ProCash 2350xe Gets its First US Deployment

PA-based Susquehanna Bancshares has installed the first Wincor Nixdorf “ProCash 2350xe” ATMs in the USA. The ProCash 2350xe is designed for drive-up ATM banking and is a full-function, freestanding frontload system. Susquehanna was able to install the units very quickly and efficiently and can now provide customers with a more ergonomic and contemporary machine.

Details

APTRA gets Supported by S2 Systems’ OpeN/2

S2 Systems announced “OpeN/2” support for NCR’s “APTRA” software and cash acceptor. Businesses using OpeN/2 for their ATM networks can now easily migrate deposit transactions from the branch to a lower-overhead, faster-processing channel. In as little as 60 seconds, customers will be able to see their deposit registered and cleared. Customers will see significant efficiency benefits by using NCR’s cash acceptor technology.

Details

I.C.E. Revenues Up Fourteen Fold in Q2

Oxnard, CA-based International Card Establishment reported net revenues of $3.5 million for the second quarter. In the second quarter of 2003, the Company posted net revenues of about $250,000. The net loss for 2Q/04 was $615,000 compared to $130,000 one-year ago. I.C.E. is in the process of closing the acquisition of Neos Merchant Solutions. The Company believes the new business will lift revenue to $22 million for the year. I.C.E. is aiming to become a direct credit card processor and expects to make more acquisitions in its bankcard unit. I.C.E. is projecting it will reach $50 million in pro forma revenues and attain profitability in 2005. For complete details on I.C.E.’s latest results visit CardData ([www.carddata.com][1]).

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

Details

Top Issuers Grow 5% with 83% Aggregate Market Share

The top ten bank credit card issuers in the USA posted organic growth in managed outstandings of 4.7% between the mid-point of 2003 and this year. The top ten issuers now control about 83% of the U.S. bank credit card market compared to 78% one-year ago. Excluding its acquisition of the FleetBoston portfolio, Bank of America led major issuers with a 17% annual gain. If the acquisition is factored in, then BofA’s annual growth rate is 69%, and the average for the top ten would be 7.8%. Capital One continues to grow about three times the rate of its peers, posting a 15% jump in credit card loans since 2Q/03. Discover posted the sharpest decline, dropping more than 8% since mid-year 2003, and Providian slipped nearly 3% as it continues to clean up its portfolio. For complete details on second quarter results for U.S. issuers, visit CardData ([www.carddata.com][1]).

Top Ten U.S. Issuers – Outstandings
($ billions)
RANK/ISSUER 2Q/04 2Q/03 CHNG
1. Citigroup $115.0 $106.8 +7.7%
2. MBNA 83.5 80.8 +3.3%
3. Bank One 75.6 73.0 +3.6%
4. BofA 52.0 30.8 +16.9% (+69%)*
5. Chase 51.3 51.0 +0.6%
6. Discover 46.8 50.9 -8.1%
7. Cap One 45.2 39.3 +15.0%
8. AmEx 38.3 36.0 +6.4%
9. Household 20.2 19.0 +6.3%
10. Providian 17.3 17.8 -2.8%
TOTAL(inc Fleet) 545.2 505.4 +7.8%
TOTAL (exc Fleet)529.2 505.4 +4.7%

* BofA changed 69% if Fleet is included
Source: CardData (www.carddata.com)

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

Details

PayPal Heads Into France

PayPal headed into France this week with a fully localized Web site. The launch of PayPal France follows the recent introduction of the service on eBay sites in Austria, Belgium, Germany, the Netherlands and Switzerland. The migration now enables payments in five currencies: the U.S. dollar, the Canadian dollar, the yen, the euro and the British pound. PayPal France is provided by PayPal (Europe) Limited, a UK regulated entity authorized by the Financial Services Authority as an electronic money institution. During the second quarter of this year, PayPal handled $4.35 billion of gross payment volume, a 53% increase over 2Q/03. PayPal produced $161.5 million in transaction fees for 2Q/04, a 59% jump over the year-ago quarter, but only a 0.2% increase over the first quarter of 2004. At the end of the second quarter, PayPal had 50.4 million accounts, compared to 31.1 million one year ago. During the second quarter, PayPal handled 77.2 million payments, a 2% decline over the prior quarter, but up 45% from 2Q/03. For complete details on eBay/PayPal’s Second quarter performance visit CardData ([www.carddata.com][1])

PAYPAL HISTORICAL
# of Transactions
2Q/03: 53.7 million
3Q/03: 57.4 million
4Q/03: 68.2 million
1Q/04: 79.2 million
2Q/04: 77.7 million
Source: CardData (www.carddata.com)

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

Details

TowerGroup Hires a Global Sales Executive

TowerGroup has hired Clay Cocalis, formerly with Factiva, as VP of global sales and field marketing. Cocalis will bring a 20-year record of strong leadership and success in driving global information services industry sales. In his new position at TowerGroup, Cocalis will oversee a growing team of domestic and international sales personnel and will work across both advisory research and consulting.

Details

PowerPay to use OTI’s Saturn 5000 Readers

On Track Innovations has signed a VAR agreement with Smart System Technologies to deploy OTI’s “Saturn 5000” readers at sports venues and retailers in the USA as part of SST’s “PowerPay” solution. SST has targeted the “PowerPay” solution to merchants and sports teams. Consumers will enjoy a short, three second transaction that is easy, secure, cashless and contactless and can link PowerPay free-of-charge to any of their existing credit cards or checking accounts.

Details

Wells Fargo Q2 Outstandings Up 12%; Volume Up 16%

Wells Fargo Card Services and Wells Fargo Financial Bank reported second quarter outstandings of $7,810,690,817, an 11.6% increase over the same period one-year ago. Second quarter card volume rose 57% for Wells Fargo Financial Bank, and about 13% for Wells Fargo Card Services. Combined, Wells Fargo Card Services and Wells Fargo Financial Bank reported 2Q/04 volume of $4,517,907,863 according to CardData ([www.carddata.com][1]). At the end of the second quarter, Wells Fargo Financial Bank had 500,931 active accounts, a 10.8% increase over the prior year. Wells Fargo Card Services had 3,390,848 active accounts, a 6.0% increase over the prior year. In its earnings reports, Wells noted it now has 680,000 business debit card outstanding, an increase of 34% over 2Q/03. For complete details on Wells Fargo Card Services and Wells Fargo Financial Bank second quarter results visit CardData ([www.carddata.com][2]).

Issuer 2Q/04 2Q/03 CHANGE
WF Card Services (IA) $6.253b $5.783b +8.1%
WF Financial Bank (SD) $1.558b $1.215b +28.2%
Total $7.811b $6.998b +11.6%
Source: CardData (www.carddata.com)

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

Details

Card Fraud Squad Saves U.K. Issuers $118 Million

The U.K.’s card fraud-busting police squad has received GBP 3 million in new funding to continue its operations. Over the past two years, the “Dedicated Cheque and Plastic Crime Unit” has made 171 arrests and recovered more than 36,000 stolen cards in Britain. The work of the DCPCU has resulted in 52 convictions to-date. The Association for Payment Clearing Services says the fraud fighters have produced estimated fraud savings of GBP 65 million from stolen cards and card details. The unit was set up two years ago to target the organized gangs who are responsible for the lion’s share of the UK’s card fraud losses, amounting to GBP 402 million in 2003. The unit comprises officers seconded from the City of London and Metropolitan Police forces, supplemented by banking intelligence and administrative support supplied by the banking industry.

Details

More British Players Eye U.S. Credit Card Market

More British players are eyeing the U.S. bank credit card market looking to ramp up competition in a very mature and saturated business. This week, Virgin Money, which markets co-branded MasterCards in the U.K. and Australia, is exploring a possible entry into the U.S. market. Also this week, Barclays announced the acquisition of Delaware-based Juniper Financial and its 700,000 account, $1.4 billion credit card portfolio from Canada’s CIBC. In February, Britain’s second-largest bank, The Royal Bank of Scotland Group, expanded its presence in the USA with the purchase of the entire credit card business of CT-based People’s Bank, consisting of 1.1 million accounts and $2.3 billion in outstandings. RBS also owns RI-based Citizens Bank, which has about 800,000 debit cards, a small business card portfolio, and 1,700 ATMs. RBS also announced this month it is buying Atlanta-based merchant processor and acquirer, Lynk Systems, which handles $18 billion in charge volume and 400 million transactions annually. In February of this year, Barclays and Lloyds TSB were rumored to be making a run at Providian’s credit card business. Virgin Money Group launched its first co-branded MasterCard with MBNA Europe in January 2002. In May 2003, Virgin Money teamed with Wespac Banking to launch a co-branded MasterCard in Australia. Both launches were made with great fanfare. Last year Virgin predicted its card “will lead to a major ‘shape up’ of the Australian market.” Indeed Virgin attracted more than 50,000 applications in its first week in Australia. In the UK, Virgin signed up about 300,000 cardholders in its first year. (CFI Library 5/14/03; 5/21/03; 2/3/04; 2/9/04; 8/9/04 and CF Library 8/19/04)

Details

GTEL and GI Team to Create a Miami Switch

Miami-based GlobeTel Communications and Grupo Ingedigit have teamed to create a Miami switch for transaction processing services. GTEL will expand its capabilities to profit from the electronic processing of financial transactions with this venture. When completed, the Miami switch is expected to be certified to process MasterCard, Visa, Cirrus and other independent ATM transaction networks.

Details