Metavante Release “Account Open”

Metavante has released “Account Open” technology to enable Consumer eBanking clients’ banking customers to activate new deposit accounts in real-time. “Account Open” provides financial institutions
using CeB technology with the ability to directly market, sell and
fulfill additional deposit accounts to customers who regularly use their
online banking platform. Once existing customers complete the CeB secure
sign on process, they can open additional deposit accounts and fund them
through online transfers from a bank or held-away account. The full
process can be completed in less than 30 seconds. Deposit products
supported include checking, savings, Money Market and Certificate of
Deposit accounts. The Account Open technology is part of a set of
integrated deposit gathering capabilities offered through Metavante’s
eBanking Solutions that also include online account creation services
and multi-channel servicing applications.

Details

Gemalto Joins the “McAfee Security Innovation Alliance”

Digital security provider Gemalto announced that it has joined the McAfee Security
Innovation Alliance partner program. The McAfee Security Innovation Alliance is the foundation of a
technology ecosystem designed to assemble the world’s leading security
innovations. Under the McAfee SIA
program, Gemalto has integrated its “Protiva Enterprise Authentication
Solutions” with “McAfee Endpoint Encryption” software for pre-boot
authentication. The software includes full disk encryption to
ensure security of information stored on desktops, laptops, tablets and
other mobile devices. Security
administrators can set a system to prompt for authentication before it
even starts booting to protect against possible attacks on the operating
system, or just before it is finished booting. Users must insert their
Gemalto digital security device and enter a passphrase or PIN before
being authorized to access the system data.

Details

Rewards Network Reported Net Revenues of $16M

Restaurant loyalty program provider Rewards Network reported net revenues of $16 million, a decrease of 15% from the first quarter of 2008. Rewards Network reported total sales of $54.0 million. During the first quarter of 2009, the Company generated $7.7 million of
cash from operations, primarily because it continued to mitigate risk
and preserve liquidity by purchasing fewer dining credits from fewer
merchants. As a result, the net dining credits usage period declined to
6.6 months for the first quarter of 2009, as compared to 9.4 months for
the same period in the prior year. The net dining credits portfolio was
$63.0 million for the first quarter of 2009, as compared to $94.8
million for the same period in the prior year. The Company ended the
first quarter with $16.2 million of cash on hand, debt free, and without
drawing on its revolving line of credit. The
Board of Directors has authorized the repurchase of up to $5.0 million
of the Company’s common stock.

Details

AmEx U.S. Card Charge-Offs Soar to 8.5%

American Express Company reported a 58% drop for first-quarter income from continuing operations of $443 million, down from $1.0 billion a year ago. Net income totaled $437 million for the quarter, down 56% from a year ago. On a per-share basis, net income was $0.31, down 64%
from $0.85 a year ago. U.S. Card Services reported a first-quarter loss of $25 million, compared to a net income of $523 million a year ago.
Total revenues net of interest expense for the first quarter decreased
17% to $3.1 billion, driven by reduced cardmember spending and
lower securitization income, net. Provisions for losses totaled $1.4 billion, an increase of 57% or $502 million from a year ago. The increase reflected higher write-offs
and past due loans. International Card Services reported first-quarter net income of $39 million, compared to $133 million a year ago. On a managed basis(4), the net loan write-off rate
was 8.5%, up from 6.7% in the fourth quarter and 4.3% a year ago. Owned
net write-offs were 8.5% in the quarter, up from 7.0% in the fourth
quarter and 4.5% a year ago. Total revenues net of interest expense decreased 14% to $1.0 billion, primarily driven by reduced cardmember spending. Provisions for losses totaled $335 million, an increase of 46% or $106 million from a year ago. The increase reflected higher write-offs and past due loans.

American Express U.S. Card Metrics
Charge-Offs Delinquency
1Q/08: 5.3% 3.7%
2Q/08: 5.3% 3.3%
3Q/08: 5.9% 3.9%
4Q/08: 6.7% 4.7%
1Q/09: 8.5% 5.1%
Source: CardData (www.carddata.com)

Details

Michael Dignen Joins US Dataworks

Enterprise payment solution provider US Dataworks has tapped Michael J.
Dignen, previously with Metavante, as SVP, Sales and Business
Development. Dignen will be responsible for advancing the company’s sales and
visibility in new and existing markets, leveraging its leadership in
enterprise payments solutions. At Metavante Corporation, he led the sales efforts of its VICOR business unit, a part of Metavante
Image Solutions. During his tenure at VICOR, Dignen was instrumental
in driving significant annual revenue growth and establishing VICOR as
the leader in solutions for optimized complex payments processing. Prior
to his time at VICOR, Mr. Dignen held various senior management
positions for CoreStates Financial Corporation.

Details

U.S. Bank has Issued its 30 millionth Visa Gift Card

U.S. Bank has issued its 30 millionth Visa gift card and is the nation’s number one issuer of Visa prepaid cards. The
company provides prepaid solutions for teens with the U.S. Bank “Visa
Buxx” Card, for travelers with the U.S. Bank Visa “TravelMoney” Card, for gift-givers with the U.S. Bank Visa Gift Card, and for businesses and government with the U.S. Bank “AccelaPay” Visa Card and the U.S. Bank “ReliaCard”Visa. Funds are easy to access while safely stored in a card account. Customers can purchase U.S. Bank
Visa Gift Cards at any branch location, or online at www.usbank.com.
U.S. Bank issued gift cards are also available at many of the nation’s
leading malls.

Details

TSYS & Navy FCU Renew Their Agreement

TSYS provides core processing services for Navy Federal’s Visa and
MasterCard credit card product, supporting more than 850,000 active credit card accounts. Services provided under the agreement
include statement processing, card embossing, accounting and settlement,
fraud prevention services, member service and collection operating
systems, correspondence and risk mitigation. TSYS Loyalty provides
tailored marketing and program design, analytics, rewards processing,
redemption and fulfillment solutions that serve the unique needs of Navy
Federal’s members participating in “nRewards”, “goRewards” and “Flagship” credit card programs. The Navy Federal Credit Union is the world’s largest natural person credit union with $39 billion in assets, 3.2 million members, 175 branch offices, and 7,100 employees worldwide.

Details

BofA Posts Q4 $1.8B Loss

Bank of America global credit cards posted a $1.8 billion loss in the first quarter compared to a $867 million profit on credit cards for 1Q/08. First quarter charge-offs rose sharply to 8.62%, compared to 5.19% one-year ago. The managed 30+ day delinquency ratio also increased to 7.10%, compared to 6.68% in the forth quarter and 2.90% for 1Q/08. In addition, the debit cards swung a net loss of $1.8 billion as a result of a weak economic environment. For complete details on Bank of America’s 4Q/08 performance, visit CardData (www.carddata.com).

BOFA CREDIT CARD NET INCOME
(Global Cards; Excludes Business Cards)
1Q/08: $670 million
2Q/08: $423 million
3Q/08: (-$373 million)
4Q/08: (-$204 million)
1Q/09: (-$1769 million)
Source: CardData (www.carddata.com)

Details

MBNA Europe Launches Business Credit Card

MBNA has announced the
launch of a new business credit card, designed specifically with sole
traders and small businesses in mind. The new MBNA Business Credit Card
offers 0% p.a. on business purchases for one whole year from the date
the account is opened. The credit card has no annual fee and comes with free purchase
protection insurance and Employee Misuse Insurance. The standard rate of interest for purchases will
be 15.9% APR (typical) variable.

Details

BuyerWall has Protected More Than $10B in Transactions

DE-based Electronic Payment Exchange estimates by the end of 2009 it will have protected more than $10 billion in client transactions by “BuyerWall” data security technology. From the point of sale, EPX as the processor takes sole custody of
the vulnerable card data but instead of receiving card data from a
transaction, merchants are given a “BuyerWall Recognized Identification
Code” (“BRIC”). The BRIC then takes the place of payment data in
merchant systems for every operational aspect of the transaction. BRIC
transaction codes are replacement values (sometimes called “tokens”),
not mere encryptions of the card numbers. “BRICS” cannot be
reverse-engineered to derive card numbers. They have no value to
potential intruders. “BuyerWall” represents the latest major advancement in merchant payment transaction security because it establishes a wall between a merchant and vulnerable customer credit
card data. At-risk cardholder data never enters the merchant’s computer
systems at any time, therefore eliminating any possibility of external
or internal card data compromise.

Details

PayPal’s Total Volume Rise 10% in 1Q/09

eBay reported that PayPal posted $642 million in net revenue for the first quarter, an increase of 11% year-over-year, but flat sequentially. Net total payment volume for the quarter was $15.8 billion, an increase of 10% year-over-year. Global active registered accounts increased to 73.1 million, representing 22% year-over-year growth. During the first quarter, PayPal handled 254.1 million payments, a 1% increase over the prior quarter, and up 20% from 1Q/08. PayPal’s 1Q/09 transaction revenue rate increased to 3.81% from the prior quarter but was still lower than the previous years rate at 3.88%. The processing expense rate for the first quarter stayed the same at 1.16% which is slightly lower than the prior year at 1.18%. PayPal’s transaction loss rate went down five basis points to 0.28%. For complete details on eBay/PayPal’s third quarter performance, visit CardData (www.carddata.com).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/08: $14.4 billion 60.2 million
2Q/08: $14.9 billion 62.6 million
3Q/08: $14.8 billion 65.3 million
4Q/08: $16.0 billion 70.4 million
1Q/09: $15.9 billion 73.1 million
SOURCE: CardData (www.carddata.com)

Details