US Bank Payment Services Net Income Up 19% Q/Q

U.S. Bancorp reported net income of $908 million for the 3Q/10, driven by a total net revenue of $4.6 billion for 50.6% growth over the year ago period and 18.5% higher than the previous quarter. Meanwhile, total net revenue was $4.6 billion for a 7.9% increase on the year ago period while the Payment Services division contributed $215 million for$142 million increase on the year ago period and a $34 million increase on the previous quarter, thanks in large part to higher total net revenue and a lower provision for credit losses. The Payment Services total net revenue increased $54 million since 3Q/09 while net interest income increased $32 million thanks to growth in credit card balances and improved loan spreads. The Payment Services’ contribution was $34 million higher than the previous quarter thanks to lower credit losses and higher total net revenue and total net revenue increased $17 million. Total noninterest income was $14 million higher on a linked quarter basis because of higher transaction volumes while net interest income increased $3 million due to wider loan spreads and higher volumes.

1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000
1Q/09: $57,877,000,000
2Q/09: $59,725,000,000
3Q/09: $62,011,000,000
4Q/09: $60,729,000,000
1Q/10: $63,437,000,000
2Q/10: $72,952,000,000
3Q/10: $68,620,000,000
Source: CardData (


Bluepoint Launches mCheck Deposit App

Bluepoint Solutions remote deposit capture (RDC), image-based item processing and enterprise content
management software technology for financial institutions has made available mobile remote deposit
capture into an application built for Android-powered smart phones. Bluepoint has configured its
“QwikDeposit ToGo” app for the Android operating system in response to the growing demand and
popularity of Android, currently composing of 9% of the U.S. smart phone market with the fastest growth over
the last six months. The “QwikDeposit ToGo” app enables consumers to securely deposit checks with a
camera-equipped smart phone, transmitted with multiple layers of security.


AmEx Card Services Posts $595mm Net Income

For the 3Q/10, American Express Card Services has posted a net income of $595million for a massive increase over the year ago figure of $158million. American Express Card Services total revenues increased 23% to $3.7 billion from $3.0 billion thanks to consolidation of securitized cardmember loans and higher cardmember spending. Provisions for losses totaled $274 million, down 68% from $850 million a year ago. Total expenses increased 26% with marketing, promotion, rewards and cardmember services up 39% from the year-ago period. Globally, the AmEx International Card Services reported net income of $153 million for the quarter, up 15% from the $133 million in 3Q/09, while total revenues were $1.2 billion. Total expenses increased 25% with marketing, promotion, rewards and cardmember services expenses up 42% year-over-year.

3Q/08: +$244 million
4Q/08: +$ 4 million
1Q/09: -$ 25 million
2Q/09: -$153 million
3Q/09: +$158 million
4Q/09: +365 million
1Q/10: +$428 million
2Q/10: +$522 million
3Q/10: +$595 million
Source: CardData (


MasterCard Completes Acquisition of DataCash Group

MasterCard has completed its acquisition of DataCash for $526 million in aggregate.This
expands MasterCard’s existing e-Commerce merchant gateway presence in Asia and Australia to European
countries and other high-growth, emerging markets worldwide, and allows MasterCard to provide new
services to acquiring customers and drive increased e-Commerce penetration in both existing and new


Yahoo! and AmEx OPEN Expand Business Offering

Yahoo! and American Express have expanded their partnership to offer small businesses the tools to help them grown their businesses with its “Business Solutions” website. The “Business Solutions” microsite will offer Yahoo! Small Business users American Express OPEN’s “AcceptPay” online payment and invoicing solution; “SearchManager” pay-per-click campaign manager; and “InsuranceEdge” real-time quote comparisons. The Business Solutions’ content will be integrated into relevant sites across the Yahoo! network, including Yahoo! News, Finance, and Local, to extend its reach to a targeted audience interested in small business topics. Further expansion of Business Solutions and the tools it offers is scheduled for early 2011.


FSV Payment Appoints New President

Steve Fussell has been appointed to the newly created role of President for FSV Payment Systems network branded prepaid debit card products and processing services. Bringing with him a wealth of experience, Fussell most recently served as CIO responsible for NewComLink’s strategic and information technology initiatives. Previously, he was CIO/COO at NetSpend Corporation, leading their technology, information systems, security and operational areas of the business. Before that, Steve spent over 17 years at Macy’s as a Software Engineer, General Manager, Director, Security Officer and as a Vice President. TX-based FSV Payment Systems delivers processing and prepaid card programs for payroll, rebates, loyalty and promotions and general-purpose reloadable cards for retail, gift and healthcare.

Details Charity Joins Blackhawk Network

Blackhawk Network prepaid and financial payments products has made available the Causes charitable gift card at Gift Card Mall locations in Safeway and Vons stores across California. Causes is dedicated to empowering individuals to have an impact on the world while its new gift card will allow consumers to give a gift that makes a difference. Gift card recipients can choose from over one million charities and make a donation online at Also one of the top applications on Facebook, Causes features popular charities such as the Easter Seals, Red Cross, UNICEF, WWF, and CARE as well as many regional charitable organizations across the country, such as Make-A-Wish Foundation chapters and local food banks. Gift card recipients will choose from over one million charities to help provide clean water, rescue animals, vaccinate children, fight deadly diseases, build schools, feed the hungry, or support another cause they care about.


Americans Cut Everyday Expenses; Spend On Essentials

American consumers are changing their overall shopping habits, decreasing discretionary spending over the next six months, with those uncomfortable with their level of debt has increased 5% to 38% since June since 2Q/10. Meanwhile, those “somewhat” or “very uncomfortable” with their savings level is now at 52%, up 3% since June; 49% avoid shopping altogether or shop only for the essentials; 31% enjoy the occasional splurge; only 19% are able to shop for both the things they need and the things they want; and 72% have cut back on everyday expenses. These findings, according to recent nationwide survey issued by Citi and conducted by Hart Research Associates, demonstrate a growing unease in saving and spending habits. With this, 28% believe it is only a fair time to make a major purchase while 38% feel this sentiment is a poor one; 70% cutback on entertainment spending; 66% have cut back on credit card purchases; 36% are eliminating or reducing mobile phone costs and 34% are eliminating or reducing pay, cable, or satellite television service. To 36%, a decrease in the national unemployment rate indicates economic improvement while 25% say they would rather be encouraged by more jobs in their own area.


eWise Appoints NACHA SVP

Dean Seifert has been appointed Senior VP, Network Development – North America with eWise, provider for NACHA’s Secure Vault Payments (SVP) Network. In his role he will oversee strategic market growth of the SVP network and leading the sales team to drive adoption through both financial institutions and merchants. An active inventor with more than 45 issued and applied patents in payment systems, hardware design and engineering, biometrics and authentication systems, Seifert most recently served as the Group Executive for Sales, Client Relations and Marketing at TSYS. Before this he was with Western Union as the GM & VP, Global Business Payments online international B2B payment service after he served for Product Development at First Data Corporation.


29% of Consumers Confident in Economic Recovery

With only 28.5% very confident or confident in chances for a strong economy in October, up from 27.4% last month but down from the year ago figure of 30.4%, 48.6% are more practical in their holiday gift
purchasing, compared to 47.6% in September and down only slightly from the year ago figure of 48.8%. Meanwhile, 56.7% are focused on needs over wants when spending, increasing three points from the
September figure of 53.8% a point from the year ago figure of 56.0%. However, with U.S. consumers planning to spend an average of $688.87 this upcoming holiday season,
compared with the $681.83 last season, the slow economic reincarnation is slowly underway. These findings, according to a recent National Retail Federation
survey conducted by BIGResearch, also shows promise with 57.1% planning to spend an average of $107.50 on themselves, compared to the year ago figure of
52.9% planning to spend an average of $101.37 on themselves. Additional October 2010 findings show 27.9% expect “more” layoffs over the next six months, down from 51.9% last month;
18.5% are hopeful for “fewer” layoffs, up from 16.1% last month; and 3.9% have personal concerns with becoming laid off, compared to 4.0% last month and 4.7% a year ago. Over the next three months,
34.6% plan to decrease cash outflow, up from the year ago figure of 33.7%; 33.9% are most concerned with paying down debt compared with the year ago figure of 34.7%; 27.1% are focusing on saving; and
23.9% intend to pay with cash more often, compared to 25.3% last year. Last year, 41% of consumers planned to spend significantly more over the next 30
days on travel; 80% Of the affluent expected to spend more on dining out and 30% of U.S. consumers planned to adjust their travel plans for Thanksgiving,
with the 19% who traveled the year prior intending to stay home in 2009. This year, 68.4% indicate the cost of fueling up is impacting their spending and 36.0% are offsetting costs by
simply driving less with 31.9% reducing dining out; 31.1% decreasing vacation/travel; and 27.4% spending less on clothing. Meanwhile, 43.5% anticipate fuel costs to rise by Halloween; 50.9% expect them
to remain the same; 5.6% are hopeful for a decline and all consumers expect an average of $2.91/gal to fill up by October 31(Cardflash Library, 2009/10/14, 2010/10/20).

OCT 05: 38%
OCT 06: 50%
OCT 07: 45%
OCT 08: 19%
OCT 09: 30%
OCT 10: 29%
SOURCE: BIGresearch


Verifone Partners with Gemalto for Euro Expansion

VeriFone Systems and Gemalto have forged a comprehensive strategic partnership. With this, the two companies will jointly pursue new chip card solutions based on the global EMV payment standard; have entered exclusive discussions for VeriFone to acquire Gemalto’s POS solutions business, for which Verifone will provide its full payment solutions product line; and have designated Gemalto the preferred supplier of Machine-to-Machine wireless modules and related solutions for VeriFone payment systems. For VeriFone’s planned European expansion campaign, the partnership will operate out of France and serve as an ideal initial step. This expansion comes on the heels of rumors VeriFone is pursuing a hostile takeover of Hypercom. This only after unsolicited September 24th, 29th and 27th proposals Verifone made to acquire Hypercom outstanding shares for $5.25 per share in cash for a total of $290 million, which was unanimously rejected by the Hypercom Board (Cardflash Library 2010/10/08).