Green Dot Corporation’s “GoBank” (GDOT) is open for general availability, no longer an invite-only service for beta members. A GoBank account is an FDIC-insured bank account that is specially built for the smartphone generation”designed from the ground up to be opened and used on a mobile device. Now anyone can sign up for GoBank on the app for iPhone or iPod Touch (available for download from the Apple App Store) or at GoBank.com (by clicking or tapping ‘JOIN’). GoBank has formed a national partnership with MetroPCS to distribute the GoBank mobile application across MetroPCS’s compatible Android device portfolio. GoBank will also be featured as the official financial sponsor on the upcoming 12th season of Lifetime’s “Project Runway,” premi “Project Runway,” premiering July 18. Throughout the season, contestants will utilize GoBank accounts showcasing the slide for balance feature, Fortune Teller, debit cards and person-to-person money transfers.
Jeff Young, chairman and CEO of Evolution1, has been named a HealthCare Consumerism Superstar by The Institute for HealthCare Consumerism (IHC). Evolution1 electronic payment, on-premise and cloud computing healthcare solution administers reimbursement accounts, including HSAs, HRAs, FSAs, VEBAs, Wellness and Transit Plans. This comes after Evolution1 received Deloitte’s 2011 Technology Fast 500™, the 2011 Marcum Tech Top 40 and the Inc. 500|5000.
The number of payment cards, categorized as credit and debit cards, is increasing rapidly in India. With increasing number of credit card holders and rising consumer confidence regarding credit card purchase, the transaction value of credit cards in India is forecasted to increase at a CAGR of around 8% during FY 2011-2013, according to a RNCOS research report, “Indian Payment Card Market Forecast to 2012.” This growth will be largely attributed to the improving credit card payment infrastructure in the country, with most of the merchants accepting credit card payments at POS terminals. Banks have also tightened their rules of issuing credit cards on account of increasing fraud cases, which have also helped in improving the credit card infrastructure in the country. While the Reserve Bank of India has imposed several restrictions on the foreign banks, there are no such restrictions on credit card companies, so these banks dominate the Indian credit card market.
Evolution Benefits (EB) electronic payment and benefit administration software solutions will host its annual User Conference April 18-20 in St. Louis, Missouri to provide practical ideas and information that will allow “PayDirect” users to achieve cost and quality objectives while demonstrating value to customers. Evolution Benefits executives will oversee keynote presentation on industry trends and address plans to further enrich the System’s capabilities. Evolution Benefits electronic payment and benefit administration solutions for the employee benefits market include its “Benny” benefits debit card and the “PayDirect” software suite.
Citibank launched its “Citibank Cash Back Platinum Card” to address an increasing trend toward practical consumerism among the emerging affluent in Malaysia. The new card covers the widest range of everyday items made available in the market with instant cash back of up to 5% on gasoline, groceries, phone bills and pharmaceutical purchases throughout the year. This is being made available in response to extensive research conducted throughout the Country showing there is an increasing trend in the emerging affluent segment toward practical consumerism and purposeful spending. The research also concluded over 40% of consumers in this segment preferred immediate money savings on all their card purchases to any other form of reward.
Discover has been addded to the NAFCU Services Corporation “Preferred Partner Program” for national payment network solutions for credit unions. Through its national payment network solutions, Discover will provide NAFCU members with credit, debit and prepaid card programs built to attract and retain members through expanded, enhanced and competitive solutions.
After having undergone extensive evaluation from the NAFCU Services Advisory Committee and Board of Directors, Discover has been awarded the go-ahead to meet the needs of credit union issuers. With this, NAFCU member credit unions receive special benefits on Discover’s payment solutions.
Average individual Health Investment Account Balances (HIA) have
increased 28% while family Health Investment Account Balances have
increased 21% Q/Q. Additionally, average individual HSA balances
increased 6% and family HSA balances increased 8% since 1Q/09. These
findings, according to Canopy Financial healthcare banking technology
solutions and its 2Q/09 “Health Savings Account (HSA) Market Report,”
also showed individual HIA accountholders age 25-40 and family HIA
accountholders age 41-50 realized the greatest amount of growth in their
HIA balances for the quarter; the majority of spend in Q2 continued to
come from Reimbursements; and new account growth and employer
enrollments were both up in for the quarter.
Serious political attention is now being paid to the digitalisation of
households throughout the UK in the evolving ‘Digital Economy’. Business
& Decision’s recent report, “The Revolution in Self-Service Channels in
the Financial Services Sector,” analyzes the growth of consumer
self-service channels in key areas of the Financial Services market and
looks at who is winning and who could lose out. Examining the recent
emergence of new operating models and highlighting the transformation of
more established business models in those parts of the Financial Markets
most affected, the report investigates the drivers and inhibitors of the
market, the broad demographic spread of demand and the challenges to
established players in financial services and assesses the impact of
future changes that may occur in the digital marketplace. This includes
consumers’ testing the capability of many ‘traditional’ businesses to
communicate digitally, with businesses which do not connect digitally
increasingly left behind. The pressure grows on businesses to deliver
sites that meet their needs in design and ease of navigation with the
spread of demand for digital connectivity across all age groups and
correlation between age groups and various waves of social networking
A new study has found that the U.S. private-label credit card market
contracted by four percent last year and is likely to grow outstandings
a mere 50 basis points in 2009. At the same time, issuers of store and
gas credit cards are facing rapidly deteriorating cardholder performance
as charge-offs have soared by more than 40% and delinquency by nearly
24%. An annual report issued by market researcher Packaged Facts
estimates that receivables for the private-label credit card market
declined to $109 billion in 2008, compared to $114 billion for 2007. In
2007, only 11 private-label credit card issuers had receivables greater
than $100 million, down from 17 in 2004 and 27 in 2001. Further, only
three banks had receivables of more than $10 billion in 2007. Packaged
Facts says this massive concentration at the top of the list is the
result of years of ongoing acquisitions and consolidation in the
industry, leaving the top three private-label credit card issuers in
control of roughly three-quarters of total private-label receivables.
Meanwhile, the latest ABS “Credit Card Index” results from Fitch Ratings
shows 60+ day delinquencies hit 4.5% and charge-offs hit 9.1% at
mid-year 2008 for retail or private label credit cards. Fitch expects
charge-offs to exceed 12% in first half 2009. Contributing to the
performance erosion is that private-label portfolios have a greater
proportion of lower quality borrowers and higher base interest rates.
(CF Library 12/12/08)
RETAIL CARDS OUTSTANDINGS
2005: $104 billion
2006: $111 billion
2007: $114 billion
2008: $109 billion
2009: $110 billion
Source: Packaged Facts & CardData.com
Healthcare payment network InstaMed has released its second white paper focused on the growing business problem of payment assurance between payers and patients as health plan members take on greater payment responsibility. The white paper introduces a payment assurance framework for payers and areas of opportunity that payers can address as network discounts come under attack and threaten the payer value proposition to employers. InstaMed is registered with Visa and MasterCard as a PSP of U.S. Bank. InstaMed is Payment Card Industry Level One certified and fully accredited by the Electronic Healthcare Network Accreditation Commission as a healthcare clearinghouse and currently supports the healthcare payment processing needs of over 600 hospital and clinic locations.
A new survey of 28,000 taypayers has found that more than 87% paid their taxes with a payment cards because it was convenient and easy to use and/or they were running out of time. About 3% indicated they ignored the advice of personal finance advisors, using the service for short term financing. The research from Metavante’s “LINK2GOV” payment service also found that 84% were likely to use the service again. LINK2GOV isn’t the longest tenured IRS payments partner, in 2007 it acquired more than half of all federal tax payments initiated with credit and debit cards. The service has generated additional electronic transactions for the IRS at a compounded annual transaction growth rate of nearly 65% since entering into its IRS relationship in 2003.
In honor of Lent, The Methodist Church has introduced its “Buy Less:
Live More Credit Card” to encourage customers to spend less. With the
new card, consumers are reminded not to buy unnecessary goods and
services, leading to a subsequent increase in carbon offsetting and a
decrease in consumerism. Designed to fit in the user’s wallet, the “Buy
Less: Live More Credit Card” is to be placed in front of other credit
cards as a reminder for this cause, rather than as a contributor against it,
and cannot be used for purchases of any kind. Experts responsible for the
card design say the new solution will allow users to reconsider priorities
and weigh the differences between their wants and needs.