C$ cMoney Completes Bonfire Merger, Announces New Leadership

Having completed its merger with Bonfire Productions, C$ cMoney has named a new executive management team. With this, Lawrence Krasner is to serve as president and CEO. A veteran of the financial services industry, Krasner brings with him over 23 years’ experience to the company. In his new role, he will oversee the strategic direction of C$ cMoney, working in tandem with the Board of Directors and acting as the official spokesperson. Krasner managed the development of a multi-billion dollar capital markets integration program for a global investment bank’s private wealth management group in his previous role with CSC Consulting. He also served as senior vp and group head of an internal projects team with Lehman Brothers, managing a portfolio of global strategic initiatives.

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MOBILE PAYMENTS TO QUADRUPLE

The value of mobile payments for digital and physical
goods, money transfers and NFC transactions
will reach almost $630bn by 2014, up from $170bn this year, representing
the gross value of all purchases or the value of money being transferred.
The mobile payments report from Juniper Research revealed that growth across all market
segments was being driven by the wide adoption of Smartphones and the
increased use of apps stores. The top 3 regions for mobile payments of the Far East & China, W. Europe and
N. America will represent nearly 70% of the global mobile payment gross
transaction value by 2014. In addition SMS ticketing schemes such as
those offered by OBB Austrian Railways and Skane Traffic in Sweden were
also important developments. Shopping by mobile at stores such as Amazon
Mobile is also tipped for significant expansion over the next five years.
Vendors, retailers, merchants, content providers, mobile operators and
banks are all actively establishing new services and schemes.
However, in some areas such as NFC for example, greater collaboration is
required to establish a widely accepted business model that translates
easily into tangible services.

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GEMALTO & RZB

Gemalto announced that Raiffeisen Zentralbank Osterreich has begun deploying its innovative, end-to-end solution for customizing payment card designs securely over the Internet. Central to the program is Gemalto’s user-friendly web-based interface that lets users customize their EMV payment card with a picture of their own choice. This is the first picture card program in Austria and its commercial rollout started in early 2010. Gemalto supplied RZB with a comprehensive turnkey solution that includes the web interface, printing and personalization services. The intuitive interface enables customers to upload their favorite photograph on the bank’s website to create a unique personal card, ensuring a simple and convenient user experience. Once the picture has been uploaded, Gemalto handles image approval before the order is placed. As part of this program, Gemalto also carries out fulfilment of the card order which requires the secure handling and delivery of the card’s PIN code to the end user.

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Hypercom Posts Net Revenue Up 19.3% Y/Y

Hypercom Corporation electronic payments for 1Q/10 reported a net revenue of $98.8 million, up 19.3% compared to $82.8 million in the first quarter of 2009. First quarter 2010 net revenue declined sequentially 15.9% compared to net revenue of $117.4 million in the fourth quarter of 2009 due to normal sales seasonality. Gross profit for the three months ended March 31, 2010 increased to $34.7 million or 35.2% of net revenue from $24.2 million or 29.3% of net revenue in the first quarter of 2009. Gross margin included 37.0% product gross margin and 32.4% service gross margin, compared to 32.8% and 23.9% in the first quarter of 2009 and 34.1% and 24.7% in the fourth quarter of 2009. First quarter 2010 gross profit sequentially declined $2.1 million from $36.8 million in 4Q/09. Despite the sequential decrease in gross profit, gross margin sequentially increased from 31.3% to 35.2% as a result of a favorable product and geographic mix, contract manufacturing cost improvements and service cost improvements. Operating expenses were $31.3 million or 31.7% of net revenue, compared to $30.6 million or 37.0% of net revenue in first quarter of 2009 and $33.8 million or 28.8% of net revenue in the fourth quarter of 2009.

HYPERCOM REVENUE HISTORICAL
1Q/08: $ 71.7 million
2Q/08: $125.4 million
3Q/08: $121.1 million
4Q/08: $120.5 million
1Q/09: $ 82.8 million
2Q/09: $106.8 million
3Q/09: $101.2 million
4Q/09: $117.4 million
1Q/10: $ 98.8 million
Source: CardData (www.carddata.com)

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SAS & LOTTE.COM

Online shopping mall Lotte.com is learning more about customers and improving its targeted marketing efforts through its partnership with SAS, the leader in business analytics software and services, offers a full portfolio of customer intelligence products to customers around the world.
SAS collects Web traffic data and accurately analyzes the behavior of online customers. Using SAS, Lotte.com analyzes unique visitors, page views and additional data from the company’s various websites to understand the status of visitors and purchasers, the popularity of each category and product, plus click-through patterns, campaign results and more. The company uses results to develop more sophisticated marketing campaigns that offer shoppers what they really want, unlike conventional CRM functions that wait until customers place an order to identify buying intentions, the system analyzes what customers see and do on Lotte.com’s sites. The results supplement data about purchased products and services, and prompts Lotte.com to align service with customer demand.

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McCarran Airport Now Accepting PayPass for Parking

Las Vegas’ McCarran International Airport is now
accepting “MasterCard PayPass” contactless payments in its major parking
lots. This implementation will allow travelers to simply tap their
MasterCard PayPass contactless cards or devices at exit lanes, rather
than fumble for cash, to pay for their parking.
MasterCard PayPass implementation helps reduce airport congestion by
streamlining parking payments, thereby improving the airport experience
for travelers. MasterCard PayPass will be accepted in 64 locations,
including 31 pay stations and 33 entry/exit lanes at the airport’s four
main parking lots. Drivers simply tap their
PayPass-enabled MasterCard card or device on a specially equipped
PayPass reader. In 2009, McCarran
International Airport was the seventh-busiest airport in North America,
serving more than 40 million passengers.

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Moody’s Assigns American Express Aaa Rating

Moody’s Investors Service has assigned a definitive Aaa rating to the
senior Class A floating rate certificates
and an A2 rating to the mezzanine Class B floating rate certificates of
Series 2010-1 issued from the American Express Credit Account Master
Trust. Moody’s has also assigned a Baa2 rating to the floating rate
secured notes (Class 1) issued by the related American Express Credit
Account Secured Note Trust 2010-1. The ratings are based on the quality
of the underlying pool of credit
card receivables, the expertise of American Express Travel Related
Services Company, Inc. (long-term issuer rating of A2 with a stable
outlook, short-term rating of Prime-1) as servicer, the transaction’s
structural protections, including early amortization trigger events, and
credit enhancement levels that reflect the potential risks associated
with the floating rate payment obligations of the trust.
In rating US Credit Card ABS, performance metrics (e.g. the payment rate,
charge-off rate, purchase rate, yield) are used to calculate the median
expected loss and the Aaa proxy level, which in turn are the two inputs
used to determine a new lognormal loss distribution.

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Diebold Streamlines Alliance CU Services, Upgrades ATM Fleet

Alliance Credit Union selected Diebold to implement a complete outsourcing solution for numerous banking operations and to upgrade its ATM fleet for enhanced deposit automation to “Opteva” machines. Diebold Integrated Services outsourcing solutions will provide Alliance Credit Union self-service technology, deposit automation, currency management, risk mitigation, transaction processing with improved vendor accountability, streamlined budgeting and reduced operating costs. Diebold’s services also enable greater efficiency for the credit union, from the self-service channel to the teller line to the back office. For Alliance Credit Union, Diebold will also replace or upgrade all 12 ATMs in the credit union’s fleet, including one at each of its five California branches and four North Carolina branches, as well as three off- site ATMs.

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GCA 1Q/10 Revenue Posts -13% Y/Y

Global Cash Access Holdings reported its 1Q/10 revenue was $158.5 million, a decrease of 12.8% over the $181.7 million in revenue recorded in the same quarter last year. Revenues during the quarter were adversely impacted by the continued weakness in the gaming sector and consumer revolving credit. Operating income was $15.5 million, a decrease of 19.7% over the $19.3 million recognized in the prior year’s first quarter. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) (see Non-GAAP Financial Information below) were $19.9 million, a decrease of 17.4% compared to the same period in the prior year’s first quarter. Income from continuing operations in the first quarter of 2010 was $11.2 million, down 23.3% from the first quarter of 2009. Diluted earnings per share from continuing operations were $0.10 in the first quarter of 2010 (on 70.5 million diluted shares) as compared to $0.12 in the first quarter of 2009 (on 77.4 million diluted shares). Cash EPS were $0.17 in the first quarter of 2010, a 5.6% decrease from the $0.18 reported in the prior year’s first quarter.

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Heartland Payment Reports $411mm 1Q/10 Revenue

Heartland Payment Systems payments processing announced 1Q/10 systems revenues of $411million and GAAP net income of $14.2 million. Net revenues totaled $103.8 million, an increase of 5.4% compared to $98.5 million in year-ago period. Card processing volume for the three months ended March 31, 2010 was $14.4 billion, an increase of 7.2% compared to1Q/09, thanks to contributions from the ramp up in Discover and American Express activity, as well as growth in other SME merchant volume. In the first quarter of 2010, operating income as a percentage of net revenues was 2.5%, reflecting the economy’s impact on net revenue growth. Additionally, small and Mid-Sized merchant (SME) transaction processing volume was $14.4 billion, up 7.2% compared with 1Q/09; Transactions processed for Large National merchants of 685 million, up 6.8% compared with 1Q/09; Quarterly net revenue was $103.8 million, up 5.4% compared with 1Q/09; 94.6% of new merchants installed were on HPS Exchange compared to 91.2% in 1Q/09; and a 370 basis point sequential improvement in same store sales performance (1.5%) relative to the 1Q/09.

HEARTLAND PAYMENT SYSTEMS REVENUES
1Q/09: $372 million
2Q/09: $417 million
3Q/09: $443 million
4Q/09: $420 million
1Q/10: $411 million
Source: CardData (http://www.carddata.com)

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First Bag is Free With Amex Delta SkyMiles

American Express and Delta Air Lines have introduced free bag checking for U.S. Consumer and Small Business Gold, Platinum and Reserve Delta SkyMiles Credit Cardmembers. Starting June 1, 2010, Delta SkyMiles Credit Cardmembers will receive a free first checked bag on every Delta flight available for up to nine people in the same reservation, including the Cardmember, for total potential savings of up to $200 when flying round-trip. Cardmembers receive a first checked bag fee waiver upon check-in. First and Business Class passengers, SkyMiles Medallion members, and passengers with a confirmed Full Y Class Economy ticket may continue to check up to two bags at no charge. American Express offers several Delta co-brand Credit Cards, including the Gold and Platinum Delta SkyMiles Credit Cards, and Delta Reserve Credit Card. In addition to the new “First Bag Free” benefit, these Cards offer many features such as miles with no earning caps; double miles on all Delta purchases; Exclusive access to the Pay with Miles feature and Complimentary Delta Sky Club access for Delta Reserve Credit Cardmembers.

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