A new study has found that the new “wave-and-pay” options at checkout terminals is not yet the smart card killer solution that industry leaders had expected. Consumers are largely in the dark when it comes to understanding and embracing the new contactless technology. Auriemma Consulting Group found that only 3% of the population is familiar with the new technology. However, after reading an explanatory paragraph about contactless payments technology, consumers were 7 times more likely to want a contactless card than before they read the description. Furthermore, after reading the description of the technology, 63% of consumers would use a contactless card more than a standard credit card because of its “cool new technology” and 67% of consumers would use a contactless card more than a standard card due to its “ease of use.” About 23% of consumers would not use contactless cards because of concerns of identity theft; a robust education-focused campaign should address this concern.Details
IKEA Deutschland has renewed its network services contract
with the First Data subsidiary, TeleCash, making the German network
service provider the designated general contractor for cashless payments
at the country’s 43 furnishing retail outlets and restaurants. With
this, TeleCash will continue processing card-based payments at
IKEA’s more than 1,500 point-of-sale terminals in Germany,
providing project management, maintenance of the terminal hardware,
blacklisting technology, access to online systems to analyze receipts of
card-based transactions and an electronic receipt storage service. The
electronic receipt storage service requires cardholders sign an
electronic signature pad at the POS, which TeleCash then files, reducing
costs associated with physical archiving. First Data has operations in
37 countries for more than 5.4 million merchants and 2,000 card issuers
while the IKEA group generated a total revenue of 19.8 billion Euro, of
which IKEA Germany generated the largest percentage.
The “Monthly Payment Rate” for credit card-backed securities in the U.K. collapsed 120 basis points in May while the “Yield” on card ABS sunk 90 basis points. Despite the rocky credit card performance in the U.K., the Bank of England’s Monetary Policy Committee has maintained the base rate at 5.0% for the third month in a row. According to FitchRatings the “Monthly Payment Rate” dipped to 16.80% in May, compared to 18.00% in the prior month. Fitch also reports that the “Yield” declined to 19.5% in May, compared to 20.4% in June. The Fitch “Charge-off Index” improved in May, dropping to 6.4%, from 6.5% in
April. Having remained stable over the last two monthly periods, the Fitch “Delinquency Index” increased again in May, rising 10 basis points to 3.7%.
Continental Airlines has been provisioned a fraud-reduction solution for
card-not-present (CNP) ticket sales through 41st Parameter. A provider
of Internet Fraud Intervention Services and Technology for e-commerce
and financial services, 41st Parameter Inc will deploy its “FraudNet”
solution to both detect and prevent CNP fraud for Continental Airlines
online customer sales channels. Moreover, the proprietary technology
provided through “FraudNet” offers increased analysis of online
transactions through detection tools to reduce the volume of manually
reviewed transactions, identify interlinked activities and report
genuinely fraudulent cases to law enforcement bodies. Carrying
approximately 69 million passengers per year, Continental Airlines has
more than 2,900 daily departures throughout the world to 144 domestic
and 139 international destinations while 41st Parameter Internet Fraud
Intervention solutions detects and prevents online fraud for e-commerce
companies and financial institutions.
Marketing fulfillment specialist DataMatrix Promotions has enhanced its rebate management capabilities by offering Chase Rebate Cards as part of its suite of efficient payment methods. DataMatrix Promotions added the Chase Rebate Card to its portfolio as an economical, reliable alternative to paper checks to help DataMatrix’s customers save time and costs associated with check printing, bank processing, check handling fees and postage. DataMatrix Promotions serves the consumer rebate, software development, data processing, call center and data mining needs of many of the world’s leading corporations.Details
The Kazakh Tsesnabank has implemented BPC’s “SmartVista” to support its
development strategy for card business growth through its in-house
processing center. In doing so, “SmartVista” will provide card business
automation with end-to-end integrated software modules, an entire cycle
of Visa magstripe, EMV cards issuing and acquiring, a stage by stage
migration of the bank’s card business from a third party processor,
integration with the sponsor’s processing center, flexible integration
with other systems and scalability. Tsesnabank has19 branches and 59
outlets throughout Kazakhstan serving over 100,000 private and 15,000
China Merchants Bank (CMB) has completed all relevant legal procedures
and has been deemed to have satisfied all requirements necessary to have
granted its New York State banking license by the New York State
Superintendent. This development makes way for the first U.S. branch
opening of a Chinese Bank in 17 Years, a direct result of the United
States’ adoption of its “Foreign Bank Supervision Enhancement Act of
1991.” CMB filed its application to establish a New York branch in 2007,
which the New York State Banking Department and the Federal Reserve
Board of Governors approved in August and November 2007, respectively.
The opening of the CMB New York branch is expected later this year. The
bank has total assets of nearly $187 billion with 576 branches across
China and generated a $3 billion net income for 2007.
Spartanics-Systec has launched its “Fineprint Cylinder Screen Printing
Line” cylinder-configured screen printing system with improved machine
design to allow for throughput in screen printing operations.
Custom-built for maximum efficiency and optimum yields, the screen
printing system is designed to handle pre-printed material from any
printing process, handles ultra-thin substrates as thin as 12 microns,
provides automatic compensation for screen stretch/shrink and provides
rapid electronic controls to replace manual adjustments.
Spartanics designs tool-free, steel rule die finishing products in
conjunction with Systec screen printing systems.
Barclaycard US has named a new Chief Information Officer. Phillip Steitz is the former SVP/CTO for American Express, where he oversaw global technology standards and strategy. During his nine-year tenure there, he led the introduction of numerous technology innovations, including mass Web personalization, standards-based identity and access management, advanced performance engineering, real-time data integration for multiple business lines and other critical functionality. Barclaycard US is headquartered in Delaware.Details
RDM Corporation, software/hardware product developer for electronic
payment processing, and Electronic Check Services (ECS) have signed
agreements for the reselling of RDM’s Image and Transaction Management
System (ITMS) suite of electronic check conversion software.
Implementing such RDM bank agnostic software as “Simply Deposit,” ECS
will now be able to provide remote deposit capture capabilities to its
customers for electronically deposited checks. RDM Corporation’s bank
agnostic software doesn’t require merchants to change existing bank
relationships and is a provider of software and hardware products for
electronic payment processing while Electronic Check Services was
established in 1997 in Springfield, Missouri and provides Check
Processing, Prepaid Services, Bill Payment, Gift Card and Loyalty
programs to thousands of retail locations Nationwide.
Payment and networking software provider, Precidia Technologies, has
announced its “TransNet” payment engine application has been certified
by the Sharp Electronics to provide an integrated
payment alternative through its cash registers. This development
provides merchants using the Sharp cash registers with secure, IP based
payment processing direct to a wide range of certified payment
processors and value-added functionality through the “TransNet” engine.
Merchants are also afforded features designed to reduce costs and
facilitate cardholder data security standards compliance for credit,
debit, gift and loyalty from card swipe processing. Precidia
Technologies designs and manufactures Internet Protocol payment and
networking products for customers in over 85 countries.
American Express has inked a hotel folio agreement with InterContinental Hotels Group. Under terms of the deal American Express will provide its corporate card customers with reports that break down lodging expenditures at nearly 2,800 IHG properties in the USA. AmEx folio agreements with hotel companies in North America and around the world now cover more than 70% of its clients’ commercial card spend in the U.S. AmEx corporate card customers can get expenditure reports by staying at IHG hotels including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge Suites, Candlewood Suites and Hotel Indigo. AmEx issues local-currency commercial cards in 45 countries, and “International Dollar Corporate Cards” in an additional 100 countries.Details