MasterCard-Heartland Settlement to Provide Issuers $41.4m

MasterCard Worldwide has reached a settlement with Heartland Payment Systems (Heartland) to resolve claims by MasterCard and its issuers in connection with Heartland’s previously announced data security breach. The agreement calls for Heartland to fund up to $41.4 million of “alternative recovery offers” to be made to eligible MasterCard card issuers to settle their claims for operational costs and fraud losses alleged to have been incurred by them as a result of the breach. Under the terms of the settlement, MasterCard card issuers that filed timely claims for reimbursement of operational expenses or to recover fraud losses on certain accounts processed by Heartland during 2008 will be eligible to receive a specified dollar payment with receipt expected during the third calendar quarter of 2010, if they choose to accept their offers.

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Kensington Leasing to Acquire Allianex Prepaid Cards

Kensington Leasing has entered into an
agreement to acquire Allianex. Allianex is a development stage
company engaged in the business of producing, marketing and distributing
retail prepaid cards for the purchase of technology support
and security services for electronic devices. Allianex’s clients and
markets include top retail store aggregators, direct selling companies,
affinity groups, agents, and national associations. Developed under
agreements with the largest retail store prepaid and gift card
aggregators, the full range of Allianex support products and services
are available at merchandising displays at stores ranging from small
“mom and pop” shops to the nation’s largest “big box” stores.
Kensington, through a newly formed wholly owned subsidiary, has agreed
to purchase substantially all of the assets of Allianex for $75,000 in
cash, 575,000 shares of Kensington common stock and the assumption of
Allianex’s trade payables. In addition, Kensington agreed to pay
Allianex, in a combination of cash and Kensington common stock, 25% of
the EBITDA of the ongoing business for three years after the closing of
the transaction. The closing of the transaction is subject to a number
of conditions, and is anticipated to occur in late May or early June.

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Target Corporation Announces First Quarter Earnings

Target reported its 1Q/10 credit card segment profit increased 188% to $111 million from $39 million a year ago. With this, bad debt expense declined 3% from $296 million in 1Q/09 to $197 million. Card segement average receivables decreased 13.2% to $7.5 billion in 2010 from $8.7 billion in 2009 while average receivables directly funded by Target declined 26% to $2.4 billion from $3.2 billion in 2009. Target’s overall net earnings were $671 million for the quarter ended May 1, 2010, compared with $522 million in the quarter ended May 2, 2009. Retail sales increased 5.5% to $15.2 billion in 2010 from $14.4 billion in 2009, due to a 2.8 percent increase in comparable-store sales and the contribution from new stores. Retail segment earnings before interest expense and income taxes (EBIT) were $1,108 million in the first quarter of 2010, an increase of 15.2 percent from $962 million in 2009.

TARGET CARD LOAN HISTORICAL
3Q/08: $8.7 billion
4Q/08: $8.8 billion
1Q/09: $8.5 billion
2Q/09: $8.3 billion
3Q/09: $8.0 billion
4Q/09: $7.8 billion
1Q/10: $7.5 billion
Source: CardData (www.carddata.com)

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Sybase Rolls Out Mobility Platform

Enterprise software solution provider Sybase has introduced the “Sybase
Mobility Platform.”
The Sybase Mobility Platform is comprised of the most comprehensive new
and industry-proven solutions, including: Sybase Mobile Servers
including Sybase Unwired Platform (SUP) development, Sybase Afaria
Device Management Suite, Sybase iAnywhere Mobile Office and SQL
Anywhere; Mobile Applications, including Sybase Mobile Sales for SAP
CRM, Sybase Mobile Workflow for SAP Business Suite and Sybase mBanking
365; and Sybase Mobile Services – mCommerce Services: for both developed
and emerging markets, Enterprise Services: flexible, high-performance
applications and services for mobile marketing and mobile CRM, Operator
Services: including unrivalled global reach to 900 mobile operators.
Sybase has a long and proven history in the mobility space, and today is
a recognized global leader in mobility. Sybase was first to provide
mobile databases, pioneer mobile device management, first to introduce
inter-operator SMS interoperability and launch the only end-to-end
global mobile commerce solution with thousands of enterprise mobility
customers and servers and infrastructure processing more than 1.4
billion messages globally across the most extensive, private,
operator-grade network.

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Credit Supply Fall Short of Consumer Demand

Bankers are expecting consumers to pursue more new credit and spend more against existing credit, while 92% don’t expect to see an easing of lending standards in this quarter. Also 95% of bankers expect interest rates to rise and 83% see average credit card limits to drop. This, according to a survey conducted on FICO’s behalf by the Professional Risk Managers’ International Association (PRMIA) of the 127 bank risk professionals in March, also showed 66% expect their institutions to increase the priority placed on risk management and 34% expect priority given to risk management to remain at its current level. Moreover, 85% expect the CARD Act to result in higher interest rates for consumers and lower credit limits for new accounts and to result in similar or lower acceptance rates for credit applications.

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Wow Bao Partners With Mocapay For Mobile Coupons

Mobile loyalty platform provider Mocapay has partnered with
Chicago-based QSR Wow Bao to enable mobile-enable customer marketing and
gift programs starting with mobile marketing, mobile coupons, and mobile
“comp” cards. By leveraging the Mocapay mobile platform, Wow Bao
customers will receive special mobile offers and
participate in mobile gifting. Wow Bao will have the ability to
customize mobile marketing campaigns by specific store location,
creating targeted and personalized messages delivered directly to its
customers. Mocapay is a Software-as-a-Service (SaaS) mobile
platform with an embedded marketing engine. Mocapay’s “dynamic cryptogram”
architecture ensures mpayments are executed simply and securely with a
one-time use and perishable authorization code. Mocapay’s platform will
also enable Wow Bao to retain the investment made in its point-of-sale
equipment since no new hardware is required.

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NCO Group Posts 1Q/10 Revenue of $413m

NCO Group outsourcing services announced its 1Q/10 revenues of $413.1 million, a net loss of $15.3 million, and Adjusted EBITDA of $39.0 million. The Adjusted EBITDA excludes the impact of a $1.4 million benefit from the recovery of portfolio allowances, and $1.4 million of restructuring charges. This compares to revenues of $402.1 million, a net loss attributable to NCO of $2.1 million, and Adjusted EBITDA of $51.1 million for the quarter ended March 31, 2009. The Adjusted EBITDA for 2009 excludes a non-cash allowance for impairment of $33,000 and $443,000 of restructuring charges. NCO is organized into Accounts Receivable Management (“ARM”), Customer Relationship Management (“CRM”) and Portfolio Management (“PM”).

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Retail Anywhere Adds JDS Solutions As POS Reseller

POS software developer Retail Anywhere has partnered with JDS Solutions
as a reseller of Retail Anywhere Point of Sale Software. Under the new partnership, JDS Solutions will sell, implement, and
provide support services for the newly integrated retail management
system. The integrated solution provides a complete end-to-end system
with real-time data replication between stores, corporate systems,
multi-channel environments and additional third party applications.
Since it’s unveiling a few months ago, several retailers have selected
the integrated retail management system. Retailers selecting the new
system include; A.S. Cooper& Sons with 11 gift and specialty stores
located throughout Bermuda, Bare Feet Shoes with 12 locations on the
east coast and Yoga Natural Foods located in New York City. The integration
of “Retail Anywhere POS” with “JDS WinRetail Enterprise” provides a complete
retail management system for midsize specialty retailers.

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NEOVIA Financial Board Appoints CFO

Keith Butcher has been appointed to the NEOVIA Financial alternative payments business Board as CFO. Bringing with him extensive experience in the software and technology sectors , Butcher was previously Finance Director of a number of AIM listed businesses including Datacash Group online payments processor, where he was Finance Director for almost 5 years during its period of rapid growth. NEOVIA Financial alternative payments is trusted by consumers and businesses in over 170 countries to move and manage billions of dollars each year, . Through the NEOVIA Payment Network, merchants use the NETBANX® processing service to simplify how they accept and settle card, direct-from-bank, and cash payments, and the NETELLER® payment account to increase margins, capture new customers and increase customer lifetime values.

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Mobile Marketing CAGR at Least 40% to 2015

In 2009, well under half a billion dollars were spent on mobile marketing and advertising. Over the five years to the end of 2015, that expenditure will grow at a compound annual rate of more than 40%, according to estimates from ABI Research. This robust growth will be fostered by mobile marketing being relatively inexpensive, offering highly targeted and rich mobile content. Mobile applications are also “eyeball magnets” that offer a fast-track to potential customers. More than three billion apps have been downloaded from Apple’s store alone. While not all mobile apps are ad-supported, some are, and some brands are creating their own apps.

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Payvment Secures $1.5 Million in Funding

Facebook e-commerce solution provider Payvment has secured a $1.5
million Series A funding round led by BlueRun Ventures venture capital
firm with a legacy in mobile and Internet infrastructure and application
investments. BlueRun invests in the first round of financing and works
closely with entrepreneurs to develop and execute their strategies.
Select BlueRun investments include PayPal, Slide, WiderThan, Wavemarket,
Fwix and Chomp. Payvment provides a free Facebook application that
allows businesses, organizations and individuals to set up virtual
storefronts and begin selling to 400 million Facebook users within five
minutes. Since the company launched in November, over 20,000 businesses
and individuals have started to sell goods on Facebook and over 500,000
Facebook users have shopped for products in stores using the Payvment
app. Payvment e-commerce features on Facebook include “Universal shopping
cart,” increasing the chance of completing sales.

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