Credit

Progress in the creation of the Single Euro Payments Area continues, but the banking industry still will not meet the voluntary December 2010 deadline for SEPA credit transfers and direct debits, contends the European Central Bank, which now is encouraging European legislators to set a mandatory timeline.

Indian Railways plans to launch an integrated smart card for the city of Mumbai, according to an official from the Centre for Railway Information Systems, the transit agency’s national information-technology arm.

Charge-off rates on outstanding receivables for the six largest credit card issuers in the United States declined during the third quarter ended Sept. 30 compared with the same period last year, according to Moody’s Investors Service.

Consumers in the United Kingdom are spending less with credit cards, but they have not abandoned the cards as a desired form of payment, PaymentsSource data show.

Visa Inc. is making inroads into the world of third-party software development, bolstering its ability to compete in e-commerce payments.

Almost no part of banking has changed as dramatically in the past year as the credit card industry — OK, maybe mortgages — but cards have faced the triple hit of massive re-regulation, consumer defaults and declining spending. So when 60% of a company's revenue comes from card processing, it goes without saying that the past two years have been challenging. But TSYS has persevered, continuing with its plan to diversify into merchant-acquiring and the community bank market, and holding onto enough cash to make acquisitions if the price is right.

The online loan facilitator Prosper Marketplace Inc. has expanded the types of loans available on its website.

Despite reporting a strong third quarter, American Express Co. remains focused on challenging a U.S. Department of Justice lawsuit over alleged merchant steering and how it might affect the brand’s cardholders.

Financial institutions should focus on marketing to individuals between the ages of 18 and 34 to grow their emerging consumer-payments businesses. But the so-called Millennial Generation surprisingly is nonplussed by mobile payments, despite its growing exposure in the market, suggest the results of a recent study.

A cacophony of marketing voices is urging ISOs and acquirers to consider mobile point-of-sale services as a way to grow revenue and potentially reach new merchants.

Two more retailers have joined Commonwealth Bank’s contactless-payments initiative in Australia, adding more momentum to adoption of the technology throughout the country.

Citing growth from new clients and improving charge-off trends, Alliance Data Systems Corp. on Oct. 20 announced dramatic increases in third-quarter revenue and profitability for its private-label credit card unit.

LAS VEGAS — In their efforts to sign people up for mobile banking, banks can be their own worst enemy.

Spartked by a 14% increase in cardmember spending, American Express Co. Oct. 21 reported net income of $1.1 billion for the third quarter ended Sept. 30, up 71.9% from $640 million during the same period last year. Total revenue net of interest rose 39.6%, to $6.7 billion from $4.8 billion.

Karnataka Bank Ltd. on Oct. 20 became the latest bank in India to launch a biometric smart card for cash withdrawals, according to the Bangalore-based bank.

Zimbabwe’s first mobile-payment system launches next month.

The head of the central bank in Philippines reportedly is warning against government efforts to limit the interest rate applied to credit cards at 1% per month.

If Total System Services Inc. were a baseball team, the transaction processor’s third quarter would constitute a rebuilding season.

New opt-in requirements for debit card overdraft protection likely will reduce U.S. Bancorp’s revenue by more than $250 million this year, while changes from the CARD Act will cut the company’s revenues by another $160 million to $180 million, the company said Oct. 20 when announcing its earnings for the quarter ended Sept. 30.

VeriFone Systems Inc.’s move to buy the point-of-sale terminal business of card maker Gemalto NV could be a good fit for the terminal maker, especially if its quest to buy rival Hypercom Corp. fails, analysts say.