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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Motorola Gains Access to NFC Patents

Motorola has joined patent developer Via Licensing’s NFC joint
licensing program as a licensor. The joint licensing program for NFC is
designed to provide fair and convenient access to essential patents
through a single license
agreement. Among the applications covered by this program are
NFC–compliant mobile phones, consumer electronic devices, and commercial
systems such as payment processing terminals, transportation terminals,
and vending machines. A wide range of related technical specifications
published by ISO, ETSI,
and the NFC Forum are covered by the NFC patent pool agreement and are
available at www.vialicensing.com/patent/NFC_index.cfm.

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Kmart Smart Assist Savings Card Launched

Retailer Kmart is offering the “Kmart Smart Assist Savings Card”to
Michigan residents. Eligible cardholders will receive 20% off of their
grocery and drug staples. Verifiably unemployed Michigan residents who
register at www.kmart.com will receive a nontransferable Kmart Smart
Assist Savings Card valid for up to six months depending on the date of
issue. Registration is a private, online
process. Any Kmart customer who can present valid Michigan state-issued
identification and a state-issued unemployment benefits enrollment
confirmation is eligible
to enroll in the “Kmart Smart Assist Savings Card” program. Michigan
residents who
file for Michigan state unemployment benefits either before or after the
program
begins are eligible, provided they possess required documentation. If
customers gain employment before their Kmart Smart Assist Savings Card
expires, they
may still use the card up until its expiration.

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EZIPAY

Visa continues to rack up more partnerships to facilitate the expansion of global mobile payments with today’s announcement of a strategic alliance with Monitise. Under terms of the deal, Visa plans to make a minority equity investment in Monitise, a global mobile payments specialist. Monitise says it can optimize the user experience for Visa mobile payments and related services as its solution can detect phone make, model, screen size, browser type and multimedia capabilities. Visa says the partnership will produce mobile payments, mobile money transfer, mobile transaction alerts and mobile marketing offers. The two companies indicate they will focus on increasing the speed to market of unique payment and related services including mobile user enrollment services, application development and channel management. Last week, Visa announced two major m-payment partnerships. The NeuStar alliance will combine Visa’s global payment network with NeuStar’s carrier grade infrastructure. VisaNet Peru and Telefonica announced they will launch the “Pago Movil con Visa” service (Visa Mobile Pay) to enable cardholders in Peru to pay for products and services over a wireless network. In 2007 Monitise plc and Metavante partnered to create Monitise Americas. The mobile service is integrated with the NYCE Payments, which delivers the service to U.S. customers, and is available through mobile phone handsets over a secure network. (CF International Library 11/28/07; CF Library 6/23/09)

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