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January 16, 2012

JPMorgan Chase - Card Services 4Q2011 Financial Results

Chase logo 140pxJPMorgan Chase has reported financial results for the fourth quarter 2011.
  • For its Card Services unit, Chase reported net income of $1.1 billion, a decrease of $497 million, or 32%, compared with the prior year. The decrease was driven by a $1.7 billion lower reduction in the allowance compared with the prior year, predominantly offset by lower net charge-offs.
  • Excluding the Washington Mutual and Commercial Card portfolios, Card Services net revenue as a percentage of average loans was 11.64%, compared with 11.78% in the prior year and 11.68% in the prior quarter.
  • Excluding the Washington Mutual and Commercial Card portfolios, Credit Card sales volume was $91.0 billion, up 9% compared with the prior year and 7% compared with the prior quarter; excluding also the impact of the Kohl's portfolio sale, sales volume was up 14% compared with prior year.
Chase Paymentech merchant processing volume was $152.6 billion, up 20% from the prior year and 10% from the prior quarter; total transactions processed were 6.8 billion, up 21% from the prior year and 11% from the prior quarter.

Ingenico Launches New PayPal Payment Solution

Ingenico logo 140x60pxIngenico announced its relationship with PayPal, "which will enable merchants with Ingenico POS devices to accept PayPal payment options."
"PayPal's vision for the future of shopping includes people making purchases anytime, anywhere and over any device. Ingenico is helping PayPal realize this vision by putting PayPal in stores and at the point of sale," said Don Kingsborough, vice president of retail and pre-paid products. "Millions of PayPal users will soon have several innovative ways to make purchases at many of their favorite retailers, including using Ingenico terminals to swipe their PayPal payment cards or to enter the mobile phone number and pin associated with their PayPal accounts."
In related news, GigaOM had an interesting interview with Don Kingborough over the weekend, "…NFC is a feature, not a solution that solves problems. If your strategy is NFC today, you need a new strategy.”

Visa Recommended Practices for EMV Chip Implementation in the US

Visa logo 60pxh Based on its chip deployment experience in other parts of the world, Visa has released a set of recommended implementation practices customized for the U.S. market. Visa also clarified that its roadmap in the U.S. is about deploying the EMV chip, not mandating the use of PIN.
Visa will continue to support a range of cardholder verification methods (CVMs) with EMV chip, including signature, online PIN and no-signature for low-value, low-risk transactions. In the longer term, we expect the industry will reduce or even eliminate its use of static verification methods, such as signature and PIN in favor of new and dynamic forms of cardholder verification.

The blog post on the Visa guidance is here; the "Visa Recommended Practices for EMV Chip Implementation in the U.S." are here in PDF format.

Survey Says More than Half of Retailers Testing In-Store Tablets in 2012

Survey graphic 140pxIn its latest custom research report, RIS News looks at retailers’ incredible interest in tablets and finds that "While only 6% of respondents report that tablets are fully deployed in their stores today, another 28% are currently testing tablets in stores and an additional 31% plan to begin testing in 2012."

VeriFone Introduces New Mobile, Multimedia and Payment Solutions

Verifone logo 140pxVeriFone has announced a bevy of new products and services at the NRF 101st Annual Conference & Expo in New York, including the VeriFone MX 900 series of terminals (NFC enabled), VeriFone HQ (cloud-based terminal management and diagnostics), and VeriFone PAYware Mobile Enterprise for Tablet. VeriFone also indicated it would be doing more in digital payments and mobile wallets over the months and years to come, including support "PayPal PIN and PayPal NFC".


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