Upwards of 60 million Americans went online Monday to shop for the holidays, charging nearly $1 billion on payment cards. Early statistics show that “Cyber Monday” spending was up 26% as traffic rose more than 30% for most retailers. VISA USA’s “SpendTrak” reports consumers charged about $505 million on the Internet using its cards, a 26% jump over the same day in 2004. VISA says between November 1st and 28th, consumers charged over $9.9 billion online using VISA, with an average ticket of $87.85. VISA also noted that the previous high for the 2005 holiday season was on November 15th when consumers spent approximately $461 million. eBay’s Shopping.com reported a 37% increase in year-over-year traffic on “Cyber Monday.” More than 3.4 million unique shoppers visited the site Monday. Among the hottest products for this year: Apple iPod Nano and Panasonic 42 inch HDTV Plasma TV. The NRF’s Shop.org said it estimated that 58.9 million consumers shopped online Monday.Details
The CO-OP Network has hired Leah Work, formerly with GenPass as National Relationship Manager. Work joins CO-OP Network after spending four years at GenPass, where she managed marketing implementation projects and developed strategic business plans and procedures to establish an ISO client relations department. During her time at GenPass, Work also managed technical sales for financial institutions and ISO client nationally. CO-OP Network is wholly-owned by its credit union shareholders and provides volume discounts on products and services that include risk management as well as debit and deposit access.Details
A new report has found that more than 20% of college students surveyed have decided to avoid potential credit card pitfalls by not obtaining even one credit card. More than 30% of students have just one card, according to the research by Atlanta-based NetBank. More than half of the students who have credit cards said they pay their credit card statement in full each month and don’t carry a balance. NetBank also says the survey showed that the first thing students look at when selecting a bank is the amount of fees charged for not maintaining a minimum balance. Their second biggest concern is belonging to a bank that provides easy access to fee-free ATMs.Details
MasterCard shareholders yesterday approved changes to the governing documents of MasterCard, the proposed initial public offering and a new long term incentive plan. More than 85% of MasterCard’s outstanding shares were voted at Monday’s special meeting, the highest quorum ever achieved by the company. Each of the proposals was approved by over 94% of the votes cast except for the incentive plan proposal, which was approved by over 91% of the votes cast. The new corporate governance and open ownership structure includes the appointment of a new Board of Directors comprised of a majority of independent directors, the transition to a publicly traded company and the establishment of a charitable foundation which will hold 10% of the company’s shares. In September, MasterCard announced it was planning to go public in early 2006 by selling 49% in an IPO, raising about $2.5 billion. The card association said it will use the IPO’s proceeds to redeem stock from its existing 1,400 financial institution shareholders and plans to retain $650 million for litigation and marketing expenses. (CF Library 9/1/05; 9/16/05)Details
Rosh Pina-based On Track Innovations posted revenues for the third quarter of $12.1 million, a 120% jump over the same period of last year.
The Company says the increase in revenues represents the rapid
advancements in the contactless market around the world and in
particular the U.S. market, where it will deliver contactless solutions
for more than ten million payment cards in 2005. During the third
quarter, OTI completed a series of strategic acquisitions in China,
increasing manufacturing capacity to 1.5 million units per week by the
second half of 2006. The Company also completed a $22.2 million private
placement of new equity financing with institutional investors from the
US, Switzerland and England. For complete details on OTI’s third
quarter performance, visit CardData (www.carddata.com).
Payroll card competition is ramping-up with the release of a new VISA card targeted at the nation’s 22 million unbanked households. The new “ethos VISA Debit” card offers consumer-activated fraud prevention features, including the ability to turn the account on and off as well as the ability to receive text messages for purchases, deposits and withdrawals. The new card carries an enrollment fee of $6.95 and a monthly fee of $3.95. The card is being marketed by WA-based Affinity Card Systems and is issued via West Coast Bank. The electronic deposit of funds is through MoneyGram International. ACS plans to offer branded cards through employers, staffing agencies, unions and government agencies.Details
MasterCard and Arby’s have launched a December promotion for its 1,000 U.S. restaurants whereby customers using a MasterCard credit card are automatically entered for a chance to win $25,000 in MasterCard gift cards. There is no purchase necessary to win and participation is available in-restaurant or via mail. Arby’s Restaurant Group, Inc. is an Atlanta-based company that is the franchisor of the Arby’s restaurant system, which consists of nearly 3,500 restaurants worldwide.Details
Pay By Touch has named Gus Spanos as EVP of business development after he recently led a $130 million fundraising effort. Spanos brings a wealth of experience in finance and operations. Prior to joining Pay By Touch, he was a partner at JH Partners where he helped raise the firm’s inaugural institutional private equity fund that consisted of the nation’s top five university endowments. In addition to his eight years in private equity, Spanos began his career at Goldman, Sachs & Co. and later spent seven years as an operating executive at several private equity sponsored companies. Spanos earned his MBA degree from The Stanford Graduate School of Business and his AB degree from Harvard College.Details
Update software AG has established a Customer Relationship Management
partnership with Heidelberg-based American Express Finanzmanagement. The credit card company has added
personal advisory services in the areas of liquidity, provisioning and
asset management to the range of financial services it holds available
for cardmembers in Germany. By the end of 2005, some 100 financial
advisors at 16 branches of AmEx Finanzmanagement will work with update’s
CRM system. Via the Web-based user interface, they will be able to
access the centrally stored customer data from their respective
workplaces. The marketing department will use the CRM system primarily
for analytical tasks such as controlling or customer value calculations,
and the results will flow back directly into the operational process.
update software is one of Europe’s leading providers of CRM solutions
with revenues of EUR 15.3 million.
San Ramon, California-based AccountNow has expanded its “Vantage Debit MasterCard” product with a credit building feature which reports bill payments to the PRBC credit bureau. The free credit builder is a new feature of the AccountNow Pay Anyone Bill Pay service. It provides the millions of unbanked or underbanked U.S. consumers a credit builder product that allows them to demonstrate their credit worthiness by paying ordinary bills on time. The service is free of charge to all new and current AccountNow members who use the AccountNow Bill Pay service. The AccountNow Bill Pay service is the first such service of its kind. PRBC is a national credit bureau with a community economic development mission.Details
First Data and POS solutions provider, MICROS-Fidelio, have teamed to transform the management of EFTPOS payments within Australia.
The solution provides commercial benefits for operators within the
hospitality and travel industry sector and modernizes the way bill
payments are made. The integrated EFTPOS system eliminates the
requirement for dedicated EFTPOS terminals and delivers
additional functionality, such as dynamic currency conversion.
Australia’s seafood restaurant Doyle’s was the first site to go live with the system.
New Jersey-based Financial Service Centers of America and Texas-based NetSpend report they have opened 20,000 accounts and $5 million in deposits in the first six months for its “FiSCA’s All-Access Savings Program” which is linked to a VISA or MasterCard debit card. The All-Access Savings Program is a savings product based on an interest-bearing, federally insured account linked to a prepaid debit card. The program is designed to reach the millions of Americans who do not have bank accounts, or who have limited relationships with traditional financial institutions. FiSCA is the national trade association for more than 5,000 individual financial service centers across the United StatesDetails