SMART CARD SHARE

Following its acquisition of XPonCard, the Oberthur Technologies
smartcard manufacturer has closed the gap to hold nearly a 1% market
share less than the 2nd place Giesecke & Devrient. Following a year of
record sales, G&D has maintained its position as the second largest
manufacturer of smart cards globally behind market leader Gemalto.
Gemalto as the market leader accounted for more than
the next three companies combined with growth into service areas and its
pending acquisition of NXP Semiconductors’ Mobile Services Business
extension to further penetrate the contactless/NFC market. IMS market
research offers consultancy services on a wide range of global
electronics markets, regularly publishing research on Financial
technologies and ID Technologies in NFC, mobile financial services, SIM
cards, smart cards, payment cards and contactless/RFID applications.

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APR DEBT

After several months of robust activity, credit card dollar volume in April slipped by 1.7%, compared to one-year ago and sunk by 7.4% from the prior month. Growth in credit card debt continued to slow dropping to an annual growth rate of 2.3%, compared to an annual gain of 4.4% for March. According to the Reserve Bank of Australia credit card balances posted A$44.1 billion for April versus A$43.1 billion one-year ago. Credit card volume came in at A$17.4 billion, compared to $17.7 billion for April 2008. Credit limits now stand at A$124.0 billion, compared to A$117.4 billion in April 2008. According to the RBA there are currently 14.3 million credit card and charge card accounts in Australia, compared to 13.8 million one-year ago.

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CREDIT SWINDLING

Ontario Provincial Police Identity Crimes Unit (OPP), Durham Regional
Police Major Crime – Fraud Unit (DRPS) and York Regional Police (YRP)
have arrested five in defrauding financial institutions of tens of
millions of dollars. The main suspect was arrested Monday June 8, 2009
at Pearson International Airport on his way to Lebanon, 3 additional
suspects were picked up in Toronto later that day and the last was
detained a week later on June 15, 2009 at his residence in Pickering.
Officers from the OPP, DRPS and YRP have executed search warrants on ten
residences, two business and four motor vehicles in Pickering, Richmond
Hill and Toronto as part of the investigation, which has found a
residence in Richmond Hill was being used for manufacturing counterfeit
documents to obtain credit from banks. Additionally, four motor
vehicles, approximately $50,000 in Canadian and American currency, POS
terminals, payment cards and computers have been seized.

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GIVEX & TREE CANADA

Givex closed loop card technologies stored value programs has
established its 2009 reforestation program, for which Tree Canada has
planted 2,875 trees in British Columbia. The Givex mission with this
initiative is to plants trees to offset emissions created by the
production of gift and loyalty cards, specifically near Kamloops, B.C.
to heal damage from a 2003 wildfire and Mountain Pine Beetle
infestation. Givex stored-value technology serves clients in 35
countries, providing a range of profit enhancing stored value cards
including gift cards and loyalty cards, while Tree Canada not-for-profit
charitable organization was established in 1992, having encouraged
Canadians to plant more than 76 million trees since its inception in 1992.

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TRUSTED LOGIC

Trusted Logic digital security solutions is opening its “Trusted Logic
Africa” subsidiary in Cape Town, South Africa, dedicated to improving
Trusted Logic’s smart card business in the regional markets. In doing
so, Trusted Logic aims to provide Middle Eastern and African card
manufacturer and service operator customers a local presence for
developing new business in the region through its secure smart card
software. With more than a hundred million cards hosting Trusted Logic’s
“jTOP” and “Deimos” software platforms around the world in 2008, Trusted
Logic focuses on offering its services in telecom, banking, government,
and transportation.

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TSYS BEACHHEAD

TSYS payment solutions has opened offices in Campinas, Brazil to
correspond with its presence in São Paulo city, to support Banco
Carrefour and support all future Brazilian endeavors. Outsourcing its
payment services to TSYS, Banco Carrefour has signed a multi-year
processing and related servicing agreement to include the retailer’s
hybrid, private label card business and the launch of MasterCard-branded
hybrid cards in July 2009. The TSYS local infrastructure data center
facility with IBM is designed to provide further client support through
Brazilian-based operations while TSYS outsourced payments extends to
more than 300 clients across 75 countries and is supported by 8,000 team
members in 21 offices.

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TNB Programs Boost First Financial FCU

TNB Card Services has revitalized the card program of NJ-based First
Financial Federal Credit Union
TNB developed and recommended a revitalization plan, with strategies
designed to increase
usage and drive interchange income, a key goal for the credit union.
First Financial introduced a Platinum card to attract new cardholders,
along with TNB’s “Rewards2U” loyalty program. Within 24 months of
introducing the
Platinum card, First Financial grew its active cardholder base 27%, to
nearly 7,000 card accounts, and began aggressive marketing to make its
card the
first choice for cardholders. In 2008, it executed more than a dozen of
TNB’s turnkey
marketing campaigns, yielding more than $3 million in outstanding
balances. This
brought the total balances outstanding to more than $17 million, a 39%
growth
since its 2006 conversion to TNB.

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RAHAXI RECORD

Rahaxi Processing of the Rahaxi international technology has met an
indication of its significant growth, having processed two million
transactions monthly throughout both April and May. Rahaxi credits the
enormity of its transaction volume and demand in the marketplace to
increased hardware sales on an improved market share, dual revenue
channel at the center of the Company’s sales strategy. Offering
mission-critical solutions to the financial industry, Rahaxi’s range of
certified products is continuing to increase on a monthly basis in more
than twenty countries around the world through its partnership strategy
for growth with such names as IKEA and FreeStar.

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AmEx U.S. Delinquency Improves for the Fourth Month

American Express reports that delinquency for its U.S. credit card business declined for the fourth consecutive month in May. However, charge-offs remain in the double-digits. U.S. Card delinquency (30+ days) declined from 4.9% in April to 4.7% for May. Delinquency peaked at 5.3% in February. The charge-off ratio edged down from a peak of 10.1% in April to 10.0% for May. Managed card loans for the U.S. market at the end of May declined to $54.7 billion, from $55.4 billion in April and $56.5 billion in March. American Express notes that during March and May it sold off some cardholder loans that had been previously written-off. Therefore, the net write-off rates reported for March and May reflect the benefit of the sale proceeds being treated as a partial recovery of such previously written-off balances. For complete details on American Express’ first quarter and monthly performance, visit CardData (www.carddata.com).

American Express U.S. Card Metrics
Delinquency Charge-Offs
Dec 08: 4.7% 7.3%
Jan 09: 5.1% 8.1%
Feb 09: 5.3% 8.6%
Mar 09: 5.1% 8.8%
Apr 09: 4.9% 10.1%
May 09: 4.7% 10.0%
Source: CardData (www.carddata.com)

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BCA & WINCOR NIXDORF

Bank Central Asia (BCA) of Indonesia and Wincor Nixdorf have partnered
to redesign some of the Bank’s branches throughout the country. With
input from the architect partner, Kranz InnenArchitekten, the new
design will focus on an open-concept branch to offer faster, more
efficient services consisting of customer service, teller-transaction
and the self-service zones, which include Wincor Nixdorf’s ATM and kiosk
terminal solutions. This Wincor Nixdorf environment design optimizes
foot-traffic patterns for BCA to ensure customers are directed to the
appropriate bank areas immediately and can experience ‘active waiting
zones’, featuring daily news and advertisements. German-based Wincor
Nixdorf IT solutions employs more 9,500 associates and is present in
more than 100 countries.

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Campus OneCard Adds Alert Notification

Payment processor Heartland and its Campus Solutions division is integrating its
“Campus OneCard” with “Alert
Notification”, a nationwide emergency notification membership service.
Alert Notification provides a 24-hour-a-day call center to alert family
or significant others when an accident or medical emergency occurs. This
offering allows higher education institutions to enhance their safety
efforts and provide a new level of service to students and their families.
Heartland’s “Campus OneCard” is a multi-functional campus ID card as well as a prepaid card
that pays for it all, from books and laundry to vending and off-campus
purchases. Students who sign up for the Alert Notification system will
have their Alert Notification numbers on their OneCards. If an incident
occurs, emergency personnel report it to the call center and give the
student’s Alert Notification number. The call center in turn notifies
that person’s “in case of emergency” contacts.

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APRIL LEI

The Conference Board Leading Economic Index (LEI) for Spain increased
.2%, following a 6 month rate of decline total of 2.6%, while The
Conference Board Coincident Economic Index (CEI) decreased .5% in April.
With the .2% increase in April, The Conference Board LEI for Spain now
stands at 106.0 (2004=100), which declined 0.6% in March and .7% in
April, while the CEI now stands at 102.1 (2004=100), which decreased
0.8% in March and decreased 0.8% in February. LEI results for the month
were attributed to positive gains in Spanish equity price index, order
books survey, and inverted long-term government bond yield while
negative contributors included the capital equipment component of
industrial production and the Spanish contribution to Euro M2.

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