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Visa Asia Pacific Cards with EMV Surpass 63 Million
Kioskmarketplace.com, Hardwarezone.com - Visa Asia Pacific announced three new markets have hit the one-million mark with their EMV chip card deployments by its member financial institutions. Australia's EMV chip card base doubled from September to December quarters, hitting more than 1.4 million cards; Hong Kong's base of 400,000 chip cards grew to more than one million during the same period; and Thailand experienced a 15-fold increase from 2005 to 2006 to reach a million cards. Australia, Hong Kong and Thailand joined Japan, Malaysia, South Korea and Taiwan in the one-million chip card club.
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Banks Urged to Issue Smart Cards to Outsmart Forgeries
Gulf Times (Qatar) - Qatar Central Bank (QCB) has directed local banks to issue chip-embedded credit cards by September 2007. "Chip-based credit cards will be fully secure," said QCB manager for banking electronic systems, Abdul Hadi Ahen Ali Ahen to the Gulf Times yesterday. Speaking at a session organized for local bankers, Visa International's country manager for Qatar Tony Gougassian said as an emerging market which had opted for an investment in new technologies, Qatar's move to become fully EMV-compliant allowed the market to benefit from increased security in electronic payments."
Chips Arrive Slowly
Finweek - "The roll-out of chip-based cards has previously caused difficulties for South Africans traveling overseas." However, Walter Volker, chairman of the South Africa EMV forum, which is coordinating the efforts of South Africa's banks to move to the new chip-based standard says that teething problems are a thing of the past and should not happen in future. Nick Essame, head of business development and new technology at Visa South Africa, says that banks have had to cover the risk associated in magnetic stripe credit card fraud since early 2005, something that Visa and MasterCard take responsibility for when transactions are made using chip-based cards.
Those Relentless Hackers
Digital Transactions (US) - Despite card networks’ efforts to protect cardholder data, hackers keep breaking into the computer systems of merchants and processors. They’re likely to recur for some time because so many computers and point-of-sale systems still record vital card data. "Nothing less than our mutual customers’ trust is at stake," said Eduardo Perez, vice president, Payment System Risk, Visa USA. "Because trust can be lost in an instant, security should be a fundamental investment for all businesses concerned about their bottom line."
Visa Charging Chargebacks
Progressivegrocer.com (US) - A new Visa chargeback policy will go into effect this week that might provide some relief for retailers being forced to pay for chargebacks on entire purchases. Banks will be held responsible for any purchase amount over US$50, rather than the whole amount of the purchase, said Visa spokeswoman Rhonda Bentz, who noted the change was a response to gas merchants' concerns over rising prices. When a customer uses a Visa credit card at gas pumps, a computer ensures that there is at least $1 available for credit. According to Visa, 95 percent of the card company's gas transactions are under $50, with the average purchase at $29.
Smart SMS Launches MP3NY’s Mobile Visa Debit Card
Business Wire (US) - MP3NY is launching mobile banking through Columbia Card Services Mobile Visa Debit Card. The card is designed to be accessible from a cell phone, PDA, computer or landline telephone. T-Weed’s Wireless Visa Card intends to give unbanked Americans, small business owners, immigrants, and families the freedom of a bank debit card that can be used in coordination with a current bank account. New Wireless Visa customers do not need to have a previous bank account or credit history, only a cell phone and a US address.
Ukreximbank Developed Novel Charity Payment Card
Carte Blanche (Ukraine) - Visa International and Ukraine’s Ukreximbank have teamed up to organize the country’s first automatic charity card program. The Ukreximbank Visa card automatically generates a charitable contribution to the children’s department of the Medical Science Academy of Ukraine’s cancer institute when a card account is opened and each time the card is used to pay for a transaction or ATM withdrawal.
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Daiei Plans to Sell 30 Percent Stake in Credit Card Unit
The Star, New Straits Times (Malaysia) - Japanese supermarket Daiei Inc plans to sell about 30 percent of its stake in its credit card unit, OMC Card this month. If offered by Daiei, credit card firm Credit Saison said it would consider buying the OMC shares. Daiei has been shedding non-core businesses as part of an effort to turnaround.
Panting Towards a New Path
Economist.com (Asia) - When he engineered the merger that created Citigroup, the world's largest bank, Sandy Weill said he felt like a rock star. His successor, Chuck Prince, must have felt more like a busker since taking over from the great dealmaker in 2003, strumming hard but winning scant applause. Citi's shares have lagged behind those of rivals such as JPMorgan Chase and Bank of America, and its expenses have been growing at twice the pace of revenues. Prince's efforts have been so unappreciated that some shareholders have called for his head while others suggested a break-up.
Citigroup Laying off 17,000 to Cut Costs
Financial Times, International Herald Tribune, Wall Street Journal Asia (Hong Kong), Business Times, Straits Times (Singapore) - Citigroup announced on Wednesday that it would eliminate or reassign more than 26,500 jobs as part of a sweeping overhaul to cut costs and streamline the global bank's sprawling operations. Under intense pressure from investors, the bank announced plans to lay off more than 17,000 workers, with the first notices coming this week. About 9,500 jobs will be moved to locations overseas or around the US where the cost of doing business is lower, from more expensive locations like London, Hong Kong and New York, where the company's headquarters are based. Two-thirds of those jobs will be eliminated through attrition.
Australian Regulator Wraps up Case against Citigroup
Wall Street Journal Asia (Hong Kong) - Australia's securities regulator wrapped up its landmark case against Citigroup yesterday, with a challenge to the established investment banking practice of using so-called Chinese walls to manage conflicts of interest. The Australian Securities and Investment Commission has charged a local unit of Citigroup with conflicts of interest and insider trading, in a case that could affect the way investment banks manage the conflicts that arise when they engage in different types of business. Citigroup has denied all the allegations and no individuals have been charged.
Deutsche Bank Recruits Staffer from Citigroup
International Herald Tribune (Hong Kong) - Deutsche Bank hired 18 private-bank employees from Citigroup in Singapore to gain ground in a region where the ranks of millionaires are growing faster than in Europe and the US, said two people familiar with the decision. The recruits include financial advisors who deal directly with clients and specialists who devise products, said the people who declined to be identified before the moves are announced.
Singapore Bank CEOs among Top 10 Earners in Region
Business Times (Singapore) - Top bankers in Australia, Hong Kong and Singapore were the most highly paid in 2006, The Asian Banker Journal says in its inaugural ranking of executive pay in the sector. The top 50 bankers in Asia Pacific excluding Japan and South Korea earned a total of US$83.4 million in 2006 and with average pay of $1.6 million, according to a survey published in the latest edition of the journal. The chief executives of the three Singapore banks were among the top 10 earners in the region.
India's ICICI Bank Bolsters Online Card Security
CardLine Asia Pacific (US) - India's ICICI Bank is using the 3-D Secure software sold by enStage to better secure transactions for customers using credit and debit cards for online purchases. The software helps verify for the customer that the online merchant is legitimate, and tells the merchant that the card is being used by its rightful owner. This is done through the entry of personal identification numbers and other methods.
State Bank of India Plans Unified ATM Network
CardLine Asia Pacific (US) - State Bank of India plans to integrate its ATMs after India's Ministry of Finance asked the bank to merge with its subsidiaries, which include the State Bank of Hyderabad, State Bank Of Indore, State Bank of Patiala and State Bank ofSaurashtra. Creating a single network and further integrating the banks' technology systems would help the banks prepare for a merger. State Bank of India has more than 10,000 branches and 5,600 ATMs.
HSBC Seeks Acquisitions That Match Its Own Business Plans
South China Morning Post (Hong Kong) - HSBC is interested in acquisitions in Asia Pacific that would complement its own business growth. "We prefer to grow our business organically and would look for opportunities that could incrementally help our business," said Michael Smith, the president and chief executive of the Asia unit of HSBC. HSBC has been criticized by analysts that it missed out on acquisition opportunities in Asia such as Korea and Taiwan to rivals such as Standard Chartered Bank and Citigroup.
Citigroup Starts Handing Out Pink Slips in Its Restructuring
Wall Street Journal (US) - Citigroup began the first phase of its anticipated cost-cutting effort this week and started handing out pink slips to more than 1,000 employees. It comes at a time when chief executive Charles Prince is under intense pressure from shareholders to put a lid on rapidly rising expenses. The plan is expected to include net reductions of about 15,000 jobs through layoffs and attrition. That represents about five percent of the bank's global work force of 327,000 employees. On Wall Street, investors and analysts expect the savings to amount to at least US$2 billion a year.
Bank of America Faces Law Suit for Patent Infringement
Charlotte Observer,The Associated Press State & Local Wire(US) - Bank of America’s "Keep the Change" savings program has for years distinguished the bank from its competitors but now a Florida company says it came up with the idea first. Every Penny Counts alleges that Bank of America infringed on a patent which the company obtained in 2000. The lawsuit also names card network Visa USA.
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Number of Integrated Circuit Card-Compatible Terminals Exceeds 400,000
Nihon Keizai Shimbun (Japan) - The Japan Credit Card Association (JCCA) said yesterday that the number of IC card-compatible POS terminals have surpassed 400,000. There have been calls for merchants to install IC card-compatible terminals because IC credit cards help prevent credit card misuse.
OneBip's Mobile Payment Service Officially Launched in the UK
ITPro.co.uk (UK) - OneBip has launched a new mobile payment service in the UK this week, designed to accommodate users who are keen to pay for smaller items online but wary of the potential security risks that come hand-in-hand with giving out bank or credit card details. It essentially turns a user's mobile phone credit into money that can be spent online with participating merchants. With support from major mobile phone operators, OneBip is free for merchants and consumers to sign up, with money being made on a commission basis much like traditional credit card payments today.
First Data Acquisition could Signal more PE Interest in Payment Processing Space
Financial Times (UK) - Private equity interest in First Data could herald more interest in the payment processing industry, two industry experts agreed. Industry experts pointed to other payment processing companies as potential private equity targets, citing high cash flow, repeat customers and the transaction-based business as desirable traits for investors. Between them, they named listed Global Payments, ADP, Meridian and Paychex as likely targets.
Card Payment Trumps Mortgage for Some Borrowers
CardLine (US) - The credit bureau has released a study that examines consumer delinquency trends, and it appears there has been a paradigm shift in payment hierarchy. A segment of consumers is using a credit card to fund daily living expenses and pay its card bills on time, even if it means being 30 or more days late with the mortgage payment. Cardholders understand what will happen if they are delinquent on a card payment, but know how long it takes to go through a mortgage foreclosure.
Security Vendor Pitching Card Data to Merchants
American Banker (US) - A security vendor has made a business out of selling merchants information about stolen payment cards account data that banks could often provide for free but are generally reluctant to share. Steven Peisner, the president of Sell It Safe, spends his days in online chat rooms and underground websites used by hackers, searching for stolen card data. Many criminals offer small batches of valid card numbers as free samples, hoping to attract buyers for larger lists of stolen accounts. Peisner packages these samples into a database that he sells to merchants, which use the data to head off fraudulent transactions.
Innovative Tests One-Time Password Card in Korea
CardLine (US) - Employees of a South Korean brokerage firm, Meritz Securities, are testing cards produced by Innovative Card Technologies that produce one-time passwords for banking and Internet authentication. Employees enter their user names and identification numbers, then, as a "second layer," use the passwords generated by the cards for access to their accounts.
MasterCard to Convert Stock and Pays CEO US$22.3 Million
CardLine, Associated Press, Reuters News (US) - MasterCard has said it will change its ownership structure with plans to begin this year allowing banks to gradually convert a limited number of their Class B common stocks each year into publicly traded Class A common shares to free up more shares for public trading. It announced a US$500 million stock buyback. The company also said it awarded Chief Executive Robert Selander $22.26 million of compensation for 2006, when MasterCard went public after decades under the ownership of financial institutions.
MasterCard Ratings Affirmed by Standard & Poor's
The Associated Press (US) - Standard & Poor's Ratings Services affirmed its ratings on MasterCard after the company said it plans to buy back US$500 million of its shares in the second half of the year. Standard & Poor's added that its outlook on MasterCard is stable and takes into account "the considerable uncertainties from the company's ongoing legal battles."
First Data Buyout: Which Pieces Wall Street Views as Still in Play
American Banker (US) - First Data’s agreement to sell itself to the private-equity company Kohlberg Kravis Roberts would take one of the payments industry's biggest players off the market, but many on Wall Street say significant pieces of First Data's business could be put into play. Several industry observers say the very expensive leveraged buyout likely would be followed by the sale of several pieces of First Data.
Massachusetts Attorney General Offers Proposals to Combat ID Theft
CardLine (US) - Massachusetts Attorney General Martha Coakley has made several proposals to combat identity theft in Massachusetts, including timely notice to consumers of a security breach. She also proposed giving consumers the right to place a security freeze on credit reports, implementing legislative requirements for company security programs and giving law-enforcement groups the updated tools needed to deter and investigate identity theft. Coakley noted that there were more than 4,100 complaints of identity theft made in Massachusetts in 2006, roughly one-third of which were related to credit card fraud.
Orbiscom Online Security Product Growth Far Outpaces Online Spending Growth
PR Newswire (US) - Orbiscom has reported that consumer enrollment and usage of its patented Controlled Payment Number (CPN) technology continues to grow at rates that far exceed that for online spending. Orbiscom's product permits cardholders to shop online or on the telephone without revealing their real credit or debit card details. A substitute card number, expiration date and security code is generated at the point of online checkout to protect real credit card details. And because the substitute card number is the one that resides in the online merchant's database, the consumer's true card details are not exposed. The growth of PCN mirrors survey results from many in the financial services payments industry, illustrating that consumers have significant concern about revealing credit card details while shopping online.
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China Says Attempts to Boycott 2008 Olympics Would Fail
People's Daily Online (China) - China said on Wednesday that the attempts to boycott the 2008 Beijing Olympics due to China's policy on the Darfur issue were doomed to fail. "I heard some people are saying they would boycott the 2008 Beijing Olympic Games to protest China's policy over Darfur," Assistant Foreign Minister Zhai Jun told the media. Zhai said China maintains fair stances on international affairs and always plays a positive role. He added that he believed the Beijing Olympics will be a great success.
Beijing Cracks Down on Olympic Copyright Pirates
Straits Times (Singapore) - As trade friction between the US and China increases over copyright piracy, Beijing is working hard to protect one widely recognized global trademark - the Olympic rings - and other related logos. With fewer than 500 days to go before the 2008 Olympic Games, Olympic knock-off products are available on the internet and hawkers line streets in the Chinese capital selling baseball hats with the Olympic logo and the Beijing Games dancing-man trademark. Officials of the Beijing Organizing Committee for the Games say they will crack down on violators of the Olympic copyright, using new laws passed this year which protect the Olympics from copyright pirates.
Sponsoring Olympic Games Helped Kodak Accelerate Redirection
National Business Daily (China) - As a Global Partner of the Olympic Games, Kodak has been actively preparing for the 2008 Beijing Olympic Games. "The Kodak Olympic team has been working closely with BOCOG for the Beijing Games," said Ye Ying, the chief executive of Kodak China. Sponsoring the Olympic Games has brought many changes to Kodak and helped the company accelerate the transfer of its traditional business to its new digital business. Kodak announced its redirection in 2003, and planned to complete its restructuring by 2007.
Lenovo Initiates Series of Activities for Beijing Olympic Games
21st Century Business Herald (China) - Starting on 27 March, Lenovo’s commercials have been appearing on a special Olympics program of CCTV and will do so daily until the opening of the Games. As the only Chinese enterprise among all TOP sponsors, Lenovo has initiated a series of marketing activities for the Beijing Games with the theme of "Dreaming Olympics with Lenovo". According to Li Lan, Lenovo’s vice president, "We will be launching market promotions worldwide with an integrated marketing plan, and will prepare ourselves for various Olympic projects."
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