U.S. Wireless Data and Paymentech have signed a three-year agreement under which Paymentech or its affiliates will purchase wireless-based transaction processing products and services from USWD.
Vancouver-based Fincentric Corporation announced that Rainier Pacific Bank has launched its “i-Wealthview Wealth Management” system. The bank will be implementing Fincentric’s full suite of core banking and wealth management products to accommodate its converged offering of banking, insurance, and investment services. Modules of “i-Wealthview” to be implemented by Rainier Pacific in early 2003 include “i-Wealthview Banking,” i-Wealthview Data Aggregation,” and i-Wealthview Personal Portal,” which will provide Rainier Pacific customers a single-point-of access to their entire financial services portfolio. Based in Tacoma, WA, Rainier Pacific Bank serves over 43,000 customers in the Pacific Northwest and manages US $490 million in assets.
MasterCard continues to lead in growth rates for U.S. payment card volume. During the second quarter MasterCard’s gross dollar volume increased 16.9% compared to 2Q/01, while VISA was 11.2%, American Express down slightly, and Discover flat. Across the industry, total card volume is growing at an 11.9% annual rate at mid-year. Purchase volume is up 10.4% while cash volume soared by 30.2%, according to CardData ([www.carddata.com]).
Second Quarter 2002
U.S. Quarterly Charge Volume by Brand
(credit + off-line debit)
VISA $188.9b (+7.6%)
MasterCard $110.5b (+15.7%)
TOTAL $299.4b (+10.4%)
VISA $59.5b (+24.5%)
MasterCard $40.2b (+39.6%)
TOTAL $99.7b (+30.2%)
VISA $248.4b (+11.2%)
MasterCard $150.7b (+16.9%)
AmEx $58.7b (-0.2%)
Discover $23.5b (NC)
TOTAL: $481.3b (+11.9%)
Source: CardData (www.carddata.com)
Performance among securitized credit card receivables provide more evidence that charge-offs are declining. Last week, CardData reported a decline in charge-offs for four consecutive months for managed credit card receivables, which include securitized and non-securitized credit card loans. According to Standard & Poor’s “Credit Card Quality Index,” bank credit card charge-off rates decreased by about 10 basis points in July, while delinquency rates stayed flat. Much of the loss improvement may be due to seasonality, as losses tend to decline in the summer months. S&P says 60% of the credit card trusts it tracks reported decreases in charge-offs. For the major trusts, a significant increase was seen only in Fleet and First USA. Losses for Fleet increased to 6.8% from 5.8%, and for First USA, losses jumped 200 bps to 6.1%. Conversely, a significant decline was seen in Providian Master Trust. Losses in this case dropped to 7.8% from 9.0%. S&P noted that the payment rate improved last month as well. July’s 16.1% payment rate was a 90 bps improvement from June’s figure. CardData ([www.carddata.com]) reported last week July charge-offs of 6.39% compared to 6.44% in June.
CARD BOND PERFORMANCE
Performance month Jul 00 Jul 01 Jul 02
Outstandings (bil. $) 323.3 363.2 384.9
Yield (%) 19.6 19.9 18.8
Charge-offs (%) 5.2 6.6 6.8
Delinquencies (%) 4.2 5.0 5.1
Payment rate (%) 16.1 16.3 16.1
Source: Standard & Poor’s Ratings Services
EFG Eurobank Ergasias confirmed it is now in production with Fundtech’s “PAYplus” solution. The solution will enable Eurobank to consolidate payment systems, enhance payment automation, and increase payment volumes while reducing costs. The solution will serve as Eurobank’s central payment processing utility for both domestic and international payments. PAYplus connects Eurobank’s back office systems, various payment initiating departments, and over 400 of its branches to Greece’s national payment systems, DIAS and Hermes, as well as to the SWIFT, EBA, ERP and TARGET international payment mechanisms.
Certegy has hired Robert Bream, formerly with United Airlines Employee’s Credit Union, as SVP/GM – Card Services North America, and has also promoted Vince Pavese to SVP/GM – International Card Services. Certegy provides credit and debit processing, check risk management and check cashing services, and merchant processing to over 6,000 financial institutions, 117,000 retailers and 100 million consumers worldwide.
First National Bank of Omaha is utilizing Fair, Isaac’s newest “SBSS 5.0” commercial card risk models embedded within the “LiquidCredit” service to manage its commercial card originations. First National, one of the nation’s top commercial card issuers, will use Fair, Isaac’s browser-based credit risk decisioning solution to process applications and offer credit and purchasing power to small business customers.
FL-based iBill and Yaga have teamed to provide Web merchants with access to payment services including profitability reports, conversion statistics, and popular download information. Merchants using iBill’s services receive an outsourced solution in which iBill handles all payment processing, risk management, affiliate management and payment-related customer service. In addition, iBill’s payment options allow merchants to complete credit card, online checking, and telephone billing transactions.
VISA Canada is sponsoring the “Vancouver International Film Festival” for the fifth year. As part of the 16-day event, VISA unveiled the “VISA Screening Room Pass” this week. For $68, passes will be exchanged for ten tickets to any screening at the screening room, excluding galas. “VISA Gold” and “VISA Platinum” cardholders will also be able to purchase special packages including a “VISA Gold Pass” and three exclusive gala packages. The “VISA Screening Room” will be held at the historic 1,000-seat Vogue Theatre located on Granville Street in Vancouver.
China UnionPay has awarded Hypercom a multi-million dollar contract to provide electronic payment networking equipment for China’s largest unified domestic payments network. By the year 2005, Hypercom’s system will allow more than 400 million bank cardholders in 100 cities to use their cards at any payment terminal in China. By the end of this year, Hypercom’s network system will enable cross-city and cross-bank
transactions in 40 major cities. Under the terms of the agreement, Hypercom will initially provide Network Access Controllers and network management systems for 100 of China’s largest markets to build up
the payment network, including Beijing, Shanghai, Guangzhou, Hangzhou and Shenzhen. The Hypercom network equipment will be used to transmit millions of data packets between China UnionPay’s host
computer, banks, and card payment terminals.
Visible Results USA said Wednesday that NJ-based Swanson True Value Hardware Supply’s rewards loyalty program, launched in late July, is delivering an average spend per transaction for consumer members, 25% higher than non-members. Program participants earn points for shopping in any of Swansonâs five business units general hardware, communications, equipment rental, equipment repair and industrial supplies.
China UnionPay has awarded Hypercom a multi-million dollar contract to provide electronic payment networking equipment for China’s largest unified domestic payments network. By the year 2005, Hypercom’s system will allow more than 400 million bank cardholders in 100 cities to use their cards at any payment terminal in China. By the end of this year, Hypercom’s network system will enable cross-city and cross-bank transactions in 40 major cities. According to The RAM Report ([www.ramreport.com]), Hypercom will initially provide Network Access Controllers and network management systems for 100 of China’s largest markets to build up the payment network, including Beijing, Shanghai, Guangzhou, Hangzhou and Shenzhen. The Hypercom network equipment will be used to transmit millions of data packets between China UnionPay’s host computer, banks, and card payment terminals.