Global Cash Access Holdings reported its 1Q/10 revenue was $158.5 million, a decrease of 12.8% over the $181.7 million in revenue recorded in the same quarter last year. Revenues during the quarter were adversely impacted by the continued weakness in the gaming sector and consumer revolving credit. Operating income was $15.5 million, a decrease of 19.7% over the $19.3 million recognized in the prior yearâs first quarter. Earnings before interest, taxes, depreciation and amortization (âEBITDAâ) (see Non-GAAP Financial Information below) were $19.9 million, a decrease of 17.4% compared to the same period in the prior yearâs first quarter. Income from continuing operations in the first quarter of 2010 was $11.2 million, down 23.3% from the first quarter of 2009. Diluted earnings per share from continuing operations were $0.10 in the first quarter of 2010 (on 70.5 million diluted shares) as compared to $0.12 in the first quarter of 2009 (on 77.4 million diluted shares). Cash EPS were $0.17 in the first quarter of 2010, a 5.6% decrease from the $0.18 reported in the prior yearâs first quarter.Details
Heartland Payment Systems payments processing announced 1Q/10 systems revenues of $411million and GAAP net income of $14.2 million. Net revenues totaled $103.8 million, an increase of 5.4% compared to $98.5 million in year-ago period. Card processing volume for the three months ended March 31, 2010 was $14.4 billion, an increase of 7.2% compared to1Q/09, thanks to contributions from the ramp up in Discover and American Express activity, as well as growth in other SME merchant volume. In the first quarter of 2010, operating income as a percentage of net revenues was 2.5%, reflecting the economyâs impact on net revenue growth. Additionally, small and Mid-Sized merchant (SME) transaction processing volume was $14.4 billion, up 7.2% compared with 1Q/09; Transactions processed for Large National merchants of 685 million, up 6.8% compared with 1Q/09; Quarterly net revenue was $103.8 million, up 5.4% compared with 1Q/09; 94.6% of new merchants installed were on HPS Exchange compared to 91.2% in 1Q/09; and a 370 basis point sequential improvement in same store sales performance (1.5%) relative to the 1Q/09.
HEARTLAND PAYMENT SYSTEMS REVENUES
1Q/09: $372 million
2Q/09: $417 million
3Q/09: $443 million
4Q/09: $420 million
1Q/10: $411 million
Source: CardData (http://www.carddata.com)
American Express and Delta Air Lines have introduced free bag checking for U.S. Consumer and Small Business Gold, Platinum and Reserve Delta SkyMiles Credit Cardmembers. Starting June 1, 2010, Delta SkyMiles Credit Cardmembers will receive a free first checked bag on every Delta flight available for up to nine people in the same reservation, including the Cardmember, for total potential savings of up to $200 when flying round-trip. Cardmembers receive a first checked bag fee waiver upon check-in. First and Business Class passengers, SkyMiles Medallion members, and passengers with a confirmed Full Y Class Economy ticket may continue to check up to two bags at no charge. American Express offers several Delta co-brand Credit Cards, including the Gold and Platinum Delta SkyMiles Credit Cards, and Delta Reserve Credit Card. In addition to the new “First Bag Free” benefit, these Cards offer many features such as miles with no earning caps; double miles on all Delta purchases; Exclusive access to the Pay with Miles feature and Complimentary Delta Sky Club access for Delta Reserve Credit Cardmembers.Details
Standard & Poor’s and Experian have partnered to launch a series of consumer credit default indices in the United States. The “S&P/Experian Consumer Credit Default Indices” will launch May 18 and seek to measure the balance-weighted proportion of consumer credit accounts that go into default for the first time each month. Unlike other publicly released metrics that recount previously defaulted loans or that measure delinquency rates only on securitized loans, the S&P/Experian Consumer Credit Default Indices are based on a broad cross-section of the entire U.S. consumer credit population. The S&P/Experian Consumer Credit Default Indices will consist of four headline indices as determined by loan type, and a composite index: S&P/Experian Auto Default Index, S&P/Experian First Mortgage Default Index, S&P/Experian Second Mortgage Default Index, S&P/Experian Bankcard Default Index, and S&P/Experian Consumer Credit Default Composite Index.Details
Data security provider nuBridges has enhanced its support for IBM
i-reliant organizations to further simplify adoption and implementation
of tokenization as a data-centric information security strategy.
“nuBridges Protect” offers a native IBM i adapter to handle
Web services-based communication with nuBridges Protect Token Manager,
which runs on distributed platforms. The nuBridges Protect Adapter for IBM i enables companies to
extend tokenization to IBM i applications without Web services
programming in order to protect inbound sensitive data in applications
such as online shopping carts, order management, billing systems and
payroll and handles all of the front-end Web
services communications between IBM i applications and nuBridges Protect
Token Manager for all Token Manager functions; and exposes back-end
callable RPG, COBOL and C APIs so it is easy for IT to connect IBM i
applications to the adapter via familiar technologies. This allows enterprises to reduce
breach risk for IBM i applications that use confidential and sensitive
information, and take IBM i systems out of scope for Payment Card
Industry Data Security Standard (PCI DSS) compliance and audits.
Prepaid mobile service Shaka Mobile has
successfully launched in partnership with MFunds Global Payment
Solutions a Mobile Money Transfer (MMT) service for African immigrants in the US.
Diaspora Africans, who are using Shaka Mobile prepaid mobile phone in
the USA may now send and receive money straight from their mobile phone.
Diaspora African customers in the US will receive a “primary” card and
can order “family” cards that they can send to their friends and
relatives. The Diaspora Africans can load money onto their primary card
account via direct deposit, transfer from a checking or savings bank
account, and with cash through selected merchants, thus effectively
providing the ability to send money to the family cards from their
mobile phone through the WAP or SMS messaging. Transactions are
processed in real-time through MFunds Global Payment Solutions’ secure
platform; both sender and receiver are immediately notified by SMS.
Aite Group provides insight into where end-to-end encryption (E2EE) is going based on the perspectives of key decision-makers at core vendors of such solutions. Considering the revenue models being adopted by E2EE vendors, the report speculates on the long-term prospects for E2EE adoption, standardization of tokenization, and the likelihood of a shift to EMV chip card infrastructure in the United States. The report concludes that the most appropriate technological route to address current card fraud threats in the United States is E2EE, particularly given the entrenched nature of magnetic card infrastructure in the United States. While E2EE does not prevent the use of counterfeit or lost and stolen cards, it prevents criminals from accessing the card data itself. The providers of E2EE are generally POS hardware vendors, payments processors, or security vendors that partner with E2EE experts to offer solutions.Details
FL-based self-service kiosk supplier Global Axcess announced that it has signed a
three-year agreement with a major grocery chain to
install 300 new DVD kiosk locations positioned to grow by 20% or more locations.
The Grocery has been an ATM client of Global Axcess. Rollout of the DVD
program with the Grocery will begin in July of this year. Global Axcess provides
turnkey ATM and other self-service kiosk management solutions that include
cash and inventory management, project and account management services.
Global Axcess Corp currently owns, manages or operates more than 4,500 ATMs
and other self-service kiosks in its national network spanning 43 states.
Consumer confidence rebounded in April with a 13% decline among 18- to 39-year-olds who feel the U.S. economy is poor, compared to a 3% decline amongst older customers. This, according to the Discover U.S. Spending Monitorâ a poll of 8,200 consumers that tracks consumer confidence and spending intentions on a daily basis â concludes 45% of younger consumers feel the U.S. economy is poor and, overall, jumped 5.5 points in April to 91.5 (based out of 100), the highest the Monitorâs index has been since November 2007, shows 34% believe economic conditions are improving and 50% rated the economy as poor in April, a 7-point decrease from March. Additional findings show the number of younger consumers who felt economic conditions were worsening declined 9 points to 40%, expecting an income shortfall in the month ahead, a 3-point decline from March; those ages 18 to 39 who felt their personal finances were getting worse declined 6 points from the previous month to 40%; and 26 percent felt their finances were getting better in April, which tracked higher than the average of 23 percent. A Monitor-high 23% of consumers felt their finances were getting better in April, 2 points higher than March while 11% would spend more on discretionary items.Details
American Express has launched “ZYNC from American Express,” a new Charge Card designed for and with a new generation of Cardmembers in their 20s and 30s. Offered in beta since December 2009, the “ZYNC” Card brings together the financial control of the pay-in-full Charge Card with the added flexibility to select bundles of rewards and benefits called âPacks.â American Express conducted research with the younger consumers to identify their lifestyle interests and passions to help shape the Card and Pack offerings and will subsequently be introducing six new “ZYNC Packs,” along with making some changes to the original four Packs that were tested during beta. Tailored to specific lifestyle interests and spending habits in music, fashion, food, travel and more, some of the ten “Packs” currently available include the “Pack Benefit Cost”; the “Family Travel Access” assisting in booking vacations, family-specific travel benefits and savings with hotels, cruise, car rental and tour partners, and more; the “Personal Finance Complimentary” credit score and report, access to money management tools and tips; the “Eco 2X Membership Rewards” points at more than 4,000 select green merchants as rated by Greenopia; and the “Music 2X Membership Rewards” points on concert tickets, pre-sale access to select music events and concert tickets $5.Details
Angell EYE has introduced the “USB swiper” that requires no phone lines or hardwired card reader.
The mobile credit card swiper is a portable
device that plugs into a USB port on any computer and reads credit card
information for transmittal to Paypal. The transaction is processed and
the sale accepted or denied at the point of sale, eliminating the risk that
someone may pay with a card that is not accepted. The funds are
instantly deposited into the business’s Paypal account.
Self service kiosk supplier Global Axcess reported revenues from
continuing operations of $5.4 million for the three-month period ended
March 31, 2010. Gross profit from continuing operations was $2.5 million,
or 46.9% gross margin, for the first quarter 2010 compared to $2.6 million, or
47.3% gross margin, for the same period of 2009. The Company experienced
a slight increase in cost of revenues related to cash replenishment
activities that were impacted by the severe winter weather.
Operating expenses for the first quarter ended March 31, 2010 increased
16.9% to $2.1 million from $1.8 million in the same period of 2009.
During the first quarter of 2010, the Company hired consultants and
employees with industry expertise to spearhead efforts in its DVD rental
kiosk initiative. These expenses and other expenses related to the DVD
kiosk initiative were the largest single component, contributing
approximately $94,000 or 40% of the increase in SG&A expenses.
Income from continuing operations was $439,899 for the quarter ended
March 31, 2010 compared to $776,770 in the same period of 2009.