. VeriFone will upgrade the brands’ payment environments with its PAYware Mobile e210 mobile point-of-sale (mPOS) solution and the MX 915, an NFC-enabled, multi-media payment terminal.
U.S. credit card margins and yields have largely been holding steady over the past year. However, Citibank reported that its net credit margin for credit cards rose 89 basis points in the third quarter to 11.16%. Net credit margin is total revenues, net of interest expense, less net credit losses and policy benefits and claims. Chase reports its total net revenue for credit cards declined slightly from 12.46% one-year ago to 12.22% in the third quarter of this year. Total net revenue is a percentage of average loans.
Visa Inc. launched “Everywhere you want to be,” a multi-stakeholder communications platform that reflects our ambition to deliver universal access to Visa’s secure, reliable and convenient digital payments. For decades, Visa, the global digital payments network, has been driven by a set of ideals anchored in our vision of being the “best way to pay and be paid.” This has expanded in recent years to include “for everyone, everywhere.” By evolving our famous tagline – “It’s everywhere you want to be” – the company is recommitting to these ideals and vision for consumers, merchants, governments, financial institutions and employees with a unified message tailored to each audience.
Online privacy company Abine is providing Masked Credit Cards for free to exposed shoppers for their next online or offline purchases. Masked Credit Cards enable consumers to shop without ever revealing their actual credit card number. The result? 100% protection from data breaches. Abine’s Masked Credit Cards protect your existing credit cards by providing an alternative to giving out your real credit card for purchases. Masked Credit Cards have completely unique 16-digit card numbers, expiration dates, and security codes, so the places you shop never get your real credit card info. These cards are one-time use only, can be created with any existing debit or credit card, and expire right after you use them.
OceanFirst Bank has chosen ATM software and hardware solutions from NCR Corporation in order to deliver an omnichannel banking experience. OceanFirst Bank’s online and mobile banking experience is provided by Digital Insight, the leading provider of digital banking services, which NCR acquired in January 2014. OceanFirst Bank will install more than 20 NCR SelfServ ATMs with scalable deposit module (SDM). SDM allows bank customers to deposit cash and checks in a mixed bunch and as a single transaction to make deposits significantly twice as fast as typical ATM deposits. In addition, the bank will install NCR marketing software, including APTRA Connections, Promote and Exchange, to help personalize the ATM customer experience and deliver targeted promotions over the network.
Ecobank Transnational Inc. and MasterCard today announced a multi-country licensing agreement which will provide access to MasterCard’s electronic payments solutions for Ecobank’s customers in a further 23 African countries. The agreement is the culmination of a Memorandum of Understanding (“MOU”) originally signed in November 2011, and importantly, enables electronic payments access to more than 60% of Africa’s population. Ecobank subsidiaries in 28 countries across Sub-Saharan Africa are now licensed to issue and accept electronic payments through MasterCard prepaid, debit and credit cards. With this partnership, Ecobank’s customers in this fast-growing region will have access to MasterCard’s credit, debit and prepaid card products, whilst MasterCard will leverage Ecobank’s unrivalled pan-African footprint to provide its electronic payments solutions to a wider customer base.