PSS FastLane

Symbol Technologies and NCR Corporation are teaming to combine the Symbol “Portable Shopping System” with the NCR “FastLane” self-checkout system. The combined solution gives shoppers the option of scanning and bagging their selections in the aisles as they shop and maintaining a running total of their purchases with the Symbol “PSS” handheld scanner, then paying for their purchases at an NCR “FastLane” unit. The device communicates with the store server’s price lookup file via the Symbol “Spectrum24” wireless local area network. A shopper engages a PSS device by unlocking it from a kiosk dispenser with a shopper loyalty card. Alternatively, consumers may choose to use NCR FastLane at the end of their shopping trip to scan, bag and pay for all of their items. No matter which option they choose, consumers are provided a secure, convenient and fun alternative to traditional checkout. Symbol and NCR expect the combined solutions to be piloted soon by a major food retailer.

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3PEA PayPad

Dallas-based Paymentech and Torrance, CA-based 3Pea Technologies have teamed to offer a $50 PIN-debit POS terminal for in-home use. The device seamlessly integrates through a USB connection on the home computer, and includes a standard smart card reader. The “PayPad” is compliant with EFT guidelines surrounding security for real-time debit for Internet purchases. Paymentech and 3Pea said they will also offer significant discounts per unit based on volume to Internet merchants and other purchasers. 3Pea says some industry analysts believe consumers will not pay for PINPad terminals in their homes, however the company has found a significant number of Internet consumers will pay for a reasonably priced piece of equipment to help protect their privacy and identity online. In December, the Gartner Group released a survey of the top 25 Internet merchants with regards as to how they are currently paid, and how they would prefer to be paid. While 3% of Internet transactions are currently being paid by PIN-less debit with a preferred rate of 5%, only 1% of transactions are being paid by PIN-based debit with a preferred rate of 18%. Paymentech and 3Pea believes these statistics indicate a market that is not being addressed with existing Internet payment solutions.

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Household Promotes Greer

Household International has promoted Valerie Greer, who joined HH in 1988, to SVP of business development for the Household Retail Services business. Greer is responsible for developing new private label credit card relationships with retailers and manufacturers. She was previously assistant vice president of business development at Household Retail Services where she was instrumental in establishing new relationships with retailers Menards and QVC, as well as manufacturers Compaq, Toshiba, and IBM.

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SMART TICKETING

Sydney-based ERG Limited’s Integrated Transit Solutions subsidiary has
signed contracts with the New South Wales Government to supply, install and
operate an integrated smart card based ticketing system for the entire
Greater Sydney commuter transport network. The total value of the contract
is approximately $320 million but could be as high as $370 million. The
agreement covers all SRA commuter rail, State Transit and private operator
buses, State Transit and private operator ferries, as well as Sydney’s
light rail and monorail. The transport network handles approximately 630
million passenger journeys each year with revenue collections of
approximately $800 million. It is expected that the first commuter smart
card travel will be available on inner city services in late 2004, with
current plans to convert most of Greater Sydney’s commuter transport
services to smart card ticketing during 2005. At that time it is expected
there will be 2 million smart cards on issue. The system is expected to be
fully operational in 2006.

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BartercardUSA Acquired

Los Angeles-based Bentley Communications has acquired BartercardUSA, a firm that holds the American licensing rights for Bartercard International, a company which facilitated more than $1.2 billion worth of trade last year. BartercardUSA holds the American licensing rights for Bartercard International, which is the world’s largest trade and barter company with franchises in 14 countries. Currently, the parent company is facilitating more than 1.2 billion dollars worth of trade each year and over 50 million dollars in earnings in 2002. BartercardUSA was launched in April 2002 and currently has 18 offices and more than 2,000 member businesses with projected growth to over 20,000 by ’05.

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Target 4Q/02

Fourth quarter profits from Target’s credit card operations increased nearly 42% to $150 million, compared to one year ago. Target, now the nation’s 18th largest issuer of bank credit cards, reported Thursday that outstandings for its “smart VISA” program have topped $3.7 billion, a 140% increase over 4Q/01. Over the same period, Target’s “Guest Card” store credit card program outstandings declined from $1,063,000,000 to $827,000,000, a 22% drop. Target also announced yesterday it will disclose more details on its card program going forward. For 4Q/02, which ended 2/1/03, Target’s net charge-off rate for its VISA program was 7.3%, compared to 6.9% in the prior quarter. Net write-offs for its store credit card program were 8.4% for 4Q/02, compared to 7.9% in 3Q/02. The 90-day+ delinquency rate for “smart VISA” was 3.1% and for its “Guest Card” program the figure was 5.1%. For complete details on Target’s bank credit card performance visit CardData ([www.carddata.com][1]).

TARGET SMART VISA SNAPSHOT
4Q/01 1Q/02 2Q/02 3Q/02 4Q/02
Outstandings $1.6b $2.0b $2.5b $3.2b $3.8b
Cards-in-Force 3.0m 6.0m 7.1m 8.0m 8.9m
Source: CardData (www.carddata.com)

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

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WLAN SPECS

The WLAN Smart Card Consortium was launched this week to define
specifications for world-wide access to wireless LAN networks with smart
card security. A total of 19 companies and institutions have joined the
consortium as Founding Members, including major infrastructure providers,
card and chip manufacturers, start-ups, and academic institutions. The
participating firms include VISA, Gemplus, Oberthur, SchlumbergerSema, and
Infineon Technologies. The first challenge of the WLAN smart card
consortium is in specifying the use of the card in order to facilitate
smart card adoption. Liaison contacts have been established for 3GPP, IEEE,
the Wi-Fi Alliance, and smart card organizations such as the Java Card Forum.

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CVS & TeleCheck

Denver-based First Data has signed an agreement to provide the TeleCheck database service for check verification to CVS/pharmacy. CVS will utilize the industry-leading database to authorize customer’s paper checks at the point-of-sale (POS). TeleCheck has the nation’s largest and most comprehensive database of check writer information. The database contains information from TeleCheck’s over 340,000 subscriber locations. Under terms of the agreement, TeleCheck will provide CVS with database updates daily, allowing the merchant to access the most accurate, up-to-date information available.

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Free AT&T Cards

As part of a recent settlement of a lawsuit filed in San Francisco over payphone fee disclosure, AT&T will begin distributing $50,000 worth pre-paid calling cards to the city’s low-income and homeless persons, tourist bureaus, and foster children. The pay phone surcharge is a fee approved by the Federal Communications Commission that long distance carriers must reimburse pay phone owners for pay phones calls where no coin deposit is made. The price of the pay phone surcharge is also a crucial factor in consumers’ choice of which calling card to buy.

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Euronet 4Q

Euronet Worldwide reported this week that annual consolidated revenues of $71.0 million for 2002, an increase of 16.5% over 2001 revenues of $61.0 million. Consolidated revenue for the fourth quarter was $18.6 million, an increase of 10.4% over fourth quarter 2001 revenues of $16.8 million, according the The RAM Report ([www.ramreport.com][1]). The Processing Services Segment reported annual revenues for 2002 of $53.9 million, an increase of 17.4% over 2001 revenues of $45.9 million. Fourth quarter 2002 revenues were $15.1 million, up 10.5% over fourth quarter 2001 revenues of $13.6 million, and up 9.6% over third quarter revenues of $13.8 million. As of December 31st, Euronet owned and/or operated a total of 3,005 ATMs compared to 2,951 ATMs in the prior quarter. Quarterly transactions on the network reached 22.7 million in the fourth quarter 2002, a 45% increase over 15.6 million in the fourth quarter 2001. Fourth quarter transactions improved by 400,000 compared to the prior quarter. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the UK, Greece and Egypt.

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

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RDM & FDC

First Data has “Class A” certified Ontario-based RDM’s imaging family of
peripherals. The RDM imagers will be integrated with the First Data
“TeleCheck ECA service. The RDM suite of MICR imaging peripherals provide
multiple MICR read capability, significantly reducing replacement errors
and have one of the highest available single pass read rates. With RDM
imaging peripherals, merchants using Hypercom, VeriFone and Lipman payment
terminals can easily accept and image electronic checks on their existing
terminal platform. The RDM imaging peripherals will be sold through all
First Data channels.

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