Children's e-wallet Virtual Piggy raises $ 8.5m in private fundings

By Raphael Michilis

US-based financial platform for children Virtual Piggy has pooled $8.5m with the selling of its stocks in few private funding rounds early last April and May.

The last transaction was registered at the US Securities and Exchange Commission (SEC) on May 13 and the amount was confirmed by a Virtual Piggy spokesperson.

According to the notice filed at SEC, the capital comes from different investors including Fiordaliso LTD and FEQ Realty.

In the contracts signed with Virtual Piggy, the new shareholders acquired opening tranches of common stocks and agreed to buy future lots in monthly closings until November this year.

The company refused to say how the funding will change the company operations.

One of the SEC document reports that more than 70 investors took part in the funding rounds and each buyer purchased initial aggregates of around 150,000 common stock units.

Each unit was composed of two shares of Virtual Piggy’s common stock and a warrant to buy an extra share.

The units’ value ranged from $ 0.6125 to $0.80 and the shares were worth between £0.40 and $1.

The company refused to comment the matter, at least until next week.

Earlier this year, Virtual Piggy’s CEO and founder Jo Webber hailed the platform as the first payment system to allow children under 13 years of age make legal online purchases, with parents dictating the limits. 

Barclaycard says PayTag experiences a phenomenal success

By Raphael Michilis
The volume of Barclaycard NFC sticker cards PayTag issued is increasing and the company is optimistic about the customer’s adoption of the technology.
“The take up of the PayTag has been phenomenally successful. I can’t tell the exact number yet, but we are pretty please with the results,” said Tom Gregory, Head of Digital payments at Barclaycard during a webinar on 31 May.


Tom Gregory said yet that the volume of point of sales (POS) compatible with NFC technology in the United Kingdom will soar 50% in 2012, predicts Barclaycard.


“There are 100,000 [NFC enabled] payment terminals in the UK today. And this number will reach 150,000 till the end of the year,” said the Barclaycard executive.


On the other had, a research by technology advisory company Gartner foresees that while global mobile payment in general should soar by 62% in 2012, the volume of NFC transactions will remain rather low until 2015, with substantial growth beginning only in 2016.


“There are so many predictions, some pretty different,” but for now NFC “level is beginning to rise and we are pretty happy”, said Gregory about Gartner findings.


He believes the spread of the NFC technology in the UK will be boosted by adoption of major players like Transport for London (TfL). He expects the public transport and other large initiatives will encourage usage, and improve awareness of the technology.


“We are getting balance of adoption and awareness. This is moving in the right direction. NFC is the future. We are investing in it because we believe, we have confidence in the technology,” said the Barclaycard executive.


Asked if Barclaycard plans to invest in mobile payment alternatives to NFC, he said the company “will continue monitoring” other technologies and change strategy if necessary. 


The finance and technology industries’ confidence in the Near Field Communication payments was corroborated earlier this week, when executives from MasterCard, Sony, Intel among others stood up for the technology during the Smart Card Alliance’s NFC Solutions Summit 2012.


The group said NFC will improve the shopper experience at the POS and in on a daily basis interactions.


NFC is “getting well along the way to mass market adoption,” said James Anderson, MasterCard’s senior vice president of Mobile and Emerging Payments.


Security 
Tom Gregory also contradicted concerns about security and said the technology is safe.


He didn’t reveal the number of fraudsters attacks to Barclaycard NFC products, but said the card registered a “very small volume of fraud transactions related to the PayTag.”


Frauds generally occur in small transactions and are linked to merchants’ inappropriate identification of the purchaser.


The Barclaycard executive reassured that the customers will be reimbursed of any undue purchase, and those merchants who decide not to do full verification of customer data might be held liable.


Availability
Despite the incipient release NFC fitted mobile devices, Barclaycard is still optimistic about the Near Field Communication payments.

According to Tom Gregory, the contactless sticker card, PayTag is a bridge to the technology till when NFC fitted devices are more commonly available.

“We don’t know when every android mobile or iPhone will have NFC. until that happens we’ll use the tags.”

Etihad Airways offers free night in Abu Dhabi 5-star hotels

Etihad Airways offered two nights at Yas Hotel, plus
limousine transfers to first class passengers in 2011

By Raphael Michilis

United Arab Emirates-based Etihad Airways is offering one free hotel night to passengers in a layover of minimum two nights in Abu Dhabi before 1 December.

Etihad passengers can choose from a list of 25 hotels rated three to five stars  in the UAE capital, but have to be on a trip that goes beyond Abu Dhabi. 

“This offer is intended to encourage people to make time to get off the aircraft at Abu Dhabi and explore the emirate – be that with a visit to the Arabian desert, a trip to one of the world’s largest mosques, a tour of the attractions on Yas Island or by sampling the emirate’s world class hotels and restaurant," said Peter Baumgartner, Etihad Airways Chief Commercial Officer.

Extra stay at the Abu Dhabi hotels selection can also be booked with a discounts.

Rooms in a four or five star hotel can be booked from $59 in the offer, while a three-star accommodations are offered for a starting price of $45.  

The program also grants 'bargains' such as two-for-one deals at Ferrari World, Saadiyat Beach Golf Club, Abu Dhabi Golf Club, Yas Links and Monte Carlo Beach Club, safaris or tours with Desert Safari and Abu Dhabi City Tour.

The Essential Stopover program offer is available to all Etihad Airways guests, as well to passengers travelling on Etihad Airways-marketed flights.
The offer, is part of the Essential Abu Dhabi program that, in 2011, rewarded two and three free nights at the Qasr Al Sarab and Yas Hotel to customers in first and business classes.

Stagecoach trials Everything Everywhere NFC bus tickets in the UK

By Raphael Michilis
Stagecoach, one of the UK’s largest bus and rail operators, and mobile operator Everything Everywhere have teamed up to launch an NFC payments initiative in Cambridgeshire.

The project is still on trial, but it is said to be “the UK’s first government-standard commercial deployment of mobile contactless transport ticketing,” according to Everything Everywhere.

The new service is being tested by a small group of passengers that can receive, store and authenticate their bus ticket via NFC enabled mobile devices, which are built-in with an app designed for the pre-existing local bus network’s smart card readers.

The trial participants are using handsets featuring the Orange and Barclaycard Quick Tap, supplied by Everything Everywhere.

The trial takes place on Cambridgeshire bus routes, including the Cambridge Park & Ride and Guided Busway, and might be extended nationwide in 2013, depending on the success of the experiment.

"Once this trial is complete, we will carry out a review of the findings and assess the potential to expand the scheme further for our passengers,"said Martin Griffiths, Stagecoach finance director.

Stagecoach has a fleet of 7,700 buses that serves about 2.5 million passengers every day, and, according to Everything Everywhere, the joint initiative will help meeting government Government’s requirement to have most of public transport journeys using smart ticketing by December 2014.

Tata Docomo launches Twitter mobile top up in India

By Raphael Michilis
More and more businesses around the globe are focusing on the social networking generation and launching initiatives dedicated to that segment – and the convergence with payments is accelerating.

The latest to do so was Indian mobile service provider Tata Docomo, which is rolling out Twittcom, an alternative service that permits its GSM prepaid customers to register their phone number and top up their accounts through the social network Twitter.

"With the increasing consumption of internet and the rise of social media, it makes ample sense to be present on the medium where people are spending time at present or they are likely to spend time in the future," said  Ritesh Ghosal, head of brand marketing at Tata Teleservices.

To register their account, customers have to post a tweet to @tatadocomo typing their mobile number preceded by the hashtag #reg (#reg 000000000).

Tata then sends a verification pin code via SMS that should be tweeted again at the handle @tatadocomo after the hashtag #code (#code 0000000000). The @tatadocomo handle will post back this tweet confirming the registration.

To activate a value-added service via Twitter, the subscriber needs to again type the @tatadocomo handle and the following #act# service value. The confirmation of the successful top up will also come in the form of a tweet.

Although these steps mean that customers’ personal data will be posted in the public environment of a social network, such as their mobile number, Tata Docomo is optimistic about the initiative."Our community on Facebook is amongst the strongest in the world and Twitter too will reach the same levels quite soon,” pondered Ghosal.

Barclaycard terminates its loyalty programme Freedom

By Raphael Michilis

Barclaycard has announced it is ceasing the offer of rewards through its Freedom loyalty scheme. And customers have until 26 July to redeem the rewards accumulated in the programme.

Although available to "over eight million cardholders", Freedom was being used by just over a million customers.

The unpopularity of the programme, the third biggest in the UK at launch two years ago, is attributed to limitations imposed to earning and redemption of rewards. 

The points were only granted for spending in selected stores and could only be redeemed at an even more reduced range of retailers.

The expenditure-rewards ratio in the Freedom scheme were also smaller than the offered by other programmes.

Barclaycard Freedom customers were rewarded 1%, and even less, of their spend in most of the for most of partners outlets.

Capital One loyalty card offers 5% in the first rewards, going to 1.25% after the third month. Santander 321 card gives from 1.5% to 3% reward, although it charges an annual fee.

Barclaycard said it is designing two new loyalty schemes to be launched by the end of 2012.

"These will provide tailored and valuable offers from thousands of retailers and allow participating consumers to earn freedom rewards on all spend, both at home and abroad," a spokesman said.

The credit card operator did not release further details.

Redemption

Earnings in the Freedom programme will cease on 21 June. 

Most cardholders will have their remaining rewards automatically credited to their account. However, those who have not used their cards in the last six months and have less than £3 rewards balance need to contact Barclaycard to redeem their points.

Zynga, AmEx offer prepaid card with FarmVille rewards

By Raphael Michilis
Zynga social games and American Express (AmEx) have teamed up to offer a co-branded prepaid debit card that rewards consumers with virtual currency and goods on FarmVille when they make purchases with their AmEx.

FarmVille players can subscribe for the Zinga Serve Rewards programme and will receive a card in the mail. The prepaid card can be loaded with credit via a bank account, debit card, credit card or with cash.

The Farm Cash Rewards will be only offered for the first five purchases worth $25 or more. But the programme will continue to expand, AmEx and Zynga said, and all purchases will receive in-game rewards tracked through an in-game control panel.

The companies’ plan is to extend the virtual money rewards to other games, including CityVille and CastleVille.

The two companies have linked virtual and real currency before.

Two years ago, they offered in-game rewards via the AmEx Membership Rewards programme.

In 2010, Zynga started to sell prepaid FarmVille cards at 7-eleven stores.

A couple of years ago, AmEx commenced its social media appeal to young consumers, launching programmes based on Facebook, Twitter and Foursquare.

Mobile users in Zimbabwe can borrow airtime from UK Lendme

Raphael Michilis 

UK-based and Africa-focused startup Lendme has kick-started its mobile airtime loan service in Zimbabwe. 

The platform permits subscribers to borrow credit worth up to $ 20 to top up their pay-as-you-go mobile account. Lendme promises not to charge users if the loan is paid back within seven days, and subscribers will not need to commit to a contract.  

“We don’t charge you a single cent! Just register, there are no strings attached,” the company says on its website.

The mobile credit can be paid back using a Lendme e-voucher, sold at over 500 merchants in Zimbabwe. The e-voucher denominations currently range from $ 0.25 to $ 5.00.

Lendme also plans to extend the offer of its e-voucher to lend money, so subscribers can borrow up to $ 100 to make payments on e-commerce.

  

Prior to the launch Lendme carried a user acceptance testing (beta testing) and Facebook campaign that distributed top-ups worth $10 to $ 50 to those who referred new subscribers.

“We recognise the inherent burdens airtime pre-payment inflicts on consumers hence, we have launched Lendme Airtime in Zimbabwe,” said Michael Charangwa, Lendme co-founder. 

ARCHIVES-Visa: e-gov payments made in 90% of countries

By Raphael Michilis
25 April 2012
Countries around the globe have continued investing in electronic payment methods despite the economic downturn and austerity measures, says the 2011 Government e-payments Adoption Ranking (GEAR), a study commissioned by Visa and published by The Economist Intelligence Unit (EIU).

More than one-third of the 62 countries included in the 2011 GEAR study received the highest possible score for their efforts to promote e-payment security. And more than 90% of the countries have systems in place to enable citizens to calculate and file their income taxes.

“The overall trend since 2007 is for governments to continue to make commitments to the development of e-payment platforms. There is increased ease and efficiency in the way citizens and businesses conduct transactions with their governments," said Lucy Hurst, associate director of custom research at EIU.

The study shows that the e-government initiatives have grown in correlation to the rise in alternative payment methods and broadband networks. The majority of the countries included in the survey have developed 3G, 4G and other mobile phone technologies, according to the study.

Along with security systems, this improvement is gradually bringing consumers to trust in governmental electronic payments alternatives, Visa concluded.



Key statistics

Other key trends observed by the 2011 GEAR included:
More than 86% of national governments have a VAT or tax collection system,
About 84% of the countries have a system for the collection of fines and tolls,76% percent of the governments surveyed have a procurement system in place.

Trust is the “key barrier to citizen adoption of government e-payments”, according to Visa and the EIU.

Despite the growth of e-gov initiatives observed since 2007, e-payments still have little penetration in services like obtaining/paying for an ID card, requesting unemployment, workers' compensation and welfare benefits, and disbursement of loans to businesses, reported EIU.



Study profile

GEAR 2011 analysed the performance of 62 countries for 37 indicators across the categories: Citizen-to-Government; Government-to-Citizen; Business-to-Government; Government-to-Business; Infrastructure; Social and Economic Context; and Policy Context.

The countries included in the EIU report account for more than 80% of world population and an estimated 94% of total world GDP.

The GEAR study also looked to the future and estimated that e-gov initiatives implementation and improvements will come along with varied transformations in several countries. Amongst them, the report foresees that:

·         Financial inclusion, particularly in the developing world, is likely to get a boost from the roll out of mobile banking services. Countries in Africa and Latin America are expected to see particularly strong gains in this area.

·         Mobile payments will likely see a huge uptake in the coming years. With more than 5 billion mobile phone users worldwide, mobile payments are likely to boom.

·         Automating standard services such as tax payments/refunds and social security contributions will likely be prioritized over other e-payment services.

·         E-payment security will remain an important issue to address and developing proven security measures will be necessary for the uptake of e-payments to flourish.

·         Public/private-sector collaboration on e-payment initiatives is likely to continue as governments try to do more with fewer resources. 

Russian North Credit Bank deploys BPC SmartVista

By Raphael Michilis 

Russia-based North CreditBank (NCB) has implemented payment processing solutions from Russia-headquartered BPC BankingTechnologies with the aim of improving the efficiency and flexibility of its operations.

BPC’s multifunctionalplatform SmartVista will replace a legacy processing system. According to thebank, the existing platform

hampered its capacity to launchnew products and expand its range of services.

Use of the BPC SmartVistasystem will enable the bank to meet Visa and MasterCard’s smartcard issuecertifications.

“Not only will SmartVistaenable us to launch new card products quickly and help us ensure that our ATMnetwork is operating at peak efficiency but it will also help eliminate fraud,” saidDmitry Sychev, NCB head of IT.

The retail unit of the bank will also deploy BPC’s SmartIssuer and SmartProproducts to integrate its card management and card production solutions.

The two components will provide NCB with an end-to-end credit card solution formagnetic and smart card personalisation, simplifying the design of new cardproducts. 

Free gifts make number of Wrapp users expand 66% in two months

By Raphael MichilisWrapp, the Swedish social e-gifting start-up, has enjoyed a phenomenal April and May.

By the end of May, Wrapp had attracted nearly 250,000 users, an increase of 100,000 compared to the end of March.

In the past two months, Wrapp users gifted 700,000 digital vouchers to friends via Facebook; in the first quarter of 2012, total Wrapp gifts totalled 1m.

In the US, Wrapp has enjoyed early success. Since launching last November, the app has featured in the top 25 Apple iTunes chart in the social networking category.

Wrapp was founded in 2011 and has attracted investment of USD10.5m, including backing from Niklas Zennström, Skype co-founder.

At the time of joining the Wrapp board of directors last year, Zennström said in a statement:

“Wrapp is targeting a huge market by leveraging two mega-trends: social networks and smartphones.”

In addition to selling gift cards from major retailers, Wrapp permits the user to send digital vouchers to friends via Facebook for free.

Free gift cards are uploaded everyday to the application by partner retailers, helping to boost Wrapp popularity.

The social gifting craze is attractive to merchants as a marketing weapon, as it provides access to customer data that can be used in highly targeted advertising operations.

Wrapp’s marketing highlights that the merchant is also rewarded with a friend-to-friend automated advertising campaign, as “each gift card posted on a recipient’s Facebook timeline or wall is seen by about 80% of their friends.”

According to Wrapp, the associated brands’ average sales are worth around four to six times the value of the free vouchers they provide, helping Wrapp gain popularity among suppliers.

Wrapp has reportedly signed up around 70 major retailers in the US and Europe, with 20 signing up since the end of March.

Global expansion
Already up and running in the US, Norway Sweden and the UK, Wrapp has plans to expand into another a number of other countries including Brazil, Germany, France, the Netherlands, Italy, Taiwan, Japan, Australia and Turkey.

At the end of May, Wrapp kicked of its service in Finland and opened an office in Poland.

The buzz created by the launch of Wrapp has also attracted a competitor offering from a German-based start-up, DropGifts.

DropGrifts' service offers free vouchers and, like Wrapp, allows several users to contribute to a single gift.

The digital vouchers can be converted into meals at restaurants, gym and magazine subscriptions, clothing and many other products and can be redeemed online or in person at a partner retailer.

Wrapp’s coupon is purely digital and cannot be printed, so the receiver has to present a smart device at store to be redeemed. By contrast, the DropGift version can be printed or even posted to the recipient’s home address in a physical version.

Other gift cards apps include US-based FreebeeCards. It went live on 21 May and enables Iowa-based companies to offer free gifts, rewards and discounts in the form of vouchers that can be redeemed via a smartphone or printed.

The value of the first FreebeeCards ranged from USD 6 to USD 1000, exchangeable at Jasper Winery and Farrell’s eXtreme Body Shaping gym club.

Wrapp opens office to offer free e-gifts in Poland

By Raphael Michilis
Swedish company Bohemian Wrappsody has announced it will soon launch its social gifting application Wrapp in Poland.

Wrapp has just opened its office in Warsaw in association with the online entrepreneur Lukasz Wejchert, developer of the mobile focused company Dirlango.

The company is now negotiating partnerships with Polish merchants to initiate its operations in the country.

Wrapp connects to Facebook and allow the users to send paid or even free electronic gift cards to their friends in the social network through a smart mobile device or a computer.

Wrapp partner retailers offer free gift cards daily. In the past five months nearly 250,000 users have given their Facebook friends over 1.7 million free gift cards that could be redeemed in stores controlled by about 70 US and European retailers, according to Bohemian Wrappsody.

The gift cards can be redeemed online or in person at a Wrapp partner retailer, in this case, the receiver has to present a smart device as the service “is purely digital,” and the electronic voucher cannot be printed.

Wrapp operates in the US, Norway Sweden and the UK, and already has plans to launch in Poland, Germany, France, the Netherlands, Italy, Finland, Taiwan, Japan, Australia, Turkey and Brazil.

Queen's visit slow down traffic in Piccadilly

Raphael Michilis 

23 May 2012

from a bus 14 in London

It is 19.23pm and the traffic is very slow in Piccadilly, Central London. 

My bus, the route 14 to Fulham road, got stuck in front of The Royal Academy of Arts, where Her Majesty The Queen and other members of the royal family attended a Diamond Jubilee celebration of the arts and the exhibition of the British photographer Terry O'Neill.

The bus took more than 45 minuntes to go from Piccadilly station to Green Park station, while paparazi and curious people gathered in front of the museum. 

"Terry is at The Royal Academy of Artsd to meet The Queen in this glorious day," twitted O'Neil.

In normal conditions, the same half a mile trip should take about eight minutes on foot, according to my map phone application (see photo).

.

SmartPay brings new e-payment platform to Zimbabwe

By Raphael Michilis
SmartPay has launched their new electronic payments platform Universal Electronic Payments System (UEPS) Switch in Zimbabwe, which the company claims is the first of its kind in the country.

The company says UEPS Switch is set to ease banking problems in Zimbabwe.

The UEPS Switch will enable settlement of inter-bank claims and link the payment systems of all banks, savings and loans companies, and building societies in Zimbabwe.

The platform will also serve the underbanked and unbanked segments of the country, enabling customers to load and spend e-cash, and other online transactions.

In addition, the platform is said to allow its users to make electronic payments even if they are offline.

SmartPay states on its website that “customers are able to effect transactions ‘offline’ in underdeveloped areas where power and communication infrastructure maybe lacking.”

SmartPay counts on a growing mobile market to support its business  in Zimbabwe. Mobile phone penetration rocketed from 40% in 2010 to 66% in 2011.

SmartPay also brings a biometric smartcard that provides a new and secure way to pay for goods and services throughout the country based on fingerprint identification.

The smartcards can engage in sophisticated transaction processing while offline, where security is ensured by data encryption and biometric control.

All transactions happen from the connection between a customer card and another card through a Point of Sale (POS) or an ATM. There is no minimum income requirement for individuals to acquire a SmartPay smartcards.

Users should also be able to get interest of their card balances, says the company website.

Housewives fight legislation that stops them from having a credit card

By Raphael Michilis

A group of discontent housewives started an online petition to fight the Credit CARD Act of 2009.

The group complains that the regulation prevents them from getting a credit card without her husband’s permission as they do not have proof of income.

“This is despite the fact that I make 95% of our household purchases, have an impeccable credit score and handle the majority of my family’s finances,” complains Holly McCall, author of the petition hosted at www.change.org.

“The new rules send a message that stay-at-home parents are not as credit-worthy as young adults still in school without their own income.” reads the petition about the .

The petition initiated in partnership with the online mother’s group momsrising.com appeals for the Consumer Financial Protection Bureau (CFPB) to fix the stay-at-home moms credit problem.

Meant to curb irresponsible lending and misleading credit card practices, the law denies credit to stay-at-home moms who say the Act sets women back half a century. "It is demeaning," said Holly McCall.


"This doesn't just affect stay-at-home mothers. What about the stay-at-home fathers whose wives work instead of them? And don't tell me that doesn't happen. It does. The longer this law stays unchanged the more people that are going to get hurt," protested Christian Ramage, who signed the online petition.

The Credit Union Times (CUT) newspaper reported on May 18 that Richard Cordray Director of the CFPB met McCall and received from her the petition, that - according to its profile at change.org - has reached 34,795 online signatures to date.

"As we've said previously, we are working to understand how the rule may be affecting stay-at-home spouses," said a CFPB spokesperson to the Huffington Post.

Cordray discussed the matter with Holly McCall and promised to come up with a response to her petition within 30 days from their meeting.

Europe accounts for 47% of world payments in renminbi

By Raphael Michilis

24 April 2012 

Europe has overtaken Asia Pacific in the use of the Chinese renminbi for global payments in the first quarter of 2012, according to the report RMB Tracker by Swift, the payments and messaging platform.

Aside from China and Hong Kong, Europe is the biggest contributor to RMB offshore transactions, accounting for 47% of the payments in renminbi worldwide. Meanwhile, Asia-Pacific’s share in RMB payments declined from 59% to 41%

RMB represented 6.7% of all European payments with China and Hong Kong in Q1 2012, an adoption rate slightly lower than the 7.2% observed in transactions with Asia Pacific countries.

However, European contribution to RMB payments is still more significant than its counterpart’s, thanks to its bigger absolute payments value.  The contribution in absolute value to RMB payments from several European countries is also bigger than that of many Asia-Pacific countries.

UK-based financial institutions are leading the City of London to be the next major offshore RMB centre. It did 30% of RMB payments and 46% of RMB FX in Q4 2011, staying on par with Singapore in RMB payments and first in RMB FX for the same period.

Africa and the Middle East also showed strong adoption of the RMB, but the overall value is still really small, the Swift report shows.

Adoption in the US and Canada was relatively good for that period, but nearly zero in Latin America.

Renminbi in numbers:

• 8.6% was the average growth of global payments from February to March

• 13.2% was the RMB growth for the same period, with its share climbing from 0.33% to 0.35%

• 16th was the position occupied by the RMB in the currency global ranking, after leaving the position 17th in February

Americans want mobile app to redeem credit card rewards while on summer holidays

Raphael Michilis
Mobile phones and tablets will be American travellers’ best friend this summer, says the financial corporation Capital One, in the Rewards Barometer research, conducted by BIGinsight.
 
The study heard more than thousand American credit cards rewards holder, who said they will use their mobile devices to find local hot spot coupons or redeem their rewards point for last minute travel deals.
 
More than 30% of respondents confirmed they use their cell phones or tablets to find restaurants, petrol stations, coupons and deals while away on holidays.
 
Before departing for their summer destination, 22% also use their mobile to program their holidays, researching for hotels and places to see, while 14% book their trip from their mobile device.
 
Some of them would also like to have a mobile application to redeem their rewards, 58% would not only to reserve, but pay for their hotels using rewards redeemed through their devices.
 
Nearly half of them (49%) would like to do the same to buy their airplane tickets.

Half of Americans plan to use rewards credit cards to pay for summer holidays

By Raphael Michilis
At least 67% of rewards credit card holders in the US plan to travel this summer, and half of them said they will use their cards to cover part of their trip expenses, according to the Rewards Barometer, a research conducted quarterly by BIGinsight for the financial corporation Capital One.
 
The 2011 edition of the research had found out 42% of respondents said they would use rewards cards to pay for their vacation expenses, 8 percentage points below this years’ result.
 
The majority of rewards card holders (54%) plan to spend between $500 and $2000 in their summer holidays this year.
 
For other 18% of respondents, the 2012 summer getaway budget will from $2,001 to U$3,000. 
 
The study also found out that almost two-thirds of the American reaward card holders do not plan to go away on popular summer holiday weekends such as Memorial Day, July 4th and Labour Day. 
 
Redemption
 
The Rewards Barometer also investigated how Americans plan to redeem their points, and found out that 58% of summer travellers will buy plane tickets with their credit card rewards. 
 
The second most popular redemption option is hotel expenses, with 42% of respondents likely to deduct it from their rewards, followed by fuel 18%. 
 
"Flexible rewards programs that allow cardholders to redeem their rewards when and how they want can make that vacation dream an affordable reality. When choosing a new rewards program, consumers should consider both the value of rewards and the ease of using them," advises Amy Lenander, Vice President of Rewards Programs at Capital One.

India: Electronic payments up, but cheque transactions are still higher

By Raphael Michilis
Electronic payments transactions in India rose by 27,7% in the 2011-12 period, and their volume was up nearly 70% year-on-year, showing unquestionable rising of its popularity.


However, cheques are still the preferred form of payment for high value transactions in the country, reports The Hindu Business Line.


According to the newspaper the traditional paper payment mode accounted for INR 98.9 lakh crore (about USD1.7trn) while the electronic counterparts accounted for only INR 22 lakh crore(USD 391bn) in 2011-12, says the newspaper.


More than INR 115.9 crore credit card, debit card, electronic clearing services (ECS) and national electronic fund transfers (NEFT) took place that year. A little less than the INR 134.1 crore payments made through cheques.


On the other hand, business with cheques followed another trend, falling around 3% in volume and the value of transactions in that period.


The volume of e-payments rose almost 10 times and the value of transactions around four-fold by 2011-12 from 2003-04 levels.


In contrast, the number of transactions using cheques registered slower growth of around 31% and the value has plunged about 15%.

Commuters can pay with smartcard in Jakarta

Electronic gates installed at Corridor 6

By Raphael Michilis

Jakarta’s bus rapid transit system Transjakarta will start phasing out paper tickets in its buses by the end of May and replace these with electronic smartcards that will be issued by DKI Bank.

The new e-payment system will be, initially, available in the Corridor 6, the route with the smallest volume of commuters using a bus in Jakarta.

The prepaid card will be called JakCard and will be extended to other commuter routes August, provided the pilot in Corridor 6 is successful.

“If the implementation is successful, we will integrate the JakCard as an e-payment for theJakarta commuter-line system in May next year,” Martono, Bank DKI director, said.

DKI Bank has agreed to provide all equipment needed for the e-payment system and will be responsible for its maintenance for 10 years.

The travel cards will be offered in two prepaid versions: one for daily commuters, permitting maximum balance of IDR1m (USD107), and the one for a one-way e-card that can be purchased at bus stops.

“The price of a trip will be deducted from the balance of a prepaid card every time it is swiped. Such cards will be available at bus stops and minimarkets,” said Muhammad Akbar, Transjakarta Management Authority (BLU) chief.

“Every day, Corridor 6 serves around 30,000 commuters, as compared to Corridor 1, which serves around 70,000 people. We have completed the installation of sensor machines at all bus stops on Corridor 6,” said Akbar.

The electronic system, expected to simplify commuting in Jakarta buses and reduce queues, had been introduced in Jakarta buses before, but was abandoned in 2009 after a lack of funding for maintenance from the Jakarta administration.

US: 24/7 Cards launches prepaid+remit solution to Latin American immigrants

By Raphael Michilis
18 May 2012

24/7 Cards has launched a prepaid card combining debit and overseas remittance services aimed to Latin American immigrants in the US.

The card, dubbed The Smarter Way to Bank and Send Money, permits its holders to send money abroad 24 hours a day, 7 days a week, make online payments and set up direct debits.

"We are proud to empower Hispanic-Americans and other immigrants with a safer, more cost-effective way to send money to their loved ones in Mexico, Central and South America, the Caribbean, and other countries, including China, India and the Philippines," said Lance Rosenzweig, 24/7 Card CEO.

The card can be loaded through direct deposit, bank transfer or at 24/7 partners, such as Walmart, 7eleven and Western Union.

It charges monthly fees of USD 9.95 for maintainance, up to USD 7.95 plus for remittance and another USD 2 for ATM withdrawals.

A pay-as-you-go version excludes monthly fees, but adds an extra USD 1 for Visa transaction.

The recipient can receive money at 24/7 remittance partners, deposited directly into a bank account, or even hand delivered to their home, in areas where home delivery is available.

24/7 Cards supports money transfer to a total of 23 countries across the globe, including Poland, Hong Kong and Russia.

About 95% of the UK population have never used a contactless card

By Raphael Michilis
10 May 2012
Only 5% of British consumers have used a contactless card, although 14% of the population own a card fitted with the contactless technology, revealed a recent study by international market researcher Mintel.

While around 8% of interviewees said they would immediately use contactless payments if they could, the research says consumers are not happy in being issued a contactless card without their request.

Mintel found out that 62% of the contactless card holders in the UK think it is a “more convenient” method of payment, while 28% were indifferent and 9% disagreed.

Mintel surveyed 2,000 people in the UK, and estimated that 9m British consumers are aware of the contactless capability on their card, while 3.8m “aren’t sure” they have one, said a company’s spokesperson.

“Consumers are still wary of contactless card payments, and compulsory upgrades risk further undermining consumers' goodwill towards the banks. There is anecdotal evidence of disgruntled customers closing accounts rather than have to carry a contactless card. If they only realise that they have been issued with this card months after the event, the reaction will be even less favourable,” said Toby Clark, head of UK Financial Services at Mintel.

Security is a big concern among the respondents, with 64% having said they worry about the use of a mobile instead of a payment card, and 58% being apprehensive about contactless cards.

“For those who have been issued with a card, though, it’s not security that’s preventing people from using contactless cards. Instead, it’s the limited acceptance and a lack of a compelling reason to switch from chip and PIN,” added Clarck.

The research in numbers:


43% of those using contactless cards had used the feature just a few before the Mintel.

62% of smartphone users and 71% of tablet owners would consider using contactless payment technology.

72% of consumers think think contactless cards should only be issued on request.

Pagseguro, Nokia bring NFC payments in Brazil

By Raphael Michilis
20 April 2012
Brazil’s first commercial NFC mobile payment application will commence in May.

The electronic wallet has been developed by the Nokia Institute of Technology (INdT) in Brazil, and will be available on Nokia’s C7, N9 and 701 smartphones, the Finnish company told.

The solution will be offered in partnership with Pagseguro, a payments company that belongs to UOL, one of Brazil’s largest internet service providers. 

The app enables both retail payments - at bars, restaurants and stores – as well as proximity-based money transfer between users.

Instead of a POS, the Nokia-Pagseguro service requires both merchant and consumer to have a handset with the same application installed.

“The money will be withdrawn automatically from a credit card account, a PayPal account or from any of the other supported payment types”, said Nokia.

Mobile commerce specialist David Eads, founder of Mobile Strategy Partners LLC, is optimistic about the future of m-payments in Brazil and complimented the Nokia initiative in the country. 

“The PagSeguro pilot is interesting because it ties P2P technology to the leading payment products in Brazil. This enables broad payment acceptance from anyone with the application. Unlike other pilots, it also removes the complication of merchant POS hardware,” says Eads. 

“Closed networks like these with economic incentives have a history of succeeding in various emerging markets. For example, BlackBerry Instant Messenger (BBM) thrives in Venezuela because it avoids text messaging fees. Usage exploded because of the network effect once it reached critical mass,” he points out.

He says the economic boom that the Latin American markets are experiencing provides a rich ground for the mobile payments market to grow.

He estimates that there are between 30-40% of consumers across Latin America who are underserved by banks – and this is where mobile money initiatives can generate revenues by serving this segment, he says.

Security

Pagseguro says that rather than being completely automated, the Nokia app will always request the user to enter a passcode before each individual transaction.

“So, in case the handset is lost or stolen, nobody will be able to make payments in the user’s name,” the company explains on its website.

“The recipient types in the amount they are to collect and taps their phone against that of the sender. The amount is shown on the sender’s screen and the transaction can be completed, when both parties agree”, Nokia says.

According to Pagseguro, the extension of the service to other brands will depend on phone makers adapting their handsets to the NFC technology. Nokia sells three NFC enabled models in Brazil: N9, 701 and C7.

Regulation

“The Central Bank of Brazil (BCB) and the Brazilian Communications Ministry are discussing the regulatory aspects of financial inclusion and the security requirements mobile payments in the country,” Aldo Mendes, head of monetary policy for BCB said during Cards 2012 in Sao Paulo in mid-April.

“Mobile ppayment is a global trend with potential to bring sensible benefits to society, with reduction in costs and price, better convenience to users, and improvement of the service standards through the increase of competition.”

“The costs to bring people into the financial system through mobile payments are much lower than expanding the number of bank branches and other solutions that need physical investment in infrastructure, people and other technologies,” Mendes said.

An official outline for the Brazilian mobile payments regulation might be announced in about 90 days.

The Brazilian mobile payments regulation will also guarantee the universality of the service, imposing rules that prevent barriers to new entries, according to Mendes.

Banks and mobile operators will be free to enter the market. Business models will have to permit interoperability “to allow different platforms to communicate amongst each other”, so that different models do not represent a barrier to business,” explained Mendes.

He added that the coming regulation will also ensure:

• Adaptability, so that “new technologies allow the current payment modalities to co-exist with m-payments”;
  
• That contracts and technologies for m-payments in Latin America’s largest country will have the flexibility to allow users to migrate to different operators and handset makers;
  
• The prevention of money laundering and protection of consumers’ rights.

MC Systems and Diebold launch ATMs said to recycle cash and refuse counterfeit

By Raphael Michilis 

18 May 2012

Jamaican software developer Management Control Systems (MCS) partnered with American ATM manufacturer Diebold Incorporated to launch a telling machine they claim recycles cash and refuses forged notes.

The recycling machine, that also accepts deposit of cash notes, was first installed Montego Bay in March. Another one was recently placed at the JNBS's Half-Way-Tree branch in the Corporate Area.

"In addition to the convenience of being able to withdraw cash at any time, (…) the machines will accept the notes directly, instead of notes in an envelope. And will count and request verification of the total lodgement, explained Dianne Smith-Sears, general manager of MCS.

The new machines speed up money availability, by updating the account balance immediately after the deposit, according to Smith-Sears. 

"I should also add, that the ATM will recognise counterfeit notes," she warned.

Not giving much detail, the MCS manager told the Jamaican newspaper, The Gleaner, that the counterfeit recognition technology is "built in" the ATMs and that they are recyclers because "reissue" the cash deposited into them.

"We believe that this technology will significantly cut the time spent in lines at financial institutions," commented Smith-Sears. 

She also said MCS will introduce “other aspects of deposit automation to its clients in Jamaica and the rest of the Caribbean”, citing the company also have introduced other commercial applications, innovative for the Caribbean, such as: the payroll packages Power Pay & BizPay; electronic top-up for prepaid mobile phones and an 'award-winning' online remittance system.

GRGBanking's ATM to issue gift cards

By Raphael Michilis

15 May 2012

Chinese ATM manufacturer GRGBanking has announced that its equipments will now issue debit and gift cards on demand.

The gift card issuing ATM “will be available in the market soon,” said Kevin Luo, director of business development at GRGBanking to SelfServiceWorld.com, not disclosing further details.

The ATM’s will be able to write out magnetic stripe or chipped cards, and roughly any type of gift cards, said Luo.

The machines will use a module fitted with an independent card box that can dispense standard-sized cards of any type.

The self-service solution will restructure the card-issuing process, maximise ATM utilisation efficiency, and extend traditional service channels outside the branch, said Luo to SSW.

He added that "it can also save cost — including human resource and time resources — improve customer satisfaction.”

Sentient Group raises USD 1.3bn and a slice of the funding can go to the Amazon

Hermasa Port, Itacoatiara - Amazon Basin in Brazil

by Raphael Michilis

The Sentient Group, a venture company based in the Cayman Islands, hinted it might fortify its investments in the Amazon basin near Manaus, Brazil.

The capital would be a slice from the USD 1.3bn the company has recently raised in its fourth private equity funding.

“The Fund’s objective is to invest in mine development opportunities globally. As the Fund’s mandate is global, we will look at opportunities in Brazil alongside of any other jurisdiction,” Nicholas Mead, Sentient Partner for Investors Relations, told Money World.

Since 2009, Sentient invests in the private company Brazil Potash Corporation (PBC), who is the chief holder of mineral rights of a major potash district, 400km long.

Sentient did not confirm it already has any plans in place for the potash exploration in the Brazilian Amazon. However, “Brazil Potash Corp. expects to develop its extensive property in the State of Amazonas, Brazil, into one of the world’s largest strategic, scalable and reliable sources of potash,” says the company website.

The potash is mainly used in the production of potassium based fertilizers. The potash deposits explored by PBC are located near major markets and on established shipping routes and ports, that make the area more attractive for the Sentient investments.

In its investment portfolio, Sentient lists iron ore mining Ferrous Resources, also Brazilian, as well as companies from Australia, China, and the neighbour Argentina.

Colcci showcases its name in Mayfair

Raphael Michilis
Brazilian clothing label Colcci is showcasing its streetwear line tomorrow night in Mayfair, London. 


Colcci is the largest brand holder and manager in Latin America, and has already been selling its products in London in the past few years, mainly among the Brazilian expat community.  


Now Colcci wants to gain grounds outside Brazilian geographic and demographic borders.

To spread its name in the fashion world, Colcci made top model Gisele Bundchen the face of its brand since 2005. 


Colcci put American actor Ashton Kutcher together with Victoria's Secret supermodel Alessandra Ambrosio in a spicy campaign that brought the Brazilian label one international step forward, at least within the media.

Basware offers PEPPOL compliant e-invoices

By Raphael Michilis published on 02 May 2012
Basware, an e-invoice solution provider, has fine-tuned all of its internet-based solutions with the standards of the Pan-European Public Procurement Online (PEPPOL) initiative.


The implementation of PEPPOL will enable Basware clients to transmit e-invoices and documents to organisations within Europe in accordance to with the initiative standards.


“As a supplier, it is essential to be PEPPOL compliant to meet customer demands. When sales and invoicing processes are harmonised, it makes the relationship between buyer and supplier mutually beneficial and opens up new business opportunities, particularly against our competitors that may not yet be compliant,” said Pekka Leppälä, sales director at Staples, one of the Basware clients using PEPPOL e-invoices.


Esa Tihilä, Basware CEO, said: “Basware believes in openness and collaboration between all parties across trading networks. The support we have provided to the PEPPOL initiative is based on recognition and understanding of the importance in providing an EU-wide standard for electronic document exchange upon which organisations can rely to automate their P2P processes.”


The new Basware solution comes three months before the Norwegian Government will make PEPPOL compliant e-invoicing compulsory.
This will make PEPPOL the “backbone of public electronic invoicing in Norway”, according to the Agency for Public Management and e-Government (Difi).


“The high standards for invoice content set by PEPPOL will ensure public authorities receive better-quality invoices. The wider business community will also prosper through simpler and more efficient invoicing processes,” said Olav Astad Kristiansen, senior adviser, Difi.


Related articles:


‘Mild growth’ in e-invoicing adoption among US corporates

Orange and Polish businesses to promote e-invoicing

By Raphael Michilis published on 16 May 2012

Orange Poland has teamed up with the Polish Confederation of Private

Employers Lewiatan to create an electronic payments coalition called “I choose e-invoice” (Wybieram e-fakture).

The implementation of e-invoicing solutions could reduce the overall costs of the invoicing process by about 80%, which is estimated to be around USD2.6 per invoice printed and posted, according to the e-fakture in Poland report published on the Lewiatan website.

Only 8% to 11% of the 1.5bn invoices issued in Poland every year are emitted electronically, according to the report.

The report highlights businesses of all sizes will profit from e-invoicing.

A large corporation issuing 20,000 invoices a month could save USD3.84m, while a smaller company sending out 1000 invoices on paper per month could save more than USD2,500 in that period, the document estimates.

Further to the processing costs, electronic invoicing should reduce costs of debt service and increase investment income, by shortening the billing cycle, which with paper takes from 19 to 40 days until the end of the process, according to the Polish National Clearing House (KIR SA).

Besides persuading companies to adopt the electronic solution, the e-fakture alliance wants to promote changes in Polish laws to promote e-invoice take-up in the country, the Clearing House says on its website.

The slow e-invoice take-up in Poland is, partly, due to marketing fragmentation caused by the complexity and lack of standardization of systems deployed across the EU, concludes the report.

According to another study, the savings from moving to electronic invoicing could reach at least USD51bn per year in Europe, Ricoh UK found.

In the United Kingdom alone, the savings could surpass USD5.5m, says the report.

Business and government electronic invoicing this year are expected to be 30% higher than in 2011, but penetration is still low with only 18% of all European invoices likely to be issued electronically, according to Ricoh.

Related articles:

'Mild growth’ in e-invoicing adoption among US corporates


Basware offers PEPPOL compliant e-invoices

Archive - Plastiq raises USD 2.35m in angel funding

By Raphael Michilis
15 May 2012
The American card processing start-up Plastiq has raised $ 2.35m in its first angel funding all-equity round.

The investment comes from capital firms Atlas Venture and Flybridge Capital Partners, according to a notice filed at the US Securities and Exchange Commission on 11 May.

The two venture companies regularly invest in technology innovation start-ups.

Plastiq intermediates online credit card payment of “large” and “luxurious” purchases - such as cars, boats, rent, and real estate - aimed at high end credit card holders of Discover, MasterCard World Elite card, the VISA infinite, or the AMEX platinum, says the Plastiq website.

Plastiq president, Eliot Buchanan, said the company targets “transactions in the $ 5,000 to $ 10,000 range,” reports an article on Mass High Tech (MHT) website.

Buchanan said Plastic “have upped the headcount to 10 employees, and by the end of the year, they hope to be at around 25,” reads MHT article without specifying how Plastiq will apply the capital raised in the seed funding.

Besides presiding Plastiq, Eliot Buchanan is also a MasterCard employee since February 2011.

Nigeria: Upperlink launches PayChoice cashless e-solution

By Raphael Michilis published on 09/05/2012
Upperlink, an internet applications and database management company, has launched PayChoice, a software that promises to deliver clear and fast online payment to meet the Central Bank of Nigeria’s cashless society project terms.


“PayChoice is integrated to work with Interswitch’s Quickteller and on all channels such as ATM’s, POS and the web, thereby making it a convenient platform for payments and collections,” said Segun Akano, managing director and CEO of Upperlink at the media presentation of the payment solution to Lagos City Polytechnic.


Akano highlighted that the solution is customiseable to meet clients’ particular requests and is lined with all Nigerian banks through available switches. The solution integrates with organisations’ in-house Enterprise Resource Planning System (ERPS) and institutional portals seamlessly, Upperlink said.


“PayChoice is an enterprise suite of payments and collections solution specifically built to address challenges being experienced by large corporate organizations, small and medium enterprise (SMEs), educational institutions and  other business entities to process outward and inward payments”, said Akano.