Lipman Drives VeriFone Revenues Up 53%

VeriFone reported that its net revenue for the quarter ended April 30th surged 53% to $217.2 million, largely driven by the Lipman acquisition and strong international performance. The Company noted that its wireless products remain strong and its North American business was up 8% from the previous quarter. During the quarter, VeriFone completed a successful pilot with American Express for its “Vx 670” “Pay at the Table” solution; continued working with the Tesco contract, where the “VeriFone Secura” outdoor payment system is enabling integration with ECRs, pumps and a range of unattended devices in a Wincor Nixdorf-led project; and announced wins at Ahold Group members Stop & Shop and Giant-Landover food stores. VeriFone raised its third quarter internal expectations for net revenue to $225 – $227 million. For complete details on VeriFone’s latest performance, visit CardData ([www.carddata.com][1]).

REVENUE HISTORICAL
1Q/05: $117.9 million
2Q/05: $125.7 million
3Q/05: $130.5 million
4Q/05: $134.6 million
1Q/06: $142.2 million
2Q/06: $147.6 million
3Q/06: $156.6 million
4Q/06: $216.6 million
1Q/07: $217.2 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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GCA Enables the 2007 WSOP Tournament

Global Cash Access has landed a deal to provide The World Series of Poker with a wider selection of cash access and funding options for this year’s “2007 WSOP Tournament”. The WSOP drew 8,773 participants for the $10,000 buy-in Main Event in 2006 and saw more than 48,000 entries compete for a gross prize pool in excess of $171 million. GCA provides proprietary technology that helps patrons access cash via ATM, debit card, check cashing and credit card cash advance transactions for gaming entertainment.

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COF CIO Steps Down; Veteran Steps In

Capital One announced that CIO Gregor Bailar will be stepping down and that Robert Alexander, who currently serves as Capital One’s EVP for Internet and ECM, will assume the role of CIO and Head of ECM. Alexander will be responsible for all CIO accountabilities including enterprise-wide IT strategy, IT infrastructure and architecture, and central data management, information risk and business continuity. Most recently, Alexander served as the lead executive for the largest information technology system replacement program in the history of Capital One. Alexander led a three-year, cross-functional effort to deliver the new infrastructure for Capital One’s credit card businesses, replacing the billing system and ancillary systems and processes. Since joining Capital One in 1998 from Boston-based strategic consulting firm Bain & Company, Alexander has had responsibility at various times for a number of Capital One’s lending businesses, including the US Credit Card and Installment Loan businesses, providing oversight to all marketing, portfolio management, and credit policy activities associated with these businesses. Alexander also led the formation and start up of the company’s credit card e-commerce business.

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Debit Card Usage Among Women Soars

MasterCard released a survey on women and debit cards which showed that 77% of those under 55-years old have primary or shared fiscal decision-making responsibilities with 85% indicating that they are increasingly using their debit card to help manage personal finances. The “Women in the Financial Marketplace” analysis, part of the “Yankelovich MONITOR 2006/07” study commissioned by MasterCard, also found that debit card usage by women has more than doubled since 2003, growing from 20% to 43%. Women now represent 61% of the most frequent debit card users.

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HSBC Finance Names a New Board Member

HSBC Finance Corporation has appointed Louis Hernandez, CEO of Open Solutions, to its board of directors. Under his leadership, Open Solutions, a provider of integrated data processing technologies for financial institutions worldwide has become one of the financial industry’s fastest growing companies with over 5,000 clients worldwide, 2,000 employees and 2006 revenue of approximately $395 million. Prior to Open Solutions, he was chief financial officer for RoweCom, an electronic commerce software vendor to financial services, healthcare and academic markets. Additionally, he was chief financial officer and corporate secretary for U.S. Medical Instruments Inc., a medical devices company, and held various positions within the Business and Advisory Group of Price Waterhouse LLP. Hernandez obtained his bachelor’s degree and MBA from San Diego State University.

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Average Active Balances Rise 7% in 06

The average balance per active account among the nation’s top 10 VISA and MasterCard issuers increased 7.2% last year. However, over the past five years the average has held in a relatively tight range with a peak in 2003. According to CardData ([www.carddata.com][1]) the average balance per active account hit $2,523 in 2006, compared to $2,352 for the prior year and $2,487 in 2001. In 2003, the average balance per active account hit a record $2,683.

Issuer Active ADB
1. JPM Chase $3,562
2. Bank of America $3,241
3. Citibank $2,180
4. Capital One $2,493
5. HSBC $1,640
6. Wash Mutual $2,765
7. Wells Fargo* $2,481
8. USAA FSB $3,821
9. U.S. Bancorp $1,783
10. Target $1,264
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Hypercom Adds Six New Optimum Terminals

Hypercom Corporation is expanding its “Optimum” line of 32-bit multi-application electronic payment terminals in the third quarter with a new global countertop platform. The new PCI PED-approved “Optimum T4200” family will be available in three EMV and three non-EMV models, including a dial only model, Ethernet/SSL with dial backup and wireless GSM/GPRS connectivity also with dial backup. The new products can be used in either merchant-facing or hand-over payment environments. The six “Optimum T4200” models share the same compact form factor including a 19-key keypad layout. All six models in the new series incorporate a 160 x 80 pixel monochrome display, come standard with 24MB of memory that is four to eight times larger than similar products, and can process debit, credit, smart card and value-added transactions such as gift/loyalty and dynamic currency conversion.

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OTI First Quarter Revenues Increase 15%

On Track Innovations reported first quarter revenues of $10.4 million, an increase of 15% compared to 1Q/06. However, gross profit of $4.0 million slipped 10% compared to the first quarter last year, impacted by the weakness of the dollar. OTI says the revenue increase was driven by the petroleum and ID markets. During the quarter, the Company’s new contactless reader was approved by MasterCard for the “EMV M/Chip v.1.3” and “Magnetic Stripe v3.2” contactless payment programs. The “Saturn 6000” terminal was also approved for MasterCard “PayPass ISO 14443 Implementation Specification v1.1.” Also, OTI launched its “EasyFuel” pay-at-the-pump contactless payment solution in North America. The Company already has received orders from an energy company in North America that calls for a roll-out at 130 gas stations. For more details on OTI’s 1Q/07 performance visit CardData ([www.carddata.com][1]). (CF Library 2/21/07; 3/20/07)

[1]: http://www.carddata.com

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Emirates To Use MasterCard MiGS

Mastercard Worldwide has announced that Emirates International
Airlines will be using “Mastercard Gateway Service”(MiGS) as a
secure payment platform to provide online ticketing and payments.
“MiGS” provides a single payments interface for multiple payment
instruments and handles multi-currency processing, supports
multi-country operations and includes fraud protection. For Emirates,
the solution also will reduce processing complexity and provide
payment solution in several markets. “MiGS” processes close to 50
million transactions per year. The Emirates Airline has experienced
over 20% per annum average growth, carried 17.5 million passengers
in the 2006-07 financial year and declared a US $844 million profit.

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Esprit Prepaid MC Signs a Cruise Line

Las Vegas-based Esprit Financial Group has signed its first credit card branded stored-value debit card program as a payroll card for a major cruise line’s employees on an international basis. Esprit, in conjunction with its strategic partners, will enable cruise ship companies to load cash value onto a branded stored value debit card. The card will be accepted wherever MasterCard credit cards are accepted. Additionally, funds can be transferred internationally to family members easily via card to card transfers. Esprit Financial Group is a public company engaged in a diversified number of online financial services.

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Air China & Bank Of China Launch Co-Branded Visa

Air China and Bank of China, both sponsors of the Beijing 2008 Olympic
Games, have signed a “Strategic Cooperation Agreement for the Beijing
2008 Olympic Games” and introduced the “Air China Companion-BoC-
Visa Olympics Credit Card”, a co-branded Visa card. The new card allows
members of Air China’s frequent flyer program, “Air China Companion”,
to earn points quickly and supports the Olympic Games. Air China serves
78 domestic and 39 international cities with an extensive network from its
Beijing hub.

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CO-OP Concierge for CUs is Introduced

CO-OP Financial Services has launched “CO-OP Concierge” for its credit union members. CO-OP Concierge is composed of the “Falcon Travel Notification”, which gives credit unions access to cardholder contact information and travel itineraries, resulting in faster notification when a questionable transaction occurs and “VIP Authorization Block Bypass,” which permits credit unions to identify elite cardholders they want to be exempt from any transaction blocks. CO-OP Financial Services’ membership has access to 800,000 ATMs worldwide through links to NYCE, STAR, Cirrus, Pulse and Plus.

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