Payment Card Competitor Tracker: July 2009

Overview 1
Catalyst 1
Summary 1
Methodology 1
Table of Contents 2
Introduction 3
The Payment Card Competitor Tracker provides both one month and 12 month views of developments 3
Each month, Datamonitor tracks the most relevant announcements from 64 competitors 3
Datamonitor's Cards and Payments Team provides analysis of the key developments at both the one month and 12 month level 4
A fully searchable database of developments from January 2007 onwards is also delivered alongside the report 4
Key Developments in July 5
The possibility of the new scheme to rival Visa and MasterCard in Europe and Visa's investment in Monitise were the key stories of the month 5
Deutsche Bank announced plans to establish a new European payment card scheme to rival MasterCard and Visa 5
Visa took a 14.4% stake in mobile banking provider Monitise, giving it a major boost for mobile payments 6
GE Money and Bank of Ayudhya reached an agreement on the sale of GE Money's business in Thailand 7
There were 36 developments in July, the lowest number of stories this year 8
There were 36 developments in the July competitor tracker, compared to the 12-month average of 56 8
Product development has continued to drive activity in July, with M&A activity dropping slightly since June 8
North America and Western Europe were the largest regions for competitor activity in July, contrasting with the 12-month trend 9
Issuers featured strongly in July, but only slightly ahead of developments associated with schemes or associations 10
Developments in the commercial sector and new payment technology were the biggest areas of interest in July 11
Partnerships accounted for the bulk of activity in M&A, partnership and organic growth 13
Product, Services and Innovation 15
American Express 15
Australia: ANZ to issue American-Express-branded credit cards 15
US: American Express OPEN launches new online resource 15
Bank of Montreal 15
Canada: Bank of Montreal eliminates annual credit card fees and doubles AIR MILES reward miles 15
Barclaycard 16
UK: Barclays re-launches its online banking website 16
Citigroup 16
India: Citi launches NFC mobile payments in India 16
Korea: Citi and Galleria department store launch credit card 17
UAE: Citibank and Emirates launch Skywards campaign on the Emirates-Citibank co-branded cards 17
UK: Egg launches a new credit card 18
US: Citi celebrates ThankYou Network's fifth birthday by rewarding its customers 19
Deutsche Bank 20
Europe: Deutsche Bank annouced plans to establish a new European payment card scheme 20
GE Money 20
US: GE Money and Giant Bicycle provide consumer finance program for biking enthusiasts 20
JPMorgan Chase 20
US: JPMorgan Chase launches Total Settlement, an electronic payment solution 20
Mashreqbank 22
UAE: Mashreq launches Mashreq Business Platinum debit card in association with Visa International 22
MasterCard 22
UK: MasterCard launches new website in association with Lonely Planet 22
US: Sports Authority to accept MasterCard PayPass contactless payments 22
US: MasterCard launches the Priceless Picks iPhone application 23
US Bancorp 23
US: US Bancorp and TACA Airlines to offer DISTANCIA Visa signature credit cards 23
Visa 24
Switzerland: Cornèr Bank and Aduno introduce Visa payWave 24
UK: Visa offers mobile alerts to its customers 24
M&A, Partnerships and Organic Growth 25
Bank of America 25
US: Bank of America and First Data to form a payment solutions company 25
Citigroup 25
Japan: Citi signs definitive agreement to sell NikkoCiti Trust and Banking Corporation 25
The Philippines: Jollibee signs up with Citibank for Citi Mobile Payments 25
Commerzbank 26
Switzerland: Commerzbank disposes of Dresdner Bank 26
Discover 26
US: Pulse signs long-term agreement with US Bank 26
DnB NOR 26
Norway: DnB NOR establishes new businesses 26
First Data 26
India: First Data and Yes Bank sign memorandum of understanding 26
Poland: First Data signs merchant services agreement with Real 27
Singapore: Merchant Solutions signs acquiring agreement with JCB International 27
Garanti Bank 27
Turkey: Garanti Bank and Western Union collaborate to provide payment transactions 27
GE Money 28
Thailand: GE Capital and Bank of Ayudhya reach an in-principle agreement 28
JPMorgan Chase 28
Europe: JPMorgan Chase extends payment capabilities 28
US: JPMorgan Chase selected by Western States EBT Alliance for distribution of benefit payments 29
MasterCard 29
Belgium: MasterCard Europe and MobileXpense collaborate to deliver expense management solution 29
US: MasterCard extends multi-year contract with OptumHealth 29
TSYS 30
US: TSYS partners Consumer Health Technologies to provide payment solutions 30
Visa 30
US: Visa partners with Monitise to expand its mobile payments and related services 30
US: Visa International sells shares of VisaNet do Brasil 31
Appendix 32
Methodology 32
Further reading 32
Ask the analyst 33
Datamonitor consulting 33
Disclaimer 33
List of Tables
Table 1: The 64 companies and subsidiaries covered by Datamonitor's Payment Card Competitor Tracker 3
Table 2: Current relevant publications, 2008-09 32
Table 3: Future relevant publications, 2009 33
List of Figures
Figure 1: In July, competitor developments saw a decrease on the previous month, with 36 developments and the 12-month average of 56 8
Figure 2: July saw a significant drop in the number of developments relating to product, services and innovation 9
Figure 3: North America accounted for the most stories in July, while Western Europe was the second busiest region for competitor activity 10
Figure 4: Issuers featured strongest in July with 20 developments in total; this is below the 12-month average of 31 11
Figure 5: Commercial sectors and mobile technology were the key areas for developments in product, services and innovation in July 12
Figure 6: Interestingly, partnerships accounted for the majority of developments in July, with 11 announcements it total 14