A new study predicts that 83 million households will bank online by 2014. The new report from Javelin Strategy and Research indicates that more consumers are paying bills directly with banks online, not at individual biller websites. The report, “2009 Online Banking and Bill Payment Forecast” found that eight out of 10 online households now conduct online banking. The credit crisis of 2007 along with the banking collapses of 2008 and the resulting recession have spurred consumers to watch spending more closely. Key findings of the forecast include: Six in ten of online households bank online weekly, a 12% increase from 2008; seven in ten of online households pay bills online monthly, up from 64% in 2008; smaller banks are struggling to keep up with bigger banks online; bank fees are the main reason people switch financial providers and consumer demand is building for online personal finance management tools that consolidate money-monitoring capabilities offered by free web sites with those offered by banks and credit unions.
Online payment service provider PayPoint.net announced significant
growth in revenue, profits, transaction volumes and consumer spend during
2008-09. The business reported revenues of GBP8.0 million during the year
ending 29 March 2009, a 63% increase over the previous financial
year, while transaction volumes increased by 40% and online
spending increased by 36%. Highlights of the past year include the
launch of the PayPoint.net brand following the integration of SecPay and
Metacharge; 350 new merchants secured; the partnership with PayPal; the
launch of PayCash, a service enabling shoppers to pay in cash for the
goods they buy online and extensive upgrades to PayPoint.net’s fraud
management platform for gaming providers, enabling them to set
sophisticated fraud detection rules.
For the first quarter of 2009, MasterCard Europe experienced 3.9% in
gross euro volume, 4.2% purchase volume, 6.4% purchase transactions and
4.3% cash transactions compared to the first quarter 2008. In the first
three months of 2009 European cardholders made over 1.5 billion purchase
transactions with their MasterCard cards, including e-commerce. As of
31 March 2009, 195 million MasterCard(R) cards (excluding Maestro(R) and
Cirrus(R)) had been issued by MasterCard customer financial institutions
across Europe, up 7.0 % and the Maestro brand mark appeared on 312
million cards, up 4.4% compared to the same quarter in 2008.
In January, MasterCard and global retail leader Carrefour announced the
launch of the PASS MasterCard(R) card, the result of a partnership
designed to offer French consumers the very latest in ‘best-in-class’
card payments. The new card was rolled-out in France in February by
Carrefour’s financial services’ subsidiary, SociÃÂ©tÃÂ© des Paiements PASS.
A new study from RSR Research presents case studies from three successful tier-1 U.S. retailers dealing with securing sensitive customer data. Miami-based RSR Research says that many retailers have focused on how to make their legacy systems compliant with narrowly defined payment standards so that they can successfully pass an audit, they often think of the effort involved as an IT project rather than as a strategic imperative. Retailers can have unprecedented insight into what consumers like, what they don’t like, their lifestyle, where their money is, and possibly even their health state. But for those retailers who are behind the curve, the implicit brand promise that ‘consumer data is private and secured’ is more aspirational than real.
The FTC and 24 state agencies in 22 states announced a crackdown on 33
credit repair operations. The FTC’s “Operation Clean Sweep” charged
seven organizations with violations of “FTC ACT” and the “Credit Repair
Organizations Act.” The companies that allegedly engaged in unlawful
business practices include: FL-based Nationwide Credit Services, Inc.;
FL-based Clean Credit Report Services, Inc.; CA-based Successful Credit
Service Corporation; IL-based Advantage Credit Repair LLC; FL-based RCA
Credit Services, LLC; FL-based Latrese & Kevin Enterprises, Inc.;
FL-based ACE Group, Inc. “Operation Clean Sweep” also includes three FTC
cases announced earlier this year: Home Buyers Consulting Network, Inc.,
Payneless Credit Repair, LLC, and Lee Harrison Credit Restoration.
TNB Card Services has hired Doug Farrell, formerly with Remitpro, and Andy Bowers, formerly with Fifth Third Bank Processing Solutions, as VPs of regional sales. Farrell will focus on the south central and western regions. He previously held positions with a variety of companies in the electronic payments market, including First Data Resources and Eastman Kodak. He has had extensive experience in selling outsourced software applications and technology solutions to Fortune 1000 companies. He has a degree in business administration from the University of Nebraska, Lincoln. Andy Bowers, who focuses on the northeastern region, previously worked in sales with Muzak Corporation. He has a degree in business administration/organizational communication from Ohio University.
Capital One has introduced a no-fee/”no-hassle” rewards card in response to a recent survey suggesting such criteria is popular. The recent survey, sponsored by Capital One, shows that only 10% of Canadian consumers were satisfied with their current rewards card. Moreover, 42% of the participants were bothered by annual fees and 42% were frustrated with expiry dates on credit card rewards programs. In addition, 53% would prefer a cash back reward, 26% prefer gift certificates, 24% would be happy with merchandise, and 39% prefer travel rewards. Therefore, Capital One’s rewards card also offers one reward mile for every dollar spent, a “welcome” bonus of 5,000 miles with first purchase, no limit on the rewards customers can earn, no expiration on rewards for the life of your account, and no blackout dates or seat restrictions among other consumer- friendly features.
Capital One has introduced a no-fee/”no-hassle” rewards card in response
to a recent survey suggesting such criteria is popular. The recent survey,
sponsored by Capital One, shows that only 10% of Canadian consumers
were satisfied with their current rewards card. Moreover, 42% of the
participants were bothered by annual fees and 42% were frustrated with
expiry dates on credit card rewards programs. In addition, 53% would
prefer a cash back reward, 26% prefer gift certificates, 24% would be
happy with merchandise, and 39% prefer travel rewards. Therefore,
Capital One’s rewards card also offers one reward mile for every dollar
spent, a “welcome” bonus of 5,000 miles with first purchase, no limit on
rewards customers can earn, no expiration on rewards for the life of your
account, and no blackout dates or seat restrictions among other consumer-
PayPartners announced that Jennifer Birkel, previously with Coca-Cola, is its new Director of Marketing. PayPartners is a provider of consumer-friendly paycard and remittance solutions. Clients include McDonald’s, Burger King, Mohawk Industries, Pratt Industries, Associated Grocers of the South, Scientific Games, Swisher Hygiene and Hickory Springs.
Online payment solution provider Net Cash announced it can now be enabled through the Cardinal Centinel platform. Online merchants can accept payment from consumers using “NetCash” for either one-time or recurring payments, to purchase physical goods or access to online content or services or to facilitate micro-payments. “NetCash” is a user-friendly online payment solution that allows consumers to make purchases anonymously, securely, and conveniently and addresses the growing number of consumers who have concerns about their online security and privacy. Consumers can purchase “NetCash” online using a credit card or offline with cash at over 52,000 retail locations. CardinalCommerce is a provider of authentication services for banks, merchants, processors and financial service providers.
A new report suggests that lenders increasingly require better stratification of consumer credit risk than current scoring provides especially as they target “underbanked” and “unbanked” consumer segments, and deal with subprime defaults. The research from TowerGroup says lenders should evaluate new custom credit score options such as “VantageScore” by Equifax, Experian and TransUnion, the “Anthem Score” from First American, and the “FICO Expansion Score” from Fair Isaac. TowerGroup estimates that the consumer-direct customer segment for credit reporting and scoring products will grow 39% between 2001 and 2010.
Alliance Data Systems has signed a six-year agreement with The Dunlap Company to provide private label credit card programs for its department store brands. Under terms of the agreement, Alliance Data will provide a full suite of services including account acquisition and activation; receivables funding; card authorization; private label credit card issuance; statement generation; remittance processing; marketing services; and customer service functions. Dunlaps is a privately-held, regional department store chain, currently operating 38 stores in eight Southern and Southwestern states, including Texas (21), Arkansas (4), Colorado (3), New Mexico (3), Arizona (2), Kansas (2), Oklahoma (2) and Alabama (1). Alliance Data (NYSE: ADS) is a leading provider of transaction services, credit services and marketing services, managing over 105 million consumer relationships for some of North America’s most recognizable companies.