Introduction

The Payment Card Competitor Tracker provides expert analysis and opinion on the strategic moves of leading competitors in the payment cards market. Produced on a quarterly basis, the Tracker is a global product and consistently covers players such as American Express, Barclaycard, Capital One, Citigroup, Discover, GE Consumer Finance, First Data, HSBC, JCB, MasterCard, Standard Chartered and Visa.

Scope

Highlights

Reasons to Purchase

Overview 1
Catalyst 1
Summary 1
Methodology 1
Table of Contents 1
Introduction 2
Who is the target reader? 2
Changes to the format of the Competitor Tracker in 2007 2
The Payment Card Competitor Tracker is now organized by theme 2
An extended, topic driven commentary replaces the Cards & Payments Team view 2
How to use the Payment Card Competitor Tracker 2
Product, Services, and Innovation 5
Roundup of the key developments in Q3 2007 5
Card product developments 5
Opportunities for co-branding are increasingly rare, but there have been some interesting launches 5
In terms of other product developments, Barclaycard's new ``Breathe`` product is one of the first ``green`` cards on the market 5
New Payment Technologies 6
A key area of development has been contactless payments 6
Issuers are showing increasing interest in the application of mobile payments and banking services 7
ANZ Bank 8
Australia: ANZ announces reduction in credit card exception fees to A$10 8
American Express 8
Global: American Express faces travel insurance lawsuit 8
Singapore: DBS and American Express launch credit card for travellers 9
US: American Express announces an expansion in the acceptance of ExpressPay 9
Bank of America 9
Canada: MBNA and Futura Rewards launch co-brand 9
Barclaycard 10
UK: Barclaycard launches 'green' credit card 10
UK: Barclaycard launches contactless credit card 10
US: Barclays launches co-brand with US Airways 10
Capital One 11
UK: Capital One launches new credit card 11
Citigroup 11
China: Citibank launches first drive-through ATM 11
Malaysia: Citibank launches mobile bill payment service 11
Malaysia: Citibank launches mobile World Privilege service 12
Philippines: Citibank announces reward points raffle 12
Singapore: Citibank launches low-limit card 13
Singapore: Citibank launches three-in-one card 13
US: Citi and Obopay announce mobile payment trial 13
Discover 13
US: PULSE expands PIN-less recurring debit feature 13
Grupo Santander 14
UK: Abbey to launch new cash back credit card 14
JCB 14
Taiwan: JCB launches contactless payments in Taiwan 14
MasterCard 14
Canada: MasterCard announces first EMV card purchase 14
Ireland: MasterCard to help AIB convert debit cards to Maestro 15
US: MasterCard announces expansion in the acceptance network for PayPass 15
US: Central Bancompany to issue PayPass debit cards 16
US: MasterCard launches discount program for business card holders 16
RBS 16
UK: RBS launches mobile banking service 16
Visa 17
Asia Pacific: Visa announces that 20% of its cards are now EMV standard 17
Singapore: UOB launches a contactless credit card with cash rebate 17
Spain: Contactless payments introduced in Madrid 18
Taiwan: Visa to implement mobile platform 18
US: Visa launches contactless payments-enabled key fob 18
US: Shell rolls out Visa partial authorization solution for prepaid cards at US pumps 19
Westpac 19
Australia and New Zealand: Westpac unveils new responsible lending initiative 19
Papua New Guinea: Westpac Bank introduces money transfer services 19
Other 20
China: China UnionPay to offer mobile payment service for utility bills 20
Malaysia: EON Bank to issue contactless debit cards 20
M&A, Partnerships and Organic Growth 21
Roundup of the key developments in Q3 2007 21
The third quarter was relatively quiet in terms of mergers and acquisitions. 21
RBS continues to move towards acquiring ABN Amro 21
Meanwhile, American Express has spun off its banking arm to Standard chartered 21
In a move to better target the prepaid market, Capital One acquired Netspend 21
HSBC has been increasing its interests in the Asia Pacific region 21
Several issuers seem to prefer organic growth when expanding into new markets - notably China 21
There has been more activity on the partnerships front 22
American Express and GE Money have been concentrating on growing their cards businesses by issuing through partners in different countries 22
Activity on the processing side has been brisk 22
First Data has been acquired by KKR 22
TSYS has also been active in Europe and the US 22
ANZ Bank 23
Vietnam: ANZ unveils plans for new branches 23
American Express 23
Japan: Mitsubishi UFJ to issue American Express branded products 23
Kazakhstan: American Express launches cards in partnership with Kazkommertsbank 23
US: Harris Bank to issue American Express branded products 24
Barclaycard 24
UK: Barclaycard renews processing contract with TNS 24
BBVA 24
Latin America: First Data and BBVA Bancomer extend payment processing contract 24
US: BBVA completes acquisition of Compass Bancshares 25
Capital One 25
US: Capital One announces acquisition of NetSpend 25
Citigroup 26
China: Citibank receives regulatory approval for Dalian branch 26
Mexico: Banamex launches co-brand with national football team 26
Taiwan: Citibank launches multi-retail co-brand 26
Discover 27
US: Discover expands debit relationship with Bank of America 27
First Data 27
Brazil: First Data announces acquisition of Check Forte Processamento de Dados 27
Germany: First Data gains approval to provide debit card processing 27
Germany: First Data to provide prepaid card processing for Dresdner Bank 27
Germany: First Data announces processing deal with Dresdner-Cetelem Kreditbank 28
Latin America: First Data and BBVA Bancomer extend payment processing contract 28
Poland: First Data finalizes acquisition of POLCARD 28
UK: First Data to take on Experian's processing business 28
US: First Data announces mobile banking partnership with mFoundry 29
Global: First Data announces processing partnership with Chordiant 29
Global: First Data shareholders approve KKR merger proposal 29
Global: KKR completes acquisition of First Data 30
GE Money 30
India: GE Money announces credit card issuing JV with LIC 30
Japan: GE Money to issue American Express branded products 30
Poland: GE Money acquires majority stake in Bank BPH 31
US: GE Money acquires Chevron's credit card portfolios 31
US: GE Money and Provident Bank to jointly provide credit cards 31
HSBC 32
China: HSBC establishes Shenyang office 32
China: HSBC enters China's rural market 32
South Korea: HSBC announces acquisition of majority stake in KEB 32
Vietnam: HSBC to increase shareholding in Techcombank to 15% 33
JCB 33
Japan: Growth in acceptance for JCB cards issued outside Japan 33
Japan: Hitachi and JCB join forces for biometric payments 33
JPMorgan Chase 34
China: JPMorgan Chase wins approval to incorporate in Beijing 34
KBC 34
Russia: KBC to acquire Absolut Bank 34
RBS 35
China: RBS establishes office in Beijing 35
South Korea: RBS in negotiations to open first branch 35
UK/ Netherlands: RBS shareholders back ABN Amro bid 35
Standard Chartered 36
China: Standard Chartered planning to launch credit cards 36
Global: Standard Chartered to acquire American Express Bank 36
TSYS 37
Russia: Tinkoff Credit Systems selects TSYS to provide credit card services 37
UK: TSYS and Lloyds TSB deliver new prepaid card for migrant workers 37
UK: TSYS signs card processing agreement with Nationwide 37
US: TSYS and First Horizon to offer healthcare payment card 38
US: TSYS to provide merchant processing services to Veracity 38
Staffing and Strategy 39
Bank of America 39
US: Bank of America increases ATM fees for non-customers 39
Barclaycard 39
US: Barclays announces staff change 39
US: Barclays passes major outstandings milestone 39
Discover 40
Global: Discover announces board changes 40
Visa 40
Visa appoints new CFO 40
Appendix 41
Methodology 41
Further reading 41
Ask the analyst 41
Datamonitor consulting 41
Disclaimer 41