JCB, Sumitomo Mitsui Card Company, Nippon Shinpan, American Express, and about a dozen other credit card companies will sign contracts with the cell phone provider NTT DoCoMo next month. Under the program, which is set to begin in September, NTT DoCoMo users will be able to pay their monthly phone bills via credit card. Currently, NTT DoCoMo customers pay phone bills at banks, post offices and convenience stores or have the bills charged directly to their bank accounts. KDDI and J-Phone already allow customers of their cell phone services to pay by credit card. About 7% of the charges incurred by subscribers of KDDI’s service are paid by credit card, while 12% of J-Phone’s customers pay by credit card.


Payment Habits

While the latest industry statistics show 40% of consumers pay off credit card balances each month, a poll taken during the last two weeks of June, indicates the number of convenience users may be shrinking. The informal June survey of more than 1,000 Americans showed that 37% pay off the total balance in full each month. Since the recession of 1990-91, the number of convenience users of credit cards grew from 29% to a high of 44% in early 2001. The trend reversal began in July 2001 and accelerated after 9/11. According to the informal poll conducted on CardWeb.com’s homepage, 51% of consumers say they pay more than the minimum each month. Slightly less than 12% say they make minimum payments only. At the end of the first quarter 40.30% of cardholders were paying-off account balances each month, according to CardData ([www.carddata.com][1]).

Bank Credit Card Convenience Usage
1990: 28.60% 1996: 38.50%
1991: 29.20% 1997: 40.20%
1992: 31.30% 1998: 42.00%
1993: 33.70% 1999: 43.40%
1994: 35.10% 2000: 44.40%
1995: 37.90% 2001: 42.10%

Source: CardData ([www.carddata.com][2])

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



Bank Islam Malaysia Berhad has begun issuing MasterCard M/CHIP smart cards using the MIST NBS Smart EMV Card Issuance Process with “Conquest” card issuance software and “Advantage” series card issuance machines. Bank Islam Malaysia Berhad is the first Islamic bank to issue EMV smart cards and has a network of 83 branches nationwide. MIST NBS says the installation of mid-volume NBS Advantage issuance equipment at Bank Islam provides the platform for the Bank to begin chip card migration. If higher volumes of smart card issuance are required, NBS Horizon equipment, which uses software with the same user interface, may be implemented.


CyberSource R/3 Cassette

CyberSource is shipping its new payment cassette for SAP solutions which gives R/3 customers real-time credit card authorization and fraud-detection functionality accessible from a single application interface. CyberSource utilizes a highly secure Public Key Infrastructure-based cryptographic security model to authenticate and secure 100 percent of the transactions processed on behalf of its more than 3,000 customers worldwide. The CyberSource system utilizes a private key, known only by the merchant, with over 1,024 bits of data used to authenticate each transaction.


InfoNow 2Q

Denver-based InfoNow Corporation, provider of VISA’s ATM locator service, reported preliminary financial results for the second quarter which show revenues of approximately $2.8 million and a net loss of approximately $211,000. InfoNow will host a conference call on Tuesday, July 9, 2002 at 9:00 a.m. MDT to review preliminary results of operations for the second quarter.


Credit Uptick

Americans added $2.4 billion to revolving credit during May compared to $1.4 billion for May 2001, and the annual rate of increase was slightly off this year. The brisk expansion in revolving credit, mostly credit card debt, flies in the face of other recent economic barometers which point to a decline in consumer confidence, travel plans, and overall spending. The May recovery may reflect some pent-up demand from April when revolving credit grew at half the rate of one year ago. According to figures released Monday afternoon by the Federal Reserve, revolving consumer credit is growing at an annual rate of 4.1% compared to 4.5% for May 2001. Since the first of this year, Americans have added $19.8 billion to revolving credit, to hit a record $712.2 billion. At the end of May 2002, American consumers were $1.706 trillion in debt, exclusive of home mortgages.

May 02 Apr 02 Mar 02 Feb 02 Jan 02 Dec 01 Nov 01
GRWTH: 4.1% 7.5 4.8 2.2 1.8 -9.7 12.7
$OWED: $712.2 709.8b 705.4 705.0 702.4 692.4 698.0

Oct 01 Sep 01 Aug 01 Jul 01 Jun 01 May 01 Apr01
GRWTH: -7.1% 0.6 -2.2 -3.7 2.1 4.5 14.2
$OWED: $686.4 692.7 693.5b 698.1 700.3 699.0 697.6

Source: Federal Reserve; revised figures as of 07/08/02; For complete historical data visit CardData ([www.carddata.com][1]).

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



Korea Exchange Bank Credit Service announced it will use “divine Conversations” outbound call management solution for approximately 250 agents serving more than 5 million credit card users in the KEBCS’s National Collection Center. Developed by U.S.-based divine, inc., “divine Conversations” is an intelligent, CTI-enabled, blended Inbound/Outbound contact management solution that combines predictive dialing with campaign management capabilities, enabling call centers to connect with more customers, reduce nuisance calls and reduce idle time. Since launching Master Card in 1993 and JCB card in 1997, KEBCS now issues all three major international brands (VISA, Master, and JCB), and also Local Card for domestic use.


Experian Account Aggregation

Experian has agreed to offer Yodlee’s permission-based account aggregation service and will incorporate Experian’s credit management tools into its network of account aggregation services. In the first phase of this partnership, Experian will offer Yodlee’s account aggregation solution to its existing direct-to-consumer services at their website and its affiliate sites. Yodlee will also integrate and market Experian’s credit management services into its network of aggregation services with many financial institutions and portals.



Rehovot-based T.V.G. Technologies Ltd. announced that its German subsidiary, Secure2net GmbH, entered into an agreement with Comcard GmbH, a German smart card manufacturer and distributor, providing cooperation in the production and marketing of smart card technology applications. The Israeli-based seller of smart card technology applications also announced consolidated financial results for its fiscal years ended December 31, 1999 and 2000. For the year ended December 31, 2000, revenue decreased to approximately $133,000, down from approximately $1.235 million for the year ended December 31, 1999. The Company reported a net loss for the same time period of approximately $6.275 million, or $0.79 per share, compared to a net loss of approximately $4.147 million, or $0.62 per share, for the year ended December 31, 1999.