MasterCard & Universal

MasterCard International and Vivendi UNIVERSAL Entertainment confirmed their multi-year marketing alliance last week. Under the deal MasterCard will become the “Official Payment Brand” and “Preferred Card” of Universal Entertainment’s theme parks and resorts, movies, music and Internet properties. Also, MasterCard recently launched a new 30-second television ad as part of its “Priceless” advertising campaign. The new creative, which was filmed on location at Universal Studios Theme Park in Orlando, features a family experiencing Universal’s “Hulk” Roller Coaster as part of a “Priceless” day at the Park. The spot was produced by McCann-Erickson/New York. In December, MasterCard, Chase and Universal teamed to launch the “Universal Entertainment MasterCard from Chase.”. Cardholders will earn one point per dollar on all everyday purchases and two points per dollar spent at select Universal Parks & Resorts retail locations. Points can be redeemed for movie and concert tickets, DVDs, CDs, advance movie screenings, and cardholders will have the opportunity to redeem reward points for unique Hollywood experiences, including tickets to celebrity events, spending a day on a television or movie set, backstage concert passes, and walking the red carpet at a movie premiere. (CF Library 12/6/02)

Details

WAP PAYMENTS

Ontario-based Payment Services Interactive Gateway a/k/a PSiGate has
reached an agreement with Diginara to enable credit card processing over a
“Wireless Application Protocol.” Under the terms of the agreement, PSiGate
is now licensed to be the exclusive vendor for Diginara’s WAP-enabled
credit card technology and Diginara will resell PSiGate’s credit card
processing capabilities and merchant services to Diginara clients. The
partnership enables users of mobile devices to activate real-time credit
card transactions throughout North America.

Details

TSAI 4Q/02

Transaction Systems Architects reported revenue for the fourth calendar quarter of $62.5 million and net income of $3.0 million. For the year-ago quarter TSAI reported $73.2 million in restated revenues and net income of $2.4 million. The Company completed the fourth quarter with $229.3 million in backlog, consisting of $154.7 million in recurring revenue backlog and $74.6 million in non-recurring revenue backlog. During the quarter, ACI Worldwide, the Company’s largest business unit, added seven new customers. Solutions licensed included BASE24, ACI Proactive Risk Manager, ACI Smart Chip Manager and two BASE24-es licenses on UNIX server technology. Also, ACI Worldwide added 12 capacity upgrades and licensed 15 new applications to existing clients. For complete details on TSAI’s latest quarterly performance visit CardData ([www.carddata.com][1]).

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

Details

NASCAR GM Card

General Motors and Household Bank have inked a sponsorship deal with the “No. 30 America Online Racing NASCAR Winston Cup” team. Under terms of the deal, Jeff Green of Richard Childress Racing, will drive a car primarily branded by “The GM Card” in the “Georgia 500” at Atlanta Motor Speedway in October. The sponsorship is a continuation of the relationship between RCR and General Motors. GM, through the “GM Goodwrench” brand, has been a primary sponsor of RCR’s No. 3 and No. 29 NASCAR Winston Cup teams since 1988 and all five of its teams compete in Chevrolet Monte Carlos. In the October “Georgia 500,” the No. 30 AOL car will be outfitted with highly visible decals from “The GM Card,” as will Green’s helmets and hats, the team car’s transporters, team members’ uniforms, and crew team uniforms and fire suits. At the end of January, there were 6.9 million GM cardholders. Since The GM Card’s inception in 1992, more than 3.9 million GM vehicles have been purchased or leased with GM Card earnings.

Details

Meijer Stores Credit Card

GE Consumer Finance has inked a deal to issue the first ever Meijer Stores credit card in Detroit followed by a rollout to all 156 retail Meijer supercenters throughout the Midwest. Under the new private label credit card program, Meijer cardholders will enjoy a range of valuable programs and benefits, including a 10-percent off promotion on their first purchase, a dedicated line of credit and no annual fees.

Details

Top 10 Outstandings

Outstandings among the nation’s top VISA and MasterCard issuers grew 9.0% last year, driven largely by Sears National Bank and Capital One. Discounting Sears, the top ten issuers (including Metris), grew 7.0% in outstandings during 2002. Outstandings for American Express credit cards grew 7.2%, while Discover outstandings increased by 3.7% during 2002, according to CardData. The “Sears Gold MasterCard” program surged by nearly 150% in 2002 as it migrated more store credit cardholders to its bank credit card. Meanwhile, Providian and Chase shifted market share in an acquisition deal during 2002. Capital One, which recently cranked-down its $1 billion marketing machine, posted a 32% gain in outstandings. American Express posted 2002 credit card outstandings of $34.3 billion compared to $32.0 billion for 2001. Discover reported $51.1 billion in outstandings for the year ending 11/30/02, compared to $49.3 billion for the same period 2001.

TOP TEN VISA/MASTERCARD ISSUERS
(based on EOY 2002 outstandings)
ANNUAL OUTSTANDINGS

2002 2001 Y/Y CHG
1. Citigroup*: $116.6b $108.9b + 7.1%
2. MBNA: $ 79.5b $ 74.9b + 6.1%
3. Bank One: $ 74.0b $ 68.2b + 8.5%
4. Chase: $ 51.1b $ 40.9b +24.9%
5. Cap One** $ 50.7b $ 38.4b +32.0%
6. BofA: $ 29.5b $ 27.2b + 8.5%
7. Providian: $ 20.0b $ 32.9b -39.2%
8. Household: $ 17.0b $ 16.1b + 5.6%
9. Fleet: $ 16.1b $ 15.6b + 3.2%
10.Sears Natl: $ 12.3b $ 5.0b +146.0%
TOTAL: $466.8b $428.1b + 9.0%
* Citigroup includes Canada;
** Capital One, which does not disclose domestic data, may include some
international accounts.
SOURCE: CardData (www.carddata.com)

* Citigroup includes Canada;
** Capital One, which does not disclose domestic data, may include some international accounts.

SOURCE: CardData ([www.carddata.com][1])

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

Details

GILAT ATM LINK

Petah Tikva-based Gilat Satellite Networks announced that Diebold has contracted to offer always-on broadband connectivity with its ATMs. The deal was signed with Gilat’s U.S. subsidiary, Spacenet, and makes Diebold an authorized channel partner of Spacenet’s “Connexstar” business-grade satellite broadband service. In addition, Diebold’s adoption of Spacenet’s broadband VSAT technology enables it to incorporate a variety of advanced emerging applications into their ATM and other transaction platforms. Using “Connexstar’s” high-speed, multicast-enabled Internet connection, devices will be able to support ticket ordering, video and multimedia content delivery, and Internet access. Gilat Satellite Networks and its subsidiaries Spacenet and Gilat Latin America have deployed 400,000 VSATs globally.

Details

Portfolio Recovery Associates 4Q/02

VA-based Portfolio Recovery Associates reported that fourth quarter revenue rose to $15.7 million from $9.4 million in the year-ago period, and that pro forma net income increased to $3.3 million from $805,000 one year ago VA-based Portfolio Recovery Associates reported that fourth quarter revenue rose to $15.7 million from $9.4 million in the year-ago period, and that pro forma net income increased to $3.3 million from $805,000 one year ago. Portfolio Recovery Associates is a full-service provider of outsourced receivables management. Portfolio Recovery Associates purchases, collects and manages portfolios of defaulted consumer receivables. Defaulted consumer receivables are the unpaid obligations of individuals to credit originators, including banks, credit unions, consumer and auto finance companies, retail merchants and other service providers.

Details

TSYS Debt Management Chairman

TSYS Debt Management announced Wednesday the retirement of its Chairman of the Board, Richard de Mayo, effective March 31st. Before his appointment at TDM, de Mayo began practicing law with the law firm of Howard, Wiggins & Smith in Atlanta, where he worked for five years. As a part of his early practice of law, he represented creditors as well as a large collections agency, and thus he made appearances in the state courts throughout Georgia for the first five years of his practice.

Details

Gemplus 4Q/02

Gemplus reported a fourth quarter operating loss, excluding extraordinary costs, of $18.0 million, a 43.5% decline from 4Q/01. For the year 2002, Gemplus posted a net loss of $347.3 million compared to $108.4 million for 2001, according to this week’s The RAM Report ([www.ramreport.com][1]). Net loss for 4Q/02 was $104.8 million compared to $41.8 million for 3Q/02. However, operating expenses for 4Q/02 were down 24.3% due to restructuring. Net income for the fourth quarter was affected by a provision for restructuring ($20.9 million), foreign exchange losses ($12.6 million), deferred tax assets write-down ($44.8 million) and goodwill write-off ($6.9 million). Contactless card revenues were down 3.2% compared to the third quarter, because of lower shipments which were down 2.9%. Gemplus says pricing pressure remains substantial, but eased during the fourth quarter in Europe and in the Americas. The smart card manufacturer says there is still a need to further reduce costs. Gemplus said it could not provide any guidance for 2003 due to uncertainty as to costs and revenues. For complete details on Gemplus’ 4Q/02 results visit CardData ([www.carddata.com][2]).

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

Details