OR-based AssetExchange reports it recently brokered the sales of ten credit union credit card portfolios. Atlanta-based InfiCorp signed purchase and agent deals with TN-based Old Hickory CU, CA-based Sun Community FCU, NH-based Triangle CU, CO-based Community Financial FCU, and, WI-based Guardian CU. Dallas-based TNB Card Services purchased and formed partnerships with ID-based Advantage Plus FCU and CT-based Windsor Locks FCU. AssetExchange would not disclose the buyer of the other three portfolios. AssetExchange recently released a report that showed the penetration of credit cards among credit union members has declined 19.0% to 18.5% year-on-year. (CF Library 11/30/04)Details
After agreeing to acquire all of Unibanco’s interest in Credicard, Citigroup and Banco Itau have no decided to divide equally the assets of Credicard, without any financial consideration paid by either party. As a result of this agreement Citibank Brazil will
add more than 3.8 million cards, bringing Citibank’s total number of
Brazilian credit cards to approximately 4.7 million. In November 2004, Citibank Brazil, Banco Itau and Unibanco announced the restructuring of the ownership of their jointly owned Credicard Group, including the purchase by Citibank and Itau of Unibanco’s interest in the Credicard card issuing business, and the purchase by Itau of Citibank’s and Unibanco’s shares in Orbitall, the card processing and servicing business. Redecard, the merchant acquiring business, maintained its ownership structure, with Citibank, Itau and Unibanco each owning 32%, and MasterCard owning 4%. After the transition is complete, which is expected to occur later in 2005, Citibank Brazil and Banco Itau will manage their respective credit card operations in the manner that best supports each company’s distinct business strategies.
After struggling through the recent recession, American Express has outpaced VISA and MasterCard in global card volume growth for the past two years. Driven by growth in the U.S. small business segment and its Global Network Services partnerships, AmEx’s worldwide GDV surged by more than 18% last year, compared to VISA’s 10.5% growth rate and MasterCard’s 9.4% gain. (VISA and MasterCard 2004 gains may be slightly higher when data are released this month.) Since year-end 1999, MasterCard’s GDV has climbed 91%, while VISA’s GDV has grown by 81% and American Express’ annual GDV has increased by 64%. VISA leads with a CAGR of 14.87%, compared to MasterCard’s 13.84%, and American Express’ 10.37%. However, the overall trend shows that VISA and MasterCard have been losing momentum globally since the recession of 2001. Last year, American Express posted GDV of $416 billion, compared to $352 billion for 2003. For the 12 months ending September 30th, VISA’s global GDV was $3.26 trillion, compared to $2.95 trillion for the prior period. During the same period MasterCard reported GDV of $1.39 trillion, compared to $1.27 trillion for 2003. The VISA and MasterCard figures do not include some online debit volume.
GLOBAL GDV BY NETWORK
NETWORK 2000 2001 2002 2003 2004
VISA $1.93t $2.30t $2.64t $2.95t $3.26t**
MasterCard $0.86t $0.99t $1.14t $1.27t $1.39t**
American Express $ 297b $ 298b $ 311b $ 352b $ 416b
t- trillion b-billion
* does not include Maestro ** 12-months ending 9/30/04
2000 2001 2002 2003 2004 5YR CAGR
VISA 18.4% 19.2% 14.9% 11.7% 10.5% 81.0% 14.87%
MasterCard 17.8% 15.1% 15.2% 11.4% 9.4% 91.2% 13.84%
American Express 16.9% 0.3% 4.3% 13.2% 18.2% 63.8% 10.37%
Source: CardData Platinum (www.carddata.com)Details
Metris Companies announced that it has retired $900 million of asset-backed securitization debt that is scheduled to mature in May. Metris recently announced plans to make another prepayment of corporate debt of the past three months, paying $50 million on senior notes later this month. This is the third prepayment of corporate debt Metris has announced in the past three months. The Company made a $50 million prepayment on November 23, 2004, and a $25 million prepayment on December 22, 2004 of its senior secured credit agreement maturing in 2007. Metris reported last week that it made a full-year profit of $33.7 million in 2004. (CF Library 1/26/05; 1/27/05)Details
Hypercom has hired Bill Mardis, former Director of Sales & Marketing for VeriFone, as VP/Value-Added Services, and has also hired Dan DeBraal, former AVP/Merchant Products for Fifth Third Processing, as VP/Processor Sales. Mr. Mardis will manage the global payment technology leader’s North America Value-Added Channel. He will also manage the company’s authorized repair center program and parts sales. Mr. DeBraal will focus on processor product development and certification. He will also serve as an internal product development/certification support coordinator and liaison. Hypercom Corporation is a leading global provider of electronic payment solutions that add value at the point-of-transaction for consumers, merchants and acquirers, and yield increased profitability for its customers.Details
Payment card transactions reached 584.6 million in December, a 12.6% gain over one-year ago. According to figures released by APACS, debit card purchases led the growth, with a 15.8% growth in transactions to 380 million. Credit card transactions grew by 7.1% to 205 million.
Despite reports of a below-expectations Christmas trading period, total
retail sales over Christmas were estimated at GBP30.8 billion, 3% higher than December 2003. Payment cards accounted for 61.5% of all retail sales, and December’s high street purchases on plastic were the highest ever recorded, up 11% on December 2003 figures.
The Washington Trust Company has been awarded a three-year ATM contract with The State of Rhode Island to permit any Rhode Island municipality to place Washington Trust ATMs in their public buildings and schools. The agreement also allows any Rhode Island municipality to place Washington Trust ATMs in their public buildings and schools. The Washington Trust Company is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including trust and investment management, through its 16 branch offices located in Rhode Island and southeastern Connecticut.Details
Dallas-based TransFirst has promoted Joni Floyd from president of its Shared Services division and interim COO, to COO. In this new position, she will continue to focus on identifying and implementing key technologies and processes, as well as lead the company’s efforts to streamline processes between its core business operations and newly acquired business units. Floyd’s career in the bank data services and related e-commerce industries spans more than 24 years, during which she played an active role in the development of the ATM industry. TransFirst offers a first-rate suite of products and services and customized processing programs uniquely tailored for the special business needs of financial institutions, independent sales organizations and agents and its referral and reseller partners.Details
Houston-based Cardtronics has signed an agreement with PA-based PNC Bank to brand more than 150 ATMs deployed in Walgreens stores in a five-state area. The multi-year branding deal provides PNC Bank the opportunity to brand ATMs that are owned and operated by Cardtronics in Walgreens stores in Ohio, Kentucky, Indiana, New Jersey, and Pennsylvania. Cardtronics will have operational and management responsibility for the ATMs and PNC Bank cardholders will have convenient surcharge-free access to the ATMs. Cardtronics is the nation’s largest independent owner/operator of ATMs with a network of over 25,000 locations operating in every major U.S. market and in all 50 states.Details
GZS Gesellschaft fur Zahlungssysteme has enhanced its processing portfolio with dynamic currency conversion and an ATM operator model. The dynamic currency conversion function is aimed particularly at
acquirers whose contractual partners are active in any market sector and
frequented regularly by non euro-zone cardholders. The new function
allows such merchants to offer their customers payment conversion and
processing in their local currencies with immediate effect. GZS will
initially support conversion into US dollars, pounds sterling, Swiss
francs, Danish krones, Swedish kronas and Japanese yen. The original
transaction amount will continue to be settled with the contractual
partner in the agreed settlement currency. A newly developed “ATM operator model” also allows acquirers to offer ATM operators an alternative business model which differs from the prevailing institutional remuneration model.
San Diego-based Cubic Corporation has created a new business unit called Cubic Parking Systems. The new subsidiary follows the acquisition of the assets of Vancouver-based Lexis Systems and Quebec-based Traf-Park. With the combined installed customer base of Lexis and Traf-Park, Cubic Parking Systems has more than 2,200 pieces of equipment installed for almost 200 customers in the U.S., Canada and Mexico. The North American parking equipment and system control market is more than $200 million per year and is poised for growth as municipalities move away from single-space, coin-operated on-street meters to multi-bay meters that take contactless smart cards as a form of payment.Details