Fifth Third Processing Solutions has signed an agreement to process “MoneyPass” transactions for its financial institution customers. MoneyPass is the nation’s fastest-growing surcharge-free ATM Network, with more than 13,000 ATMs and 11 million cards committed. Genpass Technologies, which drives ATMs and processes cards in all 50 states, is listed in ATM and Debit Card News (July 25, 2003) as the second largest third party ATM driver in the U.S. and in The EFT Data Book (2003 edition) as one of the largest transaction processors in the U.S., driving approximately 31,000 ATMs located throughout the country.Details
Royal Philips Electronics has teamed with content and
service providers SMART System Technologies and 3united to deliver
mobile entertainment applications as well as loyalty and reward programs via Near Field Communication technology. NFC, developed by Philips and
Sony, securely links wireless connectivity with contactless smart card
technology, making it simple for consumers to access entertainment, information and payment services through their mobile phones. SST is a provider of merchant-centric point-of-purchase loyalty and coalition marketing applications and services. Based in Austria, 3united is one of Europe’s market leaders in premium short message services, m-commerce and mobile content solutions. 3united already provides NFC interfaces for more than 500 premium services for national and international content providers, media enterprises and mobile network operators. SST has developed customized software for NFC phones and has integrated this with its hosted “PowerPay” solution.
Nokia introduced a new product for secure mobile contactless payments and ticketing. The world’s first “Near Field Communications” product for payment and ticketing will be an enhanced version of the already announced “Nokia NFC” shell for “Nokia 3220” phone.
With the “Nokia NFC” shell for payment and ticketing, the consumer can
conduct local transactions with a mobile phone, simply by touching a
point of sales device or ticket gate. Consumer’s payment credentials, such as debit and credit cards, and transport tickets are securely stored in the integrated smart card chip of the “Nokia NFC” shell. The “Nokia NFC” shell for payment and ticketing is compliant and interoperable with contactless smart card infrastructure. In the first live NFC-based public transport ticketing showcase of its kind, Nokia 3220 mobile phones will be tested within the local bus network in
the city of Hanau, near Frankfurt, Germany.
Equifax has agreed to acquire APPRO Systems, a provider of automated credit risk management and financial technologies, for $92 million. APPRO designs and develops industry-leading technologies for consumer, commercial and retail banking lending operations. The privately held company generated more than $20 million in annual revenue last year and has more than doubled its revenue over the past two years. Equifax Inc. is a global leader in turning information into intelligence. APPRO Systems, Inc. is one of the lending industry’s leading providers of comprehensive, automated credit risk management and financial technologies for the Internet and traditional lending environments.Details
A new study on today’s young and newly affluent consumers has found that such consumers clip coupons more than other Americans, report embarrassment in being identified with wealth and status, and are more concerned about passing along honesty and integrity to their children than money or status. The VISA research on individuals aged 35-54 whose household income is at least $125,000 also found that two-thirds of “New Affluent” consumers surveyed say they regularly shop at club discount or warehouse stores. This compares to less than half of the general population sample doing the same. Almost four-in-five of “New Affluents” surveyed say they have a payment card that enables them to earn rewards and enjoy perks. This is significantly higher than the general population (38%). Sixty-five percent of “New Affluent” consumers surveyed say they like to do everything they can to maximize rewards on their payment cards.Details
Dallas-based ACE Cash Express has named Allen Klose, former SVP/ General Marketing Manager at Blockbuster Entertainment, as as chief marketing officer. ACE Cash Express, Inc. is a leading retailer of financial services, including check cashing, short-term consumer loans and bill payment services, and the largest owner, operator and franchisor of check cashing stores in the United States.Details
Credit card outstandings hit a record GBP 58.0 billion during December, about a 12% gain over one-year ago. Total net lending to consumers for December hit GBP 183.6 billion, an increase of GBP 600 million over November. Overall, consumer credit grew by GBP 1.5 billion or 0.8% in December, seasonally adjusted, 200 million stronger than the
increase in November. The three-month growth rate fell to 10.1% from 10.4% in November but the twelve-month growth rate rose to 12.1% from 11.7% in November. Gross advances were GBP 18.1 billion, GBP 0.5 billion
weaker than the average in the three months to November. The Bank of England continues to maintain its benchmark interest rate at 4.75%.
Global credit card profits among the top issuers soared by more than 23% last year. Citigroup, the largest issuer, grew its profits by nearly 31% to $4.7 billion. The top seven issuers posted after-tax profits of $17.18 billion last year, compared to $13.96 billion in 2003.
GLOBAL PROFITS HISTORICAL
2002 2003 2004 Y/Y CHNG
Citigroup $3.08b $3.59b $4.70b +30.9%
American Express $2.14b $2.43b $2.85b +17.3%
MBNA $1.77b $2.34b $2.68b +14.5%
JPM Chase $1.83b $1.84b $1.98b + 7.6%
HSBC $1.56b $1.67b $1.84b +10.2%
Bank of America $0.62b $0.95b $1.59b +67.4%
Capital One $0.90b $1.14b $1.54b +35.1%
TOTAL $11.90b $13.96b $17.18b +23.1%
Source: CardData (www.carddata.com)
PayPal has named Scott Thompson, formerly of VISA’s Inovant, as SVP/CTO. Thompson, who brings more than 20 years of experience to the position, will report to PayPal President Jeff Jordan and eBay (Nasdaq:EBAY) Chief Operating Officer Maynard Webb. Thompson will oversee information technology, product development and architecture for PayPal, which transacted more than $18 billion in total payment volume and processed about 340 million payments in 2004. PayPal, an eBay company, enables any individual or business with an email address to send and receive payments online securely, easily and quickly.Details
Credit card outstandings hit a record GBP 58.0 billion during December, about a 12% gain over one-year ago. Total net lending to consumers for December hit GBP 183.6 billion, an increase of GBP 600 million over November. Overall, consumer credit grew by GBP 1.5 billion or 0.8% in December, seasonally adjusted, 200 million stronger than the increase in November. The three-month growth rate fell to 10.1% from 10.4% in November but the twelve-month growth rate rose to 12.1% from 11.7% in November. Gross advances were GBP 18.1 billion, GBP 0.5 billion weaker than the average in the three months to November. The Bank of England continues to maintain its benchmark interest rate at 4.75%.
U.K. CREDIT CARD OUTSTANDINGS
Jan 04: 52.1
Feb 04: 52.7
Mar 04: 53.7
Apr 04: 54.1
May 04: 54.2
Jun 04: 55.0
Jul 04: 55.8
Aug 04: 56.4
Sep 04: 56.5
Oct 04: 57.1
Nov 04: 57.6
Dec 04: 58.0
SOURCE: Bank of England
For the first time, MasterCard International has topped $400 billion in gross dollar volume and four billion purchase transactions in a single quarter. The world’s second largest payment card network, by GDV, also neared the $1.5 trillion gross volume and 15 billion purchase transactions milestones for a full-year. MasterCard posted $401.2 billion in worldwide gross dollar volume in 4Q/04, a 12.5% increase over 4Q/03. Purchase transactions for the fourth quarter hit 4.034 billion compared to 3.597 billion one-year ago. For the full year of 2004, MasterCard GDV was $1.455 trillion, a 10.6% gain over 2003. Purchase transactions for the year totaled 14.715 billion compared to 13.202 billion for the prior year. Globally, MasterCard has 679.5 million cards-in-force linked to 576.0 million accounts. The number of acceptance locations worldwide at year-end 2004 was 24.6 million compared to 21.9 million one-year ago. For complete details on MasterCard’s fourth quarter results visit CardData ([www.carddata.com]).
Revolving consumer credit edged up modestly by $900 million during December at an annual growth rate of 1.4%. According to the Federal Reserve, Americans owed $790.5 billion in revolving credit at the end of December, compared to $789.6 billion for November. One-year ago revolving credit stood at approximately $759 billion. Bank credit card debt (excluding store and gas credit cards) at the end of the fourth quarter was $687 billion, or roughly 87% of total revolving credit, according to CardData ([www.carddata.com]). At the end of December, Americans were $2103.7 billion in debt, excluding home mortgages.
REVOLVING CREDIT HISTORICAL ($billions)
Dec 04 Nov 04 Oct 04 Sep 04 Jun 04 Mar 04 Dec 03
GRWTH: 1.4% 0.8 6.0 -1.9 10.4 -1.9 5.4
$OWED: $790.5 789.6 789.0 785.1 765.2 768.9 758.7
Source: Federal Reserve; revised figures as of 2/07/05;
For complete historical data visit CardData (www.carddata.com)