Bank of America posted 1500% growth during the first half of this year for its “SafeSend” remittance service which enables customers to send money to Mexico. Currently, BofA maintains relationships with 57% of the Hispanic households in their territory, which accounts for more than $15 million in deposits with BofA. BofA will further address Hispanic customer demand by increasing mass marketing, launching and entry-level account called Nuevo Futuro, maintaining a Spanish-language Web site, and hiring more Spanish-speaking associates.Details
Consumer purchase volume on credit cards increased 16% during June, as balances grew 14%, and credit lines edged up 13% per annum. During June, Australians charged A$12.4 billion in purchases on credit cards compared to A$10.7 billion one-year ago. At the end of June, consumers owed A$27.7 billion on credit cards versus $24.3 billion for June 2003. The ratio of credit card balances to card credit limits edged up a bit during June compared to one-year ago, at 37.7%, according to data released by the Reserve Bank of Australia. One-year ago, consumers owed A$24.3 billion with total credit lines of A$65.0 billion. Card credit limits reached A$73.5 billion at the end of June.Details
Atlanta-based CardSystems Solutions has named Paul Oswald, formerly with Nova Information Systems, Card Service International, and Unified Merchant Services, as SVP/Sales. Oswald has more than 15 years of experience in the payment processing industry, and his appointment will help strengthen CardSystems’ leading position in the ISO market.Details
MBNA’s international credit card portfolio has grown approximately 17% over the past twelve months to $15.9 billion, slowing down as the U.S. dollar strengthens and the Canadian market weakens. Account acquisition also slowed, as MBNA added 550,000 new international accounts during the second quarter, compared with 720,000 new accounts for same period one-year ago. MBNA’s total managed foreign loans were $22.0 billion for 2Q/04, the same as the prior quarter but up 24% compared to 2Q/03’s $17.7 billion. Currency fluctuations decreased second quarter foreign loans by $350 million while first quarter foreign loans were boosted by $380 million. In Europe, total managed loans grew 28% year-on-year reaching $18.6 billion. Approximately 420,000 new accounts were added during the second quarter in Europe. In Canada, total managed loans grew 6% to reach $3.4 billion. Approximately 140,000 new accounts were added during the second quarter in Canada. MBNA signed several new foreign affinity agreements during the second quarter including Arsenal Football Club, (U. K.), Reader?s Digest Canada, and Halfords (U. K.). Among foreign affinity agreements renewing during 2Q/04 were PGA (U. K.), Bradford & Bingley (U. K.), and, Golf Digest (Canada). Globally, MBNA signed more than 50 new affinity agreements and renewed more than 350 during the second quarter. For complete details on MBNA’s international growth visit CardData (www.carddata.com).Details
Barclays has inked an agreement to acquire Delaware-based Juniper Financial and its US$1.4 billion credit card portfolio from Canada’s CIBC for US$293 million in cash.
The deal represents a premium of 15.2%. The news marks the entrance of
Barclaycard into the U.S. credit card market. Since its inception in
2000 by former First USA executives, Juniper has grown from US$160 million in credit card receivables for EOY2000 to US$1.3 billion EOY2003. Between 2001 and 2002 the issuer doubled its size, becoming the fastest growing issuer during the period. Juniper, with 700,000 accounts, also has co-branded relationships with AirTran Airways, Best Western, Caesars Entertainment, Frontier Airlines, Gulf Petroleum, Midwest Airlines and Sinclair Oil. Barclaycard Chief Executive, Gary Hoffman, will become Chairman of Juniper, and Juniper will become part of the Barclaycard International business. CIBC acquired a 51% interest in Juniper Financial in 2001 and subsequently increased its ownership to 98%. The remaining 2% is owned by Juniper senior management. Barclays is
purchasing 100% of Juniper Financial. For details on Juniper’s past
performance visit CardData (www.carddata.com).
Barclays has inked an agreement to acquire Juniper Financial and its $1.4 billion credit card portfolio from CIBC for $293 million in cash. The deal represents a premium of 15.2%. The news marks the entrance of Barclaycard into the U.S. credit card market. Since its inception in 2000 by former First USA executives, Juniper has grown from $160 million in credit card receivables for EOY2000 to $1.3 billion EOY2003. Between 2001 and 2002 the issuer doubled its size, becoming the fastest growing issuer during the period. Juniper, with 700,000 accounts, also has co-branded relationships with AirTran Airways, Best Western, Caesars Entertainment, Frontier Airlines, Gulf Petroleum, Midwest Airlines and Sinclair Oil. Barclaycard Chief Executive, Gary Hoffman, will become Chairman of Juniper, and Juniper will become part of the Barclaycard International business. CIBC acquired a 51% interest in Juniper Financial in 2001 and subsequently increased its ownership to 98%. The remaining 2% is owned by Juniper senior management. Barclays is purchasing 100% of Juniper Financial. For details on Juniper’s past performance visit CardData ([www.carddata.com]).
JUNIPER HISTORICAL OUTSTANDINGS
2000: $160 million
2001: $425 million
2002: $950 million
2003: $1.3 billion
2004: $1.4 billion
Source: CardData (www.carddata.com).
Milwaukee-based Metavante is looking to purchase NJ-based Response Data Corporation for $34 million in cash. According to filings with regulators the acquisition would provide Metavante with a new line of credit card payment technology. RDC’s largest clients are Chase and BofA. The deal is the fourth acquisition by Metavante this year. In July, the firm purchased NYCE from First Data for $610 million in cash. In June, Metavante completed its acquisition of The Kirchman Corporation, a provider of automation software and compliance services to the banking industry. In May, Metavante signed a definitive agreement to acquire Advanced Financial Solutions of Oklahoma City, which provides check-imaging technology for over 7,000 financial institutions in the USA and 25 other countries. (CF Library 5/7/04; 6/1/04; 6/14/04).Details
American Express Incentive Services has made an equity investment into Atlanta-based LoyaltyPoint and signed a five-year exclusive strategic marketing partnership with its Schoolpop subsidiary. Under the agreement, the two companies will launch exclusive new prepaid card products that offer access to national retailers. The cards will be themed to represent consumers’ typical spending categories such as clothing, home furnishings, electronics and groceries. The companies are also teaming up to create a unique series of new scrip cards that will be usable at multiple establishments and that will be introduced into the school and nonprofit markets under Schoolpop’s “Scrip & Earn” product line. Schools and nonprofit organizations purchase “Scrip & Earn” prepaid cards from Schoolpop and then resell the prepaid cards to their supporters for fundraising. LoyaltyPoint says current exclusive AEIS products have driven significant revenue for the company, comprising 73% of total company sales and 76% of prepaid stored-value card sales for the first half of this year.Details
ActivCard has named John Gordon and Richard Kashnow to its Board of Directors. Gordon brings extensive experiences in the security arena and Kashnow is a 33-year veteran of large and small business. Both men will bring the experience and expertise necessary to develop strategies for both government and enterprise markets and strengthen ActivCard’s dedication to the highest standards of corporate governance.Details
The National Consumers League has partnered with the “STAR” network to launch public service advertisements about phising. People can learn what phising is and how it works by visiting the new Web site , which has been launched by NCL and STAR.Details
With the exception of Household International, all top ten bank credit card issuers posted year-over-year declines in delinquency ratios at mid-year. As a group, the average rate for 30+day delinquency plunged from 6.14% in 2Q/03 to 5.03% for the just ended quarter. As expected, issuers with significant exposure in the sub-prime segment reported the largest improvements. Providian’s delinquency declined 328 basis points, as Metris dropped 170 basis points, and Capital One decreased 147 basis points. Household, which only reports 60+ day delinquency, reported a mere 2 basis points increase over one-year ago levels. Compared to the first quarter, average 30+ day delinquency dropped 44 basis points for 2Q/04. For the fourth quarter of 2003, the average rate was 5.97%, compared to 6.07% in 3Q/03. For complete detail on delinquency for U.S. issuers please visit CardData ([www.cardddata.com]).
TOP TEN ISSUERS DELINQUENCY (managed basis)
DAYS 2Q/04 1Q/04 2Q/03 Y/Y CHNG
1. Citigroup: 90 1.61% 1.83% 1.79% -18 bps
2. MBNA: 30 4.10% 4.27% 4.36% -26 bps
3. Bank One: 30 3.37% 3.75% 3.95% -58 bps
4. BofA: 30 3.86% 3.75% 3.99% -13 bps
5. Chase: 30 4.27% 4.43% 4.40% -13 bps
6. Discover: 30 4.88% 5.80% 6.21% -133 bps
7. Cap One: 30 3.95% 3.99% 5.42% -147 bps
8. Household: 60 4.21% 4.35% 4.19% + 2 bps
9. Providian: 30 6.44% 7.36% 9.72% -328 bps
10. Metris/DM: 30 9.40% 10.40% 11.10% -170 bps
AVERAGE (30day): 5.03% 5.47% 6.14% -111 bps
Note: excludes American Express
Source: CardData ( www.cardddata.com).