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October 31, 2012

Visa Reports Fiscal 4Q 2012 Results

Visa logo 60pxhVisa has announced financial results for the Company's fiscal fourth quarter and full-year 2012. Q42012 highlights include:
  • Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, on which fiscal fourth quarter service revenue is recognized, was a positive 6% over the prior year at $978 billion.

  • Cross-border volume growth, on a constant dollar basis, was a positive 10% for the three months ended September 30, 2012.

  • Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2012, were 14 billion, a positive 2% increase over the prior year.
A webcast replay is available on the Visa investor website.

Vantiv to Acquire Litle & Co

Vantiv logo 140pxVantiv announced that it has signed an agreement to acquire Litle & Co. for $361 million.
"eCommerce is one of the fastest growing segments of payments," said Charles Drucker, President and CEO at Vantiv. "As our clients continue to expand their online presence to meet their consumers' demands, they rely on us to meet their payments needs through our integrated processing platform. The acquisition of Litle & Co. will enable us to offer leading, integrated products in high growth markets, allowing our clients to engage with their customers across multiple channels, with better visibility and increased simplicity."

Litle & Co. is a eCommerce payment processor, providing a fully-integrated payments solution for companies that sell goods and services to consumers over the internet and through direct response marketing.

MasterCard Announces 3Q2012 Financial Results

MasterCard logo 140px MasterCard has announced financial results for the third quarter 2012.
  • Net revenue for the third quarter of 2012 was $1.9 billion, a 5% increase versus the same period in 2011. Adjusted for currency, net revenue increased 10% compared to the same period in 2011.

  • Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the third quarter of 2011, to $676 billion.

  • As of September 30, 2012, the company’s customers had issued 1.9 billion MasterCard and Maestro-branded cards.

  • Cross-border volume was up 14%.
Press release, supplemental operating results, and an accompanying investor presentation are available on the MasterCard Investor Relations website.

Payments Views - Notes from Venture Atlanta 2012

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Elizabeth McQuerry is just back from Venture Atlanta 2012, where she was looking for payments-related innovation.
Pindrop deploys location analytics, acoustic “finger printing” and other analytics to provide a holistic solution that uses your phone call to authenticate you. This technique, if successful, would turn the call center or help desk into a reasonably secure proposition over the weakest link that it can be today. The banking industry sorely needs solutions like these.

Her full post is here.

October 30, 2012

Headline News - October 30, 2012

On the web:

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

October 29, 2012

October 25, 2012

October 24, 2012

Visa names Charles W. Scharf as new CEO

Visa logo 60pxhVisa Inc. has announced that Charles W. Scharf, formerly Chief Executive Officer of Retail Financial Services for JPMorgan Chase & Co. (JPMorgan Chase), will succeed Joseph W. Saunders as Visa’s Chief Executive Officer, effective November 1, 2012. Mr. Scharf is a former director of Visa Inc. (and its predecessor Visa U.S.A). Mr. Saunders, who has served as the company’s CEO since 2007, will continue his duties as executive chairman of the company during the period of his employment, which extends to March 31, 2013. After Mr. Saunders retires, the Board intends to appoint a new non-executive independent chairperson.

October 23, 2012

U.S. Bank to Offer V.me by Visa to Its Cardholders

USBank logo 140px U.S. Bank announced that it will providers its customers access to Visa’s new digital wallet service, V.me by Visa.
“V.me presents a new service for our customers that addresses the growing consumer desire to shop online from any device with ease and simplicity,” said Clifford Cook, chief marketing officer for U.S. Bank Retail Payment Solutions.

U.S. Bank customers will be able to enroll their existing Visa and other payment card accounts, allowing them to pay online by simply entering a user name and password at checkout, whether transacting on a PC or mobile device.

Vodafone’s M-Pesa to Expand Money Transfer Routes to 35 Countries

M Pesa logo 140px Vodafone announced that next month, it will connect its M-Pesa service to a leading international remittance hub, HomeSend operated by BICS. This will allow M-Pesa customers to send and receive funds via their mobile phone accounts by connecting directly to more than 21 international money transfer businesses in 35 countries.

October 22, 2012

Isis Launches in Austin and Salt Lake City

Isis logo 140x60px Isis has announced the availability of the Isis Mobile Wallet in Austin and Salt Lake City. Consumers can visit their AT&T, T-Mobile or Verizon retail location and select from nine Isis Ready handsets, with an expected 11 additional handsets coming to market by year end.
“The launch of the Isis Mobile Wallet in Austin and Salt Lake City represents a milestone for both Isis and the mobile commerce industry,” said Ryan Hughes, chief marketing officer, Isis. “With as many as 20 Isis Ready handsets headed to market by year end, we are experiencing an unprecedented level of support for NFC and consumer choice.”

American Express, Capital One, and Chase are the card issuing partners.

TSYS to Provide Transaction-Specific Marketing Offers

Tsys logo 140px TSYS announced today an agreement with Truaxis, a MasterCard company, to make available transaction- and behavior-specific marketing offers. The new offering integrates cardholder spending patterns and behavior with an innovative platform that delivers personalized rewards, offers, loyalty incentives and other services to the end consumer.
“TSYS has the ability to work with any partner to offer our clients a variety of innovative solutions that add increased value to their cardholders,” said Paul Bridgewater, group executive of Global Product, TSYS. “Using data analysis to introduce relevant offers based on behavior is an incredibly active space for us, and we are excited about the prospects.”

MoneyGram and PayPal Collaborate on Global Cash In, Cash Out

MoneyGram logo 140px MoneyGram announced a new global agreement with PayPal that will provide PayPal’s 117 million active account holders with the option to put cash in and take funds out of their PayPal accounts at MoneyGram locations.
“This agreement is a significant milestone for MoneyGram. It represents a new level of innovation and enhances our growth into new areas of the payments industry,” said Pamela H. Patsley, MoneyGram chairman and CEO. “We believe this agreement furthers our goal of making it easy for people to send and receive money in the ways they want, wherever they are in the world, and significantly increases the possibility of e-commerce to MoneyGram consumers.”

MoneyGram’s network currently includes more than 284,000 locations in 196 countries.

Visa and Chexar Introduce Mobile Remote Deposit Capture for Prepaid Users

Visa logo 60pxh Visa and Chexar Networks announced today the launch of a network platform that will enable Visa prepaid users to deposit paper checks to their reloadable Visa prepaid card using their mobile device, by simply snapping a photo of a paper check.
“Consumers are choosing reloadable prepaid cards at an increasing rate, and for many of the same reasons that consumers embrace other electronic payment options — security, convenience and reliability,” said Hyung Choi, head of U.S. Prepaid, Visa Inc. “Mobile technology and other payment innovations are enabling us to enhance Visa’s prepaid experience and bring all the conveniences of traditional banking options to consumers who choose to use prepaid.”

First Data Launches Rapid Connect for Software Developers and Merchants

First data logo 140x60pxFirst Data has launched First Data Rapid Connect, a new technology layer that enables simplified integration to First Data.
“With Rapid Connect, it is easier than ever before for developers to partner with First Data by integrating multiple payment applications through a single interface,” said Mark Herrington, First Data executive vice president of Global Product Management and Innovation. “The solution’s powerful yet simple interface is designed to expedite development to complement First Data’s global payment reach and emerging technologies to create a truly Universal Commerce experience.”

The Rapid Connect technology layer is the single point of integration to all First Data payment types, industries and platforms. For more information, visit www.firstdata.com/rapidconnect.

October 18, 2012

American Express Releases Third Quarter 2012 Financial Results

Amex logo 140pxAmerican Express has reported financial results for the third quarter 2012, including net income of $1.3 billion, up 1% from a year ago.
“We generated solid results this quarter against the backdrop of a very uneven global economy,” said Kenneth I. Chenault, chairman and chief executive officer. “Cardmember spending rose 8% in the U.S. from a year ago and 6% globally (8% fx-adjusted). That’s a healthy pace in the current environment and an improvement from earlier in the quarter. Nonetheless, it represents slower growth than we were generating earlier in the year, a trend that we’re seeing among major card issuers."

Placecast Launches ‘Card-Linked ShopAlerts’

Placecast logo 140x60px Placecast announced the launch of ‘Card-Linked ShopAlerts’, which are mobile offers tied to nearby store locations using geofencing technology that consumers redeem by simply swiping their linked credit or debit card at the store.
“Location-based card-linked offers are the holy-grail of mobile marketing,” says payments industry expert Dickson Chu who has led initiatives at Citibank, PayPal and Living Social. “Placecast is enabling the delivery of an offer to a consumer who is near a store and highly likely to make a purchase. Retailers and brands get closed-loop performance marketing where they can measure the ROI of their mobile campaign where it counts – in the real world.”

Placecast launched Card-Linked ShopAlerts in beta with card issuers this spring. To date, over 550 merchants have delivered card-linked offers using the platform with restaurants emerging as the top-performing category.

October 17, 2012

Payments Views - Mobile Payments and QR Codes

GP Logo Horizontal 140pxOver on Payments Views, Glenbrook's Elizabeth McQuerry has posted an article entitled, "From Sweden with Love: Mobile Payments and QR Codes". Elizabeth explores the SEQR mobile payment solution from Swedish startup Seamless and compares and contrasts it with some similar systems in the U.S. market.

A Look at PayPal's 3Q2012 Financial Results

PayPal logo 140x60pxPayPal's parent eBay announced financial results for 3Q2012.
PayPal delivered a strong third quarter performance. It ended the quarter with 117.4 million active registered accounts, a 14% increase over the third quarter of 2011. Revenue increased 23% year over year and net total payment volume (TPV) grew 20% year over year to $35.2 billion.

eBay reported that the PayPal 'take rate' was 3.89% in 3Q2012, down from the prior quarter, but up 11 basis points from a year earlier. Transaction expenses were 1.07%, down 7 basis points from a year earlier. The loss rate was 0.30%, up from the prior quarter, but down one basis point from a year earlier.

Visa Estimates $109.1 Trillion in Global Commercial Spend in 2011

Visa logo 60pxhVisa has released its annual global Commercial Consumption Expenditure (CCE) index, which estimates that global commercial spending reached $109.1 trillion in 2011. This represents 12% growth from the $97.4 trillion spent in 2010 and marks the first time since Visa created the CCE in 2004 that this spending surpassed $100 trillion.
“Despite a slow, but sustained economic recovery, we continue to see healthy expansion in commercial spending,” said Tad Fordyce, head of global Commercial Solutions, Visa Inc. “Underneath this growth lies a clear opportunity for financial institutions to optimize their commercial card programs to capture more spend with electronic payments and ultimately better meet the needs of their commercial and government clients.”

TSYS Releases 2012 Research Results On Consumer Payment Preferences

Tsys logo 140pxTSYS has announced the results of its second annual nationwide primary consumer research study. More than 1,000 consumers who owned a debit card were surveyed on payment choice, perceptions of value, and what might influence them to change how they pay. Key findings include:
  • Debit cards continue to be the preferred payment type for everyday purchases, driven in part by the desire of many to manage their money on a near-daily basis.

  • Merchant discounts and offers are the most effective way to influence consumers to use a payment type more often.

  • Awareness of alternative payment accounts and methods is high, and consumers’ overall understanding of and interest in mobile payments has advanced considerably since last year.

  • Consumers continue to be focused on the security, ease of use, control and speed at check-out, and incorporating these features into new or expanded offerings will result in greater consumer adoption.

You can request a copy of the research results at www.tsys.com/debit.

Bank of America Reports 3Q2012 Financial Results

BankofAmerica logo 140pxBank of America has reported financial results for the third quarter 2012. In Consumer and Business Banking, the Card Services segment reported net income of $994 million for the quarter. The number of new U.S. credit card accounts opened year-to-date grew 8% from 2011. During the third quarter of 2012, the number of BankAmericard Cash Rewards cards increased by nearly 400,000 to a total of 1.7 million cards since the product launched in the third quarter of 2011.

October 15, 2012

InComm Acquires On-Line Strategies

InComm logo 140pxInComm has announced its acquisition of On-Line Strategies, Inc. (OLS), a software and services company focused on processing complex, large-volume and high-speed consumer-driven transactions in mission-critical environments.
"The market has shown growing demand for a comprehensive, powerful, low-cost processing engine, and given recent consolidation in the industry, we see this as a perfect time to offer our products and services to a broader customer base," said Terry Richards , CEO, OLS. "InComm was an ideal partner, considering our overlapping customer base, its reputation as a retail solutions provider in the industry and its strong balance sheet. We are thrilled to become part of the InComm team and look forward to helping its customer base significantly reduce their total cost of ownership for the processing of consumer-driven transactions."

OLS will operate as a wholly-owned subsidiary with its current management team in place, and is immediately available to provide InComm's customers and partners access to its advanced switch technology.

VeriFone Announces Expansion of SAIL Platform to International Markets

Verifone logo 140pxVeriFone announced an international expansion of the SAIL mobile payments platform with an agreement with Israel’s largest card issuer and acquirer, Isracard Ltd., to distribute SAIL encrypted card readers for iOS and Android devices and to bring smartphone based mobile payments to merchants in Israel.
“This is a step in the international deployment of the SAIL Platform,” said Bulent Ozayaz, VeriFone senior vice president, Southeast Europe & Russia. “As the leading issuer and acquirer in Israel, Isracard is the natural partner to deliver the benefits of SAIL mobile payments to business owners and merchants who can now take advantage of an easy and secure way to accept payments wherever business takes them.”

Visa Announced V.me by Visa Expansion

Visa logo 60pxhVisa and 1-800-FLOWERS.COM have announced V.me by Visa will be offered as a checkout option on the site, bringing the acceptance count up to 23 eCommerce merchants.
V.me checkout button is an option at a number of online merchants, including Rakuten Buy.com, StudentUniverse.com, MovieTickets.com, BlueNile.com, ShoeBuy.com, ZooStores.com, Cooking.com, 88Hours.com and Scentiments.com.

Visa also announced that PNC online account holders can sign up for V.me. "PNC represents the first U.S. bank to integrate with the service, reaching more than 1.2 million PNC Virtual Wallet® customer accounts, and a commitment to make V.me available to more than 6.3 million accounts in 2013."

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