PayPal’s Payment Volume Rises 41%

eBay reported that PayPal had 105.0 million total accounts at the end of the first quarter, a 47% increase from one-year ago. Total payment volume rose 41% to a record $8.8 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 29.2 million as of March 31st, its highest level to-date. During the first quarter, PayPal handled 149.2 million payments, a 7% increase over the prior quarter and up 35% from 1Q/05. PayPal’s 1Q/06 transaction revenue rate was 3.74%, up ten basis points from one-year ago. The processing expense rate for the first quarter was 1.04%, compared to 1.15% for 1Q/05. PayPal’s transaction loss rate came in at 29 basis points, up one basis point from one-year ago. For complete details on eBay/PayPal’s first quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/05 $6.2 billion 71.6 million
2Q/05 $6.5 billion 78.9 million
3Q/05 $6.7 billion 86.6 million
4Q/05:$8.1 billion 96.2 million
1Q/06:$8.8 billion 105.0 million
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

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MC Sues Over the the VISA/FIFA Deal

MasterCard has filed a complaint seeking an injunction against the Federation Internationale de Football Association (FIFA), the governing body of the “FIFA World Cup” to prevent FIFA from moving forward with an agreement with VISA International to sponsor the 2010 and 2014 “FIFA World Cups.” MasterCard’s complaint states that after a period of negotiation in which FIFA assured MasterCard that it was not going to enter into an agreement with a third party, it proceeded in doing so. FIFA did this despite the fact that it had already provided MasterCard with a written contract – including all terms – which MasterCard signed and returned to FIFA, which then advised MasterCard that a deal with VISA was completed. VISA announced earlier this month that it inked a partnership with FIFA. (CF Library 4/10/06)

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ACA to Examine the FTC’s FDCPA Report

The Association of Credit and Collection Professionals says it intends to analyze the FTC’s “2006 Annual Report” to Congress on the “Fair Debt Collection Practices Act” ACA was instrumental in developing the FDCPA nearly 30 years ago, because its members support strong consumer protection and continues to work with policymakers to ensure that consumers’ rights and collectors’ responsibilities are clearly defined in an ethical and highly regulated collection industry that serves credit grantors and consumers alike.

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Equifax’s Q1 Earnings Rise 7%

Equifax reported first quarter earnings of $63 million, a 7% increase from the first quarter of 2005. Revenue of $374 million was up 9%. North America Information Services revenue was $208 million, up 8% compared to 1Q/05. Marketing Services revenue was $66 million, up 12% compared to the first quarter of 2005. Personal Solutions increased revenue was $31 million, up 3% compared to 1Q/05. For complete details on Equifax’s first quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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DATACARD SOLUTION

The Datacard Group has introduced a new solution that simplifies the
branch issuance of smart cards. The “Datacard EMV” based branch issuance
solution includes the software, hardware and professional services
needed to implement EMV compliant smart card programs that maximize
speed and security and minimize data theft, errors and delays at branch
bank locations. The “Datacard EMV” based branch issuance solution can
be used for instant issuance at one or many branch locations and also
supports a combination of centralized and decentralized branch issuance.
Datacard Group provides secure ID and card personalization solutions.

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MetaBank Approves FastMax Rewards MC

Global Links Card Services has received approval from MetaBank of Sioux Falls, SD for issuing its private branded “FastMax Rewards MasterCard. The card will be available in the second quarter 2006 through GLCS agents and co-branded marketing partners. Debit MasterCard cardholders can use their cards at more than 23 million acceptance locations in 210 countries around the world, including more than 1 million ATMs and other locations where cash can be obtained.

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Cap One’s U.S. Card Profits Rise 32%

Capital One’s first quarter U.S. credit card profits increased 32% year-over-year and more than doubled sequentially thanks to improvement in credit trends following the fall bankruptcy surge. Purchase volume in the U.S. was up 15% to $18 billion while U.S. managed card outstandings increased slightly from the year-ago quarter. The number of U.S. card accounts dropped by about 400,000 during the quarter to 37.3 million compared to 37.6 million in the prior quarter and 38.2 million one-year ago. U.S. card net income was $602.8 million, compared to $237.0 million in the prior quarter and $458.2 million for 1Q/05. U.S. managed card outstandings were $47.1 billion for 1Q/06 compared to $46.6 billion one-year ago and $49.5 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.31% for the first quarter, compared to 3.44% for 4Q/05 and 3.66% for the first quarter of 2005. The net charge-off rate for U.S. credit cards was 2.93% for the first quarter, compared to 5.70% for the fourth quarter and 4.73% one-year ago. For complete details on Capital One’s first quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
1Q/05: $458.2 million
2Q/05: $432.4 million
3Q/05: $481.8 million
4Q/05: $237.0 million
1Q/06: $602.8 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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RDM Introduces RDM SYNERGY Terminal

Ontario-based RDM Corporation announced the availability of additional “RDM SYNERGY” connectivity options. “RDM SYNERGY” is an all-in-one POS payment solution. In addition to the currently available
standard Modem data connection, “RDM SYNERGY” units can now be ordered
with Ethernet (10 BaseT) connectivity as an option either in place of
the existing Modem or in addition to the Modem data connection. “RDM
SYNERGY” can be used for Electronic Check Conversion and Check 21
transactions, as well as credit, debit, EBT and loyalty cards and
features the “EC6000i/EC7000i” Series that includes a proprietary
Progressive MICR Method, bi-directional document drive, OCR MICR assist,
franking acknowledgment and a thermal printer. RDM develops specialized
software and hardware products for electronic payment processing.

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Schram to Become Deluxe’s New CEO

NCR’s SVP of Retail Solutions, Lee Schram will become Deluxe Corporation’s new CEO on May 1st. Schram has 22 years of experience with NCR, having held a variety of positions of increasing responsibility, including general manager of its Payment and Imaging Division, and his most recent role as leader of the Retail Solutions DivisionSchram was an industry technology representative called to testify before the House Finance Sub- Committee in support of the pending Check 21 legislation. In his most recent position, Schram completed several acquisitions that extended the core retail store automation business into exciting growth opportunities in new self- service segments and Radio Frequency Identification. He has a Master of Business Administration degree from the University of Dayton.

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GPN Credit Services Opens its Card Business

Global Payments Credit Services has registered with the Russian State
Register of Credit Bureaus to provide credit bureau services in the
Russian Federation and also announced agreements with VimpelCom, a
telecommunications firm operating in Russia under the brand name Beeline
and INVESTSBERBANK, a private Russian bank. GPCS currently has contracts
with nearly 40 Russian financial institutions. Global Payments Credit
Services LLC is a joint venture between Global Payments Europe, a.s.
and Home Credit & Finance Bank of Russia.

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First Data’s Profit Stays Flat in Q1

First Data reported this morning that first quarter net income was flat year-on-year even though total revenues increased 10% to more than $2.7 billion. Western Union generated revenue of $1.1 billion, a 16% increase from 1Q/05 and an operating profit of $337 million, up 13% year-over-year. Commercial Services reported Q1 revenue of $934 million, up 9%, and an operating profit of $214 million. Financial Institution Services revenue was $445 million, down 5% and operating profit was $84 million, down 4%. First Data International generated revenue of $264 million, up 24% and operating profit was $29 million, up 35%. Integrated Payment Systems revenue was down 8% to $30.3 million and operating profit was down 59% to $4.4 million. As of March 31st, accounts on file were 425.7 million domestic and 46.8 million international. Of the card 472.5 million accounts on file, 93.7 million were bank card accounts, 264.4 million were retail accounts and 114.4 million were debit accounts. For complete details on FDC’s first quarter performance, visit CardData ([www.carddata.com][1]).

FDC NET INCOME
1Q/05: $374.5 million
2Q/05: $391.9 million
3Q/05: $421.5 million
4Q/05: $397.9 million
1Q/06: $373.7 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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