Mobile Payment Forum Board Named

MA-based The Mobile Payment Forum announced its incoming Board of Directors for the 2006-2008 term of office. The new Board is composed of Martin Harrison, First Data International; Simon Pugh, MasterCard; Christopher J. Bierbaum, Sprint Nextel; Bob Adamany, VeriSign; Stephanie Ericksen, VISA International; and Oliver Kelly, Vodafone. The Mobile Payment Forum brings together leading organizations from the mobile and financial industries to create a foundation for standardized, secure and authenticated mobile payments. Simon Pugh is the president.

Details

Alternative Payments Market to Explode

A new report predicts that the alternative payments market will grow at a CAGR of 71%, reaching $400 billion by 2011. The study says three emerging payment alternatives to the traditional magnetic stripe credit/debit card payments regime will significantly alter the payment landscape. The PELORUS Group research says contactless credit and debit card payments, mobile payments and biometrically authenticated payments will lead the way. Drivers for the alternative payment market include: consumer demand for speed and convenience; merchant needs for customer loyalty; need for security; need for more real-time information on balances; and the large number of unbanked and underbanked consumers in the U.S. The PELORUS Group estimates that aggregate revenue from contactless, m-Payments, and biometric payments at U.S. merchants will grow over 15-fold by 2011 from a 2006 level of $27 billion. Contactless payments will reap the bulk of the growth but the potential for the other payments through 2011 and the opportunities developing for payments innovators as a result of that growth should not be underestimated.

Details

Hypercom TPI Software Deal is Done

Hypercom has closed on the acquisition of the technology and assets of TPI Software. Based in Redmond WA, TPI is a provider of innovative payment technologies for processing credit card, debit/ATM card, EBT, Gift card, electronic check services and electronic signature/receipt & check image capture and retrieval services. TPI Software developed “TPI SmartPayments,” an electronic payment solution that supports the major U.S. payment processors as well as client solutions that work on any device, at anytime and anyplace. The acquisition broadens Hypercom’s customer base and enables the generation of new revenue streams by addressing the technology requirements of and rising market interest in a converged payment infrastructure that places electronic payment functionality on PC-based cash registers.

Details

AT&T Universal Card Stays Alive

AT&T and Citigroup have signed a long-term extension for the “AT&T Universal Card” programs. The two firms inked a 10-year co-branding and joint marketing agreement in 1998 after Citi purchased AT&T Universal Card Services for $3.5 billion. At the time, the deal added $15 billion in card receivables and 13.6 million accounts to Citi’s portfolio. The card was first launched in April 1990 by AT&T and immediately set records. The high profile no-fee card attracted eight million cardholders in its first eight months. However, the company struggled with profitability as it attracted mostly non-revolvers. The “AT&T Universal Platinum Card” and the “AT&T Universal Rewards Card” issued by Citibank today offers cardholders calling benefits, loyalty programs and cell phone insurance. (CF Library 4/6/98)

Details

Citigroup Acquires a 20% Stake in Akbank

Citigroup has successfully completed the acquisition of
a 20% stake in Akbank. Under the terms of the agreement Citigroup paid
$3.1 billion for the share. Citigroup’s nominee, Sir Winfried Bischoff,
has been appointed to Akbank’s Board of Directors. Bischoff is the
Chairman of Citigroup Europe and a Member of the Citigroup Management
and Operating Committees. Mr. Ege Çaglar, Sabanci Holding’s nominee,
has been appointed to the Board of Directors of Citigroup’s Turkish
banking subsidiary, Citibank A.S. Akbank currently has 675 branches and
1,617 ATMs and has assets of $39.6 billion, loans of $19.6 billion and a
deposit base of $25.0 billion.

Details