NexSmart Becomes a Welcome Master Reseller

NexSmart Technologies has inked a deal to market Welcome’s “XLS” enhanced payment software to banks upgrading their debit and ATM cards to chip. Through this “Welcome Master Reseller” agreement, NexSmart will provide “XLS” software to banks and financial institutions migrating to the “FISC2” standard in Taiwan. NexSmart currently supplies more than 70% of the “FISC2” market share. There is a total base of approximately 60 million ATM cards in Taiwan. These cards are currently being converted from magstripe to chip. Smart card compliance is required by January 2006.

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OTI Third Quarter Revenues Climb 34%

On Track Innovations reported that revenues for the third quarter rose to $5.5 million, up 34% from the same period last year, and up 19% sequentially. OTI’s operating loss decreased 26% to $1.1 million from 3Q/03. During the third quarter, OTI completed the acquisition of ASEC of Poland whose software and back office systems for mass transit ticketing and payment solutions enable OTI to provide end-to-end solutions and focus on higher margin products in the growing European emerging markets. ASEC has already received an initial order exceeding $500,000 for a micropayments application allowing customers to pay for their mass transit tickets and other small ticket-items. Also, Sasol Oil, South Africa’s largest oil company, signed a long-term agreement to implement OTI’s petroleum payment solution in Sasol network to service both the oil company- contracted and bank-contracted fleet market and the private motorist sector. Additionally, OTI and Hypercom partnered to deliver contactless electronic card payment programs that add convenience, speed checkout and increase security. The companies’ combined technologies will help expand merchant and consumer use of contactless payment programs, at U.S. retail countertops. For complete details on OTI’s third quarter performance visit CardData (www.carddata.com).

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Credit Card Horse Race Continues in Q3

VISA and MasterCard continue to jockey for leadership in the credit card market as MasterCard leads in accounts but lags in outstandings. At the end of the third quarter, VISA had $293.5 billion in U.S. credit card outstandings, compared to $282.7 billion for MasterCard. MasterCard ended the quarter with 218 million credit card accounts, about three million more than VISA. Year-over-year, VISA’s credit card business grew 8.6% for 3Q/04 while MasterCard posted a small 0.8% gain. Based on third quarter outstandings, VISA has a 44.3% share of the U.S. bank credit card compared to 42.7% for MasterCard. American Express holds a 5.8% share while Discover has a 7.1% share. For complete details on VISA and MasterCard statistics for the third quarter visit CardData ([www.carddata.com][1]).

U.S. CREDIT CARD OUTSTANDINGS
($ Billions – Third Quarter 2004)
VISA $293.5 44.3%
MasterCard $282.7 42.7%
Discover $47.1* 7.1%
American Express: $38.7** 5.8%
*as of 8/31/04 ** excludes charge card outstandings
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

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CompuCredit Adds $1.1B to Portfolio

Atlanta-based sub-prime specialist CompuCredit has formed a buying consortium to buy approximately $1.1 billion of credit card receivables from Fleet Bank. The deal involves Banc of America Securities and related entities, Greenwich Capital Financial Products, and others. Greenwich Capital Financial Products is owned by The Royal Bank of Scotland. CompuCredit will service the entire portfolio on behalf of the partners. Credit cards marketed by CompuCredit generally are issued by Columbus Bank and Trust Company. CompuCredit reported total managed receivables for the third quarter were $1,958,735,000 – flat compared to the second quarter, and $2.5 billion one-year ago. As of September 30th, CompuCredit had 2,388,000 accounts compared to 2,222,000 at the end of 2Q/04. For complete details on CompuCredit’s third quarter performance visit CardData (www.carddata.com).

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TNB Offers Oberthur Online Studio to CUs

Dallas-based TNB Card Services is now offering its credit union clients an online studio to customize their credit and debit cards. The “Oberthur Card Systems’ Variety Card Design Online Studio” enables TNB’s credit union clients to express their brand and identity through their cards, for a one-to-one branding with cardholders. The “Online Studio” program offers credit unions hundreds of creative options that include backgrounds, photos, logos and even embossing colors Prior to the introduction of the program, TNB’s clients selected standard templates from a brochure or retained an outside graphic artist to create design concepts, which was costly and sometimes resulted in designs that simply did not work well. TNB Card Services serves more than 400 credit unions. Oberthur Card Systems is the number one supplier of VISA and MasterCard payment cards.

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Pay By Touch to Acquire ATM Direct

San Francisco-based Pay By Touch has signed agreements to acquire ATM Direct, a provider of a patent-pending all-software solution that brings PIN debit to the Internet. The Company says the acquisition will round out the Pay By Touch offering, which already includes payment processing services from iPAY and biometric payment authentication services from Pay By Touch. The ATM Direct solution will be able to authenticate more than one billion ATM cardholders and enable them to securely pay with electronic cash on the Internet. Pay By Touch is a free consumer payment service that allows shoppers to pay for purchases using a finger scan linked to their financial accounts and loyalty.

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