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Survey Reveals Nine Percent More Travelers Looking at Asia as Next Travel Destination
News Release (Singapore) - Visa International Asia Pacific and Pacific Asia Travel Association (PATA) today released the 'Asia Travel Intentions Survey 2007' which reported that of those intending international travel in the next two years, 52 percent were considering Asia as their next travel destination. This is a nine percent increase on the previous year's survey results and an 18 percent increase over the results in 2005. "Understanding and accommodating travelers' payment preferences are important when you consider that the World Travel and Tourism Council estimates that tourism and travel will account for more than 10 percent of Asia Pacific's GDP in 2007, which equates to around US$1.3 trillion in economic activity. It is important that we create the payment infrastructure for travelers to make payments the way in which they are most comfortable," said Visa International executive vice president for South and Southeast Asia, James Murray.
Separately, in an interview with Bloomberg Television this morning, Murray said Thailand remains the top destination with one in five respondents ranking it as their most likely holiday spot. This was followed by Japan and China. Despite international media attention on Thailand's civil unrest in the weeks before the survey was conducted, 50 percent or more of those interviewed in each of the 10 markets surveyed chose Thailand as their most likely holiday spot. He also mentioned that one emerging trend observed from the survey was a desire for travelers to participate in environmentally- and culturally-sensitive travel. Almost nine out of 10 respondents said they would prefer to choose tourism products that showed concern about the impact tourism had on local cultures and customers and also protected the natural environment. Respondents in nine of the 10 markets also indicated that they preferred to use their credit or debit cards instead of cash and travelers cheques when traveling in Asia.
Twenty Percent Growth for Visa
Bangkok Post, TNA News (Thailand) - Visa International reported 20.6 million cards outstanding in Thailand at the end of 2006, up 20 percent from the previous year. Credit cards totalled 6.7 million, up 17.3 percent, with debit cards expanding 21 percent to 13.9 million. Spending through Visa cards, including cash withdrawals through ATMs, rose 32 percent to Baht 1.547 trillion. Somboon Krobteeranon, country manager for Visa in Thailand, said the growth was above the 10 percent average for the card industry, though Visa's figure was down from the 25 percent gain posted in 2005.
Malaysian Bank Launches Co-Branded Card with Sony and Visa
CardLine Asia Pacific (US) - Maybank announced the launch of a co-branded credit card with Sony Malaysia, named "SonyCard," as Sony's first co-branded credit card in Southeast Asia. Co-branded Maybank, Sony and Visa, the SonyCard is a contactless payment card for all purchases below US$44.
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"Visa Olympics of the Imagination" Highlights "One World, One Dream"
News Release (US) - Visa International announced the eighth Visa Olympics of the Imagination (VOI) international youth art competition. Visa will send 30 children from 18 participating countries to the Beijing 2008 Olympic Games as its guests. The children will be asked to use their imaginations to create a drawing, based on the theme of global unity: 'Show how the Olympic Games connect different cultures and capture the Beijing theme – One World, One Dream'. Tom Shepard, executive vice president, Global Marketing Partnerships and Sponsorship, Visa International said, "This unique program provides children of diverse backgrounds with the exclusive opportunity to attend the Olympic Games while they learn about Olympic values, view different cultures and participate in onsite Olympic Games activities."
Verified by Visa Scheme Confuses Thousands of Internet Shoppers
The Guardian (UK) - Visa has defended the way it has introduced an online security system, despite causing a great deal of confusion among internet shoppers. Verified by Visa (VbV) has been hailed by the banks and card providers as an important step in the fight against online card fraud. However, it has been criticized by cardholders who have complained about being asked to hand over card numbers and other security details to a website that pops up when they are making transactions. Jon Varco, head of VbV, Visa Europe, says, "The process is safe and has been introduced to make buying goods on the web safer. The verification page may look like a pop-up but it is in fact a whole new web page which actually comes from the user's bank. We have designed it like that to encourage buyers to sign up as they shop. Although it is a voluntary scheme, customers have been signing up in their thousands without incident because they recognize the benefits."
States Introduce Credit Card Fee Legislation
CardLine (US) - Amid the Democratic Congress' increased scrutiny of credit card practices, a slew of legislators in 13 states thus far this year have introduced 23 pieces of legislation and one resolution aimed at reforming interchange fees and other card practices. But to date, none of the bills has passed. The bills range from eliminating interchange fees from the sales-tax portion of any retail transaction in such states as Florida, Kansas and New York to requiring credit card companies and banks to disclose their operating rules and interchange fees in such states as Nebraska and Texas. Bills in Tennessee and Washington would cap interchange fees. Because there has been little movement on any of the bills, Rhonda Bentz, a Visa USA spokesperson, says that "you don't score points by getting close."
Stransky Backing Boks
Sunday Tribune (South Africa) - At a function in Joel Stransky’s honor in Johannesburg, Visa, sponsors of the Rugby World Cup, named Stransky as one of their five Visa Rugby Legends who will be the "face" of the 2007 event in France. Joel Stransky says the Springboks are very well placed for this World Cup, there are so many factors in their favor and their position right now compared to where South Africa was in 2003.
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Agricultural Bank of China is the Biggest Bank Card Issuer in China
Beijing Daily Messenger (China) - At the end of March, Agricultural Bank of China has issued about 6.89 million bank cards, becoming the biggest bank card issuer in China. The amount of bank card deposits reached RMB 20 billion, an increase of RMB 1.49 billion from January. Card consumption was up 49.22 percent, while income from the bank cards business increased 29.08 percent over the previous year.
Card to Aid Sending Money Home
Financial Times (Hong Kong) - Lloyds TSB will tomorrow unveil a current account tailored to new immigrant workers with a card that makes sending money home more convenient and cheaper than traditional international transfers. The bank card can be pre-loaded with cash, sent to family members for use at home and topped up by telephone, giving the account holder control over the amount taken out.
RBS Seeks Way Back into Fight for ABN
Financial Times, International Herald Tribune, Wall Street Journal Asia (Hong Kong), Business Times, Straits Times, Today (Singapore), New Straits Times, The Star, The Sun (Malaysia), Business Standard (India)- Royal Bank of Scotland's hopes for mounting a counterbid for ABN Amro last night rested with its lawyers as a consortium led by the British banking group tried to work out if it could stop the Dutch leader selling its US subsidiary as part of its agreed €66 billion takeover by Barclays. In a terse statement the group said it had requested information from ABN Amro to "understand the circumstances under which" the sale of LaSalle could be terminated. An option thought to be under consideration is whether the group can legally challenge the sale of LaSalle because it could be seen as an attempt to frustrate a higher offer for ABN Amro.
British Bank to Move 10,800 Jobs to India, Other Sites
New Straits Times (Malaysia)- Barclays plans to shift 10,800 jobs to India and other low-wage countries, betting reduced costs will help win support for its acquisition of ABN Amro in the world’s largest financial services takeover. Barclays, Britain’s third largest bank, will also slash about 12,800 jobs to pare expenses by €2.8 billion, the bank said in a statement.
Affluent Clients to Drive ABN Amro Growth in Asia
New Straits Times (Malaysia) - Dutch banking group, ABN Amro Bank wants to triple the size of its consumer banking business across Asia, driven by the growing number of affluent clients in the region. The growth would be just as significant in Malaysia, said ABN Amro’s Jim Brown, head of consumer client segment in Asia. In Asia, it has more than 80,000 clients for one of its consumer banking products, the Van Gogh Preferred Banking (VGPB) which was only launched in Malaysia last week. Across the globe in 12 markets including nine in Asia, there are more than 600,000 VGPB clients and the number is growing, said Brown.
Habib Bank Targets Asia and Africa
International Herald Tribune (Hong Kong) - Habib Bank, Pakistan's largest bank by branches, plans to sell shares locally and overseas this year to help expand its network in China, Central Asia and East Africa. The Pakistan government will sell at least 10 percent in the bank through an IPO within the next three months and list global depository receipts in Hong Kong or London by December, Habib Bank's president Zakir Mahmood said in an interview on Friday in Karachi.
Chinese Lender Nears IPO
Wall Street Journal Asia, International Herald Tribune (Hong Kong) - Bank of Communications is seeking to raise as much as RMB 25.2 billion (US$3.27 billion) in its domestic IPO of shares. China's fifth largest lender by assets, which is 19.9 percent owned by HSBC Holdings, is offering 3.19 billion yuan-denominated Class A shares at an indicative price of between RMB 7 to RMB 7.90 a share, according to a statement seen by Dow Jones Newswires.
Citic Bank IPO Raises US$5.4 Billion in Shanghai and Hong Kong
Business Times (Singapore) - China Citic Bank has raised US$5.4 billion in a share sale in Shanghai and Hong Kong, marking the world's biggest IPO so far this year, according to figures released yesterday. The bank, ranked seventh in China, priced its shares at the top end of an indicative range due to strong demand from investors, it said in a statement to the Shanghai Stock Exchange.
Westpac Businessplus Gold MasterCard Launches in New Zealand
CardLine Asia Pacific (US) - Westpac has launched the Westpac BusinessPLUS Gold MasterCard card, New Zealand's first business gold credit card with rewards for small business. "This innovative new credit card has been developed in response to feedback we received from our small business customers," a Westpac spokesperson says. "Many stated that they needed a card to help them to manage their cash flow and pay expenses with ease, but that existing corporate or personal cards weren't an appropriate solution."
Taiwan Taipei Airways Teams Up with Citibank
CardLine Asia Pacific (US) - Citibank launched a co-branded credit card in Taiwan with Taipei Eva Airways, designed for high-income customers and frequent travelers. "Although many card issuers in Taiwan are cutting the benefits for cardholders, we will still keep our policy of customer first and will not change the benefit for customers," a bank spokesperson, says. Taiwan experienced a steep drop in the number of credit cardholders last year - the number of credit cards in circulation dropped to 37.7 million from approximately 45.6 million in 2005. However, Citibank Taiwan's business manager Victor Kuan said that the company expects up to a 40 percent increase in the number of cardholders this year.
Business Math at JP Morgan: Cards + E-Payments
American Banker (US) - JP Morgan is planning to add automated invoicing and payment features to its purchasing card business, a move that would let corporate clients link their payment systems electronically to those of suppliers. JP Morgan’s company's payments strategy reflects a growing interest among financial companies in facilitating electronic payments between corporate customers by linking them to card accounts.
Barclays Reintroduces Barclaycard in South Africa
Reuters (US) - Barclays will reintroduce its Barclaycard branded credit cards in South Africa after a two-decade absence. Barclays said its Barclaycard Visa credit cards will be available in South Africa from Friday and will be issued through South Africa's biggest retail bank, Absa, majority owned by the British banking group. "The new Barclaycards will enhance Absa's existing card range and increase customer choice. Absa has a multi-branded strategy, appealing to different market segments, and Barclaycard forms part of this," Barclaycard chief executive Antony Jenkins said.
Barclays to Buy ABN AMRO
The Wall Street Journal (US) - Barclays has agreed to buy ABN Amro for US$91.07 billion, in one of the largest cross-border combinations in European banking history. The combined group will be based in Amsterdam and will be called Barclays PLC. As part of the announcement, ABN said it is selling its US unit LaSalle Bank to Bank of America for $21 billion in cash. Meanwhile, despite the agreement, ABN chairman Rijkman Groenink said he still plans to meet Royal Bank of Scotland Group representatives to discuss the UK bank's possible consortium bid for the Dutch bank. Groenink said he would study any alternative offers that emerged from the meeting. But he also expressed enthusiasm for the Barclays all-share merger offer. Barclays and ABN said the deal is expected to be completed in the fourth quarter.
Bank of America to Buy LaSalle Bank for US$21 Billion
Associated Press (US) - Bank of America confirmed it will purchase LaSalle Bank for US$21 billion (€15.49 billion), filling a big hole in its national branch network by becoming Chicago's largest bank. "Although we don't desire to be in every MSA in the US, Chicago is attractive to us," said Bank of America chairman Ken Lewis. For the past several months Lewis has expressed that his bank's interest in the Chicago market, particularly the strength of LaSalle. "The opportunity arose and we acted," Lewis said. Chicago-based LaSalle is a top-20 US bank holding company, with $113 billion total assets.
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Credit Card Balance Hits US$32.9 Billion in February
CardLine Asia Pacific (US) - The total credit card balance in Australia has risen to US$32.9 billion in February, an almost six percent increase from January's $31.1 billion, according to the Reserve Bank of Australia. Charges on credit cards rose to a record $2.39 billion for the month. But the number of transactions decreased to 99,233, an 8.4 percent decrease from January's 108,325, to hit the lowest level since April 2006. "The evidence suggests that the rate hikes delivered over 2006 have made times tougher for consumers," Craig James, Commonwealth Securities chief equities economist, said.
First Data Profits Fall 59 Percent
CardLine (US) - First Data reported a 59.3 percent drop in first-quarter net income, to US$175.2 million from $430.1 million during the same period a year ago. The decrease, in part, reflects a $206.9 million income loss from operations First Data discontinued or sold during the year, most notably Western Union, which the company spun off in September. First Data reported first-quarter revenue of $1.83 billion, up 12 percent from $1.64 billion in the first quarter last year.
Alliance Data Profits Rise, CyberSource Profits Fall
CardLine (US) - Alliance Data Systems saw slight gains in its first-quarter profits, reporting net income of US$56.9 million for the first quarter, a one percent bump from $56.4 million during the same period a year ago. Alliance's first-quarter revenue rose 15 percent, to $549.2 million from $477.2 million. Meanwhile, CyberSource, another transaction processor, reported first-quarter net income of $736,000, down 15.9 percent from $875,000 a year ago. Revenues rose 42 percent, to $22.1 million this year from $15.6 million in 2006's first quarter.
Data Security Blame Game
American Banker (US) - The key lesson of the TJX, security breach may be that it is impossible to prevent data crimes against the card system. The ease of access to valuable consumer information, the considerable rewards for stealing it, the failure of law enforcement to prevent it, and the increasingly prohibitive cost of protecting it all militate against any easy solution. It's no wonder as the card system is addicted to capturing every possible kind of information about consumers. Because it is everywhere and always in flux, there is no way to protect it fully.
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Contactless Tickets Planned for Beijing Games
CardTechnology (Asia Pacific) - China plans to embed tickets for its 2008 Olympic Games with contactless chips to reduce the risk of counterfeiting, according to the Bloomberg news service. The plans call for putting radio-frequency chips and antennas in seven million paper tickets expected to be issued for the Games, say the report. According to Bloomberg, there is much concern that fraudsters will try to fabricate and sell phony tickets in China, which, in general, is known as the counterfeiting capital of the world.
India Posts 68 Percent Jump in Mobile-phone Users
Wall Street Journal Asia (Hong Kong) - India added 67 million mobile-phone users in the year ended March, taking the number of wireless connections in the country up to 68 percent to 166 million, the telecommunications regulator said. The additions, which average more than five million a month, make India one of the world's fastest growing telecom markets and a favorite among global companies that either provide telephone services or make equipment for the industry.
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