U.S. Bank P-Card to Offer Paymetric XiBuy

U.S. Bank Corporate Payment Systems has signed an agreement to integrate Paymetric “XiBuy” with U.S. Bank Purchasing Card data. Utilizing XiBuy can reduce the cost of transaction processing, improve the visibility and control of purchasing card spend, and extend the use of purchasing cards into new spend categories. Designed exclusively for SAP and for purchasing card programs, this solution delivers a new model for SAP businesses looking to optimize cards as part of a single, complete accounts payable solution. XiBuy has earned “Powered by SAP NetWeaver” certification. Paymetric, Inc. provides software applications that manage and protect payment card transactions in complex payment environments. U.S. Bancorp has $219 billion in assets and is the parent company of U.S. Bank.

Details

Number of Smart Cards with DDA Doubles

The Smart Payment Association has completed a compilation of market
monitoring to better understand trends of the payment smart cards market.
Major findings include: most of the 340 million smart cards shipped in
2006 comply with EMV standards; “Dynamic Data Authentication”(DDA) are
represented in more than 27% of the cards shipped in Q4 2006; open
platform cards represent 10% and 12% have data storage capability enabled
at issuance for value-added applications. Collectively, this data
reflects a shift
towards value-added and more secure cards by financial institutions. More
specifically, Static Data Authentication is being replaced by secure
Dynamic
Data Authentication EMV cards. Members of the Smart Pay Association
include Gemalto, Giesecke & Devrient, Oberthur Card Systems and
Sagem Orga. The association conducts development in interoperability
as well as additional smart payment solutions.

Details

Wells Fargo Card Helps Retire Mortgages Early

Wells Fargo has launched an innovative credit card that automatically pays down a customer’s mortgage based on card spending. The new “Wells Fargo Home Rebate VISA” offers a one percent rebate on card purchases with no limit. Once $25 is accumulated, it is applied directly to the principle on the mortgage. The card is only for Wells Fargo Home Mortgage customers and is part of the Bank’s cross-sell strategy. Wells will begin promoting the card through in-store merchandising on April 16th during its “Spring Into Action” campaign. Customers can also opt to get the card with the “VISA Contactless” feature. Wells Fargo Home Mortgage is the top retail mortgage lender and servicer of home mortgages. It has a local presence in more than 2,400 mortgage stores and bank branches and services loans for more than 7.6 million servicing customers.

Details

Banks Encouraged to Shift Debt To Loans

Rather than initiating bankruptcy against defaulters on loans, banks in
Malaysia are being encouraged to shift the debt to installment loans by
the Federation of Malaysian Consumers Associations (FOMCA).
FOMCA argues that allowing the borrowers an opportunity to make
monthly payments will help banks maintain existing customers and
prevent bankruptcies. The Association also argues that the minimum
annual salary be raised for credit card customers to RM48,000 before
consideration for approval. Since 2002 to February of this year, there
were about 153,000 bankruptcies and RM700 million in non-performing
loans.

Details

Leadership of MasterCard Foundation Announced

MasterCard announced the leadership of the new Toronto-based MasterCard Foundation. Lois Juliber, retired vice chairman and COO of Colgate-Palmolive, will serve as chairman of the board. Deanna Rosenswig, a former senior executive at Bank of Montreal, will serve as the foundation’s president and CEO. The Foundation’s mission is to broaden access to the global economy through innovative microfinance programs and to increase access to quality education opportunities for young people around the world. The Foundation was created last May when MasterCard went public. The Foundation was vested with more than 13 million shares of stock, currently valued at more than $1 billion.

Details

Euronet Completes Acquisition Of RIA Envia

Euronet has completed the acquisition of RIA Envia, Inc.(RIA), making it
the third largest global money transfer company. The acquisition
agreement stipulates that Euronet gains control of 100% of RIA’s common
stock outstanding for $380 million in cash, 4,053,606 shares of Euronet
common stock, 3,685,098 contingent value rights and 3,685,098 stock
appreciation rights. The $190 million seven-year term loan bears
interest at LIBOR plus 200 basis points or prime plus 100 basis points
and contains a 1% per annum principal amortization requirement, payable
quarterly, with the remaining balance outstanding due at the end of year
seven. With this, the company has also entered into a $290 million
secured syndicated credit facility consisting of a $190 million
seven-year term loan and a $100 million five-year revolving credit
facility. Euronet’s new $100 million five-year revolving credit facility
replaces its existing $50 million revolving credit facility which will be expanded further by up to an additional $150 million in term loan and up to an additional $25 million for the revolving line of credit. Euronet
has processing centers located in the U.S., Europe and Asia, and
processes electronic top-up transactions at more than 296,000
point-of-sale terminals across more than 161,000 retailers in more than
100 countries. RIA processes $4.5 billion in money transfers annually.

Details

HSBC Launches a PIN Loyalty Card for Merchants

HSBC has rolled-out a loyalty rewards card with a PIN-based dual payment card option for retailers. The new “HSBC OptiPay” enables retailers to both process card transactions at a lower cost and also reward their customers with an affinity-based payment solution. The new program was created through a strategic alliance with Concept Shopping. Consumers who sign up for the merchant-branded card will be able to select from a variety of loyalty and payment options on one convenient card. During each shopping visit, cardholders will receive offers intended just for them. Shoppers will then be able to use their rewards for additional in-store purchases. HSBC Retail Services issues merchant-branded payment cards through the “Tempo Payment Network.” More than 200,000 merchant locations in the U.S. participate in the Tempo Payment Network.

Details

MasterCard Director Steps Down for a New Job

Manoel Luiz Ferrao de Amorim has notified MasterCard International that
he is stepping down as director. This development resulted from Amorim’s
decision to accept a full-time position as President and Chief Executive
Officer of Globex Utilidades S.A. Amorium and no longer meets the
qualifications set forth by MasterCard in the Company’s Amended and
Restated Certificate of Incorporation.

Details

Hunid Racks Mobile VISA Debit Card Introduced

Smart SMS has signed an agreement with recording label Hunid Racks Corporation rolling out the “Hunid Racks Mobile VISA Debit Card” Both companies expect the distribution to exceed one hundred and fifty thousand VISA Debit Cards with gross revenue potential toping six million dollars annually. Smart SMS is a mobile entertainment marketing and distribution company that specializes in market branding via text and MMS.

Details

American Express Names a New EMEA Executive

Pedro Martinez Ruiz has been appointed the Financial Vice President for
Global Network Services by American Express and will manage regions
of Europe, the Middle East and Africa. Ruiz has more than 20 years of
experience with American Express in finances. He was hired by the
company in 1986 and has worked in various senior posts at the international
level of financial services, services of trips and American Express Bank.
American Express was founded in 1850 and specializes in non-banking
financial services.

Details

eFunds Renews the CO-OP Financial Services Deal

CO-OP Financial Services has extended its long-term relationship with EFD to provide third-party EFT processing services including ATM network access, ATM processing, debit/card services and shared branching services to CO-OP Financial Services member credit unions across the country. EFD provides enterprise payments and data & decisioning solutions. CO-OP Financial Services is the nation’s largest credit union service organization.

Details

NBD Adds Selektpoints to its Smart EMV Cards

National Bank of Dubai has partnered with Selektpoints to provide the
bank with chip-based loyalty programs. This development is part of the
bank’s customized offerings to reward customers who use their Smart Cards at
select merchant establishments in the UAE and the region. Over the next 24 months,
this new rewards system will be available throughout the Middle East
and will offer reward points that could be redeemed for goods and services. Using the
EMV smart chip embedded in the cards customers are automatically
rewarded for using the Smart Card at participating merchant outlets.
Furthermore, this agreement will designate The NBD as the exclusive ‘Landlord
Bank’ for Selektpoints in the UAE and will be responsible for
inducting establishments into the program.

Details