CompuCredit Posts a First Quarter Loss

Atlanta-based sub-prime card specialist CompuCredit reported a net GAAP loss for the first quarter of $2.5 million, compared to net income of $30.7 million for 1Q/06. The Company says the loss was primarily due to lower than expected fee assessments due to lower than expected delinquencies, the timing of marketing efforts, and the final transitional effects of implementing its previously announced decision to discontinue billing finance charges and fees on credit card accounts that become over 90 days delinquent. Total managed receivables for the first quarter were $2,894,136,000, a 15% increase compared to one-year ago. As of March 31st, CompuCredit had 3,945,000 accounts, compared to 3,549,000 in 1Q/06. The adjusted charge-off rate was 12.5% in the first quarter, as compared to 11.9% for 4Q/06 and 7.1% in the year ago quarter. As of March 31st, the 60-plus day delinquency rate was 12.8%, as compared to 14.1% for 4Q/06 and 10.6% for 1Q/06. For complete details on CompuCredit’s first quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
1Q/06: $30.7 million
2Q/06: $28.3 million
3Q/06: $38.8 million
4Q/06: $ 9.7 million
1Q/07: (-$ 2.5 million)
Source: CardData (www.carddata.com)

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

Details

Asia Travelers Prefer Cards Over Cash

Visa International has collaborated with Pacific Asia Travel Association
(PATA) to conduct and release the “Asia Travel Intentions Survey.”
The survey asks over 5,000 international travelers from 10 key travel
markets their travel intentions, motivations of visiting certain
countries and
what prevents them from visiting others. This years’ findings demonstrate
that 52% of those surveyed were considering Asia as a travel destination.
Also reflected is that in 90% of the markets surveyed, the respondents
would prefer to use a credit or debit card rather than pay with cash or
travelers’ checks. In China, 77% preferred use of a card, 62% of
Swedish and 62% of Australians. Korea had the only respondents who
preferred the use of cash over credit or debit cards with 51% favoring
cash.

Details

AmbironTrustWave Joins the PASS Consortium

Denver-based IP Commerce announced that AmbironTrustWave will deliver data security services and technologies through the “Payments as a Secure Service” Commerce Center. As part of this agreement, AmbironTrustWave has joined the growing number of commerce organizations working together to deliver commerce services as part of the PASS Consortium. PASS enables business users to perform a wide variety of commerce activities securely from their Windows Vista desktop.Created by IP Commerce, PASS Consortium is comprised of financial institutions and payment service providers working together to promote secure and efficient open financial transactions by leveraging IP Commerce’s IP Payments Framework and Windows Vista operating system. Additional members include: BankServ, Chase Paymentech, CIT Group, Inc., Internet Commerce Corporation, and PayPal. AmbironTrustWave is a global provider of information security and compliance management solutions to businesses and the public sector.

Details

Shinhan Reports Gains From Sale of LG

From the sale of LG Cards, Shinhan Financial Group has reported
profit gains for 1Q07, according to Bloomberg Financial. The group
gained 337 billion won from sale of the division. Furthermore, 1Q07
profit rose 93% to 827.8 billion won and assets rose 11% to 240 trillion
won since 4Q06. Also in 1Q07, the company’s stock has risen 12%,
net income rose 103% to 959.8 billion won ($1 billion), and
operating profit rose 141% to 1.58 trillion won from a revised
652.8 billion won. With the acquisition of LG Cards, Shinhan Financial
had the largest credit card business in 2006.

Details

ECHO Revenues Up Despite Gaming Inquest

Electronic Clearing House posted a 4% increase in first quarter revenue to $20 million despite being dogged by a federal investigation related to its Internet wallet business. Operating loss was $3.2 million, due to a number of one-time expenses including legal expenses of $2.9 million. Bankcard and transaction processing revenue increased 11.5% to $16.4 million and bankcard processing volume increased 13.3% to $525.4 million. Check-related revenue decreased 20.1% to $3.6 million and ACH transactions processed decreased 23.6% to 6.9 million. During the first quarter ECHO called-off its Intuit merger and agreed to disgorge $2.3 million in profits related to online gaming Web sites due to federal investigation. In return, it is expected the government will sign-off on a non-prosecution agreement. For complete details on ECHO’s first quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 3/27/07)

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

Details

SA Asia Pacific Names Country Manager

Visa Asia Pacific has appointed Jessica Pang as Malaysian Country
Manager who will be responsible for the expansion of the country’s
Visa payment cards. Before this development, Pang was Vice President
of Citibank Malaysia’s Merchant Card Business. Since 2004, she was
responsible for driving Citi’s merchant acquisition and card usage. With
more than 15 years of experience, Pang worked with Digi
Telecommunications, Parkson Corporation and MBF Finance in which
she held managerial roles in the marketing and sales departments. She
has a Masters in Business Administration from the University of Bath,
England and a Degree in Marketing from the Chartered Institute of
Marketing, UK.

Details

Maxis Expects M-money To be profitable

Maxis Communications and Maybank expect the new M-money service
to be successful. The service is a mobile money service in Malaysia that
enables customers to securely spend and send money anytime,
anywhere locally using a mobile phone. Each transaction costs 50 sen
and the limit per transaction is RM500. This is the latest development
in m-Commerce and is parallel with the government promotion of cashless
transactions in the future. The joint venture between Maxis and Maybank
is expected to generate RM 500 million worth of transactions by 2010.
Also, one million customers are expected to use the service within the
first
12 months.

Details

Al Rajhi Bank to Buy Optimum Terminals

Hypercom has announced that Al Rajhi Bank has purchased 4,000
Optimum card payment terminals. Among the terminals purchased is
the “Optimum M2100” wireless terminal which is portable, battery-
operated and allows for secure point-of-sale transactions. Purchase
orders were also made for dial-up card payment terminals. Al
Rajhi Bank has over 500 branches, 1600 ATMs, and 1200 installed
points of sale. The bank has capital of SR 13,500,000,000.
Hypercom provides secure payment solutions in over 100 countries.

Details

Blackhawk Network Lands a FDC Executive

CA-based prepaid card specialist, Blackhawk Network, has hired Mari Ellis, former chief operations officer for the prepaid services group at First Data, as SVP Ellis joins Blackhawk Network with over thirty years of experience leading financial services companies. Prior to joining First Data, Ellis was a pioneer of stored value products and technology with American Express, a leading global payments, network and travel company. Blackhawk Network, a subsidiary of Safeway Inc., is a prepaid and payments network, a market leader in card-based financial solutions and the largest provider of third-party prepaid cards.

Details

UTI Bank Launches New Rewards Program

UTI Bank has introduced the “UTI Bank Spice Rewards” merchant
supported rewards program. The program will provide promotional
marketing features to merchants and cardholders through Welcome
Real-time software. This merchant-centric promotional marketing
program is unique in that most points-based rewards programs are
operated by other banks. “UTI Bank Spice Rewards” will be available
to the 150,000 UTI Bank Credit Cards and all 6 million debit cards of
the Bank.

Details

European Prepaid Card Spending to Hit $164B by 2010

A new report predicts that spending on prepaid payment cards
in Europe will reach $164 billion within three years. The U.K. will emerge as Europe’s largest single market and the fourth largest in the world with a projected prepaid spend of $34 billion by 2010. The U.K. is closely followed by Italy where total spending is estimated to hit $33
billion and France, with an estimated total spend of $27 billion. The research by Boston Consulting Group and commissioned by MasterCard Europe, also projects that in Eastern Europe prepaid spending is set to make the biggest impact as a proportion of total payment card spend. In Poland, total prepaid spend is estimated to reach $11 billion and in Russia, the anticipated total prepaid spend is $23 billion by 2010.
The research also shows that one of the main drivers of prepaid spending in the upcoming future will be through Government programs. Prepaid cards help the public sector reduce welfare benefit fraud by driving cash out of the system and ensuring that payments reach those they are intended for.

Details

Chockstone Hires a Former TRM Executive

Loyalty marketer Chockstone has named Dan Tierney, previously in sales with TRM, as SVP of Sales. Tierney spent the past twelve years at TRM, where he directed sales, customer service and marketing for the $235 million provider of ATMs and self-service copiers installed in more than 40,000 convenience stores, grocery stores, and other retail locations throughout North America and Europe. Under Tierney’s diversification leadership, TRM became the largest non-bank provider of ATMs in the UK, and one of the largest non-bank ATM providers in the US. Tierney is a patent holder and degreed engineer from the University of California, Berkeley. He received his MBA in Marketing and Finance from the University of Santa Clara. Chockstone provides personalization, loyalty marketing, gift card and stored value solutions.

Details