FinTech 100 Ranks Diebold #4 for ATMs

Diebold was ranked number four in the 2009 global FinTech 100 ranking of service providers to the financial services industry.
The FinTech 100 ranking, developed in conjunction with American Banker,
Bank Technology News and research firm IDC Financial Insights, seeks to
recognize companies for their overall contributions to the financial
services industry through products, technologies and services, rather
than ranking them by quantity of products shipped. The ranking drew from
two major categories: financial technology companies that derive more
than one-third of their total global revenue from the financial services
industry; and enterprise technology companies, those horizontal
technology companies that sell and support multiple industries.
According to a recent Aite Group report, “Building a Better ATM Channel:
Who Said it Would be Easy”, a survey of 23 of the top 80 U.S. banks
reports Diebold ranks first in number of U.S. deployments among surveyed
banks. In the same study, Diebold also leads for software deployments and ATM
servicing share, among surveyed banks.

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EZIO CLASSIC

Serbian-based Banca Intesa has selected the Gemalto “Ezio Classic”
reader to secure e-commerce services. Customized with Banca Intesa’s
visual corporate identity, the “Ezio Classic” allows users to make
online purchases with the security level guaranteed by the EMV banking
card while protecting them from “card non present” fraud in e-commerce.
Gemalto deploys one of the world’s first smart-card based strong
authentication solutions used for securing e-commerce. By inserting
their banking card into the reader and enter their PIN code on the
keypad, “Ezio Classic” generates a One Time Password they type in to
securely make e-commerce purchases, allowing shoppers to buy a wide
variety of goods with the highest level of security.

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First Data Finds Gift Card Volume Rising 7%

The total dollar value of gift cards have grown 7% while the total dollar value of gift cards activated have grown 4.4% Y/Y. The number of gift cards activated grew modestly by 2.3%, consistent with First Data’s forecast for the holiday season, while the average gift card amount was up 2% Y/Y. Restaurant gift cards, which tend to be purchased in smaller denominations, made up a larger percentage of all cards activated this week compared to last week.

GIFT CARD $ AMOUNTS 08/09 %-/+
ALL CARDS: 31.48/32.10 2.0
BF WEEK: 36.83/39.50 5.7
SPECIALTY: 43.87/45.77 4.3
RESTAURANT: 18.20/18.35 0.8
Source: First Data

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Movitas Acquires PhindMe Tool

PA-based mobile marketer Movitas has acquired web tool provider PhindMe. The PhindMe
platform includes mobile communication and marketing solutions for
marketing agencies, optimized for all browser-based mobile devices, and
a direct-to-business mobile solution, branded “Everywhereigo”. The
acquisition enhances the capabilities of Movitas, a provider of
real-time mobile communication, marketing and commerce solutions for
location-centric businesses.
Movitas solutions include content management,
messaging, commerce, logistics, workflow, and internet based
administrative tools that can integrate into property management (PMS),
central reservation (CRS) and point of sale (POS) systems.

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U.S. Consumers Paying Credit Cards Over Mortgage

After historically disclosing the mortgage as the bill always paid
first, U.S. consumers are now ranking credit cards as a higher repayment
priority. The most recent research demonstrates US consumers are now
placing their mortgage payments as a second-rate priority. The research,
collected from a survey of 430 credit card users conducted in October
2009 conducted by Auriemma Consulting Group’s Cardbeat, ultimately
concludes credit has become tighter. With issuers more willing to cut
credit lines, cardholders are more astute one missed or late payment can
trigger rate increases or account closure. At the same time, ACG
concludes mortgage foreclosures have become common and many consumers
have ‘underwater’ mortgages for more than the current value of their
home, thus it’s more important to be current on credit cards than
worthless mortgages.

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InComm to Offer Western Union GoCash

Western Union has teamed with GA-based prepaid card provider InComm to offer the
“Western Union GoCash” in-lane prepaid money-transfer service.
The InComm agreement builds upon Western Union’s prepaid go-to-market
strategy in the United States, and complements Western Union’s consumer
experience by giving consumers the convenience of being able to pay for
a domestic or global money-transfer while shopping at select locations.
With the GoCash service, consumers will have the option to select any of
three prepaid amounts ranging from $50; $100; and $200. GoCash can be
purchased for both domestic and international money transfers. Once
purchased, the sender will need to complete the transaction over the
phone through a Western Union customer service representative and
provide the money-transfer information to the receiver.
InComm partners with more than 150,000 retail locations. Through its
relationship with InComm, Western Union can offer the convenient GoCash
service to consumers through many of these grocery and convenience
stores, pharmacies, or mass merchandiser locations.

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MasterCard Advisors Names a New President

MasterCard has tapped Kevin Stanton to serve as president of MasterCard Advisors.
In his new role Stanton will be responsible for driving the overall
competitive and differentiated products and services offered through
MasterCard Advisors. He will have global oversight of the regional
Advisors teams, as well as the three practice areas, including:
Marketing Services; Information and Analytics; and Risk, Fraud and
Operational Efficiency; as well as its high-impact strategic consulting
services. For the past five years Stanton served as president of the Canada
region, where he was responsible for the strategic planning and business
performance of all aspects of the company’s Canadian operations. Prior
to that, Stanton was senior vice president, Strategy and Market
Development in Canada, and held positions of increasing responsibility
in MasterCard’s law department, including serving as vice president,
senior counsel, and North America Region counsel.
MasterCard Advisors provides payments consulting, information,
analytics, and customized services to financial institutions and their
merchant partners worldwide.

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New Discover Survey Shows a 15% Holiday Decline

Shoppers are planning to spend 15% less on holiday gifts compared to last year while 48% of shoppers who plan to spend less blame the economy, but 80% are nonetheless keeping spirits high. The findings, made available through the Discover Financial Services annual “Holiday Shopping Survey,” also show shoppers plan to spend $723 on holiday gifts, compared to $831 in last year’s survey and $896 in the 2007 survey; Women plan to spend $742 while men will spend $702; 47% plan to spend between $100 and $500 this holiday season; 25% anticipate spending anywhere from $500 to $1,000; 43% of shoppers plan to spend less this holiday season; 63% are very concerned, concerned or somewhat concerned about their finances down from 74% Y/Y; and 66% plan to stay within their holiday shopping budget.

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DCS Cards Intros EMV Smart Start

Instant card issuer Dynamic Card Solutions has introduced “EMV Smart Start” bundled suite of
software and services for card issuers who want to issue EMV
credit and debit cards. The company developed EMV Smart Start to help
those financial institutions who are not currently offering EMV cards
the ability to easily issue them instantly in branches or centrally in a
back-office location. In addition to delivering the CardWizard software and associated
hardware, DCS will help educate and provide comprehensive consulting
services. DCS’ EMV Smart Start eliminates dependence on a third-party
service bureau so that issuers will be able to produce and deliver EMV
card offerings quickly, conveniently and more cost effectively on their own.

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Social Media is Influencing Holiday E-Sales

For the holiday season-to-date, nearly $16 billion has been spent online, marking a 3% increase versus the corresponding days last year. The most recent week ending December 6th reached $4.6 billion in holiday spending, heavier than any individual spending week in 2008 but still below two individual weeks in 2007. comScore says the week began with strong weekday spending, led by $887 million on “Cyber Monday,” but
ended on a softer note with negative year-over-year growth rates during the weekend. According to the most recent survey, conducted on Dec. 4-7, 2009, 28% of those who have begun their holiday shopping this season indicated that social media has influenced their purchases.

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Equifax Unveils an Ability to Pay Package

Equifax has introduced a new product suite for credit issuers and lenders to assess consumers ability to pay. Equifax enables a timely and holistic view of consumers’ “ability to pay” by offering specific measures to complement a firm’s own risk management data and strategies. Firms can take advantage of these solutions today, including: the “IXI Ability to Pay Index and the Credit Capacity Index; Income and Employment Verification with The Work Number Income: Employer provided, verified income at the individual level and “IXI Income360”: Estimated total household income including income from wages and income generated from invested assets, continuous up to $2M; “Equifax Personal Income Model”: Estimated individual income; “Equifax IRS Direct”: Verify income using the IRS’s Form 4506-T; the “Equifax Credit Report”
and the “IXI Discretionary Spending Index and Discretionary
Spending Dollars”: Estimated household discretionary spending,
exclusive of non-discretionary expenses, provided as a dollar amount or
index. The suite also provides analytic evaluation of more than 100 debt and income relationships, real time or batch delivered.

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