Circle K has chosen Cardtronics to process ATM transactions for Circle K owned and operated ATMs across the Midwest and Great Lakes regions. Cardtronics began developing its own proprietary ATM transaction processing network in 2006. In addition to the Circle K ATMs, Cardtronics currently processes transactions for 14,000 Cardtronics-operated ATMs. All remaining Cardtronics ATMs will transition to Cardtronics’ in-house processing network during 2008. Cardtronics operates over 31,600 ATMs across its portfolio with ATMs in every major U.S. market.
Gemalto has announced its Poland Personalization facility, the “Gemalto
Tczew facility”, has achieved certification from both MasterCard and
VISA payment card organizations. This certification concerns the issuance
of its EMV smart banking cards and allows the company to support bank
customers during the approaching chip-card migration. The “Gemalto
Tczew” expansion into the personalization of banking cards will address
EMV in Poland, is in addition to its existing SIM card personalization
across the country and is among similar Gemalto operations in 40 other
countries. Gemalto provides digital security around the world, had a 2006
annual revenue of EUR1.7 billion, employs nearly 10,000 and will be
issuing the EMV cards in response to the growing Polish market. The
number of credit cards issued in Poland is projected to grow from 4.1
million in 2006 to 11 million in 2010.
CO-based software specialist IP Commerce has released a new version of its “Commerce Toolkit for Applications” for software companies that eliminates the need for .NET software developers to build a new connection to a service provider every time they develop a new payment application. Key features of the enhanced software include single-point certification and access to more than a dozen major bank card processors, several ACH providers and numerous stored value, and electronic check providers. It also offers “PABP” compliance. Additionally, it can open new sales channels through the IP Commerce open network of top-tier payment processors, acquiring banks, retailers, and value-added resellers, software companies making it easier to distribute products to other members of the IP Commerce Network and explore new channel distribution opportunities while increasing their return on investment.
Nokia has launched its NFC mobile pilot project, sponsored by various
China banks, to allow nearly 800 card holders to use the “Nokia 6131i”
mobile phone to conduct NFC retail transactions across Shanghai. China
UnionPay Co, the Shanghai Branch of Industrial and Commercial Bank
of China, the Shanghai Branch of Bank of China, Bank of Communications,
Industrial Bank Co., Ltd. and Shenzhen Development Bank Co are among
the joint bank sponsors that are sponsoring the pilot project, which was
deployed on January 9, 2008.
Discover Financial Services begins trading on the New York Stock Exchange as an independent company. First Data reports that Michael Capellas will become CEO after Kohlberg Kravis Roberts completes its acquisition of the Company. eBay’s PayPal sign deals with Southwest Airlines, Northwest Airlines, UATP, Devix, CardinalCommerce, and Alienware. Verizon Merchant Services, “Payments Powered by Chase Paymentech” is launched, targeting small and medium-sized businesses. VeriFone signs an agreement to be the preferred vendor of integrated payment solutions to the largest licensed leasing association in New York City, the Committee for Taxi Safety with 3,000 member taxis. Dallas-based PAYjr introduces the “PAYjr VISA Buxx Card” for teens, allowing them to upload pictures for the design of their card. DE-based Bancorp signs a deal to acquire SD-based BankFirst’s “Stored Value Solutions” business for $60.6 million. GE Money launches the “Earth Rewards Platinum MasterCard.” Coinstar inks an agreement to acquire GroupEx Financial Corporation in a deal valued at approximately $50 to $60 million. GE Money signs a credit card renewal and expansion agreement with Gap Inc. MasterCard and Major League Baseball launch a Website featuring FOX Sports broadcaster Joe Buck.
Seattle-based Washington Mutual reported that fourth quarter net income for its Card Services unit decreased 35% from the year-ago quarter to $92 million. However, managed card outstandings were $27.2 billion as of December 31st, compared to $23.5 billion one-year ago. Net interest income continued to grow slightly to $694 million with the increase in managed receivable balances, but it was partially offset by a decline in yields that reflected the lower Prime rate and higher proportion of better credit quality, but lower-yielding retail accounts. WaMu also reported that Card Services opened 653,000 new credit card accounts, or 292,000 less than in the third quarter, reflecting the selective reduction in marketing activities as the company places more emphasis on its retail channel. WaMu’s Retail Bank customers accounted for 37% of the quarter’s credit card account production, compared with 32% in the third quarter and 28% a year ago. The issuer is also dealing with worsening credit trends as the 30+ day managed delinquency rate climbed to 6.47% for 4Q/07, compared to 5.73% in the prior quarter and 5.25% one-year ago. Net credit losses of 6.90% during the quarter were up from 3Q/07’s 6.37% and 4Q/06’s 5.84%. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com]).
WaMu Net Income Track Record
4Q/06: $142.0 million
1Q/07: $256.0 million
2Q/07: $141.0 million
3Q/07: $ 66.0 million
4Q/07: $ 92.0 million
Source: CardData (www.carddata.com)
The 2nd annual “Payment China 2008” will be held in mid-April of
this year in Beijing, China. With payment services accounting for over
40% of total bank revenue, IT and diversification is increasing
competition in the market, for which “Payment China 2008” provides
a forum where industry leaders can share ideas and receive guidance.
Representatives from financial institutions around the world are scheduled
to speak, provide guidance and ideas on issues regarding the country-wide
payment, clearing and settlement infrastructures, payment services, the
Asian payment industry, the upcoming Olympics, transfer services and
Network Solutions has hired Roy Dunbar, current President of Global Technology and Operations for MasterCard, as its new CEO. Dunbar joined MasterCard Incorporated in September 2004 and led a significant number of employees driving technology that processed approximately 16 billion transactions, clearing $2 trillion per year and representing 73% of the companyâs annual revenue in 2006. Previously, Dunbar was with Eli Lilly and Company for 14 years, serving as President, Intercontinental Region, and as CIO. Mr. Dunbar currently serves as a director of EDS Corporation Network Solutions provides Web hosting, web design, e-commerce software, search engine marketing, SSL certificates, e-mail services and domain name registration.
TX-based Payment Data System has sold its patents and patent applications related to bill payments made with debit and stored value cards to PCT Software Data. The net proceeds are approximately $750,000. Payment Data Systems is an integrated payment solutions provider to merchants and billers.
GE reported that revenues for its GE Money unit grew 22% in the fourth quarter to $6.6 billion. Profits grew by 7% to $957 million, compared to one-year ago, but down from the prior quarter’s year-on-year growth rate of 13%. In December GE indicated it was looking to sell or form a partnership for some of its GE Money services including its U.S. private-label credit-card business. Overall, GE is reviewing between $30 billion and $50 billion in financial assets to sell or share. The Company cites a slowing U.S. consumer and a challenging housing market as reasons to reevaluate its financial services business. GE Money’s credit card business contributes about 16% of its $4 billion+ annual net income. During the quarter, GE Money and the National Tour Association established a five-year extension of the GE Money Travel Finance Program available through NTA’s more than 600 tour operators globally; established a relationship with FL-based decoupled ACH debit card provider National Payment Card to link National Payment Card’s ACH-based alternate payment system with the GE Motor Club; extended its consumer financing agreement with FL-based City Furniture; renewed its consumer financing agreement with Thomasville Furniture; and signed a multi-year agreement with Wood-Mizer for revolving and installment financing. For complete details on GE’s fourth quarter performance, visit CardData ([www.carddata.com]). (CF Library 10/24/06; 10/25/06; 12/4/06; 12/13/06; 12/15/06)
GE MONEY TRACK RECORD
4Q/06: $898 million $5375 million
1Q/07: $851 million $5807 million
2Q/07: $952 million $6145 million
3Q/07: $942 million $6207 million
4Q/07: $957 million $6578 million
Source: CardData (www.carddata.com)
MagTek Inc has introduced its new “MagneSafe” Secure Magnetic Stripe Readers (MSR’s) for payment card reading. With this new solution, retailers can encrypt card data at POS terminals locations, thus meeting PCI-DSS recommendations for user protection. The Association for Retail Technology Standards’ UnifiedPOS 1.12 open standard platform provides the POS software and support for this new category of card readers, “Secure MSR’s”, which are required of the new “MagneSafe” solution. MagTek provides electronic transaction technology at POS terminals for thousands of companies worldwide with sales offices and independent distributors in over 40 countries.
For implementation of a joint NFC Mobile payment solution pilot, Turkcell &
Garanti have partnered with E-Kart Smart Card Solutions. E-Kart, a Giesecke
& Devrient partner, will help the companies launch the NFC trial to
acceptance among existing customers, given its track record of
know-how. Moreover, this Turkcell/Garanti pilot is part of GSM Association’s
“Pay-Buy-Mobile” initiative and will provide 100 of its employees and
customers with an NFC-enabled mobile phone, which are contactless-chip
compatible. The solution will also be implementing MasterCard’s “PayPass”
credit card application to meet higher security requirements, such as credit
card requirements. Turkcell GSM operator has 34.8 million customers,
565 operators in 196 countries and had a 3Q07 net revenue of US$4,521
million. E-Kart provides secure digital solutions, including payment
solutions, and has issued 100 million smart cards since 2002 with its
partner, Giesecke & Devrient (G&D), which provides smart card solutions
in a range of industries, employs nearly 8,300 and has an annual revenue of
nearly EUR 1.3 billion.