Arroweye Solutions, the only digital On-Demand payment technology firm, has been selected to provide EMV prepaid cards for The Card Collaborative International (TCCI). The flexibility of Arroweye’s Digital On-Demand model allows for better responsiveness to customer needs, and ensures that TCCI can better serve its clients, and slash lead times by putting cards in customers’ hands in days, not weeks.
The partnership between American Express and Costco set to end early next year is expected to have negligible impact to existing credit card ratings of American Express Credit Account Master Trust securitized bonds.
Monitise is further strengthening its alliance with Visa Europe, which is investing GBP24.7 million in Monitise at an issue price of 35p per share for 70.5 million new Monitise shares. With this, Visa Europe President and Chief Executive Peter Ayliffe, will join Monitise’s Board of Directors. Monitise also announces it has agreed to acquire the 51% stake in its US joint venture, Monitise Americas, held by Metavante Corporation, a subsidiary of Fidelity National Information Services Inc. (NYSE: FIS) (“FIS”). FIS is one of the world’s largest global providers dedicated to banking and payments technologies. In consideration for the purchase, Metavante will be issued with a 3.3% stake in Monitise plc. Completion is conditional on shares being admitted to trading on AIM. Monitise’s acquisition of the 51% stake in Monitise Americas values that business at $29.4 million.
Demonstrating Fitch Ratings’ break-even stress scenarios for the largest credit card issuers, card portfolio performance is positive overall. Chargeoffs currently sit at 6.4, below the three month average of 6.7, while the 3-month excess spread is currently 11.1, compared to the 10.9 average, and 60+ day delinquencies are only 2.2, compared to the average 2.4…
Monitise mobile banking, payments and commerce networks worldwide, announces its unaudited pre-close trading update following its 30 June financial year-end, with expected full-year revenues of approximately GBP14 million ($22 million), more than double the GBP6 million ($10 million) reported last year, and with a year-end annualized revenue run rate in excess of GBP20 million ($32 million). Growth across live mobile banking and payments services continues, with Monitise now handling more than 10 million banking transactions a month, including 100,000 account transfers and mobile payments per week with an average monthly value of more than GBP100 million. Finally, total Monitise registered customers are approaching 4.5 million, more than double the level seen a year ago.
Monitise m-Money solutions provider announce its 2H/10 fiscal period reached month-on-month cash break-even, in line with guidance given at time of the full-year results for the year to end-June 2010. Throughout the period, the Company broke over 3 million registered customers; customer adoption of its smartphone apps continues to be strong and to have a positive effect on usage; and its Globe Platform continues to grow strongly and in December processed more than 13 million transactions.
Fitch Ratings published its U.S. Credit Card ABS Issuance Trust
Updates for American Express Issuance Trust; BA Credit Card Trust;Capital One
Multi-asset Execution Trust;Chase Issuance Trust; Citibank Credit Card Issuance Trust;
Citibank Omni Master Trust;Discover Card Execution Note Trust and Washington Mutual Master Note Trust.
The “Credit Card ABS Issuance Trust Updates” offer a wide array of
performance data and trust detail. Fitch designed these comprehensive
reports to provide investors with timely and innovative research on
credit card issuance trusts updated monthly. The “Issuance Trust
Updates” link will access a compilation of parent company and trust
descriptions, collateral performance measures, trust capital structures
and maturity schedules, and break-even stress scenarios.
Gemalto Smart card has posted revenue of EUR453million for 4Q/09 and EUR1.7billion for the entire year, for a 2% increase over 2008 full year revenues. The IFRS consolidated income statement for the full year 2009 shows an operating income of EUR136 million and a net profit of EUR118 million, compared with an operating income of EUR127 million and a net profit of EUR115 million reported in the full year 2008. For the quarter, meanwhile, gross margin increased by 80 basis points to 36.3%, on the back of performance improvements in all three main segments. Operating expenses accounted for 26.2% of revenue, compared to 25.6% a year ago. Operating income was EUR171 million and the operating margin 10.3%. Excluding the special provision, operating income came in at EUR182 million and the operating margin at 11%, an increase of 90 basis points year on year. Net interest income was reduced by the significantly lower market yields on short-term investments, and was down EUR9 million to EUR 0.1 million. For more details on Gemalto’s performance visit CardData (www.carddata.com).
On Track Innovations reported that revenues declined 17% to $16.9 million in the first half of this year. Gross profit slipped 6% to $7.7 million. The Company previously reported that revenues were flat for the first quarter at $9.3 million. The GAAP net loss for the first quarter was $3.8 million, a 44% decrease, compared to the year ago quarter. OTI says its main goal is to bring the company to operating break-even position as quickly as possible. Based on the higher than expected decline in revenues in the first half, which is mainly attributed to the revenue reduction in the OEM and payments business segments and the delays in customers’ projects timetables, OTI updated its target revenues for 2009 to $34 million. OTI designs, develops and markets secure contactless microprocessor-based smart card technology. For complete details on OTI’s latest performance visit CardData (www.carddata.com).
NJ-based On Track Innovations reported that revenues declined 17% to $16.9 million in the first half of this year. Gross profit slipped 6% to $7.7 million. The Company previously reported that revenues were flat for the first quarter at $9.3 million. The GAAP net loss for the first quarter was $3.8 million, a 44% decrease, compared to the year ago quarter. OTI says its main goal is to bring the company to operating break-even position as quickly as possible. Based on the higher than expected decline in revenues in the first half, which is mainly attributed to the revenue reduction in the OEM and payments business segments and the delays in customers’ projects timetables, OTI updated its target revenues for 2009 to $34 million. OTI designs, develops and markets secure contactless microprocessor-based smart card technology. For complete details on OTI’s latest performance visit CardData (www.carddata.com).
Gemalto reported a strong performance in 2008. The Companyâs top-line
expanded by 6% at constant exchange rates, with revenue from software
and services growing by 44% at constant rates to account for nearly 10%
of the Company turnover. Operating margin was 10.1%, above the level
that the Company had set for itself to achieve at the outset of the
combination that created Gemalto. Telecom operators in Europe and the
Americas placed significant reorders after a particularly successful
2007 year-end campaign, and the Company recorded strong sales in Asia
around the Chinese New Year in the first months of 2008, thereby
attenuating the traditional seasonal contrast. Gross margin for the full
year was up by almost 5 percentage points to 35.5%, reflecting
operational efficiencies and scale. For complete details on
Gemalto’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).
Moody’s Investors Service has cut its rating for Citibank (South Dakota) NA. The credit card issuing bank’s financial strength rating was dropped to “C-” from “B.” The bank’s long-term deposit and senior debt ratings were cut to “Aa3” from “Aa1.” The short-term rating was affirmed at “Prime-1.” Moody’s says the financial strength rating was cut because Citi SD earnings are wholly dependent on U.S. credit cards. With economic conditions deteriorating, the bank is exposed to a potentially severe consumer-led economic downturn in the U.S., which makes the company susceptible to significant asset quality and earnings volatility through higher net charge-off and provisioning levels. Moody’s also noted that potential regulatory actions that restrict interest-rate pricing on credit cards could also affect Citibank’s revenue. Meanwhile,
Fitch Rating this week released its latest “U.S. Credit Card ABS Issuance Trust Updates” for the American Express, Bank of America, Capital One, Chase, Citibank, Discover, and Washington Mutual. The latest editions have been enhanced to include Available ‘AAA’ Issuance Capacity for each trust and an issuer peer comparison sheet.