A London-based cross-industry smart card group is taking shape. GlobalPlatform announced the appointment of its chairman, board of directors and organization structure Thursday. Steve Brown, business development manager for smart cards, British Telecommunications, was elected chairman of the board, and Philip Yen, SVP of Internet and Access Channels at VISA International, was elected vice chairman. Among the other five members appointed to the board: Glenn Weiner, VP Smart Card Technologies at American Express and Masanori Maeda, SVP Electronic Commerce Department at JCB. The board’s mission is to oversee the enhancement and promotion of specifications governing dynamic smart cards, acceptance devices, and back-end systems. The four working committees designated by the board will be chaired as follows: Dominique Hautain EVP at Proton World is chair of the ‘Business Committee’; Nicole Moyal director at American Express chairs the ‘Systems Infrastructure Committee’; Jim Lee SVP at VISA International chairs the ‘Card Infrastructure Committee’; and Michel Dargent architect and new product manager at Ingenico chairs the ‘Terminal Infrastructure Committee’. Global Platform was formed in October and has 33 members.
Global information solutions provider Experian, one of the world’s leading card processors, has taken direct action in battling the growing payment card fraud trends in the United Kingdom, where plastic card fraud losses were estimated at £140 million ($226 million US) in 1998 and are expected to rise 33% in 1999. HNC Financial Solutions, a division of HNC Software Inc., announced today that Experian has successfully implemented the Falcon(tm) fraud detection system and Falcon Expert subsystem to guard its customers’ card portfolios from fraud activity. Experian is now using Falcon to protect the card portfolio of a major card issuer to safeguard its newly launched card product offerings. “We’ve been impressed with Falcon’s proven track record in bank card protection, as well as with HNC Financial Solutions’ ability to assist us in ensuring that the tight implementation timetables of this significant account were met,” said Bill Hislop, Managing Director of Experian’s Management Systems Division. “Another important factor in our selection decision was Falcon’s ability to operate in real-time-an ability we hope to make use of in the near future.”
“Falcon has been heralded around the globe as a leading fraud detection solution and has been credited with helping to slow the rise in worldwide credit card fraud losses,” added Dave Johnson, HNC Financial Solutions Vice President of Fraud Products. “We’re confident Falcon will do an outstanding job in protecting Experian’s customers, as it has with our other European clients.”
Falcon, a neural network-based predictive software system that examines transaction, cardholder, and merchant data to detect a wide range of payment card fraud, currently protects more than 300 million payment card accounts worldwide.
Experian is a global information solutions company that specializes in helping organizations make informed business decisions. The company is one of the world’s leading suppliers of consumer, business, motor vehicle, and property information. By combining its databases with advanced technology and consulting services, Experian assists its clients in targeting and acquiring new customers, building successful customer relationships, and managing financial risk. The company employs 12,000 people in the UK, USA, Continental Europe, Africa, Latin America, and Asia Pacific. Annual sales are approximately $1.5 billion. The company’s headquarters are in Nottingham, UK, and Orange, California. Experian is a subsidiary of The Great Universal Stores P.L.C., a UK-based holding company that includes home shopping, retailing, property investment, finance, and information services. For more information, go to the Experian website at http://www.experian.com http://www.experian.com> .
About HNC Financial Solutions HNC Financial Solutions is a leader in predictive customer relationship management (CRM) software for the payment card and consumer lending industries. Its powerful suite of proven decision platforms and predictive business solutions address the mission-critical, customer-lifecycle needs of financial institutions. About HNC Software Inc. Headquartered in San Diego, California, HNC Software Inc. (Nasdaq: HNCS) is a leading provider of complete Predictive CRM solutions for service industries. HNC divisions include Financial Solutions, Insurance Solutions, eHNC, and Telecommunications Solutions. HNC’s suite of Predictive Software Solutions can provide real-time insight into customer relationships based on transaction-level data, helping business-to-consumer companies manage their relationships with individual customers. By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability; optimize store replenishment activities; and detect fraudulent customer transactions.
Trintech Group PLC (Nasdaq:TTPA)(Neuer Markt:TTP), a leading provider of end-to-end secure electronic payment infrastructure solutions, Tuesday announced record third quarter and nine month revenues for the period ended October 31, 1999.
Revenues for the third quarter ended October 31, 1999 were $8.03 million, compared to $4.15 million for the third quarter of 1998, an increase of 94%. Nine month revenues were $21.20 million, increasing by 42% from $14.92 million for the same period last year. The increase in revenue reflects strong growth in software license revenue, which increased by 248% to $2.36 million for the quarter over the third quarter last year. License revenue for the nine month period increased by 86% to $5.69 million from $3.06 million for the same period last year. Product revenue increased 58% to $4.89 million for the quarter and increased by 32% to $13.43 million for the nine month period over the same period last year. Service revenue rose 112% from $370,000 for the third quarter last year to $783,000 for the third quarter this fiscal year.
The growth in the company’s revenue can be attributed to increased demand and market penetration for Trintech’s eCommerce infrastructure solutions, an expansion of our global sales force, as well as successful cross-selling to existing customers. Trintech has successfully leveraged its strong physical world customer relationships, particularly in Europe, to generate sales of the PayWare and PayGate eCommerce software license solutions. Trintech continued to expand its position in the U.S., where the company successfully signed marquee U.S. customers, such as eVisa and MasterCard.
Gross margin for the quarter ended October 31, 1999 was 46.4% ($3.72 million), up from 21.3% ($883,000) for the same period last year. “Improvements in gross margin are a result of the significant growth in high margin software license revenue, as well as improving margins on electronic point-of-sale systems,” said Paul Byrne, Trintech chief financial officer.
Trintech accelerated research & development spending, which was up 189% to $2.39 million for the third quarter from $825,000 for the third quarter last year. Trintech intends to continue to invest in significant R&D expenditure so as to position itself at the forefront of ePayments infrastructure for eCommerce.
“The strength of our results in this quarter is a strong endorsement of our clearly-defined product strategy that focuses on the needs of our customers,” said John McGuire, co-founder and chief executive officer. “Trintech has a 13-year history of providing secure payment infrastructure solutions that address the two main objectives of our customers, namely increased revenue and reduced operating costs, including costs of fraud. The strengthening of our MasterCard relationship, combined with our strong existing Visa relationship, places Trintech as a premier worldwide provider of the ePayments infrastructure for these major card brands. Our product offerings in both the physical and Internet world clearly defines Trintech as a company with a long-term strategic vision that encompasses multiple aspects of ePayments in this new digital age of eCommerce.”
During the quarter, Trintech successfully completed a dual-listing Initial Public Offering, both on Nasdaq and the Neuer Markt. The offering raised nearly $60 million, net of expenses, in cash for the company and provides the funding to enable the company to execute its mission to become the leading worldwide provider of secure ePayment solutions for payment card transactions.
The net loss for the quarter decreased to $2.14 million from $2.85 million for the third quarter last year. Basic and diluted net loss per ordinary share and per ADS was $0.11 for the third quarter compared to $0.18 for the third quarter last year.
During the quarter, Trintech continued to develop new eCommerce payment solutions for ISPs, CSPs and on-line retailers, as well as the addition of a virtual credit card offering. These ePayment for eCommerce solutions continue to build out the company’s secure electronic payments product suite.
Trintech’s PayGate NetAcquirer technology now powers eVisa — an Internet payment service offering acquirers and merchants in the U.S. secure and rapid real-time processing of online payment card transactions. The eVisa unit, established as a wholly-owned subsidiary of Visa USA, is designed to position Visa as one of the premier acceptance brands of the emerging digital economy.
In September, Trintech announced the launch of PayWare(R) Net 2.0, the latest generation of Internet payment products for merchants and merchant hosting companies. Trintech then installed PayWare Net in Deutsche Bank, currently Germany’s largest merchant acquirer, allowing the bank to become one of Europe’s few bank-operated Commerce Service Providers (CSP).
A major focus for development in the quarter was PayGate NetIssuer. Trintech’s NetIssuer solution allows banks to issue virtual credit cards to consumers. NetIssuer has been specifically designed to meet the two major requirements of issuing banks: branding and risk management. The issuing bank’s brand is downloaded directly to the cardholder’s desktop, giving the issuer unique brand visibility and flexibility. Secondly, NetIssuer’s risk management features can significantly reduce the costs of card related Internet fraud every time the consumer uses their virtual card. NetIssuer’s bank-centric design clearly distinguishes Trintech’s solution from competitor ‘consumer’ payment instruments.
Trintech’s recent agreement with VeriSign positions NetIssuer as a competitive consumer-focused ePayment application for secure eCommerce. By addressing the fraud concerns of consumers and financial institutions, NetIssuer is positioned to enable card issuing financial institutions to offer secure on-line shopping to eCommerce shoppers.
Trintech’s marketing strategy is to target the card organizations for early adoption, validation and recommendation of the company’s infrastructure solutions, and to create compelling business solutions for the digital eCommerce companies, such as ISPs and on-line retailers. Alliances with the card organizations have given Trintech a strategic platform to target over 23,000 financial institutions worldwide that are members of MasterCard and Visa. In addition to Trintech’s existing equity and commercial partnership with Visa International, Trintech is proud to have added MasterCard as a customer and partner of Trintech.
In the quarter Trintech and MasterCard International entered into a technology and marketing alliance. Under the agreement, MasterCard has licensed PayGate NetIssuer. In addition, Trintech and MasterCard will engage in joint marketing and promotion of PayGate NetIssuer and other Trintech ePayment solutions to MasterCard members. MasterCard comprises 23,000 financial institutions globally. This alliance greatly adds to Trintech’s distribution reach in the banking industry.
Trintech also continued to expand its electronic PoS systems business in Europe. Product revenue increased 58% to $4.89 million for the third quarter from $3.10 million last year. Product revenue increased by 32% to $13.43 million for the nine month period from $10.20 million for the nine month period last year.
PayWare Partner Program Launched to Drive Global Development
Partners play a decisive role in Trintech’s strategy to expand both its channel and global market presence, and reinforce its position in the ePayments market space. In the quarter, Trintech launched the PayWare Partner Program and formed partnerships with five industry-leading technology organizations:
— Trintech’s partnership with Sun Microsystems (Nasdaq:SUNW) allows
Sun to offer its extensive customer base Trintech’s Internet
payment solutions utilizing Secure Electronic Transaction(TM)
(SET) and/or Secure Sockets Layer (SSL) protocols running on the
scalable Solaris(R) platform.
— Unisys (NYSE:UIS) and Trintech have partnered, combining
Trintech’s secure payment solutions with Unisys’ Systems
Integration experience and in-depth knowledge of financial
services, and will target both Unisys’ current customer base and
new customer groups running on its NT(TM) platform
— BrightStar Information Technology Group, Inc. (Nasdaq:BTSR),
utilizes Trintech’s PayWare ERP solution and delivers to Trintech
an implementation partner to better serve the SAP community.
— In addition to licensing Trintech’s NetIssuer solution,
MasterCard and Trintech will market and promote Trintech’s
ePayments infrastructure solutions to MasterCard members.
MasterCard comprises 23,000 financial institutions globally.
— VeriSign (Nasdaq:VRSN) has committed to working with Trintech on
integrating its digital certificates into Trintech’s NetIssuer.
Trintech’s corporate mission remains global leadership of the ePayments
industry. This quarter, Trintech took significant steps toward
achieving that mission by adding Deutsche Bank and MasterCard as customers
and partners; by launching the Payware Partner Program;
and by forging partnerships with some of the world’s leading technology
companies, such as Sun Microsystems, Unisys, Brightstar and
Founded in 1987, Trintech Group Plc. is a leading provider of secure
electronic payment infrastructure solutions for card-based
transactions in the physical world and over the Internet. The company
offers a complete range of payment software products for credit,
debit, commercial and procurement card applications, as well as being a
world leader in the deployment of payment solutions for Internet
commerce that are fully SSL and SET(TM) compliant. Trintech’s range of
scalable open systems architecture solutions for UNIX(R) and
Windows NT(TM) platforms covers consumer, merchant and financial
institution requirements for physical payments and the emerging
world of electronic commerce for both B2B and B2C applications.
Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo,
CA 94003 (Tel: 650/227-7000) and in Ireland at Trintech
Building, South County Business Park, Leopardstown, Dublin 18 (Tel:
353-1-207-4000). Trintech can be reached on the Web at
http://www.trintech.com. Investor information can be
This press release may contain “forward looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any “forward looking statements” in this press release
are subject to certain risks and uncertainties that could cause actual
results to differ materially from those stated. Factors that could cause
or contribute to such differences include Trintech’s ability to develop,
market and sell its e-commerce software, the market acceptance of
the SSL or SET standards for e-commerce payment transactions, its ability
to effectively respond to future changes in the e-payment
software market, the continued market demand for its electronic
point-of-sale systems and the performance of third parties, including
MasterCard and Visa, under technology and marketing alliances. Actual
performance may also be affected by other factors more fully
discussed in Trintech’s Form F-1 filed with the U.S. Securities and
TRINTECH GROUP PLC
CONSOLIDATED STATEMENT OF INCOME
(U.S. dollars in thousands, except share and per share data)
Three months Nine months
ended October 31, ended October 31,
1999 1998 1999 1998
Product $ 4,890 $ 3,101 $ 13,426 $ 10,200
License 2,357 678 5,693 3,062
Service 783 370 2,077 1,658
Total Revenue 8,030 4,149 21,196 14,920
Cost of revenue:
Product 3,045 2,365 8,737 7,703
License 574 210 1,946 412
Service 689 691 1,751 1,666
of Revenue 4,308 3,266 12,434 9,781
Gross margin 3,722 883 8,762 5,139
& development 2,387 825 5,975 2,485
Sales & marketing 2,184 1,522 6,102 4,205
administrative 1,763 1,232 5,006 2,992
expenses 6,335 3,579 17,083 9,682
from operations (2,613) (2,696) (8,321) (4,543)
(expense), net 252 153 391 202
(loss), net 222 (311) 484 (405)
for income taxes (2,139) (2,854) (7,446) (4,746)
income taxes — — (1) —
(loss) $ (2,139) $ (2,854) $ (7,447) $ (4,746)
per ADS $ (0.11) $ (0.18) $ (0.43) $ (0.29)
Shares used in
and diluted net
income (loss) per
and per ADS 16,218,270 19,630,635 16,135,498 17,380,894
TRINTECH GROUP PLC
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share data)
October 31, January 31,
Cash and cash equivalents $ 4,764 $ 1,691
Marketable securities 55,076 7,178
Accounts receivable, net of
allowance for doubtful accounts of
$239 and $241 respectively 9,140 4,073
Inventories 1,192 1,055
Value added taxes 100 407
Prepaid expenses and other assets 1,319 1,299
Total current assets 71,590 15,703
Property and equipment, net 2,373 2,058
Other assets — software development costs 1,563 2,500
Total assets $75,526 $20,261
LIABILITIES AND SHAREHOLDERS’ EQUITY
Bank overdraft $ — $ 411
Accounts payable 2,340 1,459
Accrued payroll and related expenses 731 583
Other accrued liabilities 3,066 1,571
Value added taxes 344 372
Warranty reserve 641 876
Deferred revenues 2,503 994
Total current liabilities 9,625 6,266
Capital lease due after
more than one year 89 142
Government grants repayable
and related loans 969 793
Series A redeemable convertible
preference shares, $0.0027 par value
3,000,0000 shares authorized;
2,960,000, nil shares issued and
outstanding at January 31, 1999
and 31 October 1999 respectively — 17,760
Series B preference shares, $0.0027 par
value nil and 10,000,000 authorized
at January 31, 1999 and October 31,
None issued and outstanding — —
Ordinary Shares, $0.0027 par value:
100,000,000 shares authorized
issued and outstanding: 16,227,445
shares at January 31, 1999 and
25,122,318 at October 31, 1999 71 47
TRINTECH GROUP PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months Nine months
ended October 31, ended October 31,
1999 1998 1999 1998
CASH FLOWS FROM
Net income (loss) $ (2,139) $ (2,854) $ (7,447) $ (4,746)
reconcile net income
(loss) to net cash
used in operating
and amortization 580 127 1,671 325
relating to warrant 20 42 60 42
Marketable Securities (141) (105) (145) (117)
Marketable Securities (160,642) (19,957) (165,648) (61,964)
Marketable Securities 107,038 19,987 117,895 51,950
Effect of changes in
exchange rates (207) 204 (582) 293
Changes in operating
assets and liabilities:
Inventories (28) 293 (213) (342)
Accounts receivable (3,613) 119 (5,448) (276)
and other assets 890 (356) (170) (152)
tax receivable (63) (318) 284 (155)
Accounts payable (226) (79) 1,005 (1,226)
Accrued payroll and
related expenses (2) 221 189 227
Deferred revenues 1,035 224 1,597 495
Value added tax payable (2) (206) 5 (318)
Warranty reserve (157) (87) (167) (114)
related loans — 131 247 171
liabilities 1,319 122 1,610 1,338
Net cash (used in)
operating activities (56,339) (2,494) (55,257) (14,570)
CASH FLOWS FROM
Purchases of property
and equipment (644) (538) (1,132) (1,023)
Sale of property
and equipment — 27 — 27
development costs — — — (2,500)
Net cash used in
investing activities (644) (511) (1,132) (3,496)
CASH FLOWS FROM
on capital leases (29) (26) (87) (57)
ordinary shares 63,150 32 63,185 2,013
Issuance of convertible
preference shares — 1,500 — 18,000
Expense of share issue (3,256) (323) (3,256) (2,003)
under bank overdraft — — (388) —
Net cash provided by
financing activities 59,865 1,183 59,454 17,953
(decrease) in cash
and cash equivalents 2,882 (1,822) 3,066 (113)
Effect of exchange
rate changes on cash
and cash equivalents 8 (11) 8 (15)
Cash and cash
beginning of period 1,874 1,976 1,691 272
Cash and cash
end of period $ 4,764 $ 143 $ 4,764 $ 143
Trintech Group and VeriSign announced Tuesday the first of two announcements that an integrated solution that will give banks and other payment card issuers a quick and easy way to issue secure virtual credit cards to their customers for use over the Internet. The integration of Trintech’s NetIssuer virtual credit card solution with VeriSign’s ‘OnSite’ managed digital certificate service will provide card issuers with the ability to bind a customer’s identity to a digital representation of a physical payment card, thereby delivering secure, authenticated, online payments. Digital certificates are electronic credentials used to identify entities on the Internet and enable secure, verifiable online transactions and communications. As banks and other card issuers look toward implementing online credit cards for use by their customers, they have a specific need to provide a solution which is simple and seamless to the millions of individuals and merchants looking to conduct secure online transactions. The Trintech-VeriSign integrated solution is a major step in transforming unauthenticated Internet transactions to a “cardholder present” status without the need for any technological understanding on the part of bank customers or merchants. The integration of digital certificates issued by banks using VeriSign’s ‘OnSite’ managed service with Trintech’s NetIssuer technology creates one of the first virtual credit cards featuring the enhanced security and “unforgeability” of digital certificates.
MasterCard will announce today the availability of new technology to enable member banks to distribute a digital representation of a physical payment card to existing and new cardholders over the Internet. Under a global agreement with Dublin, Ireland-based Trintech Inc., MasterCard member financial institutions will be able to distribute Trintech’s ‘Net Issuer’ and ‘ezCard’ consumer payment application for the Internet. Trintech’s ‘NetIssuer’ solution has been designed to meet the two major requirements of issuing banks: branding and risk management. The issuing bank’s brand is downloaded directly to the cardholder’s desktop, giving the issuer brand visibility and flexibility. As a server-based solution, NetIssuer addresses risk management by providing the bank with the opportunity to authenticate and authorize the cardholder before the transaction is conducted. This gives the issuer enhanced control of risk management every time the consumer uses their digital card. Issuers also control the appearance of the ezCard icon, which is fully issuer-branded and uses a drag-and-drop process to automatically fill a merchant website’s purchasing form and initiate a transaction for ECML and profiled merchants. Trintech software also gives issuers total control of promotional offers and cross-selling messages that can appear each time the program is launched or used. Future versions of Trintech’s payment product will allow issuers to conduct highly targeted, real-time marketing campaigns. Additional security is provided by SSL encryption and support for SET security will also be made available in the future.
Trintech Group PLC, a leading provider of secure electronic payment infrastructure solutions, announced Friday the launch of its PayWare Partner Program. The program is designed to maximize the synergies between Trintech and other e-commerce solution providers to better serve Trintech’s growing customer base worldwide.
Through the PayWare Partner Program, Trintech will expand both its channel and global market presence, reinforcing Trintech’s leadership in the electronic payments market space. The program includes extensive training and education, marketing and sales engagements, web based channel support and training, seminars/events and co-branding strategies. This partner initiative is being launched in conjunction with Trintech’s strategic alliance program, where Trintech has partnerships with industry leaders such as SAP, Compaq and Microsoft and to provide innovative e-commerce solutions. Most recent additions to Trintech’s strategic alliance program have included BrightStar, Sun Microsystems and Unisys Corporation.
Trintech aims to develop a global network of strategic partners by targeting system integrators, consultants, distributors, value added resellers and solution developers. The partner program is divided into two types of partners. The Business Partner Program targets consultants, resellers, distributors and system integrators who, with Trintech’s PayWare technology, can payment enable eMerchants, ISPs, CSPs and dot.com corporations. The Enterprise Partner Program has been developed for global partners capable of implementing large scale e-payment infrastructure solutions, such as national payment implementations, end-to-end payment solutions for financial institutions or large ERP payment solutions.
“We consider partnerships one of the most important elements of our sales and distribution strategy and core to Trintech’s global development,” says John McGuire, CEO of Trintech. “We work closely with our partners in every region to ensure our secure e-payment solutions are sold and implemented seamlessly in all our customer sites. Through partnerships, we can also share best practices and bring better payment solutions to the marketplace.”
Trintech has successfully recruited both Business and Enterprise PayWare Partners spanning the US, Latin America, Europe, Middle East and Africa. Trintech has also established reseller relationships with EDI Hellas (Greece), Humantech (Argentina), MDSL (Lebanon), Prism (South Africa), Scopus (Brazil), KFKI (Hungary), T3 (Egypt), Probil (Turkey) and Techmarketing (Colombia).
Each PayWare Partner is profiled on the new partner section of Trintech’s corporate website (). This site will also serve as a portal to the planned PayWare Partner Resource site – a secure website for our partners, giving them access to the marketing and technical resources necessary to market and deploy Trintech payment solutions.
Founded in 1987, Trintech Group Plc. is a leading provider of secure electronic payment solutions for card-based transactions in the physical world and over the Internet. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL and SET(TM) compliant. Trintech’s range of scalable open systems architecture solutions for UNIX(R) and Windows NT(TM) platforms covers consumer, merchant and financial institution requirements for physical payments and the emerging world of electronic commerce. Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94003 (Tel: 650-227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: 353-1-207-4000). Trintech can be reached on the Web at [http://www.trintech.com].
The issuance of Gracechurch Card Funding No. 1 PLC’s US$1 billion notes will mark the first securitization of consumer credit cards by a U.K clearing bank. The issuance by Barclays Bank PLC, through its business unit, Barclaycard ranks as one of the largest European credit card backed securitizations. Analysts believe Friday’s announcement could trigger further market activity in the U.K. credit card securitization sector. Standard & Poor’s and Duff & Phelps both assigned a preliminary rating of triple-A for the Class A notes.
Baltimore Technologies and Gemplus announced both the integration of their technologies and a sales and marketing agreement. Baltimore has incorporated Gemplus ‘GemSAFE’ smart cards into its PKI solutions portfolio, offering customers the choice of using this integrated technology for added security and manageability in a variety of e-commerce applications. Baltimore products such as ‘UniCERT’, ‘MailSecure’ and ‘PKI-Plus’ will support Gemplus ‘GemSAFE’ smart cards in future versions.
Europe’s largest independent ATM network, Euronet, has quietly penetrated the U.K. market. The company’s success throughout Europe has spawned at least six more independent competitors. In the U.K. Euronet began installing ATMs ten months ago in cooperation with the British bank Woolwich plc. Since then, Euronet has installed over 130 ATMs throughout the country. The firm confirmed this morning it has signed an agreement with a second U.K. bank sponsor, Northern Rock, and has begun installing ATMs under the Northern Rock name as well. The U.K. is a key part of Euronet’s pan-European network because of the already high usage of ATMs in Britain and the introduction of surcharging for cash withdrawals. Euronet’s network is comprised of 1,700 ATMs in 7 countries, including Hungary, Poland, Germany, Croatia, the Czech Republic, France and the U.K.
First Data’s U.K. subsidiary, FDR Limited, has signed a long-term contract with Egg, Britain’s first Internet bank. FDRL will provide several new Internet card-based products, including Egg’s new credit card launched in September. Egg, a direct division of Prudential-Banking Plc, launched in October 1998, offers customers a range of products including deposit accounts, mortgages and personal loans. Since its launch, Egg has amassed 600,000 customers and 6.7 billion pounds in funds under management. Egg ‘s Internet credit card offers a 9.9% APR and up to 2% rebates on online purchases.
HSBC slipped in the third quarter according to data gathered by CardData. Receivables decreased from $1,150,824,000 for 2Q/99 to $1,113,558,000 for 3Q/99. Gross accounts also contracted from 785,326 accounts for 2Q/99 to 741,577 for 3Q/99. Actives also declined from 425,981 for 2Q/99 to 397,148 for 3Q/99. Cards-in-force also slipped by 50,000 from 953,060 cards for 2Q/99 to 898,637 for 3Q/99. For more details visit CardData ([www.carddata.com]).
American Express outspent VISA in advertising during the first half of this year according to data released Tuesday by Competitive Media Reporting. Industrywide, ad spending was up 6.9% for the first half of 1999 as compared to 10.6% in 1998, the increase was lower than any in the last five years. During the first six months of 1999, American Express spent $148.6 million on advertising, a 6.7% increase over the same period last year. However ad spending for the American Express card actually dropped from $83.0 million last year to $80.3 million this year. VISA USA shelled out $119.7 million this year, a 6.5% increase over 1998. VISA’s spending for credit cards dropped 16.7% over the past year, from $63.6 million to $53.0 million, according to CMR. Meanwhile, Morgan Stanley Dean Witter spent $116.9 million so far this year on ads, about double what it spent last year. Of the $116.9 million MSDW spent, $34.1 million was advertising for the Discover brokerage. CMR did not break out expenditures for MSDW’s Discover card product.