Cincinnati-based Fifth Third Bank has joined NACHA as a direct financial institution member, making it the 43rd in direct membership. Fifth Third is the nation’s 18th largest originating financial institution and the 14th largest receiving financial institution of ACH payments. The other financial institution members are ABN-AMRO, American Express Centurion Bank, Bank of America, BB&T, Capital One, Citigroup, Citizens Financial Group, Commerce Bank, Discover Bank, Fort Knox National Bank, Harris, N.A. (BMO Capital Markets), JPMorgan Chase, KeyBank, Mellon, National City, PNC Bank, Synovus Financial Corp., TCF National Bank, US Bank, Wachovia, Washington Mutual, Wells Fargo, and Zions Bancorporation. Fifth Third Bancorp is a diversified financial services company with $100.7 billion in assets.Details
The spin-off, IPO and acquisition industry trend continues as Milwaukee-based Marshall & Ilsley yesterday confirmed plans to split Marshall & Ilsley and Metavante into independent public companies. The Company also announced that private equity investor Warburg Pincus has agreed to invest $625 million to acquire an equity stake of 25% in Metavante. The investment values Metavante, a provider of banking and payments technologies to over 8,600 financial services firms and businesses worldwide, at $4.25 billion. Upon completion of the proposed transaction, Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock and will also receive one share of Metavante stock for every three shares of Marshall & Ilsley stock held. Metavante revenues have grown from $500 million to $1.5 billion in the past seven years. With $1.5 billion in revenue in 2006, Metavante Corporation now has approximately three times greater annual revenues than it did seven years ago. Metavante, which also owns the NYCE network, reported 2006 net income of $160.1 million, a 34% increase from 2005 and its profit margin of 10.6% increased from 9.3% in 2005. Metavante’s 2006 net income contribution represented 20% of M&I’s net income. Frank Martire will continue to serve as president and CEO and Mike Hayford will remain SVP/COO of Metavante. The transaction is expected to close in the fourth quarter.Details
Debit card provider Austin-based NetSpend has added an enhancement to its “Anytime Alerts” account information service with two-way mobile phone text messaging. NetSpend is now the first prepaid debit card company to make account balances, transaction history and help desk contact information available using the text-messaging Short Message Service (SMS) technology platform. NetSpend delivers more than 3 million text messages per month to cardholder phones via the SMS network and has processed hundreds of thousands of mobile-originated text messages sent by customers.Details
Paymetric XiBuy has been selected by Lockheed Martin to provide its enterprise procure-to-pay solution for purchasing card transactions. “XiBuy” is a certified SAP add-on product which embeds purchasing card transaction management and accounting directly in SAP, leveraging SAP user management, controls, security and business processes. Paymetric, Inc. provides software applications that manage and protect payment card transactions in complex payment environments.Details
Wireless provider Smart Communications has signed agreements with
SuperFerry Passenger Ships to develop passenger fare collection using
mobile phones. This service will use “Smart Money” electronic financial
services platform with the “Smart Money electronic cash card”. SMART
currently has agreements with Manila North Tollways Corp. for the
mobile reloading via “Smart Money of EC” of Tag accounts for motorists
that use the North Luzon Expressway. The “Smart Money Cash Card”
is a first in secure, re-loadable electronic cash cards that can be
linked to a mobile phone. With this card, the user can pay bills, transfer funds to another SMART Money card and write account checks. This card has also won awards for innovation.
CO-based SkyeTek and TX-based Isochron have enabled RFID-based cashless payment at vending machines located throughout the Hartsfield-Jackson Atlanta International Airport. In October, Isochron selected SkyeTek’s “M2” contactless payment module as the embedded RFID reader to enable secure, cashless payment at vending machines. Consumers can now use RFID-enabled credit and debit cards issued by financial institutions such as Bank of America, Citizens Bank, Charter One, Chase and Key Bank to make their purchases. Isochron is a provider of machine-to-machine (M2M) solutions for the vending industry. SkyeTek develops reader technology that enables the adoption of RFID as an embedded feature in existing products.Details
Netrust, of Yahoo Japan, has announced the availability of new payment
services for sellers on Yahoo’s shopping site. For no additional fees,
use Suica-Net Service if they already use a card payment service.
Store Payment Service and Pay-Easy Payment Service, however, require a
monthly fee of 2000 yen monthly for service and charge an additional 150
per transaction. These 3 new services can be managed and monitored in
Houston-based Cardtronics posted fourth quarter revenues of $74.8 million, a 7.2% increase over 4Q/05. Net income for the quarter was $2.4 million, compared to a net loss of $1.6 million for the same period in 2005. The fourth quarter included the recognition of $4.8 million in other income primarily related to settlement proceeds received from Winn-Dixie Stores, as part of Winn-Dixie’s successful emergence from bankruptcy. Average transacting ATMs for the fourth quarter totaled 25,417, which represents a decrease of 3.7% when compared to the same period in 2005. Cash withdrawal transactions increased 1.9% to 31.3 million during the quarter. Average cash withdrawal transactions per ATM per month during the fourth quarter of 2006 increased 5.9% to 411 from 4Q/05. This increase was primarily due to increased activity in the Company’s U.K. operations, which have higher average transaction volumes than the Company’s domestic operations. Average revenues per ATM per month in the fourth quarter increased 10.4% to $937 from the year ago quarter. For complete details on CardTronics’ latest performance, visit CardData ([www.carddata.com]).
Tarjeta Naranja and American Express have teamed to introduce the “Tarjeta Naranja American Express Card.” The new card will be issued in pesos and U.S. dollar denominations by Tarjeta Naranja. The card will be available as a standard card as well as a “Gold” card. In 1995, Banco Galicia bought an interest in Tarjeta Naranja also known as “The Orange Card.” Today Tarjeta Naranja is a clear leader in the country’s credit card market. There are over 2.8 million cards in use that generate over 35.5 million transactions a year at 100,000 establishments. American Express has now established nearly 110 card-issuing partnership arrangements in 120 markets; in Latin America, American Express has 28 alliances in 21 markets.Details
Analysts believe that the proposed acquisition of First Data by KKR for $29 billion is surprising in its size, but not in its logic. NY-based TowerGroup says the largest questions gather around the U.S. issuer-side processing business and FDC’s extensive global network of acquisitions, joint ventures and alliances. Only time will tell how the latter are dealt with, governed or sold. The former, once the company’s crown jewel and now shrinking, could provide more than one network, bank or other payment processor with a commanding position among tier two credit card issuers. Boston-based Celent says FDC has been a prime acquisition target for sometime, particularly for large private equity firms attracted to its low growth, yet steady annuity stream. Over the past two years, First Data has been in the unenviable position of releasing its most profitable operation, Western Union, in a spin-off, contending with slowing domestic transaction growth as large card issuers take their operations in house and navigating the global payments landscape without a CEO successor. Under the FDC/KKR deal, First Data has 50 days to shop for a better deal.Details
Ingenico has signed agreements with Svobodnaya Kassa for 17,000
electronic payment terminals allowing customers to reload cell phones
online. Ingenico’s presence in Russia over the past 11 years has seen a
growing population driving demand for this market, currently offering only 1
terminal for every 1,000 citizens. In contrast, Western countries, on
have 1 terminal for every 75 citizens. Svobodnaya Kassa processes
payments for 112 operators today and plans to implement this solution using
Ingenico “i7910 terminals” over the next year, into the beginning of 2008.
MasterCard has launched a trial of a new service that allows MasterCard cardholders to use their mobile phones to access information on ATM and merchant locations, driving directions, rewards, special offers, etc. The new “MasterCard Nearby” service was developed in partnership with the go2 network. It is an opt-in program, accessible from any compatible Web-enabled mobile phone. Consumers access the Web site and create a unique user profile. Consumers have the ability to search for ATMs and merchant locations in the U.S. as well as ATMs in several countries, including Australia, Canada, France, Germany, Italy and the U.K. Once consumers log into the WAP (mobile web) site at wap.mcnearby.com for the first time, they are permanently logged into the service. Another MasterCard-driven mobile initiative is point-of-sale payments by phone. Recently, MasterCard has undertaken several trials of “MasterCard PayPass”-enabled mobile phones.Details