2010 Was an Off Year for Card Folio Sales

Card industry advisor R.K. Hammer has published their annual year-end summary and price range of credit card portfolios believed to have been sold last year. As shown in the accompanying chart, by most any generally accepted measure it was a weak year at best. Turbulent economic factors which expanded in 2009 represented a major shift from stronger earlier periods, and this continued in 2010. It is estimated by R.K. Hammer that over $50 Billion in potential sales did not go through in the past two years that otherwise might have, being pulled from the market or not offered for sale in the first place. As banks enter 2011 with more hope for a better economy, greater government certainty with their intentions, and much of the charge off onslaught working through the queue, it is believed that more high quality card deals with return to the market, as it has begun to in other industries in the broader market. This is the second in R.K. Hammer’s annual seven-part series of year-end card industry reports, the first being observations about the industry’s P/L . Upcoming reports will include: 2010 Card Fees Trends; Card Penalty Fees Trends; Fee Income, Banks vs. Cards; Multi-Decade Report on Pre-Tax Industry ROA Earnings; and the R.K. Hammer assessment of High-Performance Agent Bank Card Program for 2010.

Details

First Data Shows Slow Consumer Spending

December 2010 consumer spending for same store dollar volume growth on credit, signature debit, PIN debit and EBT cards at U.S. merchant locations was up 6.5% (5.9 % excluding Gasoline Stations) compared to the year ago figure, down from the 8.1% growth in November (7.8% excluding Gasoline Stations). Meanwhile, average tickets fell -1.0%, compared to November’s increased growth of 0.4%, and credit transaction growth was 3.5%, a decline from November’s growth of 5.4%. This, according to First Data electronic commerce and payment processing “SpendTrend” analysis for the full month of December 2010 compared to December 2009, also shows credit dollar volume growth also slowed to 4.4% from November’s growth of 8.0% and consumers concern about the overall economy is apparent in the dollar volume growth of 6.5%, compared to November’s healthy growth of 8.1%.

Details

Intellicheck Mobilisa Awarded U.S. Patent

Intellicheck Mobilisa access control and wireless security systems has been issued U.S. Patent No. 7,860,318 relating to a document comparison system. The issuance of the ‘318 patent brings Intellicheck Mobilisa’s current portfolio to 8 U.S., 2 Canadian and 1 U.K. patents, as well as additional U.S. and International patent applications pending. The issuance of the ‘318 patent relates to a system and method for comparing information contained in at least two documents. Like information on different documents is compared to determine whether the information is the same on each document. For instance, a name contained on an individual’s driver’s license is automatically compared with a name contained on the individual’s airline boarding pass.

Details

GlobalPlatform Appoints Mobile Strategic Director

Janne Uusilehto, Director/Head of Product Security for Nokia, has been appointed to the voluntary consultative position of Mobile Strategic Director with GlobalPlatform. He will make recommendations to the GlobalPlatform Board on how the GlobalPlatform Specifications could evolve to ensure alignment with the specific and emerging requirements of the mobile sector. Janne will also assist GlobalPlatform in its liaison activities with other mobile industry consortia, ensuring mutual awareness and cooperation towards open standards and an interoperable technical infrastructure for mobile services.

Details

Swisscard Utilizes Experian Decision Management

Swisscard AECS will be implementing Experian global information services to support its customer credit risk and customer management decision making to serve consumers in Switzerland. With this, Swisscard will namely be deploying Experian “New Business” and Experian “Probe” decision support systems. A joint venture between Credit Suisse and American Express, Swisscard is the only one to offer American Express, MasterCard, and Visa from its single source. The “New Business” application decision system will enable Swisscard to assess and make decisions on applicants, identifying optimal customers and offering tailored packages to suit their needs. Meanwhile, “Probe” will support Swisscard decision making on areas such as credit limit management, customer service and debt management, based on a comprehensive and up-to-date understanding of the customer.

Details

Discover Expands Sweepstakes in 2011

The Discover “Discover Everyday Giveaway” is back in 2011, giving consumers more chances to win along with the opportunity to give back to public schools. With every purchase made using a Discover card from now through the end of the year, cardmembers are automatically entered for a chance to win one of 150 daily prizes; a monthly prize of $25,000, which Discover will match with a $25,000 donation to a public school of the winner’s choosing; and a grand prize of $1 million. Cardmembers automatically will earn extra sweepstakes entries simply by using their Discover card in featured categories. Moreover, every day this year 150 winners will be chosen to receive a $25 Discover Gift Card. This equals over 54,000 daily prize winners, all of whom will be notified of their winnings by phone and mail. One monthly winner will be chosen randomly to receive $25,000, which Discover will match as a donation to a public school of the winner’s choosing.

Details

Discover Expands Sweepstakes in 2011

PAX is implementing Voltage end-to-end encryption on its POS solution to protect cardholder data through the payment flow to payment processor or card brand hand-off. With this, PAX solutions has partnered with Voltage “SecureData” to provide merchants an end-to-end data protection solution with an easy PCI DSS audit scope. PAX has chosen to join the new Voltage SecureData Open License Program because it dramatically lowers the barrier to implementing end-to-end encryption on POS devices, Electronic Cash Registers (ECRs) and eCommerce Payment platforms. With PAX solutions, payment card primary account numbers (PANs) and other sensitive data are encrypted at the merchant’s point-of-sale device and remains enforced until payment processor or card-brand hand-off.

Details

Pax Implements Voltage Encryption

PAX is implementing Voltage end-to-end encryption on its POS solution to protect cardholder data through the payment flow to payment processor or card brand hand-off. With this, PAX solutions has partnered with Voltage “SecureData” to provide merchants an end-to-end data protection solution with an easy PCI DSS audit scope. PAX has chosen to join the new Voltage SecureData Open License Program because it dramatically lowers the barrier to implementing end-to-end encryption on POS devices, Electronic Cash Registers (ECRs) and eCommerce Payment platforms. With PAX solutions, payment card primary account numbers (PANs) and other sensitive data are encrypted at the merchant’s point-of-sale device and remains enforced until payment processor or card-brand hand-off.

Details

SelectCore Posts Record-Breaking 2010

SelectCore payment and transaction processor for prepaid telecom and financial services posted 2010 revenues of more than $102 million. Throughout the year, the Company also added over 3,500 new merchant locations to its retail network; processed over 40 million transactions; and generated new technology development to launch transaction processing solutions for mobile remittance. Also, SelectCore is actively seeking a new lender to replace its current $3.75M USD senior debt facility with ComVest Capital II LP on or before March 31, 2011 when a principal payment of $1.25M becomes due.

Details

Aptys Chalks 2010 Up as a Good Year

Aptys Solutions payments network provider for financial institutions marked 2010 as an inaugural year for the company with the official launch in April of its “PayLOGICS” common platform that bridges legacy and emerging payments. The platform supports all aspects of payment processing, including image exchange, ACH processing, wire processing, Federal Reserve messages, in-network exchange (INEX) payment processing and mobile payments. Additional Company developments include having made available the “Active Archive” solution allowing financial institutions to consolidate payment archives across an entire enterprise and having introduced the NACHA-initiated “Deposited Check Truncation” (DCT) Pilot. Additionally, Aptys purchased a license to use DataTreasury Corporation’s patented technology for image capture, which provides a solid foundation for the continuation of Aptys’ technological growth in image capture and effectively protects Aptys’ customers from any future patent issues related to the product.

Details

Android Adoption Gobbles 27% of Market Share

With overall smartphone usage in the U.S. having grown from 12% in 2008 to 34% in 2010, the Android mobile devices are currently experiencing the most explosive customer base than any of its competitors. Having swallowed an added 23% of the market share from 4% in July 2009 to 27% in September 2010, the Android-based phones account for 30% of females who own a smartphone while most of its owners are significantly more interested in using mobile phone technology than are all smartphone users, according to Javelin Research. With the smartphone market on track for brisk sustained growth through 2015, the Android is expected to overtake the Blackberry as the most popular smartphone on the market in 2011 while the iPhone is not expected to overtake either in popularity.

Details