Payment Card Competitor Tracker, Quarter Three 2007

Table of Contents

• Overview
  • Catalyst
  • Summary
  • Methodology
• Table of Contents
• Introduction
  • Who is the target reader?
  • Changes to the format of the Competitor Tracker in 2007
    • The Payment Card Competitor Tracker is now organized by theme
    • An extended, topic driven commentary replaces the Cards & Payments Team view
  • How to use the Payment Card Competitor Tracker
• Product, Services, and Innovation
  • Roundup of the key developments in Q3 2007
    • Card product developments
      • Opportunities for co-branding are increasingly rare, but there have been some interesting launches
      • In terms of other product developments, Barclaycard' s new "Breathe" product is one of the first "green" cards on the market
    • New Payment Technologies
      • A key area of development has been contactless payments
      • Issuers are showing increasing interest in the application of mobile payments and banking services
  • ANZ Bank
    • Australia: ANZ announces reduction in credit card exception fees to A$10
  • American Express
    • Global: American Express faces travel insurance lawsuit
    • Singapore: DBS and American Express launch credit card for travellers
    • US: American Express announces an expansion in the acceptance of ExpressPay
  • Bank of America
    • Canada: MBNA and Futura Rewards launch co-brand
  • Barclaycard
    • UK: Barclaycard launches ' green' credit card
    • UK: Barclaycard launches contactless credit card
    • US: Barclays launches co-brand with US Airways
  • Capital One
    • UK: Capital One launches new credit card
  • Citigroup
    • China: Citibank launches first drive-through ATM
    • Malaysia: Citibank launches mobile bill payment service
    • Malaysia: Citibank launches mobile World Privilege service
    • Philippines: Citibank announces reward points raffle
    • Singapore: Citibank launches low-limit card
    • Singapore: Citibank launches three-in-one card
    • US: Citi and Obopay announce mobile payment trial
  • Discover
    • US: PULSE expands PIN-less recurring debit feature
  • Grupo Santander
    • UK: Abbey to launch new cash back credit card
  • JCB
    • Taiwan: JCB launches contactless payments in Taiwan
  • MasterCard
    • Canada: MasterCard announces first EMV card purchase
    • Ireland: MasterCard to help AIB convert debit cards to Maestro
    • US: MasterCard announces expansion in the acceptance network for PayPass
    • US: Central Bancompany to issue PayPass debit cards
    • US: MasterCard launches discount program for business card holders
  • RBS
    • UK: RBS launches mobile banking service
  • Visa
    • Asia Pacific: Visa announces that 20% of its cards are now EMV standard
    • Singapore: UOB launches a contactless credit card with cash rebate
    • Spain: Contactless payments introduced in Madrid
    • Taiwan: Visa to implement mobile platform
    • US: Visa launches contactless payments-enabled key fob
    • US: Shell rolls out Visa partial authorization solution for prepaid cards at US pumps
  • Westpac
    • Australia and New Zealand: Westpac unveils new responsible lending initiative
    • Papua New Guinea: Westpac Bank introduces money transfer services
  • Other
    • China: China UnionPay to offer mobile payment service for utility bills
    • Malaysia: EON Bank to issue contactless debit cards
• M&A, Partnerships and Organic Growth
  • Roundup of the key developments in Q3 2007
    • The third quarter was relatively quiet in terms of mergers and acquisitions.
      • RBS continues to move towards acquiring ABN Amro
      • Meanwhile, American Express has spun off its banking arm to Standard chartered
      • In a move to better target the prepaid market, Capital One acquired Netspend
      • HSBC has been increasing its interests in the Asia Pacific region
    • Several issuers seem to prefer organic growth when expanding into new markets - notably China
    • There has been more activity on the partnerships front
      • American Express and GE Money have been concentrating on growing their cards businesses by issuing through partners in different countries
    • Activity on the processing side has been brisk
      • First Data has been acquired by KKR
      • TSYS has also been active in Europe and the US
  • ANZ Bank
    • Vietnam: ANZ unveils plans for new branches
  • American Express
    • Japan: Mitsubishi UFJ to issue American Express branded products
    • Kazakhstan: American Express launches cards in partnership with Kazkommertsbank
    • US: Harris Bank to issue American Express branded products
  • Barclaycard
    • UK: Barclaycard renews processing contract with TNS
  • BBVA
    • Latin America: First Data and BBVA Bancomer extend payment processing contract
    • US: BBVA completes acquisition of Compass Bancshares
  • Capital One
    • US: Capital One announces acquisition of NetSpend
  • Citigroup
    • China: Citibank receives regulatory approval for Dalian branch
    • Mexico: Banamex launches co-brand with national football team
    • Taiwan: Citibank launches multi-retail co-brand
  • Discover
    • US: Discover expands debit relationship with Bank of America
  • First Data
    • Brazil: First Data announces acquisition of Check Forte Processamento de Dados
    • Germany: First Data gains approval to provide debit card processing
    • Germany: First Data to provide prepaid card processing for Dresdner Bank
    • Germany: First Data announces processing deal with Dresdner-Cetelem Kreditbank
    • Latin America: First Data and BBVA Bancomer extend payment processing contract
    • Poland: First Data finalizes acquisition of POLCARD
    • UK: First Data to take on Experian' s processing business
    • US: First Data announces mobile banking partnership with mFoundry
    • Global: First Data announces processing partnership with Chordiant
    • Global: First Data shareholders approve KKR merger proposal
    • Global: KKR completes acquisition of First Data
  • GE Money
    • India: GE Money announces credit card issuing JV with LIC
    • Japan: GE Money to issue American Express branded products
    • Poland: GE Money acquires majority stake in Bank BPH
    • US: GE Money acquires Chevron' s credit card portfolios
    • US: GE Money and Provident Bank to jointly provide credit cards
  • HSBC
    • China: HSBC establishes Shenyang office
    • China: HSBC enters China' s rural market
    • South Korea: HSBC announces acquisition of majority stake in KEB
    • Vietnam: HSBC to increase shareholding in Techcombank to 15%
  • JCB
    • Japan: Growth in acceptance for JCB cards issued outside Japan
    • Japan: Hitachi and JCB join forces for biometric payments
  • JPMorgan Chase
    • China: JPMorgan Chase wins approval to incorporate in Beijing
  • KBC
    • Russia: KBC to acquire Absolut Bank
  • RBS
    • China: RBS establishes office in Beijing
    • South Korea: RBS in negotiations to open first branch
    • UK/ Netherlands: RBS shareholders back ABN Amro bid
  • Standard Chartered
    • China: Standard Chartered planning to launch credit cards
    • Global: Standard Chartered to acquire American Express Bank
  • TSYS
    • Russia: Tinkoff Credit Systems selects TSYS to provide credit card services
    • UK: TSYS and Lloyds TSB deliver new prepaid card for migrant workers
    • UK: TSYS signs card processing agreement with Nationwide
    • US: TSYS and First Horizon to offer healthcare payment card
    • US: TSYS to provide merchant processing services to Veracity
• Staffing and Strategy
  • Bank of America
    • US: Bank of America increases ATM fees for non-customers
  • Barclaycard
    • US: Barclays announces staff change
    • US: Barclays passes major outstandings milestone
  • Discover
    • Global: Discover announces board changes
  • Visa
    • Visa appoints new CFO
• Appendix
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer