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Ten Corporations Compete for First e-Payment Licenses
163.com (China) – Ten e-payment corporations will have a chance to obtain the first e-payment licences granted by the central bank, the People's Bank of China. Four are foreign companies such as Visa, PayPal and MasterCard, and six are local companies including Alipay, 99Bill, UMPay. Reports say that in the beginning only five of these companies will receive licences.
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Landing the Unbanked with Lure of Building Credit
US Banker (US) - Banks are planning a major push this year into the notoriously fickle unbanked market with a small line of credit on prepaid cards, from US$200 to $1,000 per customer. Both MasterCard and Visa announced plans in December to increase their prepaid-card networks as ways to expand services for the unbanked market. The plan calls for Visa's prepaid-card network, Visa ReadyLink, to be introduced into Blackhawk Network's alliance partner stores says Todd Brockman of prepaid products at Visa USA. For Visa, the expansion of its merchant network for the unbanked is the latest outgrowth of its successful prepaid payroll card, which it introduced in 2000. MasterCard's announcement, made two weeks after Visa's, also is geared to the same market.
Visa Europe the "Most Trusted" Payment Cards’ Brand
Invertia, Finanzas.com, Hispanidad, Diario Siglo XXI, Diario Directo (Spain) - Visa has been selected "the most trusted payment card brand" for the fifth year running by Reader’s Digest magazine. Joe Clift, head of Brand Management, Visa Europe commented, "It’s great to see the levels of trust rise still further, with more and more people across Europe selecting Visa as their most trusted card brand over the last twelve months."
Czechs Already Have Nearly Eight Million Cards
Hospodarske Noviny (Czech Republic) - Domestic banks issued nearly half a million payment cards last year and their number reached some 7.9 million at the end of 2006, according to data of the Bank Card Association. "The habits [of people in the Czech Republic] constantly change and more and more people see advantages of cashless payments. The usage of cards is highly supported by number of places with cards acceptance," said Jana Lvova, Area Manager Visa Europe for Czech Republic.
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Citibank to Target 20 Percent Credit Card Growth
Bisnis Indonesia (Indonesia) - Citibank targets a 15 to 20 percent increase in credit card numbers this year. To date, the total number of credit cards issued by Citibank is 1.5 million. Citibank Indonesia Card Business director Sanjay Kao said, "We are consistently creating new opportunities for our customers so that the products that are being offered can be beneficial for them. We also protect our cardholders from fraud via a device called Fraud Early Warning System." There are 8.5 million credit cards that have been issued by Indonesian banks and Citibank tops the list.
Bank of Queensland Plans Bendigo Meeting
Wall Street Journal Asia (Hong Kong) - Bank of Queensland will meet the board and management of A$2.6 billion takeover target Bendigo Bank next week, arguing its case for combining the two regional banks. Reporting a 21 percent fiscal first half net profit rise, the Brisbane-based bank said it hopes to have something to announce a week or two after the presentation next Friday.
RHB Bank's New Owner Eyes Merger with CIMB
Business Times (Singapore) - The new owner of Malaysia's fourth-largest lender, RHB Bank, sees larger rival CIMB Bank as a likely merger partner for RHB, which combined could become a regional heavyweight, a source close to the situation said. RHB Banking Group is being taken over by Malaysia's state pension fund after it won a US$3.68 billion bid battle last month. The fund aims to sell down its stake and bring in a strategic investor to help run and grow the business.
Scotiabank Open to Talks on RHB Stake
New Straits Times, The Star, The Sun, Berita Harian, theedgedaily.com (Malaysia) – Bank of Nova Scotia (Scotiabank), Canada's third biggest banking group, said it is open to the idea of buying a stake in Malaysia's RHB Bank. Scotiabank senior vice-president for Asia Pacific and Middle East, Michele Kwok said the bank is interested to leverage on the 200 RHB branches nationwide. Being a prominent provider of retail banking in Canada, she said Scotiabank can provide its expertise in that particular sector.
Carlyle Bid for Chongqing Bank set to be Rejected
Business Times (Singapore), International Herald Tribune (Hong Kong) - Carlyle Group's bid to buy part of Chongqing City Commercial Bank will be rejected as China stiffens opposition to buyout firms on concern they are not adding enough value, three people familiar with the matter said. The China Banking Regulatory Commission will turn down the biggest US buyout fund's application to acquire 7.99 percent of the bank for RMB 326 million. The regulator is also mulling plans to make it harder for private equity companies to purchase stakes in banks.
Citic Bank Starts Marketing IPO
Business Times, Today (Singapore), Wall Street Journal Asia (Hong Kong) - China Citic Bank Corporation, the country's seventh biggest commercial bank, yesterday began marketing a US$3 billion IPO in Shanghai and Hong Kong that is expected to command strong demand from investors seeking access to double-digit growth in the world's fourth largest economy. The bank, in which Spain's Banco Bilbao Vizcaya Argentaria owns 4.83 percent, follows several larger rivals to market in IPOs that have drawn massive orders.
DBS Considers Stock Split to Make Shares More Affordable
Straits Times, Business Times (Singapore) - DBS Group Holdings is looking to make its shares more affordable to retail investors. It may do this with a stock split - that is dividing the existing shares into a larger number of shares. This would bring down the unit price, currently at S$22.50.
Citigroup to Issue Debit Cards in China
CardLine Asia Pacific (US) - Citigroup plans to issue debit cards to account holders in China soon. It also will issue a co-branded credit card with its partner, Shanghai Pudong Development Bank, in which Citigroup has about a four percent stake. There is no specific timetable for when the debit cards will be issued. Currently, foreign banks not incorporated locally are not allowed to issue any type of bank cards independently.
Japan Airlines and Pudong Development Bank Launch Co-Branded Credit Card
CardLine Asia Pacific (US) - Japan Airlines International and Shanghai Pudong Development Bank launched the JAL SPDB co-branded credit card in March for Chinese residents. The cardholders will earn mileage toward a free Japan Airlines ticket to Japan and other countries. The credit card has both China UnionPay and JCB functions, and can be used for yuan purchases through the CUP ATM and point-of-sale network in China, and for US dollar purchases through the JCB network outside China.
Standard Chartered Plans Stronger Presence in Vietnam
CardLine Asia Pacific (US) - Standard Chartered bank plans to establish a wholly-owned subsidiary in Vietnam with an investment in Vietnam worth US$100 million and the bank's focus on wholesale and consumer banking. Standard Chartered has had a presence in Vietnam since setting up a representative office in Ho Chi Minh City in 1990. Four years later, it opened up a branch in Hanoi. The UK bank, most of whose operations are in Asia and the Middle East, purchased an 8.56 percent stake in Asia Commercial Bank of Ho Chi Minh City in 2005.
HSBC Introduces New Loyalty and PIN-Payment Card Program
Business Wire, CardLine (US) - HSBC has announced it will begin offering retailers a first-of-its-kind combination loyalty rewards and PIN-based dual payment card solution created through a new strategic alliance with Concept Shopping. Designed to enhance customer loyalty and increase sales, HSBC expects merchants nationwide to begin offering the new merchant-branded card within the next six months.
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Retailers and Electronic Payments
AAP Newswire (Australia) - The long-held reign of the swipe-and-sign plastic cards now appears to be weakening with retailers and other players considering other ways to make the payment process both more secure and faster. In the US, NCR Corporation, a 123-year-old maker of cash registers, is already providing registers to retailers that include fingerprint scanner locks for staff to reduce loss and time-attendance fraud. NCR says the next phase of the technology is to get customers feeling comfortable with the idea of using their biometric information to make casual purchases.
PayNet Launches e-Payment Network for Prepaid Cell Phone Users
Saigon Times Daily, News (Vietnam) - PayNet has launched an e-payment network for prepaid cell phone users. Soon the network will be able to accept payment for mobile phones, land and internet phone services as well as utilities and insurance bills. PayNet has signed cooperation agreements with AB Bank, Navibank, Techcombank, VPBank, VIB Bank, Military Bank and Maritime Bank.
IIF Chief Warns of "Vulnerabilities to the Outlook for Global Growth"
Financial Times (Hong Kong) - There are "growing vulnerabilities to the outlook for global growth", the head of the lobby group representing the biggest financial institutions warned yesterday. The International Monetary Fund should consult more closely with the private sector to address the risks, said Charles Dallara, managing director of the Institution for International Finance.
Aussie Central Bank Opts not to Raise Rates
Business Times (Singapore) - Australia's central bank skipped a chance to raise interest rates yesterday, quashing speculation it might tighten rates to cool domestic demand as insurance against future inflationary pressures. The Australian dollar fell while shares hit record highs after the RBA left its cash rate at 6.25 percent following a monthly policy meeting on Tuesday.
Malaysian Banks Advised to Transform Credit Card Debt into Loans
CardLine Asia Pacific (US) - Consumer advocates advised Malaysian banks and financial institutions to convert credit card debts into term loans to be repaid through regular, periodic payments instead of taking bankruptcy action against defaulters. According to consulting group Euromonitor, consumers held about 25 million payment cards in Malaysia in 2006, including nine million credit cards.
Islamic Finance - Short on Skills
The Banker (US) - Business is booming for Islamic financial institutions across the Gulf Co-operation Council (GCC) and near region. But such is the demand for Shariah-compliant financial products that, across the board, the number of people with appropriate skills and qualifications falls well short of what the region requires to meet industry growth projections.
MasterCard and H&R Block Make It Easier to Pay Your Taxes
Business Wire (US) - MasterCard Worldwide announced that it will again team with H&R Block, the world's largest tax services company, to make paying tax debts faster and more efficient for taxpayers. Since 2004, MasterCard has worked with H&R Block and LINK2GOV, an Internal Revenue Service-approved payment processor, to enable cardholders to pay their balances easily. This year taxpayers can save 35 percent on the purchase of any one of H&R Block's TaxCut Online tax preparation programs, when they purchase the program with their debit or credit MasterCard.
American Express Revamps Earnings Report
CardLine (US) - American Express Co. said it would begin including more details about delinquencies, interest income, expenses and other figures when it files its first-quarter results 19 April. Among the changes, Amex's income statement will include a new section that details provisions for losses and benefits, which were previously included in the "Expenses" section. Amex also said that it has corrected a "computational error" in its calculation of net finance charge revenue divided by average loans, which it said had a "minimal impact on historic trends."
Bank Said to Weigh Spinoff of a Unit
The New York Times (US) - Metavante, a financial processing firm, would become its own company under a deal being completed by its parent company, Marshall & Ilsley – Wisconsin's largest bank – and the private equity firm Warburg Pincus. Metavante handles customer relationships and financial transactions, like online bill payments, for banks. Under a proposed tax-free transaction, Metavante would be spun off to shareholders, and Warburg Pincus would pay cash for a minority stake.
US Financial Services Sector Seen Ripe for Buyouts
Reuters (US) - With the financial sector already among the busiest for mergers, private equity firms and other buyers are looking deeper at behind-the-scenes payment processors and business-services providers as takeover targets. "The payment-processing technology area is attractive because it has stable cash flows, and there is capacity for buyers to add more debt. That's the classic leveraged buyout scenario, though buyers will have to accept lower credit ratings," said Richard Hofmann, a financial services analyst with CreditSights.
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China Saving on Olympic Security
Associated Press (Asia) - China will spend less on Olympic security than other recent hosts of the Summer Games and is confident the 2008 Games will be trouble-free, a security official said on Wednesday. "Our costs will be controlled below that of the other countries when they held the Games, while also ensuring that the security work proceeds smoothly," said Liu Shaowu, head of security of the Beijing Organizing Committee for the Olympic Games.
Asia to Lift Airline Sector
International Herald Tribune (Hong Kong) - After six years of losing money, the global airline business is expected to be profitable in 2007, and Asia will spearhead the growth of the industry, the head of the International Air Transport Association said on Wednesday. By 2010, Asia will become the world's largest aviation market, accounting for one third of the world's air traffic, said Giovanni Bisignani, the IATA director general and chief executive.
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