A new report predicts that the value of branded and private label prepaid card transactions will hit $178 billion by 2010. The industry is expected to grow by a CAGR of more than 17% from about $80 billion last year. The new study by Boston-based Aite Group says the three major trends reshaping the industry include: the introduction of reload services; the drive to offer private label prepaid card products to small merchants; and the deep integration of branded and private label prepaid cards into various industries’ business processes. Among key findings, the report reveals that despite rapid industry growth, gaining scale in branded prepaid card processing remains a major challenge for processors and issuers. Aite also says that over time, the subtle distinctions between the various card products, such as debit versus prepaid versus credit, and branded versus private label, will erode as products grow in diversity and complexity and mesh together. Concluding that by the middle of the next decade, the prepaid card industry will have ceased to exist as a recognizable entity.Details
Research from the British Bankers’ Association(BBA) shows that bank
consumers in the UK, on average, pay much less in fees and penalties than
those in 11 other developed countries. These findings are from surveys of
bank consumers with products such as an account, overdraft, personal loan
and a credit card. With over 95% of the British population having a bank
account, UK banks clear over 7 billion transactions annually and
10% of the gross domestic product. The BBA has handled 40,000 claims,
fielded over 80,000 inquiries on its telephone helpline, and had 149,000
to its website.
KS-based Euronet Worldwide posted second quarter revenues of $237.1 million, compared to $153.8 million for 2Q/06. However, the quarter included the acquisition of Ria Envia, the third-largest global money transfer company. Net income decreased to $8.6 million, compared to $11.1 million for the second quarter 2006. “EFT Processing” posted revenues of $45.7 million, compared to $39.6 million for 2Q/06. Transactions processed were 146.9 million, compared to 113.6 million transactions in the same period last year. The EFT Segment completed the quarter with 9,858 ATMs owned or operated. “Prepaid Processing” reported revenues of $142.2 million, compared to $113.4 million for the second quarter of last year. Transactions processed were 160.2 million, compared to 107.7 million transactions in the second quarter 2006. The new “Money Transfer” segment reported second quarter revenues of $49.2 million, compared to $0.8 million for the second quarter 2006. Transactions processed were 3.8 million, compared to 0.1 million processed in the second quarter 2006. For complete details on Euronet’s latest results visit CardData ([www.carddata.com]).
Asset Acceptance Capital Corp. has appointed Rion B. Needs, most recently SVP and GM of Purchasing Services at American Express to the newly created position of COO. During the past 22 years, Needs has served in a variety of executive roles at American Express. As Senior Vice President and General Manager of Purchasing Services. In this capacity, Needs fundamentally transformed the purchasing function at American Express through a series of strategic expense reductions, operational enhancements and systems integrations, resulting in billions of dollars in cost savings over a multi- year period. Needs also served as strategic advisor to the American Express senior management team on issues of cost rationalization, corporate reengineering, process improvement and technology development. Asset Acceptance provides credit originators, such as credit card issuers, consumer finance companies, retail merchants and utilities an alternative in recovering defaulted consumer debt.Details
Dallas-based The First American Corporation has launched First American Intelligent Recovery Systems, a new company under First American Default Information Services division, which markets collaboration software used by the debt recovery industry. First American Intelligent Recovery Systems’ products include “CollectLink,” and “RepoLink.” “CollectLink” provides extensive workflow and file assignment capabilities, accurate and timely data sharing, enhanced reporting and auditing functionality, and accurate bill approval processing. “RepoLink” can create dynamic recovery strategies, measure real-time vendor performance, ensure service level compliance, improve productivity and streamline billing reconciliation through an automated process with full auditing capabilities.Details
Emirates Bank and Infospan have signed agreements to provide global
remittance service to consumers without bank accounts. The service will be
available through ATMs, SMS, and call centers and is piquing the
various employers, merchants and government agencies. Because of expensive
time-consuming cash disbursement methods of payment, employers are
in using the service to credit salaries to workers accounts
workers will be able to access ATMs and Point-Of-Sale units across the UAE
and able to remit funds to other countries. Statistics show that the UAE
second largest source of remittance funds in the world, accounting for 20%.
On a global scale, about $350 Billion is remitted annually with an average
transaction of less than $300.
The Western Union Company has hired Gail A. Galuppo, previously Chief Marketing and Customer Officer for the Standard Chartered Bank in Singapore, to serve as EVP and Chief Marketing Officer. Galuppo will direct Western Union’s global branding, marketing strategy, sales management and product development. Galuppo has 19 years of marketing, brand strategy and customer relationship management experience and has worked in senior-level positions with Sears Holdings Corp., GE Capital Card Services, Discover Card Financial Services and the Illinois CPA Society.Details
First Data will be integrating Cryptomathic’s data preparation system,
EMV”, with its Vision/PLUS processing platform. “CardInk EMV” will be
preparing the data for VISA and MasterCard’s EMV cards. Banks across
the Middle East and Africa will use the Cryptomathic solution to issue
EMV cards per year. “CardInk EMV” is capable of producing 180,000 card
records per hour and was chosen by First Data for its security,
TransUnion and Edgar, Dunn & Company have launched their “Payment Preference Model”, a direct marketing solution that combines individual credit behavior with payment preference data from the “PaymentDynamics 2007 Preferred Payment Study”. The model offers financial institutions a predictive marketing tool that has the capability to offer payment products based on a customer’s particular payment preferences. The Payment Preference Model is well suited for retail banks, financial services companies, credit card issuers, and card associations to maximize and prioritize direct product offer strategies across the full payment spectrum of cash, check, debit cards and credit cards. Edgar, Dunn & Company is an independent global financial services and payments consultancy. TransUnion is a global leader in credit and information management.Details
MobiClear and FOREX Bank will be introducing a card transaction
security solution available to select customers. The solution allows
consumers to verify and authorize ATM, online, and in-store purchase
transactions from a mobile phone. Furthermore, the solution requires
no additional software or downloads for implementation, allowing for
easy access. FOREX Bank originally had 85 branches in Sweden,
Denmark, Finland, Norway and Iceland. With the acquisition of
X-Change in May 2007, however, the bank has over 110 branches and
is planning for future expansion.
GE Money’s Sales Finance unit and Southern States Cooperative have announced a new multi-year relationship to provide new financing options through GE Money’s private label credit program. The program will be offered at the cooperative’s more than 1,100 retail outlets across 23 states. Southern States is a provider of agricultural products and services with 300,000 farmer members and fiscal 2006 sales of $1.6 billion.Details
Barclaycard has introduced three new “Platinum VISA” cards offering
variations of cash-back and balance transfers. This is the first time
that Barclaycard has offered a credit card with three options. The
“Platinum Cash Back VISA” offers 2% cash-back on supermarket and petrol
spending and 0.5% cash-back on all other purchases. In addition, the
card offers 0% interest on balance
transfers for 12 months with a 2.5% fee. “Platinum Long Term Balance
Transfer VISA” offers no balance transfer fee during the first 60 days
from account opening, 5.9% interest per annum on balance transfers for
the life of the transfer and 0% interest on purchases for 10 months from
account opening. The “Platinum Balance Transfer VISA” offers 0% on
balance transfers for 12 months from account opening with a 2.5% fee
and 0% interest on purchases for 3 months from account opening.
Barclaycard has nearly 10 million cardholders in the UK.