Mobile Payment Industry News

Friday, September 19, 2008

PaymentsSource Webinar Available for Public Viewing

Last week I posted "PaymentsSource Webinar Review" about attending a webinar on a new online publication coming out from SourceMedia they call "PaymentsSource."

SourceMedia publishes American Banker, Bank Technology News, ATM & Debit Card news and more.

If you would like to view a replay of the webinar you can click below:

Top UK Retailer Pins Hopes on Web

eMarketer reports that the John Lewis Group, UK's leading store group saw online sales grow at a 30% clip while the groups department store physical locations saw a 34% drop in operating profit...

Top UK Retailer Pins Hopes on Web - eMarketer

Top UK Retailer Pins Hopes on Web
SEPTEMBER 19, 2008

Karin von Abrams, Senior Analyst

On September 11, John Lewis, the leading UK store group, announced a 27% fall in pretax profits for the first half of 2008.

Earlier this year, the company said it hoped to avoid the worst effects of the impending recession thanks to its loyal customer base, the opening of several new stores and significant diversification into Internet selling.

That hope in Internet sales may be well-placed. Retail e-commerce sales in the UK are predicted to reach £44.9 billion ($80.8 billion) in 2012, up from £19.5 billion ($38 billion) in 2008, according to Verdict Research data cited in Internet Retailing.

UK Retail E-Commerce Sales, 2002-2012 (billions of £ and % of total retail sales)

eMarketer estimates that B2C e-commerce in the UK will reach £94.2 billion ($169.6 billion) in 2012, up from £59.8 billion ($116.6 billion) in 2008.

Verdict's figures are significantly lower than eMarketer's because Verdict excludes air travel and tickets from its estimates, whereas eMarketer includes them. Verdict also gathers data from UK adults only, while eMarketer estimates include online sales to UK residents ages 14 and older.

The John Lewis group, owned as a cooperative by its employees, made pretax profits of £108 million ($191 million) in the six months to July 26, 2008, said a spokesman. Sales overall rose 3.6% to reach £3.27 billion ($6.38 billion).

The company's physical stores are bearing the brunt of the economic storm.

Operating profit at the group's department stores was down 34%, and at its Waitrose supermarkets—considered pricier for consumers than other major grocery chains—operating profit fell 8%. Price cuts and promotions, designed to appeal to worried shoppers, accounted for much of this loss.

But the group's Internet ventures continued their recent robust performance, strengthening hopes that online shopping will help John Lewis come through the current downturn in good shape. During the first half of 2008, online sales rose a healthy 30%.

Irish e-Commerce Retailers Daily Sales Rise

SiliconRepublic.com: Irish retailers are selling €12m a day online - Business

Irish businesses are now selling up to €12m in goods and services online every day, an e-commerce strategist has claimed.

Ennis-based e-commerce strategy company Magico.ie said that while traditional retailers are facing a downturn, online retailing is on track to break new records.

Paul McGurran, director of e-commerce at Magico.ie, said that despite the current economic climate, “online retailing” is still very much in growth mode compared to traditional high-street retail activity.

“Although traditional high-street retail activity is suffering a downturn, internet sales in Ireland are likely to smash all previous records this year as more and more drop the high street for the information super-highway.

“For example, according to Realex Payments, peak online sales in Ireland reached €12.7m on 4 December 2007 last year, declining to €7.3m in subsequent days during the Christmas period. In 2008, average daily web sales in Ireland are now exceeding €12m per day’.

McGurran pointed to recent research in the UK showing that internet sales will continue to grow and the web channel will claim more than half of the retail market pie by 2026.

“This increase in online retail activity is being stimulated by numerous factors, including greater broadband penetration across Ireland and time-poor and price-conscious consumers.

“Furthermore, the rising price of fuel is the main reason behind consumers’ inclination towards web shopping, with users spending an average of 1.6 hours each week buying on the internet,” McGurran added.

Magico.ie was established in 1999 and currently employs 13 people at its headquarters in Ennis, Co Clare. Its current client base includes Fujipix.ie, The Bag Shop, Smyths Toys, Irish Auctioneers & Valuers Institute, Evergreen Healthfood, Munster Rugby Supporters Club, Freshways Sandwiches, Sisk Builders and Fitzpatrick Design Hotels.

The Magico.ie team consists of industry experts who have worked on large Irish and overseas ICT projects with partners such as IBM, Microsoft, Tesco.com, Ireland Online, Bank of Ireland Asset Management and many more.

Retailers wishing to develop an ecommerce Strategy are being invited to attend an e-commerce Seminar from 7-9pm at The Morgan Hotel, Templebar, Dublin on 15 October 2008. For more information go to www.magico.ie

By John Kennedy

Thursday, September 18, 2008

2B or not 2B? That be "B2B" says American Express.

American Express Views B2B Model as Lower Risk, Higher Returns than Consumer Segment

From an article posted on Commercial Payments International.com the global resource for commercial cards and payments professionals. To subscribe to their weekly newsletter, click here or the graphic to the right.

American Express emphasized its growth and opportunities in the B2B segment at a recent investor presentation. It stated that the B2B model has lower risk, higher returns, higher growth and is more geographically diverse than the consumer model. This was proven by a review of recent results posted by American Express.

In Q2 08 the B2B businesses of American Express generated 31% of its net revenues but delivered 55% of its net income. For all of 2007 these numbers were 29% and 38% respectively.

Source: American Express

The global commercial card product alone billed $122 billion in spend last year across 36 markets. The B2B model also has less of a dependence on the US market, generating 55% of its revenue from this developed market vs. 75% for the consumer segment. In difficult economic times as the US is now experiencing fluctuations in the B2B business will not impact American Express' results as much as those on the consumer side.

Other key indicators, such as ROC and ROE are also more rewarding from the B2B business. For one year the segment ROC was 48% for global B2B against 33% for global consumer. In Q2 08 this showed even a larger disparity with B2B still at 48% compared to 22% for consumer. ROE for the most recent year was 44% for global B2B and half of that, or 22%, for global consumer.

CAGR for the global B2B business was 11% from 2005 – 2007. Specific segments are delivering more of this growth with the corporate card middle market growth above or close to 20% since 2004.

American Express is concentrating on three main strategies to help it sustain B2B performance levels. The first is to penetrate new high growth areas such as B2B payments and emerging markets.

Its second key strategy is to expand its distribution footprint through its proprietary sales force and partner set. The third is to add new products and services through strategic investment and acquisitions.

In 2008 American Express invested in Concur and purchased the GE Corporate Payment Services business. (see related article below)

Mexico to be Major Growth Market for Corporate Cards

Mexico Expected to be a Major Growth Market for Corporate Cards

Commercial Payments International reports on the growth of Corporate Cards in Mexico:

Until recently corporate cards in Mexico were limited mainly to senior executives of very large companies. Several changes in this market have occurred recently indication that the Mexican corporate card market is poised for rapid growth:
Increasing numbers of mid-sized corporates and SMEs have begun to use some type of corporate payment cards
Petrol stations only recently began to accept cards for payment
The increased desire for visibility into corporate spend
The introduction of prepaid cards which have been successful as salary cards in a market with a large unbanked population.
Currently only four banks and American Express issue corporate cards in Mexico. In early 2008 Citibank, one of the leading global issuers of corporate cards, announced its plans to introduce new corporate card services in Mexico which will improve procurement process efficiency. Through its subsidiary Banamex, Citi already has over 150 corporate clients and have experienced a CAGR of 102% since 1999 indicating the significant opportunity in the market.

Wednesday, September 17, 2008

Let's Get Those College Students a Wedgie!

College Students Lead the Way Online
SEPTEMBER 17, 2008

Today's college students are digital natives—they have grown up with technology and Internet access at their fingertips. But what does that mean for the future? eMarketer estimates that this year 95.7% of college students—17.4 million strong—will go online at least once a month.

Note: (eMarketer defines a college student as anyone ages 18 or older who attends college full-time or part-time, including undergraduate, graduate-school and professional-school students.)

"College students are the most digitally connected demographic group in the US," says Debra Aho Williamson, senior analyst at eMarketer and author of the new report, College Students Online: Driving Change in Internet and Mobile Usage. "They have grown up with technology and it is a seamless part of their lives.Marketers looking for the next big trend online can learn a lot from college students.

"Students have played a prominent role in some of the biggest developments in the Internet and technology in recent years," says Ms. Williamson, "from social networking to the iPod."

In fact, entering college freshmen have already lived through a series of Internet-era milestones...often themselves created by college students:

1990: The World Wide Web was born.
1994: Two Stanford University students launched a site called "Yet Another Hierarchical Officious Oracle". It later became known by its acronym, Yahoo!. In the same year, the Mosaic Internet browser—precursor to Netscape—was created.
1996: Two other Stanford students began collaborating on BackRub, which eventually became Google.
1999: Northeastern University student Shawn Fanning created music file-sharing service Napster.
2001: The first entry was posted to Wikipedia.
2004: Harvard University student Mark Zuckerberg and a few classmates launched Facebook.
2007: Apple introduced the iPhone.

"The college market is basically the testing ground for all technologies," Matt Britton, chief of brand development for youth marketing agency Mr. Youth tells eMarketer. "If it takes off there, it’s going to take off in the mass market."

"In addition, the college market is one of the most-attractive demographic groups for marketers because of students' discretionary budgets," says Ms. Williamson.|

According to a National Retail Federation (NRF) survey, conducted by BIGresearch, the back-to-college season alone is a huge purchasing occasion. Students and parents were expected to spend an estimated $11 billion on electronics in 2008.

"In so many areas, students are key drivers of change in technology usage," says Ms. Williamson. "They brought social networks into the mainstream, and such sites remain hugely popular with them."

Turned Down By US...Wal*Mart Files for Canadian Banking License

Wal-Mart files for Canadian banking license

Hollie Shaw , Canwest News Service

TORONTO - As worldwide markets plunge, Wal-Mart Canada is vowing to carry its low-cost credo into the financial sector. The biggest mass merchant in Canada has applied for a banking license, joining the ranks of retailers such as Canadian Tire, Sears and Loblaw.

Two years after luring a former American Express Canada executive to head up its financial services department and expand into non-bank financial products, the retailer posted mandatory public notice on Saturday of its official bank application to the Office of the Superintendent of Financial Institutions.

'A license would allow us get into banking products and the obvious one would be a credit card, but if you look at other retailers the breadth of (potential) products is huge,' Wal-Mart spokesman Kevin Groh said. "Services common to some other retailers (include) savings accounts, loans, mortgages, RSPs, GICs . . . but at this point it would be premature for us to speculate" the breadth of its offering, he said.

One thing seems certain - the price competition that Wal-Mart Canada has brought to the retail sector in the past decade, from Pampers to groceries, will likely be carried into the banking segment. "Our approach in everything we have done to date is to be a price leader and eliminate costs that would pass on to customers," Groh said.

Keith Howlett, retailing analyst at Desjardins Securities, said getting
into financial services is a valuable income stream for retailers.

"It is pretty lucrative for Loblaw and at Canadian Tire it was a big growth driver for them," he said. Credit cards are also a valuable source of information about its consumers, letting them see where and how they spend their money.

"I think Wal-Mart could have a huge opportunity there, and quite a different offering from ING or President's Choice Financial or Canadian Tire and something quite different from the banks. The traffic in their stores is enormous and is skewed to those least likely to get the value-added from banks," he said, noting that banks mostly try to court customers with high income or high savings.

"Wal-Mart could design a business model that goes against the grain." One such business, he suggested, would be to offer a lower-fee option on payday loans and services provided by companies such as Money Mart. "It's a huge, fast-growing business, it covers a huge number of people," but no banks or retailers are tapping into it.

Close to two years ago, Wal-Mart Canada signaled its interest in the banking business when it hired Trudy Fahie, former vice-president of financial services for American Express Canada, to take on the same role - a newly created position - at Wal-Mart Canada. Wal-Mart currently has ATMs and offers extended warranties, wire transfers and emergency bill payments through Western Union.

It's a different story in the United States, where the retailer has met with resistance to efforts to get into banking. Its applications for bank charters in Oklahoma and California were turned down and it ended up withdrawing an application in Utah.

Contactless and Clueless

Finextra: Contactless cards win over users, but struggle to reach the mainstream

Despite the fact that over 90% of Americans that own contactless payments cards like using them, three quarters of the population are not even aware of the technology's existence, according to a survey commissioned by the Smart Card Alliance.

Javelin Strategy and Research surveyed 500 contactless card users, finding that 92% think the technology is fast and easy to use. Respondents also use their cards regularly - with over 22% making payments with their contactless cards more than six times per month.

Contactless card users are also keen on mobile payments. The research found 43% are likely to use a handset as a mobile wallet, compared to just 19% of people who don't use contactless cards.

Nearly half - 47% - of contactless card owners would even switch carriers in order to make mobile payments.

The technology is rapidly gaining in popularity, with nine percent of the US population now possessing a contactless card. Last year the number of open network contactless cards in circulation reached 35 million, nearly double the 19 million in 2006.

Merchants are also adopting the technology, with an estimated 75,000, including taxi firms and transport operators as well as retailers, now accepting the cards.

"Contactless payment acceptance at merchants is taking off much faster than PIN debit did," says John Suchanec, SVP, payment research and innovations, Bank of America. "Contactless acceptance is already growing at a rate that it took seven years to achieve with PIN debit. Mobile will accelerate the curve."

But Javelin also questioned 1500 people representative of the US online population (not necessarily contactless card users) and found awareness of the technology is still poor.

Only a quarter of those surveyed are familiar with contactless, although this is up from 15% in 2006.

More on More Card Skimming...

Tampa police show a skimming device — the false card slot goes over the original; underneath is a card reader that captures information. A camera is typically hidden on the ATM, often in a pamphlet holder, angled to view the monitor and keypad.

By KEITH MORELLI | The Tampa Tribune

A troubling trend in automated teller machinations has found its way into the Bay area and Tampa police say anyone who uses the convenient roadside bankers can be a potential victim.

Three times over the past two weeks, "skimmers" have been attached to automatic teller machines in the Bay area, devices that steal the numbers off debit and credit cards and record personal identification numbers as they are tapped into the keyboard.

Among the most recent victims: Tampa police Cpl. Mark Altimari, who put his debit card into the Bank of America ATM on the corner of Nebraska and Fowler avenues around lunchtime Sept. 5. He wanted to make a $20 withdrawal.

"I noticed my card wouldn't slide in smoothly," he said at a Monday news conference called to warn banking customers of the latest method of identity theft. "It kind of seemed odd to me." His card went in but only partially came out, he said. He pulled on it, and the whole card reader pulled off the face of the ATM. That's when he knew his card had been scanned by a device that was not an original part of the machine.

He immediately notified the Bank of America and bank security officials told him to check for a camera. He felt behind the trim over the keyboard and found a tiny camera the size of two sticks of gum hidden there. The entire piece of trim itself had been taped into place and looked like it was a part of the ATM. The camera, positioned over a tiny hole in the trim, was aimed at the keyboard to record PIN numbers as they are punched in.

Tampa police Sgt. Becky Bodamer said a similar card scanning device, this one less bulky and barely noticeable, was recovered at Pilot Bank, 4005 S. Dale Mabry Highway, around 4 p.m. Friday.

As of Monday morning, no one had reported missing any money from accounts in either of the banks, Bodamer said, but it was uncertain how many people had used the machines.

Some sophisticated devices are designed to transmit the card number the moment it is being used to criminals nearby, she said. But these devices were not that technologically advanced. They had to be gathered from the ATM and plugged into a computer to retrieve the data, she said. Because they were seized by police, it is assumed the thieves did not have a chance to obtain the information.

The two devices were different enough to lead detectives to think they likely were not put there by the same people, she said. Detectives are in contact with Clearwater investigators, who discovered a similar scanner at a bank there last week.

Clearwater police said that more than 20 people who used that Wachovia ATM over a two-day period last week have complained about money being pilfered from their accounts.

Officers found evidence of an adhesive on the ATM at the bank branch office at 2699 Gulf-to-Bay Blvd. They said the scanning device probably was attached to the machine and recorded information about customers' accounts, including personal identification numbers, as the customers used the machines.

In all cases, the devices looked like ordinary card slots, but were not. The false slot holds an additional card reader to capture information. Hidden cameras are one method of capturing a PIN, but another method is a false keyboard, glued onto the face of the ATM directly above the real keyboard. The fake records the PIN number as it is punched in.

If working properly, the machine will give the card back, along with any cash withdrawals, and the user would walk away not knowing their personal banking information had been compromised, Bodamer said.

In many instances, she said, the devices, "can't be detected unless you're a bank official."

Tampa police issued these tips for ATM safety:

Use secure ATM machines, inside a bank lobby or inside a store. Offenders can install the scanners quickly, but likely won't go inside a place of business to do it.
Cover the keyboard with your free hand when you punch in your PIN. This obstructs the view of any hidden cameras that may be present.
Skimming devices may protrude from the face of the ATM. If something looks suspicious or if the keyboard jiggles or the card slot is not quite level, leave and use another ATM and contact the bank to report it.
If the machine keeps your card, call the bank immediately.
Don't accept help from anyone hanging around the ATM. They may be there to try to observe your PIN number.

Bodamer said the ATM data-thieving trend began in South Florida and is making its way north. Those behind the high-tech identity thievery are likely part of an organized group with knowledge of how such instruments work, she said, and enough cash to invest in the equipment.

Pre-Authorized Debits in Canada Have New Requirements

New requirements for pre-authorized debits (PADs) mean changes for businesses using this payment option

OTTAWA, Sept. 16 /CNW Telbec/ - The Canadian Payments Association (CPA) has published new requirements for pre-authorized debits (PADs) to ensure appropriate information is disclosed to consumers and other parties using this option to pay for goods or services. As a result, all businesses using PADs to collect payments from their customers will need to make some changes to the forms or processes through which they obtain customers' authorization.

A PAD is a payment based on an agreement between a business and its customer through which the business obtains the customer's authorization to debit his or her bank account in accordance with specified terms. Requirements for these items to be processed through the clearing system are set out in the CPA's Rule H1 - Pre-authorized Debits. Recurring charges to credit cards are outside the scope of this framework.

On average, more than 2.3 million PADs were processed through the Canadian clearing system each business day during 2007.Mandatory Information Elements for Pre-authorized Debit Agreements

A key change in the new version of Rule H1 is the definition of mandatory elements to be included in the Payor's PAD Agreement - that is, the form or process through which the business or "payee" obtains the customer's authorization to debit his or her bank account. Among the mandatory elements are:

- information on how to cancel a PAD,
- the payee's contact information, and
- a standard statement with regard to the consumer's rights of recourse in the event of a debit that does not follow the terms of the agreement or is not authorized.

All payees using PADs must update their forms or electronic processes to reflect these new requirements by February 28, 2010. Each payee must submit a copy of its proposed forms and/or electronic processes to its financial institution to confirm that they meet the new requirements. Payor's PAD Agreements in effect before that date are grandfathered to avoid potential disruption to both consumers and payees. As part of the transition, CPA's member financial institutions will be updating their contractual arrangements with corporate clients on whose behalf they enter PADs into the clearing system to incorporate their clients' new obligations as PAD payees.

More Flexible Framework for Electronic PAD Agreements

The new framework also provides more flexibility to establish Payor's PAD Agreements through electronic means such as over the telephone or the internet. Payees who wish to initiate PAD Agreements electronically must submit their proposed electronic forms or processes to their financial
institution for review, including the proposed process to confirm the identity of the payor in the electronic environment. In addition, for all electronic Payor's PAD Agreements, the payee must send a written confirmation of all details to the payor in advance of the first PAD; the standard period is 15 days before the first PAD, which may be reduced by mutual agreement, but may not be waived

More information on the new requirements, including a copy of Rule H1, is available on the CPA's web site at www.cdnpay.ca.

The Canadian Payments Association (CPA), created by an Act of Parliament in 1980, operates Canada's national clearing and settlement systems; facilitates their interaction with other systems involved in the clearing and settlement of payments; and facilitates the development of new payment methods and technologies. It promotes the efficiency, safety and soundness of the clearing and settlement systems, taking into account the interests of users.Its current membership comprises virtually all of Canada's bank and non-bank deposit-taking financial institutions. In 2007, the CPA's systems cleared and settled transactions averaging $203 billion each business day.

For further information: Roger Dowdall, Vice-President, Communications and Education, Canadian Payments Association, (613) 238-4173, ext 3240

Tuesday, September 16, 2008

41% of Online Shoppers Click "Bye" vs. "Buy"

Here's a Press Release today from TeaLeaf.com regarding a survey done by them in conjunction with Harris Interactive. From a transactional perspective there seems to be a long way to go as 84% of those surveyed feel there's no reason an online transaction cannot be completed on the first try, but according to this poll, most sites are NOT meeting those expectations.

I say that's an easy fix and at the same time it would make the online experience as familiar and simple as the bricks and mortar experience. Here's how easy it would be to do.

Internet Retailers can provide "1 swipe shopping" by simply equipping their site's online shoppers with HomeATM's PIN Entry Device and get 'er dun right "the first time." An additional benefit to "reducing abandonment" is "reducing interchange fees."

It's easy to convince online shoppers to use a personal mag-stripe reader. By enhancing the security of the transaction you a "reducing the risk of fraud." By providing your loyal shoppers with a mini-swiper or a "Reducer"...Internet Retailers will get the added benefit of creating the very real perception that they are looking out for their customers well-being. Instead of giving away a free toaster for opening a savings account (circa 1965) they could give away a "free mini-swiper" for opening up a HATM PIN Debit Account.

The result is a true win-win situation...and according to this report, doing just that would be a "potential multi-billion dollar business opportunity"

C lick Here to Get the Executive Summary of the Report in PDF Format

Potential Multi-Billion Dollar Business Opportunity for Companies That Focus on Improving Online Customer Experiences

"Survey Says" 41% of Online Adults Click Away When They Encounter Problems, Many to a Competitor

For the fourth consecutive year, nearly 9 out of 10 (87%) online adults who have conducted an online transaction in the past year have experienced problems doing so;
41% of online adults who experience problems transacting would switch to a competitor or abandon a transaction entirely if they experienced an online transaction problem;
Four in five online adults who experience problems (84%) share their experiences with others — both online and offline

Tealeaf®, the leader in online Customer Experience Management (CEM) software, today announced the results of the 4th annual survey of online consumer behavior. The study, commissioned by Tealeaf and conducted by Harris Interactive®, focused on consumer transactions on shopping, banking, travel and insurance websites. For the fourth year running, the survey revealed that nearly nine out of 10 (87%) consumers conducting transactions online have experienced problems. When online issues occur, there is an immediate business impact.

For example, if they experienced an online transaction issue, 41% of online adults who experience problems conducting online transactions would simply switch to an online or offline competitor or abandon a transaction entirely. This represents a $57 billion potential impact to revenue on shopping sites alone — a huge opportunity for companies to harness, by ensuring their websites work. On the Web, the competition is just a click away.

According to a recent Forrester Research, Inc. report, "Obstacles to Customer Experience Success, 2008," 91% of business decision-makers said customer experience is either very important or critical to their 2008 efforts. While customer experience is increasingly important to businesses, the Tealeaf survey conducted by Harris Interactive clearly highlights that companies need to take immediate steps to ensure they understand the experience of their customers who are transacting online.

While user expectations are high — more than four in five (84%) online adults feel there is no reason why an online transaction can't be completed on the first try — most sites are not meeting those expectations.

Preference for Online Channels is Rapidly Increasing, as are User Expectations
There is an increasing preference for conducting business online — 84% of all online adults have conducted an online transaction in the past year and more than one-third (35%) generally prefer to conduct business online, according to the survey. Further, 22% of online adults who have conducted an online transaction in the past year expect even better customer service online than when shopping in-person.

Poor Experiences Evoke Reactions
Online problems evoke strong emotions from consumers. According to the survey, the vast majority of online adults who experience problems when conducting online transactions (87%) feel frustrated when they experience such problems. Of those who experience problems, 41% reported feeling angry. Emotions can drive customers to take action by providing feedback via other channels.

Improve Customer Satisfaction and Retention

There is a lack of integration between the contact center and web channels of many businesses. The survey found that 47% of all online adults have contacted a company's call center after they encountered problems using the website. Among those, 64% did not feel that the service agent was knowledgeable about the website, and nearly two in five (38%) did not have their issue resolved. Results also show that, among online adults who have experienced poor customer service from a company's call center when calling about website issues, nearly three in four (72%) either stopped doing business with that company entirely (45%), decreased the amount of business they do with the company (37%), or lodged a complaint with the Better Business Bureau (13%). Improving the service centers' ability to support the online channel not only leads to increased customer satisfaction and retention, but can also turn a support call into an opportunity to expand the business relationship with that customer.

Customers Share Experiences, Amplifying Impacts
More than four in five (84%) online adults who experience problems conducting online transactions share their experiences with others, amplifying the impact of any single experience.

Among those who share their experiences with others, 82% do so using non-online modes of communication such as in-person (74%) and phone conversations (50%) with friends and family, while 58% use online channels to share complaints or reviews, such as on the company's website (39%), in an email to friends and family (23%), on a ratings and reviews website (16%), on an online message board (8%), or on a blog or social network (7%). These Internet postings and comments are often widely disseminated and long lived.

"At US Airways, we strive to do everything we can to be the airline of choice for our customers. To achieve this, we focus on reliability, convenience and appearance in all that we do. From achieving a first place ranking in on time performance among the ten largest U.S. carriers according to the Department of Transportation's Air Travel Consumer Report ... to providing a world-class website that provides our customers the quality service they deserve and demand," said Wes Graham, Director of Internet Distribution, US Airways. "We rely on Tealeaf for real visibility into our over one million customer sessions a day to help ensure we don't skip a beat in the online world. The Web is a major revenue channel for US Airways and extremely strategic to our overall business. With the Tealeaf dashboards we've created, I can see exactly how the site is performing now as compared to the previous week with just a quick glance." "The Web has changed business; companies both large and small compete for the same customers. Now, competition is just a click away and customer expectations continue to grow," said Rebecca Ward, CEO of Tealeaf. "Businesses must take definitive steps to differentiate themselves by understanding and improving their customers' site experiences, and equipping their contact centers to truly meet the needs of online customers. Companies that do take action will be the ones to claim a greater share of this billion dollar business opportunity."

Survey Methodology - The 2008 Online Transactions survey was conducted online by Harris Interactive on behalf of Tealeaf Technology, Inc. between August 5 and August 7, 2008 among 2,010 adults ages 18+, of whom, 1,798 have conducted an online transaction in the past year and 1,572 experienced problems when conducting online transactions. Data were weighted to be representative of the online U.S. adult population. For complete survey methodology, including weighting variables, please contact Shoshana Deutschkron at shoshanad@tealeaf.com.

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ChargeAnywhere Touts PIN Debit for Quickbooks

The Green Sheet 2.0 :: Newswire

South Plainfield, N.J., Sept. 12, 2008 -- CHARGE Anywhere®, a leading provider of secure Point-of-Sale (POS) solutions and electronic payment services, is delighted to announce the ability to accept PIN Debit payments with their card payment plug-in designed for use with QuickBooks®. This is extremely beneficial to the Small and Medium Merchant Business community by allowing them to process PIN Debit transactions without changing their compatible QuickBooks software.

CHARGE Anywhere designed for use with QuickBooks with PIN Debit capability not only expands the merchant's level of service, but reduces cost a merchant pays per transaction. With the increased fraud protection, PIN Debit is a smart decision for small and medium sized merchants that can assist in reducing chargebacks due to less fraudulent purchases. When you integrate these functions into the merchant's QuickBooks software, you are going to have a happier and more productive merchant.

CHARGE Anywhere with PIN Debit feature is available with the use of a PIN pad that will be attached to the computer via cable. The compatible PIN pad devices are the LinkPoint BankPoint II, the VeriFone SE1000, and the Ingenico 3010. All of the mentioned PIN pads are PCI PED compliant and certified. In addition, the CHARGE Anywhere Point of Sale software has been validated* and meets PCI PABP compliance standards and the ComsGate® Payment Gateway is certified as PCI DSS Level 1 compliant. With the addition of PIN Debit, CHARGE Anywhere has significantly improved the functionality of their CHARGE Anywhere payment software for retailers. With PIN Debit devices added, the CHARGE Anywhere designed for use with QuickBooks payment plug-in is now, more than ever, one of the most versatile, secure payment software plug-ins on the market. PIN Debit adds to a long list of features that include customizable software settings, gift, loyalty, versatility, and security.

For more information about CHARGE Anywhere with PIN Debit, please cut and paste the following link into your browser:
http://uploads.comstarinteractive.com/pub/dlerman/CHARGE_Anywhere_Application_Designed_For_QuickBooks_Overview.pdf

Source: Company press release.

Surprise! Affluent "Spends the Most"...Time Online

Link between income and Web time

Among US affluent heads of household surveyed, those with annual household incomes of $250,000 and over spend the most time online, according to a study conducted from March through July 2008 by Ipsos Mendelsohn.

The researcher found that the average number of hours logged weekly increased with income, and that users in the top income tier spent nearly 6 more hours online per week than those whose incomes ranged from $100,000 to $150,000.

Ipsos said affluent Internet users who used PCs went online an average of 25.9 times every week. Wealthy mobile Internet users typically accessed the Web with their handsets 17.6 times weekly.

Just as Internet usage increases with income across the affluent segments, so too are affluents themselves online for longer than the average Internet user.

US adult Internet users surveyed spent an average of 21 hours per week online, according to a study conducted in May 2008 by Illuminas for Cisco Systems.

Monday, September 15, 2008

Microsoft Makes Swift Move into Payments Arena

Microsoft Corp. today announced at Sibos 2008 that it is signing a global partnership agreement with the Society for Worldwide Interbank Financial Transactions (SWIFT).

Microsoft said Monday that it will work to make its technology more compatible with the global, interbank payments network operated by the Society for Worldwide Interbank Financial Transactions (SWIFT).

The announcement signifies a new, higher level of close cooperation between the organizations, under which they will work together to deliver deep industry value and simplify SWIFTNet implementation for customers using Microsoft technology.

It is a mutual, commercially based agreement between the organizations and will open further opportunities for financial service providers and midsized to large corporations to quickly and easily connect to SWIFT.

"The dynamics of financial messaging are changing as institutions look toward technology as a competitive differentiator," said Amanda Westwood, global head of SWIFT's customer service division. "SWIFT customers demand flexible messaging platforms that are cost effective to implement and integrate with their existing systems. The continued work Microsoft does to support SWIFTNet integration and SWIFTSolutions partners goes even further toward helping expand these solutions for our customers both within organizations and across boundaries. We expect our global partnership to promote additional adoption of SWIFT connectivity and SWIFTSolutions in the future."

The development of a SWIFT partner ecosystem will be an important aspect of the global partnership. Microsoft is providing a solid and highly secure foundation on which an expanded set of trusted industry partners can build and implement solutions for SWIFT and deliver stronger solutions for customers. It will also increase the choices available to customers, enabling them to better compete through more flexible and scalable financial messaging solutions.

As a respected voice in the area of payments technology, and demonstrating its further commitment to both SWIFT and its international partner ecosystem, Microsoft has, for the fifth year running, achieved the SWIFTReady Financial EAI Label for 2008 for BizTalk Accelerator for SWIFT, which will be included in Microsoft BizTalk Server 2009.

"We are constantly listening to our customers' feedback, and what we're hearing from the financial services marketplace today is that they are looking to Microsoft, as a respected leader in enabling payments solutions, to provide increased flexibility beyond core SWIFT offerings," said David Vander, worldwide managing director of Banking at Microsoft. "

With BizTalk Accelerator for SWIFT we are enabling fast and easy system interoperability from bank systems to payments networks, thereby helping ensure that customers receive the best possible solution to their business issues, whatever their approach to payments may be. Microsoft continues to collaborate and invest in a trusted community of partners to develop an ecosystem of payments solutions.

A number of these partners are represented here at Sibos, including SWIFT, CashFac, DATALOG, Decillion, EastNets, Expertus, Fiserv NetEconomy, Nimbus, SAGA, SMA Financial, SunGard and XSP, all of which support the development of innovative, cost-effective, mission-critical solutions that will deliver deep industry value for customers and more effectively meet their payments needs globally."

Microsoft BizTalk Server 2009 with BizTalk Accelerator for SWIFT will enable financial institutions to access a comprehensive set of SWIFT solutions and support for protocols, including adapters for SWIFTNet FileAct and InterAct, which provide connectivity between Microsoft BizTalk Server and the SWIFT secure IP network. It also includes business activity monitoring, providing operations managers and business analysts with enhanced visibility into transactions. As well, Microsoft BizTalk Server 2009 will offer extended support of ISO 20022 message repairs, from correcting simple FIN messages to addressing the needs of MX- and ISO 20022-based Extensible Markup Language (XML) messages.

"With more than 8,200 customers today, Microsoft BizTalk Server leads the markets as a solution for enterprise connectivity, enabling integration across our customers' diverse set of heterogeneous systems, line-of-business applications, mainframes and trading partners," said Robert Wahbe, corporate vice president of the Connected Systems Division at Microsoft. "The Microsoft BizTalk Server 2009 release further extends our commitment to ISO 20022 standards and will make it even easier for Microsoft and its partners to build solutions for SWIFT connectivity."

In September 2008, Microsoft also committed to help drive modeling into mainstream use and announced membership in the standards body Object Management Group (OMG). OMG's modeling standards include the Unified Modeling Language(TM) (UML(R)) and Business Process Modeling Notation (BPMN), and Microsoft will take an active role in numerous OMG working groups to help contribute to the open industry dialogue and assist with evolution of the standards to meet mainstream customer needs. This move is a continuation of the company's strong commitment to industry standards and will enable its financial services partners and customers over time to more easily support new industry transaction models.

About Microsoft in Financial Services

Microsoft's Financial Services Group helps financial firms leverage technology to amplify the impact their people can deliver to drive business success. We help our customers in banking, capital markets and securities, and insurance achieve four business outcomes: develop relationships, drive innovation, improve operations and build connections. To do this, we focus our products and technologies, and our work with leading solutions, services and hardware partners, on key areas where we believe we and our partners can deliver exceptional value. Those areas include advisor platforms, channel renewal, core banking, insurance value chain, investment management, risk management and compliance, and payments. For more information, visit http://www.microsoft.com/financialservices .

Bank of America Uses Lehmann to Get Merrill Lynch

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Bank of America Buys Merrill Lynch Creating Unique Financial Services Firm

Combines leading global wealth management, capital markets and advisory company with largest consumer and corporate bank in U.S.

Related: Paulson Statement on SEC and Federal Reserve Actions Surrounding Lehman Brothers

CHARLOTTE, N.C., Sept. 15 /PRNewswire-FirstCall/ -- Bank of America Corporation today announced it has agreed to acquire Merrill Lynch & Co.,Inc. in a $50 billion all-stock transaction that creates a companyunrivalled in its breadth of financial services and global reach.

"Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders," Bank of America Chairman and Chief Executive Officer Ken Lewis said. "Together, our companies are more valuable because of the synergies in our businesses."

"Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms," said John Thain, chairman and CEO of Merrill Lynch.

Under terms of the transaction, Bank of America would exchange .8595 shares of Bank of America common stock for each Merrill Lynch common share. The price is 1.8 times stated tangible book value.

Bank of America expects to achieve $7 billion in pre-tax expense savings, fully realized by 2012. The acquisition is expected to be accretive to earnings by 2010.

The transaction is expected to close in the first quarter of 2009. It has been approved by directors of both companies and is subject to shareholder votes at both companies and standard regulatory approvals.

Under the agreement, three directors of Merrill Lynch will join the Bank of America Board of Directors. The combined company would have leadership positions in retail brokerage and wealth management. By adding Merrill Lynch's more than 16,000
financial advisers, Bank of America would have the largest brokerage in the world with more than 20,000 advisers and $2.5 trillion in client assets.

The combination brings global scale in investment management, including an approximately 50 percent ownership in BlackRock, which has $1.4 trillion in assets under management. Bank of America has $589 billion in assets under management.

Adding Merrill Lynch both enhances current strengths at Bank of America and creates new ones, particularly outside of the United States. Merrill Lynch adds strengths in global debt underwriting, global equities and global merger and acquisition advice.

After the acquisition, Bank of America would be the number one underwriter of global high yield debt, the third largest underwriter of global equity and the ninth largest adviser on global mergers and acquisitions based on pro forma first half of 2008 results.

Bank of America was advised by J.C. Flowers & Co. LLC, Fox-Pitt Kelton Cochran Caronia Waller and Bank of America Securities. It was represented by Wachtell, Lipton, Rosen & Katz. Merrill Lynch was represented by Shearman & Sterling.

Source: Press Release

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