In today’s CardFlash News Que: PAYPAL (brand); AMERICAN EXPRESS (school); MERCATOR (P2P); and TSYS (FPS).
The Panasonic “Stingray Envo POS” workstation (JS-960) is now certified by CKE Restaurants and has met the rigorous certification standards set forth by CKE. The “Stingray Envo” is designed to increase efficiency by enabling self-service and can be mounted in virtually any configuration to work seamlessly in any restaurant environment. Envo is built to withstand the daily wear of the restaurant environment, passing rigorous factory testing and featuring an aluminum alloy chassis to ensure reliability and dependability throughout the life of the device.
American Express OPEN and home improvement retailer Loweâs Companies are set to
issue a co-branded rewards card that will allow small business owners to
earn points on virtually all purchases and generate valuable rewards. The agreement brings together two of the most respected companies and
valuable brands:American Express OPEN, the nation’s leading issuer of payment card
products for business owners, and Loweâs, the worldâs second-largest home
improvement retailer, to offer an array of benefits and services that
will provide exceptional value for business owners. Loweâs has been a card-accepting
merchant of American Express since 1982. The Card will launch broadly in the first quarter of 2010.
Banco Itau Holding Financeira and Itausa Investimentos Itau
have entered into an agreement with Bank of America Corporation for the acquisition of BankBoston in Brazil. The deal also gives the exclusive right for ITAU to acquire BKB’s operations in Chile and Uruguay. This transaction is the largest stock swap ever to be completed in the Brazilian financial services industry. BankBoston Brazil has approximately R$26 billion in assets under management.
American Express indicated yesterday it will shortly announce a partnership with a major European air carrier. AmEx also noted Wednesday that “Blue Card” volume is up 40% for the first six months of 2003, compared to the same period in 2001.”Blue” now represents about 19% of the company’s total managed U.S. lending receivables. AmEx said that early vintage “Blue” products have write-off rates that are much better than early vintage “Platinum Optima” cards. AmEx says that FICO levels of new “Blue” customers have been consistent and strong throughout the four years it has offered the product, and in fact were slightly higher in the first six-months of 2003. AmEx also noted that its new “5% Cash Rebate” card has seen a 75% average monthly spend increase vs. the original “Blue Card.” In June the Company announced a corporate co-brand card with American Airlines and also strategic partnerships with Qantas and Air Canada.
Citigroup reported yesterday that core income for cards unit increased 96% to $267 million driven by the performance of its acquired AT&T Universal Card Services portfolio and the recently acquired Mellon portfolio. Revenues rose 10% primarily from risk-based fee increases, a 15% rise in sales volume and 13% growth in receivables in U.S. bankcards over the prior year quarter. Receivables reached $70.3 billion and accounts rose 4%, or 1.7 million. Credit continued to improve, as net charge-offs as a percentage of average receivables in the U.S. bankcard portfolio fell to 4.63% from 5.65% in the prior year period and 4.72% in the 1999 first quarter. Internationally Citigroup entered into a co-branding alliance with Cathay Pacific Airways and launched its bankcard product in Hungary and Guam during the second quarter. For complete 2Q/99 financials for Citigroup visit CardData (www.carddata.com).
CITIBANK U.S. PORTFOLIO SNAPSHOT
2Q/99 1Q/99 4Q/98 2Q/98
RECV: $70.3b $69.4b $69.6b $62.0b
Q-VOL: $40.8b $36.8b $42.2b $35.4b
ACCTS: 41.1m 41.4m 40.5m 39.4m
CO: 4.63% 4.72% 4.82% 5.65%
DEL: 1.36% 1.46% 1.45% 1.56%
CO-charge-offs as a percentage of average receivables; DEL- 90+ day
delinquency rate, percentage of dollars past due
Source: CardData (www.carddata.com)
NYCE Corp. and Magic Line confirmed Thursday morning they will operate under the single brand of ‘NYCE’ for all products and services when they complete their merger. Dennis Lynch will continue as President and CEO of NYCE Corp. with corporate headquarters in Woodcliff Lake, NJ. John Bascom, will serve as an EVP of NYCE and President of its Midwest Regional Business Unit, based in Dearborn, MI. When the merger is closed, NYCE will have 12 principal financial institution owners whose representatives will serve on the Board of Directors. In addition, the Board will have four seats for regional representatives from among the 240 financial institutions throughout the Northeast and Midwest regions. Bascom and Lynch are also on the Board. The branding decision followed a Midwest research plan designed by The Interbrand Group. Following the closing of the merger, NYCE will serve over 45 million cardholders in 15 states, through a network that includes 35,000 ATMs and 185,000 POS retailer locations.