Payment Card Competitor Tracker: February 2011

Introduction

The new and improved 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 has been expanded to over 100+ players, including American Express, Barclaycard, Capital One, Discover, 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

There are 41 competitor developments analyzed in the February edition of the Payment Card Competitor Tracker. This was below the 12-month average of 49 developments, and below the highs seen in December (63) and April (57), but was significantly higher than the low point reached in August (30).

February saw transport operator Transport for London (TfL) announce that it would begin accepting open loop contactless payment cards from 2012 onwards. The roll out will begin on London buses before expanding to the tube and overground rail networks. This will expand on the already popular closed loop Oyster card contactless ticketing system.

The mobile space saw particularly strong growth in February with twice the number of developments compared to the 12 month average. In the online space, the market for payments for digital goods became more competitive with Visa's acquisition of US based PlaySpan.

Your key questions answered

• What have been the key new product developments in the industry this month, particularly in contactless, mobile, online and prepaid?
•  Which players are leading the way with these new developments, and where are they occurring?
•   How have trends in competitor activity changed over time, and which regions are becoming more active?

Table Of Contents

OVERVIEW
Catalyst
Summary
Methodology

INTRODUCTION
The Payment Card Competitor Tracker provides both one-month and 12-month views of developments
Improvements in the 2011 Payment Card Competitor Tracker series
Each month, Datamonitor tracks the most relevant announcements from 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 FEBRUARY
Developments in the contactless, mobile, online, and prepaid sectors in February
Contactless: Transport for London is to accept general purpose contactless cards at its ticket barriers
Mobile: Visa partners with Monitise to supply mobile payment services for Europe
Online: Visa expands into virtual goods transactions with the acquisition of PlaySpan
There were 41 developments in February, below the 12-month average of 49
The level of competitor activity declined in February following a 12-month high in January, falling to its lowest level since August
Products, services, and innovation-related developments were below the annual average in February
Developments in mobile were at the forefront of activity in February
Partnerships accounted for the majority of developments in the M&A, organic growth, and partnerships category

PRODUCTS, SERVICES, AND INNOVATION
Atos Origin
France: Atos Origin launches Buyster, a payment solution for fixed and mobile Internet purchases
Bank of America
UK: MBNA launches a Rate for Life credit card
Barclaycard
UK: Barclaycard announces mobile web banking service
UK: Barclaycard offers 18 months interest free on balance transfers
Blackhawk Network
US: Blackhawk Network launches a mobile application to send personalized e-gift cards
Capital One
US: Capital One launches the Journey Student Rewards credit card
CIBC
Canada: CIBC announces the launch of three MasterCard credit cards
CIMB
Malaysia: CIMB launches Visa Signature credit card
Citigroup
Argentina: Citi announces the launch of the Visa Signature credit card
Honduras: Citi launches the Citi Multiplaza and Metromall credit cards
South Korea: Citibank and Megastudy launch co-branded card
Crédit Agricole
France: Gemalto signs contract with Crédit Agricole
Discover
US: Discover announces rewards for its card holders
EZ-Link
Singapore: EZ-Link partners with Travelmania to launch travel and sightseeing pass for tourists
First Bank of Nigeria
Nigeria: First Bank of Nigeria announces the launch of biometric ATMs
Fidelity Information Services
US: NYCE signs contract with CashEdge to offer a person-to-person payment solution
hyperWALLET
Global: hyperWALLET partners with Wireless Industry Partnership
MasterCard
Kenya: MasterCard launches virtual mobile phone card in association with airtel Africa and Standard Chartered Bank
Nigeria: MasterCard and InterSwitch launch a co-branded debit card
MoneyGram
Spain: MoneyGram announces the launch of its service through Movistar Remesas
Monitise
US: Monitise launches mobile money Android apps
Russian Standard Bank
Russia: Russian Standard Bank and MTS launch co-branded cards
Safaricom
Kenya: Safaricom signs an agreement with I&M Bank to allow users to transfer funds to a prepaid card
Transport for London
UK: Transport for London to accept open loop contactless payment cards from 2012
Visa
Global: Visa announces a new Payment Card Industry Data Security Standard compliance program
Global: Visa announces the launch of a P2P payments service
Hong Kong: Visa announces offer for Visa Infinite card holders
The Philippines: Visa announces the launch of a 2011 privileges program for Platinum card holders
US: Visa launches Spend Management Tool
US: Visa and MoneyGram to launch cash-to-card account program
Europe: Visa partners with Wireless Dynamics to develop a mobile contactless payment solution
Europe: Visa Europe partners with Monitise to develop mobile payment services
Western Union
Italy: Western Union signs a contract with Banca Intesa Sanpaolo to offer money transfers through ATMs
US: Western Union partners with InComm to offer general purpose reloadable prepaid cards
Global: Western Union and Etisalat introduce Mobile Money Transfer service in 18 countries

M&A, PARTNERSHIPS, AND ORGANIC GROWTH
Atos Origin
Europe: Atos Origin partners with CASSIS International to deploy mobile NFC services
Netherlands: ABN Amro selects Atos Origin for financial transaction platform
China UnionPay
Canada: More than 60% of ATMs to accept UnionPay cards
Cielo
Brazil: Cielo partners with Banestes
Brazil: Cielo partners with Sodexo
Discover
Puerto Rico: Discover signs an agreement with Banco Popular de Puerto Rico
Everything Everywhere
UK: Everything Everywhere and Barclaycard to roll out contactless mobile payments service
First Data
US: World's Foremost Bank extends its contract with First Data
US: Kemba Credit Union renews agreement with STAR Network
US: Financial institutions select First Data for mobile banking solution
Fidelity Information Services
US: Missouri Bank and Trust signs an agreement with Fidelity Information Services
hyperWALLET
Hong Kong: hyperWALLET announces partnership with InvestLab
MasterCard
Canada: MasterCard announces CIBC as a new issuer of PayPass-enabled MasterCard credit cards
Global: MasterCard announces results for Q4 and FY2010
PayPal
UK: British Airways partners with PayPal
TSYS
US: TSYS partners with CASSIS International to provide mobile payment functionality
Visa
US: Visa acquires PlaySpan
Western Union
Europe: Western Union signs contract with PayPoint

APPENDIX
Methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer

LIST OF FIGURES

Figure: In February, 41 competitor developments were analyzed in the Payment Card Competitor Tracker
Figure: The numbers of M&A, partnerships, and organic growth announcements, and products, services, and innovation developments declined in February
Figure: North America had the highest level of activity, with 13 developments in February
Figure: Issuers account for the largest single share of competitor activity featured in the tracker on a 12-month basis
Figure: Mobile launches and developments were at the forefront of activity in February
Figure: Partnerships accounted for the majority of developments in the M&A, organic growth, and partnerships category