Illinois-based Midwest Bank and Trust Company has elected to renew its credit card processing contract with Moneris Solutions. Midwest Bank has been a Moneris customer for eight years. Midwest says that not only has Moneris contributed to a 27% merchant portfolio growth in the last year, they have also partnered with to launch a joint sales and marketing campaign to communicate the benefits of merchant acquiring to its current and potential business customers. Moneris Solutions serves more than 350,000 North American merchant locations and has a staff of over 1,100 employees.Details
Industrial Bank is issuing its first MasterCard dual-currency international credit card through China UnionPay. The new “Industrial
Card” provides real credit for Chinese consumers in that it does not require a deposit. The vast majority of credit cards issued in the country are secured credit cards. The new credit card also provides for an optional cardholder password, or PIN number, to enhance a cardholders’ security. The “Industrial Bank MasterCard” card is MasterCard’s second collaboration with China UnionPay to issue a credit card. In June, Ningbo Commercial Bank issued the first international dual-currency MasterCard credit card through China UnionPay – the “Huitong Card.” Other international MasterCard credit cards available in the Chinese market are primarily issued by large state-owned commercial banks or joint stock commercial banks.
Thales has selected Axalto to provide the smart cards of its e-ticketing solution for the Dutch national transport project managed by Trans Link Systems. Conducted by Trans Link Systems and the East West consortium, the program is the first in the world to be implemented on a national scale and will offer integrated solution covering all means of public transport. The program involves 1.4 million contactless cards in its pilot phase, out of the total 12 million cards to be deployed by 2006. One single contactless card, “Axalto Easyflow,” will allow the
citizen to equally access ferries, buses, metros, trams or trains to
travel across the country. More than two million passengers per day are
expected to use the national transport once the project is fully
MBNA reported that net income for the second quarter rose 21% to $660.3 million driven by improving credit quality and growth in fee income. Managed loans for 2Q/04 were up 7%, and charge volume was up 15%. Total managed loans at the end of the second quarter were $118.2 billion, and charge volume was $52.0 billion, including $18.4 billion in cash advances. Managed charge-offs decreased slightly to 4.95% compared to 4.99% in the previous quarter, and 5.35% one year ago. Delinquency on managed loans dropped to 4.08%, compared to 4.27% in 1Q/04, and 4.46% in 2Q/03. During the quarter MBNA added 2.5 million new accounts. MBNA indicated future growth drivers will be its international card business, the launch of its American Express-branded credit card in the U.S., and its expansion into professional practice financing and insurance premium financing. For complete details on MBNA’s second quarter results visit CardData ([www.carddata.com]).
MBNA TRACK RECORD
2Q/03: $543.3 MM $110.5 B
3Q/03: $658.8 MM $112.8 B
4Q/03: $703.5 MM $118.5 B
1Q/04: $519.7 MM $117.6 B
2Q/04: $660.3 MM $118.2 B
Source: CardData (www.carddata.com)
China Merchants Bank has teamed with MasterCard to launch two debit cards, one targeted at high-net worth customers with more than RMB500,000 on deposit. The new “Platinum Sunflower MasterCard” debit card offers VIP boarding at any airport in the world through “Priority Pass”, among other benefits. The “Gold Allionene MasterCard Debit Card” is for CMB customers with more than RMB50,000 on deposit. The “Gold” version allows various saving programs and multiple currency transactions. Both cards offer “Emergency Cash”, “Card
Canceling/Replacement,” “ATM Direction,” and “Medical Warranty.”
CMB has more than 30 branch offices across 31 mainland cities.
Dallas-based Alliance Data Systems reported that its net income doubled as revenues climbed 20% during the second quarter, compared to one-year ago. Second quarter revenue rose to $300.5 million, compared to $251.0 million for 2Q/03. Net income for 2Q/04 was $28.0 million, compared to $14.1 million for the second quarter of 2003. Transaction Services revenue, mostly from private label and utility services businesses increased 13% to $170.6 million. Credit Services revenue increased 24% to $122.0 million driven by private label credit sales and portfolio growth that grew at a rate in the mid-to-high teens. Marketing Services revenue increased 19% to $84.2 million thanks to solid growth in the “AIR MILES” program. ADS says it expects to outperform its previous guidance for 2004. Specifically, the Company is increasing its 2004 full-year cash earnings per share estimate to $1.44 – $1.48. For complete details on Alliance Data Systems’ second quarter performance visit CardData ([www.carddata.com]).
ADS REVENUE SNAPSHOT
2Q/03: $251.0 million
3Q/03: $255.7 million
4Q/03: $298.3 million
1Q/04: $312.5 million
2Q/04: $300.5 million
Source: CardData (www.carddata.com)
Arthur Blank & Co. is supplying RFID-enabled cards for one of the first loyalty and stored transaction RFID systems for the retail and services industries. The new RFID solution, based on the SynapseT web-enabled framework for rapid deployment of real-time transaction processing, will include RFID cards from Arthur Blank & Co., a leader in card marketing solutions. With RFID-embedded plastic cards, the new platform created by IBSS will offer one of the first RFID retail applications storing a customer’s service transactions and loyalty data on a single card. Arthur Blank & Co., Inc. specializes in all facets of custom printed plastic cards. IBSS is the creator of SynapseT, a groundbreaking software technology. SynapseT is a complete framework and methodology used to create, implement and manage a wide variety of dynamic, distributed, networked and real-time enterprise applications, quickly and efficiently.Details
Diebold reported that its financial self-service, or ATM unit, posted revenue growth of 10.9% and 9.5% on a fixed exchange rate basis, during the second quarter. Total revenue for the quarter was $552.0 million, up 14.8% and 13.7% on a fixed exchange rate basis. Diebold posted second quarter net income of $43.7 million. During the quarter, Diebold has “Opteva” ATM orders in excess of $80 million including a $16.1 million order from Brazil and orders from two banks in China and one bank in India totaling $11.5 million. Diebold says it expects third quarter revenue to increase 8% to 11% on a fixed exchange rate basis. Financial self-service revenue are expected to grow by 12% to 14% on a fixed exchange rate basis. For complete details on Diebold’s second quarter performance visit CardData ([www.carddata.com]).
Fiserv reported second quarter processing and services revenues of $855.9 million, a 33% increase over 2Q/03. Total revenues for 2Q/04 were up 31% to $946.0 million. Net income for the quarter was $95.0 million, a 21% gain over 2Q/03. During the second quarter Fiserv signed contracts with Caja Popular Mexicana, Mexico?s largest credit union; Sovereign Bank, based in Wyomissing, PA; and Chicago-based Liberty Bank for Savings. For complete details on Fiserv’s second quarter performance visit CardData ([www.carddata.com]).
Burger King has selected “VeriFone Omni 3750” payment terminals for all its company-owned locations and is supporting a program that offers the same solution to franchisees systemwide. The VeriFone terminals accommodate both dial-up and Internet-based communications, allowing franchisees to migrate to faster Internet transactions at their option. The Omni 3750 accommodates a wide range of value-added applications, including gift cards and stored value, which will provide BURGER KING(R) franchisees with greater options to implement customer loyalty and promotional campaigns. VeriFone is leading the industry in the delivery of solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. The BURGER KING(R) system operates more than 11,220 restaurants in all 50 states and in 60 countries and territories around the world.Details
A new study by The PELORUS Group projects that more than 22 million prepaid debit cards will be issued this year. The popularity of stored value is not limited to banks and credit card issuers. The report notes that the enormous success of the Starbucks Card has prompted many merchants to leap onto the stored value bandwagon. The study projects that in 2004 400 million convenience cards will be sold to consumers who don’t wish to wait in line to pay for a cup of coffee or a sandwich.Details
ExxonMobil is now offering new and existing “Speedpass” customers an opportunity to get a “Ryan Newman #12 Nextel Cup” race car “Speedpass RaceCase” that fits over its standard “Speedpass” key tag device. New or existing customers must register for the offer at www.speedpass.com and make a minimum of four qualifying purchases between July 1 and Sept. 30, 2004. ExxonMobil is a major associate sponsor of the Penske Racing #12 Dodge race car driven by Ryan Newman.Details