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October 28, 2010

Boston Fed Survey Shows Americans Can Be Choosy About Their Payment Methods

survey_graphic_140px.png"A sizable and growing minority of American consumers who once possessed a credit card no longer have one," says the Federal Reserve Bank of Boston’s Consumer Payments Research Center. Surveys done over the last two years indicate that the “discard rate,” the percentage of consumers who have abandoned that method of paying for purchases, grew from 14% in 2008 to 16.5% in 2009. In contrast, the discard rate among Americans for prepaid cards was 27.5%. Debit cards were about 5%.

These figures were announced in the 2008 Survey of Consumer Payment Choice (SCPC), annual study by the Boston Fed that is available to the public for free.

PCI Security Standards Council Releases Version 2.0 of the Security Standard

PCI_Council_logo_140px.pngThe PCI Security Standards Council (PCI SSC) has announced version 2.0 of the PCI-DSS and PA-DSS standards. Reflecting input from the Council’s global stakeholders, this latest version does not introduce any new major requirements, but does modify language of the standard in order to clarify the meaning of the requirements and make understanding and adoption easier for merchants.

Visa Reports Fiscal Fourth Quarter and Full-Year 2010 Financial Results

visa_logo-140px.jpgVisa has announced financial results for its fiscal fourth quarter and full-year 2010 which ended September 30, 2010 with GAAP net operating revenue for the quarter of $2.1 billion, an increase of 13% over the prior year and driven by "strong contributions across all revenue categories, in particular data processing and international transaction revenues." GAAP net operating revenue in the full-year was $8.1 billion, an increase of 17% over the prior year.

Some quarterly highlights:

  • Payments volume growth, on a constant dollar basis for the three months ended June 30, 2010 on which fiscal fourth quarter service revenue is recognized, was a positive 14% over the prior year at $802 billion.
  • Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2010, was a positive 14% over the prior year at $828 billion.
  • Cross border volume growth, on a constant dollar basis, was a positive 16% for the three months ended September 30, 2010.
  • Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2010, totaled 12.1 billion and were a positive 16% increase over the prior year.
A conference call replay, presentation and more detailed operational performance data are available online.

miiCard Announces Strategic Relationship with Yodlee to Deliver Digital Passports

miicard_logo_140px.pngmiiCard has announced that is soft launching a new digital identity solution for the financial services.
Powered by Yodlee,the miiCard Digital Passport enables consumers to prove “they are who they say they are” online, in real-time; enabling them to buy financial products completely online for the first time, in a fashion that meets Anti-Money Laundering laws, Know Your Customer regulations and the Proceeds of Crime Act standards.
The company hopes to eliminate the "often cumbersome and always time consuming need for offline proof of identity before a financial product can be purchased."

Mobey Forum Reaches Landmark Representing More Than 25% of Banking Customers Globally

mobey-forum-logo_140px.pngMobey Forum has announced that it has reached the impressive milestone of its members now collectively representing more than 450 million banking customers globally. "The association attributes increasing membership enquiries to the market’s growing desire to deliver mobile financial services to end-users."

Ixaris Partners with Apigee to Create API Platform for Payment Application Development

ixaris_logo_140px.pngIxaris has announced a partnership with Apigee to create an industrial-grade API platform for enterprises and developers creating payment applications on Ixaris Opn (pronounced ‘open’).
Ixaris Opn is a platform that allows developers, businesses and financial institutions to rapidly create payment applications. Unlike similar platforms such as PayPal X, Ixaris Opn allows developers to create and run their own global payment applications using open loop virtual or physical cards under the Visa and MasterCard schemes.

First Data and VeriFone Collaborate on Data Security Solution

first data logo 140px.pngverifone_logo_140px.pngFirst Data and VeriFone have announced they are working together to offer a VeriFone edition of the First Data® TransArmorSM solution to U.S. multi-lane and petroleum merchants. This will enable businesses using VeriFone’s MX 800 series of devices, Secure PumpPay and the Ruby point-of-sale (POS) solutions to take advantage of a complete security solution combining VeriFone’s VeriShield encryption along with tokenization technology from RSA.

AT&T Launches Multi-Partner Direct Mobile Billing Trial

AT&T-logo-114px.png BilltoMobile (announcement), BOKU (announcemnet), and Zong (announcement) are all working with with AT&T to provide direct mobile billing payment services to AT&T’s wireless subscribers – enabling customers to charge digital content purchases made online directly to their existing wireless service account.

This is the second direct mobile billing agreement with a major carrier that BilltoMobile has announced this year - the company announced a similar integration with Verizon in March - and the first for BOKU and Zong.

October 27, 2010

Credit Card Offers Are Needlessly Confusing; New Law Brings Some Improvement

crl_logo_140px.pngA new study by the Center for Responsible Lending (CRL) finds that "credit card offers have grown increasingly complicated since 2000, when Congress required issuers to start disclosing pricing information on credit card offers. But instead of providing clarity to consumers about the true cost of their credit cards, issuers responded to this mandate by adding a confusing array of numbers to their offers."

VeriFone and RSA to Deliver Integrated End-to-End Encryption / Tokenization Service

RSA_logo-140px.pngverifone_logo_140px.pngVeriFone and RSA have announced a partnership to market an integrated offering combining their respective end-to-end encryption and tokenization solutions for secure card processing. The new offering, branded VeriShield Total Protect, will provide a consistent, consolidated approach to protecting payment card data from end-to-end, both pre- and post-authorization.

October 26, 2010

PayPal X Innovate 2010 Developers Conference

PayPal_logo-140px.jpg At its PayPal X Innovate 2010 developer conference today, PayPal unveiled "new technologies and partnerships that will allow people to change the way they pay – accessing their digital wallets from more devices to shop, browse and pay anytime, anywhere."

PayPal Announcements:

Partner Announcements: Ustream is providing a live video feed from both days of the PayPal X Innovate 2010 conference, including all general conference sessions as well as live interviews from the show floor with executives, speakers, developers and attendees.

Glenbrook's Russ Jones has his reactions from the first day of the conference posted in Payments Views.

October 25, 2010

Federal Reserve Releases Report on College Credit Card Agreements

Fed.gifThe U.S. Federal Reserve Board has released a report to congress on College Credit Card Agreements that contains payment and account information about more than 1,000 agreements between credit card issuers and institutions of higher education or affiliated organizations that provide for the issuance of credit cards to students. The Board also launched an online database with additional information such as the terms of these agreements.

Bank Executive Survey: The Return of Pessimism

survey_graphic_140px.pngThe vast majority of bank executives are not confident that financial reform will be effective in detecting the broad risks to the financial system and preventing or reducing the threat of future taxpayer-funded bailout, according to Grant Thornton LLP’s 17th Bank Executive Survey, conducted in conjunction with Bank Director magazine.
When asked about the recent Dodd-Frank legislation, most bankers said that the provision that would impact their bank the most was the creation of consumer protection agency (73%). Bankers also were concerned that interchange fees paid by merchants and retailers to banks that issue debit cards would be set by the Federal Reserve in an amount that is “reasonable and proportional” (71%).

Visa Opens World’s Leading Payments Network to Independent Developers

visa_logo-140px.jpgVisa has announced a number of enhancements to the Authorize.Net Developer Center, a resource that enables "independent developers to create applications supporting electronic payments and related services for major payment networks including VisaNet." The Developer Center builds on Authorize.Net’s existing platform, which Visa acquired as part of the purchase of CyberSource earlier this year.

Besides an improved developer program, what's new here is a PCI-friendly card acceptance technique called the Direct Post Method. "Because customer billing data posts directly to Authorize.Net without touching the merchant server, the merchant can retain control over the receipting experience without incurring PCI DSS overhead."

First Data Adds Emerging Payments Support to Compass Platform

first data logo 140px.pngFirst Data and CardinalCommerce have announced that online merchants using the First Data Compass platform to seamlessly accept and process emerging payments transactions through services like PayPal Express Checkout. In addition to streamlined processing, merchants are also able to easily combine order management, customer service and reporting of each emerging payment type within their core business.

Bank Fees Rise to Record Numbers According to Bankrate's 2010 Checking Study

bankrate_logo_140px.pngA new study released by Bankrate, Inc. shows that the costs of checking account fees have risen again this year to an all-time high. ATM fees leapt 5% from 2009, overdraft fees increased 3%, monthly fees for non-interest accounts increased 40%, monthly fees for not maintaining a minimum balance on an interest checking account increased almost 4%.

Chasing the E-Invoicing Dream: New Glenbrook Research Report

GP Logo Horizontal-140px.pngCompanies of all sizes have adopted accounts payable (AP) solutions, yet new IAPP-TAWPI and Glenbrook research reveals that e-invoicing benefits remain elusive. The vast majority of business (of all sizes) report that less than 20% of incoming invoices are eInvoices. Benefits realized thus far are modest compared to the e-Invoicing's potential. Learn more about the findings and purchase the report on Payments Views.

October 22, 2010

SEPA - Beyond Theory Into Practice

sepa_logo_140px.pngThe European Central Bank has published the seventh in a series of progress reports on the Single Euro Payments Area (SEPA) (PDF). The bank reports in on progress over the last two years and provides guidance on the way forward in multiple areas -- SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD), Cards, eSEPA (online payments), security, infrastructure, migration, and governance of retail payments and cash services.

Glenbrook's Russ Jones at PayPal X Innovate 2010

PayPalX_logo-140px.pngGlenbrook's Russ Jones will be at PayPal X Innovate 2010 in San Francisco October 26-27. He's speaking in a session entitled "Commercial Payments: Challenges and Opportunities for Developers", and will be posting his reaction to the conference on our sister blog Payments Views. If you are attending PayPal X Innovate and want to say hello, .

Mobile Photo Bill Pay

mitek_logo_140px.pngMitek has announced a new app that lets users pay bills with their smartphone camera.
After establishing online-bill-payment arrangements as part of their banking account, users of Mobile Photo Bill Pay can initiate e-bill-payment sessions on their smartphones, then simply snap photos of the bills they want to pay, verify the payment information and click on the app's "PAY" button.
The app eliminates the hassle of users setting up information for individual payee accounts because Mitek technology extracts the data from the photo image and automatically provides it to the financial institution's bill-processing system in the required format.

Sears Expands Payment Methods to Support Installment Payments

sears_logo_140px.pngSears has added yet another new payment option to its existing suite of financing solutions – the Sears Monthly Payment Plan. The new plan offers a more controlled form of borrowing for shoppers who want to avoid unexpected finance charges. The basic terms are 48 equal payments on purchases over $750, with APRs as low as 12.99%, subject to credit approval. Financing is provided by GE Money Bank.

Headline News - October 22, 2010

Headline News is compiled by Glenbrook Partners:

Note: Throughout the day, as we spot interesting developments, this post is updated.

October 21, 2010

American Express Announces Third Quarter 2010 Financial Results

Amex_logo_140px.pngAmerican Express has reported financial results for the third quarter 2010. Net income was $1.1 billion, up 71% from $640 million a year ago.
"Cardmember spending rose a strong 14% with the largest increases coming from businesses where we've been making significant investments: charge and premium co-brand products, corporate cards and cards issued by our bank partners," said Kenneth I. Chenault, chairman and chief executive officer.

PayPal Now Supports Online Banking Top-Up and Send Money in Malaysia

PayPal_logo-140px.jpgPayPal and the RHB Banking Group have announced the availability of a new service that lets RHB customers use their checking or savings account to instantly top-up a PayPal account. RHB also plans to launch PayPal's Pay Anyone product next week. PayPal blogs about this development here.

New Consumer Payment Preferences Study

survey_graphic_140px.pngHitachi Consulting and BAI have announced the results of a new study on consumer payment preferences in the United States. The results call out the significance of the Millennial Generation (ages 18 to 34) which has the highest debit card ownership ((80%). The study also shows that "88% of consumers said they do not currently use mobile payments for in-store purchases, nor do they plan to use them in the next two years, despite the media hype on mobile payments."

The research was sponsored by First Data Corp., FIS, MasterCard, PULSE, and U.S. Bancorp.

VeriFone and Gemalto Forge Strategic Partnership

Gemalto_logo_140px.pngverifone_logo_140px.pngVeriFone and Gemalto have announced a comprehensive strategic partnership to jointly pursue new chip card solutions based on the global EMV payment standard. The two companies are also in exclusive discussions for VeriFone to acquire Gemalto's point of sale (POS) solutions business. As part of the partnership, Gemalto will also be the preferred supplier of Machine-to-Machine (M2M) wireless modules and related solutions for VeriFone payment systems.


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