A new study reveals that off-site ATMs are driving growth in cash-dispensing ATMs in Europe, doubling in the past five years. Out of a total of 425,888 cash-dispensing ATMs in Europe, nearly 150,000 are now off-site ATMs. London-based Retail Banking Research also found that off-site units make up more than half the total ATM market in 8 of the 10 CEE markets surveyed, but only 3 of 17 western Europe countries. Russian banks were some of the largest deployers of off-site ATMs. They added nearly 7,000 new off-site cash-dispensing ATMs during the year, equating to domestic growth rate of 42%. Other countries showing strong growth in off-site ATMs were Bulgaria, Denmark, the Netherlands and the Ukraine, whose number of non-branch installations all grew by more than 20%. RBR also noted that ATM surcharging is practiced in only three European ATM markets. The report predicts that the installed base of off-site cash-dispensing ATMs in Europe will rise to more than 220,000 terminals by the end of 2011, 40% of the expected total. Over half of these will be found in Russia, the Ukraine and the UK.Details
Auriemma Consulting Group (ACG) research shows that the monetary
size of a transaction is fundamental to a consumers’ choice to use a credit
or debit card. Despite relatively equal monthly purchases on debit and
credit cards (GBP297 vs. GBP293 per month, respectively), on purchases totaling
between GBP 51 and GBP 100, consumers are 40% more likely to use a
credit card than a debit card. The study also finds that cardholders are 4
times as likely to use a credit card on purchases over GBP 100. Because
almost half of the 502 card users surveyed said “focused” credit card
would encourage increased card use, the research suggests that consumers
use credit cards for higher purchases to take advantage of finance
and rewards. ACG is a management consulting firm in the payments and
lending industry with offices in London and New York.
The ECB has released its 5th progress report regarding SEPA with
attention focused on areas needing greater effort for project
implementation by January 2008. The report issued reflects the need
for all stakeholders to put forth an effort to address “gaps” for the
delivery of the Single Euro Payment Area and questions what short-
term obstacles the banking industry may encounter in meeting the
January-deadline. Furthermore, the ECB addresses what long-term
issues the industry may encounter in the future, the necessity of
clarity and bank reachability.
On Track Innovations (OTI) will be providing Garanti Payment Systems
with contactless solutions. OTI will be providing its “Saturn 6000”
reader for security-enhanced EMV transactions for Garanti’s “Tap & Go”
program. The “Saturn 6000” also provides “ISO 14443 PayPass version 1.1,”
which Mastercard’s “Paypass” Technology began implementing this year.
The readers are accessible where PayPass Cards, Smart Stickers, Key Fobs
and watches are offered to “Bonus Trink” members. Garanti Bank has $36
billion in assets, has over 6.2 million corporate and private banking
487 domestic branches, and 1,455 ATMs.
Bank of America’s customers now have access to 2,500 ATMs that accept check and cash deposits without an envelope or deposit slip and are able to get immediate credit for cash deposits and same-day credit for deposits until 8 p.m. in the state the account is located. Some of the advantages of deposit image ATMs include receipts with an image of each check, verification of the amount of cash and the ATM adds up the deposit. In the past year, the number of deposits at the new ATMs increased up to 50 percent. Bank of America has more than 17,000 ATMs nationwide, and more than 12,000 of them accept deposits. The bank plans to convert all of its deposit-taking ATMs to the new envelope-free technology.Details
Western Union reported that second quarter revenue increased 8% to $1.2 billion. Total consumer-to-consumer revenue grew 7% to more than $1.0 billion in the second quarter on transaction growth of 14%. This was the first time in Western Union history that this segment exceeded $1.0 billion in quarterly revenue. The consumer-to-business segment grew revenue 13% to $175 million in the quarter. As a result of the immigration debate and broader market softness in the U.S., the domestic consumer-to-consumer business saw a 10% decrease in revenue and a 5% decrease in transactions for the quarter, showing modest sequential improvement over the first quarter. During the quarter Western Union signed Checksmart and Ahold in the U.S., Australia Post, Nepal Post, Israel Postal Company, Ecobank covering a potential 17 countries in Africa, and Cash Express Services in Bulgaria. For complete details on Western Union’s second quarter performance visit CardData. ([www.carddata.com]).
Concur has unveiled the next generation of travel and expense management featuring “Smart Expense” enabling business travelers to book their trip with automatic processing of their expense reports. Concur takes advantage of e-receipts; complete, live, electronic data that contains the entire record of a supplier transaction including folio data that looks exactly like the supplier’s traditional paper receipt. “Smart Expense” automatically gathers and reconciles itinerary data captured at the time of booking, corporate card charges incurred by the employee and e-receipts captured directly from the supplier to be reconciled within one travel and expense management process. Concur is a provider of on-demand Employee Spend Management services.Details
Houston-based Harris County FCU has moved its debit card processing to TNB Card Services. Harris County FCU is moving more than 3,000 Visa debit cards over to TNB’s single-source, full-service debit card processing solution, which enables the credit union to view and manage signature and PIN debit account information and transactions online, and in real time. The credit union serves Harris County government employees as well as several under-served areas in the county. It has 15,000 members and assets of $70 million. TNB Card Services provides electronic payments processing, as well as an agent issuing solution for credit unions nationwide.Details
TSYS reported that second quarter profits rose 14%, hitting $65.7 million. Revenues of $460 million represented a 14% rise over 2Q/06. The Company says internal revenue growth in its core processing business continues to be the strong driver of its domestic results and that its international growth is driven by acquisitions and strong demand. During the second quarter TSYS renewed merchant acquiring service agreements with Merchant Management Systems, as well as signed new agreements with mPay Gateway and The Bancorp Bank; completed the pilot program for the “Wal-Mart MoneyCard”; introduced “Chip and PIN Secure Payments” in Cyprus; launched the “Rewards” card pilot program in the United Kingdom with Norwich Union; and that CUP Data, TSYS’ joint venture with China UnionPay, has recently begun providing processing services for Huaxia Bank. Excluding the one time BofA contract termination fee last year of $68.9 million and the acceleration of amortization of BofA contract acquisition costs of approximately $6 million, net income is expected to increase between 20%–22% in 2007 compared to 2006. Based on GAAP, TSYS’ estimated 2007 net income is expected to increase between 0%–2% as compared to 2006. For complete details on TSYS second quarter performance, visit CardData ([www.carddata.com]).
TSYS REVENUE HISTORICAL
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
4Q/06: $503.9 million
1Q/07: $429.6 million
2Q/07: $460.2 million
Source: CardData (www.carddata.com)
GE leaders and environmental influencers launch the first credit card in the US with rewards dedicated to reducing cardholders’ carbon emissions. Tom Gentile, chief marketing officer, GE Money; Lorraine Bolsinger, vice president, GE ecomagination; Kevin Walsh, managing director, renewable energy GE Energy Financial Services; Jonathan Mintz, commissioner, New York City Department of Consumer Affairs; Elizabeth Rogers, author of “The Green Book” and Kathy Sheehan, SVP, GfK Roper Consulting, Roper Green Gauge will discuss the “greening” of consumer finances and the impact of the card on the environment at The New York Academy of Sciences.Details
American Express reported that its U.S. Card Services division posted second quarter net income of $580 million, down 2% year-over-year. U.S. gross dollar volume rose 13% and the AmEx cardbase expanded by 11% during the second quarter, compared to the year-ago quarter. Total net revenues for the first quarter increased 12% to $3.56 billion. Total U.S. card loans rose 39% to $38.3 billion. Delinquency on card loans (30+ days) declined to 2.7% versus 2.9% in the prior quarter and 2.5% for 2Q/06. Charge-offs on total card loans remained steady at 3.7% for the past two quarters, compared to 2.9% one-year ago. Card volume in the U.S. hit $94.6 billion, up 13% from the year-ago quarter. The total number of domestic cards-in-force grew to 42.1 million cards, compared to 39.1 million for 2Q/06. For complete details on American Express’ second quarter results, visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
2Q/07 1Q/07 4Q/06 3Q/06 2Q/06 Ann Chng
Volume $115.7 105.4 109.7 101.7 102.5 +12.9%
Cards 50.5mm 49.3 48.1 46.8 45.4 +11.2%
Source: CardData (www.carddata.com)
A new report has determined that if all U.S. households viewed and paid bills online it would save 2.3 million tons of wood; reduce fuel consumption by 26 million BTUs; decrease toxic air pollutants by 3.9 billion pounds; reduce toxic wastewater by 13 billion gallons; lower solid waste generated by 1.6 billion pounds; and remove 8.5 million particulates and 12.6 million nitrogen oxides from the air. The study released by Javelin Strategy & Research also reveals that 61 million households currently bank online (53% of the U.S. household population) which is projected to reach 82 million households by 2012, or 67% of U.S. households. Additionally, 39 million households pay bills at individual biller sites today, and this number is projected to reach 50 million by 2012.Details