Mobile payments made at the physical point of sale (POS) in Canada could reach US$13 billion by 2017. However, there are near-term challenges to widespread adoption of mobile banking and E-Wallet/P2P payments.
TD Bank Group, Aimia Inc.and Canadian Imperial Bank of Commerce today completed the previously announced transaction under which TD acquired approximately 50% of the existing Aeroplan credit card portfolio from CIBC. The portion of CIBC’s Aeroplan credit card portfolio acquired by TD primarily includes accounts held by customers who do not have an existing retail banking relationship with CIBC. Also as previously announced, TD will become the primary issuer of Aeroplan Visa credit cards on January 1, 2014.
More than half of consumers say they are committed to their bank and nearly two-thirds feel valued by them. Additionally, 57% attribute helpful staff and personal service to feeling valued and the majority of consumers cite positive customer service experiences as a principal reason for their commitment. Also, more than 40 percent of those polled say their bank demonstrates a commitment to them through no or low minimum balance requirements. These findings, according to TD Bank research, also show 48% say bank products and services are more valuable than telecommunications and less than 50% would actually take the step to close an account associated with the same fees. Other findings indicate bank show commitment with no monthly checking fees according to 65%; 65% say easy online banking; 64% say good customer service; 57% say no statement fees; and 53% say convenient bank locations.
Branch MacMaster and Camp Fiorante Matthews have filed a proposed national class action in the British Columbia Supreme Court against Visa, MasterCard, and several leading banks, alleging the credit card giants and banks have engaged in multi-billion dollar price fixing conspiracies. The conspiracies were allegedly to increase or maintain the fees paid by merchants on every credit card transaction. The filer claims, for example, when a customer pays with a credit card, Visa and MasterCard take a percentage fee, along with the card-issuing bank and the company that processes the payment. That percentage allegedly varied depending on what kind of card is used, while basic cards charge a smaller percentage and premium credit cards that offer points and other rewards cost merchants a much higher fee.
TD Bank is introducing its TD “Payment Plus” Credit Card to help customers who carry a balance manage their money by offering rewards for responsible credit card payment behavior. The card gives users the opportunity to receive a monthly credit provided they make a payment of at least 5% of their outstanding balance by the payment due date with a standard interest rate. TD Bank “Payment Plus” helps users become more responsible for interest charges and debt obligations; offers the flexibility to choose to make a larger payment and get an interest-charge savings without getting locked into payment terms that may not be right for their budget; and rewards them for paying down balances. The new card also offers automatic rewards if they make a payment larger than the minimum balance.
With 69% of CFOs most concerned with the challenge of managing cash flow, only 7% plan to slash expenses in 2011. Meanwhile, 39% expect their capital investments to increase next year, mostly on new technology, and 41% will focus on proper capital allocation and cash flow management. Additional findings, according to a recent TD Bank survey of small and medium sized companies, shows 78% projecting the recovery to take up two years to materialize, with the surest signs of a lasting upturn accredited to falling unemployment rates for 46%; 21% depending on sustained growth in their own organization’s sales; and 9% looking to an influx of new customers as an indication. Also, 45% of financial executives have seen their sales increase in the past year, of which 25% say by 10% or more; 58% project their sales to increase in the next year, of which 25% say by 10% or more; 46% believe the most likely constraints on capital investments will be cash flow; 18% blame unsure levels of funding from clients and government; 13% say the political climate is strangling cash flow.
Canadian-based TD Bank Financial Group completed its acquisition of the FL-based South Financial Group. The FL Bank’s operations have already been converted
to the TD platform. With this, TD will introduce its brand, retail banking and regional banking model across South Financial’s existing footprint. TD lending
has grown in the U.S. by 20% since 2007. TD has grown to one of the 15 largest commercial banks in the United States, providing customers with a full range
of financial products and services at about 1,300 convenient locations from Maine to Florida.
TD Bank posted 2Q/10 net income of $1.2 billion, compared with the year ago figure of $912 million. Adjusted net income held steady at $1.3 billion, flat year-over-year, while total revenue was $1.2 billion, compared to $1.1 billion last quarter and $1billion the year ago quarter. Additionally, Non-interest expenses totaled $688million, compared to $659million last quarter and $594 the year ago quarter; net income posted $271million, up from the $241million last quarter and the $151million seen in the corresponding period last year; and net income totaled $276million, compared with $241million last quarter and $213million the year prior.
TD Bank posted 2Q/10 net income of $1.2 billion, compared with the year
ago figure of $912 million. Adjusted net income held steady at $1.3
billion, flat year-over-year, while total revenue was $1.2 billion,
compared to $1.1 billion last quarter and $1billion the year ago
quarter. Additionally, Non-interest expenses totaled $688million,
compared to $659million last quarter and $594 the year ago quarter; net
income posted $271million, up from the $241million last quarter and the
$151million seen in the corresponding period last year; and net income
totaled $276million, compared with $241million last quarter and
$213million the year prior.
According to the TD Canada Trust Fraud Prevention Month Poll, 40% of Canadians surveyed say they are ‘very’ or ‘extremely’ concerned about becoming a victim of fraud in the future and one-third of Canadians feel they have been a victim of debit card or credit card fraud in the past.
The use of debit and credit cards continues to rise in Canada. Currently there are 34 million debit cards in circulation across the country. Between 2008 and 2009 the number of debit transactions in Canada rose from 3.7 billion to 3.8 billion annually and the value of debit transactions rose from $168 billion to $171 billion. There were approximately 69 million credit cards in circulation in Canada in 2009, compared with 68 million in 2008.
Many Canadians are admitting delaying shopping because they are too
busy, say 38% of consumers, while 11% are just plain lazy and 6% are
hoping to avoid holiday shopping altogether. Other reasons, according to
the TD “First Class Travel” Visa Holiday Shopping survey, show 36% do
not know what to buy; 15% are procrastinating; 14% are waiting on last
minute deals; and 13% are just too overwhelmed by the entire holiday
shopping experience. In response, TD has recommended holiday consumers
shop online; track spending; buy gift cards; be practical; and donate.
Only 47% will do any shopping online this holiday season; 3% plan to do
more than half of their shopping online, and none of those polled plan
to avoid the stores entirely while 61% of Albertans plan to shop online,
34% of which plan to use the web for more than 10% of their holiday gift
buying; and only 32% of Quebecers are planning to shop online.
TD Canada Trust is giving Canadians the chance to win the ultimate
vacation, valued at $35,000, in its “Trip of Your Dreams” Contest.
Canadians approved for a TD / AAdvantage Platinum Visa Card from TD
Canada Trust between September 28 and October 30 are automatically
entered in the contest. With a total of 94 prize packages available,
each prize package consists of 800,000 AAdvantage miles approximately
valued at USD$20,000; An CDN$11,000 Travel Certificate from Carlson
Marketing Canada; and CDN$4,000 in spending money. The TD / AAdvantage
Platinum Visa Card provides frequent travelers a rewards program with
limited restrictions and great protection. The Toronto-Dominion Bank and
its subsidiaries are collectively known as TD Bank Financial Group
serves approximately 17 million customers with nearly CDN$545 billion in