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May 26, 2006

Buy or Sell MasterCard?

Rich Smith of Motley Fool weighs in with his analysis of MasterCard's IPO and prospects. Our favorite quote from this article: "unless, of course, you're still using a checkbook -- which is, like, so 20th century."

The Brave New World of Online Account Opening

Terence Roche of Cornerstone Advisors writes for their weekly Gonzo Banker newsletter about online account opening by banks and identifies several issues of strategy and delivery that need to be addressed.

Visa's Coghlan: Innovation Is Key To Success

Visa USA CEO John Philip Coghlan gave a keynote speech earlier this week at the Card Forum Conference. The text of his prepared remarks (PDF) is available online. He discussed three industry imperatives from his point of view: preserving trust, listening to the marketplace and innovating.

Charles Schwab Selects VeriSign Identity Protection

VeriSign held its annual analyst day yesterday and the presentation slides (PDF) and webcast are available online. [Editor's note: VeriSign's analyst day presentation slides are in an "HD" wide screen format - first time I've seen that format used in this kind of setting!]

At the meeting, VeriSign announced that Charles Schwab has selected VeriSign to deploy both its Identity Protection (VIP) Fraud Detection and Authentication Services to secure client login and transaction information. Additionally, Charles Schwab plans to become an anchor tenant of the VIP Fraud Intelligence and Shared Authentication Network. The VIP Shared Authentication Network is already supported by PayPal, eBay and Yahoo! READ MORE »

MasterCard Stages Solid IPO

The Wall St. Journal's Heard on the Street column this morning looks at MasterCard's IPO yesterday - suggesting that "investors will need to gird themselves for some bumps in its financial performance for the rest of 2006" and pointing out that the company "already has warned that it may lose money this year." MasterCard yesterday made a 424B4 filing with the SEC containing the final prospectus for the IPO.

Barclaycard's Credit Losses Could Exceed £1.5bn

Fiona Walsh reports for The Guardian that credit losses at Barclaycard, Britain's biggest credit card company, could exceed £1.5bn this year, up more than 40% from a record £1.1bn last year.

TSYS Holds Analyst Day

Payment processor TSYS held its annual analyst day yesterday in New York City. The presentation slides (PDF) and audio from the presentations are available online. Included are comprehensive sections on TSYS's role in the merchant acquiring business and its international businesses. TSYS also announced yesterday that it had signed Wachovia for its re-entry into the credit card business.

May 25, 2006

MasterCard Shares Leap In Trading Debut

Joe Bel Bruno, AP Business Writer, reports on MasterCard's debut day on the New York Stock Exchange where its shares rose $7, or almost 18 percent, to close at $46.

MPD: Gen X and Y - David Evans Keynote

Last week, David Evans of Market Platform Dynamics gave a keynote at Card Forum titled "Gen X and Y: Path to the Future or Distinction Without a Difference" (PDF). Based upon his proprietary research, he appears skeptical about the whether they'll want to use their mobile phones to make purchases and suggests concerns about security may keep them from trying contactless devices. He also says that with respect to issuers being challenged by receivables growth, "young people today revolve much less than young people a decade ago."

More About Early Warning Services, LLC

Glenbrook partner Carol Coye Benson spoke today with Mary Anne Keegan, SVP Marketing & Communications of the newly formed Early Warning Services, LLC, to learn more about the company announced earlier this week.


TSYS, Wachovia Reach Agreement for Payment Services

TSYS and Wachovia have announced a long term agreement for TSYS to provide core-processing and other related services in support of Wachovia's re-entry into the consumer credit-card line of business.


Yahoo! Selects PayPal As Exclusive Online Wallet Provider

As part of a bigger strategic relationship between eBay and Yahoo! announced this morning, Yahoo! has announced that is has selected PayPal to become the "exclusive third-party provider of its online wallet -- allowing customers to pay for Yahoo! services from bank accounts, credit cards or balances associated with their PayPal accounts."


Barclays Launches New Anti-Fraud Initiative

Barclays has announced it is launching a "new online anti-fraud initiative and becoming the first bank to offer free anti-virus software to its customers. Customers will also be offered an innovative text message service notifying them of new payees on their online account, helping to cut occurrences of fraud attacks."


New PayPal Plus MasterCard Issued By GE Consumer Finance

Daniel Wolfe writes for the American Banker (subscription required) about PayPal's new PayPal Plus MasterCard issued by GE Consumer Finance.


The Home Equity Effect On Credit Card Issuers

Robin Sidel writes for the Wall St. Journal about the difficulties credit card issuers are experiencing as consumers are continuing to pay off bigger portions of their outstanding credit card loans.

May 24, 2006

MasterCard IPO Priced At $39/Share

MasterCard Incorporated has announced that its "initial public offering of 61,520,912 shares of its Class A common stock has been priced at $39.00 per share. The shares will begin trading tomorrow on the New York Stock Exchange under the trading symbol "MA." The company will retain $650 million of the proceeds of the sale, with the remainder used to redeem shares held by current shareholders."


TransUnion Launches Turnkey Triggers

TransUnion has announced Turnkey Triggers, "a new service that assists marketers in reaching prospective customers within hours of learning about changes to their credit profile that may predict newfound responsiveness to a targeted firm offer."


Why Japan and South Korea Lead the World in Contactless Payments

Japan and South Korea lead the world in adopting contactless payment solutions. Both countries have implemented nationwide services on a commercial scale. According to Senior ABI Research analyst Andy Bae, "Small payment transactions are a major goal for Japanese and South Korean credit card companies. To spot new opportunities and increase revenue, mobile operators and card issuers must continually assess their positions in the value chain."


Viewpointe Bank Owners Reach Check 21 Milestone

Viewpointe has announced that all of its owner banks (Bank of America, JP Morgan Chase & Co., SunTrust, U.S. Bancorp, and Wells Fargo) are actively in production with ImageShare and Pointe2Pointe services. These five financial institutions clear approximately 2.5 billion checks amongst themselves.


Consumer Debt Trend Over Past Two Years

Experian Consumer Direct has announced the results of a nationwide study on consumer debt that shows consumers have increased their debt by more than 12 percent over the past two years. Minimum monthly payment obligations also increased by 10 percent during the same time period.


May 23, 2006

MasterCard Set for Long-Awaited IPO

AP Business Writer Joe Bel Bruno reports on MasterCard's planned initial public offering scheduled for this Thursday.

Early Warning Services Formed By Five US Banks

Five of the nation’s leading retail banks, Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, and Wells Fargo together with First Data have announced they have agreed to form Early Warning Services, LLC, to bring together the fraud prevention expertise of the owners with the intellectual property and assets of Primary Payment Systems (PPS) and IDLogix. PPS and IDLogix are subsidiaries of First Data specializing in fraud prevention technologies.


MasterCard Updates S-1 Registration Statement

Earlier today, MasterCard filed with the SEC Amendment No. 8 to its S-1 Registration Statement.

BitPass Inks Deal With Broadcast Giant Entercom

BitPass has announced an agreement with Entercom, one of the five largest radio broadcasting companies in the US, to enable subscription access to online broadcast content.


Debitman Announces Series B Financing, Patent

Debitman has announced the closing of an $8.7 Million Series B Financing from investors including HSBC Retail Services, a U.S. business unit of HSBC -North America, Cardinal Venture Capital and Selby Venture Partners. The company also announced it has received a notice of allowance from the U.S. Patent and Trademark Office approving the company's patent for a system that enables the use of interoperable merchant-branded consumer debit cards.


Americans Want Congress to Do More to Protect Them Online

The Cyber Security Industry Alliance (CSIA) has released the results of its semi-annual survey dedicated to measuring the American public's confidence in the security of the nation's digital infrastructure.


Auriemma Announces Bankruptcy Loss Outlook

Payment experts at Auriemma Consulting Group (ACG) suggest that by mid-year, bankruptcies should settle back to 2004 levels, thus significantly lower than the 2005 experience. So much for the good news. The firm is also convinced that overall bad debt levels are unlikely to decline simply because of stricter bankruptcy tests.


Allegiant and Loyalty Lab Announce Alliance

The Allegiant Group has announced a strategic alliance with Loyalty Lab for Allegiant to provide program development, management and marketing expertise to Loyalty Lab clients and Loyalty Lab to provide its CRM platform to Allegiant's loyalty clients.



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