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April 30, 2012

Payments Views - The NFC Debit Challenge

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Carol Coye Benson has an interesting post entitled "The NFC Debit Challenge". Carol is just back from an FTC conference on Mobile Payments and observes:

Simply put, the United States is a debit card market. I find that more-or-less affluent payments professionals still have difficulty getting their minds around this – after all, they themselves habitually use credit cards in preference to debit cards. But you can’t argue with the data. And debit issuers, still reeling from the combined impacts of the new overdraft rules and Durbin, simply don’t have any money. Certainly not enough to afford the TSM provisioning charges and wallet “rents” being proposed.

Visa Europe Confirms Launch Date for V.me Digital Wallet

Visa logo 60pxhVisa Europe has announced that its new digital wallet service, V.me by Visa, will launch to an initial group of consumers in the UK, Spain and France in autumn 2012.

Mariano Dima, Executive Vice President of Product and Marketing Solutions at Visa Europe, said: "V.me sits at the heart of Visa's future of payments. For the first time, consumers and retailers will have a streamlined online checkout experience through an acceptance mark that offers industry-leading security and, when a Visa card is used in a V.me wallet, the same protection and rights that come with any Visa card transaction.

Visa Europe also announced WorldPay as key UK development partner.

Headline News - April 30, 2012

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

April 26, 2012

What's Up With Glenbrook

GP Logo Horizontal 200pxLast payments boot camp of the spring in Palo Alto, two special focus workshops, and a virtual currency report…

Special Workshop – Payments 2012, $995
May 15, 2012: Santa Clara, CA - Russ Jones and Carol Coye Benson
An advanced workshop focusing on current industry trends and issues – including detailed explorations of PayPal, Facebook, Google, Visa, and Square. For Glenbrook Payments Boot Camp alumni only.

Payments Boot Camps – Two day “deep dive” into the industry, $2195
May 16-17, 2012: Palo Alto, CA - Jay DeWitt and Carol Coye Benson
Sign up now, as there are only a few seats left.

Special Workshop - Understanding Opportunities in B2B Payments, $699
May 18, 2012: Palo Alto, CA – Carol Coye Benson and Erin McCune
Drawing on years of work in commercial payments, Glenbrook has designed a special workshop to help payment professionals understand the current state-of-play in B2B payments.

Virtual Currency Report - $695
Glenbrook's report on virtual currency fundamentals, including a detailed look at Facebook Credits, Microsoft Points, PlaySpan Ultimate Points, Tencent Q Coin, Second Life Linden Dollars, World of Warcraft Gold, various Zynga currencies, and the experimental BitCoin digital currency.

O2 Wallet Brings Mobile Money to UK

O2 logo 140pxO2 has announced the launch of the O2 Wallet, "a seamless and secure digital wallet service that will deliver the benefits of mobile money to more UK consumers than any other product or service currently available."

James Le Brocq, Managing Director at O2 Money, said: “O2 Wallet delivers the benefits of mobile money to more UK consumers than any other product or service currently available. With O2 Wallet, it’s easier to transfer money, track expenditure and pay swiftly and securely, all using your mobile. We believe it will transform the way people manage their finances and spend money.”

Visa Europe provides the payment underpinnings of the O2 Wallet. See the O2 Wallet webiste for more information.

April 25, 2012

PayNearMe Introduces First Mobile 'Cash' Payment System

Paynearme logo 140pxPayNearMe has announced the availability of a new mobile cash payment system.

"Since its inception, PayNearMe has offered the most effective mechanisms for companies to serve cash consumers, including the un- and underbanked," said PayNearMe CEO Danny Shader. "By adding a fully mobile payment option to our platform, we're not only providing businesses with the ability to better serve their existing customers, but we're giving them a foundation from which they can expand to reach new audiences, such as mobile gamers and the next generation of consumers."

PayNearMe also announced that it has seen 30% plus month-over-month transaction growth over the last 16 months.

April 24, 2012

The Biggest Opportunity in Payments?

GP Logo Horizontal 140pxJoin the Glenbrook team on May 18th to explore “Opportunities in B2B Payments” – what some of us at Glenbrook think is the biggest unrealized opportunity in the industry.

This small-group session is a deep dive into B2B payments, including a focus on the underlying causes for the slow migration from checks and a close look at some innovative approaches in the market. The session is being held in Palo Alto, California from 8AM-3PM. More information, including a detailed agenda, is on our website. Register now!

April 23, 2012

April 19, 2012

Dynamics Introduces 'ePlate' Card and 'Experience' Ecosystem

Dynamics logo 140x60pxDynamics Inc. has announced the ePlate™ dual-button payment device that gives consumers the ability to change the experience they earn with each purchase by pressing different buttons on the device.

"Dynamics' vision is to change the world forever without changing the way the world works," said Jeff Mullen, CEO of Dynamics. "Today, Dynamics once again delivers on that promise. The ePlate™ device gives the user the ability to personalize their payment experience in a way never before envisioned while earning exclusive content across the world's first developer ecosystem for payments. Now, the experience of every credit card in the world can be captured in a single payment device that is issued by a single issuer. And, experience providers can use consumer-approved payment data and a new revenue stream of 25bps per transaction to develop new functionality and experiences that cannot be offered on anywhere else."

The company also unveiled a large and growing 'experience' application ecosystem with a developer toolkit that allows developers, such as charities, brands, retailers, and gaming companies, to create unique, branded experiences for ePlate™ consumers.

Bank of America Reports 1Q2012 Financial Results

BankofAmerica logo 140pxBank of America has reported financial results for the first quarter 2012. Starting this quarter, the former 'Card Services' business segment has been merged into the new 'Consumer and Business Banking' segment.

Revenue of $7.4 billion was down $1.0 billion from the year-ago quarter, driven by lower noninterest income of $523 million primarily from the implementation of debit card interchange fee rules as a result of the Durbin Amendment, and a decrease in net interest income of $521 million, primarily from lower average loans and yields. Provision for credit losses, primarily within the Card Services business, increased $216 million from the year-ago quarter to $877 million, reflecting lower reserve reductions in the current period.
The number of new U.S. consumer credit card accounts opened in the first quarter of 2012 was up 19% from the year-ago quarter, and more than 1 million BankAmericard Cash Rewards cards have been issued since its introduction in the third quarter of 2011.

Headline News - April 19, 2011

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

April 18, 2012

A Look at PayPal's 1Q2012 Financial Results

PayPal logo 140pxPayPal's parent eBay announced financial results for 1Q2012.

PayPal ended the quarter with 109.8 million active registered accounts, a 12% increase over the first quarter of 2011. PayPal revenue increased 32% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption. PayPal's net total payment volume (TPV) grew 24% year over year to $34 billion.

eBay reported that the PayPal 'take rate' rose to 3.87% in 4Q2011.

American Express Releases First Quarter 2012 Financial Results

Amex logo 140pxAmerican Express has reported financial results for the first quarter 2012, including first quarter net income of $1.3 billion, up 7% from $1.2 billion a year ago.. Kenneth I. Chenault, chairman and chief executive officer, American Express commented:

“Higher cardmember spending, excellent credit metrics and disciplined expense management helped us to start 2012 with record first-quarter earnings and revenues,” said Kenneth I. Chenault, chairman and chief executive officer. “Spending on the American Express network rose 12 percent, remaining strong throughout the quarter, both in the U.S. and internationally. Credit quality continues to be among the best we have ever experienced, and our lending portfolio continued to grow at moderate levels.

Mobile Payments: What's In It for Consumers?

Kansas city fed logo 140x60pxFumiko Hayashi, a senior economist with the Kansas City Fed, has published an article entitled "Mobile Payments: What's In It for Consumers?"

"The main demand-side barrier has been the uncertain value of mobile payments to U.S. consumers. In some other countries, there have been obvious advantages to consumers of using mobile payments. Mobile payments were adopted rapidly in Japan as a convenient way of paying for mass transit. In some African countries, mobile payments gained traction because consumers lacked access to other noncash forms of payment such as checks or credit cards. Neither factor is as important in this country, raising the question of how U.S. consumers would benefit from mobile payments."
A full copy of the article is available (PDF) on the bank’s website at www.KansasCityFed.org.

April 17, 2012

MasterCard Enhances Shopping Experience Through “Daily Deals”

MasterCard logo 140pxMasterCard has announced plans to expand its support of issuer and merchant efforts to meet Americans’ desire for increased shopping value through relevant “daily deal” offers.

“Increasingly, consumers are looking for a great deal and savings– whether that is in paper coupons or through digital channels that create a more enhanced holistic shopping experience,” said Mario Shiliashki, group head, U.S. Markets emerging payments lead, MasterCard. “Our collaboration with partners like Local Offer Network will make MasterCard the ‘go-to’ offers solution for merchants and issuers looking for a stronger connection with our cardholders.”

Voltage Security, Ingenico Extend Data-Centric Security to Mobile Payments

Ingenico logo 140x60pxVoltage Security and Ingenico announced that the two companies are expanding their partnership to enable a new level of security in the rapidly emerging area of mobile payments.

"Based on our existing partnership with Voltage, our customers enjoy security and ease-of-use in our devices with the benefit of Voltage SecureData Payments already integrated with Ingenico's latest Telium platform," said Greg Boardman, senior vice president, Products and Development, Ingenico, North America. "Now, by integrating this innovative technology into our iSMP smart mobile payment solution, we're privileged to take this level of advanced security into the critical area of mobile payments."

April 16, 2012

JPMorgan Chase - Card Services 1Q2012 Financial Results

Chase logo 140pxJPMorgan Chase has reported financial results for the first quarter 2012. Highlights include:

  • Net income was $1.2 billion, a decrease of $351 million, or 23%, compared with the prior year. The decrease reflected a higher provision for credit losses, driven by a lower reduction in the allowance for loan losses compared with the prior year.

  • Card Services net revenue as a percentage of average loans was 12.22%, compared with 12.18% in the prior year and 12.26% in the prior quarter.

  • Credit Card sales volume (excluding commercial cards) was $86.9 billion, up 12% compared with the prior year and down 7% compared with the prior quarter; excluding the impact of the Kohl’s portfolio sale, sales volume was up 15% compared with the prior year.

Merchant processing volume was $152.8 billion, up 22% from the prior year and flat compared with the prior quarter; total transactions processed were 6.8 billion, up 21% from the prior year and flat compared with the prior quarter.

Citi Reports 1Q2012 Financial Results

Citi logo 140pxCitigroup has released financial results for the first quarter 2012. In its North American Consumer Banking sector, Citi reported that its Citi-branded cards revenues declined 6% to $2.1 billion versus the prior year period. Citi-branded cards loans also declined 2% from first quarter 2011.

NACHA Reports ACH Purchase Volume of $33.9 Trillion in 2011

NACHA logo 140pxThe ACH Network handled over 20.2 billion transactions in 2011, up 4.35% over 2010, according to new statistics released by NACHA. ACH payment volume was reported as $33.91 trillion.

“These statistics show that more and more consumers and businesses are making the conscious decision to use electronic payment options over paper checks or cash,” said Janet O. Estep, president and CEO of NACHA. “As advancements within the payments industry continue, ACH payments also continue to adapt to meet various needs of both consumers and businesses alike.”

April 12, 2012

U.S. Bank Offers Customers FreeMonee Gifts from National Retailers

USBank logo 140pxU.S. Bank, in partnership with FreeMonee Network, has announced that it is now offering FreeMonee Gifts.

“U.S. Bank is continually looking for ways to reward our loyal cardholders,” said Clifford Cook, chief marketing officer for U.S. Bank Retail Payment Solutions. “FreeMonee Gifts are a simple and safe way for us to give free cash incentives to our cardholders to use at their favorite major retailers.”

eCommerce Merchant Payments Management - Organizing for Success

GP Logo Horizontal 140pxGlenbrook has published a new research brief on best practices in the payments organizations of eCommerce merchants.

The survey was conducted in response to the many questions we've heard from merchants who are trying to benchmark their organizations against other merchants. One of our specific objectives was to discover how many merchants are combining the Payments and Fraud and Risk Management organizations, and if this has been beneficial.

The brief is based on the results of a survey done earlier this year that examined how eCommerce merchants organize their Payments and Fraud Risk Management (FRM) organizations. The research brief is available at no cost and can be downloaded here.

DocuSign and PayPal to Offer Electronic Signature and Payment Transactions

Docusign logo 140x60pxDocuSign announced instant payments through PayPal for any DocuSign transaction.

“DocuSign Payment combines two trusted industry standards – DocuSign eSignatures and PayPal Payments – into a single transaction process,” said Keith Krach, chairman and CEO of DocuSign. “This combination of leading cloud services enhances the DocuSign customer experience by offering even more complete, convenient, and better transaction services.”

DocuSign Payment helps companies get signatures on contracts, agreements, and other legally binding documents -- and now collect payment simultaneously.

OneID Raises $7 Million in Series A Funding

Oneid logo 140x60pxOneID announced it has raised $7 million in funding led by Khosla Ventures and North Bridge Venture Partners, and names a new CEO.

“Today’s investment culminates a year of work by our executive in residence, Alex Doll, to investigate innovative approaches to address the digital identity problem. His experience building successful companies, combined with founder Steve Kirsch’s vision gives us great confidence,” said Vinod Khosla, Founder of Khosla Ventures. “We’re looking forward to seeing leading sites adopt the OneID service and make it available to millions of customers this year. We believe OneID will attract the most forward-thinking businesses to offer a more secure alternative to the way we sign in to sites and share personal information.”

In addition to single sign-on support, 'OneID CheckOut' provides wallet-like payment functionality. More information is available at www.oneid.com.

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