The French Works Council gave its blessing on the sale of Egg’s credit card business in France. Banque Accord agreed to pay Egg $179 million for 66,000 customers and net assets of approximately $262 million. According the CardFlash International, Egg also has a pending offer from ING Direct France for its savings and online brokerage business in France, which includes approximately 45,000 accounts. In July, Prudential, majority owner of Egg, announced it was exiting France after racking up nearly $184 million in losses. The partial disposal with Banque Accord will result in the re-deployment of approximately 100 of Egg France’s 450 workforce. Banque Accord has 3.5 million clients in Europe including more than 2.0 million in France, and employs more than 700 people in France, Warsaw, and Lisbon. Banque Accord has a call center in Tours. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.7 million versus an operating loss of $30.3 million for its French “la Carte Egg VISA.”Details
eSecurity Japan, a new spin off of the parent company Open Source Japan, has teamed with iBIZ Software for the sales and implementations of “iBIZ CommerSafe” and “iBIZ PhishSafe” product lines in Japan. eSecurity Japan will offer online authentications and anti-phishing solutions to banks that provide online services, card issuers and acquirers, payment processors, and Internet merchants.
iBIZ Software’s CommerSafe Product Suite, has been compliant with each of the 3-D Secure programs from their very launch, including Verified by VISA, MasterCard SecureCode, and JCB J/Secure.
Credito Emiliano has selected NCR’s Teradata data warehouse to support its retail sales and management initiatives. Credem launched the “Change Project” to develop and deploy a customer relationship management. Credem (Banking Group Credito Emiliano – Credem) has a presence in 16 regions in Italy, with 429 branches, 38 Business Centres, 27 Credempoints, 512 authorized financial salespersons, and a network of over 220 personal finance managers.Details
Consolidation in the bank credit card industry has given the top issuers control of more than 60% of the U.S. market. At the end of the third quarter, the top five issuers held $430.9 billion in U.S. card loans in a market of approximately $680 billion. Over the past five years, the market share of the top five issuers hovered around 53%. In 2000, the top five held $295 billion in card loans in a market of $569 billion. The recent merger of Chase and Bank One created the nation’s largest issuer with $131.5 billion in credit card outstandings. The Bank of America and FleetBoston merger also added more share to the top five issuers. At the end of the third quarter the top five U.S. issuers are: Chase, Citibank, MBNA, Bank of America, and Discover. For complete details on the third quarter performance of U.S. issuers, visit CardData ([www.carddata.com]).
TOP 5 – 3Q/04
1. Chase $131.5 billion
2. Citi $117.2 billion*
3. MBNA $ 79.7 billion
4. BofA $ 55.4 billion
5. Discover $ 47.1 billion**
TOTAL $430.9 billion
*includes some non-U.S. accounts within North America
** as of August 31st
Top 5 Historical – Third Quarter
2000: $295.0 billion
2001: $330.6 billion
2002: $352.7 billion
2003: $362.7 billion
2004: $430.9 billion
SOURCE: CardData (www.carddata.com)
Xbox Live, Microsoft, Maybank, and MasterCard have teamed to introduce a prepaid card to offer Singaporeans an alternative payment method to register for the Xbox Live service and to purchase premium content. The “Xbox Live Modus MasterCard by Maybank,” a “MasterCard Electronic Card,” is the first prepaid card to be launched in the country. The card can be used at all merchant establishments worldwide that are equipped with EDC terminals and display the “MasterCard Electronic” brand mark. The card carries a $19.90 fee and cardholders can limit the spending limit from as low as $500, up to $3,000 per
day. The new card will be available at 120 authorized Xbox retail outlets and Maybank branches next month.
eBay reported that gross payment volume for its PayPal business increased 52% year-on-year during the third quarter, and 7% sequentially. The payment service also signed up 6.3 million net new accounts and the number of active accounts posted its highest level to-date. During the third quarter, PayPal handled $4.64 billion of gross payment volume, compared to $4.35 billion in the prior quarter, and $3.04 billion for 3Q/03. At the end of the third quarter, PayPal had 56.7 million accounts, compared to 50.4 million in 2Q/04, and compared to 35.2 million one-year ago. PayPal produced $172.0 million in transaction fees for 3Q/04, a 57% jump over the year-ago quarter. During the third quarter, PayPal handled 83.4 million payments, a 7% increase over the prior quarter, and up 45% from 3Q/03. PayPal captured 56% of eBay’s total $8.3 billion in total sales volume during the quarter. PayPal’s transaction revenue rate was 3.59%, compared to 3.49% one-year ago. The processing expenses rate for the third quarter was 1.30%, compared to 1.25% for 3Q/03. PayPal’s transaction loss rate came in at 22 basis points, the same as one-year ago. For complete details on eBay/PayPal’s third quarter performance, visit CardData ([www.carddata.com])
3Q/03 $3.0 billion 35.2 million
4Q/03 $3.7 billion 40.3 million
1Q/04 $4.3 billion 45.6 million
2Q/04 $4.3 billion 50.4 million
3Q/04 $4.6 billion 56.7 million
SOURCE: CardData (www.carddata.com)
MBNA has named Thomas Murdough, chairman and CEO of the Step2 Company, to MBNA Corporation’s Board of Directors. Mr. Murdough will serve on the Audit and Compensation Committees. In 1991, Murdough launched Step2 hoping to go “a step beyond” in developing and manufacturing products for the family and home. He is a graduate of the University of Virginia and is the founder of The Little Tikes Company, which was sold to Rubbermaid in 1984. MBNA is the largest independent credit card lender in the world and is recognized as a leader in affinity marketing. It provides lending, deposit, and credit insurance products and services.Details
Fiserv reported that processing and services revenues were $866.3 million, a 23% increase over 3Q/03. Operating income for processing and services was $160.7 million, an 18% increase over the year ago quarter. Net income rose 15% to $92.4 million. During the quarter, Fiserv completed two acquisitions: Results International Systems, a provider of outsourced solutions for the property-and-casualty insurance industry and Pharmacy Fulfillment, a provider of mail-order prescription services. Fiserv recently announced it has purchased CheckAGAIN. For complete details on Fiserv’s third quarter performance, visit CardData ([www.carddata.com]).
VISA USA is teaming up with Walt Disney Pictures to launch a major marketing campaign for the upcoming “National Treasure” movie, beginning November 1st. Visa’s marketing program will include a multi-million dollar advertising campaign, online interactive elements, and various events associated with the movie’s theme of treasure. Among the elements contained in the campaign are the “Year of Treasure” sweepstakes, which automatically enters cardholders who use their Visa card in November and December for an opportunity to win the amount of their Visa purchases made on their winning card from January 1st to December 31, 2004. 25 winners will be randomly selected at the conclusion of the promotion. Visa will also feature “Reveal the Treasure”, and online instant win game that uses eDecoder game pieces to reveal prizes including AAA vacations valued at $4,000 each and Visa AAA prepaid gift cards ranging from $100 to $500. To access the game, cardholders can visit www.Visa.com/treasure. eDecoder game pieces can be obtained from Visa’s Member financial institutions as well as AAA branches nationwide, select college campuses, movie theatres, and grass roots events. Visa is the world’s leading payment brand and largest payment system. Cardholders in over 150 countries have over 1 billion Visa branded cards, which are accepted at millions of locations all over the world.Details
JetBlue Airways has inked its first “TrueBlue” program partner. The carrier has joined the American Express “Membership Rewards” program. Beginning December 8th, AmEx cardholders enrolled in the “Membership Rewards” program will be able to transfer points directly into JetBlue’s loyalty program. JetBlue and AmEx are also launching a special sweepstakes to give 50 enrollees a chance to win the “Ultimate Reward,” a Bahamas flyaway vacation for two, with a live performance by recording artist Seal. JetBlue serves 29 destinations in 11 states, Puerto Rico, the Dominican Republic, and the Bahamas. AmEx has 23 “Membership Rewards” airline partners, 13 of which allow enrollees to transfer points directly into individual airline loyalty programs for travel.Details