Thursday, July 14, 2011

First Data Helps Merchants Accept Payments Anywhere their Business Takes Them with VeriFone PAYware Mobile

Solution Turns Smartphones into Affordable and Secure Point-of-Sale Systems
ATLANTA, JULY 14, 2011 – First Data Corporation, a global leader in electronic commerce and payment processing, and VeriFone Systems, Inc. (NYSE: PAY), today announced that First Data will offer its merchant clients VeriFone’s PAYware Mobile solution through its alliance partners.

VeriFone’s PAYware Mobile is a complete payment solution that transforms a smartphone into a secure payment portal; it provides a secure mobile platform to accept electronic payments, along with real-time reporting capabilities that include extensive transaction search. Using VeriFone’s VeriShield Total Protect, PAYware Mobile is tightly integrated with First Data’s security infrastructure to help assure merchants and consumers they are paying over a secure mobile payment channel.
“With mobile devices becoming a main channel for how we transact and interact, we wanted to make it easier for merchants to maximize their mobile phone investment by turning it into a payment system,” said Bruce Dragt, SVP and division manager of Payment Acceptance, First Data. “This is another way merchants, financial institutions and consumers can use mobile devices to conduct commerce with First Data.”
To use PAYWare Mobile, merchants simply slip their smartphone into a special sleeve, so they can then swipe their customer’s card, capture a signature, electronically transmit the payment and email the customer a receipt. PAYware Mobile is ideal for merchants that operate remotely, or on the go, such as home services and in-home sales, events and markets, limo and taxi services, or restaurant delivery.
Sovereign Merchant Services, an alliance between First Data Merchant Services and Sovereign Bank, is one of the alliance partners offering the solution. A financial institution with principal markets in the northeastern United States, Sovereign Bank is a subsidiary of Banco Santander, S.A. “This solution is easy to implement, is compact and portable, and arms our clients with the ability to offer electronic payments to their customers from virtually anywhere without the need to carry additional point-of-sale equipment,” said Eduardo Tobon, Head of Santander's U.S. Cards and Payments Division. “We think PAYware Mobile is a simple and innovative solution that will save our merchants time and money.”
PAYware Mobile honors all forms of credit transactions processed as an online credit purchase and comes equipped with its own stylus for fast and secure signature captures. For more information on PAYware
About VeriFone Systems, Inc. (
VeriFone Systems, Inc. (“VeriFone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
About First DataAround 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.
ContactsPete Bartolik
Tel: 508-283-4112
Cara Crifasi
First Data
Tel: 303-967-6367

FIS Chosen by Amalgamated Bank of Chicago for Credit Card Processing, Loyalty and Fraud Prevention

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS™ (NYSE: FIS), the world’s largest provider of banking and payments technology, today announced that Amalgamated Bank of Chicago has signed a five-year agreement for several FIS card processing and fraud protection solutions. The bank selected FIS’ industry-leading card, merchant and fraud technologies in order to enhance its customer experience as well as its consumer and commercial card processing and fraud prevention capabilities.
“We are pleased that Amalgamated Bank of Chicago has chosen to expand their relationship with FIS and are confident that combining the management of their fraud prevention, loyalty and card processing with one provider will positively impact Amalgamated Bank’s ability to better serve their customers.”
Since 1922, Amalgamated Bank of Chicago has been serving the union laborers and working class members of the Chicago area and nationwide. Amalgamated Bank selected several FIS solutions to aid in the management of their card processing and fraud efforts, including Base2000®ScoreCard®FIS card personalization and fulfillment, FIS Secured™COMPROMISE MANAGER™Merchant Processing and Fraud Alert Management.
FIS’ credit card processing solutions supports both consumer and commercial accounts, including business, corporate, fleet and purchasing cards. ScoreCard is a card loyalty solution that has proven to increase card acquisition, activation and usage of both credit and debit card programs by members. ScoreCard’s Relationship Rewards improves a financial institution’s customer loyalty and retention. With FIS’ full suite of card and fraud solutions, Amalgamated Bank will enhance its ability to provide personalized card services and bring new financial solutions to market quickly.
FIS Fraud Alert Management is a comprehensive fraud management platform that features the ability to adapt intuitively as new card and merchant data models are added. A unique attribute of the solution is its ability to synthesize credit, debit and prepaid transactions on the same platform, significantly improving accuracy through the monitoring of multiple types of cards. FIS Secured is a fraud protection program that leverages proprietary analytical tools and enhanced data mining to identify emerging fraud patterns and potential points of compromise to stop fraud runs before they occur. With the addition of these solutions, Amalgamated Bank will be able to identify potential fraudulent trends and activity before it occurs while minimizing the overall impact to legitimate cardholder spending.
“FIS’ card and merchant processing, as well as fraud solutions will bring us to a new level of efficiency. The combination of increased system flexibility, robust functionality and improved cardholder experience were all key differentiators for us,” said Jonathan Telzrow, senior vice president, Amalgamated Bank of Chicago.
“FIS has developed a platform at the forefront of credit card processing technology integrated with fraud and loyalty programs that deliver the flexibility and adaptability banks need to remain highly competitive,” said Frank D’Angelo, executive vice president, FIS Payment Solutions Group. “We are pleased that Amalgamated Bank of Chicago has chosen to expand their relationship with FIS and are confident that combining the management of their fraud prevention, loyalty and card processing with one provider will positively impact Amalgamated Bank’s ability to better serve their customers.”
FIS (NYSE: FIS) is the world’s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 32,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is ranked 426 on the Fortune 500, is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit

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Mobile Hacking: How Safe is Your Smartphone (Hint: Phoney Security)

 Mobile Hacking: How Safe Is Your Smartphone? 
 (from Mashable at 14-7-2011) 
 Experts say that its still fairly easy to hack into your phone, but unless youre a celebrity, youre unlikely to be a target. Dont get too comfortable, though. The era of safe mobile computing may be coming to an end as smartphones and other mobile devices become more popular than PCs.... read more»

Mitek Systems Shares Trade on NASDAQ Capital Market Today

Editor's Note:  Congrats to Drew Hyatt
SAN DIEGOJuly 14, 2011 /PRNewswire/ -- Mitek Systems, Inc. (NASDAQ: MITK;, today announced that its shares have begun trading on the NASDAQ Capital Market. The company will be traded under the ticker symbol "MITK."  
Mitek is the leader in mobile-imaging applications using smartphone cameras for check deposits, bill payments and ACH enrollments.  The company's patented flagship product, Mobile Deposit®, allows users to deposit checks anytime, anywhere simply by snapping photos of checks with their camera-equipped smartphones and is being deployed by the nation's leading banks. The company's recently launched Mobile Photo Bill Pay™ allows a consumer to pay any bill just as conveniently by photographing it with a smartphone camera.
About Mitek Systems
For more than 20 years, Mitek Systems (NASDAQ: MITK) has provided financial institutions with advanced imaging and analytics software to authenticate and extract data from imaged checks and other financial documents.  Mitek's patented technology has created the Gold Standard for Mobile Check Deposit and is currently used by leading financial organizations in the United States to process more than 10 billion items per year.  
Today, Mitek is applying its patented technology and extensive expertise in image correction, optical character recognition and intelligent data extraction to mobile devices.  Using Mitek Mobile Apps, smartphone users can now deposit checks, pay bills, save receipts and fax documents while on the road or sitting at a desk -- eliminating trips to the bank, Post Office and file cabinet.  Simply take a picture of the document and Mitek does the rest -- correcting image distortion, extracting relevant data, routing images to their desired location, and processing transactions through users' financial institutions.  
For more information about Mitek Systems, contact the company at 858-503-7810 or visit

Acxiom Study Unveils the Key to Influence $700B Financial Services Market Segment

Personal engagement missing yet necessary to engage consumers most likely to switch
http://www.acxiom.comLITTLE ROCK, Ark.--(BUSINESS WIRE)--In a purchasing environment where consumer loyalty continues to be elusive, how do financial services marketers capture those consumers who may be willing to make a switch in their primary payment method? A new Consumer Dynamics study from Acxiom® Corporation (Nasdaq: ACXM) creates a roadmap for marketers to reach consumers whose payment choices may be affected by complex economic, regulatory and technological factors.
“Cashing in on Changing Payment Preferences: How Cards and Payments Marketers Can Become Top of Wallet with Potential Switchers”
This first-of-its-kind, comprehensive Acxiom study, Cashing in on Changing Payment Preferences: How Cards and Payments Marketers Can Become Top of Wallet with Potential Switchers,” provides marketers with concrete, actionable recommendations on how to attract and retain customers through personalized marketing, leading to better performance and less wasted effort. Using data and insight into nearly 3,000 consumers’ primary payment choices – credit cards, debit cards, paper checks or cash – the report identifies their willingness to switch payment methods and why; and how demographics, life stage and other personal circumstances affect their decisions.
“The choice of how to pay for a purchase is personal, and is based on a combination of rational and sometimes irrational decision-making. But most financial product marketing fails to connect to individual needs and interests,” said John Albrecht, managing director for Acxiom’s Banking and Payment Services group. “The study’s findings will help these marketers influence target audiences by demonstrating how multidimensional insights across shopping, purchase and attitudinal behaviors, can lead to greater success.”
The survey, combined with Acxiom’s Personicx® demographic analysis, produced a wealth of information about potential payments switchers, including:
  • 25% of respondents, who represent a potential of $700 billion in annual transactions, would consider switching payment method if benefits such as “help control spending” or “ease of record keeping” are highlighted in the messaging
  • The age of your target is important, as most potential switchers are in the 18-44 group
  • Travel purchasers represent one of the biggest opportunities with 26% of switchers whose primary payment method is a debit card saying they use a credit card for travel and 19% use a credit card when making a big-ticket electronics purchase
  • Understanding specific influences, such as rewards or lower fees, allows marketers to create a more relevant and personalized offer tailored to the potential switcher and ideally suited to be made through addressable digital channels
As a marketer, it is crucial to identify and aim for potential switchers at the moments when they might be inclined to use something other than their primary payment method. The study also contains information on what messages have better chances to influence switchers, how personalized marketing can attract and retain customers and what advertising channels are most efficient to reach consumers in various life stages and economic segments.
For a copy of Acxiom’s latest study, please click here or call 1-888-3ACXIOM.
About Acxiom
Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific, the Middle East and South America. For more information about Acxiom, visit
Acxiom and Personicx are registered trademarks of Acxiom Corporation.

Zeus Banking Trojan Hits Android Phones

Zeus crimeware creators adapt Zitmo malware, disguised as a banking activation application, to steal financial details from Android users.

10 Massive Security Breaches
(click image for larger view)
Slideshow: 10 Massive Security Breaches
The Trojan spyware application known as Zitmo, which is designed to steal people's financial data, has now been altered to target devices running the Android mobile operating system. "The malware poses as a banking activation application," said Axelle Apvrille, a senior antivirus analyst and researcher for Fortinet, in a blog post. "In the background, it listens to all incoming SMS messages and forwards them to a remote web server." read more

Content Marketing Infographic Shows 2Blog4 Value

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Dynamics Inc. Reveals Angel Investors

Leading CEOs among notable investors in next-generation payments technology company
PITTSBURGH--(BUSINESS WIRE)--Dynamics Inc., an innovator in next-generation payment cards and systems, today announced a partial list of its angel investors who participated in its Series A and Series B investment rounds. Dynamics launched its award-winning Card 2.0® technology last fall and its products are currently in consumer trials with several top multi-national payment card issuers.
“The caliber of our angel investors is a testament to the strength of the Dynamics opportunity and the informed belief in our ability to execute”
Many of Dynamics’ angel investors are founders and leaders of disruptive and dominant companies relevant to Dynamics’ business. In addition to financial support, Dynamics’ angel investors provide technical, strategic, legal, and business advice. The CEO-heavy investment group represents informed investments in Dynamics by skilled business leaders.
The angel group includes:
Joseph “Rod” Canion – Founder and CEO, Compaq Computer (1982-1991). In addition to holding the record for first-year sales by any company, Compaq was the fastest company in history to reach both the Fortune 500 and $1 billion in revenues.
Michael Holthouse – Michael worked in sales at Apollo Computer before founding Paranet, an information technologies company that Michael sold to Sprint in 1997 for $425MM. Michael is also the founder and Chairman of Prepared 4 Life, a non-profit internationally praised for the blockbuster entrepreneurial educational initiative Lemonade Day.
Jack M. Gill – Founder and Managing Member, Vanguard Ventures. Jack was the lead investor in companies such as Aldus, Digital Microwave, Pyramid Technology, EndoSonics, Mycogen, EndoTherapeutics, Macromedia, Network Appliance, LightSpeed (CISCO), Digital Island, Zip Realty, and Hansen Medical. Jack is also a member of the Harvard Medical School faculty and founder of Autolab, which was acquired by Spectra Physics.
Leo Linbeck III – President & CEO, Aquinas Companies, LLC. Leo grew Aquinas’ annual revenues from $40MM to $500MM. Leo serves as an adjunct professor in the Rice and Stanford MBA programs.
Thomas R. Mullen – President and CEO, Mercy Health Services (MHS), which most recently added a $400MM state of the art hospital building in Baltimore, MD. Under Tom’s leadership, MHS revenues have grown from $180MM to more than $523MM. Tom was recently named to the nation’s list of Top 100 Performance Leaders by Solucient.
Joseph F. Pinkerton – Founder & CEO, Clean Energy Labs. Joe was also the founder, CEO, & Chairman of Active Power (NASDAQ: ACPW), where Joe raised $45MM in venture capital before completing a $140MM IPO. Joe is a recipient of the Ernst & Young Entrepreneur of the Year award for central Texas.
Arthur A. Ciocca – Chairman, The Wine Group, Inc. – the third largest wine company in the United States by sales and volume.
Sean McDonald – President and CEO, Precision Therapeutics Inc. Sean also founded Automated Healthcare, which was sold to the McKesson Corporation in 1996 for $65MM.
Nancy Chang – Founder and CEO, Tanox, which was acquired by Genentech in 2007 for $919MM.
Terry M. Giles – Founder of Landmark Education Enterprises Incorporated, Medical Design Technology, Great Escapes, and Giles & O’Malley.
Kristopher Brown – Partner, Dechert LLP. Kristopher’s practice centers on private equity and venture capital transactions. Kris also advises on corporate and transactional matters for numerous financial and corporate strategic investors, as well as emerging growth companies.
Richard Inz – Assistant General Counsel, Purdue Pharma. Richard was previously a partner at the Fish & Neave Intellectual Property Group of Ropes & Gray LLP.
Alan Gordon – Corporate Counsel, Profectus BioSciences, Inc.
David N. Lambeth – David has been a Professor in the Department of Electrical and Computer Engineering and in the Department of Materials Science and Engineering at Carnegie Mellon University since 1989. David earned his Ph.D. degree in Physics from MIT and worked with Eastman Kodak Laboratories and Control Data Corporation from 1973-1989. David served ten years on the Board of Directors of Intevac.
“I first met Jeff Mullen in 2009 when he was presenting Dynamics to the International Rice Business Plan Competition, which I helped judge,” said Rod Canion, founder of Compaq. “I believed then and there that Dynamics had the potential to revolutionize the payments space. After winning the $100,000 main prize, and personally investing in Dynamics, I have worked closely with Jeff and his team. Over the last two years, I have seen a payments and consumer technology powerhouse begin to mature in Dynamics – equipped with the right team, expertise, experience, leadership, and vision it needs to become an industry leader.”
“The caliber of our angel investors is a testament to the strength of the Dynamics opportunity and the informed belief in our ability to execute,” said Jeff Mullen, CEO of Dynamics. “Dynamics has grown from the mentorship of our angel investors – many of whom are founders and CEOs of successful technology companies. I look forward to continued advice and guidance from our angel group as Dynamics continues to advance the largest and oldest industry in the world – the financial industry.”
About Dynamics Inc.
Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its President and CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast-cycle innovation to top card issuers, the company's first commercial application is the world's first fully card-programmable magnetic stripe for use in next-generation payment cards. The company has won many of the world's most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company won DEMOgod and the $1M People's Choice Award at DEMO Fall 2010 and Best of Show at FinovateFall 2010. In January, the company won Best in Show at the 2011 International CES for Personal Electronics. Dynamics has closed a $5.7M Series A round led by Adams Capital Management and a $35M Series B round led by Bain Capital Ventures. Dynamics is headquartered in Pittsburgh, Pa. More information on the company, its technology and applications can be found at

Discover® Card Website Finishes First for Best Overall Experience for Prospective Customers

Top Marks Across Primary Categories in Independent Keynote Research Study Puts Discover Website Ahead of All Major Competitors for New-user Experience
RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover today announced it has been awarded first place in Best Overall Customer Experience for prospects in the 2011 Keynote Competitive Research Industry Study of U.S. credit card marketing websites.“Our customers tell us their online experience is very important, so we focus on keeping digital interaction with us easy and satisfying”
As part of capturing the top overall customer experience ranking, Discover ranked first in the categories of credit card satisfaction, home page satisfaction, ease of applying online, design and organization, acquisition impact, online adoption and customer satisfaction.
"Our customers tell us their online experience is very important, so we focus on keeping digital interaction with us easy and satisfying,” said Mike Boush, vice president of e-business for Discover. “As Discover continues to grow in the direct banking industry, we will continue to pay close attention to the online experience and extend our leadership."
Keynote Competitive Research, the industry analysis group of Keynote Systems, observed and interviewed 1,800 prospective credit card customers as they interacted with the sites of nine leading credit card originators. Two hundred online users were sent to each issuer’s website, where they viewed the homepage, found a credit card of interest, started an application for a credit card, learned about managing a card online with the issuer, and conducted a customer support task.
“Based on our analysts’ observations and interviews with our panel of actual users, our study of U.S. credit card marketing sites revealed that these sites play an important role for potential customers in fostering a sense of trust in the card issuer and ultimately in improving overall brand perception,” said Christopher Musto, general manager of the Keynote Competitive Research group at Keynote. “With a site that excels in promoting positive outcomes for the user, Discover won for Overall Customer Experience.”
Discover finished ahead of American Express, Bank of America, Capital One, Chase, Citicards, HSBC, PNC and US Bank for the Overall Customer Experience honor.
Keynote Competitive Research produces leading industry research and regularly evaluates the current state of online customer experience, technical quality (responsiveness/reliability) and implementation of best practices on leading Web sites across a wide variety of vertical markets. For more information on Keynote Competitive Research and this year’s study, please visit:
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit


Jon Drummond, 224-405-1888

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PrepaYd Wireless Approved by FCC for Its International Telecommunications Certificate

July 14, 2011 09:20 AM Eastern Daylight Time 

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--PrepaYd Wireless, Inc. a wholly owned subsidiary of PrepaYd Inc. (PPDC:PK) announced today that on June 30, 2011 PrepaYd Wireless, Inc. received its International Telecommunications Certificate from the Federal Communications Commission.
“The International 214 License allows PrepaYd Wireless to offer subscribers the ability to make international calls and texting through our network without the subscriber needing to purchase additional calling cards”
“The International 214 License allows PrepaYd Wireless to offer subscribers the ability to make international calls and texting through our network without the subscriber needing to purchase additional calling cards,” stated Josh Berman, Vice President of PrepaYd Wireless.
All telecommunications providers seeking to provide common carrier communications services between the United States and a foreign point must request authorization from the Federal Communications Commission.
Prior to receiving The International Telecommunications Certificate PrepaYd Wireless on June 21, 2011 was registered with the Universal Service Administration Company (USAC) as an interstate telecommunications services provider.
About PrepaYd Wireless, Inc.
PrepaYd Wireless, Inc. is a Mobile Virtual Network Operator (MVNO) that intends to begin offering Mobile Phones and Wireless Services in September or October 2011. Prepaid Wireless Services is an alternative to the traditional Postpaid Wireless Service Plans provided by major carriers. Prepaid Wireless Services include voice, data, and SMS services to consumers on a non-contract basis. PrepaYd Wireless intends to offer phones that will be enabled for using Mobile Financial Service applications for mobile banking and mobile payments. Recent developments of mobile wallets let consumers use Mobile Devices to make contactless NFC Payments at thousands of participating locations.
For more information about PrepaYd Wireless, Inc. visit
About PrepaYd, Inc.
PrepaYd, Inc. is a provider of financial services in the prepaid debit card industry. The company, through its wholly owned subsidiaries, offers prepaid debit cards to America's estimated 60 million underbanked citizens. In addition to the underbanked consumer demographic, small and mid-size businesses have found a much needed product with the company's Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employees' expenses other than through traditional credit cards or cash reimbursements.
For more information about PrepaYd, Inc. visit
FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties and the company assumes no obligation to update any of the forward-looking statements in this release.


PrepaYd Wireless, Inc.
Josh Berman, Vice President
PrepaYd, Inc.
Nona Vahdat, Investor Relations
949-553-9044 ext. 222

JPMorgan Says Net Income was $5.4 Billion in Q2 11

July 14, 2011 06:59 AM Eastern Daylight Time 

JPMorgan Chase Reports Second-Quarter 2011 Net Income of $5.4 Billion, or $1.27 Per Share

1 of $27.4 Billion, up 7% over Prior Year, up 6% over Prior Quarter

  • Investment Bank reported strong earnings and solid client flows; #1 ranking for Global Investment Banking Fees year-to-date
  • Commercial Banking reported record revenue and continued loan growth
  • Solid performance across most other businesses
  • Fortress balance sheet maintained: Basel I Tier 1 Commonof $121 billion, ratio of 10.1%; estimated Basel III Tier 1 Common1 ratio of 7.6%; credit reserves at $29.1 billion, coverage ratio at 3.83% of total loans1
  • Second-quarter results included the following significant items:
  • $1.0 billion pretax ($0.15 per share after-tax) benefit from reduced loan loss reserves in Card Services
  • $837 million pretax ($0.12 per share after-tax) benefit from securities gains in Corporate
  • $1.0 billion pretax ($0.15 per share after-tax) expense for estimated costs of foreclosure-related matters in Retail Financial Services
  • $1.3 billion pretax ($0.19 per share after-tax) of additional litigation reserves, predominantly for mortgage-related matters, in Corporate
  • Over $990 billion in new and renewed credit provided to and capital raised for consumers, corporations, small businesses, municipalities and not-for-profits year-to-date; #1 Small Business Administration lender in the U.S.
  • Hired more than 10,000 employees year-to-date
1 Presented on a managed basis. For notes on managed basis and other non-GAAP measures, see page 13.
NEW YORK--(BUSINESS WIRE)--JPMorgan Chase & Co. (NYSE: JPM) today reported second-quarter 2011 net income of $5.4 billion, compared with net income of $4.8 billion in the second quarter of 2010. Earnings per share were $1.27, compared with $1.09 in the second quarter of 2010.
Jamie Dimon, Chairman and Chief Executive Officer, commented: “Our second-quarter earnings reflected solid performance across most of our businesses. The Investment Bank delivered strong earnings across most products and maintained its #1 ranking in Global Investment Banking Fees. Commercial Banking reported record revenue and continued loan growth for the quarter. Retail Financial Services demonstrated good underlying performance in Retail Banking but continued to experience high losses for mortgage-related issues.”
Dimon continued: “We are pleased to report that our results for the quarter reflected continued improvement in credit trends across our consumer and wholesale portfolios. With respect to our credit card portfolio, delinquencies and net charge-offs improved, and we reduced loan loss reserves by $1.0 billion as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter as we approach a more normalized credit environment. Within our wholesale credit portfolio, credit trends appear to have normalized."
“With respect to our mortgage portfolio, delinquency and net charge-off trends improved modestly compared with the prior quarter; however, net charge-offs remained high, and we expect credit losses to remain elevated. We have been working hard to fix our problems and address past mistakes. We have already incurred significant costs, charged-off substantial amounts and established significant reserves for mortgage-related issues. Unfortunately, it will take some time to resolve these issues and it is possible we will incur additional costs along the way. However, in time, these costs will normalize as well.”
Commenting on the Firm’s balance sheet, Dimon said: “We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%. Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically. We estimate that our Basel III Tier 1 Common ratio was approximately 7.6% at the end of the second quarter. This level is well in excess of what is required today under existing rules and is greater than the level we expect will be required under the proposed rules for up to five years, including the additional buffer for global systemically important financial institutions. Our strong capital position and significant earnings power will allow us to actively grow our business and rapidly meet any proposed Basel III requirements as they are phased in. We intend to keep our capital ratios approximately where they are as we do not see a need to manage to higher ratios ahead of time.”
Dimon also remarked: “Through the recession, we have helped hospitals, school systems, banks, state governments, countries and central banks, and we will continue to do so. During the first six months of 2011, JPMorgan Chase provided credit to and raised capital of over $990 billion for our clients. We originated mortgages to more than 360,000 people; we provided credit cards to approximately 4.6 million people; we lent or increased credit to more than 16,800 small businesses; we lent to more than 800 not-for-profit and government entities, including states, municipalities, hospitals and universities; we extended or increased loan limits to approximately 3,000 middle-market companies; and we lent to or raised capital for more than 5,000 other corporations. We are the #1 Small Business Administration lender in the U.S., with more loans made than any other lender. In 2009 and 2010, we lent more than $7 billion and $10 billion, respectively, to small businesses, and we have committed to lend at least $12 billion more this year. We remain committed to helping homeowners and preventing foreclosures. Since the beginning of 2009, we have offered 1,177,000 trial modifications to struggling homeowners.”
Dimon concluded: “Looking forward, we continue to see substantial opportunities for the company. We are building our international presence, with more bankers, branches and products to serve our multinational clients where they want to be served. In the U.S., we are also investing in new branches and adding bankers and salespeople, expanding the reach of our consumer and wholesale businesses.”
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VeriFone Joins Effort to Turn London’s Black Taxis "Green"

Works with The London Taxi Company and Black Horse Taxi Finance to Offer Incentives for Drivers to Comply with City Push for Reduced Emission Vehicles

SAN JOSE, Calif.--(BUSINESS WIRE)--VeriFone Systems, Inc. (NYSE: PAY) and Black Horse Taxi Finance today announced they are offering drivers of London’s famed, but high-emission, black taxis with a £3,000 financial incentive to trade in their old models for newer vehicles that comply with age limits announced as part of the mayor of London’s air quality strategy.
“VeriFone has been working closely with The London Taxi Company to make advanced electronic payments systems freely available to London’s licensed taxi trade”
In December 2010, the mayor of London launched an air quality strategy that outlined a range of measures to improve air quality and reduce transport related emissions, including a 15-year age limit for licensed London taxis. VeriFone and Black Horse Taxi Finance are offering the incentive to reduce the financial impact for drivers who trade up to newer, less polluting vehicles through the Islington retail outlet of The London Taxi Company, the UK’s top retailer of London’s iconic black taxi and an agent and installer of VeriFone’s card payment solution.
“VeriFone has been working closely with The London Taxi Company to make advanced electronic payments systems freely available to London’s licensed taxi trade,” said Mark Roberts, vice president and general manager, VeriFone Taxi and Media Solutions. “With this new initiative, we want to encourage affected drivers to modernise their vehicles. By doing so we can help London’s taxis evolve into a greener world class fleet.”
Mark Brown, general manager, The London Taxi Company (London), said, “VeriFone and Black Horse Taxi Finance have come up with a fantastic offer to help owners trade up. We’re keen to get these older vehicles off the road to help make London cleaner, as well as provide passengers with a more enjoyable taxi experience.”
As part of this offer, owners will receive a VeriFone-branded livery on their new vehicle and a pre-installed VeriFone card payment system. The VeriFone system accepts all types of card payments, including credit, debit, Chip & PIN, magnetic stripe and contactless. Drivers must also successfully apply for financing via Black Horse Taxi Finance.
John Mason, director, London Taxi and Private Hire, with Transport for London (TfL), said, “The age limits announced by the Mayor in December last year are absolutely vital to improve air quality in London. Since this announcement we have been in constant dialogue with the taxi manufacturers about what they can do to ease the burden on those cabbies impacted by the limits and we are very pleased to see VeriFone, Black Horse Taxi Finance and The London Taxi Company working together to come up with this deal.”
On a first come, first serviced basis, drivers will be able to secure a £3,000 finance allowance on the first 200 sales of new Euro 4 - TX4 Style or Elegance London Taxis, when a Fairway, TX1 or Metrocab is offered in part exchange that is “S-reg” or older. The older models will be scrapped.
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