Payment Card Competitor Tracker, Quarter Two 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 Q2 2007
    • Card product developments
      • Prepaid card offering is growing in the UK and the US
      • American Express introduces mortgage payments credit card
    • New technologies and product innovation
      • MasterCard and Visa rollout contactless payments to taxis and airport car parks in the US
      • Activity in contactless payments remains strong across other markets
      • There has been a number of developments in mobile technology
      • Visa and Maybank launch person-to-person (P2P) payments service
  • AEON Credit Service
    • Malaysia: AEON Credit and AGS launch a golf-themed card
    • Malaysia: AEON Credit launches ATM network
    • Malaysia: AEON Credit launches MMSDA affinity card
  • American Express
    • Argentina: Banco Privado launches American Express card
    • Asia Pacific: Westpac introduced Westpac American Express card
    • US: American Express introduces mortgage payments credit card
    • US: American Express launches three special occasion gift cards
    • US: Bank of America launches American Express credit card to target affluent customers
  • ANZ
    • Indonesia: ANZ bank introduces the World MasterCard card
    • Vietnam: Sacombank and ANZ form money transfer alliance
  • Bank of America (incl. MBNA)
    • UK: MBNA launches AOL co-brand credit card
    • US: Bank of America completes mobile banking rollout
    • US: Bank of America launches American Express credit card to target affluent customers
  • Barclaycard
    • UK: Barclays introduced PINsentry online banking security feature
    • UK: Barclaycard to offer green credit card
    • UK: Barclays introduces mobile payment service
    • UK: Barclaycard signs first retail partner for contactless payments
  • Citigroup (incl. Diners Club)
    • Malaysia: Citibank launches cashback Gold card
    • Philippines: Citibank offers mobile prepaid reload service
    • Taiwan: Citibank Taiwan launches 24-hour credit card approval service
    • Thailand: Citibank offers more benefits in six popular spending categories
    • Turkey: Citibank and Akbank to share ATM networks
    • US: Citibank introduces Citi Mobile
  • Discover
    • US: Discover Card reintroduces cashback bonus credit products
    • US: Discover and First Data lauch payroll cards
  • First Data
    • Global: First Data furthers NFC play with ViVOtech investment
    • UK: First Data launches Vue cinema gift card program
    • US: Coinstar to offer Money Network Pay Card through Coinstar Kiosks
    • US: Discover and First Data to deliver Discover Network payroll cards
  • GE Consumer Finance
    • Global: GE Money and eBay offer eBay MasterCard
    • US: Wal-Mart to introduce prepaid Visa cards with GE Money
  • HSBC
    • UK: HSBC offers two new interest-free credit cards
  • JCB
    • Japan: JCB and Collis launch contactless card testing product
  • JP Morgan Chase
    • Canada: Chase announces changes to Sears Club loyalty program
    • US: Sheetz and Chase Card Services announces changes Sheetz co-brand
    • US: JP Morgan Chase lauched prepaid card for the reciept of the unemployment benefit
  • MasterCard
    • Taiwan: MasterCard announces the official lauch of contactless transport card
    • US: MasterCard announces PayPass acceptance at US Airports parking areas
  • RBS
    • UK: RBS announces balance transfer offers
  • TSYS
    • Qatar: TSYS to offer EMV-compliant issuance processing services
    • UK: Norwich Union and TSYS announce prepaid rewards card pilot
  • Visa
    • Canada: Visa to launch Visa PayWave
    • Singapore: Visa and Maybank launch person-to-person (P2P) payments service
    • US: Visa and Creative Mobile Technologies partner to bring contactless payments to thousands of New York Taxis
    • US: Wells Fargo and Visa launch mobile payment pilot
  • Westpac
    • Australia: Westpac forced to block cards after security breach
    • Pacific: Westpac introduces Westpac American Express card
• M&A, Partnerships, and Organic Growth
  • Roundup of the key developments in Q2 2007
    • Organic growth and expansion
      • Several major banks have commenced yuan business in China
      • Barclaycard launched its first credit cards in India and United Arab Emirates
    • Merger and acquisition activity
      • Several players have looked to make strategic acquisitions
    • New partnerships and contract renewals
      • Strategic partnerships have also proved a popular entry route into developing markets
  • Bank of America (incl. MBNA)
    • Canada: MBNA to purchase CUETS
    • China: Bank of America and China Construction Bank enter into credit card joint-venture
    • US: Bank of America announces acquisition of LaSalle
  • Barclaycard
    • India: Barclaycard launches first credit card in India
    • United Arab Emirates: Barclaycard launches credit cards in the UAE
  • BBVA
    • US: BBVA approves the capital increase for the acquisition of Compass Bank
  • Citigroup (incl. Diners Club)
    • China: Citi officially launches as a locally incorporated bank in China
    • UK: Citgroup announces acquisition of Egg
  • Erste Bank
    • Croatia: Erste Bank completes acquisition of Diners Club Adriatic
  • First Data
    • Canada: First Data extends processing contract with Laurentian Bank of Canada
    • Germany: First Data extends processing contract with Dresdner Bank to 2012
    • Group: KKR to purchase First Data
    • Saudi Arabia: First Data announces five-year card processing contract with Saudi issuer
    • US: First Data finalizes acquisition of Instant Cash Services
    • US: First Data closes acquisition of FundsXpress
  • GE Consumer Finance
    • Poland: GE Money in talks to acquire BPH stake from UniCredit
    • US: GE Money extends credit card issuing agreement with Lowe' s to 2016
    • US: GE Money extends card issuing agreement with the Andersons
  • Grupo Santander
    • Group: Grupo Santander together with RBS and Fortis to acquire ABN Amro
    • Italy: Santander completes Intesa Sanpaolo stake sell-off
  • HSBC
    • China: HSBC launches locally incorporated bank
    • Russia: HSBC obtains retail banking license
  • KBC
    • Russia: KBC acquires majority stake in Absolut Bank
    • Serbia: KBC completes takeover of A Banka
  • RBS
    • Group: RBS together with Grupo Santander and Fortis bid to acquire ABN Amro
    • US: RBS and Bank of America end talks over LaSalle dispute
    • US: RBS Lynk to process credit cards for Alon USA
  • Standard Chartered
    • China: Standard Chartered launches first sub-branch
  • TSYS
    • US: TSYS renews renews processing contract with MMS
  • Westpac
    • China: Westpac receives approval to open Shanghai branch
• Staffing and Strategy
  • Bank of America
    • US: Steve Raftopoulos to head Bank of America' s Middle market M&A efforts
  • Barclaycard
    • Spain: Barclays appoints its new top executives in Spain
  • Capital One
    • Group: Capital One to announces 2,000 job losses in cost-cutting initiative
  • Citigroup
    • Group: Citigroup unveils global brand advertising campaign
  • Discover
    • Group: Discover announces board changes following the spin-off from Morgan Stanley
  • Erste Bank
    • Romania: Erste Bank announces changes to its management team
  • First Data
    • South Korea: First Data appoints new CEO of South Korea Operations
  • HSBC
    • Asia: Emerging markets specialist becomes CEO for HSBC in Asia
  • JCB
    • Japan: JCB announces the new brand slogan
    • Japan: JCB appoints new President and CEO
  • JP Morgan Chase
    • US: Gordon Smith appointed head of credit card group
  • MasterCard
    • Global: MasterCard and FIFA Reach Settlement
  • Nordea
    • Group: Nordea announces new group stucture
  • RBS
    • South Korea: RBS Appoints Sy Choi as Head of Global Banking & Markets for South Korea
  • Standard Chartered
    • Asia: Standard Chartered appoints as Chief Executive for North East Asia
  • Visa
    • Global: Visa announces corporate restructure
    • Global: Visa announces new chairman and CEO
    • Global: Visa Confirms Global FIFA Relationship
• Appendix
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer