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June 21, 2008

Payments News - Weekly Wrap - June 21, 2008

Here's a review of this week's top stories on Payments News. If you missed it, last week's Weekly Wrap is here. Back to the future!: for fun, click for this same week's activity a year ago here on Payments News!

Looking for more? Checkout our Other Payments and Banking Blogs page.

You can find all of our Weekly Wrap summaries in the Payments News Weekly Wrap Archive. They're published every Saturday and look back at the highlights of the week's news. Please send us on how we can improve the Weekly Wrap!

June 20, 2008

Australia: Preliminary Conclusions of the Payments System Review

Philip Lowe, Assistant Governor of the Reserve Bank of Australia, spoke earlier this month at a Visa forum on the subject of "The Preliminary Conclusions of the Payments System Review".

He says: "If there is a central message to my remarks ... it is that, while significant progress has been made in improving the competitive landscape in the Australian payments system, further progress is needed. Ideally, this progress would be made by industry participants. Reflecting this, the Board’s preliminary conclusions lay out some carrots and sticks that it hopes will promote industry-based reform. In the event that industry is able to respond and deliver a more competitive system, then the most contentious part of the reforms – the regulation of interchange fees – can be rolled back. On the other hand, if industry is either unable or unwilling to take the necessary steps, then the regulation of interchange fees is likely to continue, and these fees, particularly in the credit card system, are likely to be reduced further."

Summer Youth Workers to Be Paid with Visa Payroll Debit Cards

The Washington D.C. Department of Employment Services will be paying young participants in its summer jobs program via JPMorgan-issued Visa payroll debit cards. The agency says it has deployed the payroll card program as a means to provide its young workers with a safe, convenient, and dependable alternative to payroll checks, as well as reduce the costs and time associated with issuing paper payroll checks. READ MORE »

A Look at London's Oyster Card Success

Chris Skinner blogs about London's Oyster card issued by Transport for London. He writes: "The benefits of the programme are multiple in terms of streamlining travel, reducing queues, minimising cash handling, reducing the possibility of fraud by customers and cash theft by staff, and generally improving the customer experience. Having said that, the biggest benefit is the £60 million reduction in annual operating costs for TfL of the ticketing system since implementing the Oystercard."

NRF Welcomes Bond's Support for Credit Card Fair Fee Act of 2008

The National Retail Federation has announced that it welcomes "the addition of Senator Christopher “Kit” Bond, R-Mo., as a co-sponsor of the Credit Card Fair Fee Act of 2008, saying the move shows lawmakers in both parties are increasingly concerned by hidden fees that cost the average family $427 a year." READ MORE »

Headline News - June 20, 2008

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

June 19, 2008

eBay, PayPal Increase Protections For Buyers And Sellers

eBay and PayPal have announced "improved protections for buyers and sellers on eBay.com, in time for this year's holiday shopping season. For the first time, buyers who pay with PayPal will be protected on eligible transactions for 100 percent of an item's purchase price, with no cap on coverage. In addition, all U.S. eBay sellers will receive improved seller protection for eligible transactions when they get paid with PayPal." PayPal's increased buyer and seller protections will take effect this Fall. READ MORE »

Meta Payment Systems Partners with Fiserv, TransUnion for iAdvance

Meta Payment Systems has announced it has contracted with Fiserv and TransUnion "to enhance the next generation of its award-winning iAdvance product. The partnerships enable Meta to expand its short-term, small dollar loan alternative that is accessed immediately on a MetaBank-issued prepaid card." READ MORE »

Another Look at Bank Checking Account Overdraft Fees

The Center for Responsible Lending has published a new report titled "Shredded Security - Overdraft practices drain fees from older Americans" icon_PDF_small.gif that finds that "unauthorized overdrafts strip fees from Americans 55 and older at the level of $4.5 billion per year. Nearly $1 billion of that comes from people who are heavily dependent on Social Security income." The report also finds that "debit cards are the most frequent trigger for overdrafts even for people 55 and older – these debit card overdrafts are both extremely costly and easy to prevent if the banks were interested in discouraging them."

The ABA has issued a separate press release citing a separate study finding that "91 percent of Americans aged 55 and over have not paid overdraft fees in the last year."

Credit Card Issuers Checking More than Consumers' Credit Scores

In an article titled "Card Issuers Get Personal To Check Credit", Robin Sidel writes for the Wall St. Journal about how credit card issuers are beginning to consider factors other than credit scores in determining the amount of credit they'll extend on their credit cards.

MasterCard, Obopay Partner for P2P Mobile Payment Service

MasterCard has announced an agreement with Obopay "to offer a fully-integrated on-demand person-to-person mobile payment service in the United States. The service, offered via MasterCard MoneySend, will give new and existing MasterCard issuing customers the ability to provide an innovative mobile payments service to their MasterCard cardholders on all credit, debit and prepaid MasterCard-branded products." READ MORE »

June 18, 2008

2007 Global Payment Smart Cards Market Survey

The Smart Payment Association has announced results of its 2007 global payment cards market survey finding that more than 420 million payment smart cards were delivered by SPA members, a 24% growth year over year (2007 vs. 2006), both dual interface and pure contactless grew 64% year over year, with the fastest growing region being the Americas with a 45% growth year over year. READ MORE »

US Credit Card Debt and Loan Delinquencies Drop

TransUnion.com has announced the results of its analysis of trends in the credit card lending industry for the first quarter of 2008 finding that, for the first time since the beginning of 2007, average credit card debt and national credit card loan delinquency (the ratio of borrowers 90 or more days past due) experienced statistically relevant sequential quarterly declines. READ MORE »

June 17, 2008

Financial Marketing Strategies to Engage the Mobile Consumer

Javelin Strategy and Research has announced a new report titled "Mobile Marketing: Financial Marketing Strategies to Engage the Mobile Consumer" to be available tomorrow. "58 Million US adults received at least one mobile marketing message on their mobile phones in the last year. Mobile marketing provides an opportunity for financial institutions (FIs) to interactively reach on-the-move consumers closer to the purchase decision in a one-to-one communication." READ MORE »

Global Payments, HSBC Form Joint Acquiring Venture in UK

Global Payments has announced a joint venture with HSBC Bank to provide payment processing services to merchants in the United Kingdom and Internet merchants globally. The new company will operate under the name HSBC Merchant Services. READ MORE »

Juniper Research Says Unbanked Are Key to Mobile Finance Growth

Juniper Research has announced a new report and forecast concluding that 41.5 billion mobile financial service transactions will be made by the end of 2011. Juniper finds that "the key drivers for these transactions will be the high speed of adoption by consumers of new mobile finance facilities -- particularly those currently without access to any form of banking." READ MORE »

Mobey Forum Publishes White Paper on Mobile Best Practices

Saying that "standards-based approaches to the provision of mobile financial services (MFS) move a step closer today", the Mobey Forum has announced a new document titled "Best Practice for Mobile Financial Services — Enrolment Business Model Analysis" icon_PDF_small.gif that examines "the challenge of sharing a mobile handset's secure hardware, the so-called secure element." An accompanying slide set icon_PDF_small.gif and an FAQ are also available. READ MORE »

Fingertip Biometric Payment Pilot Begins In Netherlands

In a press release this morning, payment processor Equens and supermarket chain Albert Heijn have announced they will begin a pilot with Tip2Pay - pay with your fingertip. Both a debit card and your fingertip must be presented at the point-of-sale. READ MORE »

It's June 2008 - Do You Know Where Your BIN's Are?

Glenbrook's Bryan Derman reflects on last week's actions by the FDIC and the FTC against CompuCredit and its sponsoring banks - and wondering how this new focus by the regulators on the activities of third parties might affect some other bank businesses in the US.

Why Africa Is Banking on Cellphones

In an article titled "Why Africa Is Banking on Cellphones", Mail & Guardian Online reports on the growth of mobile banking and how, for people in the developing world, the arrival of mobile banking -- or m-banking -- is potentially revolutionary.

"We wanted to offer something that would work," explained Mung Ki Woo, who heads Orange's m-payments division. "Instead of giving people a plastic card, why not use something many people already have: a cellphone? And instead of doing transactions at a bank branch, why not let people go to their local retailer to deposit and withdraw cash?"

Yodlee and Andera Announce More Than 30 New Customers

Yodlee and Andera have announced that, in less than ten months, more than 30 financial institutions have selected the combined Yodlee/Andera solution for online account verification, opening and funding. READ MORE »

Payoneer Gives Organizations A Better Way to Pay Worldwide

Payoneer has announced that it is helping direct selling industry leaders to pay their international sales representatives’ commissions on branded reloadable Prepaid MasterCard cards instead of sending them paper checks or wire transfers. READ MORE »

June 16, 2008

Serving Unbanked Consumers in Transit with Prepaid Cards

The Smart Card Alliance Transportation Council has announced publication of a new white paper, "Serving Unbanked Consumers in the Transit Industry with Prepaid Cardsicon_PDF_small.gif, that examines how transit agencies can serve "unbanked" or "underbanked" individuals, including both the traditional approach of establishing retail sales outlets for fare media and a potential new approach of using network-branded prepaid cards. READ MORE »

A Look at the RBI's Mobile Payments Guidelines

Mukul Singhal blogs about the Reserve Bank of India's recent issuance of draft guidelines for mobile banking and payments in India. He also links to a useful paper by Mahil Carr titled "Mobile Payment Systems and Services: An Introduction" icon_PDF_small.gif.

Fidelity National Information Services to Offer Secure Vault Payments

NACHA has announced that Fidelity National Information Services (FIS) will offer NACHA’s Secure Vault Payments solution to its clients. FIS will offer Secure Vault Payments to current clients as well as financial institutions without an existing relationship with FIS. READ MORE »

FDIC Celebrates 75 Years as "Pillar of American Banking System"

The FDIC has issued a press release celebrating its 75th anniversary. "Deposit insurance has given consumers peace of mind that their insured money is safe. We at the FDIC are very proud to say that no depositor has ever lost a penny of insured funds at an FDIC-insured institution. As bank customers age and accumulate wealth in savings and retirement accounts, now more than ever, it's important for people to know their deposit insurance limits," Chairman Sheila C. Bair said today. READ MORE »

eBay Announces Plan to Open Site to Third Party Developers

eBay has announced plans to allow third parties to integrate applications directly onto its ecommerce site. According to eBay, "this move will give developers unprecedented access to eBay’s community of professional sellers, creating more opportunities for developers to market their tools and giving sellers a wider variety of sales optimization applications." READ MORE »

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