PayPal VP of Core Technologies Matthew Mengerink writes for LinuxInsider about PayPal's use of open source software - saying that it's fundamental to dealing with the "two competing demands" of PayPal's business model: "security and innovation."
An article titled "Giving a Gift to Merchants and Banks" By M. P. Dunleavey in today's New York Times discusses "hidden fees" associated with gift cards. While retailers have largely dropped such fees - in response to, among other things, a number of states adopting laws prohibiting them and action by the FTC against a couple of major merchants - banks haven't. Dunleavey writes "While it’s good to know there has been progress on the retail front, bank-issued gift cards are widely known as the worst fee offenders."
India's Economic Times reports on the Reserve Bank of India's plans to come out with regulations covering mobile banking. The RBI's draft Financial Sector Technology Vision document is available online. "The large scale spread of mobile telephony has opened up new vistas for banking in the form of mobile banking and the potential in this new sphere is enormous; adequate steps to ensure safety and security in a mobile based computing / communicating environment have to, however, be made."
PayPal has announced the official grand opening of its new technology center in Austin, Texas. PayPal Data Services, Inc., a wholly-owned subsidiary of PayPal, Inc., is employing technology and engineering professionals who are helping to build PayPal's global payment platform. PayPal plans to hire hundreds of talented local professionals in the next three years, and is now accepting resumes for technical positions.
Revolution Money's chairman Ted Leonsis and CEO Jason Hogg spoke this week at the Web 2.0 Summit being held in San Francisco. Barron's Eric Savitz captured some of the discussion on his Tech Trader Daily blog. "Leonsis is saying they are looking for way to disrupt the fees in the credit card business, and figure out how to drive some of them back to the consumer." Others writing about the discussion include Information Week's Mitch Wagner. "We want to become to social networks what PayPal is to eBay."
Mobilians International has announced its entry into the U.S. - bringing with it what it describes as "a compelling new online payment method, already successful in Asia, that allows a consumer to buy items online and use the mobile phone and mobile account for quick, easy transactions with no credit cards required." The company expects to commence active payment transactions with online merchants in the first quarter of 2008.
HSBC Finance Corporation’s card and retail services business and Pathmark Stores have announced "an agreement to offer a multi-purpose rewards and payment card for supermarket customers. The new Pathmark Advantage Payment Card enhances the current Pathmark Advantage Club card by providing an easy and superior one-swipe payment process that also generates loyalty rewards." The card is linked to the consumer's checking account and functions as a PIN-debit card for purchases. The cards will also be accepted "at more than 200,000 merchant locations in the U.S. that participate in the Tempo Payment Network."
The Center for Financial Services Innovation has announced "the initiation of the first comprehensive, authoritative national segmentation study of the underbanked market. Citi, eFunds (now part of Fidelity National Information Services), H&R Block and MasterCard are together sponsoring the research. All are members of CFSI’s Innovators Roundtable, which brings together groundbreaking, nationally significant financial services companies to collaborate toward accelerating underbanked practice across the industry."
The GSM Association (GSMA), a global trade association representing over 700 GSM mobile phone operators, and Western Union have announced an agreement "to facilitate the development of cross-border mobile money transfer services."
Mercator Advisory Group has published a new report titled "Account-Level Processing: Taking a Swipe at Payment and Loyalty Convergence". "The report focuses on Account-Level Processing (ALP), alternately known as Account-Level Management (ALM), which has the potential to revolutionize the payments landscape by optimizing the value that inherently exists within the data created by card-based electronic payments, thereby fundamentally changing the way consumers and merchants transact, as well as the way the general card payment services industry functions."
eBay reported third quarter 2007 financial results earlier today - saying that "PayPal posted another excellent quarter of Total Payment Volume (TPV) and revenue growth, primarily driven by its Merchant Services business, with acceleration in both."
PayPal net revenues totaled $470 million in Q3-07, a growth rate of 35% over the prior year. PayPal's total payment volume (TPV) was $12.22 billion in Q3-07, up 34% from Q3-06. PayPal Merchant Services contributed $5.38 billion globally
to the $12.22 billion in global TPV in Q3-07, representing a year-over-year increase of 61% .
PayPal had 164 million total accounts at the end of Q3-07, a 34% increase from the 122.5 million reported at the end of Q3-06 and almost 11 million from the prior quarter. Of that number of total accounts, 37.5 million were active in the quarter, up 21% from Q3-06.
PayPal reported a transaction revenue rate of 3.67% for the quarter, a transaction expense rate of 1.15% and a transaction loss rate of 0.26%.
Bryan Johnson blogs on the Braintree Payment Solutions blogs about PCI compliance and the potential cost of a data security breach involving payment card information.
MasterCard has announced the launch of World MasterCard for Business - calling it "a premium payment card that provides high-spending small businesses with more spending power, superior customer service and enhanced rewards." Chase Card Services is the first credit card issuer to introduce MasterCard World for Business cards.
Chase Card Services has announced what it is calling "the first-ever MasterCard World for Business credit cards" with the introduction of the new Continental Airlines World MasterCard for Business and the GM Business Card World MasterCard. The new GM card will include blink, Chase's contactless payment feature.
In much of the work that we do, we're fascinated how often the notion of market segmentation emerges as a dominant theme. Dave Birch blogs about that idea, Clayton Christensen and more in his post about how a "one size, fits all" approach to thinking about card payments "might be rather old-fashioned."
JP Morgan Chase has announced its financial results for 3Q07 . For its card services unit, it reported average outstandings up 5%, charge volume growth of 3%, revenue up 6% and net income up 11%. Chase reported a net charge-off rate of 3.64% and also said that it expected credit card losses to return to normalized levels in the 4.00% - 4.50% range by the end of 2008.
Members of the Canadian payments industry - Interac Association, MasterCard Canada Inc., Visa Canada and many of their respective card issuers, payment processors and merchants -- have announced "the beginning of Canada's migration to chip-enabled debit and credit cards, Automated Banking Machines (ABMs) and merchant terminals starting with a trial in Kitchener-Waterloo, Ontario."
BB&T has announced it is the first customer of a new partnership between ClairMail and mFoundry for mobile banking and mobile payment services. BB&T said that its "three-phase rollout of the new service is set to begin next month and is expected to be completed in the first quarter when a full menu of mobile banking options will be available to BB&T clients. The services include two-way mobile messaging, mobile Web access and mobile banking applications."
First Data Corp. has announced the launch of "a new merchant acquiring business called POSNET to serve merchants of all sizes in Canada."
Financial institutions connected to the SVPCO Image Payments Network have begun forming new correspondent clearing relationships that are spurring the growth of image exchange among regional institutions and further reducing check processing costs.
Bank of America has announced the re-launch of the BankAmericard. According to the bank, "the original BankAmericard credit card, the first nationally accepted bank credit card, changed the landscape of financial opportunity and convenience for consumers. Today's BankAmericard Rewards Visa card builds on that heritage of innovation, offering one of the industry's richest and most flexible rewards programs with no annual fee."
MasterCard Worldwide has announced a new PCI Merchant Education Program - calling it "an initiative offered to acquiring bank customers that provides practical assistance in educating merchants and encouraging broader adoption of the Payment Card Industry Data Security Standard (PCI DSS)."
Firethorn Holdings and Verizon Wireless have announced "a new strategic relationship that will provide Verizon Wireless customers with the ability to easily interact with their financial institutions using Firethorn's mobile financial services application."