NE-based Transaction Systems Architects reported revenue for the quarter ending December 31st of $80.6 million, an 8.9% increase from the same quarter last year. During the quarter, the Company added ten new customers while maintaining a worldwide presence in 76 countries. ACI Worldwide, the Company’s largest business unit, added four new customers during the quarter. Transaction Systems Architect’s software facilitates electronic payments by providing consumers and companies access to their money. Its products are used to process transactions involving credit cards, debit cards, secure electronic commerce, mobile commerce, smart cards, secure electronic document delivery and payment, checks, high-value money transfers, bulk payment clearing and settlement, and enterprise e-infrastructure.Details
Axalto, formerly Schlumberger Smart Cards, reported that fourth quarter revenue for financial cards rose 22% to $51.7 million. Microprocessor card sales were also up 22% to 18.6 million cards for 4Q/04. Overall revenues for the quarter were $291.5 million, a 30% increase over the year ago quarter. POS terminal revenues for 4Q/04 rose 43% to $22.4 million, but down 15% from the prior quarter. Axalto says the terminal growth is driven by strong sales in the EMEA region, derived from a growing number of EMV-related supply contracts. For the full year, POS terminal sales were up 66% in the EMEA region. For complete details on Axalto’s fourth quarter performance, visit CardData ([www.carddata.com]).
Financial Cards Revenue
4Q/03: $42.3 million
1Q/04: $49.4 million
2Q/04: $48.0 million
3Q/04: $47.1 million
4Q/04: $51.7 million
Source: CardData (www.carddata.com)
Lumping retailer-issued gift cards with bank-issued prepaid cards will likely have negative consequences for consumers and businesses. TowerGroup has released new research that suggests the one-size-fits-all approach to prepaid regulation could stifle the growth of certain payment products, particularly bank-issued prepaid cards that include gift cards, payroll cards, and prepaid cards linked to healthcare flexible spending accounts. TowerGroup says regulators and legislators lack accurate definitions and have failed to develop a harmonious regulatory framework around the valid consumer benefits of such products. TowerGroup notes that more than 100 stored value bills were introduced at the U.S. state level in the first half of 2004.Details
VASCO Data Security International e-banking solution provider DataDesign have teamed to offer secure e-banking to the German market.
Under the terms of the agreement, VASCO’s “Digipass” and “VACMAN
Controller” products have been integrated into DataDesign’s e-banking platform. The combination of DataDesign’s profound knowledge of the German market and VASCO’s worldwide experience will result in a state-of-art e-banking solution.
TSYS has extended its current agreement with Bank of America, which includes all consumer- and commercial-credit VISA and MasterCard accounts issued by Bank of America, as well as the recently acquired portfolio of FleetBoston, through 2014. TSYS also processes Bank of America’s merchant accounts through Vital Processing Services, a joint venture with Visa U.S.A. TSYS recently announced an agreement with Visa to acquire its 50-percent equity stake in Vital Processing. The acquisition is expected to close in the first quarter. Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. TSYS (NYSE: TSS) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.Details
NY-based Universal Express has inked a deal to offer Cardtronics ATMs via a strategic alliance with Express ATM Northeast. Express ATM Northeast is the leading ATM distributor for Cardtronics of Houston, Texas. Jack Pacheco, President of Express ATM has been in the ATM business since 1998 and has negotiated several major ATM programs, most notably Irving Oil Company and Tedeschi Stores, a convenience store chain with over 200 locations in New England. 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
A three-month special balance transfer promotion has paid off for 34 credit unions, resulting in above average transfers. Dallas-based TNB Card Services says the fall promotion, which ran from September through November, produced $4.917 million in balances from 1,600 cardholders, for its CU clients. The average transfer was $3,069 compared to an industry average of about $2,500. Dallas-based Credit Union of Texas, boasted the highest average transfer, at $3,757. The overall response rate to the offer was 2.25%. Dallas-based Neighborhood Credit Union had the highest response rate, at 3.38%. Depending on the rate each credit union selected, transfers were offered at anywhere from 0% to 7.9% APR, an offer good through February 2005. The offer was mailed in August. TNB Card Services serves more than 400 credit unions.Details
British Columbia-based Coast Capital Savings Credit Union has
introduced a truly free checking account from a full-service financial
institution in Canada. Features of the new account include free
unlimited debit card transactions and free free unlimited Coast Capital
Savings ATM transactions. The account also requires no monthly fee or
minimum balance and includes teller service across its branch network.
Prior to the launch of “The Free Chequing, Free Debit and More”
account, no full-service bank or credit union in Canada offered
unlimited no-fee checking to all customers.
NH-based The De Palma Group has signed an agreement with Online Resources to become a market partner for ORCC’s “CertnFundsT” PINless debit product line. PINless debit, an emerging payment method offered through the STAR, NYCE and Pulse debit networks, is reserved for billers in highly regulated industries, including insurance, financial services, utilities, government, telecommunications and cable/satellite services. The De Palma Group, (www.depalma-group.net), headquartered in southern New Hampshire, is a treasury management and payments processing consultancy specializing in emerging payment products. Online Resources powers Internet financial services for 700 firms nationwide.Details
DFS is set to deploy Asia Payment Systems'”APAYcard” system at the Meilan Airport on Hainan Island. The card processing solution is based on Asia Pay’s middleware that provides seamless connectivity to banks in China via taking XML messaging from the retail POS system and routing it over IP to the banks. More than 3.5 million visitors come to
Hainan Island annually.
FL-based Certegy reported that its Card Services revenue increased nearly 13% in the fourth quarter, and that Check Services revenue rose 14% year-on-year. Card Services revenues were $157.3 million in the fourth quarter an increase of 12.7% above the 2003 quarter. Merchant processing revenue increased 12.2% over 4Q/03. Check Services generated revenue of $124.6 million in the fourth quarter, an increase of 14.1% over the year ago quarter. Check Services’ margin increased by 350 basis points to 19.7%, representing the highest quarterly margin in the past decade for the Company. Certegy is in the process of disposing of its merchant acquiring business. For the first quarter, the Company expects to achieve revenue growth of approximately 10%. For complete details on Certegy’s fourth quarter performance, visit CardData ([www.carddata.com]).