ADS Q2/14

Alliance Data Systems private label credit card loans soared double digits in the second quarter. The ADS Epsilon unit was up 8% year-on-year. The ADS LoyaltyOne segment now consists of the AIR MILES Reward Program in Canada, the recently acquired BrandLoyalty, which operates primarily in Europe and a new JV with dotz in Brazil.

ACI Gears Up to Acquire ReD

ACI Worldwide will acquire ReD for an all-cash purchase price of $205 million and expects the transaction to close in the middle of the third quarter, 2014. ReD is a leading ecommerce and fraud prevention company serving the payments industry. The company’s suite of solutions – ReD Shield®, ReD Fraud Xchange, ReD PRISM®, ReD Alerts, ReDi, ReD1 Gateway and LiveProcessor – helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves retailers, issuers, acquirers, processors and switch networks globally. ReD has a compelling SaaS and transaction-based financial model, with over 80 percent recurring revenue.

Standard Chartered Partners ETranzact on mPayments

Standard Chartered announced that it has expanded its African coverage of Straight2Bank Wallet, the Bank’s mobile wallet service platform, by launching mobile payment services in Nigeria and adding mobile collections capabilities in Kenya. The Bank launched mobile payment services in Kenya in September 2013.In Nigeria, the Bank has partnered with eTranzact International Plc. to provide mobile payment services through its Straight2Bank Mobile Wallet. This is in line with the Central Bank of Nigeria’s (CBN’s) Financial Inclusion strategy to the unbanked and semi-banked population.The new mobile payment service enables clients such as development organisations, international organisations, non-bank financial institutions, agricultural companies and fast-moving consumer goods (FMCG) companies to make payments to both banked and unbanked individuals such as aid workers, trainers, policy holders, farmers and other beneficiaries.

ShopKeep Enhances POS Software with Custom Email Receipts

ShopKeep announced Custom Email Receipts , a significant enhancement to its point-of-sale solution that hits the market just one week after a range of other upgrades targeted at bars and restaurants. Customized Email Receipts’ key capabilities include better branding, social media, allows users to collect feedback and use big data to boost profitability, special offers and an entirely ‘owned’ database: Enjoy complete ownership and access to your mailing list at all times.Unlike other point-of-sale providers, all customer information, including email addresses, collected through the ShopKeep POS belongs to the business owner. Other vendors claim that data as their own and sell it.

Acquisition Allows ACI to Bolster Universal Payments Strategy

ACI bolstered its Universal Payments (UP) strategy, delivering an unrivaled merchant retail solution to combat fraud. With its acquisition of Retail Decisions (ReD), announced earlier today, ACI strengthens its leadership position in the fast-growing payments risk management space.Securing payments and protecting both customers and their brand reputations”across all channels”is a daunting and complex task. The sense of urgency in addressing security issues is exacerbated in the U.S. where the rollout of EMV is expected to drive more fraud into the online channel as it has in other markets and regions. CNP (card not present) transactions, which are seen often in ecommerce, are not protected by EMV, and will likely experience an increase in fraud. ReD brings immediate value to ACI’s current fraud portfolio with its consortium models, business intelligence offerings, extensive modeling/analytics capabilities, risk analyst expertise and data center footprint. Conversely, ACI brings to ReD customers a strong set of complementary products, greater reach, and, most importantly, UP technology, which no other payments risk management vendor can offer.

Paytoo Partners Genmega and Payment Alliance on cardless ATM withdrawals

Paytoo is the first Mobile Wallet to offer cardless options to the unbanked population. GENMEGA, PAYMENT ALLIANCE and PAYTOO Mobile Wallet improve customer convenience and provides new services such as money transfer or the ability to give a PIN to family members so they could have cash access in times of need. Once at the ATM, consumers can redeem a one-time pin generated from their PAYTOO® Wallet for a selected amount or they can just do a regular withdrawal by entering their phone number and security code. This technology provides an extra level of security to each account and account holder, as mobile phone verification is needed to make a transaction and the potential threat of card skimming is no longer an issue.

Big 4 Q2/14 Outstandings

Among the Big 4 Visa and MasterCard issuers for the second quarter, Chase posted the strongest gain of 1.4% Y/Y and Capital One came in second place with a 1.0% Y/Y gain. Bank of America and Citibank posted Y/Y declines of 1.7% and 2.9%, respectively. The reason for the sluggish growth is simply more Americans see bank credit cards as bank payments cards. This trend is also confirmed by a recent ABA study which found the share of cardholders who are transactor increased from 28.6% to 29.0% this year, the highest share on record.