Payment Card Competitor Tracker: September 2011

Introduction

The Payment Card Competitor Tracker provides expert analysis and opinion on the strategic moves of leading competitors in the payment card market. Produced on a monthly basis, the Tracker is a global product and covers over 100 players, including American Express, Barclaycard, Capital One, Citigroup, Discover, GE Money, First Data, HSBC, JCB, MasterCard, Standard Chartered and Visa.

Features and benefits

• 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.

Highlights

• A total of 36 competitor developments are analyzed in the September edition of the Payment Card Competitor Tracker. This remains below the 12-month average of 51, and is significantly down from 64 developments in June, reflecting continual decline through July and August. September has been the slowest month of activity over the previous 12 months.
• The key developments in September were focused primarily on new emerging payment technologies, as has frequently been the case over the past few years. However, unlike many months the most interesting and potentially important developments have all been focused on the mobile space.
• Key developments included Visa Inc's partnering with Google to provide the online giant with a licence to use its Paywave technology, Visa Europe's release of mobile P2P and alert services, and the public backing the US joint venture Isis received from most of the major smartphone handset manufacturers in implementing Isis NFC standards.

Table Of Contents

OVERVIEW
Catalyst
Summary
Methodology

INTRODUCTION
The Payment Card Competitor Tracker provides both one-month and 12-month views of developments
Improvements to the 2011 Payment Card Competitor Tracker series
Each month, Datamonitor tracks the most relevant announcements from over 100 competitors
Datamonitor’s Cards and Payments team provides analysis of the key developments at one-month and 12-month intervals
A fully searchable database of developments from January 2007 onwards is also delivered alongside the report

KEY DEVELOPMENTS IN SEPTEMBER
Developments in September
Mobile: Visa provides Google with worldwide license for payWave
Mobile: HTC, LG, Motorola Mobility, RIM, Samsung Mobile, Sony Ericsson, and DeviceFidelity to implement Isis NFC and technology standards
Mobile: Visa Europe launches mobile person-to-person payment and Visa Alerts services
There were 36 developments in September, well below the 12-month average
The level of competitor activity slowed yet again in September, reflecting a difficult market in most regions
Products, services, and innovation-related developments were below the 12-month average in September
North America had the highest level of activity in September
Issuers accounted for a lower than average level of activity in September
The mobile channel remained the largest sector in September, in line with the 12-month average
M&A accounted for the majority of developments in the M&A, partnerships, and organic growth category

PRODUCTS, SERVICES, AND INNOVATION
American Express
US: American Express launches the American Express eGift Card, a virtual gifting product
US: new American Express merchant financing program offers capital access for small- and medium-sized businesses
ATOS
France: Buyster launches e-commerce payment tool
Bank of America
US: Bank of America launches BankAmericard cash rewards credit card With "One, Two, Three Inning Incentives"
Bank of Montreal
Canada: BMO Bank to issue PayPass near-field communication payment stickers
China UnionPay
China: UnionPay launches UnionPay card overseas emergency cash assistance service
First Data Corporation
Poland: First Data terminals enable card payments at Warsaw’s Marriott Hotel
FirstGroup
UK: FirstGroup delivers contactless payments to entire bus fleet
FNB
South Africa: First National Bank launches Pay2Cell
hyperWALLET
Global: hyperWALLET launches Direct Pay online merchant payment service
ICBC
China: ICBC issues first American Express Platinum credit card in China
ICICI Bank
India: ICICI Bank launches EMV standard cards
NETS
Singapore: NETS launches first non-card stored value payment mode in Singapore
Rabobank
The Netherlands: Rabobank tests NFC payments at Dutch convenience store
Scotiabank
Canada: Scotiabank launches contactless EMV debit cards
Standard Chartered
Kenya: Standard Chartered, Airtel Africa, and MasterCard launch the world’s first virtual shopping card on a mobile phone
Swedbank
Sweden: All Swedbank cards will earn reward points
TD Bank
Canada: TD Canada Trust launches automotive rewards card
TSYS
Europe: TSYS partners with Intelligent Environments to launch mobile app in Europe
US Bancorp
US: US Bank launch mobile-enabled credit card application at select retail locations
Visa
France: new contactless deployment with member banks in Strasbourg
Europe: Visa Europe launches CodeSure Matrix Display card
Europe: Visa Europe launches mobile person-to-person payment and Visa Alerts services
Wells Fargo
US: Wells Fargo enhances rapid alerts service for mobile phone customers
Western Union
US: Western Union and TouchNet to jointly develop payment solutions for universities and international students

M&A, PARTNERSHIPS, AND ORGANIC GROWTH
Blackhawk Network
US: Blackhawk expands its REloadit Network
US: Blackhawk Network announces partnership with Smart & Final
China UnionPay
Spain: UnionPay expects card acceptance in Spain to grow in 2011
Isis
US: HTC, LG, Motorola Mobility, RIM, Samsung Mobile, Sony Ericsson, and DeviceFidelity to implement Isis near-field communication and technology standards
MoneyGram
India: MoneyGram announces a partnership with India Post
Scotiabank
China: Scotiabank to acquire a 19.99% stake in Bank of Guangzhou
Visa
Global: Visa provides Google with worldwide license for payWave
Western Union
Europe, Asia: Western Union reaches the milestone of being connected to over 30,000 ATMs

APPENDIX
Methodology
Further reading
Ask the analyst
Disclaimer

LIST OF FIGURES

Figure: In the September edition of the Payment Card Competitor Tracker , 36 competitor developments are analyzed
Figure: The number of products, services, and innovation developments declined again in September, remaining lower than the 12-month average
Figure: North America had the highest level of activity, accounting for 15 developments in September
Figure: Of 36 developments in September, issuers accounted for 15
Figure: Mobile developments remain the most prolific area of activity
Figure: Partnerships were the most numerous development in the M&A, partnerships, and organic growth category in September