UT-based ProPay, which received a “Partnership Award” from the Direct Selling Association, says its transaction volume is up 50% in the four months since being recognized with the award. Projections for year end 2003 show total processing growth at 77 percent over 2002. ProPay’s award comes at a time when the domestic market for direct selling is approximately $30 billion, but many of the Americans who have established successful enterprises in the industry lack a cost-effective and secure means of handling their customers’ credit cards. ProPay provides payment services to individuals and corporations including merchant account capabilities, stored value cards, commission payment systems and other “payment intranet” solutions.Details
The sale of LG Card, which has a negative net worth of 3.24 trillion won, has no takers. Among LG Card’s eight creditor banks, no one filed a letter of intent. As a result the deadline has been extended till the end of this week. The government and the creditor banks are reportedly considering some significant changes in the deal. Earlier this week, Woori Bank, Kookmin Bank and the National Agricultural Cooperative Federation agreed to lend LG Card a total of 300 billion won to cover operating losses until the sale.Details
CA-based PayStar/GLOBALCash has inked a contract to market its prepaid ATM debit card to the credit-challenged subscribers of a major ISP. GLOBALCash’s product will be marketed to the ISP subscribers through banner ads, popups and marketing emails, immediately providing the viewer the opportunity to purchase the GLOBALCash prepaid ATM debit card online or by phone. PayStar Corporation ([www.paystar.com]) provides its distributors and clients with a suite of prepaid, stored value products. PayStar Corporation ([www.paystar.com]) provides its distributors and clients with a suite of prepaid, stored value products. PayStar’s GLOBALCash, Inc. ([www.globalcash.us]) distributes prepaid ATM debit and MasterCard cards that can be used just like regular credit cards.
ICBA Bancard’s TCM Bank has purchased the $3.1 million consumer credit card portfolio of MO-based Midwest Independent Bank and its agent contracts. ICBA Bancard has provided more than 2,000 community banks with equitableaccess to payment system products and services. In addition to ATM, creditand debit cards, banks have access to merchant services, ATM driving, riskmanagement services, Internet banking and marketing services. Midwest Independent Bank is a bankers’ bank owned and directed byindependent financial institutions. MIB provides superior banking servicesand products at lower costs and with more personal service than othercorrespondent banks.Details
Standard Chartered Bank and ICICI Bank have introduced the first miniature credit cards in India, according to this week’s issue of CardFlash International (www.cardflashinternational.com). The roll-out of the “VISA Mini Card” follows recent introductions of the cards in Thailand, Singapore, Hong Kong, and Taiwan. The miniature VISA was first launched in the USA in October 2002. To-date there have been approximately 10 million “VISA Mini Cards” issued. Standard Chartered Bank says it is aiming the card at its 100,000 “Gen Y” cardholders. It will initially target about 30,000 young cardholders in Delhi, Mumbai, Kolkata, Chennai and Ahemdabad. The issuer has more than 1.4 million total credit cardholders. ICICI Bank is issuing the miniature VISA card in conjunction with its “Sterling VISA Gold” card program.Details
APAK Group, a UK-based systems integrator and implementation specialist of banking systems, has signed a partnership deal with Fincentric Corporation. Together, the two companies will offer
UK financial institutions a value proposition based on Fincentric’s software products and APAK’s extensive IT experience in the region. Also, Fincentric and APAK will work closely together in the localization and customization, implementation, and support of delivering Fincentric’s “Wealthview” software solution to specifically meet the unique business needs of UK financial institutions.
October’s credit card delinquency rate, among card backed-securities, declined for the third consecutive month. Charge-offs, among card ABS, also declined for a second straight month and are only up slightly over year-ago levels. The October delinquency rate was 5.16% compared to 5.47% one-year ago. The October charge-off rate was 6.53% compared to 6.38% one-year ago. The figures are based data gathered by Moody’s Investors Service. Yield (the income, primarily finance charges and fees, collected during the month as an annualized percent of the total loans) fell to 17.14% from last year’s rate of 18.15%. The yield has fallen on a year-over-year basis for 27 months, and hit a record low of 16.50% in April 2003. Moody’s says most of the drop in yield is attributable to the low interest rate environment as well as issuers’ aggressive balance transfer and teaser rate offers. In October, cardholders paid back their debts at a record-setting monthly rate of 16.09%, above the rate of 15.29% in October 2002. The last time the payment rate rose above 16% was in August 2000. Since then, the payment rate has been remarkably stable, even throughout the most recent economic downturn, and has generally remained within the historically high range of 14% – 16%.
Credit Card Asset-Backed Bonds
MONTH CHARGE-OFFS DELINQUENCIES
Oct02: 6.38% 5.47%
Apr03: 7.00% 5.25%
May03: 7.05% 5.20%
Jun03: 6.87% 5.12%
Jul03: 6.87% 5.19%
Aug03: 6.88% 5.18%
Sep03: 6.63% 5.17%
Oct03: 6.53% 5.16%
Source: Moody’s Investors Service
FL-based prepaid card specialist, WildCard Systems, says it will expand its infrastructure and call center after receiving a $2.5 million line of credit from GE Technology Finance. WildCard Systems is the global solutions leader in turnkey host-based prepaid cards and custom stored-value products. These products serve a wide range of vertical markets in both consumer and commercial applications and are made available to end users through banks and commercial clients in the U.S. and abroad. GE Technology Finance, a unit of GE Structured Finance (GESF), serves the equipment and working capital financing needs of emerging growth technology companies backed by venture capitalists and other professional investors.Details
Air Canada and Amex Bank of Canada finally signed their agreements for a co-branded charge card and “Membership Rewards.” The finalization of the deal came after receiving approval on December 10th from the court overseeing Air Canada’s restructuring proceedings. Under terms of the deal, Aeroplan will become a partner in American Express’ “Membership Rewards” points programs and AmEx will issue co-branded consumer and corporate charge cards early next year. In return, AmEX will provide Air Canada with an $80 million cash advance, repaid as “Aeroplan Miles” are purchased. In addition, AmEx is committed to provide on-going marketing support throughout the term of the contract.Details
Retail sales on credit and debit cards in Canada were up 4.6%, or CN$507 million, during the first two weeks of December. Moneris Solutions says its data show that card spending in stationery stores is up 12%, while grocery store spending is up 10% and card spending in furniture stores is up 9%. The travel and entertainment sector is up 8%, or $161 million. Other retail segments: book stores +8%; travel and entertainment +8%; and, music stores +7%. Restaurants across Canada experienced an approximate 2.5% increase in dollar volume spending. A recent survey of over 2,100 Canadians conducted for Moneris by Ipsos-Reid revealed that four in ten Canadians say they are “last-minute” shoppers and almost three quarters of the survey’s respondents selected debit or credit card as the payment form they will use most often when shopping this season.Details
The Interac Association Board of Directors have agreed to a trademark license for Acxsys Corporation to use the “INTERAC” brand in association with CertaPay services. “CertaPay Email Money Transfer Service” will now be known as the “INTERAC Email Money Transfer Service.” Now that CertaPay has been amalgamated with Acxsys, ownership includes BMO Bank of Montreal, CIBC, RBC Royal Bank, Scotiabank and TD Canada Trust, as well as the National Bank of Canada, La Federation des caisses Desjardins du Quebec, and Credit Union Central of Canada.Details
Houston-based Prepaid Works reports it has signed more than 100 merchant partners in the last four months for its “Prepaid Works Advantage Program” which utilize TeleCheck “Eclipse” payment terminals. The Prepaid Works Advantage Program provides merchants the capability tosell prepaid wireless, long distance, and mobile entertainment products suchas ring tones through the TeleCheck Eclipse(R) Payment Terminal. The merchantshave access to perpetual inventory on demand.Details