MONTISE & PAYNET

Monitise mobile banking services has signed a joint venture agreement
with Paynet electronics payment company. With the regional mobile phone
penetration nearing 50% of the consumer population, this partnership
will allow Monitise to extend its business further into Africa and the
Middle East to offer millions access to m-banking and financial
services. This thanks to Paynet’s well-established electronic payment
network in Kenya, Tanzania and Uganda that connects to 35 regional
financial institutions. In addition to providing traditional mobile
banking to bank account holders, Monitise also enables people without a
bank account to use its services with technology that works across all
generations of mobile phone platforms.

Details

JUNE DEBT

Annual growth in credit card outstandings continued to slow in June, growing at an annual rate of 1.0%, compared to 1.3% in May and 7.3% one-year ago. Credit limits are also decelerating, growing 1.7% in June, compared to 2.4% in the prior month and 4.6% in June 2008. According to the Reserve Bank of New Zealand, credit card outstandings were NZ$5.18 billion in June, compared to NZ$5.10 billion one-year ago. Credit limits hit NZ$17.6 billion. Credit card volume for June was NZ$2.2 billion, more than 2% below the same month last year. The average interest rate charged on a credit card account in June was 18.4%, compared to 20.2% one-year ago.

Details

Coinstar to Distribute nFinanSe Cards

Prepaid card provider nFinanSe has signed an agreement with Coinstar
E-Payment Services to distribute nFinanSe’s reloadable cards
for Coinstar’s “Pay as You Go” Solution. nFinanSe’s Reloadable Prepaid
Cards feature a $3 purchase price, a $2.95 monthly and reload fees, free
direct deposit of payroll with no hidden transaction fees and no fees on
purchases. The cards are reloadable at over 80,000 nFinanSe Network
nationwide locations with “Free… of course!” Live Customer Service
available 24 hours a day, 7 days a week in English and Spanish.
Purchase and available balance information is sent to cardholder’s cell
phone and/or email address after each transaction and there is mobile
couponing through RocketBux. Coinstar’s “Pay As You Go” solution
featuring national and regional prepaid wireless programs, long distance
cards, gift cards, digital
entertainment products and one of the industry’s largest portfolios of
financial services. Coinstar’s products and services can be found at
select retail locations nationwide.

Details

New Study Shows the Positive Impact of EBPP

EBPP IMPACT
A new study has found that customers who receive paperless electronic
bills at a company website or at a financial institution website, or who
use recurring payments, are more profitable for the billing
organization. The study also validated the importance of delivering
e-bills not only via an organization’s own website, but also via
financial institution sites, because where a bill is received impacts
payment method. Conducted by Aspen Marketing Services on behalf of
Fiserv, the research reveals e-bill users are 12.5% less likely to
leave, are 35% more likely to pay their bills on time, and purchase 20%
more products than paper bill users. Automatic, recurring payment users
are 14% less likely to leave and 86% more likely to pay their bills on
time. Among the customers studied 74% who receive an e-bill at a bank
site pay using a deduction from their bank account and 40% of customers
who receive bills at the company site pay using a card-funded payment, a
higher cost method of payment.

Details

ADS and Charming Shoppes Ink a Store Card Deal

Charming Shoppes has signed a deal to sell its private label credit card receivables to Alliance Data Systems. The two companies also signed a ten-year operating agreement for the servicing of the Charming Shoppes’ cards. The deal covers the operation of the Lane Bryant, Fashion Bug and Catherines credit card programs. Charming operates its private label credit card program in-house. There are currently 4.5 million active accounts generating $680 million in annual sales volume and carrying $500 million in outstandings. Charming says the cards represent 32% of its retail stores nets sales for the trailing 12 months. Charming operates women’s apparel brands including Lane Bryant, Lane Bryant Outlet, Fashion Bug and Catherines Plus Sizes, and posts annual sales of more than $2 billion with 2,258 retail stores nationwide. Gross proceeds from the transaction are estimated at $140 million with $110 million net to Charming. ADS plans to maintain and operate Charming Shoppes’ existing Milford, OH card support facility. The deal is expected to close by the end of the year.

Details

INSIDE & CRI

INSIDE Contactless has signed agreements with Cryptography Research
(CRI) for the use of CRI’s patents covering countermeasures to
Differential Power Analysis (DPA) and related attacks. CRI’s solution
will protect INSIDE’s secure semiconductor products, which may use the
CRI patents for its contactless semiconductor security on contactless
cards, key fobs, mobile payment bridge products, and NFC secure elements
for mobile phones. INSIDE has delivered more than 100million “MicroPass”
chips containing operating system and application software for major
brands in the financial services industry. Cryptography Research has
been awarded a portfolio of approximately 50 patents covering
countermeasures to DPA attacks in banking, pay television, mass transit,
secure ID, and wireless telecommunications.

Details

New Report Details Range of Prepaid Card Fees

A new report suggests prepaid card are loaded with consumer
“gotchas.” The Consumers Union study found that activation fees ranged
from a low of $3 for the “Walmart Money Card” to a $99.95 to apply for
and initiate the “Millennium Advantage” card. Monthly fees ranged from
$2.95 for the FinanSe card to $10 per month for the “Rush Card”. Fees
for withdrawing cash from ATMs ranged from $1.50 per withdrawal for the
FinanSe, SVC Revel, and Espree cards to $2.50 per withdrawal for the
“NetSpend Visa.” Most prepaid card issuers provide free customer
service, but consumers using the “Millennium Advantage” card will be
charged $1 per minute when they call customer service, while users of
the “Espree” card will pay $3 for each customer service call. CU also
found that dormancy fees ranged from $1.95 per month for the “Rush Card”
(after 90 days of inactivity) to $9.95 per month for the “Exact” card.
Additionally, overdraft or “shortage” fees ranged from $24.90 charged by
“Espree” for overdrafts to $29 charged by “Eufora” and “AccountNow”.

Details

British Airways and AmEx Expand Card Program

British Airways and American Express have renewed their credit card partnership. Managed by British Airways’ rewards subsidiary The Mileage Company, the partnership includes three consumer co-brand cards, a corporate co-brand card and merchant acceptance agreements. The “American Express Membership Rewards” agreement, launched in August 2008, is for the first time extended into the U.S., allowing British Airways American Express consumer and corporate cardholders in the U.K. to continue to collect “BA Miles” and “On Business Points,” respectively. This also allows U.S. American Express cardholders to transfer “Membership Reward” points into British Airways’ “Executive Club Frequent Flyer” program for travel on British Airways and “Oneworld” partners. The Mileage Company UK-based reward program currently serves four million in 2008 through its 200 brands.

Details

Elavon Signs Alliance Deal with FNC

Card acquirer Elavon signed a three-year agreement with FNC, a technology company
offering tailored solutions for the real-estate and mortgage industry to
streamline industry processes, regulations and compliance.
The agreement provides credit and debit processing services via a new
dashboard functionality offered by FNC in support of the Home Valuation
Code of Conduct (HVCC) – a regulatory requirement impacting the mortgage
industry’s appraiser selection process. FNC’s Collateral Management
System® and Collateral HQ™ technology platform provide real-estate and
mortgage banking professionals with a single source for managing
multiple vendor relationships throughout the entire lending process.
Elavon’s solution enables FNC’s lender clients to deliver a credit/debit
payment feature on their dashboard, enabling them to more efficiently
collect and pay vendor fees.

Details

TODOS & OATH

Todos has become a member of the OATH (Open Authentication) industry
initiative to combat online fraud globally. To provide open
specification for strong authentication, OATH with Todos’ “eCode”
back-end architecture, which is an open, flexible authentication
platform to support smart card reader, token, PKI and mobile
identification. “eCode” joins the more than 80 device, platform and
application vendors and end-user customers with this development and can
now retain its ability to provide uniquely flexible compatibility with
authentication protocols. Todos AB helps banks and other businesses
create secure relationships with their customers, having delivered
20million products to over 100 financial institutions in more than 30
countries.

Details

Debit Card Strategies Needed for Consumer Shift

A new report predicts debit card transaction volume and card spend will continue to grow through 2015. Since credit cards are fading in popularity due to the current recession and regulatory environment, the study recommends financial institutions implement debit card strategies such as cross-selling credit cards, investments and mortgages to their debit card customer pool. The TowerGroup research notes that in less than 15 years, debit card transactions in the USA grew from 1% of non-cash transactions to more than 50%. According to CardData, U.S. debit card “Purchase Dollar Volume” (PDV) for Visa and MasterCard is now rising by about 5% as the number of purchase transactions are increasing by more than 10%. However, Visa and MasterCard posted $281 billion in first quarter PDV versus $268 billion in 1Q/08 PDV, representing a decline of 4.9%. (CF Library 7/31/09)

V/MC DEBIT CARD GDV
2008 $1512.0b
2007 $1357.0b
2006 $1175.1b
2005 $ 950.6b
2004 $ 686.0b
2003 $ 576.6b
2002 $ 496.4b
2001 $ 420.7b
2000 $ 301.8b
1999 $ 232.0b
1998 $ 169.8b
1997 $ 110.5b
1996 $ 46.0b
1995 $ 36.2b
1994 $ 22.1b
1993 $ 13.1b
1992 $ 11.8b
1991 $ 9.5b
1990 $ 8.0b
Source: CardData (www.carddata.com)

Details