All articles by Verdict Staff
Verdict Staff
Are you in or out?
In some areas of the payment industry, outsourcing is becoming increasingly important as financial institutions scramble to cut costs and streamline processes
Where next for mobile payments?
As mobile phones are used increasingly to transfer complex information such as pictures and videos, it is unsurprising the technology has also been adapted to transfer money John Hill takes a close look at how the nascent mobile payment industry is progressing and how contactless is accelerating its evolution
TowerGroup predicts further profit falls
The drumbeat of sour economic reviews of the US cards industry continues unabated, with a new report warning that the industry could find itself in the red this year as economic conditions further constrict issuers profit margins.According to a new report by US payment consultancy TowerGroup, the combination of economic pressures and the new credit card rules going into effect next year will force issuers to further slash cardholders credit limits.As Dennis Moroney and Brian Riley, both research directors of bank cards at TowerGroup, explained in the report, two factors drive credit risk management at US credit card-issuing banks: outstanding balances, the debt the banks customers have already contracted; and contingent liability, the banks potential obligation for the amount on card credit lines still available to the cardholders though as yet unused
News digest
REMITTANCESMoneyGram takes poll position in Saudi ArabiaIn a strategically significant move, MoneyGram has signed an agreement with Saudi Arabian bank National Commercial Bank (NCB) creating a money transfer network more than ten times larger than any other in Saudi Arabia.Under the agreement with NCB, the largest bank in the Middle East, 1,400 ATMs in Saudi Arabias four major cities, Riyadh, Jeddah, Dammam and Khobar, will be linked to the US remittance specialists 180,000 agent locations in 190 countries and territories.Offering ten minute transaction delivery, MoneyGrams remittance service will run on NCBs Quickpay platform and initially be available in send-only form.It is, however, Saudi Arabias remittance send market that represents the major opportunity.With some 6 million expatriates 27 percent of the total population Saudi Arabia has emerged as the worlds second-largest source of remittances after the US.In addition, demand for send remittance services is also being boosted by the growing number of Saudis studying, travelling and working abroad.MoneyGrams regional director for the Middle East, Richard Meredith, commented that NCB and MoneyGram would work closely to rapidly register expatriates.Based on World Bank data for 2006, remittances from Saudi Arabia are of the order of $17 billion annually MOBILE BANKINGFirethorn takes data security to a new levelSecurity concerns feature regularly as a big concern in surveys aimed at assessing consumer attitudes towards mobile banking and payments.Moving to allay concerns Firethorn, the mobile banking and payments unit of US wireless technology developer Qualcomm, has introduced security features that comply with the Payment Card Industry Data Security Standard (PCI DSS).As part of its strategy to meet the many PCI DSS, Firethorn relocated its mobile services operation to a protected data center that provides continuous service support.Methods now used to protect customer data include encryption of account inform
Vesta looks to Europe for major growth
Focused on direct prepaid payments solutions for mobile network operators, Vesta has an impressive customer base, particularly in the US and China
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Drop in delinquencies is good news
It would appear so following the latest report from credit ratings agency Fitch, which has reported that US delinquency levels are receding from previous highs
Egg takes on the World
The launch of the Egg World Money credit card in the UK heralds a new era of card products targeted at mass affluent consumers, with a wide array of features aimed at high transactors
Implications of the PSD
The implementation of the Payment Services Directive is one of the most pressing issues facing Europes card and payments industry Stephen Ley, a partner in Deloittes Enterprise Risk Services practice, and Francesco Burelli, a director in the payments team at Deloitte, set out the challenges facing payments players. The extent of the product and geographical scope make the Payment Services Directive (PSD) one of the most ambitious political objectives of the European Commission (EC) to date
Navigating through turbulent times
In this guest article, global business consultancy McKinsey shines the spotlight on European payments one line of business that is faring well in the current economic turbulence McKinsey argues banks must design appropriate strategies to meet the needs of retail and corporate customers and prepare for economic recovery. Amid the turbulence impacting the European financial services industry, there is one line of business that is faring relatively well
Study points to influence of reforms
The Reserve Bank of Australias intervention into the countrys payment system had far-reaching effects which are still being argued about today A new study from the central bank has put a positive spin on its reforms and how they have influenced consumer payment trends