Alto Global Processing: Barclays Rolls Out Pingit Mobile Payments in UK

In a move Barclays Bank PLC hopes will make consumers wonder how they ever used to exchange funds with one another, the United Kingdom-based bank is making mobile funds transfers available to all UK bank accountholders through a free software application called Pingit.

During the initial launch of the service, only Barclays accountholders will be able to send funds, but consumers older than 18 with accounts at any bank can receive payments after registering on the bank’s website, the bank announced Feb. 16.

The service appears to be similar to the QuickPay person-to-person funds-transfer service JPMorgan Chase & Co. offers.

Barclays plans to make Pingit available to all UK bank accountholders by early March, the issuer stated in a press release.

The service links a Barclays customer’s account with his mobile-phone number, allowing the individual to transfer funds by typing in the recipient’s mobile number when using the application, Barclays stated.

Because UK’s Faster Payments Service handles the transfers, which customers protect with a five-digit passcode, funds move directly from the sender bank account to the receiver bank account, Barclays stated. Pingit alerts recipients via text messages that funds have been added to their accounts.

Barclays did not indicate any fees for the funds transfers in the press release, though the issuer website indicates “normal transaction charges may apply” to business customers.

Customers, who will require a smartphone to send funds, may download the Barclays Pingit application from the Apple Inc. App Store, Research in Motion Ltd. Blackberry App World and Google Inc. Android Market.

Barclays views the application as potentially helpful for families and friends who may need to split a bill or lend money to one another. In addition, small service-related entrepreneurs, such as plumbers or carpet cleaners, could receive payments through the funds transfers, the bank stated.

Antony Jenkins, Barclays chief executive of retail and business banking, views Pingit as a revolutionary step in how consumers exchange funds. “For friends splitting the cost of dinner, repaying a borrowed £10, or people sending money to a son or daughter at university, it’s free, quick, convenient, secure, and easy to use,” Jenkins stated in the press release.

Users may send and receive funds in less than 30 seconds, without having to enter account details, Jenkins added. “I’m sure we’ll soon be wondering what we did before it,” he suggested.

Barclays should be congratulated for continuing to innovate and push mobile payments in the UK, but Pingit could encounter a few bumps along the way, says Zil Bareisis, a London-based senior analyst for research firm Celent.

“The first hurdle for the bank is making absolutely sure that when someone is trying to link their bank account details to a mobile phone, they are definitely the legitimate owners of both,” Bareisis says.

However, the banks could face a double-edged sword in securing legitimate data, especially from those consumers who initially have to register online to receive payments because they do not have a Barclays account, Bareisis suggests.

Early feedback on the new application indicates some consumers contend the registration process is “deliberately cumbersome,” which could prove to be a barrier for some who otherwise would be willing to try Pingit, he adds.

In addition, funds transfers through Faster Payments are irrevocable and final, Bareisis notes. “This puts the onus very much on consumers to make sure that they select the correct mobile number and enter the right amount, as mistakes may not be easily reversed,” he suggests.

Bareisis contends small-business operators ultimately may benefit the most from Pingit, but he remains unconvinced that consumers need a mobile setup to share dinner bills.

“The traditional example of person-to-person payments of ‘splitting a restaurant bill’ is overused,” he says. “In the UK, a group of friends after a meal would just ask the waiter to split the bill directly on their credit or debit cards.”

As for Pingit security, a fraud-protection and risk-management company executive suggests fraudsters most likely will target mobile-payment applications as they steer away from the difficulty of hacking chip-and-PIN transactions.

“Barclays’ launch of PingIt is a very positive step forward in the development of ‘mobile money,’ and we fully support it,” Pat Carroll, CEO of Ireland-based ValidSoft, said in a statement released to the media.

However, fraudsters attempt to manipulate both the sending and receiving of cash through tactics such as sim swap, a technique whereby fraudsters can divert calls or actions made via a phone away from the number they are intended to reach and toward a different number for their own gain, Carroll added.

The Barclays announcement continues a trend in which software developers, payments companies and banks seek ways to make mobile-payment methods an easier option for consumers.

Last month, Scottsdale, Ariz.-based Spindle Inc. released mobile applications for P2P, person-to-business or business-to-business payments.

Source: http://www.americanbanker.com/issues/177_33/Barclays-debuts-P2P-mobile-payments-UK-1046770-1.html

For more information please contact Luca Bizzotto – contact information can be found in Contact Us

Please visit Alto Global Processing

Follow us on Twitter

Like us on Facebook

Alto Global Processing Stance on The Big Business Behind Prepaid Debit Cards, Comments by Chairman Luca Bizzotto

Alto Global Processing Stance on The Big Business Behind Prepaid Debit Cards, Comments by Chairman Luca Bizzotto
By Morgan Korn | Daily Ticker – Fri, Jan 13, 2012 8:31 AM EST
Edited by Alto Global Processing

CEO and Chairman of Alto Global Processing, Luca Bizzotto, has put Prepaid and Payout debit cards at the forefront of the Alto Global Processing agenda as prepaid debit cards are the fastest growing form of electronic payment in the nation.

“We have been working on a debit card solution for well over one year now.  It is certainly not the easiest business to get into, but the trends are leaning toward extreme growth in the coming years, so we feel it is certainly worth the time and effort.” explained Luca Bizzotto

Celebrities such as Def Jam Co-Founder Russell Simmons, rapper Lil Wayne and now financial guru and CNBC host Suze Orman are hawking their cards to the masses, wanting a piece of the booming prepaid debit card market. Federal Reserve data shows prepaid card transactions grew more than 20 percent between 2006 and 2009.

These cards are geared toward individuals with little or no credit history or those who have difficulty obtaining traditional credit cards. A 2009 FDIC survey found that 9 million American households do not have a checking or savings account. According to the Mercator Advisory Group, consumers added approximately $71 billion onto prepaid cards last year, a dramatic increase from the $2.7 billion in 2005. The consulting group estimates that the prepaid debit card market will expand to $150 billion in 2012.

Prepaid cards offer perks to a certain segment of the population that it would not normally enjoy, such as the convenience of using plastic to purchase goods online and withdrawing money from an ATM. They do not contribute to one’s credit score and often come attached with exorbitant fees.

“Many companies out there are ‘nickel and diming’ their card holders with fees for every possible thing.  This is not our intention, and also part of the reason why it is taking us so long to roll out our product.  There is plenty of money to be made on transaction fees and interchange rates while still keeping the cardholders happy.  This is our goal.  We are looking for long term cardholders that are happy with our product.” says Luca Bizzotto.

FICO CEO Mark Greene tells Henry Blodget that prepaid cards are ” basically a substitute for a checking account” and a “a great tool for people who are new to personal finance” like college students. There are benefits to choosing such a card, Greene says, but that depends on how often the card is utilized.

“If you use them sparingly they can be a good deal,” he adds. “They do teach you how to manage your personal finances. They’re sort of a training wheel before you’re ready for a regular credit card.”

The fees connected to these cards vary from card purveyor but it’s not uncommon for users to rack up $50 to $100 in monthly charges, says Greene.

Orman’s Approved Card offers benefits that its competitors do not, such as identity protection and a credit monitoring service. In an interview with the New York Times, Orman responded to criticism about the industry and her decision to enter the fast-growing market:

“I couldn’t be more proud of this card if I tried,” she said in the article. “There is something radically wrong here. We are rewarding people for having credit and punishing people who pay in cash. I want to change that paradigm.”

Orman charges a one-time $3 flat fee for her card plus a monthly $3 charge. Simmons offers two prepaid credit plans, with the monthly option costing $9.95 per month (plus a one-time fee, convenience fee, ATM fee, currency conversion fee, etc). Wal-Mart, in partnership with Green Dot, commands similar fees for its card. Bowing to pressure by consumer advocacy groups, the Kardashian sisters pulled the plug on their prepaid debit card late last year.

Alto Global Processing has yet to roll out their fees, however they plan to structure fair fees to optimize the longevity of their card holders.

Please visit Alto Global Processing

Follow us on Twitter

Like us on Facebook

Please visit http://alto-global-processing-luca-bizzotto.com/

 

First Data Releases December 2011 SpendTrend® Mid-Month Flash

21 Dec 2011
Discounts Drove Solid Card Spending Growth in Early December
ATLANTA, Dec. 21, 2011 – First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend® Mid-Month Flash analysis for the first half of December 2011 compared to the same period in December 2010. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.
For the first two weeks of December 2011, overall dollar volume growth was steady compared to November levels. Card spending growth was stronger than this period last year. Retail dollar volume and transaction growth were both up from November. Among retail categories, clothing/accessory and general merchandise stores posted healthy dollar volume growth in early December and were up significantly from November.
As consumers continued their holiday shopping, they were more willing to utilize credit. Merchant discounting and improved consumer confidence drove consumers to put purchases on credit cards and propelled credit growth rates close to double-digit levels.
“Historically, there has been some slowing in spending between Black Friday and the last week before Christmas. This year we did not see that occur as consumers kept spending on discounted goods,” said Silvio Tavares, SVP and division manager of First Data Global Information and Analytics Solutions, which publishes SpendTrend.
For more information on First Data SpendTrend, visit www.firstdata.com/infoanalytics or call SpendTrend Customer Care at 800-430-0169. To participate in the SpendTrend conversation, please follow First Data at http://twitter.com/FirstData and join us at http://on.fb.me/spendtrend.
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.
First Data SpendTrend, a macro-economic indicator, is based on aggregate same-store sales activity in the First Data Point of Sale Network. First Data SpendTrend does not represent First Data’s financial performance.

Source: http://www.businesswire.com/news/home/20111221005199/en/Data-Releases-December-2011-SpendTrend%C2%AE-Mid-Month-Flash#.VNkWuFPF87M
Alto Global Processing, Chairman and CEO Luca Bizzotto adds “More people are using their credit power to make purchases even when they don’t have a need to, it is imperative for businesses to stay ahead of the curve and utilize their bargaining power with merchant processing companies to obtain the best possible rates.”

Please visit Alto Global Processing

Follow us on Twitter

Like us on Facebook

Citi Introduces Facebook App to Make Rewards Social

Citi announced a social rewards app for Facebook: the Citi ThankYou Point Sharing App.

“This new Facebook app makes it quick and easy for ThankYou Rewards members who are Facebook friends to pool their points together, and use their points’ collective value towards a shared goal or reward. ThankYou members on Facebook can combine their points to make a charitable donation, or choose from millions of rewards on http://www.thankyou.com, from travel to electronics.”

Source: http://www.businesswire.com/news/home/20120103005234/en/Citi-Introduces-Facebook-App-Rewards-Social

Please visit Alto Global Processing

Follow us on Twitter

Like us on Facebook