AirPlus has hired Christian Gall, former VP/technology solutions at Carlson Wagonlit Travel, as executive director, global markets. Mr. Gall will be responsible for leading all global marketing activities for AirPlus. As former vice president for technology solutions at Carlson Wagonlit Travel, Gall increased productivity and services and reorganized Travel & Expense management processes in Europe, Africa, and the Middle East. He also implemented products in multinational groups worldwide. AirPlus International is the leading European market in corporate travel payment systems and management information reporting solutions.Details
MasterCard Europe is gearing up for Eastern Europe with a new regional manager and a restructure of the region. Twelve-year MasterCard veteran Bella Stavchansky has been promoted to head the Eastern Europe region. The Europe region has been restructured into four segments: the Central Region, the Northern Region, the Southern Region, and the Eastern Region. The are 18 countries in the Eastern Europe region. At present there are four million MasterCard credit cards and 32 million Maestro cards held throughout Central and Eastern Europe and the Balkans. The MasterCard Europe president is Dr. Alex Labak.Details
The French Works Council gave its blessing on the sale of Egg’s credit card business in France. Banque Accord agreed to pay Egg $179 million for 66,000 customers and net assets of approximately $262 million. According the CardFlash International, Egg also has a pending offer from ING Direct France for its savings and online brokerage business in France, which includes approximately 45,000 accounts. In July, Prudential, majority owner of Egg, announced it was exiting France after racking up nearly $184 million in losses. The partial disposal with Banque Accord will result in the re-deployment of approximately 100 of Egg France’s 450 workforce. Banque Accord has 3.5 million clients in Europe including more than 2.0 million in France, and employs more than 700 people in France, Warsaw, and Lisbon. Banque Accord has a call center in Tours. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.7 million versus an operating loss of $30.3 million for its French “la Carte Egg VISA.”Details
eSecurity Japan, a new spin off of the parent company Open Source Japan, has teamed with iBIZ Software for the sales and implementations of “iBIZ CommerSafe” and “iBIZ PhishSafe” product lines in Japan. eSecurity Japan will offer online authentications and anti-phishing solutions to banks that provide online services, card issuers and acquirers, payment processors, and Internet merchants.
iBIZ Software’s CommerSafe Product Suite, has been compliant with each of the 3-D Secure programs from their very launch, including Verified by VISA, MasterCard SecureCode, and JCB J/Secure.
Credito Emiliano has selected NCR’s Teradata data warehouse to support its retail sales and management initiatives. Credem launched the “Change Project” to develop and deploy a customer relationship management. Credem (Banking Group Credito Emiliano – Credem) has a presence in 16 regions in Italy, with 429 branches, 38 Business Centres, 27 Credempoints, 512 authorized financial salespersons, and a network of over 220 personal finance managers.Details
Consolidation in the bank credit card industry has given the top issuers control of more than 60% of the U.S. market. At the end of the third quarter, the top five issuers held $430.9 billion in U.S. card loans in a market of approximately $680 billion. Over the past five years, the market share of the top five issuers hovered around 53%. In 2000, the top five held $295 billion in card loans in a market of $569 billion. The recent merger of Chase and Bank One created the nation’s largest issuer with $131.5 billion in credit card outstandings. The Bank of America and FleetBoston merger also added more share to the top five issuers. At the end of the third quarter the top five U.S. issuers are: Chase, Citibank, MBNA, Bank of America, and Discover. For complete details on the third quarter performance of U.S. issuers, visit CardData ([www.carddata.com]).
TOP 5 – 3Q/04
1. Chase $131.5 billion
2. Citi $117.2 billion*
3. MBNA $ 79.7 billion
4. BofA $ 55.4 billion
5. Discover $ 47.1 billion**
TOTAL $430.9 billion
*includes some non-U.S. accounts within North America
** as of August 31st
Top 5 Historical – Third Quarter
2000: $295.0 billion
2001: $330.6 billion
2002: $352.7 billion
2003: $362.7 billion
2004: $430.9 billion
SOURCE: CardData (www.carddata.com)
Xbox Live, Microsoft, Maybank, and MasterCard have teamed to introduce a prepaid card to offer Singaporeans an alternative payment method to register for the Xbox Live service and to purchase premium content. The “Xbox Live Modus MasterCard by Maybank,” a “MasterCard Electronic Card,” is the first prepaid card to be launched in the country. The card can be used at all merchant establishments worldwide that are equipped with EDC terminals and display the “MasterCard Electronic” brand mark. The card carries a $19.90 fee and cardholders can limit the spending limit from as low as $500, up to $3,000 per
day. The new card will be available at 120 authorized Xbox retail outlets and Maybank branches next month.
eBay reported that gross payment volume for its PayPal business increased 52% year-on-year during the third quarter, and 7% sequentially. The payment service also signed up 6.3 million net new accounts and the number of active accounts posted its highest level to-date. During the third quarter, PayPal handled $4.64 billion of gross payment volume, compared to $4.35 billion in the prior quarter, and $3.04 billion for 3Q/03. At the end of the third quarter, PayPal had 56.7 million accounts, compared to 50.4 million in 2Q/04, and compared to 35.2 million one-year ago. PayPal produced $172.0 million in transaction fees for 3Q/04, a 57% jump over the year-ago quarter. During the third quarter, PayPal handled 83.4 million payments, a 7% increase over the prior quarter, and up 45% from 3Q/03. PayPal captured 56% of eBay’s total $8.3 billion in total sales volume during the quarter. PayPal’s transaction revenue rate was 3.59%, compared to 3.49% one-year ago. The processing expenses rate for the third quarter was 1.30%, compared to 1.25% for 3Q/03. PayPal’s transaction loss rate came in at 22 basis points, the same as one-year ago. For complete details on eBay/PayPal’s third quarter performance, visit CardData ([www.carddata.com])
3Q/03 $3.0 billion 35.2 million
4Q/03 $3.7 billion 40.3 million
1Q/04 $4.3 billion 45.6 million
2Q/04 $4.3 billion 50.4 million
3Q/04 $4.6 billion 56.7 million
SOURCE: CardData (www.carddata.com)
MBNA has named Thomas Murdough, chairman and CEO of the Step2 Company, to MBNA Corporation’s Board of Directors. Mr. Murdough will serve on the Audit and Compensation Committees. In 1991, Murdough launched Step2 hoping to go “a step beyond” in developing and manufacturing products for the family and home. He is a graduate of the University of Virginia and is the founder of The Little Tikes Company, which was sold to Rubbermaid in 1984. MBNA is the largest independent credit card lender in the world and is recognized as a leader in affinity marketing. It provides lending, deposit, and credit insurance products and services.Details
Fiserv reported that processing and services revenues were $866.3 million, a 23% increase over 3Q/03. Operating income for processing and services was $160.7 million, an 18% increase over the year ago quarter. Net income rose 15% to $92.4 million. During the quarter, Fiserv completed two acquisitions: Results International Systems, a provider of outsourced solutions for the property-and-casualty insurance industry and Pharmacy Fulfillment, a provider of mail-order prescription services. Fiserv recently announced it has purchased CheckAGAIN. For complete details on Fiserv’s third quarter performance, visit CardData ([www.carddata.com]).