Contactless specialist, On Track Innovations, reported second quarter revenues of $10.3 million, a 32% jump over 2Q/05. The Company’s net loss dropped to $2.0 million for the second quarter, compared to $3.0 million in the year ago period. During the quarter, MasterCard, the Metropolitan Transportation Authority, and Citibank announced the beginning of a six-month contactless payment trial in select New York City subway stations with pre-selected Citi credit card and Citibank customers. The new payment tags leverages technology from OTI. Also, Chinatrust Commercial Bank, one of the largest credit card issuers in Taiwan, LAKS, a well-known Austrian watchmaker and OTI are supplying payment watches as part of “2006 FIFA World Cup” promotion for MasterCard “PayPass.” OTI says it expects total revenue in the second half to be slightly higher or about the same as the first half, owing to a slight delay in the banks’ roll-out schedule for their internal reasons, which will affect OTI’s payments business. For complete details on OTI’s latest performance visit CardData (www.carddata.com).Details
The Industrial and Commercial Bank of China has signed a deal with Lipman for a $2.5 million follow-on contract for “NURIT 8320”
and “NURIT 8000” POS terminals and “NURIT 222” PIN Pads. CNPC will be using these additional terminals to extend the project from the initial 8,000 petrol stations to more than 14,000 stations, resulting in one of the largest POS terminal deployments in China to date.
First Data International has signed an agreement for the
acquisition of Argencard. Buenos Aires-based Argencard is a provider of
card issuing and merchant acquiring processing services supporting more
than 70 banks with nine million cardholders and over 150,000 active
merchants. The company is an acquirer of MasterCard, Maestro and JCB in Argentina and Uruguay, and also delivers, through its subsidiary POSNET, point of sale services for more than 60,000 merchants and 75 credit card issuers of private label cards. The deal is expected to close by year end.
Bankruptcy filings have now risen to about 14,000 filings per week compared to approximately 8,000 filings per week six-months ago. One-year ago filings averaged 35,000 per week level, prior to the full implementation of the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” During July filings neared 63,000, the highest level since October when the reforms went into effect. The number of filings in the first quarter is the lowest number of quarterly filings in the last 20 years.
Nov 05: 21,457
Dec 05: 32,480
Jan 06: 34,411
Feb 06: 39,636
Mar 06: 42,724
Apr 06: 44,989
May 06: 43,780
Jun 06: 54,937
Jul 06: 62,986
Source: CardData (www.carddata.com)
A new survey shows that 57% of consumers spend $3 or less in monthly fees for banking services. The poll by the American Bankers Association also found that within that group, 43% said they pay no monthly fees at all. The research found that 12% pay between $3 and $6; 6% between $6 and $8; 8% between $8 and $10; and 15% said they pay more than $10 per month. The survey of 1,000 consumers was conducted for ABA by Ipsos-Reid on July 10th to 12th.Details
While the frequent flyer programs run by discount airlines pale in comparison to the programs run by American, United and Delta, NY-based JetBlue is enabling cardholders of its American Express co-brand to extend the life of their “TrueBlue” points. Users of the “JetBlue Card from American Express” can automatically extend the life of their points by 12 months each time they purchase as little as $200 on their “JetBlue Card” or by using the “JetBlue Card” to purchase JetBlue travel, before current points expire. AmEx also announced it will automatically extend the expiration date of every single JetBlue cardholders’ “TrueBlue” points through August 16 2007. The “JetBlue Card from American Express” was launched in July last year. The card offer “Award Dollars” that can be automatically transferred to a Cardholder’s “TrueBlue” account and then redeemed for award flights on JetBlue. Other discount carriers, like Airtran, typically have a 12-month expiration on loyalty miles.Details
First Data International has signed an agreement for the acquisition of Argencard. Buenos Aires-based Argencard is a provider of card issuing and merchant acquiring processing services supporting more than 70 banks with nine million cardholders and over 150,000 active merchants. The company is an acquirer of MasterCard, Maestro and JCB in Argentina and Uruguay, and also delivers, through its subsidiary POSNET, point of sale services for more than 60,000 merchants and 75 credit card issuers of private label cards. The deal is expected to close by year end.Details
A new research report has found that the credit card industry is rapidly changing. The study says credit card issuers need to be cognizant of the influences as they set their strategies, as they fight a marketing battle on multiple fronts. However, Mercator Advisory says there remains a wide array of opportunities for credit card issuers wishing to take on the market’s challenges. The report identifies eleven market-related conditions that contribute to slowing credit card growth, including product, consumer behavior, and macroeconomic influences. Some changes can be viewed as primarily evolutionary in nature and moving primarily in one direction, while others may be cyclical and tied to the broader economic environment. In addition to reviewing market factors driving today’s credit card marketplace, the report reviews a number of strategic tools that may be used by credit card issuers to revitalize their growth in originating new accounts and building volume with existing accounts.Details