BeatsMe wants to connect DJ's and party goers through mobile application

By Raphael Michilis

Social networking is quickly contaminating all segments of the current economy. More and more, success means popularity in the crammed cyber communities, and absence in those digital social spaces virtually means your product doesn’t exist, thus it doesn’t sell.

The music industry was one of the first to realize the social trend and sound waves flooded the now almost forgotten MySpace, with a countless number of artists setting up profiles and collecting followers.

Since then, singers and musicians have fought for a space in the internaut’s computer screen, but very few platforms dedicated to music have thrived and most of them left out a growing segment of music, the DJ’s.

Spotify has recently adapted its services to feature on Facebook updates, but it is still not dedicated to link the artists to their audience.

To build a bridge over this gap, the San Francisco-based startup BeatsMe Inc has initiated a Beta trial of its music social network mobile and web application.

The company aims to help DJ's promote their work and drive their audience up. On the other side of that bridge, BeatsMe promises to present new music to listeners bored of the sound they are used to.

The app lets DJs interact with their online audience as well as live and immediate connection with party goers at the club where they are palying.

Similar to Shazam app, BeatsMe identifies a song while it is being played and allows the audience to instantly buy the tune.

To raise capital and finance their idea, BeatsMe co-founder Joseph Brilliant is offering a batch of the company’s securities worth $1m for sales.

The “private offering” form was file today with the US Securities and Exchange Commission (SEC), but did not have any buyer. The form is generally filed when the funding is concluded.

GlobalCollect partners with BOKU to offer mobile payment solution

By Raphael Michilis

Online payment service provider GlobalCollect has integrated technology from mobile payments firm BOKU to its international payment network, and will make mobile phone checkout available to its web merchants.

The new partnership will allow mobile payments as a mainstream payment vehicle and will give GlobalCollect merchants access to 4 bn potential new customers from BOKU’s mobile payment network of over 260 telcos in 67 countries.

“It [BOKU] was clearly the best option for our merchants, who now through the partnership can substantially increase checkout conversion, reduce cost and accelerate time to market of mobile payments, “ said John Snoek, GlobalCollect VP marketing, about the selection of BOKU as the company’s global partner for mobile payments.

BOKU's m-payments service will permit GlobalCollect's customers to shop online using their mobile number via SMS, and have purchases charged on their phone bill.

GlobalCollect renders BOKU's platform to help merchants complete backend work, such as foreign exchange, granular price points, multiple currencies and languages.

"Our merchant partners typically see significant, immediate increases in their market reach and checkout conversion, and we expect the same for GlobalCollect merchants," said James Patmore, BOKU senior vice-president.

The partnership leverages BOKU's pricing and transaction solutions built by experienced players including Amazon, Google, PayPal, Yahoo, Visa, BarclayCard, Bank of America, and AT&T.

BofA Merril releases iPad e-payments and e-invoicing app

By Raphael Michilis
Bank of America Merrill Lynch (BofA ML) has launched an iPad app version of Paymode-X, the bank’s online payments and electronic invoicing solution powered by Bottomline Technologies.


The portable platform gives treasurers real-time access to critical corporate payments information, and mobility, allowing them to take actions to ensure that payment and settlement cycles continue to flow wherever they go.


“It’s an incredibly powerful tool, allowing businesses to remotely connect to their payments and invoicing system, and as a result, have better control, efficiency and predictability of their cash flow,” said Kevin Phalen, head of card and comprehensive payables at BofA ML.


Paymode-X connects users to a private network of over 185,000 suppliers that accept e-payments and send e-invoices, as well as supports paper cheque print services through single file integration.


In 2011, BofA ML clients processed over 88 millions of transactions worth more than $ 125bn through Paymode-X. 

Credit cards direct mail stumbled 33% in the US last April, says Mintel

By Raphael Michilis
The volume of credit cards offered by post in the US has fallen 33% in April, according to data from market researcher Mintel.

American households received 260 million offers for new credit cards last April, 130 million lower the amount put forward in the same month of 2011, and the lowest estimated monthly mail volume tracked in the past 25 months.

“April marks a new low for the credit card direct mail decline that began in December 2011,” says Andrew Davidson, senior vice president at Mintel Comperemedia.

He predicted the annual volume of credit cards directly mailed in the US will also take a plunge.

“Credit card direct mail volume will be significantly lower in 2012 than 2011,” he said without risking an exact figure.

Despite the numbers, Davison has a somewhat optimistic position and said the downturn is not a sign of a long term trend, just a “temporary hiatus” in the activity, and other advertising modalities are supporting this “traditional channel”, rather than replacing it.

The fall is result of a “more cautious approach” adopted by the issuers due to an uncertain economic atmosphere, said Davison.

He explained that credit card direct mail is cyclical, and it will return to its normal volume levels along with the regain economic confidence in the US.

“For credit card issuers this is a great time to be in the mail. The mailbox is less cluttered and it is easier to get consumers to notice your message,” suggested Davison.

Giftango’s digital vouchers enter the European market

By Raphael Michilis
American digital gift card corporation Giftango has kicked off its European expansion plans with the opening of an office in Ireland and the partaking of its first ten partners in the UK.

This bigger step comes after about a year of “conversations with leading European merchants and the corporate programs that buy gift cards from them,” said Marcell King, vice-president of Merchant and International Development for Giftango.

Giftango will supply its partners’ customers with digital coupons issued nearly instantly,that will replace the currently printed gift cards and coupons that take days to be issues and received by post.

“We love that our program participants will now be able to receive their vouchers by email or SMS to their PC’s and smart phones,” says Kevin Lake, CEO of Countdown a loyalty program firm operated by MB Solutions (Holdings) Limited, and one of Giftango first partners in the UK.


“We’ve been a long- time proponent of delivering digital vouchers in our programs. It’s great for the consumer, it’s great for the merchant, and it’s great for us. We’re excited that our partnership with Giftango will enable us to expand our portfolio of digital vouchers,” said  Jonathan Grey, CEO of Ovation Incentives, another Giftango UK partner. 

The first lots of digital cards will be aimed to the corporate segment, which accounted for 52% of the total vouchers sales in the UK in 2011, according to Giftango.

“We learned a few things taking this thoughtful approach. The UK B2B gift card market is poised to yield a very high return for those corporations and merchants launching digital gift cards. The opportunities for digital gifting developing in both the mobile and social markets cannot be denied. Today we’re introducing a corporate eGift product that fits the UK market,” said King.

Giftango’s digital coupon B2B Channel Program will initially include Marriott, Hotel Voucher Shop, Theatre Tokens, Travelocity Gift Cards and SpaFinder.

Alternative mobile wallets intimidate banks

By Raphael Michilis
Almost half of American consumers (48%) wish to use a mobile wallet and would consider alternative players for banking services, according to a study published on 4 June by financial researcher Carlisle & Gallagher Consulting Group (CG).

Peter Olynick, CG’s Card & Payments Practice leader, estimates that “within five years, half of today’s smart phone owners will be using their phones and mobile wallets as their preferred method for payments”, causing banks to loose market share in the future if they don’t act now.

“The competitive threat from new entrants is real. Consumers are open to considering alternatives to their primary banks to provide mobile wallets and even core banking services,” said Olynick.

“Banks need to proactively consider how their products will stay ‘top of wallet’ in the new mobile wallet world,” he said.

Among the mobile wallets enthusiastic consumers heard by the survey, 80% said they would choose PayPal as their m-wallet and primary bank alternative if it offered banking services.

Google would be the option for 60% of them. Other 60% of consumers interested in m-wallets would also consider using Apple as their banking services player and digital wallet, although the company does not offer such services.

Mobile wallets make an efficient way to trim down consumers’ credit card frustration with the volume of offers they receive, keeping track of payment due dates, and their inability to track terms and conditions for each of their cards, according to the study.

Minimizing interest payments, maximising loyalty programs and ability to make better payments were rated as the most valuable advantages of digital wallets services for 65% of consumers. Other consumers said they believe m-wallets make shopping easier, faster and more fun.

Combining these features in customized mobile wallets may help banks keeping customers satisfied and reducing market share loss, concludes the survey that heard 605 American consumers in April.

Fashion brand Hayward Luxury raises $1,5m

By Raphael Michilis

Los Angeles-based fashion brand Hayward Luxury Incorporated has raised nearly $1,5m in a private equity funding round registered at the US Securities and Exchange Commission (SEC) early this week.

According to notice filed at SEC, ten investors took part in the funding round of the brand created in 2007 by Marin Hopper, granddaughter of Hollywood agent and producer Leland Hayward.

The deal was co-signed by Hopper and Hayward Luxury’s CEO, John Goldstone, who might receive together $12,023 from the offering, according to SEC files.  

The document also shows that a total of $517,533 of the stock offering remained unsold.

Small business online community Manta.com estimates that Hayward Luxury has annual revenue of $200,000 and has two employees only.  

Hayward Luxury produces women’s handbag and accessories inspired in the lifestyle of Hopper’s grandfather.


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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.

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.

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.

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.

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.

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.

Georgia Public Policy Foundation demands prepaid cards for benefit payments

By Raphael Michilis 

10 May 2012

Georgia Public Policy Foundation (GPPF), a free-market think tank based in Atlanta, has called on the state government to adopt prepaid cards as the primary method for the payment of unemployment benefits, where paper cheques and direct deposit into a bank account are the only ways to receive the benefit.

The foundation argued that the migration would benefit both beneficiaries and taxpayers. 

 “Georgia allows state employees and people receiving child support to accept payments on a prepaid card. It’s time to expand access. In a state where so many are without a bank account and the unemployment rate is 9.1%, we should strive to deliver services in a way that doesn’t needlessly burden those most impacted by the recent recession and weak economic recovery,” Kelly McCutchen GPPF president and CEO, said in an article published on The Atlanta Journal-Constitution on May 9.

According to McCutchen, 12.2% of the Georgian population is unbanked. More than 9% of Georgia’s almost 10m inhabitants are unemployed and the Government has just approved a cut in the unemployment benefit from 26 to 14 weeks.

He argued that the government and taxpayers would also gain benefits from the migration to prepaid cards thanks to the reduction of costs and inefficiencies related to issuing paper unemployment cheques.

Other states that have moved to prepaid card benefit payments, such as Mississipi, have seen such gains already, said McCutchen.

“The cost of issuing paper cheques compared with the cost of depositing money on a prepaid card is approximately $1 versus 10 cents”, he said.

“Ninety percent of Mississippi residents receiving unemployment benefits [on prepaid cards] were able to access the funds at least two days earlier than if they had been paid by cheque. They also no longer had to pay cheque-cashing fees or worry about carrying cash around,” added McCutchen.