By: Chris Crum
Square has received a new investment from Visa, which is the largest credit card company in the world. While the exact amount of the investment is unknown, it’s rumored to be in the millions.
Square COO Keith Rabbois told the Wall Street Journal that the company will continue to “explore collaborative partnerships that might make sense,” that the two companies’ visions “align”. The journal reports:
More than eight million U.S. businesses accept Visa and Mastercard, Rabois said. Square is trying to help the 27 million businesses and entrepreneurs that don’t accept credit cards because they haven’t qualified due to poor or no credit history, Rabois said.
The investment comes at a very interesting time in Square’s existence. The company is certainly really starting to build steam, but as you may know, Square co-founder Jack Dorsey recently returned to day-to-day operations at Twitter, in addition to remaining in the CEO role at Square. The man has his hands full, no doubt. He’s essentially taken Evan Williams’ place at Twitter, and Square continues to grow its staff.
Interestingly enough, Rabbois told the WSJ that he interacts with Dorsey the same amount that he did before Dorsey went back to Twitter. It doesn’t sound like the Twitter gig is putting too much of a strain on Square.
The backing of Visa should alleviate any of the concerns out there about Square’s potential for success, and about security, for that matter. You may recall earlier this year when Square competitor Verifone blasted Square over a security issue. The claims ended up being blasted themselves, and essentially called out as being a back-handed competitive stroke.
Now, you have to wonder if investments from other major credit card companies will follow.
URL: http://www.webpronews.com/square-gets-visa-backing-2011-04
Wednesday 27 April 2011
A card that works in Europe and here at home
Posted by: Kerri Westenberg under Consumer travel, Europe
A reader asks: can an American get a credit card from a European bank, which would contain the special chip that allows them to be used in ticket machines and other outlets in Europe?
My answer: Probably, but you don’t need to if you’re simply interested in getting a card with chip technology rather than a card issued by a European bank.
A bit of context for people unfamiliar with the technology: American credit cards use a magnetic strip to exchange information during a financial transaction. In European and other countries, card issuers have turned to EMV chip technology (named for Europay, MasterCard and Visa). Where people are handling the charge, American credit cards often work. Not so at unmanned kiosks, such as those at train stations and gas pumps.
According to Greg McBride of bankrate.com, getting a card from a European bank isn’t impossible, though “banks are understandably reluctant to lend money on an unsecured basis to borrowers in a foreign jurisdiction.” It’s likely you could get one after opening a deposit account with that bank.
Fortunately, you likely don’t need to go through the hassle of opening an account overseas. “Chase has recently rolled out chip-and-pin technology,” McBride said, “and other large national and regional banks will most certainly follow suit.”
Wells Fargo, the largest bank in Minnesota, is one of them. Eric Schindewolf, vice president of product development at Wells Fargo, said the bank is rolling out a pilot program this summer with 15,000 customers who are frequent international travelers. “The pilot program is about understanding what it means to do a smart card program, how will customers use the product, what questions will they have.” The card will have both a magnetic strip and a chip for use here and overseas. Schindewolf said he didn’t know when or if such a card would go into production. Though this might be hard to accept for avid overseas travelers, the company has already identified the customers who will be part of the pilot program.
If you can’t track down a card with a chip through Chase or another bank, there is another option. Travelex, which used to issue traveler’s checks, now offers prepaid currency cards with chip-and-pin technology which you can use just like a debit card.
URL: http://www.startribune.com/lifestyle/travel/blogs/120728574.html
A reader asks: can an American get a credit card from a European bank, which would contain the special chip that allows them to be used in ticket machines and other outlets in Europe?
My answer: Probably, but you don’t need to if you’re simply interested in getting a card with chip technology rather than a card issued by a European bank.
A bit of context for people unfamiliar with the technology: American credit cards use a magnetic strip to exchange information during a financial transaction. In European and other countries, card issuers have turned to EMV chip technology (named for Europay, MasterCard and Visa). Where people are handling the charge, American credit cards often work. Not so at unmanned kiosks, such as those at train stations and gas pumps.
According to Greg McBride of bankrate.com, getting a card from a European bank isn’t impossible, though “banks are understandably reluctant to lend money on an unsecured basis to borrowers in a foreign jurisdiction.” It’s likely you could get one after opening a deposit account with that bank.
Fortunately, you likely don’t need to go through the hassle of opening an account overseas. “Chase has recently rolled out chip-and-pin technology,” McBride said, “and other large national and regional banks will most certainly follow suit.”
Wells Fargo, the largest bank in Minnesota, is one of them. Eric Schindewolf, vice president of product development at Wells Fargo, said the bank is rolling out a pilot program this summer with 15,000 customers who are frequent international travelers. “The pilot program is about understanding what it means to do a smart card program, how will customers use the product, what questions will they have.” The card will have both a magnetic strip and a chip for use here and overseas. Schindewolf said he didn’t know when or if such a card would go into production. Though this might be hard to accept for avid overseas travelers, the company has already identified the customers who will be part of the pilot program.
If you can’t track down a card with a chip through Chase or another bank, there is another option. Travelex, which used to issue traveler’s checks, now offers prepaid currency cards with chip-and-pin technology which you can use just like a debit card.
URL: http://www.startribune.com/lifestyle/travel/blogs/120728574.html
Credit Card Cos: Who’s Doing What in Mobile Payments?
Visa is making a strategic investment in mobile payment provider Square, providing the start-up with an undisclosed sum of money as well as a new advisory board member. It’s a nice boost for Square, which is on a roll as it tries to ramp up payments via a smartphone. But it also highlights the growing role of credit card companies as they try to prepare for the growing mobile payments boom.
As more and more transactions flow through a mobile phone, Visa, Mastercard and American Express have been making moves to position themselves in different ways to take advantage of this trend. It’s not just a passing interest for these companies. In many ways, they need to be actively involved in the rise of mobile payments, which can threaten to cut them and their cards out of the process. Here’s a look at what some of the biggest players are doing in the field:
Mastercard — Mastercard has been an early believer in near field communication and has been working on contactless payments all the way back to 2002 with its PayPass system. It now has 88 million PayPass cards and devices in use at 276,000 merchant locations. And it’s rolling out worldwide deployments of near field communication, a short-range wireless technology that is being used for contactless payments. Mastercard is also working with Gemalto, which will include Mastercard’s PayPass authentication and credentials in Gemalto’s SIM cards. When paired with an NFC-enabled phone, it will mean easier use of PayPass NFC transactions.
Mastercard is also reportedly teaming with Google on an application that will allow payments through NFC-enabled Android devices. This would allow Android devices to become mobile wallets that could also provide consumers with offers and discounts from retailers when they made a transaction. Mastercard is also looking at embedding NFC credentials on microSD cards, which banks such as Bank of America and others are trialing.
Visa — Visa is also working on the NFC front and is working as well on microSD solutions with banks. Visa also announced it was teaming with Samsung to bring NFC payments to the Olympics in London next year. The company is also looking to take on Paypal with its own personal payments system that builds off its VisaNet global payments network. The move takes Visa beyond its traditional strength of point of sales and into the world of electronic payments.
With the investment in Square, Visa is also showing that it’s looking to tap mobile card readers to help grow the number of merchants who can tap into its global payment network. This is more than just a symbolic move. It validates the work of Square and rivals Intuit and VeriFone and it also puts Visa in a position to acquire Square or at the very least, learn a lot about this business. Visa is also getting into virtual goods monetization with its acquisition of Playspan in February, which offers a payment platform for developers looking to sell virtual goods. Visa is showing a lot of diversity, trying to be in a number of places as new payment opportunities arise.
American Express — AmEx recently threw its hat into the personal payments ring with Serve, a new payment network that allows people to pay each other online, through mobile phones and through American Express’ merchant locations. Funds can be added to Serve accounts from a variety of sources including debit cards, bank accounts and credits cards including American Express rivals. Users can manage their accounts and make payments through a smartphone app or using a prepaid card linked to Serve, which is good at all American Express locations. Serve also plans on delivering marketing offers to users, which could be a lucrative business for payment processors.
Serve pits AmEx against PayPal but it also positions the company better in the broader mobile payments market. The platform is meant to evolve over time and will eventually incorporate NFC payments. In the meantime, American Express also announced it is partnering with mobile payment start-up Payfone, which is poised to unveil a payment processing system that allows customers to pay using their mobile phone number. The alliance helps Serve provide more payment options like carrier billing, which is another major piece of the mobile payments realm. American Express has been more quiet on the mobile payments front but it’s showing that its eager to catch up.
As I said earlier, the credit card companies know they need to get active in mobile payments or risk being bypassed. But as we’ve noted before, mobile payments is a broad category that means a lot of things from NFC and carrier billing to more personal payment networks and solutions like Starbucks’ mobile card app. The card companies already have an enviable relationship with consumers that they are now leveraging as they move in this direction. But the key for these companies is to ensure they’re represented in all of these new and sometimes competing payment options as they emerge. It’s still early but the increased movement by the big credit card companies show they don’t want to be caught flatfooted when these things take off.
URL: http://gigaom.com/2011/04/27/credit-card-cos-whos-doing-what-in-mobile-payments/
Monday 25 April 2011
MasterCard raises awareness on payment card safety, security
MasterCard Worldwide recently conducted an intensive training session at its customer financial institutions and businesses in Nigeria to boost awareness regarding the safety and convenience associated with purchasing goods and services with payment cards.
In addition, the training, which held at Eko Hotel in Lagos, was targeted at demonstrating best practices with regard to issuance and acceptance of payment cards by banks and merchants.
The three-day training sessions, sponsored by MasterCard, were attended and supported locally by Guaranty Trust Bank, Skye Bank, First Bank, United Bank for Africa (UBA), Bank PHB, Intercontinental Bank, First City Monument Bank (FCMB), Ecobank, and Zenith Bank.
At the workshop, MasterCard highlighted issues that face the global payment card industry, including: card security features, card fraud types, merchant best practices, charge backs, the Nigerian payment market and general customer service trends.
“Payment cards such as debit cards and credit cards, and security technologies such as Chip and PIN, and Payment Card Industry Data Security Standards (PCI DSS) all contribute to making payments more convenient, safer and cost-effective than carrying cash or using cheques,” said Daniel Monehin, area head, East and West Africa and Indian Ocean Islands, MasterCard Worldwide.
“However, there is a clear need to raise awareness on how to accept and use payment cards responsibly, and to ensure that businesses are quickly able to identify genuine payment cards when they are presented at point of sale for payment,” he added.
As a leader in payment card security and an active participant in helping markets develop their local payment systems, MasterCard’s efforts aim to help every segment of the Nigerian payments industry offer safe and convenient payment alternatives to their customers.
“There is nothing more critical than keeping businesses secure from fraud and facilitating the effective rollout of safe and convenient payment systems based on industry best practices.
MasterCard continues to develop and implement new programmes to advance data protection and promote the responsible use of payment cards, and remains fiercely committed to advancing secure payments systems throughout Nigeria,” explained Monehin.
URL: http://www.businessdayonline.com/NG/index.php/investor/companies-and-market/20789-mastercard-raises-awareness-on-payment-card-safety-security
In addition, the training, which held at Eko Hotel in Lagos, was targeted at demonstrating best practices with regard to issuance and acceptance of payment cards by banks and merchants.
The three-day training sessions, sponsored by MasterCard, were attended and supported locally by Guaranty Trust Bank, Skye Bank, First Bank, United Bank for Africa (UBA), Bank PHB, Intercontinental Bank, First City Monument Bank (FCMB), Ecobank, and Zenith Bank.
At the workshop, MasterCard highlighted issues that face the global payment card industry, including: card security features, card fraud types, merchant best practices, charge backs, the Nigerian payment market and general customer service trends.
“Payment cards such as debit cards and credit cards, and security technologies such as Chip and PIN, and Payment Card Industry Data Security Standards (PCI DSS) all contribute to making payments more convenient, safer and cost-effective than carrying cash or using cheques,” said Daniel Monehin, area head, East and West Africa and Indian Ocean Islands, MasterCard Worldwide.
“However, there is a clear need to raise awareness on how to accept and use payment cards responsibly, and to ensure that businesses are quickly able to identify genuine payment cards when they are presented at point of sale for payment,” he added.
As a leader in payment card security and an active participant in helping markets develop their local payment systems, MasterCard’s efforts aim to help every segment of the Nigerian payments industry offer safe and convenient payment alternatives to their customers.
“There is nothing more critical than keeping businesses secure from fraud and facilitating the effective rollout of safe and convenient payment systems based on industry best practices.
MasterCard continues to develop and implement new programmes to advance data protection and promote the responsible use of payment cards, and remains fiercely committed to advancing secure payments systems throughout Nigeria,” explained Monehin.
URL: http://www.businessdayonline.com/NG/index.php/investor/companies-and-market/20789-mastercard-raises-awareness-on-payment-card-safety-security
MasterCard and Aramex help boost e-tail in the Middle East economy
MasterCard, a leading global payment solutions provider and Aramex, the global logistics and transportation solutions provider, recently joined hands to make e-tailing even more efficient for consumers in the Middle East.
MasterCard has collaborated with Aramex to provide additional, exclusive benefits to its cardholders using the Shop and Ship service. Shop and Ship is the e-tail delivery service by Aramex that offers Middle East consumers the convenience of online shopping from the US, UK and Europe at competitive rates.
Shoppers can access the Aramex service by logging on to ShopandShip.com and signing up for a lifetime membership account. Once the consumer places an order, Aramex receives the ordered goods at its facilities from the e-tailer, and then ships and delivers them right to the shopper.
The year-long program underscores a strategic alliance between MasterCard and Aramex as it combines the strengths of MasterCard's innovative payment processing global network and Aramex's extensive expertise in providing e-services and e-business solutions.
Raghu Malhotra, general manager, Middle East, MasterCard Worldwide said: "Being at the heart of commerce, MasterCard is committed to the development of innovative payment solutions and recognizes the growing popularity of e-tailing globally and regionally. We are pleased to join hands with Aramex for an initiative that will further boost e-tail in the Middle East and Levant and that creates new business-building opportunities for our customer financial institutions. At the same time, as part of our ongoing commitment to deliver priceless experiences to our cardholders, we are pleased to offer them additional and exclusive benefits that will make online shopping and shipping even easier than before."
Hussein Hachem, CEO for Middle East & Africa, Aramex, said "At Aramex, we continuously strive to develop solutions that are at the forefront of the logistics and transportation industry and that provide real convenience to our end consumers. Shop and Ship, powered by Aramex, makes it even easier to 'buy it over there and get it over here'. By using this service, consumers in the Middle East no longer need to be concerned about whether the US, UK and European e-shops that they visit offer the option of international shipping or whether they charge high shipping fees."
The announcement follows a recent survey by MasterCard which shows that the percentage of respondents in the UAE accessing the Internet for shopping increased from 29% in 2009 to 42% in 2010. Categories leading the growth in the UAE in 2010 include airline tickets and hotel bookings, followed by home appliances and electronic products, clothing & accessories, restaurants/home delivery of food and supermarkets/superstores.
URL: http://www.ameinfo.com/263158.html
AmEx hires MasterCard prepaid head to boost products
NEW YORK (Reuters) - American Express Co , which is trying to move beyond its traditional credit card lending business, is hoping MasterCard Inc's head of prepaid debit products can help expand its offerings.
American Express has hired Laura Kelly to oversee its new product development and marketing, according to an internal memo obtained by Reuters.
Kelly will be responsible for "building, launching and marketing all new products globally" as a senior vice president in the company's global payments options group, according to the memo sent last week by that group's president, Alpesh Chokshi.
She joins American Express from MasterCard, where she ran the payment processing network's prepaid debit business. Prepaid cards, which can be used like debit cards but do not have to be linked to a bank account, are a small but rapidly expanding sector of the payment industry. They are sold mostly to young or poor people who do not have bank accounts and who mostly use cash.
Kelly "really helped to put prepaid on the map, not just for MasterCard but for the industry," said payments industry consultant Philip Philliou, a former MasterCard and American Express executive who has worked with Kelly.
"American Express is very open about wanting to go after new types of customers, with new fee services ... and prepaid is certainly a nice springboard for that," he said.
Banks, marketers, and card networks like MasterCard and Visa Inc are increasingly trying to build up their prepaid businesses, as a saturated U.S. market and increasing regulation are limiting the growth of traditional credit and debit card businesses.
While American Express does not currently offer debit cards, it is trying to get a foothold in new types of payment technologies, including online, mobile and prepaid. Last year it hired Daniel Schulman from wireless operator Sprint Nextel Corp to oversee a new enterprise growth unit.
In her new role, Kelly will report to Chokshi, whose group is within Schulman's unit. She will start at American Express on May 16, according to the memo.
A MasterCard spokesman did not respond to an email seeking comment. The Purchase, N.Y.-based network in March promoted Ron Hynes to take over its global prepaid solutions group, saying at the time that Kelly had "voluntarily elected to pursue another opportunity."
(Reporting by Maria Aspan; Editing by Tim Dobbyn)
URL: http://www.baltimoresun.com/business/sns-rt-business-us-americatre73o463-20110425,0,7684938.story
American Express has hired Laura Kelly to oversee its new product development and marketing, according to an internal memo obtained by Reuters.
Kelly will be responsible for "building, launching and marketing all new products globally" as a senior vice president in the company's global payments options group, according to the memo sent last week by that group's president, Alpesh Chokshi.
She joins American Express from MasterCard, where she ran the payment processing network's prepaid debit business. Prepaid cards, which can be used like debit cards but do not have to be linked to a bank account, are a small but rapidly expanding sector of the payment industry. They are sold mostly to young or poor people who do not have bank accounts and who mostly use cash.
Kelly "really helped to put prepaid on the map, not just for MasterCard but for the industry," said payments industry consultant Philip Philliou, a former MasterCard and American Express executive who has worked with Kelly.
"American Express is very open about wanting to go after new types of customers, with new fee services ... and prepaid is certainly a nice springboard for that," he said.
Banks, marketers, and card networks like MasterCard and Visa Inc are increasingly trying to build up their prepaid businesses, as a saturated U.S. market and increasing regulation are limiting the growth of traditional credit and debit card businesses.
While American Express does not currently offer debit cards, it is trying to get a foothold in new types of payment technologies, including online, mobile and prepaid. Last year it hired Daniel Schulman from wireless operator Sprint Nextel Corp to oversee a new enterprise growth unit.
In her new role, Kelly will report to Chokshi, whose group is within Schulman's unit. She will start at American Express on May 16, according to the memo.
A MasterCard spokesman did not respond to an email seeking comment. The Purchase, N.Y.-based network in March promoted Ron Hynes to take over its global prepaid solutions group, saying at the time that Kelly had "voluntarily elected to pursue another opportunity."
(Reporting by Maria Aspan; Editing by Tim Dobbyn)
URL: http://www.baltimoresun.com/business/sns-rt-business-us-americatre73o463-20110425,0,7684938.story
Tuesday 19 April 2011
Visa, MasterCard Shares Rally On Fed Delaying Final Debit Rules
By Aparajita Saha-Bubna, Of DOW JONES NEWSWIRES
Visa Inc. (V) and MasterCard Inc. (MA) shares rose Wednesday on hopes that a delay in finalizing new rules on debit card fees signified a softening stance by the Federal Reserve.Visa shares recently traded at $75.10, up 4%, while MasterCard stock, at $ 258.65, is up 2.7%.
The rally comes as Fed Chairman Ben Bernanke on Tuesday warned lawmakers that the Fed won't be able to meet an April 21 deadline for issuing new rules that would cap the debit card transaction fees banks charge merchants. The Fed will look to have the final rules in place by July 21 when they are implemented.
The market is interpreting Bernanke's comments "as a sign that the Fed is changing its proposal in a way that is beneficial to the issuers and networks," Brian Gardner, an analyst at Keefe, Bruyette & Woods, said in a research note.
In December, the Fed proposed, as part of an overhaul mandated by the Dodd- Frank law, capping debt-transaction fees for large banks at 12 cents, down from an average of 44 cents. While the new rules left untouched the so-called network fees Visa and MasterCard charge banks on debit cards, they have the potential to erase billions of dollars in revenue banks earn. The proposed limit on debit fees would drain $15.2 billion a year in revenue from the industry, according to Robert Hammer, who runs R.K. Hammer, a credit-card consulting firm in Thousand Oaks, Calif.
Investors have been concerned that banks may try to offset this in ways that affect Visa and MasterCard.
Unlike traditional credit-card issuers, Visa and MasterCard don't lend to consumers. Visa and MasterCard make money from the fees they charge banks, including J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C), to process card payments on the plastic these banks issue. These financial institutions are among the top issuers of Visa- and MasterCard-branded cards.
The new rules may impact Visa more than MasterCard because it has a larger market share in debit cards. They could also dent the exclusivity relationships carefully cultivated by Visa within the U.S. by requiring merchants to have at least two networks to choose from for every debit-card swipe.
Bernanke noted in a letter Tuesday to House Financial Services Committee Chairman Spencer Bachus (R., Ala.) and the panel's top Democrat, Rep. Barney Frank (D., Mass.) that more than 11,000 commenters weighed in on the Fed's controversial proposal to rein in debit card transaction fees and he said the information provided in those comments is important for assessing the effects of the rule.
-By Aparajita Saha-Bubna, Dow Jones Newswires; 617-654-6729; aparajita.saha- bubna@dowjones.com
--Maya Jackson Randall contributed to this article.
URL: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103301136dowjonesdjonline000258&title=visamastercard-shares-rally-on-fed-delaying-final-debit-rules
Analyst sets Visa, MasterCard at 'Outperform'
Despite pending government regulations aimed at limiting the fees a bank can charge retailers for debit card transactions, payment processors Visa Inc. and MasterCard Inc. remain an attractive option for investors, according to an analyst report.
THE OPINION: William Blair & Co. analyst Chris Shutler initiated coverage of the two companies on Monday, giving the stocks an "Outperform" rating.
In a research note on Thursday, Shutler said the companies are well positioned to capture a greater slice of the electronic transactions market, given that more than 80 percent of the world's transactions still involve cash or checks.
The companies already have 2.7 billion cards in circulation combined.
A slowly improving U.S. economy is another positive factor. Credit card payments volume, a key indicator of discretionary spending by consumers, accelerated in February, Shutler noted.
Still, the companies' revenue could dip soon due to a pending rule that would slash the fees that banks charge merchants for processing debit card transactions. The per-transaction fees could fall to 12 cents, from an average of 44 cents for PIN-based purchases and 56 cents for signature-based purchases.
Both MasterCard and Visa, along with banks and credit unions of all sizes, are lobbying Washington to delay the rule or change it. Shutler expects the fees will go forward but be delayed.
About 14 percent of MasterCard's total revenue is U.S. debit fees, but its market share is much lower than Visa's, so MasterCard should pick up share from the elimination of certain network exclusivity arrangements under the proposed regulations, Shutler said.
The rule changes have potentially more of an impact on Visa, which gets roughly 30 percent of its total revenue from U.S. debit transaction fees, according to Shutler.
Still, he said even a worst-case impact on Visa's revenue has largely been priced into its shares, which have underperformed the S&P 500 by 23 percent since changes were approved as part of a broader Wall Street reform bill last May.
Visa has said it has strategies ready for when the rule takes effect, including increasing the size of its international business, which wouldn't be subject to the rule.
THE STOCK: Visa shares rose 16 cents to close Friday at $76.47, while shares in MasterCard fell $1.29 to $267.68.
URL: http://www.businessweek.com/ap/financialnews/D9MKC93O1.htm
THE OPINION: William Blair & Co. analyst Chris Shutler initiated coverage of the two companies on Monday, giving the stocks an "Outperform" rating.
In a research note on Thursday, Shutler said the companies are well positioned to capture a greater slice of the electronic transactions market, given that more than 80 percent of the world's transactions still involve cash or checks.
The companies already have 2.7 billion cards in circulation combined.
A slowly improving U.S. economy is another positive factor. Credit card payments volume, a key indicator of discretionary spending by consumers, accelerated in February, Shutler noted.
Still, the companies' revenue could dip soon due to a pending rule that would slash the fees that banks charge merchants for processing debit card transactions. The per-transaction fees could fall to 12 cents, from an average of 44 cents for PIN-based purchases and 56 cents for signature-based purchases.
Both MasterCard and Visa, along with banks and credit unions of all sizes, are lobbying Washington to delay the rule or change it. Shutler expects the fees will go forward but be delayed.
About 14 percent of MasterCard's total revenue is U.S. debit fees, but its market share is much lower than Visa's, so MasterCard should pick up share from the elimination of certain network exclusivity arrangements under the proposed regulations, Shutler said.
The rule changes have potentially more of an impact on Visa, which gets roughly 30 percent of its total revenue from U.S. debit transaction fees, according to Shutler.
Still, he said even a worst-case impact on Visa's revenue has largely been priced into its shares, which have underperformed the S&P 500 by 23 percent since changes were approved as part of a broader Wall Street reform bill last May.
Visa has said it has strategies ready for when the rule takes effect, including increasing the size of its international business, which wouldn't be subject to the rule.
THE STOCK: Visa shares rose 16 cents to close Friday at $76.47, while shares in MasterCard fell $1.29 to $267.68.
URL: http://www.businessweek.com/ap/financialnews/D9MKC93O1.htm
Emerging Markets Likeliest to Provide Greatest Mobile Growth, Report Says
The emerging global markets that lack broad access to financial services likely will represent the greatest potential for mobile payments initiatives.
A report from Macquarie Equities Research Group argued that the major card brands should invest in these markets. However, a separate study predicted that half the world's phones enabled with near-field communication technology, which many consider an essential component of mobile payments, will be in use in North America by 2014.
In the April 11 report, Macquarie said mobile payments overseas have more potential to drive profitable growth for the major existing market players such as Visa Inc. and MasterCard Inc. because they possess a broad international footprint.
"In the developed world, we view NFC and the ability to make mobile-proximity payments as promising, but [we] are less excited about their potential to drive profitable growth," the report said.
Macquarie said Visa and MasterCard will play integral roles in connecting the unbanked to financial services via mobile phones, which in turn should help raise the card brands' projected share value by the end of the fiscal year. The firm's revised price targets for Visa shares are $107, up from $90 set at the beginning of the fiscal year; and $333 for MasterCard, up from $288.
Macquarie suggests any of three intermediate to long-term catalysts could drive mobile payments.
Mobile should increase the speed with which electronic payments emerge in underdeveloped markets, the report said. And mobile devices should greatly benefit countries that lack the infrastructure to support a large volume of plastic payments.
Mobile payments also might help the card brands gain favor with regulators, the report said. "Many regulators around the world believe that the payment networks are too profitable and need to be regulated," the report said. Macquarie said regulators view mobile payment initiatives favorably because they connect underbanked consumers to financial services.
The report said that mobile payments represent an opportunity for the payment networks to address merchants' needs in developed markets. Merchants have become frustrated over time with what they view as a high cost for accepting electronic payments. The networks should present mobile technology to merchants as a way to drive greater sales volume through services such as loyalty programs, the report said.
In another mobile payments-related study, Juniper Research estimated 300 million NFC-enabled phones will be available by 2014, led by North America with half that total. France also is off to a strong start, with some 1 million phones expected by the end of this year, according to Juniper.
The London research company predicted smartphone users in North America, Western Europe and other developed regions quickly will accept NFC mobile payments and marketing activity around coupons and posters equipped with NFC chips.
URL: http://www.americanbanker.com/issues/176_75/emerging-mkts-mobile-growth-1036191-1.html
Monday 18 April 2011
Visa, Mastercard have credit cards designed for customers with bad credit
By: Joe Ducey
Bad credit means less choices when it comes to credit cards, but there are cards available to rebuild your credit.
Most experts will tell you that secured credit cards are the best way to re-build a good credit reputation.
They act like debit cards; you put money in an account and credit card purchases are taken from it.
First Premier Bank and Aventium Classic offer secured cards.
They ask for a $95 security deposit, which gets you $300 in credit.
There is no interest if you pay it back each month, and you get the $95 back if you close your account with a zero balance.
You may also qualify for more of a typical credit card.
Here's what some say are the best deals around for bad credit:
The Orchard Bank Classic Mastercard's annual fee runs from zero to $59 a year.
The rate is 7.9 to 19 percent and they report to the credit bureau every month.
Also, CNN Money says the Capital One Cash Rewards Card for Newcomers is good for anybody.
The rate is high at 24.9 percent, but there is no annual fee and you get one to two percent back on purchases.
URL: http://www.abc15.com/dpp/money/consumer/alerts/visa-and-mastercard-have-credit-cards-designed-for-customers-with-bad-credit
Bad credit means less choices when it comes to credit cards, but there are cards available to rebuild your credit.
Most experts will tell you that secured credit cards are the best way to re-build a good credit reputation.
They act like debit cards; you put money in an account and credit card purchases are taken from it.
First Premier Bank and Aventium Classic offer secured cards.
They ask for a $95 security deposit, which gets you $300 in credit.
There is no interest if you pay it back each month, and you get the $95 back if you close your account with a zero balance.
You may also qualify for more of a typical credit card.
Here's what some say are the best deals around for bad credit:
The Orchard Bank Classic Mastercard's annual fee runs from zero to $59 a year.
The rate is 7.9 to 19 percent and they report to the credit bureau every month.
Also, CNN Money says the Capital One Cash Rewards Card for Newcomers is good for anybody.
The rate is high at 24.9 percent, but there is no annual fee and you get one to two percent back on purchases.
URL: http://www.abc15.com/dpp/money/consumer/alerts/visa-and-mastercard-have-credit-cards-designed-for-customers-with-bad-credit
Apple now selling Square credit card reader for iPhone, iPad
Apple explains it a bit more on its site:
Square is a revolutionary service that allows you to accept credit cards, using a reader that plugs into your iPod touch (4th generation), iPhone 4, or iPad along with a free easy-to-use app. There’s no need for complicated contracts, monthly fees, or merchant accounts. All you pay is 2.75% per transaction. You can download the free app from the App Store. Square is currently available for use in the U.S.If you find yourself conducting a lot of sales through Craigslist or similar services, and often deal with cash transactions and you think you can benefit from credit card payments, Square might be worth a look. Also, if you own a small business and find that the charges for a credit card payment system are a little high, or that the variances amongst certain providers seems outrageous, Square charges a flat rate across all transactions.
It’s available via Apple’s online retail store, and will soon be sold in its brick-and-mortar stores, too.
URL: http://www.intomobile.com/2011/04/18/apple-now-selling-square-credit-card-reader-iphone-ipad/
Barclays gains EU okay for Egg credit card asset buy
Reporting by Foo Yun Chee
BRUSSELS, April 18 (Reuters) - British bank Barclays won EU regulatory approval on Monday to
Barclays said last month that Egg's British credit card assets consisted of 1.15 million accounts with about 2.3 billion pounds of gross receivables. It did not disclose the price for the acquisition.
The European Commission, the EU competition watchdog, said the deal does not raise antitrust issues.
'As the target is only active in the UK, the activities of Barclays and the target overlap only in relation to the issuing of universal, personal credit cards in the UK and the combined market shares remain moderate,' the Commission said in a statement.
URL: http://www.lse.co.uk/FinanceNews.asp?ArticleCode=izre45igsjwt9kd&ArticleHeadline=Barclays_gains_EU_okay_for_Egg_credit_card_asset_buy
The Lincoln Lawyer: A Novel
BRUSSELS, April 18 (Reuters) - British bank Barclays won EU regulatory approval on Monday to
acquire the British credit card assets of online bank Egg from U.S. lender Citigroup to reinforce its retail banking activities.
Barclays said last month that Egg's British credit card assets consisted of 1.15 million accounts with about 2.3 billion pounds of gross receivables. It did not disclose the price for the acquisition.
The European Commission, the EU competition watchdog, said the deal does not raise antitrust issues.
'As the target is only active in the UK, the activities of Barclays and the target overlap only in relation to the issuing of universal, personal credit cards in the UK and the combined market shares remain moderate,' the Commission said in a statement.
URL: http://www.lse.co.uk/FinanceNews.asp?ArticleCode=izre45igsjwt9kd&ArticleHeadline=Barclays_gains_EU_okay_for_Egg_credit_card_asset_buy
The Lincoln Lawyer: A Novel
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