Fiserv EFT reported total volume of 4.2 billion transactions in 2004, a 14% increase over 2003 volume. The ACCEL/Exchange Network also reported record volume for the year of 281 million transactions, a 26% increase over 2003. ATM transactions were up 33% for the year to more than 41 million, while POS transaction activity increased by 25% to 240 million. ACCEL/Exchange transactions are currently enabled at 73,000 ATMs and approximately 2.4 million POS devices nationwide. In addition to its own ACCEL/Exchange Network, Fiserv EFT also drives the Armed Forces Financial Network; FL-based Credit Union 24; the surcharge-free Allpoint Network; and EBT transactions.Details
American Express announced plans to spin-off its Financial Advisors unit to shareholders to focus on its core global payments and network business. The transaction is intended to be tax free to shareholders and expected to be completed in the third quarter of 2005, subject to certain conditions. After the spin-off, American Express will consist of the world’s largest charge and credit card business, and a network that processes more than $400 billion in transaction volume from several million merchants throughout the world. American Express Company (http://www.americanexpress.com), founded in 1850, is a global travel, financial and network services provider.Details
FL-based Global Axcess reports that its “ATMs-Made-Easy” program has expanded from 61 ATMs to 286 ATMs in its first nine months. ATMS-Made-Easy is a series of comprehensive, turnkey ATM program. Global Axcess Corp was founded in 2001 with a mission to emerge as one of the nation’s leading network-based electronic commerce and transaction processing companies. Through its wholly owned subsidiary, Nationwide Money Services, Inc., the Company provides turnkey ATM management solutions that include cash, project and account management services.Details
Barclays PLC has signed a GBP 45 million extension of its business process outsourcing contract with Siemens Business Services.
The contract also includes Barclaycard. Siemens has been running areas of Barclays’ retail banking back office since 2000 -including: account closures, transfer of funds and administrative processing for direct debit and standing order instructions. Back office operations have been transformed through improved operational efficiencies and the deployment of new technologies, using the Siemens global service delivery platform.
Siemens established an international business unit for BPO in October
2004 in the UK.
While some NFL teams only accept VISA for season tickets, the Washington Redskins have further limited card acceptance by requiring season-ticket holders to use its cobranded MasterCard if they want to use a credit card for payment. The team says that using the MBNA-issued “Redskins Extra Points MasterCard” will streamline the ticketing process, increase fan loyalty, and boost its profits. According to the Washington Post, the decision affects those buying tickets to FedEx Field’s 66,500 regular admission seats. Last August, MBNA rolled-out the “MBNA NFL Extra Points” credit card program, offering football fans a variety of NFL and NFL TEAM experiences such as dinner with a coach, golf with former players, sideline passes, game tickets, seat upgrades, etc. The card is available with the team logo of any of the 32 NFL clubs, or the NFL shield. Cardholders receive one point for each dollar charged. “Extra Points” redemptions include “VIP Draft Party Access” for 8,000 points, two game tickets for 35,000 points, dinner with a coach for 80,000 points, and two “Super Bowl” tickets for 200,000 points. MBNA is the official credit card issuer of the NFL and all 32 NFL teams. (CF Library 8/26/04)Details
The nation’s top ten bank credit card issuers increased their market share, based on managed card loans, by 70 basis points, to 84.5% during 2004. The top three VISA and MasterCard players now control nearly half of the U.S. market, while American Express held its 5.8% share, and Discover lost 20 basis points. MBNA lost the most share last year, falling from 12.6% in 2003 to 11.7% in 2004. The combined Bank of America/Fleet portfolio posted the largest gain in market share, from 8.0% to 8.5%. The Chase/Bank One portfolio posted the second highest gain of 40 basis points. Credit card outstandings at year-end 2004 came in at $687 billion, a 2.8% gain over 2003. The top ten issuers posted a 3.7% gain during 2004, according to CardData ([www.carddata.com]).
CREDIT CARD LEADER SCOREBOARD
(EOP MARKET SHARE/MANAGED CARD LOANS)
ISSUER EOY-03 EOY-04 CHNG
1. Chase 19.3% 19.7% +40bps
2. Citi* 17.6% 17.7% +10bps
3. MBNA 12.6% 11.7% -90bps
4. BofA 8.0% 8.5% +50bps
5. Cap One 6.9% 7.1% +20bps
6. Disc** 7.2% 7.0% -20bps
7. AmEx*** 5.8% 5.8% NC
8. HSBC**** 2.8% 3.0% +20bps
9. Prov 2.5% 2.7% +20bps
10.Wells 1.1% 1.3% +20bps
TOTAL SHARE 83.8% 84.5% +70bps
TOTAL LOANS $560.4 $581.1 + 3.7%
INDUSTRY $668.0 $687.0 + 2.8%
* Citi includes approx. $2 billion in non-U.S. card loans.
** Discover’s fourth quarter ended 11/30/04.
*** AmEx does not include charge card outstandings or foreign card loans.
**** HSBC is estimated; no Q4 report issued to-date.
Source: CardData (www.carddata.com)
Three Spartanics executives who have been responsible for managing major segments of the company in recent years have assumed ownership the Company. Tom Kleeman, who most recently had been CTO, assumes new duties as CEO. Bill Gillen, the former VP of Manufacturing, will now take on duties of COO. Tom O’Hara, the former Comptroller/VP Finance, will now be the President. IL-based Spartanics manufactures technology for inspection, die cutting, counting/batching, and special material handling systems for worldwide printers and card manufacturers.Details
The Conseil General De La Gironde in the Bordeaux region of France has chosen ERG Transit Systems to provide and install their smart card fare collection system. The contract, which has a value of EUR 2.4 million, will be completed in mid-2006. The new system will allow the use of paper tickets, magnetic stripe tickets and smart cards, greatly increasing passenger convenience. It will be installed on 350 buses serving the interurban area. This is the fourth French contract awarded to ERG for smart card fare collection equipment within the past twelve months. In addition to the Conseil General De La Gironde, recent tenders awarded include Department of Bas-Rhin Strasbourg, Clermont-Ferrand and La Roche/Yon.Details
UT-based Q Comm International has signed a contract with The Big Apple Food Stores to install the “q xpress 200” POS terminal in all 90 Big Apple convenience store and gas stations throughout Maine and New Hampshire. Big Apple Food Stores is owned by C.N. Brown Company headquartered in South Paris, Maine. Big Apple Food Stores are convenience stores with gas stations. Q Comm International is a prepaid transaction processor that electronically distributes prepaid products from service providers to the point of sale. Q Comm offers proprietary prepaid transaction processing platforms, support of various point-of-sale (POS) terminals, product management, merchandising, customer support and engineering.Details
Self-checkout and other self-service systems generated almost $128 billion in sales last year, up about 80% over the year before.
According to a recent study by IHL Consulting Group, Europe’s self-service industry is expected to grow by 35% in 2005, and
self-checkout systems are expected to account for a key portion of
that. IHL says one way that European retailers can help ensure the success of their self-checkout systems is by making sure they accept all forms of payment reliably and consistently, including both cash and credit. This trend closely follows the rise of the self-checkout market in the U.S., which began in 2000. According to The Food Marketing Institute, approximately 50% of American supermarket retailers had deployed self-checkout systems by 2004.
Providian’s recovery has paid off handsomely for its top executives. This week a committee of the Providian Board awarded a 2004 performance bonus of $2.2 million to Joseph Saunders, President and CEO. Other top executive officers received awards ranging from $525,000 to $575,000. Totally, $4.9 million was awarded for 2004. Providian, which nearly collapsed in 2001, posted profits of $419 million last year, more than double its 2003 profit. Saunders was hired as Providian president and CEO in November 2001, succeeding Shailesh Mehta. (CF Library 11/26/01; 1/21/05)Details
AirPlus International beat out Citibank and American Express for the “Best Expense Management Process” award. The award was presented at the annual “Business Travel World 2005 Awards” in London. AirPlus won the award for its ‘commercial and technical solutions’ that allow
companies to book low-cost carriers in the same way that they book
full-service carriers, while enjoying the same superior data quality they receive from full-service carriers.