U.S. bank credit card networks racked up $2.47 trillion in gross dollar volume (GDV) last year, an 7.7% gain over the prior year. This is the third consecutive annual decline in growth rates for U.S. credit card GDV, after gaining nearly 15% in 2011 and slightly more than 11% in 2012. Over the past five years, Visa, MasterCard, and Discover have lost market share based on credit card GDV, During this period American Express claimed a sizable gain, rising from a 19.0% market share in 2009 to 25.8% market share for 2013, largely fueled by charge cards.
Visa today announced it is offering clients new options to securely deploy mobile payment programs, including for the first time an option to host Visa payWave-enabled accounts in a secure, virtual cloud. The move expands Visa’s support for mobile payments globally and will give financial institutions greater choice in offering consumers secure ways to pay with smartphones. Visa’s support for cloud-based payments follows the introduction of a new feature in the Android mobile operating system called Host Card Emulation (HCE); HCE allows any NFC application on an Android device to emulate a smart card, letting users wave-to-pay with their smartphones, while permitting financial institutions to host payment accounts in a secure, virtual cloud.
Capital One Financial Corporation and clearXchange announced that Capital One, N. A. has joined the clearXchange network as an owner, becoming the fourth owner alongside Bank of America, JPMorgan Chase, and Wells Fargo and fifth bank customer of the clearXchange network. clearXchange is the first network in the U.S. created by and for financial institutions that lets customers send person-to-person payments easily and securely with only an email address or phone number. As a member of the network, Capital One will expand its capabilities to provide customers the ability to pay anyone with a U.S. bank account without requiring sensitive account information.
MasterCard today announced it will publish a specification that leverages Host Card Emulation (HCE) for secure near field communication (NFC) payment transactions. The approach will enable consumers to easily use their MasterCard-branded cards on their NFC-enabled phones to make contactless payments. Today, there are two million contactless-enabled merchant locations in 63 countries around the world.
AnywhereCommerce added three recognized payments executives to bolster its international business activities. William Nichols, Nigel Bidmead, and Jimmy Quake have joined the company to drive sales initiatives and develop business across its growing global footprint. AnywhereCommerce has an established market presence in the North America, LAC, EMEA and APAC with its award-winning aCommerce series of mobile point of sale (mPOS) solutions. Driving international sales and marketing with a current focus on Latin American and the Caribbean is William Nichols, who was named executive vice president of international markets. Prior to joining AnywhereCommerce, Nichols held executive positions at First Data Corporation and VeriFone, where he was responsible for channel development and expansion, sales execution, product strategy development, and consulting services. Nigel Bidmead, who was named executive vice president, is responsible for business development and sales activities in the EMEA region. Bidmead comes to the company after several senior executive roles with industry giants First Data, VeriFone and ACI where he led large teams of personnel and drove important deals in the areas of electronic payments, cards, authorization and settlement systems, as well as software and telecommunications.Rounding out the expanded international management team is Jimmy Quake who has some 20 years of experience in the payments sector, and will serve as AnywhereCommerce’s senior vice president for the Asia-Pacific region, and will lead business development and market expansion efforts in that locale. Before joining AnywhereCommerce, Quake served as vice president for ViVoTech, and held a number of executive positions for VeriFone in Australia and Asia.
Montise posted H1 FY 2014 revenue £46.5m, up 67% on H1 FY 2013. Gross margin increased to 73% from 72% in H1 FY 2013, with user generated margin particularly strong, owing to a number of product licence deals following recent customer wins and renewals. Adjusted loss after tax (2)of £16.4m (H1 FY 2013 loss: £21.0m) and adjusted loss per share of 1.0p (H1 FY 2013 loss: 1.8p). Statutory loss after tax of £22.0m (H1 FY 2013 loss: £30.3m) with loss per share of 1.4p (H1 FY 2013 loss: 2.6p).
Amazon this morning announced that customers in the US, UK and Germany can now buy, spend and earn Amazon Coins on their Android phones and tablets. Previously available for use exclusively on Kindle Fire tablets, Amazon Coins can now be used to buy the latest apps, like Ridiculous Fishing, purchase extra lives within Candy Crush, or unlock Red’s amazing Super Roaster in Angry Birds GO directly from their Android device. Customers simply need to download the latest version of the Amazon Appstore and their existing Coins balances automatically appear. Existing Android customers can upgrade to the latest version of the Amazon Appstore on their mobile device by visiting www.amazon.com/updateappstore and new customers can download the Amazon Appstore on their mobile device by visiting www.amazon.com/getappstore.
Mark Adams has joined Meritus Payment Solutions as Senior Vice President and Chief Technology Officer. Mr. Adams brings extensive expertise in product development, application engineering, and the building of highly scalable cloud based infrastructures. In his role at Meritus, he will oversee product engineering, application development, IT infrastructure, and information security. A proven leader with 19 years of technology experience, Mr. Adams comes to Meritus from HireRight where he served as CIO and VP of Engineering. Before joining HireRight, Mr. Adams led the development of financial and contact center applications for Auto Club of Southern California. His prior experience also includes serving as Vice President of Information Technology for Lending Tree Loans where he focused on the delivery of highly scalable mortgage processing infrastructure and applications.
Datacard Group secure ID and card personalization solutions announced it will be providing financial institutions, retailers and service bureaus with guidance and best practices to help simplify the transition to the industry-wide EMV smart card standards, including the 2015 liability shift in the U.S. The new EMV Professional Service offerings – provided by Datacard Group – give organizations a wide-range of educational material, technology tools and resources designed to help them make calculated decisions on what they need for EMV smart card programs.
Assessment & Planning Services – including existing infrastructure analysis, card type selection and management, authentication and authorization requirements, customer service and expert-by-your side consulting to help ease the transition to EMV smart card programs. Implementation Services – this includes project planning, scripting services, data preparation, chip personalization, key management, and central or instant issuance.
The credit card delinquency rate (the ratio of borrowers 90 days or more delinquent on their general purpose credit cards) dropped on a yearly basis from 1.61% in Q4 2012 to 1.48% in Q4 2013. In a sign that consumers continue to deleverage, average credit card debt per borrower also declined from $5,376 in Q4 2012 to $5,325 in Q4 2013.
Mercury Payment service appointed Andrew Patterson Chief Technology Officer. Here he will be responsible for software engineering, technology infrastructure, business intelligence, quality assurance, and architecture for the organization. With over a decade of technology and management experience, Patterson brings a wealth of knowledge and expertise to his role as CTO at Mercury. Patterson most recently served as the vice president of payments software and emerging products for Moneris Solutions where he led a number of key technology initiatives, including the design and development of many of their products and processing systems. He was also the director of software development at the same company. He holds a B.S. from Dalhousie University and an MBA from Queen’s University.
MasterCard enhanced cardholders options to redeem, exchange and trade their rewards points. Delivered through a relationship between MasterCard and Points International, the new options are based on the popularity of travel and experiences and expected to drive engagement and value to rewards programs offered by issuing banks participating in the MasterCard Rewards Platform. Following the initial integration, it is anticipated that program functionality will be available later this year.