San Francisco-based Pay By Touch has launched the “Rapid Enroll Kiosk” to provide Internet enrollment for loyalty and rewards programs. With the new in-store, Internet-enabled enrollment kiosks, customers can sign up quickly, accurately and securely using an integrated ‘phone number look-up’ application. The Rapid Enroll Kiosk offers multiple financing options available for retailers of all sizes. Pay By Touch Personalized Marketing can create custom reward and loyalty programs for retailers with no established program or under-performing programs in need of revitalization. Pay By Touch (http://www.paybytouch.com) is wowing the world one touch at a time as the leader in biometric authentication, personalized marketing and payment solutions.Details
NOVA Information Systems has selected the VeriFone “Vx 610” portable payment solution with which to supply merchants wireless payment transactions utilizing Sprint Nextel’s “CDMA” service. VeriFone’s Vx 610 delivers blazing performance, high-end functionality, and exceptional ease of use – without tying customers to a fixed location. The Vx 610 is powered by a 32-bit processor to securely handle multi-application needs swiftly, and its modular design provides true investment protection, allowing easy adaptation to new technologies and alternate communications protocols. NOVA Information Systems, a leader in the payment processing industry is a wholly owned subsidiary of U.S. Bancorp. VeriFone Holdings, Inc. , a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow.Details
KS-based Euronet Worldwide’s reported that for the first time that the number of “Prepaid Processing” transactions processed exceeded the number of its EFT transactions. The Company posted third quarter revenues of $161.7 million, an 18% increase over 3Q/05. Net income also rose 17% to $10.4 million, compared to the third quarter 2005. “EFT Processing” posted revenues of $33.2 million, compared to $26.3 million for 3Q/05. Transactions processed were 119.1 million, compared to 94.4 million transactions in the same period last year. The EFT Segment completed the quarter with 8,419 ATMs owned or operated. “Prepaid Processing” reported revenues of $121.2 million, compared to $107.7 million for the third quarter of last year. Transactions processed were 121.9 million, compared to 94.6 million transactions in the third quarter 2005. The “Software Solutions” segment produced revenues of $7.3 million for the quarter. Combining all segments, transactions processed in the third quarter 2006 were 241.0 million compared to 189.0 million processed in the third quarter of 2005. For complete details on Euronet’s latest results visit CardData ([www.carddata.com]).
Wells Fargo Card Services and Wells Fargo Financial Bank reported third quarter outstandings of $12.05 billion, a 27% increase over the same period one-year ago. Third quarter volume for Wells Fargo Financial Bank nearly doubled to $1.05 billion. Volume rose 18% for Wells Fargo Card Services to $6.2 billion. At the end of the third quarter, Wells Fargo Financial Bank had 1,032,458 active accounts. Wells Fargo Card Services had 3,972,257 active accounts. Wells reported that charge-offs for the third quarter dipped to 3.38%, compared to 3.89% one-year ago. Wells also reported that it had 8.3 million active online customers, up 17% from prior year and 4.4 million bill payment and presentment customers, up 46% from prior year. For complete details on Wells Fargo Card Services and Wells Fargo Financial Bank third quarter results, visit CardData ([www.carddata.com]).
Issuer 3Q/06 3Q/05 CHANGE
WF Card Services (IA) $8.54b $7.33b +17%
WF Financial Bank (SD) $3.51b $2.19b +60%
Total $12.05b $9.52b +27%
Source: CardData (www.carddata.com)
Paris-based Oberthur reported that third quarter revenues increased slightly to 124.2 million euros. During the quarter Oberthur delivered 68 million microprocessor cards, breaking the record of 58.7 million cards set in the second quarter of this year. In the “Payment & Services” segment, Oberthur delivered over 17.7 million microprocessor cards during the period, a 17.8% increase compared to 2Q/06. Sequentially, revenue grew 12.0% to 24.5 million euros. Sales in the “Other Cards” segment (magnetic stripe cards, scratch cards and memory cards) hit 16.3 million euros, a 12.7% decrease on a year-on-year basis. This is mainly due to the expected decline of magnetic stripe cards in line with the EMV migration in Italy & Spain. For complete details on Oberthur’s third quarter performance, visit CardData (www.carddata.com)Details
MA-based Java’s Brewin’ and Tech Superpowers have selected Peppercoin’s small payments platform. To reach the broadest set of potential customers, Java’s Brewin’ and Tech Superpowers will deploy Peppercoin’s credit and debit card-based loyalty solution this quarter in order to reward customers for coming back more often and spending more with their preferred credit or debit card when they do. Peppercoin enables single-swipe enrollment to encourage customer adoption. Peppercoin is a small payments technology company transforming routine card transactions into new revenue opportunities.Details
Chase Bank USA, d/b/a First USA, has inked a multi-year cobranding credit card deal with Chicago-based optionsXpress Holdings. The new “optionsXpress Platinum VISA” offers points toward cash deposits in the cardholder’s brokerage account. Cardholders earn one point for every dollar spent on net retail purchases. For every 1,500 points earned, cardholders can redeem for a $15 deposit to their optionsXpress brokerage account. “optionsXpress” was ranked as the top online securities broker by Kiplinger’s Personal Finance in 2006 and by Barron’s in its last four annual surveys.Details
American Express has raised its limits on gift card purchases by corporations and small businesses. The AmEx “Gifting Solutions for Business” Web site now offers “AmEx Gift Cards” up to $15,000 or 600 cards, up from previous limits of $5,000 or 50 cards. For purchases above this amount AmEx directs prospects to American Express Incentive Services. To encourage corporations and small businesses to use the gift card Web site, AmEx is offering a promotional purchase price of $2.95 per card through December 3rd, to online customers using the promotional code 98AB3O3X at the time of purchase. Standard shipping charges apply.Details
A new poll shows that retirees find the information on their credit card statements to be more accessible, on average, than younger consumers. The research by Auriemma Consulting Group also found that consumers younger than 25 are challenged to get information from their credit card statements. As age of the respondent increases, so does satisfaction with card statements. Also, those without college degrees find their statements more user friendly than those with more education. About 72% of consumers who had not transferred a balance in the preceding 12 months rated statements as very easy to read whereas only 62% of those who had transferred balances said the same. Card users making four or more purchases a month rated summaries of monthly or annual usage lower than light users, with 67% of the former saying their statements provide clear summaries vs. 74% of the latter.Details
A new survey shows that 60% of credit unions now offer online banking, up from 45% two years ago. Nearly all offer the service for free. The “2006-2007 Credit Union Fees Survey” from the Credit Union National Association also revealed that 65% of credit unions that offer online banking also include a bill-pay function with their offering. Therefore, nearly 40% of all credit unions offer an online bill-pay program — up from 27% in 2004. Although the number of credit unions offering online bill-pay has continued to rise, the number of credit unions charging their members for this feature has dropped. Currently, only 33% of credit unions offering online bill pay charge for this service, down from 62% in 2004, and 81% in 2001.Details
First Data reported its first quarter without Western Union which was spun-off last month. Total revenue was 9% in the third quarter to $1.8 billion. For the third quarter, Commercial Services generated revenue of $1.1 billion, up 10% over 3Q/05, driven by transaction growth of 13%. Commercial Services’ operating profit was up 22% year-on-year to $294 million. Financial Institution Services produced revenue of $455 million, down 4% due to a large contract termination fee. Financial Institution Services’ operating profit was $96 million, down 2%. First Data International generated revenue of $332 million, up 45%, driven by organic transaction growth. First Data International’s operating profit was $32 million, up 9% over 3Q/05. First Data projects earnings per share in the range of $0.33 to $0.35 for the fourth quarter. The company also announced that it plans to repurchase $700 million of its shares by the end of 2007. For complete details on First Data’s third quarter performance visit CardData ([www.carddata.com]).
American Express reported that its U.S. Card Services division posted third quarter net income of $580 million, up 31% year-over-year, but down 6% sequentially. U.S. gross dollar volume rose 13.5% and the AmEx cardbase expanded 11.4% during the third quarter, compared to the year ago quarter. Marketing, promotion, rewards and cardholder services expenses increased 12% due to higher rewards costs, marketing and promotion activities. However, provisions for losses declined 3% due to lower write-offs which benefited from last year’s bankruptcy legislation and improved collections. Total worldwide card loans rose 16% to $58.5 billion. Delinquency on total card loans (30+ days) increased to 2.7% versus 2.4% one-year ago. Charge-offs on total card loans declined to 3.5% compared to 4.0% for 3Q/05. Card volume in the U.S. hit $101.7 billion, down slightly from the prior quarter. The total number of domestic cards-in-force grew by 1.4 million from the prior quarter to 46.8 million cards. For complete details on American Express’ third quarter results, visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
3Q/06 2Q/06 1Q/06 4Q/05 3Q/05 Ann Chng
Volume $101.7b 102.5 92.9 93.0 89.6 +13.5%
Cards 46.8mm 45.4 44.0 43.0 42.0 +11.4%
Source: CardData (www.carddata.com)