Gemalto Powers Garanti Bank’s Smart Banking Cards

Gemalto is providing Garanti Bank with Europe’s first smart banking cards featuring EMV technology, loyalty schemes and the contactless payment capability. Gemalto has been a major supplier to Garanti Bank since 2000 and has already provided the bank with several million of its multi-application smart cards, which incorporate EMV-compliant credit functions and a loyalty program. Leveraging the success of this first deployment, Gemalto is now upgrading Garanti’s “BonusCard” with the “MasterCard PayPass” functionality to allow consumers to benefit from the speed and convenience of contactless at movie theaters, fast food restaurants and supermarkets. The loyalty program has attracted more than 1,000 brands with over 100,000 sales points as partner merchants to date. This loyalty network, together with over 5 million cardholders, makes “BonusCard” Europe’s largest multi-branded loyalty and credit card program.

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Fast Food on Plastic Tops $51 Billion in 2006

U.S. consumers will rack up more than $51 billion worth of fast food on their personal credit and debit cards this year, compared to $33.2 billion one-year ago. The increase is driven by merchant expansion and promotion of card usage, according to CardData ([www.carddata.com][1]). McDonald’s has increased payment credit acceptance from 3,000 locations in 2004 to 13,000 in 2005. McDonald’s has also geared up for contactless payments. The average QSR credit card ticket, based on the most recent VISA data, is $11.15. Americans spend about $160 billion per year in quick service restaurants.

QSR ON PLASTIC HISTORICAL
2000: $ 1.7 billion
2001: $ 3.7 billion
2002: $ 6.1 billion
2003: $12.9 billion
2004: $22.5 billion
2005: $33.2 billion
2006: $51.3 billion
Source: CardData (www.carddata.com)

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

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Cadbury Schweppes Offers PayPass Vending Machines

Cadbury Schweppes, USA Technologies, and MasterCard announced that Cadbury Schweppes vending machines will be among the 5,000 vending machines to be equipped with “PayPass”. To use the e-Port cashless payment technology, consumers simply tap their MasterCard PayPass-enabled credit card or device on the e-Port terminal. Within seconds, the terminal will flash a light and produce a tone signaling the transaction is complete. As with all MasterCard PayPass transactions under $25, no signature will be required. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. Cadbury Schweppes Americas Beverages (CSAB) is one of the largest producers of soft drinks and premium beverages in the Americas. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

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Bank of the Sierra Signs with First Data

Bank of the Sierra has signed a new revenue sharing alliance agreement with First Data Merchant Services Corporation for the spring 2007.. The agreement also expands Bank of the Sierra’s merchant support network by adding dedicated First Data sales executives throughout Bank of the Sierra’s markets. Bank of the Sierra operates as the largest community independent bank headquartered in Southern San Joaquin Valley’s Heartland. First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide.

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VISA Omnibus Survey Finds Mums Need a Gift Card

A new study has found that 11% of Americans expect to spend as much as six or more hours in search of just one gift. According to the omnibus survey, commissioned by VISA USA, significant others and moms are the most troublesome on holiday shoppers♠lists, and the majority of Americans expect to spend up to three hours researching, shopping and buying a single gift. According to the survey, nearly half of the men said a spouse or mom would be the most challenging to buy for, compared with only about a quarter of their female counterparts; women had a harder time shopping for children than men did (22% of women selected a son, daughter or teen, compared with only 8% of men); and more women versus men said their in-laws were tough to buy for (14% of women; 9% of men).

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Sony & Nintendo War Drives 2006 Holiday Sales

Driven by strong sales of Sony’s “Playstation 3” and Nintendo’s “Wii” interactive gaming console, Americans are on track to use general purpose credit/debit cards and store credit cards to charge more than $135 billion in retail sales this holiday season. December 23rd will likely be the busiest shopping day of the season followed closely by December 22nd. While overall spending via all payment means is rising between 5.0% and 7.5%, the figure for payments cards will increase about 12.3% above last year. Signature debit card use is expected to soar by more than 25% while store credit cards will generate fewer sales this year, about 5% less. Credit card volume is running about 11% above last year. Consumers will likely rack up more than $85 billion in holiday sales on VISA, MasterCard, American Express and Discover credit cards.

Holiday Card Volume
(five weeks ending 12/25)
2004 2005 2006 Gain
Credit: $ 73.6 b $ 77.1 b $ 85.9 b +11.0%
Debit: $ 24.2 b $ 28.2 b $ 35.3 b +25.2%
Store: $ 16.0 b $ 14.7 b $ 13.9 b -5.4%
TOTAL $113.8 b $120.0 b $135.1 b +12.3%
Source: CardData (www.carddata.com)

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First Data Expects 34 Cents per Share for Q4

First Data expects fourth quarter earnings to be $0.33-$0.35 per share. For the full year 2006, the company expects to earn $1.08-$1.10 per share excluding items of $0.02, or $1.06-$1.08 per share from continuing operations on a GAAP basis. For the full year 2007, First Data announced that it intends to generate strong earnings per share from continuing operations of $1.20-$1.26, while making significant investments in the business that support its long-term strategy. First Data Corp. (NYSE:FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide.

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Wright Express Inks Imperial Oil Fleet Card Deal

ME-based Wright Express has signed a 10-year renewal agreement to provide private label fleet card services for Imperial Oil of Canada. The Imperial Oil fleet card programs, which includes Tiger Pro, Tiger Pro Plus, and Esso Business Card, provide small and large commercial and government fleet customers with customizable fleet reports, and convenient Imperial Oil Fleet Online account management, through the added convenience of Imperial Oil’s national network of approximately 2,000 Esso fueling locations throughout Canada. Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. Wright Express is a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry.

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FDC Renews Processing Deal with Lloyds TSB

First Data has inked a renewal of a major processing agreement with Lloyds TSB in the United Kingdom. One of the UK’s foremost retail banks, Lloyds TSB has been a client of First Data International since 1991. Today, First Data processes the bank’s UK credit card portfolio, as well as providing a range of customer facing and back office services. The new seven year agreement, effective 2008, between Lloyds TSB and First Data includes conversion of the Lloyds TSB card portfolio to First Data’s market-leading “VisionPLUS” processing platform.

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First Data Renews Advanta Processing Deal

First Data has renewed its agreement with Advanta for small business credit card processing services. Under the terms of the long-term contract extension, First Data will continue to provide comprehensive card processing services, including transaction processing, statement production and mailing, plastics personalization and fraud services for over 1 million Advanta customers. First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide. Advanta focuses on the small business market and related community, providing funding and support to the nation’s small businesses and business professionals through innovative product offerings and services.

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Contactless Payment Summit Has Heavy Hitters

IQPC’s “Contactless Payment Summit” is being held January 29th through January 31st in Miami Lakes, FL. It will feature the keynote address given by author David Evans. The conference will also feature Randy Vanderhoof, Executive Director for Smart Card Alliance, discussing the contactless payments phenomenon and the drivers in the industry. Other contactless payment industry experts speaking at the summit include: Peter Ho Vice President, Wells Fargo Card Services; James Diezemann, Vice President, Business Development, Mastercard Worldwide; Dana Klaboe, Director Merchant Marketing and Development, American Express; Rick Reese, Vice President of Architecture, Discover Financial; Niki Manby, Senior Vice President, VISA USA Product Innovation; and Alif Khawand Director, NFC Center of Excellence Technology Team, Motorola.

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BofA Picks Oberthur Card Systems for Fobs

Bank of America has chosen Oberthur Card Systems to provide contactless payment fobs as part of a trial to test radio frequency contactless payment companion devices. The Bank of America user acceptance trial program will distribute Oberthur’s VersaFOBs with MasterCard PayPass as companion devices to its traditional credit cards. VersaFOB is a contactless payment sub-card that snaps out of a full-size payment card and is inserted in a key-chain casing. Oberthur will supply the cards and fob casings, while Bank of America will handle personalization and fulfillment in-house. MasterCard has certified the Bank of America VersaFOB trial program. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

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