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August 09, 2013

American Express Holds Semi-Annual Financial Community Meeting

Amex logo 140pxAmerican Express held one of their semi-annual Financial Community Meetings yesterday in New York. The webcast and slides are available online.

Following a review of business results, competitive comparisons and growth opportunities, Dan Schulman, Group President - Enterprise Growth, reviewed the work of his organization - describing the group's mission as: "Breathe Life into the Words 'Financial Inclusion'" and its vision as "Explode the Paradigm: 'It's Expensive to be Poor'" - noting that
"moving money is an individual's right, not a privilege." He went on to discuss the Serve platform and how it's being used for multiple products such as American Express Prepaid, Serve, and Bluebird with Walmart and their success in growing customer relationships.

Headline News from - August 9, 2013

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  • Coming Soon!

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

August 08, 2013

American Express Serve, Isis Announce Plan to Link Mobile Wallet Platforms

Amex logo 140pxIsis logo 140x60pxAmerican Express and Isis have announced that they will introduce American Express Serve to the Isis Mobile Wallet in a new co-branded account that will be offered in every Isis Mobile Wallet as a part of a nationwide launch later this year. By adding American Express Serve to the Wallet, customers will be able to pay bills online and send money to friends and family. They will also be able to add cash to their American Express Serve account or fund it using an existing bank account, any credit or debit card or through direct deposit.

“Linking the platforms will allow millions of people to conveniently and inexpensively manage and move their money,” said Dan Schulman, group president, Enterprise Growth, American Express. "From the palm of your hand, consumers including those without access to traditional bank accounts or credit can have access to everyday financial services. And our combined solution works in today’s retail environment, and in the emerging ‘tap to pay’ point of sale ecosystem.”

“Our relationship with American Express Serve underscores our mutual commitment to providing consumers with choice and value in mobile payments,” said Michael Abbott, chief executive officer, Isis. “We learned through our pilot that customers love the convenience of tap and pay with the ability to manage their payments and loyalty programs from one app. By adding American Express Serve to the Isis Wallet, we can immediately provide millions of consumers the opportunity to participate in mobile commerce as we continue to enrich the consumer experience.”

Customers will be able to use eligible American Express Serve accounts within the Isis Mobile Wallet to:
  • Load funds to their American Express Serve account from a variety of sources, including a bank account, debit, credit or charge card, or by receiving money from another American Express Serve account
  • Load cash to their American Express Serve account
  • Tap and pay with their phone at any NFC enabled retail location that accepts American Express
  • Use their American Express Serve Card at any merchant that accepts American Express Cards, both online and offline
  • Pay bills electronically
  • Make person to person (P2P) payments to other American Express Serve accountholders
  • Add funds using direct deposit

According to the FDIC, nearly 70 million Americans do not have bank accounts or access to credit. Many of these Americans are paid in cash and must rely on expensive services to pay their bills or send money to friends or family. By adding alternatives to traditional banking services at a low cost to the Isis and American Express Serve experience, American Express Serve is now able to provide a unique service proposition to millions of Americans.

Headline News from - August 8, 2013

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

August 07, 2013

Bitcoin's Growth Not With Pains

PaymentsViews logo 140pxOver on, Glenbrook's George Peabody shares his insights from attending last week's Inside Bitcoins conference in New York City in a post titled Bitcoin's Growth Not Without Pains.

As tools for moving money, these math-based mechanisms have much to offer in terms of speed, security, and cost. It will be a balancing act to maintain those advantages while complying with current and potential regulation.

Fed Reports Revolving Credit in US Declined in June 2013

FedThe Federal Reserve's latest G.19 Consumer Credit report is out and it reports a 3.8 percent decline (annual rate) in revolving consumer credit - after a near record increase the prior month. The amount of revolving credit outstanding in June was $853.6 billion, down from $856.3 billion in May.

Headline News from - August 7, 2013

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

August 06, 2013

Wells Fargo and American Express Announce Credit Card Issuing Partnership

Amex logo 140pxWells fargo logo 140pxWells Fargo and American Express have announced a new credit card issuing partnership - calling it "a new chapter of partnership that will see Wells Fargo issuing new credit cards accepted on the American Express network." Wells Fargo said it will make the cards available in the marketplace nationwide by mid-2014. Financial terms of the agreement were not disclosed.

“We are delivering on our strategy to expand our credit card business,” said John Stumpf, Chairman and CEO of Wells Fargo. “Our goal is to offer Wells Fargo customers a suite of cards that help them meet their financial goals. We’re proud to have American Express as a partner in this effort – a great company with a proven brand for customer service.”
Avid Modjtabai, head of Wells Fargo’s Consumer Lending Group, added,
“We want to give the customers who already carry our card – and the ones who don’t yet – greater rewards and benefits for having a Wells Fargo card in their wallets. The breadth of our offerings, our strong retail network and the power of this new partnership with American Express position us well to continue to deliver compelling choices and experiences to our customers.”
Wells Fargo customers will be able to apply for the cards through mail, online, phone and 6,000 retail store locations. Wells Fargo will conduct a pilot program for customers in select U.S. markets starting in the third quarter of 2013, with a full scale launch in the first half of 2014. The new cards will be accepted on the American Express global merchant network.
“Given the fact that two of our founders were Henry Wells and William Fargo, this partnership is especially significant to all of us at American Express,” said Kenneth I. Chenault, Chairman and CEO of American Express. “Wells Fargo is an outstanding addition to our global network of card-issuing partners. We look forward to starting a new journey with them and to delivering premium value and service to Wells Fargo’s customers.”

“Wells Fargo is one of the most respected financial institutions in the U.S., and we are delighted to bring the power of our brands together to offer Wells Fargo’s customers an exciting new suite of high-value products that will provide rich rewards and benefits together with remarkable customer service,” said William Stredwick, senior vice president, Global Network Partnerships, North America, American Express. “In doing so, we can support Wells Fargo’s efforts to grow their credit card business and further extend the benefits of the American Express network.”

As part of the card-issuing partnership, American Express said it is providing its Partner Advantage capabilities and services to support Wells Fargo in developing a suite of products that will offer a superior set of experiences, exclusive benefits and customized offers from the American Express network, both online and offline. Separately, LoyaltyEdge from American Express will assist in the design of a new Wells Fargo loyalty program by offering a broad range of merchandise and gift cards that Wells Fargo’s consumer credit customers will be able to redeem with their points.

Alliance Data Announces Agreements With PayPal

PayPal logo 140x60pxAlliance Data 140pxAlliance Data Systems has announced that its Retail Services business, which manages more than 120 branded credit programs, has come to multiple agreements with PayPal.

Under a multi-year agreement with PayPal, Alliance Data will become an issuer for Bill Me Later® credit products and will maintain a partial interest in the receivables generated under the program.

Additionally, Alliance Data and PayPal have agreed to collaborate to support PayPal's offline expansion, which is enabling PayPal to be accepted in more physical merchant locations across the U.S. Consumers who hold a branded private label credit card from Alliance Data's partners that accept PayPal payments will be able to add their branded card through PayPal and continue to use it as their preferred method of payment for PayPal purchases made with those brands when shopping online, in-store or on a mobile device.

Alliance Data's private label partners – which include many top-tier specialty retailers – will have the opportunity to begin adding their branded card programs into PayPal in early 2014.

"We're excited to work with Alliance Data Retail Services, a leader in providing highly successful branded credit programs for numerous marquee retailers, and a company whose reputation for delivering excellence makes them a great choice," said Don Kingsborough, vice president, Retail Services at PayPal.

"Offering our mutual retail clients the convenience and security of PayPal allows them to reinforce their relationships with consumers and will help them sell more."

"PayPal is a recognized powerhouse in the payments world, widely known for its innovative products, services and visionary thinking, and we are thrilled to have the opportunity to work with them to bring smart credit solutions to their customers," added Melisa Miller, president of Alliance Data Retail Services.

"The relationship between PayPal and Alliance Data marks our strategic entry into a new ecosystem of customer transactions while continuing to drive business growth for our partners' private label credit and loyalty programs. We look forward to working with PayPal and exploring even more opportunities to collaborate in the future."

Headline News from - August 6, 2013

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

August 05, 2013

VeriFone Introduces VeriFone Point Payment-as-a-Service Offering to US Market

Verifone logo 140pxVeriFone has announced the launch of VeriFone Point, a payment-as-a-service solution that the company says simplifies the complexities of payment for the company’s direct merchant customers and channel partners in the U.S. The VeriFone Point solution features a cost-predictable subscription model for obtaining and maintaining all the components of a complete payments solution including software, management services, device acquisition, and maintenance, which enables these organizations to spend less time and money on payments and devote more resources to improving their business.

“Merchants and service providers don’t want to deal with the complexities of managing PCI, EMV and emerging payments and mobile wallet technologies. They want to focus on serving their customers and growing their business,” said Jennifer Miles, president, VeriFone Americas.

“VeriFone Point offers these organizations a way out of the complexity of business by providing a flexible and reliable toolkit that is managed by the company they trust for payments.”

The VeriFone Point solution utilizes a secure network integration between the VeriFone device and payment processor systems, enabling merchants and service providers to quickly and easily integrate the latest mobile wallets, emerging payments technologies, and EMV specifications, again reducing the scope and expense of compliance and recertification.

Additionally, with this integration, data can be encrypted, securely routed for processing to the merchant’s acquirer and tokenized, decoupling the actual payment transaction from the merchant’s POS systems. According to VeriFone, "this process significantly reduces the risk of costly and embarrassing data breaches, and vastly reduces the scope and expense of PCI compliance and recertification."

Pricing is subscription-based, enabling each organization to better predict the current and future costs of managing payments. The VeriFone Point solution is now available to U.S. merchants and service providers.

Headline News from - August 5, 2013

On the web:

  • We can’t make good coffee, but we can simplify payments - VeriFone Blog - "By leveraging many of the same technologies that helped to catalyze payment innovation, combined with forward-looking products that simplify the complexity inherent in payments, VeriFone is changing the model by which its customer and partners leverage new technology while easing the burden of adoption and deployment."
  • Mobile Chat Has a Place in Every Banking App - American Banker BankThink (Simon Zhen) - "Mobile chat, which is essentially text messaging with a bank associate, is less formal than an email and less time-consuming than a phone call."
  • Tune In to TMG’s New Podcast: The Future of Payments - TMG Blog - "As new competitors and new technology permeate the payments industry, financial institutions (FIs) must look for solutions to keep their brands relevant and attractive to consumers."

On the wires:

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!


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