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« April 8, 2012 - April 14, 2012 | Main | April 22, 2012 - April 28, 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

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.”


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