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February 09, 2007

Glenbrook Payments Boot Camp Update

Glenbrook just wrapped up our latest public Payments Boot Camp, held in Santa Clara, California. Forty-five payments professionals, from banks, payments processors, technology companies, service providers, and analytic firms spent a lively and intense two days picking apart the U.S. payments systems and looking at their many moving parts.

As always, the section on "emerging payments" was very popular (with particular interest on the evolving pre-paid card infrastructure and on the long term significance of Google Checkout), but the group was also very interested in new uses of the ACH, and the "horse race" underway between check image clearing and check-to-ACH conversion.

We finished with a short poll on preferred form factors for face-to-face purchases such as groceries or gas. The winner? Mobile phones (43%), followed by "cards as they exist today" (31%), fingerprint (14%) and keychain fob (11%) .

Our next Glenbrook Payments Boot Camps are in Atlanta (March 13th and 14th) and New York City (April 24th and 25th). We're also offering our first ever Merchants Payments Boot Camp - tailored specifically for merchant payments professionals - on March 21-22 in Santa Clara, CA.

A Look At Google Checkout

A few weeks ago, Bill Tancer from Hitwise posted some traffic details on Google Checkout - including a list of the top 10 sites using Google Checkout. Number 1 was - who also accepts PayPal and Bill Me Later.

MasterCard Announces Fourth Quarter Financial Results

MasterCard this morning reported its fourth quarter financial results, reporting net income of $41 million, or $0.30 per share. Excluding the impact of litigation settlements, net income for the quarter was $42 million, or $0.31 per share. An accompanying presentation is available online.


February 08, 2007

Massachusetts Attorney General Leading Investigation Into TJX Data Breach

Massachusetts Attorney General Martha Coakley has announced that "her office is leading a multi-state civil investigation into the recently disclosed security breach at TJX Companies. The Consumer Protection Division of the Attorney General's Office is investigating the breach, which was disclosed last month by the Framingham-based company, and particularly what security measures the company took to protect consumer information."


FTC Releases Annual List of Top Consumer Complaints

The Federal Trade Commission has issued its annual report, “Consumer Fraud and Identity Theft Complaint Data,” (PDF) reporting on complaints consumers have filed with the agency. For the seventh year in a row, identity theft tops the list, accounting for 36 percent of the 674,354 complaints received between January 1 and December 31, 2006. Other categories near the top of the complaint list include shop-at-home/catalog sales; prizes, sweepstakes and lotteries; Internet services and computer complaints; and Internet auction fraud.

Visa, SK Telecom Announce Plans to Launch Mobile Payments in South Korea

Visa International and SK Telecom have announced plans to launch "what they expect to be the world's first contactless payment application on a universal SIM card which is personalized over-the-air."


February 07, 2007

Google Checkout Launches Valentine's Day Promotions

Google Checkout has launched consumer promotions for Valentine's Day. "Through February 15, first-time shoppers on Google Checkout will receive $10 off a one-time purchase of at least $10. This offer is being featured on a wide variety of Google Checkout's thousands of merchant partners, including, Zales, Jockey, Bluefly, Aeropostale, and new partner Blue Nile." Google is highlighting the consumer convenience benefits of Google Checkout saying that it "eliminates an average of 15 steps from the online checkout process, in many cases making checking out as simple as entering a single login."

VIVOtech Supports Taiwan NFC Mobile Payment Trial

ViVOtech has announced the f"irst deployment of an end-to-end NFC payment and promotion infrastructure software in Taiwan as part of a joint initiative by MasterCard, Taipei Fubon Bank and Taiwan Mobile. The three companies are launching a broad NFC mobile phone payment pilot program based on ViVOtech technologies in the region."


Prospering Without A Bank Loan

Yesterday, Marketplace, a business news radio program from American Public Media, had a segment all about peer-to-peer lending - in particular about A transcript of the segment is available online along with the audio that you can listen to online. The segment is introduced with the comment: "banks, credit card companies and those payday loan centers make billions of dollars every year lending us money. But why should they get all the profit?"

Community Bankers Concerned About Data Breaches

The organization America's Community Bankers has announced results of a recent survey of its community bank membership reporting that "data security continues to be a significant issue for community banks and their customers, and that card network and congressional action is necessary to address this far-reaching problem."


Chase No. 1 US Issuer Of Visa, MasterCard

Leslie Pappas reports for the Wilmington News Journal that Chase Card Services last year pulled ahead of Bank of America to become the largest US issuer of Visa and Mastercard cards (based upon receivables outstanding) - but Bank of America still remains the largest credit card issuer when the bank's new American Express card portfolio is added in.

Corillian Supports Integration of Microsoft Windows CardSpace

Corillian has announced it is integrating support for Windows CardSpace into its online banking products. Windows CardSpace is a component of the .NET Framework 3.0, available on Windows Vista and Windows XP, which helps store a person’s digital identity in a security-enhanced manner, and provides a unified interface for choosing the identity for a particular transaction, such as logging in to a Web site.


Merchant Risk Council Elects Board of Directors

The Merchant Risk Council has announced it has named 15 online retail and technology professionals to serve on the non-profit organization’s board of directors for 2007. The board will be responsible for oversight of committees focusing on strategy, finance, revenue, and growth management for domestic and international expansion.


February 06, 2007

Merchants Say US Consumers Support Interchange Fee Disclosures

According to the Merchants Payments Coalition and a poll they commissioned, US consumers "overwhelmingly believe that Visa and MasterCard should disclose the $30 billion in hidden "interchange" fees they charge each year and consumers want Congress to do something about it."


An Interview With RSA's Art Coviello

Joris Evers of CNET interviews RSA president Art Coviello during this week's annual RSA Conference being held in San Francisco. Coviello comments that "if you look at the three biggest Internet banks in the country, they way they have responded to the FFIEC recommendation for having strong authentication in online transactions, each one is using a different type of RSA technology."

Outrunning the Regulators

Titled "Outrunning the Regulators," this month's Resilience Report from strategy+business and Booz Allen Hamilton by Joni Bessler, Debra Banning, and Roman Regelman discusses the FFIEC guidelines regarding authentication and recommends that "banks institute a mechanism for self-analysis and self-improvement that allows them to anticipate their future security needs. In doing so, they will meet their current burden of compliance, lessen the impact of any future regulatory guidance, reduce their risk exposure, and address customers’ concerns about the security of online banking."

PayPal's Pearson on Staying Consumer-Friendly

TechNewsWorld carries an interview with PayPal's Todd Pearson by Kelly Shermach of E-Commerce Times about the company's future, and online payment and security.

Headline News - February 6, 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.

Who's News - Payments Professionals Management Changes

We have received news of the following recent management changes:

  • Max Narro has been named senior vice president, Product, Marketing and Industry at First Data Resources.
Announce yourself! Have you recently taken on a new position in the payments industry? If you'd like to share the news with your colleagues, be sure to tell us about it. Are you looking for a new payments-related job? Or are you needing to find someone great? Checkout the Payments Jobs job board.

February 05, 2007

MasterCard's Process For IT Innovation

Michael Fitzgerald writes for CIO Magazine about W. Roy Dunbar, MasterCard's president of global technology and operations, and the processes he's using to help MasterCard find ways to innovate faster - including using a process called "Rapid Value Creation" - coupled with "Accelerated Solutions Development Environment" - a software development process designed to make the IT organization more responsive to business needs.

NACHA Begins Assessments, Annual Fees

NACHA has announced that, effective January 1, 2007, it will begin "assessing financial institutions a fee of $0.0001 on all ACH transactions except "on-us" transactions. NACHA is also assessing every financial institution using the ACH Network an annual fee of $42, including those that choose not to be members of Regional Payments Associations."


Wachovia Selects RSA Adaptive Authentication

RSA has announced that Wachovia has "deployed the RSA® Adaptive Authentication solution and joined the RSA eFraudNetwork community to protect its customers, their funds and personal information further when banking online, while incurring minimal impact to the online user-experience."


A Look At Ceridian and Comdata

Mark Veverka writes for Barron's Online about Ceridian and efforts by some shareholders to have the company divest itself of its Comdata subsidiary. Comdata's Stored Value Systems unit is one of the largest gift card processors in the US.

Who's News - Payments Professionals Management Changes

We have received news of the following recent management changes:

  • Jeff Amann, a former
    has been named Chief Administrative Officer and Interim Chief Financial Officer at Pay By Touch.
  • Steve Groppi has been named head of Cash Management sales at JPMorgan Chase Treasury Services.
  • Michael Geppert has been named president, First Data Solutions, at First Data Corp.
Announce yourself! Have you recently taken on a new position in the payments industry? If you'd like to share the news with your colleagues, be sure to tell us about it. Are you looking for a new payments-related job? Or are you needing to find someone great? Checkout the Payments Jobs job board.


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