VISANET 3Q/09

VisaNet has release its results for 3Q/09. Highlights for the period
show transaction Financial Volume rises 21.3% YoY to R$ 54.2 billion;
Net Operating Revenue grows 28.0% to R$924.4 million YoY; Adjusted
EBITDA of R$626.6 million, 37.9% up on 3Q08; and 7.9% up when compared
to 2Q09; Adjusted EBITDA margin of 67.8%, expanding 4.9 p.p. over 3Q08;
when compared to 2Q09 increased 0.5 p.p.; Net Income increases 34.8% to
R$396.7 million YoY; 8.7% up on 2Q09; and more than 1.6 million
affiliated merchants covering 97.5% of Brazil’s municipalities.
Additionally, VisaNet won the award for “Best Specialized Services
Company in Brazil” for the fourth straight year in the annual Valor 1000
ranking published by the newspaper Valor Economico.

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Star Network Launches ATM/POS Prepaid Reloads

First Data’s “STAR Network” has become the first EFT network to launch, load and reload support for “STAR”-branded general purpose prepaid cards. The expanded transaction set includes activation, load/reload and split tender purchases – with PIN-security and the associated reduction in fraud built in. The new “STAR RELOAD” service icon denoting load/reload card capabilities will be displayed with the “STAR” brand on participating cards, merchant POS and ATM locations. The “STAR Network” has supported general purpose prepaid programs with PIN-secured ATM and POS transactions, and with its biller-direct payment service for many years. “STAR” has more than 2 million retail and ATM locations in the USA.

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CARD VOLUME

CARTES & IDentification is inviting Russia
as its guest of honor recognizing its significant economic growth over
recent years. This growth has seen 123 million payment cards for private
individuals in circulation in 2Q/09, a 10% growth Y/Y, and with it has
come the obligation of retailers since 2006 to acquire new payment
terminals to accept the cards. Exhibitors and visitors will be the focus
of this CARTES & IDentification through dedicated conferences and visits
by delegations. With 194 million mobile phone subscribers in the first
quarter of 2009, the Russian market is the third biggest in the world
after China and India, is experiencing the highest growth of more than
15% in 2008 and has a 130% penetration rate, among the highest in the
world.

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MAESTRO & GIROPAY

With more than 80% of all purchases still paid for with credit card, the
market shares of Maestro and giropay are again rising in European
e-commerce. Maestro is on rank three of the preferred online payment
methods in Europe. Visa is used for more than 70% of all online
transactions paid for by credit card. While men use credit cards for
more than 40% of their purchases, making it their preferred payment
method, women continue to use the more traditional direct debit method.
In contrast to other research, this study on “Trends in E-Commerce
Purchasing and Payment Behaviour” is not based on the analysis of polls
and surveys, but on a sample of roughly 30 million real-life purchase
transactions processed via the platform of Deutsche Card Services.
Conclusions show giropay and Maestro establish as new online payment
methods; modern online payment methods are preferred for high
transaction values; Visa again increases its market share; and the redit
card has become most important for German men.

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ACI & BELL ID

ACI Worldwide electronic payments software and solutions has entered
into an exclusive agreement with Bell ID allowing it to license the Bell
ID “ANDiS” suite of products for smart card management to financial
markets and retailers. Bell ID will continue to develop “ANDiS” from its
Dutch headquarters, including the “ANDiS Card and Application Management
System” (CAMS), which supports embossing file import, data preparation,
personalization, EMV script management, and central or in-branch
issuance, and the ANDiS Key Management System” (or KMS), which allows
users to define, maintain, and store cryptographic keys. The “ANDiS
Script Delivery System” (or SDS), meanwhile, supports the distribution
of scripts to control or change card attributes remotely.

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Encore Capital Group’s Q3 Net Income Triples

Debt collector Encore Capital Group posted a 29% increase in gross collections for the third quarter of $125.7 million. Net income was $9.0 million, compared to net income of $3.0 million in the same period of the prior year. Investment in receivable portfolios was $77.7 million, to purchase $2.2 billion in face value of debt, compared to $66.1 million, to purchase $1.8 billion in face value of debt in the same period of the prior year. Revenue from bankruptcy servicing was $3.9 million, a 3% increase over the same period of the prior year.
During the third quarter, ECG settled a pending legal dispute with Jefferson Capital Systems and its parent, CompuCredit. Under the terms of the settlement, all of the parties’ obligations relating to the purchase and delivery of accounts under a 2005 deal were satisfied through Encore’s purchase of a large portfolio of charged-off credit card accounts on commercially reasonable terms and the resumption of the balance transfer program with Jefferson Capital. For more details on Encore Capital’s third quarter performance visit CardData (www.carddata.com). (CF Library 9/9/09)

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XCELLINK PATENTS

Xcellink International patented mobile payments & banking platforms has
confirmed issuance of patents in Australia (number 731121) and New
Zealand (number 334917) titled ‘Automated Electronic Funds Transfer
System and Method’ to cover the automated data interchange. The
automated data interchange is designed to achieve transactions between
customers and merchants over local wired or wireless links. This
development allows Xcellink International uniform patent protection
across the Country to facilitate a regional opportunity allowing
providers of payments services who wish to automate consumer-based
management systems with the use of a local link with a single license
arrangement for the Xcellink method. This ultimately allows merchants,
banks, financial institutions, mobile carriers and utility providers to
address the key issues of security and inter-operability with existing
systems and meet consumer demands for control & security, operational
simplicity, lower transaction costs and location independent access.

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SEPT DEBT

Credit card outstandings remained flat in September, declining
GBP 300 million on an adjusted basis. On a reported basis, year-on-year growth was down 269 basis points, compared to 14 basis points in August. According to the The Bank of England, net credit card debt was GBP 54.1 billion in September, compared to GBP 55.6 billion for September 2008. However, the current figure is inflated by GBP 600 million due to a de-securitization. Total net lending to individuals rose by GBP 700 million in September. The twelve-month growth rate remained at 80 basis points and the three-month annualized growth rate increased 10 basis points to 30 basis points. Consumer credit fell by a net GBP 300 million, below the previous six-month average. The annual growth rate of consumer credit continued to fall, to 50 basis points.

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AARP’s LifeTuner Focuses on Young Adults

AARP’s LifeTuner initiative has released the results of a survey “Personal Finances: The Final Frontier of
Social Media,” is based on a national survey of 1,002 young adults aged 18-34 that suggests a general reluctance to discuss money with friends and family could have a negative impact on their
financial futures. The report revealed 57% of young Americans consider their financial situation to be
the biggest concern in their lives; 66% rate their own financial situation as fair to poor, and
43% expressed concerns about their ability to make sound financial decisions; 78% have debt of some
kind with 36% reporting credit card debt, considered “bad debt” by most financial experts as by far the
most prevalent form; 68% of respondents admit that finances have caused stress in a
relationship or friendship. While social media sites have
lowered or eradicated the social boundaries around certain topics, finances remain
a taboo subject. People are more likely to discuss relationship status
(61%), politics (43%), their health (23%), and their weight (20%) than their
financial situation. However, among those young adults who have sought advice online, 85%
report being more confident about their ability to manage their finances.

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Xmas eCommerce Spending Projected to Rise 24%

According to the “eBillme Online Spending Index” eCommerce retailers can expect a surge in
consumer spending during Q4 2009 on average of $281 online, a 24% increase over last quarter.
However, while this represents the first increase in spending since last year, it is an 18% decrease in
the overall spending rate as compared to Q4 2008. Consumers were also surveyed about projected holiday spending this year.
Eleven percent of respondents plan to do most of their holiday shopping
on Cyber Monday, while 48 percent plan to avoid Black Friday shopping in
favor of shopping online. And when it comes to how much consumers plan
to spend this holiday season, 27 percent anticipate that they will spend
more online this year for holiday gifts as compared to last year.
The survey is conducted by Javelin Strategy & Research and released quarterly by eBillme.

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Confidence Index Resumes a Downward Trend

The Conference Board Consumer Confidence Index now
stands at 47.7 (1985=100), down from 53.4 in September.
“The Present Situation Index” decreased to 20.7 from 23.0 last month along with “The Expectations Index” declined
to 65.7 from 73.7. Consumers’ assessment of current conditions worsened in October with those
claiming business conditions are “bad” increased to 47.1% from 46.3%, while those claiming conditions are “good” decreased to 7.7% from 8.6%.
Consumers’ appraisal of the labor market was also bleaker. Those
claiming jobs are “hard to get” increased to 49.6% from 47.0%, while those
claiming jobs are “plentiful” decreased to 3.4% from 3.6%. Consumers
anticipating an improvement in business conditions over the next six months decreased
to 20.8% from 21.3%, while those expecting conditions to worsen
increased to 18.3% from 14.6%. The percentage of consumers
expecting more jobs in the months ahead declined to 16.3% from
18.0%, while those expecting fewer jobs increased to 26.6%
from 22.9%. The proportion of consumers expecting an increase in their incomes decreased
to 10.3% from 11.2%.

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