Payments industry specialist research house Eurasia Insights’ latest findings are to be published in The Social Media in Payments Report 2012 in June. It incorporates results from a survey of over 200 payment market participants across the world, with insights and case studies from social media experts from the banking, payment software/system and consulting communities.

Already, nearly one in five respondents to the survey reported increased sales as a result of their social media activities.

Simon Hardie of Eurasia Insights commented: “Our respondents were divided between those who wholeheartedly have thrown themselves and their businesses into the world of social media and those who are maintaining a ‘wait and see’ approach with fears of brand damage. While those fears are real – and we regularly see examples of brands getting it wrong – there is a broad acceptance even among this group that social media is here to stay and that it will become an even more important part of the brand communication and marketing mix than today. The emphasis is on learning to manage risk and use social media to enhance rather than damage brand reputations.”

In the payments industry it has been the payment networks which have so far been among the most active and successful with social media. “In particular, American Express is demonstrating commitment to these new channels. In the US the company is dedicated to the concept of ‘social currency’ and has launched a range of promotions and products, including a networking forum to bring together small business owners and a range of online marketing tools to help small businesses make the most of their budgets,” added Simon. “But our survey shows that vendors and banks are also looking to increase their social media activities – once they get over the barriers that they perceive are preventing them from doing so, including lack of experience, resourcing and brand risk.”

The shift toward social media for commercial communication is highlighted by several strong examples of how the payment industry is pioneering use of digital channels to engage customers, build awareness and ultimately drive sales. The report also features case studies of how organisations are using social customer relationship management (social CRM) to  convert fans to customers who keep coming back to make purchases.

The Social Media in Payments Report 2012 will be launched at a special briefing involving leading social media experts from the payments industry at The Andaz Hotel, Liverpool Street, London EC1 on 26^th June. More details of the event are available at http://socialmedia.eurasiainsights.com.

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Notes to Editors

A White Paper summarising the results contained in the Social Media in Payments Report 2012 is available on request.

An impressive team of international social media pioneers is confirmed for the first dedicated Social Media in Payments Briefing that takes place in London on 26 June 2012.  Included in the line-up are reputation management and crisis communications expert John Hartley from HSBC, Tracy Glynn, award-winning blogger and head of marketing at Realex Payments, Tim Cawsey who spearheads Gemalto’s social media efforts and Thomas Messett, the global editor-in-chief of social media at Nokia.

Other heavyweights include Gilbert Réveillon, CEO of Mobile LOOV and a seasoned expert in the design and roll-out of international loyalty programmes covering finance, e-commerce, b2b, b2c and c2c environments. Mr Réveillon is currently completing his PhD thesis on ‘Value Creation in Virtual Social Networks’. Christophe Langlois, CEO of Visible-Banking.com, experienced banking professional and regular face on the conference speaker circuit will also be sharing the podium.

Jairson Vitorino, chief technical officer of E.Life, a leading market intelligence and social media monitoring company, will share valuable insights on the increasing importance that monitoring tools and supporting analysis are playing in the social space. His presentation will include a case study with a prominent global bank.

Simon Hardie, CEO of research house Eurasia Insights, will reveal the results of The Social Media in Payments Report 2012. This first detailed report to document the use of social media by the global payments industry will be launched at the event. It draws responses from a cross-section of international payment service providers, banks and mobile operators.

“While there are still obvious concerns about privacy/reputational issues and resources, the many success stories reported in The Social Media in Payments Report 2012 should be encouraging news for those deciding to take the plunge,” believes Mr Hardie.

He points out that more than half of the companies surveyed are developing or planning to develop social media strategies – a strong indication that the payment sector is beginning to grasp the importance of social media as part of their communication and marketing mix.

The Social Media in Payments Briefing aims to provide payments professionals with a clear view of how social media is being used by the industry and offers an opportunity to meet with and learn from the experience of their peers. The briefing takes place on 26 June at The Andaz Hotel, Liverpool Street, London EC1. Attendees will receive a copy of the report as part of the event registration fee.

To register for the Social Media in Payments Briefing and for the full programme and list of speakers, visit the event website at http://socialmedia.eurasiainsights.com

Cardis has commercially launched its unique, low value payment software plug-in for banks, processors, payments schemes and merchants. The Cardis solution reduces costs by an order of magnitude for existing payments systems and infrastructures when processing low value payments (LVP). All LVPs are aggregated using patented technology based on auditable stored value units that eliminate the need for processing of individual transactions through the payments system. Raiffeisen Bank International (RBI) has become the first banking group in Europe to introduce the Cardis LVP plug-in, combined with Visa Europe’s V PAY mobile contactless payment solution, as part of its CardMobile service which is being launched in the second quarter of 2012.

“Around the world, cash is often still the preferred way to pay, especially for low value purchases,” explained Nebo Djurdjevic, Chief Executive Officer of Cardis International. “In Europe alone consumers are making 170 billion retail cash transactions below €20, with 90 billion of them below €5. This compares to only 30 billion retail card transactions of any amount[1].

“Our aggregation solution allows payment service providers to extend their existing infrastructure into cost-effective processing of low value payments within existing business relationships, operating and business models. The software works with any secure chip-based device such as contact/contactless payment cards and mobile phones – and it supports a multi-channel environment including face-to-face retail, e-commerce and m-commerce.”

The initial in-market deployment is set to be followed by additional implementations in Europe and Asia, while Cardis is in advanced business discussions with potential partners in multiple markets globally, including North America.

The Cardis solution is designed to address three major trends in the industry.  First, there is growing pressure on the economic model for payments by regulators and merchants from Australia through Europe to the US.  Merchant fees are being challenged and a significant reduction of marginal costs is required to allow for future penetration of the mostly cash low value payment segment in a way that benefits all stakeholders, including merchants and payment service providers.

Second, there is increased competition in the payments space with new entrants from mobile, Internet and retail sectors who are attempting to capture a share of consumers’ low value cash payments. The increased choice in payment solutions makes it even more important to offer a highly efficient and integrated solution to issuers, acquirers, merchants and consumers.

Finally, we are seeing a technology shift with the widespread adoption of secure chip technology across payment form factors in all regions globally with the US, India and China being added recently as significant markets that will migrate in the next few years.

“Combined with the push for mobile payments adoption, the growing popularity of e/m commerce, and the natural fit of the phone with large underserved populations who largely rely on cash, the market environment is now poised for adoption of the Cardis solution. The game-changing efficiency of our low value payment solution now delivers, for the first time in the industry, a true win-win proposition for consumers, merchants and payment providers alike”, added Djurdjevic.

NOTES TO EDITORS

Cardis Enterprises International BV provides unique solutions for processing of low value payments with game changing cost efficiency. It aligns the interests of banks, payments schemes and retailers in driving the global move to cashless payments with significant economic benefits to their businesses.

Cardis’ patented technology is available as a software plug-in that integrates with existing payments products and infrastructures to significantly reduce processing costs. All small transactions are aggregated using patented technology based on auditable stored value units that eliminate the need for processing of individual transactions through the payments system. It supports all chip-enabled form factors including contact cards, contactless cards and mobile phones, and all payment channels including physical point of sale, online and mobile commerce. www.cardis-international.com

Brand managers and senior executives can now monitor their organisation’s presence on Twitter with the launch of free iPad app e.lifeMonitor.

The app is already available for the iPad and will soon be ready for tablets using other operating systems. The app will also shortly be extended to monitor brand presence on Facebook and other social networks.

The app has been developed by e.life, a cutting-edge market intelligence and social media monitoring company with its roots in Brazil and operations across South America, Mexico, Spain and Portugal.

Although it is a free app, e.lifeMonitor offers a distinctive dashboard with six reports: top users ranked by followers, locations, top re-tweets, top terms and daily volume charting. Users can register up to three brands and compare their tweet presence. As an option, ‘negative’ or ‘positive’ terms can be used to track sentiment.

For E.life the decision to choose the Apple tablet has been a calculated strategy. Jairson Vitorino, chief technical officer at E.life explains: “With no other app with this capability available in the iPad appstore, we wanted to be first. We believe that a large proportion of iPads are owned by technologically-savvy corporate managers and executives who are becoming increasingly familiar with social media.”  

The free app can be found by searching for ‘social networking’ in the appstore.

For corporate users of e.lifeMonitor app, e.life is giving away 500 free trials of its Tweetmeter web-based system.

Brands and social media: The importance of analysis

Software is an essential ally in monitoring social networks and the number of useful tools it provides continues to increase. Although these tools include some great graphics, real-time reporting and even automated analysis of users’ opinions about brands, many corporate social media managers can feel overwhelmed by the amount of data they receive.

“The benefits of automatic software solutions have been exaggerated,” Vitorino points out. “Marketing directors and brand managers can become frustrated with the excessive time it takes to debug the data, accurately analyse and interpret it.

“Our clients are looking to create a summary report that adds real value and enables them to make informed decisions to drive their social media strategy.”

E.life offers brands which want to know where they stand in social networks access to a group of analysts specialised in social media who provide market intelligence reports based on a proven method, e.life’s own customised tools and their own experience and knowledge. Their reports are unique as they are based on these elements to offer an added value service.

“Our competitors are wholly focused on the tools. Those alone, without a human brain behind them, do not offer true market intelligence. That is why we offer our e.lifeMonitor tool for free – because what really matters is the service and not the tools used as a means to provide it. Software without people to make sense of the social media buzz works just like a placebo – it makes companies believe they have the means to cure social media anxiety. Data without an intelligent analysis has no positive effect on a company’s social media strategy and might end up taking them in the wrong direction,” added Jairson Vitorino.

NOTES TO EDITORS

E.life is a leading market intelligence and social media monitoring company based in Brazil and operating in Latin America, Spain and Portugal. Since its creation in 2004, e.life’s average annual growth rate has been 80% and it now has around 100 employees, 200 projects and 50 global clients from different industry sectors. E.life has offices in Brazil, Germany, Spain and Portugal. The company uses its own technology to monitor and analyse the conversations taking place on the internet and constantly invests in research and development in order to develop new tools, technology and methodologies to analyse the social media buzz. http://elife.com.br/home_uk/

According to European Payment Cards Yearbook – the industry’s most comprehensive report covering every aspect of payment across 33 European countries – the prepaid cards sector has been one of the fastest growing market segments in the card business since 2009.  Industry experts predict that spending on prepaid cards could match that of revolving-credit cards in the next few years.

“In continental Europe the current account is still the cornerstone of the bank-customer relationship,” says Horst Förster, researcher and co-author of the report.

“The historic dominance of debit cards across Europe continues,” explains Förster. “This is reflected in the 38.2% growth of debit cards between 2006 and 2010. In addition, debit transactions rose by more than twice the rate of cards issued, a clear sign that government and bank measures to stimulate electronic payment methods and drive out cash are working. “

The total growth in ATM terminals and cash transactions, however, shows that the battle against cash has not yet been won. This bodes well for opportunities in prepaid, contactless and other forms of electronic payment. There is also a clear movement towards mobile payment innovations, with market entrants including a range of ‘new kids on the block’ such as mobile network operators, Google, PayPal and others.

“A number of interesting developments are emerging in the dynamic and diverse European markets,” says Alex Rolfe, managing director of Payments Cards and Mobile, which commissioned and published the report.

“As previously predicted, new contactless technologies, online and mobile payments are now providing a serious challenge to the traditional forms of payment. More than 200 near field communication projects are underway in Europe while contactless initiatives proliferate in markets like Poland and Turkey. This is a clear sign of what we can expect to see more of in the very near future.”

Mr Rolfe points out that, despite the depressing economic headlines, there are still real opportunities available in Europe for innovative, pioneering companies.

• The European Payment Cards Yearbook, now in its 14th year, covers pan-European and more detailed country-by-country details. Comprehensive statistics, charts and commentary are available on card issuing and acquiring, the banking sector, mergers and acquisitions in this sector as well as developments in electronic and mobile commerce.
• The Yearbook has evolved over the years to become a complete ‘almanac’ for payments professionals. A separate publication, also available now, is the Russia, Georgia and CIS Payment Cards Yearbook. It covers Kazakhstan, Armenia, Azerbaijan, Belarus, Kyrgyzstan, Moldova and Uzbekistan in addition to Russia, Georgia and Ukraine.
• More information is available at: http://www.paymentcardyearbooks.com/

These are the findings of a major new report, the contents of which will be discussed in depth at Cardist 2011 – the fourth International Card and Smart Technologies exhibition and summit taking place in Istanbul in November.

Eurasia Insights – a leading research company specialising in the Eurasian economies – says that with large proportions of its population under the age of 30, widespread use of mobile phones and economies forecast to grow faster than other markets for years to come, Central and Eastern Europe and Central Asia are an obvious opportunity for financial services providers and cards issuers in particular.

However, there are significant problems to overcome – not least the effects of the credit crisis in 2008. Eurasian consumers are happier using debit cards than credit cards as a result of fears over credit repayments. Governments and regulators are understandably wary about encouraging their citizens to spend more and take advantage of credit offered by the banks. Even in Turkey where credit cards are more popular than elsewhere in Eurasia, campaigns to persuade people to spend money they already have in their accounts rather than using credit cards have been launched. The possibility of  inking credit card limits to salaries is also being considered.

Eurasia Insights’ analysis of the Central and Eastern European (CEE) card markets reveals that despite the credit crunch that has afflicted spending volumes and bank lending over the past two years,
the CEE region on the whole is continuing to embrace payment cards with enthusiasm.

High double-digit growth rates are the norm across the region in terms of the numbers of cards issued and card transaction numbers with more and more people using their debit cards in shops
and businesses rather than just to withdraw cash.

Simon Hardie of Eurasia Insights said: “Two institutions in particular – UniCredit Group and Raiffeisen Bank International – have proven that a combination of regional focus and solid execution can reap rewards across many of the markets covered in this report. Others have established cards franchises in their home markets – Garanti Bank, Yapi Kredi (part owned by UniCredit) in Turkey, for example – that are proving hard to beat and are potentially being considered for export beyond their country’s borders. We hope both their success and this year’s report will give financial services providers an insight as to how this can be achieved.”

Among Eurasian countries, Poland and Turkey are leading the way in trialling and adopting modern payment technologies.

Since 2003, Turkey has had a contactless highway toll collection system in place, which has helped consumers to become familiar with the technology – and Turkey is now in the process of adapting public transport systems to accept contactless-enabled payment cards. The move to contactless technology in Turkey was facilitated by it being one of the first countries in Europe to begin the migration to EMV (“Chip and Pin”) technology.

Özgür Altunta?, Product and Marketing Vice-General Manager at payments solutions provider SmartSoft, one of the sponsors of Cardist 2011, added: “Turkey is one of most innovative markets in the world in terms of banking infrastructure. Thanks to Turkish firms continuously investing in research and development, we are one of the fastest countries in terms of adapting to technology.”

Innovative programmes and trials ranging from loyalty schemes to contactless and mobile payment technologies will be showcased at the Cardist 2011 Summit. The event will also provide an opportunity for financial and telecommunications experts to discuss the future of payments in the region.
More information is available at www.cardist.com.tr/en.

NOTES TO EDITORS

For more information, contact Denise Gee at MagnaCarta PR: denise@magnacartapr.com

The Eurasia Payments Report 2011, a comprehensive study of 19 key payments markets in Central Asia and Eastern Europe, is published by Eurasia Insights. The report will be available to buy at a reduced price for all Cardist 2011 delegates – email stephanie.lalanne@eurasiainsights.com for more information. Full details of the report can also be found at www.eurasiainsights.com

Cardist 2011 – the fourth international cards and smart technologies exhibition and summit in Istanbul – takes place from the 1^st to the 3^rd of November 2011. More information is available at www.cardist.com.tr/en/.

Background on Turkey’s contactless network:

Both MasterCard’s PayPass and Visa’s payWave contactless propositions were first launched in Turkey before being rolled out to other markets. MasterCard’s PayPass has been implemented on some
transport networks in different regions of the country. In Istanbul, the tap-and-go technology is available on the Dolmus network, a system of minibuses which operates in the capital. It is available on three cities’ bus networks, Canakkale, Samsun and Kahramanmaras, as well as the Istanbul Ferry Corporation. Visa’s contactless technology has been applied on transportation networks too,
including ferry networks around Istanbul through a product offered by DenizBank.

Credit card numbers in Turkey tripled and debit card numbers doubled between 2002 and 2009, and data from Visa and MasterCard shows that Turkey is second and fourth respectively in terms of
credit card numbers and credit card turnover in Europe. As of 2010, ten banks offered contactless technology to their customers in Turkey. There were over 2.2 million contactless credit cards in circulation as of 2010, and on a monthly basis, around EUR 600,000 is transacted using contactless cards, with over 32,000 contactless card terminals installed across the country.

Millions now use mobile devices to make cashless payments, check their bank accounts, and authorise online transactions – the use of mobile phones, tablet computers and other devices for financial purposes continues to grow.
The fourth International Card and Smart Technologies Exhibition and Summit in Istanbul (Cardist) is the place where leading industry figures from the worlds of payments and mobiles can come together to discuss and debate the future. It will play host to several major announcements as well as presentations from senior business leaders from both the financial and telecoms industries.

Taking place from the 1st to the 3rd of November 2011, Cardist will welcome exhibitors from all over Eurasia and beyond including those involved in:
• Card technology software, hardware and services
• Smart card/code applications
• RFID technologies
• E-government and M-government solutions
• NFC technologies
• POS terminals and applications
• Telecommunication/internet services
• Card management systems
The Summit will feature discussions on key subjects including:
• Banking meets mobile – What will be the effect on the region’s financial institutions when mobile payments go mainstream? Is a new era of competition in payments dawning? With Sureyva Ciliv, CEO of Turkcell.
• Mobile applications – The role of the SIM industry in enabling a secure mobile application culture. With Michele Scarlatella, Board Director of the SIM Alliance.
• Post- or pre-pay? – The opportunities for credit, debit and prepaid cards across Eurasia. With Robert Wright, CEO of Raiffeisen Kosovo and Ronald Boddy, Head of Credit Cards, GE Money Bank, Czech Republic.
• Innovation in prepaid – Some of the applications of prepaid cards in regional government and transportation programmes. With Hayri Baracli, General Manager of IETT and Brian Chambers, MD of Octopus International Projects, Hong Kong.
• When mobile met money – International remittances and mobile money; Contactless payments. With Gonca Acikalin, Vice-President, Account based money transfer, Europe & CIS, Western Union and Christophe Siegelin, President of the Smart Payment Association.
• Payment futures With Ali Salci, Mobile Financial Services, Turkcell; Celal Cündo?lu, Assistant General Manager/Business Development at BKM; Ahmet Kozako?lu, General Manager, E-Kent; and Reha Emekli, Assistant General Manager, Garanti Ödeme Sistemleri A.?.
Speakers and panellists will include representatives of major national, regional and international companies and organisations.
More information on Cardist 2011 is available at www.cardist.com.tr/en. You can also follow news on Twitter www.twitter.com/Cardist2011.

Yes, the way in which BP’s spokespeople handle the messages, the flow of information and the concerns of the locals affected by the disaster is important but one cannot expect the company’s communications teams (external and internal) to solve the crisis. The bulk of the responsibility is surely on the shoulders of BP management, the disaster recovery teams and engineers finding a solution, and quickly.

Having worked on a gas-to-fuels facility for ten years, I am surprised that a scenario has not been written and practised for a disaster like this. Or could it be that the scenario exists but those responsible thought the proposed recovery plan would suffice?

My first lesson in crisis management came from a seasoned communicator in the South African mining industry – “if you can imagine it, it CAN happen”.

Let’s look at the payments industry and a few of its own scenarios-come-true:

-          The credit crunch and global economic meltdown

-          State control over interchange fees

-          Class action law suits

-          Failing technology solutions

-          Multi-million dollar security breeches

Companies in every industry are pushing the limits in their efforts to remain competitive. Pushing the limits comes at a price and involves bigger risks. Decision makers should take responsibility for implementing big ambitious plans. They should also take responsibility for ensuring that they have disaster recovery plans in place that are regularly tested because if ‘it’ can happen, it will – and it’s no good when it’s too late to expect the communicators to achieve reputational miracles.

As for the communications specialists, your job is to point out the potential issues, to ask the difficult questions, to challenge the recovery plans and to take your place at the decision making table.

Denise Gee

Consider the money in your pocket:

Cards are a safe and easy way to pay abroad and South Africa has an excellent infrastructure that enables you to pay almost anywhere with a card, including at petrol stations and tolls. A prepaid card is a sensible option for everyday use and will enable you to separate your holiday funds from your current account or credit facility, safeguarding these funds from unnecessary risk.

Try to limit the cards you take with you. If you have to take more than one card, take just one in your wallet at any given time while keeping the others in a safe place – if using a hotel, preferably locked up in a safety deposit box.

Separate cards from cash – that way you won’t lose everything – and limit the cash you carry to as little as possible.

Make sure you have the telephone numbers of your card provider’s emergency call centres with you to report any losses or suspected fraud.

Hold bags or wallets close to your body – although a less stylish option, a money belt/bag is still the sensible thing to carry.

When driving, keep your doors locked and the windows closed and do NOT keep handbags, mobile phones, cameras or other valuables on the seat or within sight. Stash these under the seat.

General safety tips

Photocopy your passport and drivers license and keep them in a safe place in case they are lost or stolen.

Use common sense when approached by strangers – don’t ever provide personal details.

Drive defensively on South African roads – the road culture is aggressive!

Make sure you know the route by investing in a good map or sourcing a satellite navigation device. You do not want to get lost.

Don’t walk alone at night. While rural areas are fairly safe, be vigilant in cities and in crowded places.

Be watchful, take precautions, use common sense as you would whenever you travel abroad and you should be fine. Enjoy the World Cup in a truly spectacular and welcoming South Africa or wherever you spend your summer this year.

Denise Gee

Alexander Rolfe, Managing Director of PCM, explained: “With a track record of 15 years in publishing, and our recent expansion into research and consultancy services, Payments Cards and Mobile provides a natural alignment to the services delivered by MagnaCarta.

“We know that many of the innovative and successful companies in this sector often need professional communications help to get their messages across. Who better to provide this than people who understand their industry? That’s where the combined industry experience of MagnaCarta and PCM can make a real difference.”

“This collaboration is good news for our clients,” said MagnaCarta Director, Denise Gee. “Our relationship with Payments, Cards and Mobile helps us keep right up-to-date with what is happening in the industry and tap into the knowledge, rich information and research of one of the leading payments publishing houses. This assists us in advising our clients about what is topical, and when, where and how to position their messages most effectively across the full range of traditional media as well as newer, online, channels.”

Alexander added: “We want to improve the opportunities for all payments vendors and organisations, large and small, to get their voice heard and take part in the payments debate. We believe by working together, PCM and MagnaCarta can provide that forum at rates that are affordable for all.”

NOTE TO EDITORS

MagnaCarta PR Ltd is based in the UK but has an international network of communications specialists who can be called upon to assist with client projects. More information is available at www.magnacartapr.com