BECU and Patelco to Offer Cashedge POPmoney

CashEdge Intelligent Money Movement services announced BECU and Patelco
credit unions are now among the financial institutions to add the
“POPmoney” P2P service to their customer offerings by the end of 2009.
“POPmoney” is unique in that it allows person-to-person payments (P2P)
service through email and mobile phone services for customers of
financial institutions allowing customers to send an
electronic payment from within the online or mobile banking site.
“POPmoney” includes an SMS text messaging application, downloadable
mobile applications and processed nearly $50 billion in online funds
transfers for bank customers throughout 2008.

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Upromise Members Get Access to Vesdia’s Network

Upromise has chosen Vesdia Corporation multi-channel merchant network
and shopping incentive services as its new preferred provider of
brick-and-mortar and catalog merchant services. For Upromise, a free
online service that helps its members earn money for college, Vesdia
will be providing more ways to save through its consistently expanding
network of national, regional and local brick-and-mortar merchants. The
partnership will also offer Upromise members ways to earn money for
their college savings or pay down eligible student loans when shopping
at various retailers. Members automatically earn by using their Upromise
credit card or other registered payments cards at; 1 800 FLOWERS;
Ballard Designs; Gaiam; Golfsmith; Hammacher Schlemmer; Hearthsong; Jos.
A. Bank; Lobster Gram; Magic Cabin Dolls; Plow and Hearth; Sally Beauty;
and Sunglass Hut.

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Coin Counting Pumps Coinstar’s Q3 Results

Coinstar posted a 45.5% jump in third quarter revenue to $296.0
million. Net income for the quarter was $41.4 million, compared with net
income of $4.5 million in the third quarter of 2008. DVD rentals and the
coin-counting businesses drove the quarter. During the third quarter
Coinstar announced the closing of the sale of its entertainment services
business to CO-based National Entertainment Network; signed a deal with
nFinanSe to distribute reloadable cards for the “Pay as You Go”
Solution; inked a contract with Stored Value Solutions to provide
MasterCard prepaid gift cards to Coinstar E-Payment Services; and Rixty
launched its new cash-based payment system via Coinstar kiosks. The
Company also announced that CFO John Harvey has resigned, effective
November 9th. For complete details on Coinstar’s latest performance
visit CardData (www.carddata.com). (CF Library 7/8/09; 8/13/09; 9/3/09;
9/10/09; 10/2/09)

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Credit Union Credit Card Website is Launched

Card Analysis Solutions are inviting Credit Unions to register their
card programs for free on a new consumer website to join the nationwide
movement against unfair bank-card practices, thus gaining exposure and
connecting with their consumers. As an independent advocacy effort
dedicated to pointing consumers to credit unions, the Card Analysis
Solutions site will offer a ranking system to identify credit unions
with the best card programs as assessed by Card Analysis Solutions. All
credit unions are eligible for registry listing and need only fill out
an online registration form, for which there is no fee. The consumer
site goes live on December 1 to offer visitors an easy method to locate
credit union card programs that have been approved through the registry
effort.

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CU*Answers Picks Firethorn’s Mobile Banking

CU*Answers has selected Firethorn’s Mobile Banking application and SMS
service for its more than 165 credit unions, which represent more than
1.5 million members and has over $10 billion in credit union assets.
With these developments, CU*Answers is set to offer Firethorn’s mobile
banking application and SMS service to its credit unions for deployment
by 2Q/10, allowing members to check their balances, pay their bills,
transfer funds and receive offers from their mobile phones. Firethorn’s
will also provide CU*Answers with SMS capabilities, allowing members to
receive account alerts or provider messages via SMS, or initiate
requests for transaction history or balance information by sending an
SMS message.

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Visa Holds Up the Best in Q2 GDV Contraction

Payment card gross dollar volume in the U.S. declined 7.2% at mid-year.
Among the four major card networks Visa fared the best with only a 4%
year-over-year decline, compared to a 16% decline for American Express.
MasterCard was down 10% at mid-year while Discover was off by 5%.
Combined, the four major card networks posted $858 billion in second
quarter GDV, compared to $920 billion for 2Q/08. Visa had $505 billion
in Q2 GDV while MasterCard posted $245 billion, American Express $84.1
billion and Discover with $24.3 billion. For the third quarter
MasterCard reported an 8% decline to $247 billion. American Express was
down 13% to $85.2 billion and Discover was down 16% to $24.0 billion
for the third quarter. Visa will report third quarter data at the end of
the year. Discover’s third quarter ended August 31st. For complete
details on U.S. payment card performance visit CardData (www.carddata.com).

GROSS DOLLAR VOLUME
2Q/08 2Q/09
Visa $526 billion $505 billion
MC $268 billion $245 billion
AmEx $100 billion $ 84 billion
Disc $ 26 billion $ 24 billion
Source: CardData (www.carddata.com)

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Heartland Wants Merchants to Contact VeriFone

VeriFone says Heartland Payment Systems has filed a court briefing in the Superior
Court of New Jersey saying it now expects its merchants using e-payment provider VeriFone systems to contact VeriFone
directly for support. Heartland merchants are contacting VeriFone for free
continuous support. VeriFone has informed Heartland that it will cease
support of VeriFone systems connected to the Heartland network at end of
day, December 31, 2009. VeriFone estimates that approximately 75% of Heartland merchants depend
on VeriFone for their payment processing technology.

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Card Issuers Look Beyond Co-Branding in 2010

Payment card issuers are exploring growth opportunities in relatively
untapped segments and are finding inspiration in emerging global trends,
namely for healthcare-related cards, chain supermarkets and drug stores.
The millions of consumers enrolled in health plans, the affluent
consumer and the under-banked represent a huge potential new audience
for co-branded and affinity cards as frequent-usage, benefits-oriented
card holders. This, according to the Packaged Facts “Co-Branded and
Affinity Credit Cards in the U.S., 3rd Edition” report, also shows
co-brand programs are generally poised to take advantage of affluent
consumers’ interest in being engaged in a rewards and loyalty value
proposition relevant to their lifestyle while the under-banked and the
unbanked remain a greatly underserved group. Packaged Facts projects the
CAGR on transaction values between 2009 and 2012 will approach 5%.

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GEMALTO ECO

Gemalto digital security is expanding its eco-friendly offering to
banking, telecom and government customers worldwide to reduce its
overall environmental impact. In doing so, Gemalto will be providing
chlorine-free manufacturing materials, using non-chlorine polymers in
its Polyethylene Terephthalate Glycol (PETG) based card products; ABS
molded cards; PC TWIN Reader smart card reader; and small form factor
cards. The company also will be providing Hazardous substance reduction
and promote renewable and recycled material with its Polylactic acid
(PLA) card using material derived from corn, sugarcane or potato starch;
paper-based materials for short-term use, such as scratch cards;
“ECOPack” Eco friendly packaging made of 100% recyclable materials for
Gemalto fulfillment services and waste material from manufacturing
process being recycled and used in the production of sailboat masts.
Additionally, Gemalto is certified with “ISO 14001:2004” certification
and the “KEMA” certification for power consumption.

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UK Credit Card ABS Sept Charge-Offs Hit 11.4%

Fitch Ratings says in its forthcoming quarterly Credit Card Movers & Shakers (UK) report, that the performance of the UK credit card master trusts continued to deteriorate during Q309, reflecting the negative impact of the current recession on cardholders’ ability to meet payments. The agency retains its negative outlook for the sector, in light of recent transaction performance and its expectations for UK economic performance.

The Fitch Charge-Off Index reported its eighth consecutive monthly increase, reaching a new high of 11.4% in September 2009. The elevated level of charge-offs was driven most notably by MBNA’s (‘A+’/Stable/’F1+’) CARDS I and CARDS II trusts. In contrast, the Fitch Delinquency Index recorded its fourth consecutive monthly decrease. At 4.8% for September 2009, delinquency levels were in line with those last seen at the start of 2009. The gradual improvement in delinquencies is a potential positive factor; however, Fitch remains concerned by the ongoing impact of the current economic environment, and does not expect to see improved charge-off performance in the near term.

The Fitch Monthly Payment Rate Index and Fitch Yield Index finished the quarter positively, increasing 0.6% and 0.8%, respectively, relative to June 2009. However, the increased charge-offs caused the Fitch Excess Spread Index to fall by 0.3%.

The high charge-off levels are consistent with personal insolvency levels. Recent data shows that, for Q209, personal insolvencies in England and Wales totalled 33,073, an increase of 7,290 over Q208. The 2009 data included 1,978 insolvencies under the new Debt Relief Order scheme, introduced in April 2009.

A copy of the latest quarterly report, entitled ‘Credit Card Movers & Shakers (UK) Q3 2009 Performance’, will be available early next week, on the agency’s website, www.fitchratings.com.

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MYMAX NFC

INSIDE Contactless advanced, open-standard contactless and NFC chip
technologies has partnered with TWINLINX NFC technology platforms and
applications to collaborate payment solutions. In doing so, INSIDE will
integrate its secure components in the TWINLINX “MyMax” NFC sticker to
gain type approval from major bank card brands while supporting
TWINLINX’s initial go-to-market initiatives as part of INSIDE’s
initiative to jumpstart the mobile payments market in 2010. The “MyMax”
NFC sticker, a thin electronic sticker designed to upgrade existing and
future Bluetooth phones with NFC functionality for payment, transport,
loyalty, access control and smart posters, is incorporating the
“MicroPass” payment platform for quick NFC payment and communication
capability. Approved by all major payment brands, “MicroPass” is the
most widely adopted contactless payment platform.

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