Payment Card Competitor Tracker: Quarter One, 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
• ProductS, Services and Innovation
  • Roundup of the key developments in Q1 2007
    • Card product developments
      • Co-branding has been the focus of the bulk of product development this quarter
      • Further co-branding launches have focused on healthcare and other retail opportunities
      • Discover has launched a product aimed squarely at revolvers
    • Processor product and service developments
      • The biggest development in this area is First Data' s decision to leave the cheque processing business
    • New technologies and product innovation
      • Two trials of mobile payments this quarter suggest that momentum is building behind this concept
      • Activity in contactless payments remains strong across many markets
  • AEON Credit Service
    • Malaysia: AEON Credit announces co-brand in partnership with RedHot Media
    • Malaysia: AEON Credit announces launch of ATM network
  • American Express
    • Jordan: American Express launches Blue
    • UK: MBNA launches Platinum American Express credit card
    • US: American Express announces that over 90 Tully' s Coffee outlets are to accept ExpressPay
    • US: American Express adds bonus mile rewards to Delta Skymiles consumer and small business co-brands
    • US: American Express adds Delta Airlines to its International Airline program
    • US: American Express announces changes to the price and benefits package on its consumer Platinum Card
    • US: American Express announces changes to the price and benefits package on its Business Platinum Card
    • US: American Express announces that the STAPLES Center is to accept ExpressPay
    • US: American Express announces that over 200 ShopRite stores are to accept ExpressPay
  • ANZ Bank
    • Australia: ANZ launches prepaid foreign currency travel card
    • Australia: ANZ and Telstra pilot integrated ATM-Payphone
  • Bank of America
    • Canada: MBNA and MCAP launch co-brand with homeowner related loyalty options
    • UK: MBNA launches Platinum American Express credit card
    • US: Bank of America and MedImpact launch a co-brand card and wider healthcare offering
    • US: Bank of America launches a prepaid card range to provide emergency relief
  • Barclaycard
    • UK: Barclaycard lowers rates on its Premiership and Charity credit cards
    • UK: Barclaycard demonstrates contactless payment acceptance in taxis
  • Capital One
    • US: Capital One launches No Hassle Cash Rewards credit card
  • Citigroup (incl. Diners Club)
    • UK: Citigroup launches variation on its Platinum card with iTunes rewards
  • Discover
    • US: Discover launches reward program for long-term revolvers
    • US: Discover trials mobile phone account management system
  • First Data
    • Australia: First Data to accept CUP in its Cashcard ATM network
    • US: First Data to exit cheque and money order business
  • GE Money
    • China: GE Money announces the launch of a co-brand card in partnership with Auchan
    • US: GE launches co-brand card in partnership with Michael C. Fina
    • US: GE launches consumer credit program in partnership with PJ Trailer Companies
  • HSBC
    • UK: HSBC to target Polish migrant entrepreneurs
    • US: HSBC launches employee-level mobile contactless payment technology trial
  • JCB
    • Asia Pacific: JCB to adopt Visa' s contactless specification
  • JP Morgan Chase
    • Canada: Chase launches new card in Canada
    • US: Chase introduces payroll card program for Randstad
    • US: Chase launches small business card aimed exclusively at contractors
    • US: Chase launches co-brand in partnership with Orvis
    • US: Chase makes donation to American Cancer Society as reward point redemption option
    • US: Chase and Southwest Airlines revamp the loyalty offering on their co-brands
    • US: First USA and Countrywide Financial Corporation launch mortgage reward card
    • US: Chase launches co-brand in partnership with online retailer Zappos.com
  • MasterCard
    • Kuwait: MasterCard launches cardholder discount promotion
    • Switzerland: MasterCard announces first PayPass transaction
    • Taiwan: MasterCard announces mobile payments trial
    • US: MasterCard announces expansion of its contactless acceptance
  • Nordea
    • Finland: Nordea to introduce card personalization services
  • Visa
    • Europe: Visa launches solution to capture regular payments
    • Netherlands: Visa launches V PAY
    • US: Visa announces the expansion of its contactless acceptance
    • US: Visa announces expansion of its prepaid reload network
    • US: Visa rolls out No Signature Required program at San Francisco Giants stadium
  • Westpac
    • Australia: Westpac announces rollout of EMV cards and identify theft insurance
  • Others
    • Netherlands: Rabobank announces NFC trial
• M&A, Partnerships and Organic Growth
  • Roundup of the key developments in Q1 2007
    • Merger and acquisition activity
      • Developing card markets have seen the majority of activity
      • However, there have also been interesting developments in Europe and the US
    • New partnerships and contract renewals
      • Strategic partnerships have also proved a popular entry route into developing markets
      • The merger of BBS and PBS highlights the trend towards consolidation in the European processing sector
    • Organic growth and expansion
      • Citigroup and HSBC have both obtained permission to set up locally incorporated subsidiaries in China
      • PayPal reaches the 35 million account mark in Europe
  • American Express
    • Brazil: American Express and Banco Itaú announce issuing agreement
    • Kuwait: American Express signs partnership deal with Gulf Bank
    • UAE: American Express launches co-brand with Dubai Duty Free
    • US: American Express completes its acquisition of Harbor Payments
    • US: Citibank to offer the American Express Gift Card
  • ANZ Bank
    • Laos: ANZ to acquire a majority stake in Vientiane Commercial Bank
  • Barclaycard
    • Global: Barclays and ABN Amro hold merger talks
    • Norway: Entercard to issue cards for Helgeland Sparebank
  • BBVA
    • China: BBVA completes the signing of its alliance with CITIC
    • US: BBVA announces the acquisition of Compass Bancshares
  • Citigroup (incl. Diners Club)
    • Central America: Citi completes its acquisition of Grupo Financiero Uno
    • China: Citi granted approval to become incorporated bank
    • Japan: Citigroup launches a tender offer for Nikko Cordial
    • Turkey: Citigroup completes its purchase of a stake in Akbank
    • UK: Citigroup announces the acquisition of Egg
    • US: Citigroup acquires corporate prepaid specialist Ecount
  • Erste Bank
    • Croatia: Erste Bank to acquire Diners Club Croatia
    • Ukraine: Erste Bank completes the acquisition of Bank Prestige
  • First Data
    • Australia: First Data renews its processing contract with Cuscal
    • Canada: TASQ technology expands into the Canadian market
    • Global: First Data and NCS form partnership to offer mobile payment services
    • Korea: First Data and INICIS form processing alliance
    • Pakistan: First Data announces processing agreement with Alfalah Bank
    • Poland: First Data to acquire POLCARD
    • Poland: First Data opens Warsaw office
    • US: First Data renews its processing contract with First PREMIER Bank/PREMIER Bankcard
    • US: First Data acquires Size Technologies
    • US: First Data acquires Datawire Communication Networks
    • US: First Data to acquire Instant Cash Services from Wells Fargo
    • US: First Data and PrivaSys announce licensing agreement for emerging payments processing software
    • US: First Data announces the acquisition of Intelligent Results
  • GE Consumer Finance
    • Colombia: GE Money to form a joint venture with Colombia' s Banco Colpatria
    • Honduras: GE Money-BAC joint venture to acquire controlling stake in Banco Mercantil
  • Grupo Santander
    • Chile: Santander Consumer Finance and SKBergé launch joint consumer finance venture
  • HSBC
    • China: HSBC announces the sale of its stake in Ping An Bank
    • China: HSBC obtains final regulatory approval for local incorporation
    • Latin America: HSBC bids to complete ownership of Bancosal and IFB
    • Vietnam: HSBC to double its holding in Techcombank
  • JCB
    • UAE: JCB, ORIX, and Majid Al Futtaim announce joint credit card issuing venture
  • KBC
    • Serbia: KBA reaches agreement on the acquisition of A Banka
    • Czech Republic: KBC moves a step closer in its acquisition of ČSOB
    • Slovakia: Fin-Force opens an office in Bratislava
  • MasterCard
    • Global: eFunds files lawsuit against MasterCard
  • TSYS
    • Mexico: TSYS announces the extension of its agreement with Spira de México
    • Norway: TSYS announces deal to provide card processing for DnB NOR
    • US: TSYS renews processing agreement with Moneris
    • US: TSYS renews processing agreement with Sage Payment Solutions
    • US: TSYS announces deal to provide acquiring processing for NPC
    • US: TSYS announces deal to provide acquiring processing for Clearent
  • Visa
    • Europe: Visa reports strong growth in the use of payment cards
    • US: Visa announces strong growth in commercial card spending
  • Others
    • Europe: PayPal reaches the 35 million account mark
    • Italy: SSB announces acquisition of GIRO Bankcard
    • Italy: Crédit Agricole completes purchase of two banks and 193 branches from Banca Intesa
    • Nordics: BBS and PBS join to form pan-regional processor
    • Nordics: EDB announces the acquisition of CEKAB
• Staffing and Strategy
  • American Express
    • Group: American Express announces board changes
  • ANZ Bank
    • Group: ANZ announces board changes
  • Barclaycard
    • UK: Barclaycard to close Manchester call center
  • Citigroup (incl. Diners Club)
    • Global: Citi announces board changes
    • Global: Citigroup to drop red umbrella as it announces corporate rebranding
  • HSBC
    • Group: HSBC announces board change
  • JCB
    • Group: JCB announces changes to its corporate brand
  • Standard Chartered
    • Group: Standard Chartered announces board changes
  • Westpac
    • Australia: Westpac announces the creation of separate consumer and business banking divisions
• APPENDIX
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer