Total credit card balances exceeded A$30 billion for first time during December in Australia. In addition, gross dollar volume for purchases on credit card and charge cards in December soared by more than 17% from the prior month, according to CardFlash International. Over the past twelve months, credit card balances have increased more than 14%. Based on historical data from the Reserve Bank of Australia, revolving balances topped $A20 billion for the first time during December. The latest data show that revolving balances increased to A$20,224,000,000 during December, up 12% from one-year ago. During December, Australians charged A$15.1 billion in purchases on credit/charge cards compared to A$13.7 billion one-year ago. At the end of December, consumers owed A$30.2 billion on credit cards versus A$26.5 billion for December 2003. Card credit limits reached A$78.0 billion at the end of December, compared to A$69.4 billion for December 2003. There are 11.6 million credit card and charge card accounts in Australia, compared to 10.9 million one-year ago.Details
Sales of credit union credit card portfolios with at least $1 million in assets rose 9.5% last year to $459 million. Over the past three years, more than $1.1 billion has changed hands with an ever increasing number of credit unions deciding that an agent partnership was the best way to meet member needs and free up resources for other core products. According to New Hampshire-based Brookwood Capital, 67 credit unions with credit card portfolios of over $1 million in outstanding balances sold their portfolios in 2004. The fourth quarter was particularly active, with 19 portfolio sales closed. On average, the size of the portfolios sold in 2004 was $6.9 million, down from $7.1 million in 2003.
Year Portfolios Sold Outstandings Size
2002 41 $285 million $7.0 million
2003 59 $419 million $7.1 million
2004 67 $459 million $6.9 million
Source: Brookwood Capital
Arizona-based eFunds reported fourth quarter net income of $11.3 million, compared with net income of $10.1 million in the fourth quarter of 2003. Net revenue decreased $4.9 million to $130.5 million in the fourth quarter of 2004, compared to net revenue of $135.4 million reported in the fourth quarter of 2003. This decrease was principally due to the sale of the Company’s ATM portfolio in November. eFunds recorded net revenue of $552.1 million for the year, compared to net revenue of $532.1 million recorded in 2003. eFunds expects full-year net revenues for 2005 to increase approximately 8% to 12% on a combined organic and acquisitive basis over the $431 million baseline revenue achieved across eFunds’ three remaining segments — electronic payments, risk management and outsourcing — in 2004. The Company expects net income to increase 17% to 22% in 2005 over the net income of $40.8 million reported in 2004. For complete details on eFunds latest results, visit CardData ([www.carddata.com]).
Oregon-based Infone has signed an agreement with Vesdia Corporation to make Infone services available to members of Vesdia-managed credit card loyalty and reward programs. Metro One Telecommunications, Inc. is the leading developer and provider of Enhanced Directory Assistance and other enhanced telecom services. Infone is Metro One’s premium personal assistant telephone service.Details
The Parcxmart smart card payment platform has gone live in stores in the Japantown section of San Jose, California, enabling merchants to load value onto these cards using VeriFone “Omni 3750” POS terminals for in-store purchases and to integrate for future use to make parking meter and garage payments. Parcxmart is an electronic payments company specializing in smart card payment solutions, with its initial focus on municipal parking operations and local merchant communities.Details
A new study has found that commercial cards have been a major driver of growth for the U.S. card market with double digit growth rates over the last decade. According to the Mercator report, commercial card volume reached $264 billion by the end of 2003. However, the market potential is still far from being tapped. According to VISA’s new “Commercial Consumption Expenditure” index, the U.S. commercial spending will reach $14.3 trillion this year. Mercator says barriers to increasing the use of commercial cards can be removed by delivering data-rich/process -aware solutions such as the American Express “Variance Report,” Bank of America “Payment Manager” and MasterCard “e-P3.”Details
Texas-based Reward Enterprises’ unit, Consumer’s Choice Financial Services, has launched Consumers Solutions to conduct a consumer debt recovery business and has hired Bennet Blow to manage operations. Consumers Choice is a consumer financial services company with operations in consumer debt-acquisition and many facets of sub-prime consumer lending.Details
Dallas-based TransFirst has created a new product division to roll-out a new check processing services program, prepaid and stored-value cards, a fleet card program and an insurance eligibility program. The first product announcement will showcase TransFirst’s proprietary product, Transaction Central, a Web-based centralized payment-processing engine that delivers flexible, comprehensive and end-to-end processing solutions to merchants of all sizes. TransFirst is a provider of transaction processing services and payment enabling technologies and currently processes approximately $20 billion in annual sales volume for more than 160,000 merchants and more than 760 financial institutions.Details
Euronet Worldwide reported that consolidated revenue for the
fourth quarter jumped 61% to $113.1 million, compared to one-year ago.
Net income for the year increased 56% to $18.4 million. The EFT Processing Segment reported annual revenues for 2004 of $77.6 million, up 47% over 2003. The EFT segment completed the year with 5,742 ATMs owned or operated, compared to 3,350 ATMs at the end of the 2003 and to 5,404 ATMs at the end of the third quarter 2004. The segment processed 232 million transactions for the full year 2004 and 73.4 million transactions in the fourth quarter 2004, compared to 115 million and 33.2 million transactions for the same periods last year, respectively.
The Prepaid Processing Segment reported annual revenues for 2004 of
$289.8 million, compared to $136.2 million reported for 2003. Total transactions processed by the Prepaid Processing Segment increased
to 65.8 million for the fourth quarter 2004 compared to third quarter
2004 transactions of 59.8 million and to fourth quarter 2003
transactions of 39.8 million. Total transactions processed during 2004
increased to 229 million, compared to 101 million for 2003. The Prepaid
Processing Segment processes electronic point-of-sale prepaid
transactions at more than 175,000 point-of-sale terminals across more
than 85,000 retailer locations in Europe, Asia Pacific and the U.S. For complete details on Euronet’s latest results visit CardData (www.carddata.com).
Four Icelandic banks have partnered with Diebold. ATMs manufactured by NCR are now powered by Diebold terminal software at Iceland’s Landsbanki, Kauphthing Bank, Islandsbanki and the Savings Bank Datacenter. Previously, Icelandic banks operated in an NCR hardware and software environment. The solution was developed using Diebold’s “Agilis Power” software toolkit. Hugur, the software house that develops all Icelandic ATM applications, used “Agilis Power” to develop a custom application that will run on approximately 250 NCR terminals throughout the country. The addition of Agilis also enabled the banks to make their ATMs compliant with EuropayMasterCardVisa.Details
New York-based Universal Cash Express has teamed with Cardavenue.com, an online “trading post”, to enable consumers to sell or trade its “Send Roses” gift cards for free. Cardavenue.com makes it possible for consumers to buy, sell or trade gift cards. Universal Express, Inc. owns and operates several subsidiaries, providing the private postal industry and consumers with value-added services and products.Details
Hilversum-based, specialist retailer, Hunkemoller, has selected
TSYS to supply a retail gift-card program. The three-year agreement provides Hunkemoller with denominated gift cards that are available in amounts ranging from EUR 5 to EUR 25. The cards are available now in 130 stores in The Netherlands. The gift cards will be available in Hunkemoller’s stores in France, Germany and Belgium later this spring, with plans to include stores in Denmark later this year, for a total of 300 stores before year end. In the near future, Hunkemoller plans to integrate the gift-card program with its Web site, allowing the card to be purchased or reloaded and balances obtained online.