Canadian Cross-Border Debit TXs Up 34% in 06

NYCE Payments Network reports it logged three million Canadian cross-border debit transactions during the most recent holiday shopping season. Since the launch of cross-border debit, Canadian cardholders’ average transaction amount on the NYCE Network has outpaced the U.S. figure by 34%. This has helped deliver additional purchase value to retailers, while also generally reducing payment expenses compared with credit cards. While the U.S. figure averages $47 per purchase, the Canadian average sits ahead at $63. Through NYCE, Canadians can make PIN debit purchases at more than 1.5 million U.S. retailer locations participating in the NYCE Network.

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DOCOMO & MCDONALDS

Tokyo-based NTT DoCoMo and McDonald’s have teamed to jointly
promote e-marketing based on DoCoMo’s “Osaifu-Keitai” e-wallet services. Both firms have formed a joint venture company to meet the goal by July with paid-in capital of 300 million yen, 70% coming from McDonald’s and 30% from DoCoMo. The JV will aim to quickly launch services by
integrating the customer bases comprised of McDonald’s 1.4 billion
annual customers and DoCoMo’s 52 million mobile phone subscribers. Mobile services for iD credit-card payments and ToruCa information capture will be introduced in McDonald’s stores throughout Japan beginning in October.

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First Data Opens a Scottish Call Center

First Data has opened financial service operations in Glasgow, Scotland.
The new center provides additional capacity to support the company’s
growth and is expected to create more than 430 financial services jobs
over the next five years. In Scotland, the financial services sector has
grown by 36.5% over the past five years. First Data has more than 60
primary offices operating in 39 countries.

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Fifth Third and Canopy Financial Team

Chicago-based Canopy Financial has been selected by Cincinnati-based Fifth Third Processing Solutions to power a suite of healthcare banking services for consumers, employers, health insurers, providers, administrators, and other financial institutions. Canopy’s products and services will be integrated with the payment processing technologies of Fifth Third Processing Solutions to create a leading end-to-end CDH platform complete with integrated investment options.

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Experian Powers Up Alacra in the U.K.

Alacra has added Experian to its list of data providers. Experian will provide Alacra with access to its business information reports on companies in the United Kingdom and company document images on over 2.4 million UK public and private limited companies, over four million directors and shareholders and a wide selection of company document images, including annual accounts, annual returns, directors (Forms 288), capital, incorporation and change of name documents via Alacra Premium and the Alacra Store. Alacra provides online technology and services to help clients find, package and present business information.

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Aliaswire Introduces PayVox Bill Pay

MA-based Aliaswire has introduced “PayVox”, a voice activated bill payment solution that allows users to pay bills over the phone or the web. “PayVox” users can provide bill payment instructions via user-defined commands as simple as “Pay utilities”, “Pay phone bill” or “Pay Comcast” using state-of-the-art voice recognition capabilities. Its multi-access platform is fully integrated with web and text messaging interfaces enabling bill payment from anywhere at anytime. The system has both English and Spanish voice recognition capabilities. Aliaswire offers card processors, financial institutions and wireless carriers a scalable platform that enables web, telephone and handheld devices the ability to initiate and complete payment transactions.

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SmartCentric to Power Etopup for PostPoint

AN Post, the Irish Postal Service, has chosen SmartCentric to produce
applications for “PostPoint”. “PostPoint” is the retail service network
of the Postal Service that allows customers to pay bills at retail
outlets and through “Etop-up” phone & Internet service. The applications
are being redeveloped to take advantage of advances in terminal and
security technologies. The redevelopment will be complete later this year.

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VISA USA’s Prepaid Network Expands Rapidly

VISA USA has landed 20 participants for its two-month old prepaid load network. VISA “ReadyLink” now has six bank issuers involved including: BankFirst, U.S. Bank, Bank of America, MetaBank, National City Bank and West Suburban Bank. Partners in the process of adopting the service include ADP Employer Services, FSV Payment Systems, Money Network, PreCash and Skylight Financial. “ReadyLink” processors include: Galileo, Metavante, Alliance Data and eFunds Prepaid Solutions. Acquiring financial institutions include Fifth Third and Fiserv. In December VISA announced an agreement with Blackhawk Network’s alliance partner stores, making Safeway the first in Blackhawk Network’s alliance of 60,000 stores in North America to implement “VISA ReadyLink.” The new prepaid network is currently being implemented at more than 1,550 retail locations nationwide, including participating Safeway, Carrs, Dominick’s, Genuardi’s, Pak ‘n Save, Pavilions, Randalls, Vons and Tom Thumb stores. The new “VISANet” service enables consumers, particularly unbanked consumers, to easily add funds to eligible VISA reloadable prepaid cards. (CF Library 12/4/06)

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Sig Debit Volume Tops $1 Trillion in 2006

Growth in off-line debit card volume in the U.S. continued to rebound in 2006, increasing 23% to more than $1 trillion. A new study has also found that issuers nationwide lost a total of $662 million to debit card fraud in 2005, a 21% increase over 2004. Of these losses, 60% resulted from ATM transactions, 37% from signature debit transactions and 3% from PIN POS transactions. Signature-based losses grew 28% in 2005, while PIN-based losses rose 17%. The study, commissioned by PULSE EFT Association by Dove Consulting, also found that debit card activation rates averaged 56% in 2006 for issuers that define “active” cards as those that have made one signature-based transaction in the last 30 days. On average, active cardholders performed 16.1 transactions per month — 10.6 signature-based and 5.5 PIN-based. More participating institutions offered debit card rewards in 2006 (37% compared to 33% in 2005). Of those participants that offer debit rewards, 37% reward cardholders for both PIN and signature transactions, compared to 29% in 2005. Survey participants expect to grow their debit card programs by an average 17% during 2007, representing 18% growth in PIN debit volume and 16% in signature debit.

VISA & MASTERCARD SIG DEBIT HISTORICAL
Year Volume Y/Y
2000: $ 301.8b +37.9%
2001: $ 420.7b +39.4%
2002: $ 496.4b +18.0%
2003: $ 576.6b +16.2%
2004: $ 686.0b +19.0%
2005: $ 823.5b +20.0%
2006: $1010.8b +22.8%
Source: CardData (www.carddata.com)

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U.S. Bank’s Elan PayCard Pilot Takes Shape

U.S. Bank’s Elan Financial Services has partnered with Sapphire Mobile Systems to conduct a mobile banking and payments pilot. Elan has integrated with the “Phire Mobile Debit Network” to provide customers with access to their “PayCard” accounts via any mobile handset. This initial pilot allows “Elan PayCard” customers to conduct balance inquiries, make person-to-person payments and card transfers from the convenience of their mobile phone. These transactions are referred to as “Phire Transactions” and act together as a mobile debit network to perform monetary transactions in real time. The pilot will be available to select “Elan PayCard” customers beginning this month.

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VASCO To Establish Headquarters In Zurich

VASCO Data Security has announced it will establish European
headquarters in Zurich. The company has found Switzerland
to offer a good market for their products and is centrally positioned in
Europe. For the new headquarters, the company will hire a number of
senior executives to oversee VASCO’s activity in all markets except for
North, Central and South America. Furthermore, VASCO does not expect the
opening of the office to have an impact on personnel currently located
in Brussels Belgium.

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