Global Affinity Finance Club Summer 2013

AFFINITY INSURANCE
BANCASSURANCE
AFFINITY BANKING
Global Affinity
Finance Club
Finaccord’s newsletter about affinity financial services worldwide
Welcome back to your Club!
Welcome back after the summer break. This latest edition of the
Global Affinity Finance Club encapsulates over 70 news items drawn
from a very wide spread of geographies.
Merger and acquisition activity with ramifications for particular dis-
tribution partnerships has loomed large in recent months. Notable
deals in this respect include Assurant’s acquisition of Lifestyle Ser-
vices Group in the UK, the move by Citi Retail Services in the US
to purchase the Best Buy retailer card portfolio from Capital One,
Itaú Unibanco's agreement to buy a 51% equity holding in the re-
tailer financial services operations of Cencosud in Argentina and
Chile, Santam’s purchase of Travel Insurance Consultants in South
Africa, Sberbank’s acquisition of a 75% stake in Yandex.Money in
Russia, and TD Bank’s deal to buy a tranche of CIBC’s portfolio of
Aeroplan co-branded cards in Canada.
Another interesting alliance has been that forged between AIA
Group and South Africa’s Discovery Holdings for the introduction
to the Asia-Pacific region by the former of the wellness-based life
insurance model of the latter.
Moreover, as in most editions, payment companies JCB, Master-
Card, Monitise, UnionPay, Visa and Western Union are prominent
at the international level, especially in the fast-moving world of mo-
bile and online payments.
With best regards,
Alan Leach
Director
aleach@finaccord.com
For our published reports,
news and more please visit
www.finaccord.com
2013SUMMER

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Affinity Insurance News 4
ASSISTANCE 4
QDOS selects Aria Assistance for road
assistance 4
RAC secures contract with major used
car dealer network 4
Tranquilidade and Europ Assistance
combine to target Portuguese moving
abroad 4
HomeServe to distribute cover through
two more US water utilities 4
COMMERCIAL INSURANCE 4
Beazley offers insurance with associa-
tion of event organisers in Australia 4
Euler Hermes introduces trade credit
insurance for HSBC customers in Singa-
pore... 4
... and teams up with French agency for
international business development 5
HEALTH INSURANCE 5
Aflac and Japan Post extend cancer in-
surance distribution agreement 5
LIFE INSURANCE 6
AIA and Discovery Holdings combine
for wellness-based life insurance model
6
MOTOR INSURANCE 6
Allianz and Volvo enter into car insur-
ance partnership in France 6
Schweizerische Mobiliar and Migros
collaborate for car sharing platform 6
NICHE INSURANCE 6
UK insurance providers launch excess
protection product through automotive
media affinities 6
Achmea works with Dutch trade union
for legal protection service 6
Markerstudy Group subsidiary wins pet
insurance deal with Capita Insurance
Distribution 6
British Rowing launches partnership
with Elite Rowing Insurance 6
Allianz develops innovative student
insurance product for Spanish university
network 7
PRODUCT INSURANCE / WAR-
RANTIES 7
Domestic & General signs up Samsung
and Smeg as partners in the UK 7
CarGarantie secures four new extended
warranty deals in Europe 7
The Warranty Group earns extended
warranty contract with Argentine retail
group 7
Assurant buys UK mobile gadget and
phone insurance specialist LSG... 7
... and rolls out premium handset pro-
tection services for T-Mobile in the US
7
Frontier Secure and Asurion launch no-
contract electronic equipment protec-
tion plans 7
Solid Försäkringar secures affinity insur-
ance contract with jewellery chain 8
Middlesea Assist wins mandate with
Malta's largest automotive dealer
group... 8
... and enters into partnership with Sam-
sung for extended warranties 8
TRAVEL INSURANCE 8
MAPFRE Assistance earns travel assis-
tance deal with fuel retailing group 8
RBC Insurance begins transitioning
travel agency insurance business to
Manulife Financial 9
Santam acquires leading South African
travel insurance specialist 9
GENERAL 9
Direct Line and Münchener Verein Ver-
sicherungsgruppe enter into reciprocal
marketing agreement 9
Bancassurance News 9
ASSISTANCE 9
Europ Assistance to provide travel
cover for Spanish bank's cardholders 9
LIFE INSURANCE 9
BNP Paribas Cardif joint venture signs
distribution deal with Vietnamese bank
9
Dai-Ichi Life acquires stake in Indone-
sian bancassurer 9
GENERAL 10
Aviva secures distribution through Pol-
ish bank network up to the end of 2033
10
RBS divests further equity stake in Di-
rect Line Insurance Group 10
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Affinity Banking News 10
AFFINITY ACCOUNTS 10
American Express ties Serve prepaid
account to League of Legends game 10
AFFINITY CARDS 10
Equity Bank introduces prepaid affin-
ity card with Kenyan university 10
AUTOMOTIVE FINANCE 11
Sberbank increases equity stake in con-
sumer finance joint venture 11
Crédit Agricole and Fiat extend joint
venture through to end of 2021 11
CO-BRANDED CARDS 11
MasterCard rolls out new frequent
flyer membership card with Qantas 11
Bank of America renews co-branding
partnership with Virgin Atlantic... 11
... and also launches a new co-branded
card for Royal Caribbean 11
HDFC Bank and Jet Airways launch
co-branded debit card in India 12
TD Bank to acquire portion of Aero-
plan Visa card portfolio from CIBC 12
Orange and Visa collaborate for co-
branded prepaid card in Botswana 12
Western Union and Commercial Bank
of Dubai introduce prepaid payroll
card in UAE 12
CONSUMER FINANCE 12
Credit Europe Bank finalises Russian
joint venture with IKANO Group 12
Citibank links with Carrefour for con-
sumer finance initiative in Bahrain 12
BNL finances university fees of Venice
-based university 13
INTERNATIONAL / DOMESTIC
REMITTANCES 13
Western Union secures Chinese ties
with ICBC and UnionPay 13
MOBILE / ONLINE PAYMENTS
13
Citibank enters into enhanced mobile
payment partnership with Taiwanese
cinema operator 13
MasterCard launches mobile payment
solution with trio of Egyptian partners
13
Etisalat ties with MasterCard and NBE
for launch of new mobile wallet 14
Italian partners join forces for mobile
payments trial 14
ICICI Bank works with Movida for
mobile payment service 14
Telefónica appoints Monitise as an
official mobile payments partner 14
Monitise strikes up mobile payment
deals in Canada, the UK and the US 14
Western Union concludes several new
mobile payment partnerships 15
Sberbank acquires majority stake in
Yandex online payments business 15
PAYMENT CARD ACCEPTANCE
AND ISSUANCE 15
American Express enters into card
distribution partnership with Wells
Fargo 15
Citibank, JACCS and Visa tie for first
multi-currency prepaid card in Japan
15
MCB becomes the first issuer of Un-
ionPay cards in Africa 16
UnionPay establishes agreement with
Kyrgyzstani bank 16
UnionPay creates agreements with
partners in France and Switzerland 16
UnionPay extends its acceptance
among international travel and educa-
tion providers... 16
... plus African payment processing
firms 16
JCB creates deals to improve card issu-
ance and acceptance across multiple
countries 16
CaixaBank and Global Payments form
merchant payment services joint ven-
ture in Brazil... 17
... which rolls out mobile payment so-
lution for small businesses as its first
product 17
Watchdata combines with local part-
ners to launch dual currency smart
card 17
RETAILER BANKING 17
Scotiabank to install ATMs in Couche-
Tard convenience stores across Que-
bec 17
RETAILER CARDS 17
Itaú Unibanco seals retailer financial
services pact with Cencosud 17
Citi Retail Services extends long-
standing private label card partnership
with Staples... 18
... and acquires Best Buy credit card
portfolio from Capital One 18
GE Capital Retail Bank secures private
label retailer card agreements with
three partners 18
LaSer and Système U combine for
introduction of new Visa card 18

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Affinity Insurance News
ASSISTANCE
QDOS selects Aria Assistance
for road assistance
In the UK, Aria Assistance has
been selected as the provider of
white-labelled road assistance and
breakdown recovery services sold
by QDOS Rescue Services (part of
QDOS Insurance Services). These
products will mainly be sold di-
rectly online, although QDOS will
also promote them through a num-
ber of aggregators, including com-
parethemarket.com, Know Your
Money and moneysupermar-
ket.com. The services available will
include roadside repair or recovery,
cover at home, overnight emer-
gency accommodation and cour-
tesy vehicles.
RAC secures contract with ma-
jor used car dealer network
Also in the UK, Carbase, which is a
large independent used car dealer
network in the south-west of Eng-
land, has recently signed up to the
RAC BuySure program. All used
vehicles sold in conjunction with
this scheme undergo an 82-point
preparation check, and obtain a
minimum of three months RAC
warranty cover, three months of
complimentary RAC road assis-
tance cover and enrolment into
RAC's accident management ser-
vice. Carbase has branches in Wes-
ton-super-Mare, Lympsham and
Brent Knoll, and also operates a
national car sales website.
Tranquilidade and Europ Assis-
tance combine to target Portu-
guese moving abroad
In Portugal, insurer Tranquilidade
(owned by Grupo Espírito Santo)
is to collaborate with Europ Assis-
tance for a new product being of-
fered to customers moving abroad
for work. The new policies com-
bine life insurance and travel assis-
tance, with Europ Assistance re-
sponsible for providing the latter.
The proposition includes payment
of medical expenses up to EUR
50,000, repatriation or medical
transportation in the event of seri-
ous injury or illness, and cover for
loss of luggage, cancelation and trip
interruption.
HomeServe to distribute cover
through two more US water
utilities
In the US, HomeServe has an-
nounced an expanded distribution
agreement with Aqua America,
encompassing more than 66,000
potential customers located in the
Aqua Texas service territory. This
is, in fact, Aqua America’s sixth
territory to offer HomeServe’s wa-
ter line repair plans; more than
91,000 Aqua America customers
across Pennsylvania, New Jersey,
Ohio, Illinois and Indiana already
subscribe to a service plan from
HomeServe.
In the same field, one of Home-
Serve's wholly-owned subsidiaries
(Home Emergency Insurance Solu-
tions) has signed an agreement
with Dublin San Ramon Services
District, a Californian water and
sewerage utility company. Under
this deal, optional water line repair
plans will be offered to around
15,000 water customers living in
the Dublin and San Ramon area.
—————————————--
COMMERCIAL INSURANCE
Beazley offers insurance with
association of event organisers
in Australia
In Australia, Beazley has entered
into a nationwide partnership with
Meetings & Events Australia
(MEA), a trade association for the
business events industry. Under the
terms of the agreement, MEA's
members will have access to
Beazley's event cancellation insur-
ance. Beazley has been underwrit-
ing policies for the conference,
exhibition, tradeshow, sports, en-
tertainment and leisure industries
for over 20 years and it has main-
tained an underwriting team for
event cancellation risks in Australia
since 2010.
Euler Hermes introduces trade
credit insurance for HSBC cus-
tomers in Singapore...
Euler Hermes has disclosed that it
has begun offering trade credit in-
surance to HSBC's commercial
banking customers in Singapore.
According to the Paris-based spe-
cialist, demand for trade credit in-
surance in Asia is being driven by
business conducted on less secure
terms than in the past as compa-
nies in the region are increasingly
under pressure to trade on an open
-account basis. HSBC and Euler
Hermes, a subsidiary of Allianz,
have been strategic partners for
trade credit insurance in Brazil,
Mexico, the UAE and the US since
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2008. The partnership has also
been launched in the more recent
past in France, Hong Kong and the
UK.
... and teams up with French
agency for international busi-
ness development
In another initiative involving
Euler Hermes, it has signed an
agreement with UBIFRANCE, the
French agency for international
business development, to pool
their respective expertise on behalf
of French companies abroad. As
part of the agreement, the two
partners have set up a collection
service dedicated to UBIFRANCE
customers. UBIFRANCE will also
promote Euler Hermes’ interna-
tional support services, including
use of the insurer’s data about 40
million companies monitored
worldwide and its facility for
launching legal collection proceed-
ings. The two companies will also
sponsor joint events focused on
international matters, notably those
involving financing and market
penetration strategies for new high-
potential markets.
—————————————--
HEALTH INSURANCE
Aflac and Japan Post extend
cancer insurance distribution
agreement
In Japan, Aflac and Japan Post
have entered into a new agreement,
further expanding their partnership
that was initially established in
2008. Aflac will remain the exclu-
sive provider of cancer insurance
distributed through post offices
nationwide across Japan. Through
this alliance, Japan Post intends to
expand the number of post office
outlets that offer Aflac's cancer
insurance products, gradually in-
creasing them from 1,000 to
20,000. Also, subject to regulatory
approval, Japan Post Insurance will
enter into an agency contract with
Aflac Japan to begin distributing
the firm's cancer insurance prod-
ucts at all of its directly-managed
sales offices. In addition, in consul-
tation with Japan Post, Aflac Japan
will consider developing an exclu-
sive cancer insurance product for
both Japan Post and Japan Post
Insurance.
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LIFE INSURANCE
AIA and Discovery Holdings
combine for wellness-based life
insurance model
Discovery Holdings of South Af-
rica and AIA Group, an insurance
group headquartered in Singapore,
have announced a joint venture to
introduce the wellness-based life
insurance model of the former to
the Asia-Pacific region. The ven-
ture, to be known as AIA Vitality,
combines AIA’s distribution prow-
ess in the region with Discovery’s
expertise in wellness-based life in-
surance, offering protection prod-
ucts designed to deliver lower pre-
mium rates to AIA's customers. In
particular, participants can obtain
discounts on their premiums as
they achieve personal wellness
goals over time.
—————————————--
MOTOR INSURANCE
Allianz and Volvo enter into car
insurance partnership in France
Allianz and Volvo have signed an
agreement for the promotion of
motor insurance underwritten by
Allianz through Volvo dealers in
France. This partnership follows
similar agreements the two parties
have struck in Austria and France.
Volvo has already been offering
motor insurance with different
partners in France for a period of
ten years. The manufacturer brand
also stated that in 2012 one in five
French buyers of new Volvo cars
bought the insurance offered via
dealers.
Schweizerische Mobiliar and
Migros collaborate for car shar-
ing platform
In Switzerland, insurer Schweize-
rische Mobiliar has joined forces
with retail group Migros to roll out
Sharoo, an online car sharing plat-
form for both private and corpo-
rate car users. Under the terms of
the agreement, Schweizerische Mo-
biliar will develop tailored insur-
ance solutions for the platform that
the two partners anticipate will go
online at the end of October 2013.
—————————————--
NICHE INSURANCE
UK insurance providers launch
excess protection product
through automotive media af-
finities
In the UK, non-life insurer UK
General has extended an existing
relationship with specialist motor
insurance broker ALA Insurance
Brokers by means of the launch of
a new excess protection product
which will be marketed through
automotive media affinities Auto-
trader, and Exchange and Mart,
plus the broker's own website. The
new product follows on from the
previous launch of a scratch, dent
and alloy protection policy by the
two firms. Sold as an add-on to the
broker's core GAP insurance pol-
icy, the excess protection product
provides comprehensive cover for
up to GBP 750.
Achmea works with Dutch trade
union for legal protection ser-
vice
In the Netherlands, trade union
federation CNV Vakcentrale and
Achmea have announced that they
intend to co-operate in the field of
family legal aid and insurance from
the start of 2014. Through this new
partnership, CNV will continue to
provide free legal assistance to its
members for work-related topics,
such as dismissal procedures, re-
structuring and wage disputes, but
it will no longer provide assistance
for private matters. Instead, this
will be handled by Achmea, offer-
ing members of the union a wider
range of legal assistance and insur-
ance cover at a discounted price.
As part of this, the staff of CNV
Rechtshulp (the trade union's legal
assistance arm) will be transferred
to Stichting Achmea Rechtsbi-
jstand (Achmea's legal protection
company).
Markerstudy Group subsidiary
wins pet insurance deal with
Capita Insurance Distribution
In the UK, Capita Insurance Distri-
bution has selected Zenith Insur-
ance, part of Markerstudy Group,
to underwrite its pet insurance poli-
cies. This process has already be-
gun for current renewals, and will
therefore be completed by mid-
2014. Capita administers pet cover
underwritten by nine insurers
(including Aviva and LV=) for
around 400,000 customers across
the UK. This is the first major dis-
tribution deal for Zenith Insurance
outside motor insurance, its tradi-
tional area of expertise.
British Rowing launches part-
nership with Elite Rowing In-
surance
Also in the UK, Elite Rowing In-
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surance, whose policies are man-
aged by Lovat Insurance Brokers
and underwritten by Zurich’s Navi-
gators and General (N&G), has
seen its specialist rowing insurance
scheme endorsed by British Row-
ing, the governing body for the
sport of rowing. The partnership
allows Elite Rowing Insurance to
offer bespoke cover to 550 clubs
and discounted premiums to
27,000 individual members who
own boats and who are registered
with British Rowing.
Allianz develops innovative stu-
dent insurance product for
Spanish university network
In Spain, Allianz and Universia, a
university network, have estab-
lished a partnership for the promo-
tion of an insurance product aimed
at students which insures tuition
fees for the full period of study in
the event of the death, disability or
unemployment of students’ par-
ents. The product, which is inter-
mediated by Segurosbroker, is
available to all Spanish students
whose parents are below 70 years
of age. Students can choose which
components of cover they want to
take out; death and permanent dis-
ability only; temporary incapacity;
unemployment; or a combination
of the three.
Universia is a network of 1,242
universities across the Iberian pen-
insula and Latin America. In Spain,
Universia has 79 member universi-
ties which represent 1.5 million
students.
—————————————--
PRODUCT INSURANCE /
WARRANTIES
Domestic & General signs up
Samsung and Smeg as partners
in the UK
In the UK, Domestic & General
has entered into two new extended
warranty relationships. One is with
Samsung with a focus on the
brand's television products which
will be based around registration
stickers and in-box registration
cards. The other is with kitchen
appliance manufacturer Smeg
which sees the migration to the UK
of an existing partnership in Italy in
the form of a five-year agreement.
CarGarantie secures four new
extended warranty deals in
Europe
Automotive extended warranty
specialist CarGarantie has entered
into a quartet of new agreements in
different European countries. Spe-
cifically, these are with Triumph (a
motor cycle manufacturer) in Aus-
tria and Germany, Auto Italia (an
importer of Alfa Romeo and Fiat
cars) in Bulgaria, Subaru in the
Netherlands, and the Mercedes-
Benz and Smart brands in Poland.
The Warranty Group earns ex-
tended warranty contract with
Argentine retail group
In Argentina, The Warranty Group
and retail group Garbarino have
signed an agreement for the provi-
sion of underwriting, administra-
tion and technical support for ex-
tended warranties sold in conjunc-
tion with consumer electronic
products. The program will be im-
plemented throughout the Gar-
barino's 153 retail locations in the
country which include both Gar-
barino itself and Compumundo
outlets.
Assurant buys UK mobile
gadget and phone insurance
specialist LSG...
With a focus on the UK mobile
gadget and phone insurance sector,
Assurant has announced an agree-
ment to purchase Lifestyle Services
Group (LSG), a company specialis-
ing in this field, for up to USD 160
million (close to GBP 100 million)
in cash from Phones 4u Finance.
With around GBP 115 million in
annual revenues, LSG is one of the
largest providers of mobile device
insurance in the UK, providing the
service through several banks and
mobile network operators. The
transaction is subject to regulatory
approval and expected to close in
the fourth quarter of 2013.
... and rolls out premium hand-
set protection services for T-
Mobile in the US
In addition, in conjunction with
mobile network operator T-Mobile,
Assurant has disclosed an en-
hanced handset protection policy
in the US that allows customers to
upgrade their phone as often as
twice a year while maintaining pro-
tection against loss, theft, acciden-
tal damage and technical malfunc-
tion.
Frontier Secure and Asurion
launch no-contract electronic
equipment protection plans
Also in the US, Frontier Secure,
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part of telecoms group Frontier
Communications, has rolled out
new comprehensive equipment
protection services in partnership
with Asurion. In addition to Fron-
tier Secure's identity theft protec-
tion, technical support and data
security services, the group is now
offering Asurion's extended repair
and replacement plans covering
most types of computing equip-
ment, portable gadgets and con-
sumer electronics to both business
and private customers, all with no
requirement for any contract.
Solid Försäkringar secures affin-
ity insurance contract with jew-
ellery chain
In Sweden, Solid Försäkringar has
entered into a distribution partner-
ship with Adorn, a jewellery chain
that operates more than 70 stores
across the country. Through this
agreement, Solid Försäkringar will
offer jewellery insurance cover for
Adorn's customers.
Middlesea Assist wins mandate
with Malta's largest automotive
dealer group...
In Malta, Middlesea Assist, an as-
sistance subsidiary of MAPFRE
Asistencia, has entered into an
agreement with Michael Debono,
the local importer of the Toyota
and Hino automotive brands, to
operate extended warranty and
road assistance programs. This
builds upon a comparable previous
contract set up in 2012 with Cars
International, the Maltese importer
of Opel. Michael Debono is Malta's
largest dealer group in terms of its
market share of new vehicle sales
(at more than 15%) and is also ac-
tive in the used vehicle sector.
... and enters into partnership
with Samsung for extended war-
ranties
Middlesea Assist has also secured a
contract with Sound Machine, the
Maltese importer of Samsung
products, to set up an extended
warranty scheme for televisions
(with widths from 19 to 65 inches).
It is anticipated that the contract
will broaden subsequently to other
consumer electronic products
manufactured by Samsung includ-
ing fridges, ovens and washing ma-
chines.
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TRAVEL INSURANCE
MAPFRE Assistance earns
travel assistance deal with fuel
retailing group
In Hungary and neighbouring
countries, MAPFRE Assistance has
won a contract with fuel retailer
MOL for the provision of travel
assistance policies lasting three, five
or ten days, and valid across the
whole of Europe plus Egypt, Mo-
rocco, Tunisia and Turkey. Cus-
tomers can activate the service by
phone, entering a personal security
code received when they buy the
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product. The product was launched
in May 2013 at around 100 fuel
stations located at larger towns and
cities in Hungary and on major
roads in Austria, Romania, Serbia,
Slovakia and Slovenia.
RBC Insurance begins transi-
tioning travel agency insurance
business to Manulife Financial
In Canada, Manulife Financial has
entered into an agreement with
RBC Insurance whereby the for-
mer company will reinsure the
travel insurance coverage sold by
the latter through travel agencies.
This arrangement includes transi-
tioning to Manulife the sales and
distribution support needed by the
travel agency business of RBC In-
surance. In addition, the travel
agencies will be offered the oppor-
tunity to renew their agency agree-
ments with Manulife upon expira-
tion of their current RBC Insur-
ance contracts. However, RBC In-
surance will continue to act as in-
surance provider to the travel agen-
cies until the expiration of the cur-
rent travel agency contracts. The
arrangements are not subject to
regulatory approval and are ex-
pected to commence during the
third quarter of 2013.
Santam acquires leading South
African travel insurance special-
ist
In South Africa, Santam has ac-
quired 100% of Travel Insurance
Consultants (TIC), one of the
country's leading travel insurance
businesses that has been in opera-
tion for 25 years. TIC will become
a division of Santam although will
continue to trade under its own
brand. The company is especially
strong at selling through the travel
trade distribution channel with key
partners including Flight Centre,
Rennies Travel and Sure Travel.
—————————————--
GENERAL
Direct Line and Münchener
Verein Versicherungsgruppe
enter into reciprocal marketing
agreement
In Germany, Direct Line and
Münchener Verein Versicherungs-
gruppe have started co-operating
for the reciprocal marketing of
each others' products. Specifically,
Direct Line will promote its part-
ner's supplementary long-term care
insurance products to its client
base, while Münchener Verein Ver-
sicherungsgruppe will recommend
Direct Line's motor insurance poli-
cies to its own customers.
—————————————--
Bancassurance News
ASSISTANCE
Europ Assistance to provide
travel cover for Spanish bank's
cardholders
In Spain, as part of a strengthening
partnership between the two firms,
Europ Assistance has assumed re-
sponsibility for the provision of
travel assistance services for hold-
ers of Banco Popular's credit cards.
Customers with Classic, Gold, Sil-
ver or Business Gold Business Visa
cards who meet with unforeseeable
expenses while travelling now have
guaranteed travel assistance, includ-
ing transportation or repatriation in
the event of injury or illness, early
return and round-trip travel plus
accommodation for an accompany-
ing family member, as well as the
payment of medical, surgical, phar-
maceutical and hospital expenses.
—————————————--
LIFE INSURANCE
BNP Paribas Cardif joint ven-
ture signs distribution deal with
Vietnamese bank
In Vietnam, Vietcombank Cardif
Life Insurance Company (VCLI),
has signed a bancassurance agree-
ment with Saigon Commercial
Bank. Savings and protection insur-
ance products to be developed by
VCLI will be distributed through
Saigon Commercial Bank's network
of more than 230 branches. The
first product to be developed will
be an account protection policy,
insuring the bank's customers
against death and disability. Saigon
Commercial Bank is one of the top
five joint stock commercial banks
in Vietnam with total assets of
about EUR 5.54 billion and more
than 4,000 bank staff. Meanwhile,
VCLI is a joint venture co-owned
by Vietcombank (45%), BNP
Paribas Cardif (43%) and SeABank
(12%) which has already launched
creditor insurance through its co-
owners plus OCB.
Dai-Ichi Life acquires stake in
Indonesian bancassurer
In the Indonesian bancassurance
market, Japan-based Dai-ichi Life
has announced that it has agreed to
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buy new shares issued by Panin
Life equivalent to 40% of its equity
capital. Panin Life is a life insur-
ance subsidiary of Panin Financial,
a leading financial corporation
which also owns Panin Bank,
which is itself one of the country's
major banks, as well as other finan-
cial institutions. Simultaneously,
subject to obtaining relevant ap-
provals from local authorities,
Panin Life is also expected to enter
into an exclusive long-term bancas-
surance agreement with Panin
Bank.
—————————————--
GENERAL
Aviva secures distribution
through Polish bank network up
to the end of 2033
Aviva and Bank Zachodni WBK
have agreed an expansion of their
strategic partnership in Poland.
Under the terms of this agreement,
Aviva will increase its distribution
network from around 500 to 900
branches across Poland, with ac-
cess to approximately 4 million
bank customers. Additionally, the
two partners will extend their stra-
tegic partnership by a further ten
years up to the end of 2033. Bank
Zachodni WBK, part of the
Santander group, is the third-
largest bank in Poland in terms of
assets, loans and deposits. Mean-
while, Aviva is Poland’s fourth-
largest life insurer, with a strong
retail business and distribution
agreements in place with Alior
Bank, Bank Pocztowy and BGZ, as
well as Bank Zachodni WBK.
RBS divests further equity stake
in Direct Line Insurance Group
UK-based banking group RBS has
announced the sale of 300 million
ordinary shares in Direct Line In-
surance Group, raising GBP 630
million in the process. This sale
marks the continuation of the
group's EU-mandated disposal
strategy, with cash proceeds being
used for general corporate pur-
poses. The sale means that the
group now holds 427.4 million or-
dinary shares in the insurer, which
it previously owned outright, repre-
senting 28.5% of the issued ordi-
nary share capital. Moreover, it
represents the third such reduction
in less than a year given previous
disposals of a 34.7% stake in Octo-
ber 2012 and a further 16.8% in
March 2013.
—————————————--
Affinity Banking News
AFFINITY ACCOUNTS
American Express ties Serve
prepaid account to League of
Legends game
American Express has announced
a new strategic partnership with
Riot Games to bring in-game re-
wards to League of Legends players
through expenditure via the Ameri-
can Express Serve Prepaid Ac-
count.
The American Express Serve Pre-
paid Account enhances the experi-
ence for League of Legends players
by integrating a reward-based sys-
tem called RP+. This gives gamers
so-called Riot Points, the virtual
currency used to purchase in-game
items like extra customisation or
boosts, not only for signing up, but
for every qualifying purchase made
with the League of Legends Card.
League of Legends has more than
32 million active monthly players
worldwide who log more than 1
billion hours of game-play each
month. Gamers who sign up for
RP+ can elect to receive a custom-
ised League of Legends Card with
their choice of four popular Cham-
pions and original art from the
game itself.
paid Account allows cardholders to
transfer money seamlessly and free
of charge between their fellow
players who also have a Serve ac-
count. Players can also benefit
from the money management fea-
tures of the account, such as direct
deposit, bill pay and free cash with-
drawals at MoneyPass ATMs. To
sign up there are no credit checks,
no hidden fees and no minimum
balance requirements to maintain.
paid Card can be used virtually any-
where that American Express cards
are accepted worldwide, and cus-
tomers can also benefit from asso-
ciated insurance and assistance en-
hancements including purchase
protection and roadside assistance.
—————————————--
AFFINITY CARDS
Equity Bank introduces prepaid
affinity card with Kenyan uni-
versity
In Kenya, the Kenyatta University
has initiated a partnership with Eq-
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uity Bank for a prepaid alumni card
carrying the MasterCard brand and
enabled with PayPass contactless
payment functionality. This allows
alumni to enjoy discounts with se-
lected partners, ranging from ho-
tels, bookshops and hospitals to
insurance companies, mobile
phone service providers and pri-
vate tutors. Partners include Apollo
Insurance, the Automobile Asso-
ciation of Kenya, Emergency Plus
services (Red Cross), Safaricom
and Text Book Centre. Cardhold-
ers earn redeemable points each
time that they use their cards to
make transactions and can also
load them by transferring funds
directly from their Equity Bank
accounts or via Safaricom’s mobile
money platform Mpesa.
—————————————--
AUTOMOTIVE FINANCE
Sberbank increases equity stake
in consumer finance joint ven-
ture
In Russia, BNP Paribas Personal
Finance and Sberbank have dis-
closed that their consumer finance
joint venture, Cetelem Bank, has
proved successful during its first
ten months of business: point-of-
sale balances outstanding have
doubled, and personal car loan bal-
ances have increased four-fold.
This has led Sberbank to transfer
its proprietary car loan business,
generated through partnerships
with car manufacturers and car
dealers, to Cetelem Bank; as part of
the transaction, Sberbank has in-
creased its stake in the joint ven-
ture from 70% to 74%, and it has
an option to increase its stake to
80% after another three years.
Crédit Agricole and Fiat extend
joint venture through to end of
2021
Also in the field of automotive fi-
nance, Crédit Agricole and Fiat
have extended the contractual life
of FGA Capital, a company that
they own jointly, up to the end of
2021. FGA Capital handles Fiat's
main customer and dealer financing
activities in a number of European
markets.
—————————————--
CO-BRANDED CARDS
MasterCard rolls out new fre-
quent flyer membership card
with Qantas
In Australia, MasterCard and Qan-
tas have released a new frequent
flyer membership card with ex-
panded functionality that includes
storage of foreign currency, access
to cash worldwide via ATM with-
drawals and earning points on
spending in Australia and overseas.
Members of the Qantas frequent
flyer program have begun receiving
these chip-enabled cards with al-
most 500,000 having pre-registered
for the new product having been
attracted by the concept of a single
card to check-in for flights, access
lounges, store up to nine foreign
currencies and make purchases at
home or abroad. In total, the Qan-
tas frequent flyer program has
around 9.4 million members and it
aims to reach 10 million in the near
future.
Bank of America renews co-
branding partnership with Vir-
gin Atlantic...
In the US, Bank of America has
disclosed the long-term renewal of
its co-branding partnership with
Virgin Atlantic plus the launch of a
new Virgin Atlantic World Elite
MasterCard credit card. The new
card rewards customers with three
Flying Club miles for every USD
1.0 spent on Virgin Atlantic pur-
chases and 1.5 miles for all other
purchases. In addition, it also in-
corporates MasterCard's 'Priceless
Cities' concept that handpicks ex-
periences and offers in their home
cities and around the world, includ-
ing exclusive access to concerts,
restaurants, museums and sporting
events.
... and also launches a new co-
branded card for Royal Carib-
bean
Bank of America has also renewed
its long-standing partnership with
the Royal Caribbean family of
brands by launching a range of new
co-branded credit card products.
Cardholders will be able to earn
and redeem points, known as My-
Cruise Rewards, on three of the
group's cruise brands, namely
Azamara Club Cruises, Celebrity
Cruises and Royal Caribbean Inter-
national. Through MyCruise Re-
wards, cardholders will earn dis-
counts on cruise-related packages
and spend points on cruises, cabin
upgrades, gifts, and onboard credit
across all three cruise brands. The
new cards will earn double points
for purchases with the three cruise
brands and one point for every
USD 1.0 spent on all other pur-
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chases.
HDFC Bank and Jet Airways
launch co-branded debit card in
India
In India, Jet Airways has enhanced
its partnership with HDFC Bank,
the country's second-largest private
sector bank, by launching what is
claimed to be the country's first
premium debit card, the JetPrivi-
lege-HDFC Bank World Debit
Card. This card allows users to earn
JPMiles, the 'currency' of the Jet
Airways frequent flyer scheme, on
all daily purchases at stores or
online, as well as through acquisi-
tion of Jet Airways airline tickets.
TD Bank to acquire portion of
Aeroplan Visa card portfolio
from CIBC
In Canada, TD Bank is set to be-
come the primary issuer of Aero-
plan Visa credit card products hav-
ing agreed to acquire around 50%
of the existing portfolio from
CIBC, the current issuer, in a deal
that represents around CND 300
billion of credit card receivables.
Following this divestment, CIBC
will continue to issue and manage
Aeroplan Visa cards for customers
with whom it holds a broader
banking relationship (such as its
own current account holders), and
may also continue to originate new
card accounts, whereas the majority
of card-only customers will have
their accounts sold to TD Bank.
Aeroplan is a coalition loyalty
scheme owned by Aimia, and is
one of the largest in Canada. Its
members earn Aeroplan Miles with
a network of over 75 partners, rep-
resenting more than 150 brands in
the financial, retail, and travel sec-
tors.
Orange and Visa collaborate for
co-branded prepaid card in Bot-
swana
In Botswana, Orange and Visa
have revealed that Orange Money
subscribers in the country now
have access to Visa's payment
functionality when using their Or-
ange Money accounts. Specifically,
the enhanced service allows Or-
ange Money subscribers to access
their funds 24 hours a day by with-
drawing money at ATMs and mak-
ing point-of-sale or online pur-
chases wherever Visa is accepted.
This builds on the current Orange
Money service which allows cus-
tomers to use their mobile phones
to transfer funds to any mobile
phone subscriber in the country as
well as to pay electricity and other
bills and to buy airtime. To make
use of the service, Orange Money
subscribers must simply apply for
an Orange Money prepaid Visa
card, issued by BancABC, which is
then instantly linked to their exist-
ing Orange Money account.
Botswana is the first country in the
world where Visa and Orange are
collaborating to allow Orange
Money subscribers to make Visa
transactions, following the an-
nouncement of a group-wide stra-
tegic agreement between Orange
and Visa in 2012.
Western Union and Commercial
Bank of Dubai introduce pre-
paid payroll card in UAE
In the UAE, Western Union and
Commercial Bank of Dubai (CBD)
have unveiled a co-branded prepaid
payroll card, the CBD Western
Union Payroll Card, as a response
to the UAE Wages Protection Sys-
tem, which requires that all workers
in the UAE receive pay electroni-
cally, either deposited into a bank
account or onto a prepaid card.
The card allows workers to receive
their pay directly and the facility to
then transfer funds overseas via
Western Union. The large number
of foreign residents in the UAE is
estimated to have transferred funds
abroad of around USD 11.2 billion
in 2011.
—————————————--
CONSUMER FINANCE
Credit Europe Bank finalises
Russian joint venture with
IKANO Group
Credit Europe Bank and IKANO
Group have announced the regis-
tration of a joint venture bank in
Russia. The new bank, named
IKANO Bank, is expected to be
fully operational by the end of
2013, subject to obtaining a rele-
vant corporate banking license.
IKANO and Credit Europe Bank
were already co-operating in the
country, with the bank providing
consumer financial services for
customers of IKANO Group's
IKEA stores and MEGA shopping
centres.
Citibank links with Carrefour for
consumer finance initiative in
Bahrain
In Bahrain, Citibank has unveiled a
consumer finance partnership with
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Carrefour to enhance the shopping
experience of customers at one of
the largest hypermarkets in the
country. In particular, Citibank
credit card customers can purchase
any electronic item from Carrefour
and sign up to pay in interest-free
monthly instalments over three or
six months.
BNL finances university fees of
Venice-based university
In Italy, BNL and the Ca’ Foscari
University in Venice have signed an
agreement through which the bank
will fund students' university fees
until they graduate. Students then
start paying back the fees during
the final year of their course with a
preferential interest rate charged
for the following five years if they
need extra time to complete the
repayment. The deal also includes a
free bank account with online ac-
cess.
—————————————--
INTERNATIONAL / DOMES-
TIC REMITTANCES
Western Union secures Chinese
ties with ICBC and UnionPay
Western Union has expanded into
China’s banking channel, introduc-
ing international direct-to-bank
remittances in the country while
also broadening its cross-border
money transfer service. First,
through an agreement with Union-
Pay, Western Union customers are
able to transfer funds from selected
Western Union retail locations di-
rectly to bank accounts in China.
Furthermore, a separate agreement
with ICBC (Industrial and Com-
mercial Bank of China) is enabling
more than 400 million of the
bank's customers to receive West-
ern Union transfers to their bank
accounts through online banking.
—————————————--
MOBILE / ONLINE PAY-
MENTS
Citibank enters into enhanced
mobile payment partnership
with Taiwanese cinema operator
In Taiwan, Citibank has extended a
partnership with Vieshow Cinemas
to offer a new paperless or QR
code ticketing service. Citibank
Taiwan first forged a partnership
with Vieshow Cinema in 2012,
making the latter's website accessi-
ble to clients via their smartphones
for ease of purchasing tickets. Dis-
counts were also made available via
Citi Mobile.
With the new service, clients who
book tickets using Citi credit cards
on their smartphones will be able
to enter cinemas directly without
having to queue up to collect their
movie tickets. Specifically, when a
client purchases tickets using a
smartphone, a set of QR codes will
automatically be generated and
stored onto the client's mobile
phone. Clients can then enter cine-
mas by simply scanning in the
codes on their mobile phones.
According to a report released in
August 2013 by Google and Ipsos
MediaCT on smartphone buying
behaviour, 37.0% of Taiwan's
smartphone users have made at
least one purchase using their
phones with 15.6% of all phone-
based purchases attributable to
buying tickets, the highest propor-
tion among the various product
categories studied. These figures
show that the growth of mobile
commerce via smartphones is on
an upward trajectory.
MasterCard launches mobile
payment solution with trio of
Egyptian partners
In Egypt, MasterCard is collaborat-
ing with EBC (Egyptian Banks
Company), Fawry and NBE
(National Bank of Egypt) for a new
mobile payment solution known as
Phone Cash. This mobile wallet is
available to both banked and un-
banked customers across Egypt
who can use the service to send
money, pay phone bills, load credit
to prepaid phones, make donations
and reserve airline tickets among
the wide range of services offered
by Fawry. Eventually, it will also be
possible to use the wallet to pay for
goods and services at several mer-
chants in Egypt and to enable users
to make e-commerce transactions
around the world.
The Phone Cash service operates
independently from the network of
any specific mobile company, mak-
ing NBE the first bank in Egypt
and the wider Middle East to pro-
vide such facility. Consumers can
download the Phone Cash applica-
tion on any mobile handset as an e-
wallet that is easily recharged with
money from any of around 20,000
Fawry outlets in Egypt, the core
function of which is to enable cus-
tomers to receive bills and to pay
them securely. NBE customers can
also link their MasterCard cards to
this application to enable money
transfers from their bank accounts
to recharge the balance of their e-
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wallets.
Etisalat ties with MasterCard
and NBE for launch of new mo-
bile wallet
Also in Egypt, Etisalat, MasterCard
and NBE (National Bank of Egypt)
have announced the launch of a
service known as Florus as a mo-
bile wallet for Etisalat's subscriber
base. This product is an early im-
plementation of the solution that
MasterCard and EBC (Egyptian
Banks Company) had introduced
already to this market and repre-
sents the world’s first ever interop-
erable Arabic mobile money pro-
gram. It uses the Etisalat mobile
network and can be deployed on
any mobile phone.
The first phase of the program al-
lows subscribers to transfer money
to anyone participating in the ser-
vice using their mobile phones, and
to load cash on their phones or
take out cash through over 100 of
Etisalat’s outlets and over 300 of
NBE’s branches across Egypt.
The second phase of the program
will allow subscribers to pay bills
through their mobile phones, to
top up their mobile prepaid lines,
and to pay for goods and services
at several merchant locations, in
addition to using the service for e-
commerce payments globally.
Italian partners join forces for
mobile payments trial
In Italy, mobile network operator
Wind and BNL, in collaboration
with SIA and MasterCard, have
announced the start of a trial in-
volving NFC technology. This al-
lows users to make contactless pur-
chases via Samsung smartphones
utilising a MasterCard credit card
issued by BNL. To utilise the ser-
vice, users simply select the
'YouPass BNL’ app and place the
smartphone against a point-of-sale
terminal enabled to accept contact-
less payments (identifiable by
MasterCard's PayPass logo).
ICICI Bank works with Movida
for mobile payment service
In India, the country's largest pri-
vate-sector bank, ICICI Bank has
joined forces with Movida, a com-
pany owned jointly by Monitise
and Visa, to launch new ways to
help its customers pay and buy via
mobile phone. In particular, the
service enables the bank's card-
holders to pay bills, to recharge
prepaid airtime and to buy cinema
tickets from their mobile phone. It
is possible for them to access
Movida either through a menu-
based USSD mobile technology or
an interactive voice response (IVR)
service in multiple languages. Card-
holders are able to make payments
through Movida’s secured connec-
tion after linking their payment
card to a mobile phone number
registered with ICICI Bank; card
account information is kept secure
by a unique PIN number. It is be-
lieved that these options make the
service easy to use, especially as
they are widely available from any
type of mobile phone, including
basic models, and can be operated
across all mobile networks using
any payment card, irrespective of
whether it carries the Visa brand or
not.
Telefónica appoints Monitise as
an official mobile payments
partner
Monitise itself has become an offi-
cial mobile payments partner for
Telefónica with a remit to develop
and manage new and existing mo-
bile payment and commerce ser-
vices for the group's customers.
Under the terms of the agreement,
Monitise will complement existing
technology partners, taking a lead
role in the development of a global
technology platform to support
payment and mobile commerce
services. The initial focus of the
partnership will be in the UK.
Monitise strikes up mobile pay-
ment deals in Canada, the UK
and the US
Other initiatives involving Monitise
in the field of mobile payments are
visible in Canada, the UK and the
US.
In Canada, it has reached an agree-
ment with co-operative financial
group Desjardins to develop and
deploy NFC mobile payment capa-
bilities to the group's members and
clients. In particular, the agreement
with Monitise will allow Desjardins
to offer its members and clients a
secure contactless mobile payment
smartphone application to be
launched in 2014. In the UK,
Lloyds Bank Commercial Banking
has stated that it will offer mobile
card acceptance solutions to micro-
merchants, start-ups and small
business owners through Monitise,
beginning in autumn 2013. Finally,
in the US, Monitise has disclosed a
partnership with Card Services for
Credit Unions (CSCU) that will
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enable this entity to offer a mobile
banking and payment solution as
part of its suite of products for the
2,600 credit unions that it serves.
Western Union concludes sev-
eral new mobile payment part-
nerships
International money transfer and
payments specialist Western Union
has announced several new rela-
tionships, with the aim of expand-
ing the availability of its services
through mobile platforms.
In the US, it has begun collaborat-
ing with U.S. Bank to offer its cus-
tomers access to money transfer
services through both online and
mobile banking. Also in the US, it
has announced that customers of
mobile networks Boost (owned by
Sprint) and Virgin Mobile USA will
have access to its mobile money
transfer services through Android
apps or through a specially opti-
mised mobile website.
In Nepal, Western Union has
forged an agreement with mobile
wallet service eSewa. This has been
developed through the collabora-
tive efforts of Western Union, its
agent Nabil Bank and FonePay, the
owner of eSewa. Specifically, con-
sumers who subscribe to the eSewa
mobile wallet have the option of
receiving a Western Union transfer
on their mobile phones, or through
eSewa’s web interface.
Finally, in Nigeria, Western Union
and eTranzact, an electronic pay-
ment processing company, have
revealed the launch of a new mo-
bile money transfer service which
will give eTranzact customers the
option of receiving Western Union
transfers through their mobile
handsets.
Sberbank acquires majority
stake in Yandex online pay-
ments business
In Russia, Sberbank has taken a
75% stake in Yandex.Money, the
online payments business of Yan-
dex, a company operating the most
widely-used internet search engine
in the country. Yandex.Money aims
to provide a convenient online pay-
ment solution for SMEs and to
make online transactions easier for
customers. As the first step to-
wards encouraging greater use of
online payments, Sberbank is waiv-
ing the commission that it formerly
charged to all bank cards for Yan-
dex.Money top-ups at its ATMs.
—————————————--
PAYMENT CARD ACCEP-
TANCE AND ISSUANCE
American Express enters into
card distribution partnership
with Wells Fargo
In the US, Wells Fargo has entered
into a partnership with American
Express under which it will begin
issuing new credit cards accepted
on the American Express network.
The bank will make the cards avail-
able on a nationwide basis by the
middle of 2014 and its customers
will be able to apply for them di-
rectly through mail, online or by
phone as well as via around 6,000
branch locations. The bank has
been conducting a pilot program in
selected areas during the third
quarter of 2013, with a full-scale
launch planned during the first half
of 2014.
Citibank, JACCS and Visa tie for
first multi-currency prepaid card
in Japan
In Japan, Citibank, JACCS and
Visa have combined to launch the
country's first multi-currency pre-
paid card. The Visa card is being
issued by JACCS and is intended
for the exclusive use of Citibank
customers who have a multi-money
account and a savings account de-
nominated in local currency.
In particular, it is characterised by a
multi-currency function that allows
the cardholder to charge four for-
eign currencies (Australian dollar,
Euro, UK pound and US dollar) in
addition to Japanese yen onto one
card. Customers who have foreign
currency in their Citibank multi-
money account can charge the pre-
paid card with foreign currency
transferred directly from the ac-
count. Moreover, they can with-
draw cash at any of around 2 mil-
lion ATMs worldwide in the for-
eign currency with which the pre-
paid card was charged.
A service that allows customers to
make direct use of foreign curren-
cies deposited in their bank ac-
count is rare and ways to utilise
foreign currencies have hitherto
been limited for Japanese residents.
However, the prepaid card allows
cardholders to make direct use of
foreign currencies in their bank
account without incurring the cost
of converting the currency to yen
or being affected by exchange rate
risk. Use of the card also minimises
risks such as over-use, loss, theft
and forgery, as it is limited to the
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amount of cash with which the
cardholder charged the card.
Separately, JACCS has announced
that it will use Gonna as a brand
name to cover its entire prepaid
card business in future, and that it
will provide a wide variety of pre-
paid card services in co-operation
with Visa.
MCB becomes the first issuer of
UnionPay cards in Africa
Mauritius Commercial Bank (MCB)
has revealed that it will begin issu-
ing cards linked to the UnionPay
network in Mauritius, marking the
first time that UnionPay cards have
been made available anywhere in
Africa. MCB is the largest commer-
cial bank in Mauritius with 47
branches in both that country plus
neighbouring territories including
Madagascar, the Maldives and the
Seychelles.
UnionPay establishes agreement
with Kyrgyzstani bank
UnionPay has also expanded its
footprint to Kyrgyzstan by means
of an agreement with Russia In-
vestment Bank (RIB) covering card
issuance, acceptance and interna-
tional remittances. Specifically, RIB
has agreed to begin issuing cards
carrying the UnionPay marquee
and is also expected to accept them
at its ATMs by the end of 2013. In
addition, cross-border remittance
services are planned, allowing local
residents to make remittances to
the UnionPay accounts of Chinese
cardholders.
UnionPay creates agreements
with partners in France and
Switzerland
UnionPay has announced the sign-
ing of agreements with both Crédit
Agricole and Société Générale in
France as well as SIX Payment Ser-
vices in Switzerland for the expan-
sion of UnionPay card acceptance
in these countries. Crédit Agricole,
one of UnionPay’s founding mem-
bers, will help to expand the pay-
ment brand's reach beyond Paris
and the French Riviera, while mer-
chants associated with Société Gé-
nérale in both France and Monaco
will begin accepting UnionPay
cards at the point of sale. Mean-
while, the deal with SIX Payment
Services should result in an expan-
sion in the number of Swiss mer-
chants accepting UnionPay cards.
By the end of 2014, it is anticipated
that UnionPay cards will be ac-
cepted by all ATMs and point-of-
sale terminals operated by SIX Pay-
ment Services in the country.
UnionPay extends its accep-
tance among international travel
and education providers...
UnionPay has also been involved in
forging a variety of other agree-
ments with the ultimate aim of
broadening acceptance of its cards
internationally.
In Korea, it has concluded deals
with BC Card and Ktis, both of
which belong to telecoms firm KT
Group, to develop consumer plat-
forms for tourism services. It is
intended that these will provide
UnionPay cardholders with various
benefits in the areas of communica-
tions, shopping and travel, includ-
ing an expedited and automated
sales tax refund service for Chinese
tourists visiting Korea using Union-
Pay cards.
In Canada, UnionPay has initiated
an international online payment
service among merchants, with
Tianbao Travel Net the first to
launch a service that will allow Un-
ionPay's cardholders in China to
book local travel products prior to
arrival in the country. Furthermore,
a separate agreement with US fi-
nancial services company Geoswift
Group aims to enable over 300
colleges and universities in the US
to accept tuition payments through
UnionPay cards.
... plus African payment process-
ing firms
In addition, UnionPay has signed
up to an agreement with South Af-
rica’s largest bank card transaction
processor, BankservAfrica, with the
aim of co-operating in the fields of
card issuance and acceptance as
well as other payment services for
the African market. Finally, in Ni-
geria, UnionPay has reached an
arrangement with bank payment
processing firm InterSwitch,
whereby all InterSwitch ATMs and
point-of-sale terminals in the coun-
try will accept UnionPay cards.
JCB creates deals to improve
card issuance and acceptance
across multiple countries
Japanese payment card brand JCB
has entered into a series of deals
across countries in Asia including
Bangladesh, Cambodia, Indonesia,
Myanmar and Taiwan, plus another
in Brazil.
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In Bangladesh, commercial bank
BRAC Bank has added JCB cards
to its merchant network, allowing
its clients to accept JCB cards for
payment. Respectively in Cambodia
and Indonesia, Singapore Banking
Corporation (SBC) and CIMB Ni-
aga have begun to both issue JBC
cards and to support its drive for
greater acceptance in those coun-
tries. In Myanmar, JCB cards will
be accepted through member
banks of the Myanmar Payment
Union, the only payment network
in the country, following an agree-
ment between the two organisa-
tions. Meanwhile, Taiwanese bank
Ta Chong Bank has become the
25th JCB card issuer in that coun-
try. Finally, Brazilian bank Caixa
Econômica Federal has stated that
it will begin to issue JCB-branded
credit cards in 2014, with debit and
prepaid cards expected to follow.
CaixaBank and Global Pay-
ments form merchant payment
services joint venture in the Bra-
zil...
Spanish financial services group
CaixaBank and payment processing
firm Global Payments have agreed
to form a joint venture to target the
Brazilian merchant payments mar-
ket, to be named Comercia Global
Payments Brazil. Global Payments
has been working with CaixaBank
since 2010 to offer payment ser-
vices to merchants in Spain, where
the two partners report holding
around a quarter of the payment
processing market. It is hoped that
the new joint venture will offer
solutions for contactless technol-
ogy, digital payments and mobile
payments.
... which rolls out mobile pay-
ment solution for small busi-
nesses as its first product
Indeed, one of the first initiatives
developed by Comercia Global
Payments Brazil is a mobile pay-
ment solution that provides cus-
tomers with a means of collecting
payments using smartphones,
streamlining electronic payments
for small businesses. Customers
can download an application to
their smartphone and then insert
the payment card into a small card
reader provided by Comercia in
which customers confirm the trans-
action with their PIN. The pur-
chase receipt is then sent to the
cardholder by email or text mes-
sage.
Watchdata combines with local
partners to launch dual currency
smart card
Singapore-based digital authentica-
tion and transaction security spe-
cialist Watchdata has disclosed that
it has supplied the first dual cur-
rency smart card for use across the
international borders of Singapore
and the Chinese province of
Guangdong. The SINO Visitor
Pass, developed jointly with
Guangdong Lingnan Pass and EZ-
Link, is being issued in both Singa-
pore and Guangdong and carries
two currencies - the Singapore dol-
lar and Chinese renminbi - which
can be used at all points that accept
either the EZ-Link card or Lingnan
Pass. It is intended that additional
functions will be added over time,
including inter-city top-up features
and the integration of e-ticketing
for a wider range of items including
goods, services and tickets for tour-
ist attractions.
—————————————--
RETAILER BANKING
Scotiabank to install ATMs in
Couche-Tard convenience
stores across Quebec
In Canada, Scotiabank's customers
in Quebec will soon be able to use
a new network of ATMs located
within 287 Couche-Tard conven-
ience stores. This arrangement will
make cash withdrawals and other
banking services available to Sco-
tiabank customers in local Couche-
Tard stores, thereby expanding
Scotiabank's overall ATM network
in Canada to more than 3,000,
which represents an increase of
8%.
—————————————--
RETAILER CARDS
Itaú Unibanco seals retailer fi-
nancial services pact with Cen-
cosud
With a focus on Argentina and
Chile, Itaú Unibanco and Chile-
based retail group Cencosud have
signed an agreement by means of
which the Brazilian banking group
will take a 51% stake in the re-
tailer's financial services operations
in those two countries. Under the
terms of the deal, Itaú Unibanco
will also finance 100% of Cenco-
sud's credit card receivables valued
at USD 1.3 billion at the time of
the transaction. The agreement is
scheduled to last for an initial pe-
riod of 15 years. Over 3 million
credit card clients in Argentina and
Affinity Banking

18
www.finaccord.com
Chile will benefit from this alliance
which may also pave the way for
development of new products and
services.
Citi Retail Services extends long
-standing private label card part-
nership with Staples...
In North America, Citi Retail Ser-
vices, a provider of commercial
credit card products, services and
solutions to retailers that belongs
to Citigroup, has unveiled a long-
term extension of its 22-year credit
relationship with Staples, a com-
pany that claims to be the world's
largest office products company
and second-largest online retailer.
By means of the agreement, Citi
Retail Services will continue to pro-
vide processing services and cus-
tomer service support for all three
of Staples' private label credit card
programs.
... and acquires Best Buy credit
card portfolio from Capital One
Also in North America, Citi Retail
Services has acquired the credit
card portfolio of Best Buy, a lead-
ing consumer electronics chain,
from Capital One. At the time of
acquisition, the portfolio included
receivables worth more than USD
6 billion and it adds to the position
of the company as a leading pro-
vider of private label and co-
branded card products to retailers
and their customers in the region.
Other relationships include those
with ExxonMobil, Macy's, Sears,
Shell and The Home Depot.
GE Capital Retail Bank secures
private label retailer card agree-
ments with three partners
In the US, GE Capital Retail Bank
has announced three initiatives in
the field of private label retailer
cards.
First, it has unveiled a multi-year
extension of its private label card
program with Baer that is available
through the home furnishings re-
tailer’s 15 outlets in Florida and
that was first created in 2004.
Secondly, it has set up a multi-year
agreement with Phillips 66, an en-
ergy company, to provide private
label card programs for consumer
and commercial customers nation-
wide. Launched at the beginning
August 2013, this contract entails
both a private label credit card tar-
geted at consumers and a branded
business revolving charge card for
commercial customers. As part of
the deal, GE Capital Retail Bank
has acquired the existing card pro-
gram assets from Citibank.
The consumer card program will
provide customers with the oppor-
tunity to earn rewards for qualify-
ing fuel purchases made at around
8,000 independently-owned Phillips
66, Conoco, 76 and Phillips 66
General Aviation locations nation-
wide. Meanwhile, the business re-
volving charge program is accepted
nationwide and provides advanced
account management, enabling
commercial cardholders to track
fuel expenses, vehicle repairs and
washes, and convenience store pur-
chases.
Finally, in conjunction with Ritani,
a firm that designs engagement
rings and fine jewellery, it has an-
nounced a multi-year agreement to
develop a private label credit card
program. The Ritani Credit Card
can be used for purchases on Ri-
tani's website, participating jewel-
lers and via its telephone call cen-
tre. Cardholders can also access
and manage their account with a
suite of digital tools, including an
online customer service centre and
mService, a mobile servicing plat-
form available on Android, Black-
berry, iOS and Windows devices.
According to research carried out
by GE Capital Retail Bank, the
availability of finance drives the
choice of retailer for 43% of con-
sumers buying jewellery.
LaSer and Système U combine
for introduction of new Visa
card
In France, supermarket group
Système U has launched the U Visa
card in conjunction with finance
firm LaSer, a specialised lending
institution co-owned by BNP
Paribas and Galeries Lafayette. The
card comes linked to Système U's
loyalty program and offers the con-
venience of payments in instal-
ments without fees. The card also
includes a contactless function for
small payments (below EUR 20).
—————————————--
Affinity Banking

19
www.finaccord.com
Achmea, 6
Adorn, 8
Aeroplan, 12
Aflac, 5
AIA, 6
ALA Insurance Brokers, 6
Alfa Romeo, 7
Alior Bank, 10
Allianz, 4, 6, 7
American Express, 10, 15
Apollo Insurance, 11
Aqua America, 4
Aria Assistance, 4
Assurant, 7
Asurion, 7, 8
Auto Italia, 7
Automobile Association of Kenya, 11
Autotrader, 6
Aviva, 6, 10
Baer, 18
Banco Popular, 9
Bank of America, 11
Bank Pocztowy, 10
Bank Zachodni WBK, 10
BankservAfrica, 16
BC Card, 16
Beazley, 4
Best Buy, 18
BGZ, 10
Blackberry, 18
BNL, 13, 14
BNP Paribas, 9, 11, 18
Boost, 15
BRAC Bank, 17
British Rowing, 6, 7
Ca’ Foscari University, 13
Caixa Econômica Federal, 17
CaixaBank, 17
Capita Insurance Distribution, 6
Capital One, 18
Carbase, 4
Card Services for Credit Unions, 14
Cardif, 9
CarGarantie, 7
Carrefour, 12, 13
Cars International, 8
Cencosud, 17
Cetelem Bank, 11
CIBC, 12
CIMB Niaga, 17
Citi Retail Services, 18
Citibank, 12, 13, 15, 18
CNV Vakcentrale, 6
Commercial Bank of Dubai, 12
Compumundo, 7
Couche-Tard, 17
Crédit Agricole, 11, 16
Credit Europe Bank, 12
Dai-Ichi Life, 9
Desjardins, 14
Direct Line, 9, 10
Discovery Holdings, 6
Domestic & General, 7
Egyptian Banks Company, 13, 14
Elite Rowing Insurance, 6, 7
Emergency Plus, 11
Equity Bank, 10, 11
eSewa, 15
Etisalat, 14
eTranzact, 15
Euler Hermes, 4, 5
Europ Assistance, 4, 9
Exchange and Mart, 6
ExxonMobil, 18
EZ-Link, 17
Fawry, 13
FGA Capital, 11
Fiat, 7, 11
Flight Centre, 9
FonePay, 15
Frontier Communications, 8
Frontier Secure, 7
Galeries Lafayette, 18
Garbarino, 7
GE Capital Retail Bank, 18
Geoswift Group, 16
Global Payments, 17
Google, 13
Grupo Espírito Santo, 4
Guangdong Lingnan Pass, 17
HDFC Bank, 12
Hino, 8
Home Emergency Insurance Solutions, 4
HomeServe, 4
HSBC, 4
ICBC, 13
ICICI Bank, 14
IKANO Group, 12
IKEA, 12
Industrial and Commercial Bank of China, 13
Ipsos MediaCT, 13
Itaú Unibanco, 17
JACCS, 15, 16
Japan Post, 5
JCB, 16, 17
Jet Airways, 12
Kenyatta University, 10
KT Group, 16
Ktis, 16
LaSer, 18
Lloyds Bank, 14
Lovat Insurance Brokers, 7
LSG, 7
LV=, 6
Macy's, 18
Manulife Financial, 9
MAPFRE Asistencia, 8
Markerstudy Group, 6
MasterCard, 11, 13, 14
Mauritius Commercial Bank, 16
Meetings & Events Australia, 4
Mercedes-Benz, 7
Michael Debono, 8
Middlesea Assist, 8
Migros, 6
Monitise, 14
Movida, 14
Münchener Verein Versicherungsgruppe, 9
Nabil Bank, 15
National Bank of Egypt, 13, 14
Navigators and General, 7
Opel, 8
Orange, 12
Panin Bank, 10
Panin Life, 10
Phillips 66, 18
Phones 4u Finance, 7
Qantas, 11
QDOS, 4
RAC, 4
RBC Insurance, 9
RBS, 10
Rennies Travel, 9
Riot Games, 10
Ritani, 18
Royal Caribbean, 11
Russia Investment Bank, 16
Safaricom, 11
Saigon Commercial Bank, 9
Samsung, 7, 8, 14
Santam, 9
Santander, 10
Sberbank, 11, 15
Schweizerische Mobiliar, 6
Scotiabank, 17
SeABank, 9
Sears, 18
Shell, 18
Singapore Banking Corporation, 17
SINO Visitor Pass, 17
SIX Payment Services, 16
Smeg, 7
Société Générale, 16
Solid Försäkringar, 8
Sprint, 15
Staples, 18
Subaru, 7
Sure Travel, 9
Système U, 18
Ta Chong Bank, 17
TD Bank, 12
Telefónica, 14
Text Book Centre, 11
The Home Depot, 18
The Warranty Group, 7
Tianbao, 16
T-Mobile, 7
Toyota, 8
Tranquilidade, 4
Travel Insurance Consultants, 9
Triumph, 7
U.S. Bank, 15
UBIFRANCE, 5
UK General, 6
UnionPay, 13, 16
Universia, 7
Vieshow Cinemas, 13
Vietcombank, 9
Virgin Atlantic, 11
Virgin Mobile, 15
Visa, 9, 12, 14, 15, 16, 18
Volvo, 6
Watchdata, 17
Wells Fargo, 15
Western Union, 12, 13, 15
Wind, 14
Yandex, 15
Zenith Insurance, 6
Organisations in this issue

20
www.finaccord.com
About GAFC
The Global Affinity Finance Club is
Finaccord’s quarterly newsletter about
affinity financial services worldwide.
Through this, Finaccord publishes top
line information about key strategic
developments in affinity and partner-
ship marketing of financial services
around the world, segmented between
affinity insurance news, bancassurance
news and affinity banking news.
This service differs from that provided
by other research companies because
its focus is genuinely global, often
translating news that only appears in
languages other than English. In addi-
tion, it concentrates exclusively on
affinity and partnership marketing
strategy.
Affinity and partnership marketing
strategy is an important component of
general distribution strategy for a ma-
jority of large banks and insurance
companies serving consumers and
small businesses as successful partner-
ships potentially allow them to access
groups of customers that they cannot
always reach by themselves.
If you would like to join Finaccord’s
Global Affinity Finance Club, contact
us by telephone or send us an email to
info@finaccord.com. Thereafter, each
quarter, we will send you a link to the
page of our website with fresh news
and future editions of this document.
About Finaccord
Finaccord is a leading market research,
publishing and consulting company
specializing in financial services. We
provide our clients with insight with a
particular focus on marketing and
distribution strategies, including affin-
ity and partnership marketing.
Our areas of expertise include: affinity
and partnership marketing; automotive
financial services; bancassurance; com-
mercial non-life insurance brokers;
consumer intelligence; creditor insur-
ance; distribution channels; extended
warranties; insurance and assistance
linked to payment cards and bank
accounts; mobile gadget and telephone
insurance; retailer financial services;
small business financial services; and
travel insurance and assistance.
Our international network of consult-
ants is able to deliver information
quickly and accurately across a range
of countries worldwide, basing re-
search projects on robust data and
knowledge rather than supposition
and theory.
© Finaccord Ltd., 2013
Registered in London No. 4542931
The Office Farringdon
24 Greville Street
London,
EC1N 8SS
Phone: +44 20 3178 2556
Fax: +44 20 7198 7902
Email: info@finaccord.com
www.finaccord.com
Does your organisation have
news about its affinity or part-
nership marketing relationships
that we missed in this newslet-
ter? To produce it, we system-
atically research close to 300
major financial services institu-
tions from around the world
each quarter. However, if you
would also like us to include
your company in this research,
please send an e-mail to analy-
sis@finaccord.com and we will
ensure that it is tracked in fu-
ture quarters.
To access the archive of news
from the Global Affinity Fi-
nance Club please visit
www.finaccord.com/afi
Finaccord’s latest published reports include:
 Affinity and Partnership Marketing in UK Commercial Non-Life Insurance GBP 1,495
 Affinity and Partnership Marketing in UK Legal Services GBP 1,495
 Aggregation Metrics: Consumer Approaches to Online Insurance Comparison Sites in Europe GBP 2,995
 Creditor Insurance in Latin America GBP 1,795
 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups GBP 2,995
 Life Bancassurance in Latin America: Protection-Related Life Insurance GBP 1,795
 Road Assistance in Europe GBP 2,995
 Small Business Segments: Marketing Business Insurance to Major Professions and Trades in the UK GBP 3,995
 Trade Credit Insurance in Europe GBP 2,995
 Travel Insurance and Assistance in the Middle East GBP 1,795

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