Payment Card Competitor Tracker: August 2009

Published by: Datamonitor

Published: Sep. 22, 2009

Table of Contents

Overview

Catalyst

Summary

Methodology

Table of Contents

Introduction

The Payment Card Competitor Tracker provides both one month and 12 month views of developments

Each month, Datamonitor tracks the most relevant announcements from 64 competitors

Datamonitor's Cards and Payments Team provides analysis of the key developments at both the one month and 12 month level

A fully searchable database of developments from January 2007 onwards is also delivered alongside the report

Key Developments in August

In August, the key story was the possible development of an open-loop contactless transit system in the US

The Chicago Transit Authority is poised to boost open-loop contactless payments via transit applications

Barclaycard reveals the success of its early assistance service for UK card holders facing financial difficulty

Discover's new advertising campaign focuses on what cardholders 'get back' using card loyalty rewards

There were 58 developments in August, slightly ahead of the 12-month average

There were 58 developments in the August competitor tracker, compared to the 12-month average of 56

Product development and M&A were both responsible for the rise in activity in August

North America and Asia Pacific were the regions with the most competitor activity in August, in line with the 12-month trend

Issuers featured strongly in August, but schemes and associations were also ahead of the 12-month trend

Apart from developments in rewards, new payment technology and the commercial sector were the biggest areas of interest in August

Issuers, schemes and processors are continuing to adopt contactless technology

Commercial sector continues to account for a significant portion of activity among issuers

Mobile technology is also an area of interest for players

Partnerships accounted for the bulk of activity in M&A, partnership and organic growth

There were several notable deals in the Asia Pacific and the US in August

Product, Services and Innovation

China UnionPay

China: China UnionPay launches CUP-standard Shanghai tourism cards

Taiwan: China UnionPay launch card acceptance business

UK: China UnionPay announces the acceptance of CUP cards at all LINK ATMs

Citigroup

Hong Kong: Citi announces the launch reward benefit

India: Citibank announces the launch of Citi Titanium cash rewards credit card

Indonesia: Citi and Giant announce the launch of co-brand card

Indonesia: Citi and AXIS launch 'Auto Reload', an automatic payment service

South Korea: Citibank Korea announces the launch of the Citi International cash check card

Singapore: Citibank launches mobile banking services

The Philippines: Citi announces new rewards and benefits to new and existing credit card holders

Thailand: Citi Global Transaction Services announces the launch of Citibank commercial cards

US: Citi launches mobile banking services to smartphones

Discover

US: The Home Depot to accept Discover Zip payment devices

US: Discover's Cashback Bonus offers cash rewards and bonuses on purchases

First Data

US: First Data launches FD400, a wireless enabled terminal line

Industrial and Commercial Bank of China

China: ICBC and BNY Mellon launch Remit Worldwide

China: ICBC introduces mobile banking 3G

JP Morgan Chase

US: JP Morgan Chase and United Airlines launch three new credit cards

US: JP Morgan Chase offers rewards on every purchase made through Chase Freedom credit card

US: Chase Card Services launches rewards for affluent customers

Mashreqbank

UAE: Mashreqbank launches co-brand with Grand Entertainment

MasterCard

Japan: MasterCard re-launches MasterCard Business Offer program

Taiwan: Cathay United Bank and MasterCard worldwide launch Cathay United Bank PLAY card

US: The Home Depot to accept PayPass

US: Whataburger to accept PayPass

PayPal

US: PayPal launches Student Account

Royal Bank of Canada

Canada: RBC and WestJet launch co-brand

US Bancorp

US: US Bank to add Visa payWave technology to unembossed debit cards issued

Visa

Hong Kong: TurboJET to accept Visa payWave

US: Visa and US Bank launch Syncada, a financial supply chain network

Wells Fargo

US: Wells Fargo introduces online payment feature

Other

US: Chicago Transit Authority poised to implement an open-loop contactless fare collection system

M&A, Partnerships and Organic Growth

American Express

UK: American Express and British Airways renew their partnership

ANZ Bank

Asia: ANZ Bank to acquire select RBS businesses

Bank of America

US: Bank of America and Bottomline Technologies form alliance for electronic payment and invoice network

Bank of Montreal

Canada: BMO Spend & Payment Solutions partners with Tri-Pen TravelMaster

Canada: BMO Spend & Payment Solutions partners with CyberShift

Barclaycard

UK: Barclaycard reveals the success of its early assistance initiative

BBVA

US: BBVA Compass acquires banking operations of Guaranty Bank

BNP Paribas

Argentina: BNP Paribas' Buenos Aires sells its retail banking business to Banco Santander Río

France: BNP Paribas and Intesa Sanpaolo reach agreement on Findomestic

China UnionPay

China: China UnionPay and HNA Group sign agreement

Discover

India: Venture Infotek and Diners Club International sign long-term agreement

First Data

South Africa: First Data acquires CashAxcess to provide ATM deployment services

US: First Data renews transaction processing services agreement with PNC Financial Services group

GE Money

Puerto Rico: GE Money signs multi-year agreement with Rooms To Go to provide consumer finance

US: GE Money renews of Wal-Mart credit card program

US: GE Money signs multi-year agreement with ABC Warehouse

Industrial and Commercial Bank of China

Macau: ICBC established by merging ICBC Macau Branch and Seng Heng Bank

MasterCard

Asia Pacific, Middle East and Africa: MasterCard achieves growth in second quarter of 2009

Asia Pacific, Middle East and Africa: MasterCard announces a 49% increase in dollar volume in its Titanium card program

Latin America and Caribbean region: MasterCard reports growth in second quarter

US: MasterCard and CyberShift collaborate to provide organizations with expense management solution

RBS

Pakistan: RBS Pakistan enters into a sale agreement with MCB Bank

Standard Chartered

Thailand: Standard Chartered bank partners with Major Cineplex group

TSYS

China: China UnionPay Data Services signs five new long- term bankcard processing agreements

US: TSYS and Global Cash Access execute processing services agreement

US Bancorp

US: Elavon extends partnership with KeyCorp

US: Elavon acquires merchant processing portfolio of MB Financial Bank

Visa

Europe: Visa Europe reports a 14% increase in the number of transactions

Appendix

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: The 64 companies and subsidiaries covered by Datamonitor's Payment Card Competitor Tracker

Table 2: Current relevant publications, 2008-09

Table 3: Future relevant publications, 2009

List of Figures

Figure 1: In August, competitor developments saw an increase on the previous month, with 58 developments, in line with the 12-month average of 56

Figure 2: August witnessed a significant rise in the number of developments relating to product, services and innovation, and M&A compared to July

Figure 3: North America and Asia Pacific accounted for the most stories in August, in line with the 12-month trend

Figure 4: Issuers accounted for the most activity in August, with 32 developments in total, in line with the 12-month trend

Figure 5: New payment technologies, rewards and the commercial sector were the key areas for developments in product, services and innovation in August

Figure 6: Partnerships accounted for the majority of developments in August, with 15 announcements it total

Abstract

• Gain invaluable information on your key competitors in one concise document, and track long-term trends using the interactive news database.
• Sharpen your strategy by implementing the best market, product, competitor and strategic developments of leading global players.
• Learn the Datamonitor Cards & Payments Team's view on the most important competitor developments in the month.

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