A November survey of 303 small businesses, which is a target market for financial institutions, will spend nearly $400 billion on financial products in 2008 and a projected $475 billion in 2010. Roughly 50% of businesses are “extremely satisfied” with customer service levels, online banking and ease of use applications. Aite Group, an independent research firm focal on business, technology and regulatory issues’ impact on financial services, conducted this survey to evaluate where small businesses bank and what factors determine the banking products they currently/plan to use. The findings conclude financial institutions need take more steps to understand banking needs and preferences.Details
NCR reported first quarter revenue of $1.18 billion, a 19% increase over 1Q/07 and net income $49 million compared to loss of $9 million in the year ago quarter. NCR has changed its financial reporting from global business units to reporting on a geographic basis. Revenue growth in the Americas region of 15% was driven primarily by sales growth to financial institutions and retailers. In the Europe-Middle East-Africa region, revenues increased 30% as every major country experienced revenue growth. NCR experienced 7% revenue growth in the Asia-Pacific-Japan region. During the first quarter NCR began the worldwide rollout of its “SelfServ” ATM family; introduced the “FastLane Self-Return” solution; and extended its self-service portfolio into the digital media market with “Xpress Entertainment.” NCR now expects 2008 year-over-year revenue growth of 5% to 7% from continuing operations, up from previously provided guidance of 3% to 5% revenue growth. For complete details on NCR’s first quarter performance visit CardData ([www.carddata.com]).
VA-based Intersections reported revenue for the first quarter of $85.9 million, a 48% increase over the first quarter of 2007. Net income for the quarter was $3.4 million, compared to $484,000 for 1Q/07. The revenue growth was driven by increases in direct marketing enrollments and the percentage of revenue coming from direct marketing programs. Total subscribers increased to approximately 5.6 million, about 300,000 more than the prior quarter. Subscription revenue, net of marketing and commissions associated with subscription revenue, increased to $46.6 million a 46% year-on-year gain. During the quarter, the Company acquired membership agreements from Citibank for approximately $30.2 million. For complete details on Intersections’ first quarter performance visit CardData. ([www.carddata.com]).
The first card in India that combines the Delhi Metro Rail “Metro Smart Card” and a “Citibank Credit Card” has been launched. The new “Delhi Metro Citibank Credit Card” offers reward points that can be redeemed for free Metro rides. Additionally, it offers double reward points for Metro spending and will not require the mandatory security deposit of Rs 50. Plus, the card offers “Special Privileges” which offer a 10% discount on travel fare paid; two points for every Rs.100 spent on the Metro and one point for every Rs 100 spent elsewhere. The Delhi Metro began operations in Delhi in 2002 and covers over 65 kms in Delhi.
Current ridership is about 650,000.
The International Card Manufacturers Association has awarded five members the first designation of “Advanced Card Education”, recognizing their knowledge, experience and dedication to plastic card manufacturing. Among those awarded with the “ACE-M” accreditation is Guy Meeker of the CPI Card Group, Mark Powell of Giesecke & Devrient, Daniel Szumski of CFC International, Eric Virostek of Giesecke & Devrient and James Ward of Allegheny Plastics Inc. Future designations will include ACE-A (advanced technologies) and ACE-P (personalization) awarded to representatives of ICMA member companies for detailed knowledge of PVC/Plastics, Inks, Adhesives, Printing, Collation, Lamination, Die-cutting and Standards/Testing.Details
MasterCard has selected ACI’s electronic payment solutions as key elements of its “Integrated Processing Solutions.” ACI’s “BASE24-eps” serves as the retail payment “engine” for the MasterCard debit processing platform, leveraging “BASE24-eps” for ATM transaction acquiring, transaction clearing, and related electronic payment functions. In addition, MasterCard uses ACI “Payments Manager” to monitor all transaction activity, provide customer support features and manage payment settlement functions. “BASE24-eps” uses an open systems advanced architecture to provide intelligent transaction authentication, authorization and routing capabilities, as well as support for advanced ATM features from the leading vendors.Details
Hypercom reported that first quarter revenue rose nearly 11% to $71.7 million and the net loss decreased $2.2 million, compared to the prior year quarter. During the quarter the Company completed the acquisition of Thales SA’s e-Transactions business, a top provider of card payment solutions in Europe. Product revenue for the first quarter was up 3% to $49.6 million, driven by strong countertop sales in the USA. Service revenue for the quarter rose 33% to $22.1 million due to an increase in service volume in South America and Asia-Pacific. During the quarter the Company introduced the “Optimum M4200” series of mobile electronic payment terminals and the “SmartPayments EasyRetail” electronic payment processing software. Also, Heidi Goff former MasterCard top executive, was named President and Managing Director of the Americas. For complete details on Hypercom’s first quarter performance visit CardData ([www.carddata.com]).
HYPERCOM REVENUE HISTORICAL
1Q/06: $61.0 million
2Q/06: $66.1 million
3Q/06: $56.7 million
4Q/06: $64.8 million
1Q/07: $64.8 million
2Q/07: $67.5 million
3Q/07: $70.8 million
4Q/07: $90.7 million
1Q/08: $71.7 million
Source: CardData (www.carddata.com)
VeriFone Holdings is extending the “VeriShield Protect” credit and debit card encryption to its PCI-approved “Secure PumpPay” solution. VeriShield Protect was developed to prevent compromise of cardholder data even in the event of a breach. “VeriShield Protect” shields credit and debit account information from the moment a card is swiped until the data is received at a secure decryption appliance located in a merchant’s secure data center, at an off-site service provider, or at an acquirer or processor organization. The “VeriShield Protect” system employs a breakthrough technology called H-TDES(TM) (Hidden-Triple Data Encryption Standard) to encrypt the personal account number (PAN) and magnetic-stripe track data in a manner that other applications interpret as valid card data. The data is encrypted within the tamper resistant security modules of VeriFone’s PCI-approved payment systems so that it can safely be transmitted over retailer networks to a centralized secure decryption appliance from Semtek Innovative Solutions Corp., the developer of H-TDES.Details
A monthly barometer of consumer spending intentions shows a slight up-tick for April. However, consumer’s economic and personal finance outlook remains grim. The latest “Discover U.S. Spending Monitor” posted an 85.4 reading compared to 85.1 in March. For the last four months including April, the Monitor has remained in the 85-86 range. The number of consumers who say they are spending more, particularly on household expenses, rose for the third straight month to 38%. Lower and middle income consumers hit record highs in April in curtailing their discretionary spending, with 57% of those making under $40,000 and nearly 54% of consumers making $40,000-$75,000 planning to spend less on discretionary personal purchases. While still low compared to numbers reported last fall, 13% of upper income consumers feel that economic conditions are getting better, up nearly two points from March. And 24% rate their personal finances as excellent, also up two points from March.Details
CA-based CyberSource has announced plans to open a development center in Belfast, Northern Ireland, which will be fully integrated with the organization’s 4 existing development centers with a projected employment of 20 engineers and support staff for its first year. Providing CyberSource with assistance in establishing this staff and providing development support with 840,000 pounds Sterling is Invest Northern Ireland. Invest Northern Ireland is focused on sustaining value-added, internationally competitive industry across the Northern Ireland region and will allow CyberSource to accelerate growth without increases in expected expenses with its investment.Details
MasterCard has added the “Fuelman Network” to its “Easy Savings” program. This is the first payments company to offer small businesses automatic savings on fuel and maintenance. MasterCard “BusinessCard” credit and signature debit cardholders enrolled in the program will now receive savings on fuel and maintenance purchases at more than 16,800 participating locations in the “Fuelman Network” nationwide. “BusinessCard” cardholders enrolled in the “Easy Savings” program receive a 1% automatic rebate on gas and diesel) at more than 15,000 gas stations in the “Fuelman Network,” and a 5% rebate on all maintenance purchases made at the more than 1,800 participating Fuelman Network maintenance locations across the country.Details