DOCOMO M-TRANSFERS

NTT DOCOMO plans to launch on July 21st a new service that will enable an individual subscriber to use their DOCOMO mobile phone to remit money to another DOCOMO user. Customers of DOCOMO’s “i-mode” mobile Internet service on the “FOMA” 3G network will be able to remit up to 20,000 yen (about 208 U.S. dollars) per transfer. The payee receives a mail notification via their DOCOMO mobile phone and is given the option of depositing the money in a domestic bank account or having the amount credited to their monthly DOCOMO phone bill. The payee can receive remittances totaling up to 200,000 yen (about 2,080 U.S. dollars) per month. DOCOMO’s mobile remittance service does not require the payee to register for the service or open a new bank account.
In addition, since the payer basically only requires the payee’s phone
number to make the remittance, the payee does not have to divulge any private banking details. The charges per payment (including consumption tax) will be 105 yen for the payer and 65 yen for the payee. The payee is not charged, however, if the remittance is deposited into a Mizuho Bank account or credited to their monthly DOCOMO phone bill.

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SIBYLLA & TOREX

Sibylla has selected Torex to deliver a new POS system. By the end of the year, Sibylla will install “Torex OSCAR POS,” an integrated, store and central management suite, in 220 outlets throughout Sweden.
Sibylla is owned by Nordic Fast Food. “Torex OSCAR POS” will give Sibylla real-time visibility, control and analysis of its business operations from the checkout through to stock and pricing control, down to profit centre level, and multi-branch management. The Torex solution will help Sibylla to handle transactions quickly and efficiently, manage sales and stock accurately, and provide the highest levels of customer service. It also offers special functionality to support customer loyalty programs. The deal is value at 775,000 euros.

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PAYPASS PROGRESS

The number of “MasterCard PayPass”-enabled cards and devices has soared by 62% over the past year after more than doubling between 2Q/07 and 2Q/08. The number of global merchants accepting the contactless payment option has grown by 46% during the same period. At the end of the first quarter there were 55 million “MasterCard PayPass” cards and devices in use worldwide, compared to 28 million for 1Q/08. At mid-year 2009 it is estimated there are 60 million “MasterCard PayPass” cards and devices, compared to 37 million for mid-year 2008 and 17 million for mid-year 2007. At the end of the first quarter there were 146,000 global merchants accepting “PayPass.” MasterCard reports that the top merchants that have received a visit from a new customer because of their “PayPass” acceptance include quick-service restaurants (20%), pharmacies (17%), and supermarkets (13%). A 2009 survey found that 77% of consumers that have a “PayPass”-enabled card or device use it as their primary form of payment, which demonstrates its ability to bolster relationships for financial institutions with cardholders. (CF Library 3/19/09)

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DEXXIS ISSUANCE

InterSwitch secure payments has deployed the Gemalto “Dexxis Instant
Issuance” solution, and the corresponding computer software, to
accelerate chip migration for Nigerian payment acceptance. “Dexxis
Instant Issuance” allows for out on-the-spot personalization chip card
delivery through the Gemalto clients’ bank branches and is part of the
initiative for 25 InterSwitch member banks to replace nearly 30 million
magnetic stripe cards over the next few years. This offers banking
customers the opportunity to leave the branch with their card for
immediate use rather than having to wait an average of two weeks.
Gemalto digital security had 2008 annual revenues of EUR1.68 billion and
employs 10,000 through its 75 offices in 40 countries around the world.

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DATA SECURITY

According to international research, 73% of consumers surveyed in the
United States, France and Great Britain require more stringent industry
standards before trusting credit card transactions, 46% are concerned
security breaches when using payment cards and 84% lamented companies
having incurred a data breach should make the incident public. The
research, gained obtained with the survey of 1,030 consumers (407 UK,
303 USA, and 320 France), also showed 65% are often or always concerned
about Internet fraud while 43% of those having experienced data
intrusion believe it happened online. The survey was conducted by the
Secure POS Vendor Alliance (SPVA) non-profit business organization while
its respondents averaged 40 years of age, 49% of which were female and
51% were male. SPVA was established by Hypercom, Ingenico and VeriFone
payment technology companies to focus on standardized implementation of
existing security standards, security of the payment device lifecycle
and security threat analysis and intelligence.

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BLUE BAMBOO & AT&T

AT&T Certified Solutions Catalog has listed Blue Bamboo e-payment
solutions’ “Pocket POS” mobile payment applications. Boasting savings of
between 30 % – 70 % in transaction fees through swiped retail rates and
reduced charge backs, the application includes Bluetooth enabled P25-M
receipt Printer and card reader with Master Key/Session Key and DUKPT
security protocols for wireless payment transactions using a mobile
handset, PDA or laptop. The AT&T certification indicates Blue Bamboo and
its “PocketPOS” have met the standards of a secure, reliable major
mobile carrier and confirming it will not install spyware or viruses.
Blue Bamboo designs and markets faffordable products for the POS
terminal and peripherals industry.

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INVERSORA & INTERDINCO

American International Group has inked agreements to sell 100% of
ownership interests in its consumer finance operations in Colombia
(Inversora Pichincha and Interdinco) to Banco Pichincha C.A. of Ecuador
under undisclosed terms. Subject to approval by the Ecuador
Superintendency of Finance (Superintendencia de Bancos y Seguros de la
República del Ecuador) and the Colombia Superintendency of Finance
(Superintendencia Financiera de Colombia), the transaction is underway.
Inversora Pichincha consumer finance products offers vehicle financing,
personal loans, student loans, insurance premium financing, commercial
loans, credit cards and retail deposits while Inversora Pichincha has 19
branches across Colombia, serving approximately 140,000 customers. AIG
insurance and financial services has operations in more than 130
countries and jurisdictions around the world.

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VISANET IPO

Visa International has sold 136,478,372 shares of Companhia Brasileira
de Meios de Pagamento (“VisaNet do Brasil”) for the latter’s IPO,
proceeds of which total approximately US$1 billion. Half of these
proceeds the Company will retain after applicable taxes, posting a GAAP
gain for 2Q/09 ended June 30, 2009 of approximately $235 million. The
Visa book value of $535 million is comprised of a cash investment of $18
million made in April 2008 and $517 million recorded through GAAP
purchase accounting treatment as part of its reorganization. Visa retail
electronic payments network providing processing services and payment
product platforms for acceptance in more than 170 countries.

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Visa and Courtyard by Marriott Intro a Promo

From now until mid-September, guests who book a weekend stay at a
Courtyard Marriott have an extra incentive to do so. For a Friday or
Saturday night stay between the dates of July 2 and September 13, 2009,
the Hotel has partnered with Visa to offer guests a $20 Visa Gift card,
accepted anywhere Visa is accepted. Already offering guests healthier
food options, free Wi-Fi and “GoBoard” technology, this development is
part of Courtyard Hotels’ initiative to reinvent itself and the guest
experience as a perfect hotel choice for weekenders. Participants must
book through www.courtyard.com/giftcard and enter promotional code ‘CYS.’

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Glimmers of Economic Hope Slowly Diminish

A major monthly index has discovered that consumer economic confidence
retreated in June. The Conference Board “Consumer Confidence
Index” now stands at 49.3, down from 54.8 in May. The “Present Situation
Index” decreased to 24.8 from 29.7. The “Expectations Index” declined to
65.5 from 71.5 in May. Consumers’ short-term outlook also waned in June.
Consumers anticipating an improvement in business conditions over the
next six months decreased to 21.2% from 22.5%, while those expecting
conditions will worsen increased to 20.2% from 18.0% in May. The job
outlook was also more pessimistic. Those anticipating more jobs in the
months ahead decreased to 17.4% from 19.3%, while those anticipating
fewer jobs increased to 27.3% from 25.6%. The proportion of consumers
expecting an increase in their incomes declined to 9.8% from 10.8%.
The CB concluded that the current readings continue to imply that
economic conditions, while not as weak as earlier this year, are
nonetheless weak.

Consumer Confidence Index
Jun 08: 50.4
Jul 08: 51.9
Aug 08: 58.5
Sep 08: 61.4
Oct 08: 38.0
Nov 08: 44.7
Dec 08: 38.6
Jan 09: 37.4
Feb 09: 25.3
Mar 09: 26.9
Apr 09: 40.8
May 09: 54.8
Jun 09: 49.3
Source: The Conference Board

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STOPSTICKINGITTOUS

The StopStickingItToUs Coalition, representing over 250,000 Canadian
merchant businesses, is commending the Standing Senate Committee on
Banking, Trade and Commerce for its report recommending fundamental
changes to Canadian card issuers and processor operations, namely the
fees and rates charged to merchants and consumers. Recommendations for
credit processing include the appointment of an “oversight board” within
with a mandate to make recommendations; to establish a code of conduct
for payments systems participants and setting fees; to prohibit any
“honour all cards” rules; and to permit surcharging and/or discounting
by merchants. Meanwhile, recommendations for debit card processing
include the calculation of switch and interchange fees on a flat fee;
an interchange fee of zero for 3 years; no percentage fees; to prohibit
priority routing; and to promote the efficiency and competitiveness of
payment systems across the country.

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ARTA & UAL

ARTA Canada is condemning United Airlines initiatives to prohibit U.S.
travel agencies from continuing to report and remit sales via the
Airlines Reporting Corporation (ARC) through its credit card merchant
agreement. With the initiative, agencies no longer can process credit
card payment transactions by United reported via ARC, rather, will be
required to process transactions as a cash sale. In response, ARTA
Canada is proposing travel agents take a greater role in distribution
technology to keep costs for all stakeholders reasonable, imploring
carriers resist any change to the status quo and allow merchant
agreements used by agencies reporting through BSP Canada or through
direct sales via a GDS or web site. ARTA Canada non-profit federally
incorporated professional association of travel retailers in Canada is
the strategic partner in Canada of the U.S.-based Association of Retail
Travel Agents (ARTA).

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