ACI Worldwide Q2 Revenues Decline 20% Y/Y

ACI Worldwide reported revenue of $87 million in the quarter ended June
30th, a 20% decline over 2Q/08. Net loss for the quarter was $3.6
million, compared to net income of $0.8 million during the same period
last year. ACI says the reduced revenue was largely attributable to
initial license fee and service fee contributions of $15 million due to
the impact of “Faster Payments” and the Middle East switch “go live” in
the prior-year quarter as well as negative foreign currency exchange
which dropped revenue by $4 million for 2Q/09. During the quarter there
were strong money transfer system bookings in the U.S.; the Americas
booked four key Latin American multi-product bank transactions; sales
bookings in the EMEA included a large term renewal and add-on for a
Dutch bank and a “BASE24-eps/Proactive Risk Manager/Payments Manager”
deal signed in France; and in Asia a new customer in Vietnam for
“BASE24-eps” as well as a risk management system sale in New Zealand.
ACI predicts fiscal year sales of $450 million to $460 million. For
complete details on ACI’s latest performance visit CardData
(www.carddata.com).

ACI REVENUES
2Q/07: $ 98.1 million
3Q/07: $ 84.9 million
4Q/07: $101.3 million
1Q/08: $ 90.7 million
2Q/08: $109.2 million
3Q/08: $108.6 million
4Q/08: $109.2 million
1Q/09: $ 88.2 million
2Q/09: $ 87.2 million
Source: CardData (www.carddata.com)

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Consumers Turn Bearish on Credit Card Usage

The length of the current recession will likely have a profound and
long-term effect on future overall credit utilization and most
significantly, credit card usage. A new report finds nearly two-thirds
of respondents can be classified as “payment changers,” indicating they
have taken specific actions to reduce credit card use, including
purchases shifting to debit, prepaid and charge cards or cash.
The study by Mercator Advisory Group found when consumers take actions
to reduce credit card use, a vast majority indicate those specific
actions are likely to be permanent, lasting beyond the recession.
Also, declining access to card-based credit is widespread, but not all
actions are negative. Of the 27% of respondents noting they applied for
new credit cards, about 60% were successful. Among those who experienced
an adverse outcome (line reduction, involuntary account closure, denied
application), 15% of all respondents indicate they delayed or cancelled
purchases (including vacations, major purchases, daily essentials, or
small business purchases) due to reduced credit access. Mercator
suggests credit card issuers need to leverage consumer loyalty to
existing card relationships to carry them through the recession.

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Persolvo Data Systems Announces Advisory Board

Credit card industry veterans and a credit bureau executive will make up the initial
members of Persolvo’s advisory board, which includes Carmine Dorio, SVP Progressive Financial Services,
Dan Buell, Vice President, Credit Services Marketing, Experian,
Jim Mahoney, former Sr. VP, Business Development, Apollo Enterprise
Solutions, John Furjanic, President, ROI Solutions and
Michael Walker, CEO, Payment Program Management Corporation.
Persolvo’s web-based settlement application allows creditors and
collectors to locate debtors enrolled in debt settlement programs,
analyze their account information to uncover highly-liquid settlement
opportunities and settle large volumes accounts online with hundreds of
debt settlement companies using Persolvo’s hosted settlement
application.

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Precision Dynamics Payment Wristband Deployed

Precision Dynamics Corporation (PDC) automatic wristband identification
has launched its patented “Smart Band RFID” Wristband System at the
NC-based Great Wolf Lodge. As adults register, they are provided the
“Smart Band RFID” wristband, which is embedded with a 13.56MHz RFID
inlay to provide secure data transmission throughout the resort. The new
solutions allows keyless entry into hotel room, is compatible with RFID
enabled point of sale (POS) workstations and vending machines throughout
the resort. Allowing guests to make cashless payments at food and
beverage concessions, gift shops, and restaurants, they have the choice
of using the wristbands to make charges directly to their rooms or to
set up a pre-funded account for purchases. All information on the “Smart
Band RFID” Wristband System is fully encrypted, providing maximum
security for guests.

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GLOBAL BROADBANDPAY

Global Payments Asia-Pacific Limited, a joint venture between HSBC and
U.S.-based Global Payments, has introduced its “Global BroadbandPay”
IP-based POS solution. The new POS solution offers a fast, secure and
reliable card acceptance across Asia-Pacific using merchants’ existing
internet connections. It is powered by a 32-bit ARM 9 processor-based
Hypercom “T4220” POS device on a high-speed SSL-enabled IP network. This
payment solution is also compliant to the Payment Application Data
Security Standard (PA-DSS) and Payment Card Industry PIN Entry Device
(PCI-PED) for secure PIN entry, assuring merchants and cardholders
receive added protection. “Global BroadbandPay” offers an alternative to
the traditional dial-up systems, authorizes chip card transactions in as
little two seconds and is currently available in Brunei, Hong Kong, Macau, the Maldives, the Philippines, Singapore and Sri Lanka.

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Spring Optimism Changes to Summer Pessimism

A monthly tracking poll has found that growing pessimism toward the
economy has more consumers planning to cut back on spending overall.
The number of consumers expecting to spend more in the month ahead fell
to an astonishing 21% in July. The Discover “U.S. Spending Monitor” fell
for the second consecutive month from 85.6 to 83.5. Overall, 61% rated
current economic conditions as poor, a 2-point increase from the
previous month. Discover found that 53% are planning to spend less on
discretionary purchases like going out to dinner or the movies, 50% plan
on spending less on home improvement purchases and half plan on
spending less on major personal purchases like a vacation. This is also
the first time since March that a majority of consumers are planning
cutbacks in all of the discretionary spending categories surveyed.
The cutbacks consumers are making toward discretionary spending aren’t
having a positive effect on consumer savings either. Forty-two percent
expect to save or invest less in the month ahead, tying a “Monitor”
high, while only 9% expect to save or invest more, a “Monitor” low.

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Customer Experience More Important than Price

A new study reveals consumers are willing to reward exceptional experiences with larger purchases, longer relationships and premium price. Seven out of ten consumers surveyed indicated they are willing to spend over 10% more with businesses if they were very impressed; loyal customers are almost three times as likely to continue doing business with companies for more than ten years than dissatisfied customers; while dissatisfied customers are ten times more likely to attrite over the next year. The “Customer Experience” report by the Strativity also showed 40% are willing to pay 10% more; only 9% of dissatisfied customers are willing to pay 10% more; 52% of dissatisfied customers expect discounts of 5% or more to continue doing business; and customers seek quick issue resolution, common sense, employees who exceed expectations and simplicity.

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VANCITY VISA

The Vancity online banking subsidiary, Citizens Bank, is directing the
focus of its operations to Visa card services and foreign exchange
services for non-retail members. Ceasing personal banking operations,
Vancity will sell most of Citizens Bank retail loans to The
Toronto-Dominion Bank (“TD Canada Trust”) for an undisclosed amount.
These loans include Citizens Bank residential mortgages, personal loans
and real estate secured lines of credit. Subsequently, Citizens Bank
will become a non-deposit-taking bank; will focus on Visa credit card
services for non-retail members; its three boutique branches are slated
to close in December of 2009; Citizens Bank will continue to service
personal accounts until 2010; account members are free to transfer
accounts to other financial institution; registered savings plans need
transfer to another institution; and group insurance on credit products
will continue to have coverage. None of Citizens Bank’s 30,000 members
need to take any immediate action and will be counseled to avoid
inconvenience and offered support to transfer their business.

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RADIANT & GPG

Radiant Systems has inked agreements with Gippsland Petroleum Group
(GPG) to deploy point-of-sale technology across its 20 retail fuel
locations in Victoria. Having been a Radiant customer for 15 years,
Radiant is providing the solution to include POS, fuel control and
above-store systems with a standard interface to the back office system.
The Radiant Configuration Manager enables head-office staff to manage
specials and promotions of convenience items and fuel unique to each GPG
location while POS software running on “P1550” POS terminals allow for
deploying outdoor card readers down the road. Radiant Systems provides
innovative technology to redefine the consumer experience in more than
100,000 merchant locations.

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VTS Exceeds 1,000 Monitors in Boston Taxis

VeriFone Transportation Systems has installed more than 1,000
state-of-the-art payment and passenger information
monitors in Boston-area taxis. Under regulations that went into effect
January 1, 2009 all taxis
licensed by the City of Boston are required to provide credit card
payment systems for use by passengers. The VTS systems deployed in
Boston are based on VeriFone’s “MX870”
multimedia payment systems, which support secure credit card
transactions. The “MX870” is the leading choice for organizations that
want to leverage full featured automation capabilities such as dispatch
automation, text messaging, voice guided navigation, real-time moving
map functionality and passenger information delivery.
VTS provides wireless payment,
navigation, dispatch, text messaging, and real-time information to the
transit, vehicle for hire, dispatch, and cargo transportation industries.

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Zong Passes the 10MM User Milestone

Frictionless payment service Zong has passed the 10 million unique user milestone.
Zong is the leading mobile payment service used for monetizing Web
audiences in the social media and gaming industries. Already available today in 19
countries across 100 carriers, Zong also announced today it is adding
new carrier partners in Eastern Europe, Russia, Southeast Asia and South
America. In the last year, Zong has more than doubled its carrier
coverage with partnerships in place to cover 30 countries.
Zong is the leading mobile payment service used for monetizing Web
audiences in the social media and gaming industries.

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