A new report has found that only 33% of consumers 18-34 are using online banking services. Chicago-based Mintel also found that 80% of those 18-24 years old and 83% of those 25-34 years old own a debit cards and that credit card ownership has been dropping in recent years for these age groups. However, contactless credit cards provide a new outlet for attracting new consumers, with over 60% of consumers in this age range showing interest in the newer option. Mintel noted that younger consumers more cautious when it comes to using credit cards. Over 70% of respondents in the 22-24 age range stated that they do not like the idea of being in debt, and that can significantly impact their relationship with credit card companies.
AR-based ANB Financial has selected Dynamic Card Solutions’ “CardWizard” to instantly issue bank cards to customers. DCS’ CardWizard system has enabled ANB to issue cards to customers who come into any location to open new accounts or those needing cards immediately. DCS’ technology enables the bank to also replace cards that have been lost, stolen, compromised or damaged. With instant issuance, which requires that customers present identification to receive a new or replacement card, financial institutions provide an added level of security to protect customers’ personal and financial information. Dynamic Card Solutions is an innovative developer of instant issuance and PIN selection solutions for banks, credit unions and retailers. ANB Financial is a $1.7 billion bank with offices currently serving Arkansas, Wyoming and Utah.
More than four out of ten young consumers between the ages of 18 and 21 who surf the Web now own a credit card, and 65% of this “Gen Z” online group used the Web to apply for a credit card. A new research report also found that Capital One was the most popular credit card among this generation. According to the Forrester Research “Meet Your Next Financial Consumer,” Capital One has a 20%+ share of credit cards held by online youth. BofA, Chase and Citi have about a 13% share of the same group. However, Forrester further found that 21% of “Gen Z” cardholders intend to switch from Chase and American Express cards in the next twelve months. Overall, 32% of online youth applied for a credit card over the Web during the past twelve months.
San Diego-based Kyocera Wireless and VISA International this week are showcasing the marriage of a mobile phone with a VISA payment solution using the VISA mobile platform. At the CTIA Wireless trade show in Orlando, attendees can use a prototype NFC VISA-enabled phone to purchase a beverage from a vending machine, by simply presenting the payment-enabled handset to the vending machine contactless payment spot. Kyocera will also be demonstrating a simulated purchase of movie tickets directly from a movie poster equipped with NFC technology. Eliminating the need for paper movie tickets, the movie poster transmits a code to the phone after wireless payment, which is then read by another NFC terminal at the entrance to the movie theater. Kyocera is this week also showing-off “MobiTV” streaming television over a WiMAX high-speed connection with Runcom; Wi-Fi-powered music downloads; and Voice-over-IP mobile phone calls over dual-mode CDMA/Wi-Fi connections.
A critical tipping point in the emerging mobile banking and payments industry is at hand as several large banks have teamed to use AT&T wireless phones with Firethorn software to create a robust mobile banking marketplace. The news comes on the heels of Bank of America’s roll-out of mobile banking to markets across the country through mid-year. Wachovia, Regions Financial, and SunTrust Banks have selected Firethorn’s mobile banking and payments solution. Marketing strength and advertising power will be added by AT&T. Firethorn is the only mobile banking and payments solution authorized by AT&T. Through the Firethorn solution, consumers can view account balances, transfer funds, receive and pay bills and quickly clear contents if their mobile device is ever lost or stolen. Consumers can perform functions on any supported wireless handset, even when their device is offline. In partnership with Firethorn, financial institutions using CheckFree’s electronic billing and payment solution to receive and pay bills online can offer their consumer’s immediate integrated access to view and pay bills using their mobile devices. Firethorn’s previously announced customers, BancorpSouth and Synovus Financial will also offer mobile banking through Firethorn’s solution.
American Express’ “Membership Rewards” program has added “Flight Finder” and “Room Finder” as online booking tools. The new tools enable members to search award inventory, transfer points directly into a frequent flyer or frequent guest account, and book flights or hotel stays in a single online transaction. Some of the featured partners currently include: InterContinental Hotels, Crowne Plaza, Holiday Inn, Staybridge Suites, Candlewood Suites, and Hotel Indigo, AirTran Airways, Hilton, Conrad Hotels, Doubletree, Embassy Suites, Hampton Inn, and Waldorf Astoria. The Membership Rewards program from American Express has more than 140 redemption partners.
Las Vegas-based Global Cash Access has partnered with Trump Taj Mahal Casino in Atlantic City to serve as the pilot site for GCA’s QuikCash Mobile service. QuikCash Mobile is an easy-to-use, handheld device that serves as a mini-ATM, which enables casinos to offer credit and debit card cash advance capabilities directly to patrons on the floor, at the point of sale. Global Cash Access is a leading provider of cash access products and related services to approximately 960 gaming properties and other clients.
In an effort to recover unlawful bank charges, two former bank employees
have a designed a website that provides consumers with a voice. The
company, Aventure Bank, provides consumers with direct contact to
dispute banks fees that are deemed unfair. If unsuccessful in their own
attempt, the website will attempt recovery on the consumers’ behalf. In
charging only a one time fee, the website does not keep a percentage of
the money recovered. The standard service fee is GBP 24.99.
The U.S. Patent and Trademark Office has granted a patent to CT-based Evolution Benefits for “Methods and Systems for Processing Transactions Involving Accounts for Reimbursing Medical Expenses or Patient Responsible Balances with Multiple Transactions Substantiation Modes” Cardholders can use their “Benny Prepaid Benefits” to debit their FSA or HRA and achieve the highest level of substantiation available. In February, EB was awarded the “Most Innovative Consumer Directed Health Care (CDHC) Product or Solution” in the payment card arena at the CDHC Expo in Las Vegas. Evolution Benefits provides payment services for consumer-directed benefits.
ASK and MasterCard have inked a development agreement to create paper-based contactless payment solutions utilizing “PayPass” for deployment in transit and other payment environments. More than 50 million ASK contactless paper tickets are already being used globally in mass transit automatic fare collection systems. MasterCard is currently participating in a contactless trial in the New York City subway system and on the Ohio Turnpike, while “PayPass” is now accepted in many Philadelphia and NYC taxi cabs and Utah buses. MasterCard is also leading the effort to develop new “PayPass”-enabled devices, such as key fobs, mobile phones, wristwatches and wristbands. There are nearly 13 million MasterCard “PayPass” cards in use at more than 46,000 merchant locations worldwide. ASK provides contactless cards, tickets, RFID tags, e-passport inlays and readers addressing the mass transit, access control, banking, e-identity and supply chain markets.
A new survey has found that 41% of teens consider themselves knowledgeable about how to budget money, 34% know how to pay bills, 26% know how credit card interest and fees work, 24% know whether a check cashing service is good to use and 14% know how income taxes work or what a 401(k) plan. More than half believe that “it is easier to buy things with a credit card than cash” and, given the choice, 29% would actually prefer using a credit card, a 61% increase in this stated preference over last year. The research by Charles Schwab also found that American teens confidently predict a future in which, based on the career that interests them most, they will be earning an average annual salary of $145,500 (boys expect $173,000 vs. girls, $114,200). The reality: Only five percent of the U.S. population currently earns a six-figure income, and the average national wage stands at approximately $40,000.
To protect customers from identification fraud, Akbank of Turkey has
implemented Fair Isaac’s “Falcon ID Solution”, the first European lender
to do so. Using predictive analytics, “Falcon” uses an authentication
process and multiple sources of data for validating identities,
including the use of an ID Clearinghouse which accesses external data to
detect when an identity is compromised. Furthermore, the solution allows
the lender to apply predictive data in order to determine whether an
application for credit is genuine or fraudulent, resulting in faster and
more precise origination decisions.