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July 28, 2011

FinovateFall 2011 Demo Roster Revealed

FinovateFall 2011 140x40Jim Bruene and his Finovate team have announced the 60 handpicked companies will take the stage at FinovateFall 2011 in Manhattan on September 20-21 to demo their latest financial and banking technology innovations -- the lineup includes various payments companies we're not familiar with (ModoPayments) to others we are (MasterCard Worldwide).

Glenbrook's Bryan Derman will be in attendance as well, and plans to live blog what he finds new and interesting at the event.

First Data Introduces Information and Analytics Product Suite

First data logo 140pxFirst Data has introduced a new suite of product offerings from its Information and Analytics Services (I&AS) division, all of which draw insight based in part on First Data’s proprietary SpendTrend consumer spending and payments data.

Visa to Introduce Hybrid Pricing Scheme for Card Acceptance

Visa logo 60pxhOn yesterday's earnings call with analyst, CEO Joseph Saunders said that Visa would introduce a new "network participation fee" for all merchant acquirers in the US. While not yet fulling defined, various media outlets have what details are available and industry reaction: The new scheme is thought to give Visa more flexibility for capturing debit routing volume from merchants.

July 27, 2011

Visa Reports Fiscal 3Q 2011 Results

Visa logo 140pxVisa has announced financial results for the Company's fiscal 3Q 2011 ended June 30, 2011 with GAAP net income for the quarter of $1.0 billion on GAAP net operating revenue of $2.3 billion, an increase of 14% over the prior year. Fiscal 3Q 2011 highlights include:
  • Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2011, on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $862 billion.
  • Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2011, was a positive 13% over the prior year at $941 billion.
  • Cross border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2011.
  • Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2011, were 13 billion, a positive 11% increase over the prior year.
Client incentives, which are a contra revenue item, were $448 million and represents 16% of gross revenues. A webcast replay is available on the Visa investor website.

Mitek Systems Launches 'Mobile Imaging Cloud' Service

Mitek logo 140pxMitek Systems, a key technology provider for mobile check deposit, has announced the availability of the first Mobile Imaging Cloud, a new service for mobile application developers, systems integrators and businesses that want to a "fast, cost-effective way to create smartphone and tablet apps that use the camera as an input method for a wide variety of tasks."

Mitek’s extractive-imaging technology works with both paper and non-paper documents, including drivers’ licenses, gift cards, receipts, invoices, tax documents and many others.

Current Opportunities on PaymentsJobs.com

PaymentsJobs logo 140pxSeveral new positions for payments professionals have recently been posted to Glenbrook's payments industry job board in July: Is your company hiring? Are you in the market for qualified payments professionals? You can reach the best candidates here! Post your job openings for payments professionals on PaymentsJobs.com!

Consumers Made $72 Billion More in Credit Card Payments Than Purchases

TransUnion logo 140pxA new TransUnion analysis has found that consumers made an estimated $72 billion more in payments on their credit cards than purchases between the first quarters of 2009 and 2010.
"Many people in the financial services industry believe charge-offs have been the leading factor in declining credit card debt since the start of the recession," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "In fact, some have stated that charge-offs account for the entire change in card balances over the past two to three years. In reality, the dynamic is more complex. Our analysis shows that consumers have made a concerted effort to pay down their credit cards during these uncertain economic times."

Citibank Launches iPad-Optimized Consumer Banking App

Citi logo 140pxCitibank has unveiled its first-ever consumer banking app designed specifically for iPad.
“Our iPad app is all about listening to our clients and understanding that they need their digital banking experience to be more engaging and dynamic – beyond the standard static tables you find with other iPad apps,” said Tracey Weber, Head of Internet and Mobile Banking, North America Consumer Banking, Citi. “We’re offering a whole new way of banking, with enhanced visuals and interactive tools. We’re focused on continually offering modern solutions that help put ease into our clients’ financial lives, wherever and whenever.”

Exploring the New Face of Retail Payments

Fed"At the Chicago Fed’s 2011 Payments Conference, held on May 19–20, participants discussed how changes in consumers’ behavior in the wake of the financial crisis and recession can translate into opportunities and challenges for both traditional and nascent payment providers. They also focused on the impact of payment innovations and new consumer protection regulations." This special issue of the Chicago Fed Letter is now online.

July 26, 2011

FinCEN Issues Prepaid Access Final Rule

FinCen logo 100pxThe Financial Crimes Enforcement Network (FinCEN) has issued its final rule that "amends Bank Secrecy Act Regulations – Definitions and Other Regulations Relating to Prepaid Access, amending the money services businesses (MSB) rules and establishing a more comprehensive regulatory approach for prepaid access. In summary, the rule puts in place suspicious activity reporting, and customer and transactional information collection requirements on providers and sellers of certain types of prepaid access similar to other categories of MSBs."

Jumio Turns Webcam Into Card Reader

Jumio logo 140x60ReadWriteWeb has a nice summary of new technology that turns a webcam into a card reader.
Payments company Jumio is today launching a new technology called Netswipe that turns any webcam into a credit card reader, both on the desktop and on mobile. The service aims to bridge the convenience of online and mobile shopping with the security inherent in face-to-face transactions. It also makes it incredibly easy to shop — you just hold up your credit card in front of your webcam to complete the transaction.
Jumio website is here. Watch the video for a quick summary of how it works.

July 25, 2011

Confident Technologies Unveils New Mobile Authentication Technology

Confident logo 140x40Confident Technologies has announced 'Confident Multifactor Authentication', a new approach to two-factor authentication that delivers an image-based authentication challenge to users' mobile phones for a more secure out-of-band authentication process.
Confident Multifactor Authentication provides a completely new and highly secure way to protect online businesses and their customers from fraud and Zeus-in-the-Mobile (Zitmo) attacks, by securing the second factor and verifying that it is in fact the legitimate user in possession of the mobile device and not another person who may have stolen the user's phone or is surreptitiously intercepting the authentication text messages.

Survey Says "Brand Protection" Drives Payment Security Investments

Survey graphic 140px"Findings from a new survey of eCommerce merchants released today by CyberSource and Trustwave show that nearly 70% of respondents cited the need to 'protect the brand' as the primary driver for tightening controls against hackers and other payment security risks." Only 26% said avoiding PCI compliance fines were the key motivator.

appMobi Secures Mobile Payments with 'cloudKey'

Appmobi logo 140x40appMobi has announced cloudKey, a new patent-pending technique for storing personal information locally, locked with secure keys delivered from the cloud:
The cloudKey technology takes a fresh approach to secure online commerce in which the user’s credit card information is stored only on the user’s device, never in an online database. The private data are stored using 256 bit Advanced Encryption Standard (AES) – the same encryption level approved by the NSA, widely regarded as “unbreakable.” Using a “distributed key” topology, cloudKey stores in the cloud only the decryption keys – information that is valueless without the user’s device and password.
appMobi also announced the integration of cloudKey into into appMobi’s 1Touch “single touch” payment system.

July 22, 2011

American Express Announces Second Quarter 2011 Financial Results

Amex logo 140pxAmerican Express has reported financial results for the second quarter 2011. Net income was $1.3 billion, up 31% from a year ago. Kenneth I. Chenault, chairman and chief executive officer, commented:
Cardmember spending was at an all-time high, growing 18% (15% adjusted for foreign exchange conversions) and we saw broad-based strength across the consumer, small business and corporate sectors globally. While net interest income was down from last year because of a lower yield on our portfolio, cardmember borrowing rose 2%, reversing the pattern of the past couple of years.

Glenbrook's Jacqueline Chilton at Direct Response Forum 2011 Conference

GP Logo Horizontal 140pxGlenbrook's Jacqueline Chilton will be on hand at the Direct Response Forum (DRF) 2011 conference to present Glenbrook Partners' research findings and insights on best practices in payments organization. This years DRF conference is being held August 8-10 in San Diego. Jacqueline's session, entitled "Organizing Your Payments Functions", is on the Wednesday the 10th.

If you're going to be in San Diego, , she'd love to meet you!

Report: Government-Administered, General-Use Prepaid Cards

FedThe Dodd-Frank Act requires the U.S. Federal Reserve to report annually to congress on the "use of general-use prepaid cards in federal, state, and local government-administered payment programs and the interchange transaction fees and cardholder fees charged with respect to the use of such general-use prepaid cards." The Fed has published its first report.

July 20, 2011

A Look at PayPal's 2Q2011 Financial Results

PayPal logo 140px PayPal's parent eBay announced financial results for 2Q2011.

eBay's Payments segment (including PayPal and BillMeLater) revenue was $1,073 million for the quarter, representing PayPal's first billion dollar quarter, and an increase of 31% year over year. Net total payment volume (TPV) for the quarter was $28.7 billion, an increase of 34% year over year. In term of revenue mix, Merchant Services (the off-eBay business) represented 65.6% of TPV, up from 61% a year earlier. Merchant Services net TPV now includes net TPV for Bill Me Later whether used within or outside of the PayPal wallet. BML purchase volume is no longer individually broken out. 49% of payments revenue was international.

Active accounts (defined as active in the last 12 months) reached 100.3 MM, up 15% year over year.

Giftango to Convert Plastic Gift Cards Into Digital Cards for Mobile Wallets

Giftango logo 140pxGiftango has announced "the release of its Mobile Wallet Conversion Platform, for securely converting plastic gift cards into digital forms of payment by inserting and leveraging a 2D barcode on the back of a plastic gift card. Giftango has assembled the infrastructure needed to help bring merchants, incentive houses, plastic card printers, and virtual payment technology companies together to drive consumer adoption of the mobile wallet."

Mazooma Micropay-in-a-Box Targets Discover Digital Goods Merchants

Mazooma logo 140pxMazooma has announced an "instant on" micropay-in-a-box solution that is available to Discover’s direct merchants using the Centinel® Universal Merchant Platform through CardinalCommerce Corporation.
“With Mazooma’s micropay-in-a-box solution, Discover merchants selling digital content can enjoy instant, online payments, as well as ease of implementation, less technical resources and consolidated settlement and reporting,” says Farhan Ahmad, General Manager, Prepaid & Director of Emerging Payments at Discover. “At Discover, we aim to provide our merchants with more payment choices, and we believe the relationship with Mazooma will do just that.”

July 19, 2011

Isis Forms Relationships with Visa, MasterCard, Discover, and AmEx

Isis logoIsis, the national mobile commerce joint venture between AT&T Mobility, T-Mobile USA and Verizon Wireless, has announced that "Visa, MasterCard, Discover and American Express will join Isis in making mobile commerce a reality for millions of U.S. consumers and merchants."
“Since the formation of Isis in November, we have been committed to building a mobile commerce platform that aligns and advances the interests of consumers, merchants and banks,” said Michael Abbott, chief executive officer for Isis. “By working with the nation’s payment networks – Visa, MasterCard, Discover and American Express – we significantly advance the vision of an open and secure platform that provides banks and merchants with a new and highly relevant way to connect with consumers.”

CorFire Announces Branded Suite of Mobile Technology Products

CorFire logo 05 13 11CorFire has announced a branded suite of payments-related technology products. "CorFire’s branded products include CorTrust, its Trusted Service Manager (TSM); CorPay, a robust mobile wallet platform; and Cor360, a set of mobile marketing services that includes location-enabled offers, gifting, and loyalty services."

American Express Launches “Link, Like, Love” App on Facebook

Amex logo 140pxAmerican Express has launched a new Facebook app called "Link, Like, Love" that delivers cardmember deals and experiences based on the likes, interests and social connections of cardmembers and their Facebook friends."
Starting today, on the American Express Facebook page, cardmembers can link their cards to the program and choose their favorite deals; American Express will send statement credits to cardmembers’ accounts as they shop online or in stores, without the need to pre-purchase anything, print out or show a coupon at the point of sale. In the coming months, American Express will also deliver Membership Rewards® points offers, entertainment access, exclusive content and special events through the application, all based on a cardmember’s Facebook social graph.

American Express also unveil a “Go Social” offer tool for small businesses to distribute coupon-less, location-based cardmember offers in Facebook Places and other digital platforms.

PrepaYd to Offer Its Own Wireless Services on the Sprint Network

Prepayd logo 140pxPrepaYd, Inc. has announced that it has entered into a agreement with Sprint to become a Mobile Virtual Network Operator (MVNO) and will be able to provide its own branded wireless services using the Nationwide Sprint Network.
“The prepaid debit card business is in a Hyper Growth phase right now. Our customer base and the customers we market towards understand the benefits of prepaying for services. We believe Prepaid Wireless is a perfect product for us to offer and it fits our company’s long term business development plans,” stated Rick Galasieski, SVP PrepaYd, Inc and President of PrepaYd Wireless, Inc.

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