RPT-BUY OR SELL-In prepaid cards, Green Dot swipes NetSpend Reuters
Americans are expected to more than treble the amount of money loaded on to prepaid debit cards to $118 billion within two years -- a lucrative prize for two small, pure-play companies competing in this growth market.
Both Green Dot Corp (GDOT.N) and NetSpend Holdings (NTSP.O) recently listed, but the former's ties with major retailers like minority stakeholder Wal-Mart Stores Inc (WMT.N) gives it the edge, analysts say.
The fast-growth prepaid card sector is aimed primarily at younger, low-income and under-banked consumers who rely on cash and don't have much access to credit.
22 November 2010
Mint Announces Filing of National Instrument 52-109 Certificates
PR-CANADA.net - Mint Announces Filing of National Instrument 52-109 Certificates
Mint Technology Corp. (TSX VENTURE:MIT) today announced that that it has, in accordance with National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings, re-filed the certifications of the Chief Executive Officer and the Chief Financial Officer of Mint.
The re-filed forms are in the form now required under National Instrument 52-109. In addition, Mint has elected to use the version of those forms which is permitted for venture issuers and which does not contain any of the certifications described in items (i) through (iv) of the fourth paragraph.
The re-filings were made as a result of participation in the Ontario Securities Commission's Continuous Disclosure Review Program.
Mint Technology Corp. (TSX VENTURE:MIT) today announced that that it has, in accordance with National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings, re-filed the certifications of the Chief Executive Officer and the Chief Financial Officer of Mint.
The re-filed forms are in the form now required under National Instrument 52-109. In addition, Mint has elected to use the version of those forms which is permitted for venture issuers and which does not contain any of the certifications described in items (i) through (iv) of the fourth paragraph.
The re-filings were made as a result of participation in the Ontario Securities Commission's Continuous Disclosure Review Program.
China UnionPay and American Express to Explore Opportunities Inside and Outside China
China UnionPay and American Express to Explore Opportunities Inside and Outside China Business Wire
China UnionPay and American Express today announced that they have signed a memorandum of understanding that calls for both companies to explore the expansion of their current cooperative activities. For the past several years, China UnionPay and American Express have cooperated within China where American Express Cards run on the China UnionPay network. This new MOU will establish working teams to develop potential new areas of cooperation between the two companies within China and in markets outside of China.
China UnionPay and American Express today announced that they have signed a memorandum of understanding that calls for both companies to explore the expansion of their current cooperative activities. For the past several years, China UnionPay and American Express have cooperated within China where American Express Cards run on the China UnionPay network. This new MOU will establish working teams to develop potential new areas of cooperation between the two companies within China and in markets outside of China.
Colleges & Universities Partner with Blackboard to Streamline Delivery of Millions in Financial Aid
Colleges & Universities Partner with Blackboard to Streamline Delivery of Millions in Financial Aid
Blackboard Inc. (Nasdaq: BBBB) today announced that three colleges and universities - the first to implement the new BlackboardPay(TM) prepaid card program - will deliver over $40 million in financial aid to students through the service.
The University of Texas at Tyler (UT Tyler), Georgia Gwinnett College and Jones County Junior College in Mississippi have used BlackboardPay to simplify financial aid and student payroll disbursements while cutting costs and lowering or eliminating student fees.
Blackboard Inc. (Nasdaq: BBBB) today announced that three colleges and universities - the first to implement the new BlackboardPay(TM) prepaid card program - will deliver over $40 million in financial aid to students through the service.
The University of Texas at Tyler (UT Tyler), Georgia Gwinnett College and Jones County Junior College in Mississippi have used BlackboardPay to simplify financial aid and student payroll disbursements while cutting costs and lowering or eliminating student fees.
The Smartphone Payments Train’s Leaving the Station
The Smartphone Payments Train’s Leaving the Station - Bank Technology News
The earth is shifting under the mobile payments market, with new technologies and product rollouts coming fast, and firms that miss the shifts in the market will be at a decided disadvantage.
New research from Aite Group says the rapid consumer adoption of smartphones and m-commerce, carrier and handset manufacturer adoption of NFC chips, and the growth in mobile baking are expanding the domestic mobile payments market quickly.
Despite the coming spike, much of the financial services and payments industries still have a learning curve. Gwenn Bezard, research director at Aite Group, says “many organizations industry remain unaware that mobile payments are in a period of rapid transformation. And firms that have any desire to play a role in this market must wake up now.”
The earth is shifting under the mobile payments market, with new technologies and product rollouts coming fast, and firms that miss the shifts in the market will be at a decided disadvantage.
New research from Aite Group says the rapid consumer adoption of smartphones and m-commerce, carrier and handset manufacturer adoption of NFC chips, and the growth in mobile baking are expanding the domestic mobile payments market quickly.
Despite the coming spike, much of the financial services and payments industries still have a learning curve. Gwenn Bezard, research director at Aite Group, says “many organizations industry remain unaware that mobile payments are in a period of rapid transformation. And firms that have any desire to play a role in this market must wake up now.”
Prepaid Expo: Study Says Prepaid is Primed For International Expansion
Prepaid Expo: Study Says Prepaid is Primed For International Expansion
If there’s any truth to the old business adage, “You’re either growing or you’re dying, “ then the prepaid industry is living LARGE overseas!
I recently received some topline stats from Mercator Advisory Group’s inaugural Global Prepaid Card Market Potential Ranking (2010), and the numbers make a compelling case for crossing the pond.
While the U.S. prepaid market – with roughly $330B in loads since 2009 – will likely remain the undisputed 600lb gorilla for years to come, Mercator’s results indicate the rest of the world is primed for prepaid.
If there’s any truth to the old business adage, “You’re either growing or you’re dying, “ then the prepaid industry is living LARGE overseas!
I recently received some topline stats from Mercator Advisory Group’s inaugural Global Prepaid Card Market Potential Ranking (2010), and the numbers make a compelling case for crossing the pond.
While the U.S. prepaid market – with roughly $330B in loads since 2009 – will likely remain the undisputed 600lb gorilla for years to come, Mercator’s results indicate the rest of the world is primed for prepaid.
Travel cards in vogue as more Indians globetrot
Travel cards in vogue as more Indians globetrot - Money - DNA:
With more Indians travelling abroad, banks and card companies have sniffed a big opportunity. They are launching preloaded cards which travellers can use for shopping and other purposes overseas.
The cards stacked with multiple benefits provide an alternative to cash and traveller cheques. Since the cards are pre-loaded with the currency of the country the traveller is visiting, they protect against fluctuations in foreign exchange rates.
With more Indians travelling abroad, banks and card companies have sniffed a big opportunity. They are launching preloaded cards which travellers can use for shopping and other purposes overseas.
The cards stacked with multiple benefits provide an alternative to cash and traveller cheques. Since the cards are pre-loaded with the currency of the country the traveller is visiting, they protect against fluctuations in foreign exchange rates.
Green Dot Survey Finds Majority of Holiday Shoppers Are Avoiding Credit Cards as Primary Form of Payment
Green Dot Survey Finds Majority of Holiday Shoppers Are Avoiding Credit Cards as Primary Form of Payment - MarketWatch
As Black Friday and Cyber Monday deals usher in the holiday shopping season, a new online survey conducted in November by Harris Interactive for Green Dot, a leading prepaid financial services company, finds the majority of holiday shoppers are shunning credit as their primary form of payment this holiday season. Concerned about adding debt to their holiday shopping cart, 69% of shoppers plan to primarily use available funds, such as debit cards, cash, checks, gift cards as well as prepaid cards to pay for gifts this year.
In their quest to avoid debt, 25% of consumers who used their credit card for holiday shopping last year said that they are less likely to use credit cards for purchases this year, and in fact, 1 in 10 said they will not be using them at all."
As Black Friday and Cyber Monday deals usher in the holiday shopping season, a new online survey conducted in November by Harris Interactive for Green Dot, a leading prepaid financial services company, finds the majority of holiday shoppers are shunning credit as their primary form of payment this holiday season. Concerned about adding debt to their holiday shopping cart, 69% of shoppers plan to primarily use available funds, such as debit cards, cash, checks, gift cards as well as prepaid cards to pay for gifts this year.
In their quest to avoid debt, 25% of consumers who used their credit card for holiday shopping last year said that they are less likely to use credit cards for purchases this year, and in fact, 1 in 10 said they will not be using them at all."
18 November 2010
Prepaid grows more popular
Prepaid grows more popular Herald Sun
Shoppers, travellers, credit card holders and even parents of teenagers are cashing in on the growing trend.
Datamonitor senior analyst Harry Senlitonga says new research has found that Australians are bigger users of the variety of prepaid cards now available than the British but not as much as the Americans.
'The biggest user of prepaid cards in the US is the illegal immigrant, because they can't open a bank account,' he says.
Senlitonga says prepaid travel cards which can hold multiple currencies on one card have become popular, while major banks are introducing prepaid Visa and MasterCards.
Shoppers, travellers, credit card holders and even parents of teenagers are cashing in on the growing trend.
Datamonitor senior analyst Harry Senlitonga says new research has found that Australians are bigger users of the variety of prepaid cards now available than the British but not as much as the Americans.
'The biggest user of prepaid cards in the US is the illegal immigrant, because they can't open a bank account,' he says.
Senlitonga says prepaid travel cards which can hold multiple currencies on one card have become popular, while major banks are introducing prepaid Visa and MasterCards.
Goodbye, checks: State governments move to paying by debit cards, direct deposit
Goodbye, checks: State governments move to paying by debit cards, direct deposit
Following the federal government's lead, state governments are migrating more payments -- for everything from unemployment to child support -- away from paper checks.
But while some experts hail the move to debit cards and direct deposit as safe and convenient for consumers, it also brings a list of rules, restrictions and fees that can trip up consumers who don't do their homework.
The movement away from getting government payments via checks is clear. The federal goverment soon will mandate that payments be received by direct deposit or debit card. For recipients of state benefits and state-administered payments, the same holds true: For many, debit cards and direct deposit are now the only ways to receive payments.
Following the federal government's lead, state governments are migrating more payments -- for everything from unemployment to child support -- away from paper checks.
But while some experts hail the move to debit cards and direct deposit as safe and convenient for consumers, it also brings a list of rules, restrictions and fees that can trip up consumers who don't do their homework.
The movement away from getting government payments via checks is clear. The federal goverment soon will mandate that payments be received by direct deposit or debit card. For recipients of state benefits and state-administered payments, the same holds true: For many, debit cards and direct deposit are now the only ways to receive payments.
10 November 2010
Pre-paid cards are great for debt-free spending - The Economic Times
Pre-paid cards are great for debt-free spending - The Economic Times
In today's society, the convenience, flexibility, security and benefits that payment cards offer have made them immensely popular. In addition to credit and debit card ., prepaid cards have also been steadily gaining in popularity.
What are prepaid cards?:
A prepaid card looks like a classic credit card , but works more like a debit card. There are no finance fees or interest since charges are deducted from a balance that you pre-pay. Coupled with guaranteed approval and the ability to withdraw money from ATMs, a pre-paid card is a great option for many consumers.
The concept of prepaid cards is really very simple. You open an account and “pre-load” the card with cash upfront, similar to a pre-paid calling card.
Once the balance is consumed by charges or ATM cash withdrawals, the card must be recharged with more funds via a cash deposit or wire transfer. In this way, you’ll never have any problems with spending more money than you can afford, and you avoid costly interest charges."
In today's society, the convenience, flexibility, security and benefits that payment cards offer have made them immensely popular. In addition to credit and debit card ., prepaid cards have also been steadily gaining in popularity.
What are prepaid cards?:
A prepaid card looks like a classic credit card , but works more like a debit card. There are no finance fees or interest since charges are deducted from a balance that you pre-pay. Coupled with guaranteed approval and the ability to withdraw money from ATMs, a pre-paid card is a great option for many consumers.
The concept of prepaid cards is really very simple. You open an account and “pre-load” the card with cash upfront, similar to a pre-paid calling card.
Once the balance is consumed by charges or ATM cash withdrawals, the card must be recharged with more funds via a cash deposit or wire transfer. In this way, you’ll never have any problems with spending more money than you can afford, and you avoid costly interest charges."
08 November 2010
Venture Capital Firms Discover That Finance Startups Can Make Good Investments
Venture Capital Firms Discover That Finance Startups Can Make Good Investments - Industry News - Portfolio.com
While the entrepreneurial part of the financial-services industry hasn’t generated as many home runs for venture backers as, say, technology, there have been and remain opportunities for payoffs. PayPal, for instance, generated big returns for its investors when eBay bought it for $1.5 billion in late 2002. Now, many venture investors are looking for big payoffs on another kind of payment system, prepaid debit cards such as those issued by Green Dot Corp. and NetSpend Corp. (which have won funding from premier venture firms Sequoia Capital, in the case of Green Dot, and Oak Investment Partners, in the case of NetSpend). Netspend went public last month at a price of $11 a share and closed Thursday at $15.23 a share; Green Dot’s IPO in July was a success, with the stock closing Thursday at $53.12 a share, up from the $36 IPO price.
Rosen sees these transactions reflecting one of four big trends in financial-services startups post-crisis: the effort by consumers to manage their financial lives. While prepaid debit cards like those offered by Green Dot and Netspend are typically pitched to the under-banked (those who rely on check-cashing outlets rather than banks), they are also being used by customers who want to take control of their spending habits and try to avoid depleting their bank accounts or running up hefty credit-card bills.
While the entrepreneurial part of the financial-services industry hasn’t generated as many home runs for venture backers as, say, technology, there have been and remain opportunities for payoffs. PayPal, for instance, generated big returns for its investors when eBay bought it for $1.5 billion in late 2002. Now, many venture investors are looking for big payoffs on another kind of payment system, prepaid debit cards such as those issued by Green Dot Corp. and NetSpend Corp. (which have won funding from premier venture firms Sequoia Capital, in the case of Green Dot, and Oak Investment Partners, in the case of NetSpend). Netspend went public last month at a price of $11 a share and closed Thursday at $15.23 a share; Green Dot’s IPO in July was a success, with the stock closing Thursday at $53.12 a share, up from the $36 IPO price.
Rosen sees these transactions reflecting one of four big trends in financial-services startups post-crisis: the effort by consumers to manage their financial lives. While prepaid debit cards like those offered by Green Dot and Netspend are typically pitched to the under-banked (those who rely on check-cashing outlets rather than banks), they are also being used by customers who want to take control of their spending habits and try to avoid depleting their bank accounts or running up hefty credit-card bills.
China UnionPay cooperates with Interbank for card acceptance in Peru
China UnionPay cooperates with Interbank for card acceptance in Peru
China's bankcard association, China UnionPay (CUP), said Monday it has signed an agreement with Peru's Interbank to extend CUP card services to Peru. Interbank's ATM machines will begin accepting CUP cards in four months.
Other businesses -- CUP card merchant acceptance, card issuance and online banking -- will be jointly launched in the near future, the agreement said.
Cai Jianbo, executive vice president of CUP, said trade between China and Peru has become increasingly frequent since the two countries signed their free trade agreement in April 2009.
China's bankcard association, China UnionPay (CUP), said Monday it has signed an agreement with Peru's Interbank to extend CUP card services to Peru. Interbank's ATM machines will begin accepting CUP cards in four months.
Other businesses -- CUP card merchant acceptance, card issuance and online banking -- will be jointly launched in the near future, the agreement said.
Cai Jianbo, executive vice president of CUP, said trade between China and Peru has become increasingly frequent since the two countries signed their free trade agreement in April 2009.
Heartland and Visa Reach $60 Million Breach-Settlement Agreement
Heartland and Visa Reach $60 Million Breach-Settlement Agreement - PaymentsSource Article
Heartland Payment Systems Inc. and Visa Inc. on Jan. 8 announced they have reached a settlement agreement in which Heartland will pay up to $60 million to Visa Inc. card issuers for damages sustained from the 2008 breach into the payment processor’s network.
Heartland Payment Systems Inc. and Visa Inc. on Jan. 8 announced they have reached a settlement agreement in which Heartland will pay up to $60 million to Visa Inc. card issuers for damages sustained from the 2008 breach into the payment processor’s network.
NovoTech hosts first prepaid card workshop in Riyadh
NovoTech hosts first prepaid card workshop in Riyadh Novotech AMEinfo.com
With the announcement of the guidelines for prepaid cards and payments expected in the next few weeks, Saudi Arabia is set to continue with the successful transformation of its largely cash based economy to electronic and card based transactions.
Colin Loubser, Chief Operating Officer of NovoTech, which is hosting the first prepaid card workshop ever in The Globe in Riyadh said "We recognised last year that the Kingdom would embrace prepaid cards and services and have been researching the market since then, looking for opportunities to support and service the financial services sector as they embrace this new industry.
With the announcement of the guidelines for prepaid cards and payments expected in the next few weeks, Saudi Arabia is set to continue with the successful transformation of its largely cash based economy to electronic and card based transactions.
Colin Loubser, Chief Operating Officer of NovoTech, which is hosting the first prepaid card workshop ever in The Globe in Riyadh said "We recognised last year that the Kingdom would embrace prepaid cards and services and have been researching the market since then, looking for opportunities to support and service the financial services sector as they embrace this new industry.
Middle East smart card market set to grow
Middle East smart card market set to grow
The increasing requirement for easy access, stringent security and improved payment methods are the main drivers for the increased adoption of smart cards in the Middle East and North Africa market. The primary applications are likely to be health cards, driver's license, and the conditional access system television; however the biggest demand will be generated from the telecommunications segment due to a change from fixed line telephony to mobile telephony. This market is expected to account for 64.5% of smart card sales. The last five years have shown that the Middle East and North African region has increased homeland security by employing the use of smart card-based security to reduce the amount of forged documents and fraud in existing applications. The key areas of concern are illegal immigration and the necessity of high-level precautions in the government administration. Smart card suppliers are concentrating on providing a secure and customized solution for both the government and private divisions.
Governments from various countries in the Middle East and North Africa region are currently examining and constructing a comprehensive database of citizens, immigrants and expats for national identity card ventures. Lone government agencies are also following a range of government schemes to increase the chances of this project being successful. Utilising a complete database, protecting the information from government-related projects, and implanting various government projects involve a straight forward and time consuming method. Supply companies with technological resources are expected to flourish due to the increasing opportunities produced by these large government initiatives.
The increasing requirement for easy access, stringent security and improved payment methods are the main drivers for the increased adoption of smart cards in the Middle East and North Africa market. The primary applications are likely to be health cards, driver's license, and the conditional access system television; however the biggest demand will be generated from the telecommunications segment due to a change from fixed line telephony to mobile telephony. This market is expected to account for 64.5% of smart card sales. The last five years have shown that the Middle East and North African region has increased homeland security by employing the use of smart card-based security to reduce the amount of forged documents and fraud in existing applications. The key areas of concern are illegal immigration and the necessity of high-level precautions in the government administration. Smart card suppliers are concentrating on providing a secure and customized solution for both the government and private divisions.
Governments from various countries in the Middle East and North Africa region are currently examining and constructing a comprehensive database of citizens, immigrants and expats for national identity card ventures. Lone government agencies are also following a range of government schemes to increase the chances of this project being successful. Utilising a complete database, protecting the information from government-related projects, and implanting various government projects involve a straight forward and time consuming method. Supply companies with technological resources are expected to flourish due to the increasing opportunities produced by these large government initiatives.
05 November 2010
FNDS3000 Corp Reports Additional Cost Cutting Measures
FNDS3000 Corp Reports Additional Cost Cutting Measures
FNDS3000 Corp (OTC Bulletin Board: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced that it has implemented additional savings in U.S. corporate overhead expenses which, in connection with previously announced corporate staff and expense reductions, have helped the Company to free up approximately $1 million in cash and working capital over the next 12 months, which will be redeployed to support and consolidate growth of its South African prepaid card business.
Raymond Goldsmith, Chairman and CEO of FNDS3000, noted, 'Make no mistake that FNDS3000 is on a mission to build a successful and enduring company and win distinction as a major player in the global prepaid industry. To that end, it is essential that we demonstrate an ability to achieve and sustain profitability in all areas of our operations.'
FNDS3000 Corp (OTC Bulletin Board: FDTC), an international prepaid processing company currently introducing electronic payment solutions to the South African market, today announced that it has implemented additional savings in U.S. corporate overhead expenses which, in connection with previously announced corporate staff and expense reductions, have helped the Company to free up approximately $1 million in cash and working capital over the next 12 months, which will be redeployed to support and consolidate growth of its South African prepaid card business.
Raymond Goldsmith, Chairman and CEO of FNDS3000, noted, 'Make no mistake that FNDS3000 is on a mission to build a successful and enduring company and win distinction as a major player in the global prepaid industry. To that end, it is essential that we demonstrate an ability to achieve and sustain profitability in all areas of our operations.'
04 November 2010
Fed Proposes Prepaid Card Rules
Fed Proposes Prepaid Card Rules - Electronic Transactions Association:
The Federal Reserve Board on Monday announced proposed rules that would restrict the fees and expiration dates that may apply to gift cards. The rules would protect consumers from certain unexpected costs and would require that gift card terms and conditions be clearly stated
The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded
The Federal Reserve Board on Monday announced proposed rules that would restrict the fees and expiration dates that may apply to gift cards. The rules would protect consumers from certain unexpected costs and would require that gift card terms and conditions be clearly stated
The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded
03 November 2010
Green Dot Q3 profit beats Street, gives upbeat FY view
UPDATE 2-Green Dot Q3 profit beats Street, gives upbeat FY view Reuters
Prepaid debit card company Green Dot Corp (GDOT.N) reported a third-quarter profit that topped Wall Street estimates, boosted by a rise in card and interchange revenue, and forecast an 80 percent increase in gross dollar volume for 2010.
The top player in the prepaid debit card space also said it expects adjusted total operating revenue of $370 million and $380 million for the full year.
Full-year revenue should come in at the top end of that guidance, analyst John Kraft of DA Davidson said.
Companies like Green Dot and rival NetSpend (NTSP.O) -- which went public in July and October, respectively -- sell their cards to low-income consumers who rely heavily on cash and do not have much access to credit.
Prepaid debit card company Green Dot Corp (GDOT.N) reported a third-quarter profit that topped Wall Street estimates, boosted by a rise in card and interchange revenue, and forecast an 80 percent increase in gross dollar volume for 2010.
The top player in the prepaid debit card space also said it expects adjusted total operating revenue of $370 million and $380 million for the full year.
Full-year revenue should come in at the top end of that guidance, analyst John Kraft of DA Davidson said.
Companies like Green Dot and rival NetSpend (NTSP.O) -- which went public in July and October, respectively -- sell their cards to low-income consumers who rely heavily on cash and do not have much access to credit.
South Africa: Absa Bank opts for Oberthur Technologies for its dual prepaid smart card
The Paypers. Insights in payments.
South African bank Absa has selected US provider of smart card-based services Oberthur as the supplier of the latter’s prepaid MasterCard contactless payment card based on the PayPass technology.
The newly-announced partnership represents the first launch of dual-interface payment technology on the African continent, to enable both contact and contactless payment transactions Dual interface cards are already being used by banks in Europe, Asia, Middle East and Canada.
In addition, the card has been designed for use in retail outlets throughout South Africa. Moreover, the card is also set to be used as a transport token in South Africa's integrated transport system, implemented by the National Department of Transport.
South African bank Absa has selected US provider of smart card-based services Oberthur as the supplier of the latter’s prepaid MasterCard contactless payment card based on the PayPass technology.
The newly-announced partnership represents the first launch of dual-interface payment technology on the African continent, to enable both contact and contactless payment transactions Dual interface cards are already being used by banks in Europe, Asia, Middle East and Canada.
In addition, the card has been designed for use in retail outlets throughout South Africa. Moreover, the card is also set to be used as a transport token in South Africa's integrated transport system, implemented by the National Department of Transport.
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