Payments News - from Glenbrook Partners

A Look at Accepting Credit Cards on iPhones

Payments News Editor — Tue, 09 Feb 2010 11:01:16 -0800

In an article titled "iPhone credit card swipe war heats up", Jessica Bruder writes for CNNMoney.com about several new approaches to enable iPhones to become point-of-sale devices for payment card acceptance: Square, VeriFone Payware Mobile, and Mophie - among others.

Bruder writes: "They're battling each other for the hearts -- and wallets -- of mobile merchants, promising an improvement over the clunky, hardwired credit card terminals that have been a staple of brick-and-mortar commerce for decades."

NFC Forum Forges Links with EMVCo, GSMA and Smart Card Alliance

Payments News Editor — Tue, 09 Feb 2010 10:39:41 -0800

The NFC Forum has announced it has formed liaisons with three industry-leading organizations key to the NFC global ecosystem: EMVCo, the GSM Association and the Smart Card Alliance. According to the forum, "these liaisons broaden and strengthen the NFC Forum's collaborative ties with key associations and standards bodies across the NFC ecosystem. As a first step in the liaisons, the Forum has signed a Memorandum of Understanding (MOU) with each organization that outlines how they will collaborate to further the development of the NFC market and NFC-based solutions."

Headline News - February 9, 2010

Payments News Editor — Tue, 09 Feb 2010 04:32:26 -0800

Note: Throughout the day, as Payments News happens, this post is updated. For job opportunities available for payments professionals, visit PaymentsJobs.com. Employers looking to hire payments professionals can post their job openings there as well.

Mercator Looks at the Economics of Debit Acquiring

Payments News Editor — Mon, 08 Feb 2010 16:18:23 -0800

Mercator Advisory Group has published a new report titled "The Economics of Debit Acquiring". The report "provides an overview of the costs associated with enabling merchants to accept debit cards for payment. This report evaluates EFT network pricing trends and provides an in-depth analysis on the implications these trends will have on acquirers. This report also offers the U.S. market share for the top companies in payment acquiring, discusses ways in which share can be measured, and analyzes PIN debit's role in skewing market share depending on which metric is used."

Visa Extends No Signature Required to Additional Merchant Categories

Payments News Editor — Mon, 08 Feb 2010 15:25:47 -0800

Visa has announced plans to offer its No Signature Required program to the majority of merchant categories in the United States beginning July 2010. According to Visa, "under the new expanded program, for domestic transactions $25 and less, retailers can accept U.S.-issued Visa cards for purchases without requiring a cardholder signature; this program has the potential to increase speed at the point of sale and enhance customer satisfaction."

Target Introduces Mobile GiftCards

Payments News Editor — Mon, 08 Feb 2010 11:29:11 -0800

Target has announced that shoppers no longer have to carry their Target GiftCards in order to redeem them, thanks to the new Target Mobile GiftCard. Using Target’s mobile technology, any shopper can save GiftCard information to a PIN-secure account on the Target.com mobile site. Target says that "all that’s needed is a mobile phone with Internet capabilities which a guest can use to retrieve GiftCard barcodes for scanning at checkout."

A Look at Same Day ACH

Payments News Editor — Mon, 08 Feb 2010 08:31:38 -0800

An article titled "Same-day ACH provides faster payments "across the pond" in the Payments and Rails blog published by the Federal Reserve Bank of Atlanta takes a look at the faster payments now possible in the UK following implementation of the Faster Payments Service.

Last Call: B2B Supplier Directories - "Where's the Phone Book?"

Payments News Editor — Mon, 08 Feb 2010 06:17:07 -0800

Glenbrook's next webinar, B2B Supplier Directories - "Where's the Phone Book?", is being held tomorrow, Feb. 9 at 10:30 AM Pacific. In this session, Glenbrook's Carol Coye Benson and Erin McCune discuss business-to-business payments in the US and the absence of broadly available directories that would enable a willing payer to pay a willing payee electronically – without requiring bilateral discussions and negotiations. They will discuss the various solutions and ideas that are either in the market or currently under discussion to address this issue. You can register here (fee US$149).

Saying No to Credit Cards

Payments News Editor — Mon, 08 Feb 2010 05:59:27 -0800

In an article titled "More consumers just say no to credit cards", Sandra Block writes for USA Today about how credit card use is declining - and the rate of growth of new credit card accounts has slowed significantly.

Vesta Introduces Version 5 of Mobile Payment Platform

Payments News Editor — Mon, 08 Feb 2010 05:47:47 -0800

Vesta Corporation has announced the availability of version 5.0 of its Mobile Payment Platform. According to the company, "the new platform enables wireless operators worldwide to increase subscriber ARPU, accept more payment types and achieve Payment Card Industry (PCI) compliance through a managed service that includes a portfolio of new payment services and features."

Headline News - February 8, 2010

Payments News Editor — Mon, 08 Feb 2010 05:32:53 -0800

Mobile Banker: Banks Eureka Moment on Mobile Services
Computerworld: Poughkeepsie, N.Y., slams bank for $378,000 online theft
The Forrester Blog For Security & Risk Professionals: Online Shopping Sites May Be Sharing Your Credit Card Data
Cedacri Selects TSYS for Complete Payment Card Solution
Banks Still Piling On Overdraft Fees
Plastic Jungle Sees Traffic to Sell Gift Cards in January More than Double
In Defense of Animals Enlists Tempo Debit Card Platform
Cardtronics Names New Independent Director, Increases Board Size (Patrick Phillips)
TechCrunch: VeriFone Going After Square Hard. Ads In NYC Taxis Already.
WSJ.com: The Promise and Peril of Using Credit Cards to Finance a Small Business
NYTimes.com: Drilling Down - Trend of Declining Coupon Use Reversed in 2009
The Globe and Mail: Banking on smart phones 'the way of the future'
Kalamazoo News: Credit-card system puts health-care payments on the front end of service
Heartland's Bob Carr Appointed to the Secure POS Vendor Alliance Board of Directors
asknet to Offer Alipay, The Leading Online Payment Solution in China

American Express Investor Day

Payments News Editor — Sun, 07 Feb 2010 20:20:17 -0800

Last week, American Express held its semi-annual investor day - copies of the presentation materials, speech texts, and a transcript of the event are available at the Amex Investor Relations site. Ken Chenault (CEO) and Ed Gilligan (Vice Chairman) made presentations.

Fed Reports Revolving Credit Declined 11.7% in December 2009

Payments News Editor — Fri, 05 Feb 2010 13:02:50 -0800

The latest Federal Reserve G.19 Consumer Credit report finds that revolving consumer credit in the US declined at an annual rate of 11.7% in December. For the full year, consumer credit declined 9.5% - from $957.3 billion at the end of 2008 to $866 billion at year end 2009.

PayPal and Payments to/from India

Payments News Editor — Fri, 05 Feb 2010 10:20:17 -0800

TechCrunch's Robin Wauters reports that PayPal "appears to be blocking personal transactions to or from accounts of India-based users. It is reversing personal transactions; transactions involving businesses are still allowed." A PayPal spokesperson confirms that "personal payments to and from India have been suspended while we address some questions from our business partners."

Visa's eCommerce Initiatives

Payments News Editor — Fri, 05 Feb 2010 08:40:30 -0800

In it's earnings call last October, Visa CEO Joseph W. Saunders mentioned a new ecommerce solution being developed by Visa. He called it Right Click by Visa.

On Wednesday's earnings call this week, he was asked by Dan Perlin of RBC Capital for an update. According to the earnings call transcript made available on Seeking Alpha, he said:

Well I think the enhance checkout is something that we are pretty excited about and we intend to roll that out in a very big way in about six weeks. So, I think I'll leave that until Investor Day presentation [to be held in March- ed]. But I will tease you by telling you we are extremely excited about it, I think it'll be a big deal."

Kwedit Direct - Pay by Cash for Digital Content and Virtual Goods

Payments News Editor — Fri, 05 Feb 2010 08:29:34 -0800

We spoked yesterday to Danny Shader, founder/CEO of Kwedit. During our chat, Danny commented that Kwedit Promise was getting all of the press attention - but that Kwedit Direct might ultimately be even more successful.

Kwedit Direct allows consumers without payment cards to participate and buy online - by payment with cash:

At a local 7-Eleven convenience store (print our a Kwedit Slip, take it to the 7-Eleven and pay)
By sending greenbacks through the US mail using a prepaid mailer that you print out, fold, insert bills, and drop in the mail. Having a unique identifier, each envelope is tracked by the USPS as it moves through the postal system to Kwedit.
By "Passing the Duck" - you can forward your obligation to pay to a friend or family member.

Here's a video about how Kwedit Direct works for payers:

If you're a publisher wanting to receive funds via Kwedit Direct, here's another video with more information:

Headline News - February 5, 2010

Payments News Editor — Fri, 05 Feb 2010 05:26:13 -0800

Kwedit Announces New Payment Services for Digital Content, Virtual Goods

Payments News Editor — Thu, 04 Feb 2010 05:23:52 -0800

As previewed yesterday, Kwedit has announced the launch of Kwedit Direct and Kwedit Promise - two new services for consumers who have been unable to purchase digital content or virtual goods because they lack credit or debit cards or would prefer to pay with cash.

Kwedit Promise enables consumers to receive goods immediately in exchange for Promises to “Play Now. Pay Later.” Kwedit Promises can be paid off using any of the mechanisms provided by Kwedit Direct.

Kwedit Direct allows consumers to make payments at participating retail stores— starting with 5,800 7-Eleven stores in the United States— or by mailing cash or asking a friend or family member to pay on their behalf through a unique social payment network called Pass the Duck.™

MasterCard Announces 4Q2009 Financial Results

Payments News Editor — Thu, 04 Feb 2010 05:15:59 -0800

MasterCard has announced financial results for the fourth quarter of 2009. MasterCard reported a 6.7% increase in the number of transactions processed, to 5.9 billion, and growth of 5.3% in MasterCard’s gross dollar volume, on a local currency basis, to $674 billion.

“In 2009 we took important steps to maintain MasterCard's bottom-line growth, and as a result delivered another quarter and year of solid financial results,” said Robert W. Selander, MasterCard chief executive officer. “We remained focused on the needs of our customers, and continued to add value amid a challenging economic environment. For example, we recently announced a significant debit win in the U.S. with SunTrust and the first consumer inControl implementation with Barclaycard in the UK.”

Headline News - February 4, 2010

Payments News Editor — Thu, 04 Feb 2010 05:10:40 -0800

A New Payment Alternative for Virtual Goods: Kwedit

Payments News Editor — Wed, 03 Feb 2010 19:13:47 -0800

Danny Shader has launched his latest venture, Kwedit. See Michael Arrington's TechCrunch post "Kwedit Launches: The First Completely Unreliable Payment Network" for a quick overview of what Kwedit is up to.

For payments professionals, Kwedit is yet another example of segmentation in action. Remember the unserved? They'll accept something less than a perfect solution. Virtual goods merchants don't have a cost of goods sold that matters.

Here's a quick overview. To get started, you simply promise to pay. You can then choose to either pay within a few days - or default. In the meantime, you've bought whatever you wanted to buy from your favorite virtual goods merchant.

If you default, your Kwedit (get it?) score goes down - and you may not get new credit in the future. If you want to pay, you can put cash into the system in several ways - including at your local 7-Eleven store. Or, you can mail-in cash in a Kwedit mailer. Or, you can pass the buck to a friend or family member and ask them to pay. There's more to it - but you get the idea. See you in Farmville!

New on PaymentsViews.com: Localization of Payments

Payments News Editor — Wed, 03 Feb 2010 17:48:57 -0800

In an article titled "Localization of Payments: Lessons from Online Travel", Glenbrook's Jacqueline Chilton writes about how payments are inherently local in nature - based on speeches and a panel discussion that she led at ATPS 2009 – Airline and Travel Payments Summit - held in early December 2009.

Visa Reports Fiscal 1Q2010 Financial Results

Payments News Editor — Wed, 03 Feb 2010 13:57:39 -0800

Visa Inc. has announced financial results for its first fiscal quarter of 2010. For the three months ended September 30, 2009, Visa's payments volume growth, on a constant basis, was up 2.5% over the prior year at $720 billion. Total processed transactions, which represent transactions processed by VisaNet for the three months ended December 31, 2009, totaled 10.9 billion, a 12% increase over the prior year.

"By all measures, Visa's fiscal first quarter was a strong start to the new year, as we continued to execute well against our business plan," said Joseph Saunders, Chairman and Chief Executive Officer, Visa Inc. "We were able to capitalize on the secular trend to digital currency and grow revenues, as we expanded our payments network and processing capabilities to drive transaction growth through effective marketing programs. Even in the midst of the current economic environment, we remain fully committed to assisting our clients through these challenging times and returning excess cash to our shareholders."

Jack Dorsey, Square CEO, to Keynote PAYMENTS 2010 Conference

Payments News Editor — Wed, 03 Feb 2010 08:03:28 -0800

NACHA has announced that Twitter co-founder and Square CEO Jack Dorsey and Square chairman Jim McKelvey will be the keynote speakers at the opening general session of PAYMENTS, the annual conference of NACHA—The Electronic Payments Association. This session will take place at 9:15 a.m. Pacific on Monday, April 26, 2010, at the Washington State Trade and Convention Center in Seattle.

More Consumers Making Payments on Credit Cards Before Mortgages

Payments News Editor — Wed, 03 Feb 2010 05:10:03 -0800

A new study by TransUnion confirms that the "new" payment hierarchy -- where consumers pay their credit cards prior to their mortgages -- is continuing, with the trend occurring more readily than ever before.

G&D, ARM Partner to Protect Mobile Applications from Data Theft

Payments News Editor — Wed, 03 Feb 2010 04:57:13 -0800

ARM and Giesecke & Devrient (G&D) have announced a strategic partnership for the development of highly secure mobile phone platforms. According to the two companies, "through the combination of ARM TrustZone technology, which creates a protected area in advanced systems-on-chip, and the highly secure Mobicore operating system developed by G&D, sensitive applications such as electronic payment and online banking via mobile phone will be efficiently protected from security threats. As a first step the two companies will develop a joint prototype."

Discover U.S. Spending Monitor Rises 2.2 Points in January

Payments News Editor — Wed, 03 Feb 2010 04:49:33 -0800

The Discover U.S. Spending Monitor rose 2.2 points in January to 85.2 (based out of 100), primarily driven by an increase in the number of consumers feeling better about their personal finances. Despite improving views about their finances, a majority of consumers continue to rate the economy as poor and nearly half don’t see economic conditions improving. As a result, consumer spending intentions were flat in January.

Gemalto Acquires Mobile Authentication Firm Valimo Wireless

Payments News Editor — Wed, 03 Feb 2010 04:42:36 -0800

Gemalto has announced that it has acquired Valimo Wireless, a mobile authentication company based in Helsinki, Finland. The terms of the transaction were not disclosed.

According to Gemalto, "Valimo has pioneered the use of two-channel, two-factor authentication based on Public Key Infrastructure (PKI), combining an over the air platform (OTA) with a software client in the SIM to generate a legally binding electronic signature, any time, any place. Valimo enables mobile phone users to securely authenticate themselves, digitally sign documents and confirm legally binding transactions simply by entering a self-chosen passphrase or a PIN code. Valimo Mobile ID solution facilitates secure online banking, mobile payments, governmental services, electronic and mobile commerce, and identity and access rights management for enterprise applications."

INSIDE Contactless Releases Open-Source NFC Protocol Stack

Payments News Editor — Wed, 03 Feb 2010 04:34:26 -0800

INSIDE Contactless has announced it is making its Open NFC™ commercial-grade NFC protocol stack available in a free and open source edition under the Apache™ License, Version 2.0. According to the company, "INSIDE’s Open NFC 3.4 is available now for WinCE 6.0 (compatible with Windows™ Mobile 7) and Linux 2.6 platforms, and an Android™ implementation will premier with the planned release of Open NFC 3.5 at the end of March."

Headline News - February 3, 2010

Payments News Editor — Wed, 03 Feb 2010 04:31:57 -0800

CIBC Launches Mobile Banking for iPhone

Payments News Editor — Tue, 02 Feb 2010 18:40:50 -0800

CIBC has announced that its CIBC Mobile Banking App is now available from the iPhone App Store - saying it "offers greater flexibility and choice for CIBC clients to bank on the go by becoming the first major bank in Canada to offer a mobile banking App for iPhone. The App gives CIBC clients the flexibility to use their iPhone or iPod touch to check account balances, transfer funds, pay bills and even send INTERAC Email Money Transfers."