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November 16, 2007

Challenges Ahead for Mobile Banking

On November 8, 2007, Aite Group hosted a round-table discussion on mobile banking, which considered aspects of the service such as potential for acceptance and possible security threats. Held at Bayard's in lower Manhattan, the event, titled "Mobile Banking 2.0: Time for the Perfect Storm?" attracted an international audience of more than 80 guests interested in the direction mobile banking will take in the United States, having failed to catch on several years ago.


Interview with Jack Selby re: PayPal, FreedomPay

Dave Birch from Consult Hyperion interviews Jack Selby about the early days of PayPal where Jack was a senior vice president and his current involvement with FreedomPay. This is a GREAT interview - highly recommended.

A Bank in Every Pocket?

The Economist looks at mobile banking in an opinion piece in its November 15, 2007 issue - mostly discussing the regulatory aspects of banking on a mobile phone. "The regulatory approach being taken in the Philippines provides a good model for other countries. Rather than trying to work out the best rules in advance, which could hamper innovation, the regulator is working closely with the banks and operators behind the country's two m-banking schemes."

It's [likely to be] the Economy, Stupid

Business Week's cover story by Michael Mandel this week is titled "The Consumer Crunch" and reviews the issues facing the economy as a result of tightened consumer credit. "What comes next could be scary—the largest pullback in consumer spending in decades, perhaps as much as $200 billion to $300 billion, or 2%-3% of personal income. Reduced access to credit will combine with falling real estate values to hit poor and rich alike."

Discover Financial Services Investor Presentation

Earlier this week, Discover Financial Services CEO David Nelms presented at the Merrill Lynch Banking & Financial Services Investor Conference. A replay and the presentation slides icon_PDF_small.gif are available online.

Debit Card Purchasers Penalized for PIN Use

In a report titled "Debit-Card Purchasers Penalized for PIN Use", Bob Sullivan writes for about $0.25 fees being charged to some US Bank customers for using their debit cards with PINs instead of signature.

Many Retailers Easy to Hack

Mark Jewell reports for the AP that "half of more than 3,000 retail stores that a wireless security company secretly monitored at major shopping areas in the U.S. and Europe use wireless data systems vulnerable to hacking."

First Data Cuts 1,700 Jobs

Reuters and others are reporting that First Data yesterday cut 1,700 jobs - representing about 6 percent of its workforce.

Headline News - November 16, 2007

Note: Throughout the day, as Payments News happens, this post is updated. For job opportunities available for payments professionals, visit Employers looking to hire payments professionals can post their job openings there as well.

November 15, 2007

TSYS Holds Investor Day

Earlier this week, TSYS held an investor day for analysts - a webcast along with accompanying slides of the presentations icon_PDF_small.gif are available online.

Tyfone, i-flex Partner for Mobile Banking

Tyfone and i-flex Solutions (majority-owned by Oracle) have announced a partnership to implement mobile banking and other mobile financial services for a new client, West Coast Bank.


Bank of America's "Bank the Way you Live"

Bank of America has announced the launch of a new "Bank the Way you Live" online banking microsite. The bank says it enables "customers with on-the- go lifestyles can learn how to break free of conventional banking and find the freedom and control to manage their personal finances online or via mobile or smart phone, courtesy of the number one online bank."


November 14, 2007

ClairMail, mFoundry Form Strategic Partnership for Mobile Banking

ClairMail and mFoundry have announced a strategic partnership to offer "the industry’s most comprehensive mobile banking service that includes the “triple play” of mobile user interfaces – messaging (SMS and email), mobile web and client applications."


NACHA Launches CEO Search

NACHA’s CEO search committee has announced the search criteria for its next chief executive officer and president. Comprised of members of the NACHA Board, the search committee has retained Korn/Ferry International to manage the search process.


Qualcomm to Acquire Firethorn Holdings

Qualcomm has announced it has agreed to acquire Atlanta-based Firethorn Holdings for approximately $210 million in cash. Completion of the acquisition, which is subject to certain closing conditions, is expected within 30 days.


Experian Consumer Direct Teams With Discover

Experian Consumer Direct has announced a collaboration with Discover Financial Services "to provide Credit ScoreTracker, a comprehensive credit score tracking product, for its more than 50 million cardmembers." The service will cost $7.99/month.


November 13, 2007

SRM Technologies Announces SRM Mobile Wallet

SRM Technologies has announced SRM Mobile Wallet, calling it "an advanced mobile payments software application." SRM says its Mobile Wallet enables users of cell phones or other mobile devices to pay for goods and services using the contactless payment systems already in place at over 45,000 U.S. merchants.


Mobile Mania - Over 40 Million US Consumers Using Mobile Banking by 2012

TowerGroup has announced new research that finds that, even though "long stalled by lack of adoption and a range of technical issues", mobile banking is finally coming into its own. "Banking over the mobile channel, especially when considered in the context of an evolution toward mobile payments, is now fast becoming a market mandate -- and is no less important than the dawn of Internet banking in the late 1990s."


eCommerce Fraud Losses Projected to Grow to $3.6 Billion in 2008

CyberSource has release the results of its ninth annual CyberSource Corporation survey of eCommerce fraud - concluding that" U.S. merchants are succeeding in holding the fraud rate stable, but they are expending considerably more resources in the effort. Merchants estimate that 1.4% of their online sales will line the pockets of fraudsters this year-identical to last year-but much higher volumes spent in U.S. eCommerce means the dollar losses are approximately 20% higher The result: criminals will unlawfully carry off $3.6 billion in goods and services this year-up from $3.1 billion in 2006."


Digital Insight's Online Banking Platform Serves Over 8 Million Consumers

Digital Insight has announced that "more than 60 leading financial institutions have selected Digital Insight’s consumer Internet Banking solution since the online banking company was acquired by Intuit in February 2007. In addition, more than 8 million people, or approximately 10 percent of all online banking users in the United States, actively use Digital Insight’s consumer solution through its nearly 1,800 financial institution clients."


CheckFree Announces Expanded Mobile Banking, Mobile Payments Strategy

CheckFree has announced an expanded OpenChannel strategy for mobile banking and mobile payments that it says "is designed to support multiple technologies for delivering online financial services via mobile devices, including microbrowser-based wireless application protocol (WAP), text messaging (known as SMS for short messaging service), and device-resident applications. Financial institutions can choose from a full range of deployment options, including hosted, software-based, hybrid and flexible component models, to meet their specific needs."


Gift Card Fatigue?

In an article titled 'Gift cards may be losing their purchase power', Sandra M. Jones writes for the Chicago Tribune about prospects for gift card sales this holiday season. While most forecasts for growth in gift card sales are rosy, she cites a report from one analyst saying "one in four teenagers are already bored with gift cards and think they are a lame gift from people who have no clue what they really want."

A Mobile Payments Economic Stalemate?

This morning, with several significant mobile banking and mobile payments related announcements (see below), it seems like all is fine with the mobile payments world. However, in a post titled "Mobile Payments Stalemate", Brandon McGee of The Huntington National Bank writes on the Mobile Money & Banking blog about the seemingly zero sum nature of mobile payments economics - asking who's going to pay?

PIN Debit vs. Signature Debit

Ross Kerber writes for the Boston Globe about PIN debit vs. signature debit - noting that banks prefer debit card transactions to be signature debit because of the higher income they receive on those transactions. He then contrasts that with higher fraud on signature debit transactions and cites how some industry analysts are suggesting that banks are more focused on the higher fees than they are on minimizing fraud losses.

Mobile Operators to Launch NFC-Based Mobile Payment Services

The GSM Association has announced that, over the next several months, 12 mobile operators will run trials of contactless mobile payment services in Australia, France, Ireland, Korea, Malaysia, Norway, The Philippines, Singapore, Taiwan, Turkey and the U.S. as a precursor to commercial launches.


AT&T Launches Mobile Banking Nationwide

AT&T has announced "the launch of a comprehensive, easy-to-use mobile banking platform that will enable consumers to view account balances and history, transfer funds and pay bills from their AT&T mobile handsets."


Visa Announces Mobile Payment Trials in Brazil, Canada and Malaysia

Visa has announced "mobile payment trials in Brazil, Canada and Malaysia based on the Visa mobile platform. The trial in Brazil is testing mobile remote payments, while trials in Canada and Malaysia will test mobile Visa payWave transactions at contactless acceptance locations."


Headline News - November 13, 2007

Note: Throughout the day, as Payments News happens, this post is updated. For job opportunities available for payments professionals, visit Employers looking to hire payments professionals can post their job openings there as well.


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