MASTERCARD 2Q/09

Citibank, under contracted partnership with AIG Europe Hungarian Branch
Office, is allowing credit card customers to now apply for its
Individual and Family “Cancer Insurance Plans.” “Cancer Insurance Plans”
offers substantial coverage through a single payment, monthly income
payment of up to 12 months and a single surgery payment with fees
ranging from HUF800-16,700, depending on the customer’s age, selected
option and plan. The Family Plan grants spouse and children living in
the same household coverage benefits while upgrades available, depending
on payment options, provide income payments of 50 thousand or 100
thousand forints per month. The surgery payment can be 200 thousand or
400 thousand forint. All Citibank credit card holders aged 18 to 55 are
eligible to apply.

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LUOTTOKUNTA & ACCENTURE

Accenture and Finland-based Luottokunta card payment services have
signed five-year application outsourcing contracts. The agreement will
increase Luottokunta cost efficiencies and improve customer service by
consolidating application development and maintenance. Supporting
Luottokunta’s services, Accenture will also develop, implement and
maintain its business and Web applications, focused on making overall
operations more flexible and scalable Accenture global management
consulting, technology services and outsourcing company. Accenture
employs 177,000 people serving clients in more than 120 countries and
generated net revenues of US$23.39 billion for the fiscal year ended
Aug. 31, 2008. Luottokunta card payment company manages more than 60
different card schemes, and acquiring and payment transaction processing
services and generated 2008 Mastercard and Visa card sales of EUR15.3
billion.

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Credit Unions Fail to Tap Into Gen Y

As large commercial financial institutions continue to restructure and
stabilize their business models, unique challenges in the credit union
industry pose threats as well as untapped opportunities for growth. Key
to improving their presence is tapping into the younger, “Gen Y”
customer to build a thriving member base. An impact study by Aite and
the Credit Union Executive Society reveals that while more than 85% of
credit unions enjoyed an increase in deposits and 70% have lured new
members away from the larger commercial banks, 70% have indicated they
were “challenged” by loan charge offs and delinquencies. Mergers and
acquisitions have provided a life line for credit unions, with 69%
including M&A as part of their strategic plan. However, it is in
developing awareness to younger customers that will be the most
challenging opportunity to the future growth of credit unions, with 55%
of respondents finding significant challenges in growing the member base
and a graying of its current customers. Currently, 50% of credit union
members are seniors and “Baby Boomers” with 18% of “Gen Y” not knowing
what a credit union is.

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G&D America Hires a New President

Giesecke & Devrient has named Scott Marquardt, previously VP of Sales at
SVTC Technologies, as its new president of Giesecke & Devrient America.
Marquardt will play a key role as G&D
looks to grow its business in banknote processing and security solutions
for the mobile world. Marquardt joins G&D from SVTC Technologies, a
spin-out from Cypress Semiconductor, where he was the Vice President of
Sales, Marketing & Strategic Business Development. He was previously
with NXP Semiconductors, Royal Philips Electronics and Apple Computer,
Inc.
G&D is a global market leader and pioneering innovator in banknote and
banknote paper production and processing, smart card
solutions for telecommunications and electronic payment, and security
documents and identification systems.

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Survey Identifies Value Hunter Shift

The results of a new study reveal that the numbers of online shoppers,
known as “value hunters” has increased in the past year. The evolution
from “recession shopper” to “value hunter” means that consumers who were
previously defined as “more likely to buy” online are now looking for
value to determine what, and where, they will make their online
purchase. Specifically, the research found that: 72% of “value hunters”
look for the best value regardless of brand, 51% look for incentives
when making online purchases and 63%) have purchased something online
they wouldn’t have normally because of a special offer. In addition,68%
of online shoppers search for value in the form coupons and special
promotions, 45% of “value hunters” purchase something online
once a week or more with 47% of those shoppers preferring to shopping
online to shopping
in-store and 22% of shoppers plan to make more purchases online this
year compared to last year.The study was conducted by Penn, Schoen &
Berland Associates, Inc in partnership by marketing network provider
LinkShare and gsi interactive.

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VISA 2Q/09

Canadians gearing up for the 2009 school year are planning to spend an
average of $310 on their pre-schooler-12th grader. Throughout the year,
they are also planning to spend an additional $406 on school-related
incidentals, for which 71% reportedly have not budgeted for, while 64%
plan to use debit and/or cash as their method of payment. The Scotiabank
Study, which was conducted through 1,000 online surveys among a random
sample parents with children 17 and under, demonstrates this is a
reliable time of year for retailers. This is especially true in Quebec
where parents plan to spend an average of $399 on back-to-school
shopping, whereas in Ontario they anticipate on spending only $266. In
Alberta, however, parents anticipate spending $471 on incidentals
throughout the year, the highest in any of the provinces.

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V/MC Debit Card Accounts Gain 16% in 2Q/09

While the number of U.S. credit card accounts for Visa and MasterCard continues to erode, the number of debit card accounts has soared by nearly 16% over the past twelve months. CardData reports 366 million debit card accounts for the second quarter, compared to 358 million in the first quarter and 316 million for 2Q/08. Visa added 14 million debit card accounts in the first quarter and is expected to gain about nine million in the second quarter. (Visa will release official Q2 figures in late October.) At the end of the first quarter Visa had 241 million debit card accounts. MasterCard debit card accounts declined by one million in the second quarter after peaking at 117 million in both the fourth and first quarter. For complete details on Visa and MasterCard performance visit CardData (www.carddata.com).

U.S. DEBIT ACCOUNTS
(Visa and MasterCard)
2Q/08: 316 million
3Q/08: 326 million
4Q/08: 344 million
1Q/09: 358 million
2Q/09: 366 million (projected)
Source: CardData (www.carddata.com)

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Tim Hortons Accepting MC PayPass

QSR Tim Hortons is now accepting MasterCard PayPass at more than 400 U.S.
locations. Tim
Hortons now enables its U.S. customers to make their purchases by simply tapping their
MasterCard PayPass card or device at checkout, for faster transactions,
greater payment flexibility and less time spent waiting in line, in addition to accepting traditional magnetic-stripe cards.MasterCard
PayPass also does not require customers to sign receipts for purchases
under $25, further speeding up the transaction.
Tim Hortons first began
accepting MasterCard PayPass in many of its 3,000 stores in Canada in 2007. Tim
Hortons has
3,475 systemwide restaurants, including 2,939 in Canada and 536 in the
United
States.

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Balance Transfer Approval Rate Drop

CT-based Credit Card Depot reports that approval rates for consumers seeking balance transfers has declined by 20% since July and an astounding 55% since May. Much of the decline in
approval rates can be attributed to increased approval requirements
imposed by major credit card companies. However, both credit limit
decreases as well as account closures may be playing a large role in the
declining approval trend, as consumers who may have qualified before a
substantial change in their credit history, such as an account closure,
are now failing to meet enhanced application requirements. As credit card companies rushed
to increase interest rates before the August 20th implementation of the
first new credit card regulations, many also increased application
criteria for consumers seeking 0% balance transfers. Additionally, many
credit card companies continued to increase minimum monthly payments by
as much as 250% for some consumers, creating a large group of consumers
who seek, but are unable to obtain low rate balance transfer deals.

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JUNE LEI

The Conference Board Leading Economic Index (LEI) for Mexico increased
for the fourth consecutive month by 2.3% while the Conference Board
Coincident Economic Index (CEI) decreased 0.2% in June. With the 2.3%
increase for the month, The Conference Board LEI for Australia now
stands at 104.5 (2004=100), which decreased 0.9% in May, decreased 0.2%
in April and decreased 4.3% since December, while the CEI now stands at
at 104.5 (2004=100), which decreased 0.9% in May, decreased 0.2% in
April and decreased 4.3% since December. LEI results for the month were
attributed to positive gains in US refiners’ acquisition cost of crude
oil, the industrial production construction component, net insufficient
inventories, the (inverted) federal funds rate, and stock prices while
the inverted real exchange rate decreased in June.

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SCA Offers LEAP Members CSCIP Info

The Smart Card Alliance has released new training materials for its LEAP members to
prepare for Certified Smart Card Industry Professional certification.
CSCIP is a standardized certification program that recognizes
professionals that have advanced levels of smart card industry knowledge
and experience, and have passed a multi-part exam developed by leading
smart card industry experts. The Smart Card Alliance’s new CSCIP Smart
Card Technology and Applications Training Course Modules include more
than 300 pages of text, charts, and graphics, assembled to serve as the
primary review materials for the CSCIP certification exam. The Leadership, Education and Advancement Program
(LEAP) is a new individual membership option offered by the Smart Card
Alliance open to all individual professionals working in the smart card
industry in the United States and worldwide, regardless of whether their
organization is a current member of the Smart Card Alliance.

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The Mayo Selects PAR SMS’ POS System

OK-based The Mayo Hotel has selected PAR’s SMS|Host Hospitality
Management System”. The SMS|Host Hospitality Management System offers
The Mayo the ability to manage both the hotel and residences from one integrated system. The SMS|Host product suite, including more
than 20 seamlessly integrated, guest-centric application modules,
provides hotel/resort staff with the tools they need to personalize
service, exceed guest expectations, and increase revenue.
Using the SMS|Multi-Property Management module, guest and other property charges
can be directly posted to a resident’s account. PAR’s EverServe 6000, the newest POS hardware platform from PAR, has
been chosen for the retail and food and beverage outlets.
Fully-integrated into the SMS|Host hospitality management system, the
Mayo will utilize SMS|Touch Fine Dining and SMS|Retail Point-of-Sale in
these outlets.

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