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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

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 by Visa Expansion

Visa logo 60pxhVisa and 1-800-FLOWERS.COM have announced by Visa will be offered as a checkout option on the site, bringing the acceptance count up to 23 eCommerce merchants. checkout button is an option at a number of online merchants, including Rakuten,,,,,,, and

Visa also announced that PNC online account holders can sign up for "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 available to more than 6.3 million accounts in 2013."

JPMorgan Chase - Card Services 3Q2012 Financial Results

Chase logo 140pxJPMorgan Chase has reported financial results for the third quarter 2012. Highlights for Card Services include:
  • Net income was $954 million, an increase of $105 million, or 12%, compared with the prior year. The increase was driven by lower noninterest expense and lower provision for credit losses, partially offset by lower net revenue.

  • Net revenue was $4.7 billion, a decrease of $52 million, or 1%, from the prior year. Net interest income was $3.4 billion, down $78 million, or 2%, from the prior year.

  • Credit Card sales volume (excluding commercial cards) was $96.6 billion, up 11% compared with the prior year and 1% compared with the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since the first quarter of 2008

Merchant processing volume was $163.6 billion, up 18% from the prior year and 2% from the prior quarter; total transactions processed were 7.4 billion, up 21% from the prior year and 4% from the prior quarter.


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