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July 30, 2012

July 25, 2012

Visa Reports Fiscal 3Q 2012 Results

Visa logo 60pxhVisa has announced financial results for the Company's fiscal 3Q 2012 which ended June 30, 2012. Highlights include:
  • Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, was a positive 6% over the prior year at $979 billion.

  • Cross-border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2012.

  • Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2012, were 13.1 billion, a positive 1% increase over the prior year.

A webcast replay is available on the Visa investor website.

payvia Launches Bill-to-Carrier Mobile Payments Service

Payvia logo 140x60px payvia announced the launch of its next generation mobile payments platform and latest direct carrier billing agreements with Sprint and T-Mobile USA.
"We are excited to unveil our new mobile payments solution delivering a convenient payment option that complements merchant checkouts to reduce abandoned transactions, increase conversions and deliver more paying customers," said Darcy Wedd, President of payvia. "As we round out our remaining carrier partnerships, we are proud to announce our latest direct billing agreements with Sprint and T-Mobile USA."

Website is at www.usepayvia.com. TechCrunch has a nice background story on the company.

Discover Expands Rewards Redemption Options for Online Purchases

Discover logo 140pxDiscover has announced it has joined together with RewardsPay, Inc. a consumer payment service, to provide cardmembers the ability to use Cashback Bonus to make online purchases for Apple iTunes, Facebook codes and at Disney’s Club Penguin.
“Giving Discover cardmembers the ability to pay for purchases directly with their Cashback Bonus is a simple, straightforward way for us to enhance their redemption experience,” said Dana Traci, vice president of rewards at Discover. “As we have seen with our successful Amazon partnership, where Discover cardmembers can pay with Cashback Bonus at point-of-sale on Amazon.com, consumers appreciate the ability to spend their Cashback Bonus on items they want at any time, offering them even greater control of how they choose to use their rewards.”

July 23, 2012

Onebip Launches One-Click Mobile Purchasing For Frictionless Mobile Commerce

Onebip logo 140x60pxOnebip has announced a single-click purchase feature for its mobile payment solution, Onebip Mobile Browser.
Onebip uses an encrypted identification process to immediately recognize the user’s phone number, which provides a secure, automatic authentication so that the user does not have to input any credentials such as a password or PIN. The user only needs to click once on the Onebip icon to confirm their transaction: no further actions are needed. The purchase is then charged directly to the user’s mobile phone bill, meaning that even consumers without a credit card can use their phones to browse and buy.

Onebip is compatible for use with both pre-paid and post-paid mobile contracts.

Plastic Jungle, InComm, and Zeevax Announce Partnership

PlasticJungle logo 140pxPlastic Jungle, InComm, and Zeevex announced a strategic partnership that will allow consumers to exchange gift cards for Zeevex shopping power.
"We are constantly looking for new ways to create more choice and flexibility for our consumers, and this partnership will make it easy for users to turn retail gift cards into limitless purchasing power for online games and more," said Bruce Bower, CEO of Plastic Jungle. "This partnership will also help online gaming and digital content publishers capture value from the more than $100 billion gift card industry."

Visa to Showcase Payments Innovations at the London 2012 Games

Visa logo 60pxh Visa has announced that during the London 2012 Games it will showcase its latest payment innovations in mobile payments, contactless payments, and mobile prepaid.
“Electronic payments play a crucial role in facilitating tourism and meeting the needs of consumers on the go during a world sporting event such as the Olympic Games, making this an unique opportunity to showcase how technology is changing the way people shop, pay and get paid around the world,” said Jim McCarthy, Head of Products at Visa Inc. “This summer we will be demonstrating the future of payments in London – a future where most consumers will rely on mobile devices, tablets and PCs to manage their daily financial lives.”

Bank of America Begins Rollout of Chip Credit Cards to Consumers

BankofAmerica logo 140pxBank of America announced that it is rolling out chip technology (EMV) on many of its consumer credit cards.
The bank will include the chip technology in all newly issued Merrill Lynch credit cards, U.S. Trust Accolades, BankAmericard Travel Rewards, BankAmericard Privileges, and Virgin Atlantic travel credit cards. The bank also will upgrade existing customers in these card programs who have been identified as international travelers.

The bank’s new chip-enabled credit cards will continue to prompt customers to sign for transactions just as they would today. The cards also include the traditional magnetic stripe, which is used by U.S. merchants.

July 19, 2012

July 18, 2012

A Look at PayPal's 2Q2012 Financial Results

PayPal logo 140x60pxPayPal's parent eBay announced financial results for 2Q2012.
PayPal ended the quarter with 113.2 million active registered accounts, a 13% increase over the second quarter of 2011. PayPal revenue increased 26% year over year, driven primarily by increased penetration on eBay as well as continued merchant and consumer adoption and strong growth in Bill Me Later. PayPal's net total payment volume (TPV) grew 20% year over year to $34.5 billion.

eBay reported that the PayPal 'take rate' rose to 3.94% in 2Q2012, up 21 basis points from a year earlier. Management also indicated that it expected PayPal mobile to transact $10 billion in volume in 2012.

Bank of America Reports 2Q2012 Financial Results

BankofAmerica logo 140px Bank of America has reported financial results for the second quarter 2012.
Noninterest income declined $510 million to $2.6 billion, primarily from the implementation of debit card interchange fee rules as a result of the Durbin Amendment and a gain on the sale of certain portfolios in the second quarter of 2011. Provision for credit losses, primarily within the Card Services business, increased $731 million from the year-ago quarter to $1.1 billion as portfolio trends began to stabilize. Net charge-offs declined to $1.7 billion in the second quarter of 2012 from $2.6 billion in the year-ago quarter.
The number of new U.S. credit card accounts opened in the second quarter of 2012 was up 7% from the year-ago quarter. During the second quarter of 2012, the number of BankAmericard Cash Rewards cards grew by 37% to 1.4 million.

MasterCard Business Network Gives SMBs the Purchasing Power of Big Business

MasterCard logo 140px MasterCard has announced availability of the MasterCard Business Network to provide SMBs with purchasing discounts, enhanced T&E capabilities, and streamlined expense management.
“Smaller businesses don’t think of themselves as small, they just haven’t finished growing yet,” said Ed Glassman, group executive, Global Commercial Products, MasterCard Worldwide. “Through one, integrated site, the MasterCard Business Network is designed to help them grow by delivering some of the critical infrastructure capabilities that can help them save time and money, whether they are purchasing supplies, booking travel, entertaining clients or simply trying to get a handle on their overall expense management.”

The site, www.mastercardbusinessnetwork.com, is powered by Rearden Commerce’s Deem commerce platform.

American Express Releases Second Quarter 2012 Financial Results

Amex logo 140pxAmerican Express has reported financial results for the second quarter 2012, including net income of $1.3 billion, up 1% from a year ago.
“Consumer, small business and corporate cardmember spending, along with the business volumes generated by our network of bank partners, remained healthy despite a very uneven economy,” said Kenneth I. Chenault, chairman and chief executive officer. "Overall cardmember spending rose 7%, or 9% adjusted for foreign currency translations. That’s slower than the increases we’ve seen in the recent quarters, but it comes on top of a very strong performance a year ago, and continues to grow faster than most of our large issuer competitors.

July 17, 2012

Openbucks Raises $4.8 Million For its Gift Card Payment Network

Openbucks logo 140x60px Openbucks announced the closing of a $4.8 million Series A funding round led by Yahoo co-founder, Jerry Yang, with the participation of Terry Semel, Greycroft Partners, BV Capital, Clearstone Ventures, Morado Ventures, Novel TMT Ventures, Inspiration Ventures, CrunchFund, SV Angel and TiE Angels.
The Openbucks Gift Card Payment Network enables consumers who don't have credit cards or a bank account, or who prefer to keep their financial information private, to pay for online goods and services using the gift cards of major retailers. The regular gift cards of Subway, CVS Pharmacy, Burger King, Shell, Circle-K and CITGO are now accepted through the Openbucks Network as a form of payment at thousands of online checkouts. This provides millions of unbanked and underbanked consumers, including teenagers, with a free, safe and convenient way to pay online using trusted brands.

JPMorgan Chase - Card Services 2Q2012 Financial Results

Chase logo 140px JPMorgan Chase has reported financial results for the second quarter 2012. Highlights for Card Services include:
  • Net income of $1.0 billion, a decrease of $80 million, or 7%, compared with the prior year. The decrease was 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 11.91%, compared with 12.60% in the prior year and 12.22% in the prior quarter.

  • Credit Card sales volume (excluding commercial cards) was $96.0 billion, up 12% compared with the prior year and 10% compared with the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since 1Q082.

Merchant processing volume was $160.2 billion, up 17% from the prior year and 5% from the prior quarter; total transactions processed were 7.1 billion, up 20% from the prior year and 4% from the prior quarter.

Tapingo Secures $3.5 Million Funding From Carmel Ventures

Tapingo logo 140x60pxTapingo, "a provider of a mobile commerce platform enabling students to use their phone to order and pay for food and goods at merchants on and around college campuses", announced that it has secured its first institutional financing round from Carmel Ventures.

Citi Reports 2Q2012 Financial Results

Citi logo 140px Citigroup has released financial results for the second quarter 2012. In its North American Consumer Banking sector, Citi reported that its Citi-branded cards revenues declined 8% to $2.0 billion versus the prior year period. Citi-branded cards loans also declined 3% from second quarter 2011

July 13, 2012

Merchants Reach $7.25B Interchange Settlement with Visa and MasterCard

MasterCard logo 140pxVisa logo 60pxh Visa and MasterCard have announced that they, and several major US issuers, have reached a $7.25 billion class-action settlement with US merchants. Visa's statement is here; MasterCard's statement is here. Specific terms of the agreement include:
  • Distribution to class merchants of an amount equal to 10 basis points of default interchange across all credit rate categories for a period of eight consecutive months, which otherwise would have been paid to issuers and which effectively reduces credit interchange for that period of time.

  • Modifications to card company rules to permit retailers to impose a surcharge on credit transactions subject to a cap and a level playing field with other general purpose card competitors. The rule changes on surcharging likely would be implemented in early 2013.

  • Agreement that card companies will meet with merchant buying groups that seek to negotiate interchange rates collectively (e.g., independent drug stores).

The card-issuing banks participating in the settlement include JPMorgan Chase, Bank of America, Citibank, Wells Fargo, Capital One among others.

National Association of Convenience Stores (NACS), one of the class plaintiffs in the lawsuit, announced that they have rejected the proposed settlement.

July 12, 2012

Punchcard and Wipit Partner to Provide Mobile Loyalty Solution

Punchcard logo 140x60pxPunchcard announced it is partnering with mobile payment provider Wipit so that business owners can create loyalty and rewards programs for consumers who use cash as their preferred method of payment.
Instead of “checking in,” Punchcard works at the “checkout” giving users rewards for frequenting their favorite businesses and replaces the stacks of individual loyalty cards people have been expected to carry in their wallet and have available at the time of purchase. Punchcard is easy to use: simply shop at any one of the 15 million local retail businesses where Punchcard works, take a photo of your receipt with the Punchcard app to verify your purchase and earn “punches” on a punch card for that business. Rack up the punches and earn free rewards or cash back for being a loyal customer of that business.

LevelUp Switches Business Model From Payments to Marketing

Levelup logo 140pxLevelUp, the mobile payments + loyalty startup, has announced it is switching its revenue source from payment processing fees to a 35% cut on the marketing spend required to drive the purchase.
"The process of moving money is now becoming a commodity, a de facto service. We're entering an era in which merchants should get -- and will eventually only pay for -- value above and beyond the transaction," said Seth Priebatsch, Chief Ninja of LevelUp. "LevelUp is skipping this 'race to the bottom' happening between the major payments companies and leading the way by providing real value beyond the transaction."

July 10, 2012

July 09, 2012

July 03, 2012

Cielo Acquires Merchant e-Solutions (MeS)

Cielo logo 140pxCielo, the largest merchant acquirer in Brazil, has announced that it has entered into a definitive agreement to acquire Merchant e-Solutions (U.S.) for $670 million.
The advanced technology developed by MeS will provide Cielo with greater process automation (back office), flexibility and agility in developing new products and, consequently, will enable a lower time-to-market for new products and services. In addition, with the acquisition of MeS, Cielo gains a physical presence in Silicon Valley, a hotbed of technological innovation and currently the epicenter of the digital revolution in payments.

Recap - Google I/O Developers Conference

Google logo 140pxGoogle last week made two payment-related announcements at the Google I/O Developers Conference about Google Wallet.
  • Google Wallet for Digital Goods. Google has renamed the In-App Payments API to 'Google Wallet for Digital Goods' and added support for recurring subscriptions and small ticket price optimization; merchants will pay the lesser of 5% or 1.9% + $0.30 depending on ticket size. Details are on the Google Commerce blog.

  • Save-to-Wallet. Google announced the Save-to-Wallet API with two variations: one to save merchant offers to the wallet and one to save payment cards to the wallet. Google says, "The Save-To-Wallet API is part of the vision for Google Wallet to be the one-stop-shop for holding everything you'd carry in a regular wallet." Specifics on the Save-To-Wallet Offer API are available now. No details were provided on the Save-To-Wallet Payment Cards API.

The Save-to-Wallet APIs are announced in a session called "Introducing Google Wallet Cloud APIs". See this video to see what was said and demonstrated.

Billeo Makes Online Payments a Zip With ZipThru Pay and Buy

Billeo logo 140pxBilleo has announced its ZipThru Pay and ZipThru Buy services, which allow Billeo's business customers to simplify and speed up the online shopping and bill pay payment experience.
From paying a bill to purchasing an item online, the ZipThru services allow businesses to provide consumers an easy and transparent online or in-app payment process that takes just seconds to complete. By leveraging Billeo's powerful Active-Context Platform™ and rich biller and merchant directories, the ZipThru services connect Billeo's business customers with billers and merchants that accept card payments online. The technology navigates thru the payment or checkout process, auto-fills the payment details and captures the payment confirmation -- simplifying the payment and purchase processes to one or two clicks.

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