Prepaid Cards Can Drive Consumer Behavior

A new report has found that 42% of Internet households have at some time received a prepaid card as a loyalty reward for their shopping or card usage activity. Two-thirds of those who have received one say they are valuable. More than one-third of these respondents consider this type of reward to be very valuable. Atlanta-based Synergistics Research says that in terms of the impact on behavior and customer loyalty, half overall indicate that they shop more frequently at particular merchants or locations as a result of getting this type of reward. Three in ten overall report that they use a particular credit card more often as a result. Additionally, a majority of those who
received one say they shop more frequently at the merchant as a result,
and three in ten use a particular credit card in order to earn prepaid
reward cards.

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GLOBAL HOME CURRENCYPAY

Global Payments Asia-Pacific Limited and Global
Payments have formed a joint venture and have launched the “Global
HomeCurrencyPay”
service to merchants in India, following the successful launch of this
dynamic currency conversion service in China, Malaysia and Taiwan.
The service allows Indian merchants to give their
international customers the option to make payment in their home
currency or in Indian Rupees using their Visa or MasterCard cards. The
credit card payment transactions are converted to the customers’ home
currency at the point of sale, providing them with the convenience of
immediately knowing the payment amount. With “Global HomeCurrencyPay”,
a fast growing data processing service, merchants can generate
incremental revenues when accepting international cards. Global Payments
Asia-Pacific Limited is the
largest pan- Asian card processing company in the region and a strategic
joint venture between Global Payments Inc., a
and The Hongkong and Shanghai
Banking Corporation Limited.

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PRECIDIA & DATASYM

IP protocol provider Precidia’s “TransNet” payment engine software is now available on Datasym’s POS systems. Datasym is a manufacturer of PC-based cash registers for retail and restaurants. Housed on the “POSLynx220” payment router, Precidia’s TransNet payment engine software integrates with existing Datasym terminals, delivering fast, cost effective credit, debit, gift and loyalty transactions routed directly to any certified processor. The “POSLynx220” payment router, which features firewalling and SSL encryption, acts as a fortress for cardholder data. This feature makes the PA-DSS validated “TransNet solution” inherently more secure than other server-based solutions. Its design also helps merchants maintain PCI compliance, with unchangeable default settings.

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MONEYBOOKERS

Online payment system Moneybookers is now available through osCommerce.com
Moneybookers’ global payment system offers businesses access to over 60
payment options in more than 200 countries with a single integration. It
has over six million account holders with 10,000 people signing up every
day. Its simple, cost-effective system offers market leading security
and a no chargeback policy. More than 30,000 merchants use Moneybookers,
from small, independent retailers to global brands including Skype and AOL.
Moneybookers has also partnered with
eBay.com to be integrated onto the auction site as its official
worldwide accepted payment provider.

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Tebca Peru JV Created for Prepaid Cards

The first prepaid program of this kind is being launched in Peru, according to CardFlash International. NovoPayment has established a joint venture with Interbank Group to develop prepaid card programs nationally, including prepaid EBT and food vouchers, general-purpose reloadable cards, cash management and remittances products. The joint venture will be named Tebca Peru. Initially, Tebca Peru will introduce a prepaid food voucher program under the brand name Provis Alimentación, aimed at electronically managing social benefit payments for companies and entities throughout the country. The company expects to issue as many as 200,000 cards in the first two years. Interbank Group has more than 1.2 million customers.

Details

GLOBAL HOME CURRENCYPAY

Global Payments Asia-Pacific Limited and Global
Payments have formed a joint venture and have launched the “Global
HomeCurrencyPay”
service to merchants in India, following the successful launch of this
dynamic currency conversion service in China, Malaysia and Taiwan.
The service allows Indian merchants to give their
international customers the option to make payment in their home
currency or in Indian Rupees using their Visa or MasterCard cards. The
credit card payment transactions are converted to the customers’ home
currency at the point of sale, providing them with the convenience of
immediately knowing the payment amount. With “Global HomeCurrencyPay”,
a fast growing data processing service, merchants can generate
incremental revenues when accepting international cards. Global Payments
Asia-Pacific Limited is the
largest pan- Asian card processing company in the region and a strategic
joint venture between Global Payments Inc., a
and The Hongkong and Shanghai
Banking Corporation Limited.

Details

Discover Card Unveils Spend Analyzer

Discover has launched “Spend Analyzer”, an online tool that gives
cardmembers a visual way to track spending. The “Spend Analyzer” helps
cardmembers better understand their spending
habits by providing a visual representation of their Discover Card
purchases through via pie charts and
bar graphs that organize their purchases into useful categories such as
travel, supermarkets, and gas, displays up to 24 months of account activity
and allows cardmembers to review average and total number of
transactions per month. The financial
tool also allows cardmembers to take a closer look at their spending,
with the ability to drill down to view greater detail and compare
spending behavior over time. The “Spend Analyzer” tool automatically
gathers cardmembers’ personal card
spending information.

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TEBCA PERU

The first prepaid program of this kind is being launched in Peru. NovoPayment has established a joint venture with Interbank Group to develop prepaid card programs nationally, including prepaid EBT and food vouchers, general-purpose reloadable cards, cash management and remittances products. The joint venture will be named Tebca Peru. Initially, Tebca Peru will introduce a prepaid food voucher program under the brand name Provis Alimentación, aimed at electronically managing social benefit payments for companies and entities throughout the country. The company expects to issue as many as 200,000 cards in the first two years. Interbank Group has more than 1.2 million customers.

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EFICASH M-Payments Platform Introduced

FL-based EFICI has launched the “EFICASH” mobile payments platform. The
application is based on a pre-paid model that securely allows
consumers to make and receive payments by linking their debit, credit
card and bank accounts. “EFICASH”can adapt to the needs of any
institutional client in any country of the Americas. It has been
designed to support multiple languages, currencies, types of accounts
(individual and premier) and other customizations with safeguards in
place to minimize the chance of fraud.

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MMU PROGRAM

The mobile communication industry advisor GSMA and the Bill & Melinda Gates Foundation have joined to launch “The Mobile Money for the Unbanked”
program. The MMU program, supported by a US$12.5 million grant from the foundation,
will fund regulatory and market research to help
overcome some of the barriers of providing these services and
demonstrate the business case for serving this market. The programme
includes a US$5 million fund to catalyze a new wave of mobile money
innovation, encouraging mobile network operators to create new services
for previously unbanked people in emerging markets. The MMU programme
will support approximately 20 projects in developing countries, focusing
on Africa, Asia and Latin America, with the goal of reaching 20 million
previously unbanked people with mobile financial services by 2012 and will work with
mobile operators, banks, microfinance institutions, government and
development organizations to encourage the expansion of reliable,
affordable mobile financial services to the unbanked.

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U.K. Dec Card Delinquency Sets a New High

Charge-offs among credit card-backed securities for December hit its highest level in 18 months as delinquency hit an all-time high. Credit card debt dropped 3.6% from from the prior quarter and is now down 3.9% from December 2007. The Fitch “Charge-off Index” increased in December by 80 basis points to 7.2%, having improved slightly in the previous month when it dropped 20 basis points. Fitch expects a further rises in 2009. In December, the Fitch 60 to 180 days “Delinquency Index” increased for the fourth month in a row, moving to 4.3% from 4.1% in November. Having increased for each quarter of 2008, the outstanding amount of credit card debt held by U.K. borrowers rose to GBP 53.9 billion in December from GBP 53.3 billion in November. Fitch also reports that its “Monthly Payment Rate Index” was 16.2% in December, a quarter-on-quarter drop of 100 basis points from September and a 40 basis points fall from December 2007. The Fitch “Yield Index” also dropped from September to December, to 20.6% from 20.9%.

U.K. CREDIT CARD ABS
Delinquency Charge-Offs
Dec 07: 3.4% 6.2%
Jan 08: 3.4% 6.2%
Feb 08: 3.5% 5.6%
Mar 08: 3.6% 6.6%
Apr 08: 3.6% 6.5%
May 08: 3.7% 6.4%
Jun 08: 3.7% 6.9%
Jul 08: 3.7% 6.5%
Aug 08: 3.7% 6.3%
Sep 08: 3.8% 6.6%
Oct 08: 3.9% 6.6%
Nov 08: 4.1% 6.4%
Dec 08: 4.3% 7.2%
Source: FitchRatings

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DIGIPASS v3.0

VASCO Data Security International has launched “DIGIPASS for Mobile 3.0”.
The new version of DIGIPASS for Mobile mainly focuses on an improved
user experience. The Graphical User Interface (GUI) has been revamped.
Menus, messages, logos, colours, and fonts can be fully adapted to the
bank’s branding, supporting the brand recognition for the end-user. This
version supports multiple languages including Asian Characters sets
amongst others, including Mandarin and Japanese. Menus have been
extended and include links to services like ATM locator, WAP information
etc. Furthermore, DIGIPASS for Mobile now is also equipped with
automatic update functionality. DIGIPASS for Mobile is OATH and AES compliant.

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