A Thing
The Green SheetGreen Sheet

The Green Sheet Online Edition

May 23, 2011 • Issue 11:05:02

Research Rundown

Credit card use grows with economy

The Online Credit Card Report 2010 released in April 2011 found 20 percent of U.S. cardholders shopped for new cards; but among consumers who told researchers the economy is improving, the number of people shopping for new cards rose to 34 percent.

ComScore said the 2010 study shows rising consumer interest in perks and incentives, such as low-interest rates and rewards programs, as well as a consumer shift to websites and mobile applications when shopping for new cards.

Sarah Lenart, comScore's Vice President of Financial Services, commented, "As we see consumer economic sentiment improve, we're also seeing a corresponding increase in retail and e-commerce spending along with increased card shopping, especially among those in the subprime sector. With shopping and card applications expected to continue to increase in 2011, consumers are likely to place even greater emphasis on competitive card features and offerings as well as enticing rewards programs."

The report analyzed responses from a research panel of 1 million consumers and a survey of 2,000 Internet users in the United States. It found the most popular credit card reward offerings are cash back (57 percent), merchant rewards (13 percent) and airline miles (10 percent).

Lenart said, "As people increasingly rely on digital channels to manage their credit card accounts, it's important to understand what degree consumers are using them and how these access methods create value for issuers' key customer segments."

For More Information go to:
www.comscore.com_ 2010 online credit report.

Verification Information consumers will allow for card transactions

"We believe that PCI DSS is one of the most effective data security regulations today and can significantly help companies improve their data security posture. Most companies who make an effort to comply with the standards are likely to suffer fewer breaches than those who don't, period."

- Larry Ponemon, Chairman and co-founder of the Ponemon Institute
Source:2011 PCI DSS Compliance Trends Study by Imperva and the Ponemon Institute

Mobile payments biggest fraud risk

A survey conducted by UKFRAUD.co.uk and fraudconference.co.uk shows 60 percent of fraud specialists surveyed in the U.K. believe mobile payments options are the greatest potential card fraud risk. The specialists believe card-not-present transactions present the greatest fraud risk.

First Data SpendTrend shows growth

Rising gas prices and a late Easter contributed to continuing growth in consumer spending in April 2011, First Data Corp. found in its SpendTrend analysis. The survey reported transaction growth remained steady at 6.7 percent in March and April. Dollar volume grew 6.7 percent (excluding gas purchases).

Fraud acute for Level 4 merchants

According to Payment Card Trends and Risks for Small Merchants, Trustware's supplement to its 2011 Global Security Report, nearly 90 percent of data breaches occur in small merchant (Level 4) businesses. The Level 4 merchants have been slow to adopt security procedures for processing, the report concluded. The survey also found 75 percent of data theft occurring in food and beverage and retail sales businesses.

Retailer, banker relationship changing

In 2010, 80 percent of retailers switched banks to lower costs, the new 2011 AFP Retail Industry Survey found. Retailers started with new banks to obtain better pricing (53 percent), diversify risk (29 percent) or to secure access to credit (24 percent), said the survey.

Mobile more popular than PC for shopping

A report released by the independent mobile ad network InMobi concludes U.S. consumers prefer shopping from mobile phones to shopping from PCs.

InMobi said of the 310 million U.S. consumers, 74 million - nearly one in four - shop on mobile phones. The research, based on a survey of nearly 2,500 mobile phone users, found more U.S. shoppers, almost 49 percent, still prefer shopping in a store.

However, 35 percent of the consumers surveyed said they are now ready to shop with mobile phones. Only 16 percent of those surveyed said they preferred shopping on PCs to shopping in-store or shopping on mobile phones. This compares with 16 million mobile phone users in the U.K. who choose to shop using mobile phones.

The report notes mobile phone shopping doubled between 2010 and 2011, from $1.2 billion to $2.4 billion in the United States. The company predicts mobile shopping will soar to $9 billion by next year.

"The key finding is that mobile is going to cannibalize PC consumption," said InMobi Vice President James Lamberti. "This will have a big impact on marketers as they begin to leverage mobile in a way they aren't doing today. Marketers need to understand this and look for ways to influence this shopping behavior."

Lamberti added, "It's an exciting time for the consumer, retailer and manufacturer as mobile shopping solutions will become more intelligent and compelling to use. [It is] clear consumer acceptance has opened huge opportunities in the world of mobile advertising."

For More Information go to:
or visit the InMobi blog at www.inmobi.com/inmobiblog

Year-to-year transaction volume and dollar value growth

"As all these technologies become more prevalent, so too will the attacks against them from those trying to gain access to private information and unprotected funds. As such, service providers have a tremendous opportunity to become the de facto providers of network services and security for this industry."

-- Denise Culver, Research Analyst with Heavy Reading IP Services Insider and author of Service Providers Hit Pay Dirt in Financial Services Sector
Source: Heavy Reading IP Services Insider

Economy shows signs of life

Semper International LLC's 2nd Quarter Industry Insight Survey 2011 shows positive economic indicators after years of recession. The study authors conclude when the economy starts expanding, business models need to change to reflect the changes in the market.

Few consumers believe PII well protected

Consumers Reaction to Online Fraud, a new survey released by ThreatMetrix and the Ponemon Institute, said 85 percent of consumers surveyed for the report said they were worried about personally identifiable information (PII) being stolen from computer records and are dissatisfied with the PII protection levels provided by online businesses

Restaurant credit card sales increase

Brick-and-mortar retailers and service providers saw profits continue to decline in credit and debit card sales while restaurant credit and debit sales are increasing, according to a Capital Access Network Inc. report. CAN's Data Services Division, which conducted the report, said it is the 14th consecutive quarter of year-to-year credit and signature debit card sales declines.

E-commerce platform solutions analyzed

A new Javelin Strategy and Research report analyzes and compares the e-commerce platform solutions offered by 11 different companies. The report identifies the key features of each firm's platform and looks at each company's pricing, market positioning and differentiation.

end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

Prev Next
A Thing