Payment Card Competitor Tracker: May 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

55 competitor developments are analyzed in the May edition of the Payment Card Competitor Tracker. This was slightly lower than the 12-month average and the number of developments recorded in the previous month (58 stories).

Many players across the industry have been focusing on services available through mobile phones in the past 12 months. And this month is no different; the mobile channel was the most active in May with 11 stories recorded in total.

In May Google announced the full details of its expected mobile wallet platform called Google Wallet. In partnership with Citi, MasterCard, First Data and Sprint Google's solution is intended to serve as an open platform for payments, couponing and other services, and is reportedly open to other banks and players becoming involved in future.

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?
• What are the top developments in the past month and what do they mean for my business?

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 MAY
Developments in the contactless, mobile, online, and prepaid sectors in May
Mobile: Google, Citi, MasterCard, First Data, and Sprint introduce Google Wallet in the US
Contactless terminals: road tolls, parking, fast food, and grocers are being targeted on both sides of the Atlantic
Prepaid: both closed and open-loop programs targeted at teens, students, migrants, and shoppers have been introduced this month
There were 55 developments in May, which is more of less on par with the 12-month average
The level of competitor activity declined slightly in May compared to the previous month
Products, services, and innovation-related developments were above the 12-month average in May
North America had the highest level of activity in May
Issuers accounted for the majority of competitor activity in May, but schemes were not far off
The mobile channel continued to see significant developments in May, ahead of the 12-month average
Partnerships 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 two cash rebate credit cards
Axis bank
India: Axis bank announces the launch of a prepaid Visa card
Bank of America
UK: MBNA announces the launch of American Express-branded credit cards
US: Bank of America, Chase, and Wells Fargo launch “clearXchange”
US: Bank of America launches three new charge cards for small business payments
Barclaycard
UK: Starbucks to introduce contactless payments with Barclaycard
UK: Barclaycard to enable contactless payments at toll booths on the M6
UK: Orange and Barclaycard launch a contactless mobile payments service
Blackhawk Network
Mexico: Blackhawk Network introduces Gift Card Mall
Citigroup
Argentina: Citi launches credit cards targeted at women
Colombia: Citibank launches the Platinum Avianca LifeMiles and Visa Infinite card
Egypt: Citibank launches the Titanium credit card
Hungary: Citibank launches the Citi Life World MasterCard
Romania: Citibank launches its "Citi Mobile" application
China UnionPay
Australia: China UnionPay partners with EFTEX to increase the acceptance of UnionPay cards
Brunei: CUP and Baiduri Bank launch a debit card
Global: CUP and Industrial and Commercial Bank of China launch a UnionPay dual currency credit card
Laos: CUP and BCEL announce the launch of a debit card
First Data
US: Google, Citi, MasterCard, First Data, and Sprint introduce Google Wallet
ICICI
Sri Lanka: ICICI Bank launches "Money2SriLanka,"an online remittance service
Industrial and Commercial Bank of China
China: Industrial and Commercial Bank of China introduce the Easy Time credit card
JPMorgan Chase
US: Chase Mobile App for iPad available in Apple Store
MasterCard
Canada: Overwaitea Food Group to introduce MasterCard’s PayPass contactless payment technology across all stores
Canada: Precise ParkLink rolls out MasterCard PayPass Technology
US: MasterCard launches the reloadable prepaid SunTrust Campus card
US: MasterCard announces the launch of its World Elite MasterCard campaign
US: MasterCard teams with Yapta.com to announce the launch of the "MasterCard PriceAssure" program
UK: Carta completes work with MasterCard
MoneyGram
US: MoneyGram and InComm to offer MoneyGram Xpress In-lane money transfer service
Monitise
Hong Kong: Monitise partners with JETCO to rollout a mobile payments service
NETS
China: NETS launches eNETS China Payment
Oversea-Chinese Banking Corporation
Singapore: OCBC Bank to introduce "Frank" debit and credit cards
TD Bank
Canada: TD Bank enhances its mobile app
Visa
Asia Pacific: Visa announces a 2011 Visa Commercial Offers Program for small businesses
Canada: Overwaitea Food Group to introduce Visa payWave contactless payment technology
US: Visa announces next generation of payment solutions
UK: Visa and Lloyds TSB Olympic Phone partnership to accelerate UK mobile payments
Western Union
Brazil: Western Union and Banco Bradesco roll out the Western Union global money transfer service
US: Western Union signs an agreement with Telemundo and mun2 to offer co-branded MasterCard prepaid cards
US: Western Union launches a mobile application

M&A, PARTNERSHIPS, AND ORGANIC GROWTH
Cielo
Brazil: Cielo acquires Braspag
Discover
Worldwide: Discover signs an agreement with BC Card
Fidelity Information Services
Australia: Fidelity Information Services to provide a prepaid card processing solution to Woolworths
Brazil: FIS begins processing credit cards issued by Banco Bradesco under the ELO brand
US: FIS to provide its Integrated Banking Service to Country Club Bank
UK: FIS signs a multi-year contract with Sodexo
GE Money
US: GE Capital Retail Finance extends its agreement with Men’s Wearhouse
MasterCard
Europe: MasterCard extends its contract with APS Financial to drive the growth of the prepaid market
Maybank
Malaysia: Maybank expects its debit card segment to grow by over 100% this year
Travelex
UK: Travelex Global Business Payments partners with Advanced Business Solutions
TSYS
Canada: Caledon Card Services selects TSYS
Luxembourg: Advanzia Bank renews its contract with TSYS
US: TSYS acquires TermNet Merchant Services
Western Union
The Philippines: Western Union signs an agreement with Petnet to target small and medium-sized businesses
WorldPay
UK: WorldPay to acquire Envoy Services

APPENDIX
Methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer