Visa announced two major partnerships to expand mobile payment services globally. The NeuStar alliance will combine Visaâs global payment network with NeuStarâs carrier grade infrastructure. NeuStar and Visa will commit resources to support development of commercially viable programs to support new application use cases. The initiative is also designed to enable a more robust set of mobile payment services by allowing Visa, financial institutions and mobile operators to collaborate more closely and provide information-rich transactions that can make mobile payment services more personalized, functional, and secure. Meanwhile, in Peru, VisaNet Peru and Telefonica will launch the “Pago MÃ³vil con Visa” service (Visa Mobile Pay) to enable cardholders in Peru to pay for products and services over a wireless network. The service is available to Visa accountholders with credit or debit cards issued by Banco de CrÃ©dito, Interbank, BBVA Continental and Scotiabank in Peru. The launch of “Pago MÃ³vil con Visa” follows on the heels of the launch of the worldâs first commercial Visa mobile payments service for POS transactions using NFC technology. The program was announced jointly with Maxis, the largest wireless carrier in Malaysia, Nokia and Maybank.Details
TX-based prepaid card provider FSV Payment Systems has appointed Richard âRickâ Savard, previously with Netspend, to the Board of Directors.
From 2004 until 2008, Savard served as CEO of Netspend, during which
time he led the company through a period of rapid expansion and growth.
Prior to joining Netspend in 2004, Savard was SVP of Marketing for
Federated Department Stores where he led Federatedâs marketing
activities for all private label credit cards, the companyâs Visa
portfolio, gift cards, and loyalty program development. Earlier in his
career, Savard was responsible for the development and launch of the
Membership Rewards Program for American Express Canada where he served
as Vice President.
RFI Global Services (RFI) testing and consultancy services for cellular,
wireless and smart card technologies has joined the GlobalPlatform
international smart card specification body to keep up with the latest
advancements in mobile payment technology. Having already supported
various worldwide implementations based on GlobalPlatform
Specifications, RFI is joining as an Observer Member to monitor
technical committees, debate issues, participate in Mobile Task Force
initiatives and discuss trends through the Body’s Advisory Council
meetings. In its 10th anniversary, GlobalPlatform provides smart card
infrastructure development with cross-industry representation from all
world continents while RFI Global Services testing services and hardware
engineering offers its expertise around the world.
Alternative payment provider MyECheck has signed Wealthworld and Alternative Info Solutions to its software suite.
Alternative Info Solutions is a provider of home study marketing courses and
Wealthworld is a financial training company that teaches its customers how to get out of debt, repair their credit and start to build real wealth through products, services and seminars. MyECheck utilizes a proprietary, patented method of creating and clearing remotely created checks. eChecks processed on the MyECheck system are typically accepted in 1 to 3 seconds and clear the same day or overnight compared to typical Automatic Clearing House System (ACH) time frames of 3 to 5 days. MyECheck provides the most viable alternative to credit cards enabling conversion of declined transactions or
customers without credit cards.
Enterprise payment solution provider Shift4 and application software supplier SoftBrands has integrated an end-to-end Property Management
System (PMS) with Shift4’s “DOLLARS ON THE NET” payment gateway, a PCI-compliant solution that is currently in development for SoftBrands’ PMS to achieve Real Security, an environment where no cardholder data is stored, transmitted or processed at the merchant level. Once a property is running SoftBrands applications with “DOLLARS ON THE NET” and “Card Information Replacement Technology”, their PMS is completely out of the scope of PCI because the SoftBrands system is no longer handling real card holder data. Shift4 is a developer of secure financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and eCommerce markets. DOLLARS ON THE NET provides both high-speed and low cost authorizations and settlements for credit, debit, check, private label and gift card transactions.
MasterCard has named a new President to take the controls on August
31st. Ajay Banga, currently Citigroup’s CEO of Citi Asia Pacific,
will become MasterCard’s President and CEO, replacing current President
Robert Selander, who will continue to serve as CEO. Banga will be
responsible for key business operations including customer relationships
globally in international and U.S. markets, products, services,
marketing, technology and operations. The company’s finance, human
resources, and law and franchise integrity functions will continue to
report to Selander. Banga joined Citi in 1996 as Head of Marketing and
Sales in India, rising through the ranks to Head of Sales, Marketing and
Business Development for EMEA, and was then appointed Division
Executive, Consumer Bank for CEMEA. In 2000 he was appointed Business
Head, CitiFinancial and U.S. Consumer Assets, and in 2002 became EVP,
Global Consumer Group and President, Retail Banking North America.
He was named Chairman and Chief Executive Officer of Citi’s Global
Consumer Group International in 2005, which included all credit card and
consumer banking operations outside North America. He was appointed to
his current position in 2008.
TN-based incentive programs and prepaid card solutions provider
VIPGift has received “Level One PCI DSS certification.” Visa has also designated the Company as a CISP
(Cardholder Information Security Program) PCI DSS compliant service
provider. Attaining this certification shows VIPGiftâs commitment to
safeguarding customer card and personal information. Clients use VIPGiftâs products and services for customer acquisition and loyalty programs, employee incentive and retention programs, marketing initiatives, sales channel incentives and consumer rebate programs. VIPGiftâs wide array of customized rewards have helped position the company as a market leader in the incentives industry.
The “Return on Average Assets” for the U.S. credit card industry continues to sink in 2009, marking its 12th consecutive monthly decline in May. The record low of 27 basis points compares to 31 basis points in April and 215 basis points one-year ago. According to CardData, the ROAA for Visa and MasterCard portfolios peaked in February 2007 at 263 basis points. ROAA is determined by dividing the after-tax return by the average managed card outstandings and then annualizing. According to
R.K. Hammer Investment Bankers, pre-tax profit for the U.S. credit card industry declined 2.7% in 2008 to $39.6 billion driven by rising expense streams, especially charge-offs. Bank of America reported that its “Return on Average Equity” for its Global Card business dropped to a negative 17.90% in the first quarter, compared to 0.26% in the fourth quarter and 9.18% in the 1Q/08. Chase Cards posted a pretax “Return on Average Managed Outstandings” of -1.92% for 1Q/09, compared to -1.16% in the prior quarter and +2.52% for the first quarter of 2008. Citi’s North American cards unit report a “Return on Managed Assets” for the first quarter of -0.55%, compared to -0.92% in 4Q/08 and +1.32% for the year ago quarter. For the latest portfolio metrics visit CardData (www.carddata.com).
RETURN ON AVERAGE ASSETS
May 08: 2.15%
Jun 08: 2.02%
Jul 08: 2.00%
Aug 08: 1.48%
Sep 08: 1.11%
Oct 08: 1.04%
Nov 08: 0.95%
Dec 08: 0.88%
Jan 09: 0.79%
Feb 09: 0.68%
Mar 09: 0.61%
Apr 09: 0.31%
May 09: 0.27%
Source: CardData (www.carddata.com)
Matrix technology provider Veritec has launched its “Mobile Toggle Card (MTC)
Program” using its mobile banking software platform for debit, pre-paid and gift cards.
Licensed by the Veritec Financial Systems (VTFS), the “MTC Program” allows card
issuers and sponsors to offer “MTC”-branded debit or gift cards, which combat non
permitted and fraudulent card use. In doing so, the program allows users to toggle
cards on and off through their mobile phones with features such as online card
application, direct deposits to their cards, fund transfer to the account and mobile phone
account activity alerts. VTFS also allows card issuers and sponsors to issue debit, pre-
paid and gift cards under their own branded programs through its mobile banking
platform and related professional services.
Western Union Company money-transfer services has introduced its
“Digital Vendor Program” to offer its services using mobile finance
initiatives in Latin America, Africa, the Middle East and Asia. Endorsed
by the GSM Association, which represents over 750 mobile operators
worldwide, the “Digital Vendor Program” is initially offering its
certification program to finance platform providers on a single-country
basis, including South Africa-based Fundamo, India-based mChek,
U.S.-based Sybase 365 and Singapore-based Utiba Pte. Western Union is
certifying mobile platform vendors to reduce integration costs and
accelerate go-to-market activities for banks and mobile operators by
creating standard technical deployments. Once a bank or mobile operator
contracts with Western Union to activate the Western Union “Mobile Money
Transfer service”, consumers can remit funds on the Western Union global
money transfer network of 334,000 Agents in 200 countries. Fundamo
mobile banking software solution oversees 30 successful deployments in
20 countries, mChek mobile-based payment services enables users to
transact through their mobiles phones, Sybase 365 Processes more than
200 billion messages per year for more than 700 mobile operators and
their 3 billion subscribers while Utiba was founded in 2001 offering its
mobile commerce solutions in 20 countries through more than 15 operators.
Payment network NYCE has renewed its relationship with IL-based Citizens Equity First Credit Union. NYCE is the credit unionâs exclusive provider of domestic ATM and point-of-sale access. CEFCU is one of the United Statesâ largest community-based credit unions with assets of more than $4 billion. It serves more than 262,000
members in 50 states and several foreign countries, and it contributes
nearly 370,000 cards and 109 ATMs to the NYCE Network.
NYCE Payments Network is a leading U.S. electronic
payments network and a Metavante company, a
leading provider of banking and payments technology.