It also comes as no surprise to learn that most consumers prefer to get cash from ATMs than any other alternative. According to a study of electronic banking usage conducted by Analytica, Inc. for Magic Line, Inc., consumers have abandoned the old “poke and hope” theory, whereby consumers will put the card in any machine and hope it works. Today, brand recognition is crucial among consumers when using cards at the ATM machine or in retail settings for purchases. Other Magic Line findings: about 69% of Americans have an ATM/debit card; 39% have used POS debit cards; only 12.3% have made an Internet purchase with a payment card and 42% of those not using cards on-line said security was the reason.
Global One, a joint venture between Deutsche Telekom, France Telecom, and Sprint, has been selected by MasterCard as the global marketer and distributor for the ‘MasterCard World Cup ’98’ prepaid calling card. MasterCard had signed an agreement with France Telecom to handle marketing in France. However, Global One will now market and distribute the prepaid card through special programs in over 100 countries outside of France. The World Cup is the world’s largest single sporting event, with 32 competing teams, 2.5 million spectators, and a massive television audience.
Deposit access products will account for the single largest share of transactions in the global payments by the year 2005, according to MasterCard CEO Robert Selander, who spoke at the company’s Asia/Pacific Regional annual meeting in Perth, Western Australia last week. Over the past five years, since Maestro was launched in Asia/Pacific, the global debit program has reached 40 million cards in the region and is projected to grow to 100 million by the year 2000. Selander commented that emerging platforms such as chip and deposit access are two areas that member financial institutions should be focusing on to position themselves competitively and strategically for the future.
Maestro International, a joint venture of MasterCard International and Europay International, today announced the election of Dr. Paul Ribourdouille as Chairman of the Maestro International Board of Directors.
Maestro International delivers to banks around the world an acceptance mark that offers to customers of those banks, global access to their deposits at ATMs and at the point of sale. All such transactions can take place under full control of the card issuing bank.
Dr. Ribourdouille was until recently a member of the Managing Board of ABN/AMRO Bank. During most of his career he had primary responsibility for Information Technology and Payment Systems.
Dr. Ribourdouille brings 22 years of banking experience to Maestro International. He established a prominent reputation as a pioneer in the introduction of chip technology and electronic cash in the payments industry in the Netherlands, where he chaired all major banking ventures in the field of payment systems. Prior to launching his successful career in financial services, Ribourdouille held senior management posts at a large European clothing retailer and at Phillips Electronics.
Dr. Ribourdouille is a five year veteran of the Board of Directors of MasterCard International. He also has been a member of the Europay International Board of Directors since 1992.
Maestro is the leading global, on-line debit brand, with more financial institutions, merchants, cards and acceptance locations in more countries than any other debit program in the world. “We will benefit from the vision, experience, and commitment that Dr. Ribourdouille brings to this key position at this critical time in the evolution of Maestro International. The active involvement of the new Chairman of the Board should lead to positive bottom-line results for Maestro International and its members globally,” says Francis van den Bosch, CEO, Maestro International.
Developed jointly by MasterCard International and Europay International, Maestro was introduced to offer cardholders an electronic payment alternative that provides access to cash and checks. The Maestro acceptance mark now has been expanded to the ATM to provide consumers with a single global point-of-sale and ATM brand. This means that the more than 375,000 ATM’s currently accepting MasterCard and Cirrus cards will now be able to accept Maestro cards. Maestro already has over 150 million debit cards worldwide and is accepted for purchases at over 2.5 million merchant terminals in over 60 countries and territories on 6 continents.
MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. More than 600 million MasterCard, Maestro, Cirrus and Mondex cards are accepted at more than 15 million locations worldwide. In 1997, gross dollar volume exceeded $600 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com.]
Hypercom announced Monday a $650,000 contract to provide Sampath Bank with Hypercom POS terminals, PIN pads and networking accessing controllers. This will be the first debit card system in Sri Lanka. Under yesterday’s contract, Hypercom will supply T7 Series POS terminals, primarily the T7E and T77, S7 and S7GCB PinPads and Networking Access Controllers. Sampath Bank is one of Sri Lanka’s top three commercial banks and the most technologically advanced with 325,000 customers.
Banco de la Republica Oriental del Uruguay, the largest bank in Uruguay, and Banco de Montevideo, Uruguay’s third largest bank, purchased the franchise rights Friday for Mondex electronic cash in Uruguay. The deal gives the banks exclusive rights to commercially develop Mondex electronic cash in Uruguay and represents the first Mondex franchise sold in South America. To mark the signing of the deal, the very first interregional Mondex transaction between the United States and South America was performed via telephone last week. Using a Mondex card, the president of the Republic of Uruguay, transferred value between the banks headquarters in Montevideo, Uruguay, the BROU branch in New York, and back again. A Mondex transaction over the Internet was also performed.
Beginning this month MasterCard is offering consumers a chance to win one of more than 2.2 million ‘Coca-Cola ATM MasterCard Cards’ with cash values of $20, $40 and $100. This is the second year MasterCard has joined Coca-Cola’s annual summer promotion. The ATM cards will be randomly inserted in more than 1.5 billion packages of Coke. Instant win messages will also appear on fountain cups and under the caps of large bottles of Coke. Winning cards can be redeemed at any MasterCard/Cirrus ATM. The MasterCard Coca-Cola card is a key component of ‘The Coca-Cola Card’ summer promotion announced in mid-March. The ‘Coca-Cola Card’ gives consumers more than 20,000 local discount offers from over 9,500 partners.
MasterCard International announced this week that MasterCard issuers participating in the GSA Master Contract for card services will now have access to Constructive Key Management, a data encryption application developed by TECSEC Inc., that will run on a MULTOS chip. TECSEC is the first applications developer to unveil plans to bring a MULTOS-based security application to market. TECSEC expects to have their MULTOS-based version of CKM available by year-end. In the future, government employees could be issued a MasterCard smart card that would provide a cardholder with secure access to government buildings and computers as well as provide the ability to encrypt data for transmission over the Internet. MasterCard projects the GSA card contracts will cover $100 billion of transactions over 10 years.
MasterCard announced Monday the successful testing of the ‘MasterCard Chip Payment Application’ on the MULTOS operating system. MCPA is a chip-based application that enables an issuer to support MasterCard-branded credit and debit transactions as well as Maestro and Cirrus-branded debit transactions on a chip card. This first ever test of a debit/credit application on a truly global platform is an important milestone in the evolution of a smart card industry looking to embrace open industry standards. The MasterCard Chip Payment Application or MCPA was tested on the MULTOS platform in order to demonstrate the global interoperability of both the payment application and the operating system itself. U.K.-based Midland Bank announced yesterday it will be the first bank to commence a live trial of MCPA, planned for late summer 1998, in over 400 retail outlets in that country. Meanwhile, MasterCard recently completed an upgrade of the BankNet authorization and clearing network to support chip-based debit and credit transactions.
MasterCard International announced Monday that MasterCard issuers participating in the GSA Master Contract for card services will now have access to Constructive Key Management, a data encryption application developed by TECSEC Inc., that will run on a MULTOS chip. TECSEC is the first applications developer to unveil plans to bring a MULTOS-based security application to market. TECSEC expects to have their MULTOS-based version of CKM available by year-end. MasterCard entered into yesterday’s agreement with TECSEC in support of MasterCard GSA issuers including First Chicago NBD. The issuers will be granted exclusive rights to TECSEC’s CKM smart card application for their MasterCard-branded travel, purchasing, fleet, or integrated cards issued under the GSA Master Contract.
MasterCard International announced yesterday its total U.S. volume hit $263 billion last year, representing a 14.8% increase over the previous year. The number of MasterCard cards in circulation grew by 10.3% to 186.8 million. For the year, MasterCard’s credit products volume in the U.S. grew 11.7% to $246.2 billion. MasterCard says its debit cards are now growing faster than VISA’s debit cards. The association says MasterCard debit card products posted volume growth of more than 93% during 1997. Approximately 200,000 new U.S. merchant acceptance locations were added in 1997, for a total of 3.8 million. Internationally MasterCard logged $602 billion in gross dollar volume in 1997, representing a doubling in gross dollar volume over the past five years and a 14.1% increase from 1996. Maestro generated more than 6.5 billion transactions during 1997 compared to 5.7 billion transactions for 1996. At year-end there were more than 600 million MasterCard, Maestro or Cirrus cards-in-force in 220 countries.
Magic Line, Inc., the Midwest’s largest EFT network, and Online Resources & Communications Corporation today announced they have signed an agreement to offer Online Resources’ remote banking and interactive financial services to Magic Line’s banks, credit unions and thrifts.
Magic Line, the seventh largest network in the nation, serves more than 1,000 financial institutions in the Midwest. Online Resources will offer its industry-leading banking and billpaying services, distinguished by their real-time and integrated, multi-access capabilities.
“Magic Line is pleased to make this agreement with Online Resources, who has an excellent reputation in the marketplace. Through it, we will be able to expand remote banking services to our financial institutions, as we continue to meet their needs and offer choices to help them compete,” said John Bascom, president and CEO of Magic Line, Inc.
Complementary Strengths in Real-time Services
Online Resources CEO Matthew P. Lawlor said his company, which holds a patent relating to real-time financial services, believes that Magic Line will play a key role in fostering interactive services. “Magic Line and other EFT networks, along with Online Resources, have pioneered real-time services. Twenty-four hour cash-on-demand and POS card services are among the financial services initiatives that have changed the way consumers manage their money. The trust the public has in Magic Line and the support the network has shown its banks, credit unions and thrifts make Magic Line an excellent partner for us.”
For consumers, there are several key advantages to a real-time environment:
Balances are up-to-the-minute
Because accounts are verified before bills are paid, online overdrafts are eliminated.
Consumers can use various devices from anywhere and at any time and yet get up-to-the-minute information. This makes real-time especially important to families where more than one member has access to accounts.
Real-time debiting facilitates bill paying. Online Resources, for example, can guarantee most payments within two days.
Other strong attractions of the Online Resources’ service are that it can be tailored to institutions of all sizes and that it offers customer service support that is often mission-critical to the mid-size institutions.
Lawlor said the Magic Line partnership represents a major thrust for his company in the Midwest. “We are extremely pleased that the largest Midwest EFT network has chosen to support financial institutions with a multi-device, outsourced approach that’s easy to implement,” Lawlor said, noting that his company offers consumer access via the Web, private networks, telephones and ScreenPhones.
Online Resources’ offers proven Web real-time service. Since mid-1996, the company has provided to institutions of all sizes the ability to conduct real-time transactions on the Web. Moreover, it has a industry-wide reputation for developing and launching reliable and secure Web banking services that include cash management and billpaying, as well as Web site design and hosting, for $30,000 to $50,000.
As one of the top regional EFT networks linked throughout the United States and globally, Magic Line supports 14.9 million cardholders with access to over 165,000 ATM, POS and remote banking terminals. The company offers: full-service ATM placement and management; ATM terminal driving with customized options; cardbase management and authorization services; online POS debit services with ML Pay, Maestro and Interlink; offline POS debit services with MasterMoney and Visa Check Card; remote banking/bill payment services; the Magic Line Mobile ATM; Internet Web Site development; marketing services; and the Magic Line PrePaid Calling card. Magic Line’s Internet Web Site address is [www.magicline.com].
McLean, Va.-based Online Resources & Communications Corporation () is a leading wholesaler of interactive consumer financial services to financial institutions. The company provides a “one-stop shop” for its institutional clients. It integrates a large variety of consumer access options (PC ScreenPhone, Telephone via internet or private network) with an extensive set of financial transaction services (billpaying, banking and other services). Using its patented ATM network-based architecture, the company’s real-time transactions offer major cost and quality benefits. The company’s core services are augmented by a host of products and support services. Online Resources, a privately-held company founded in 1989, serves more than 225 financial institutions nationwide.