CANADIAN TIRE 1Q/09

Canadian Tire Corporation released its 1Q09 results reflecting an
adjusted consolidated net earnings down 10.9% compared to the year ago
period. This is mostly thanks to higher distribution and operating
expenses at Canadian Tire Retail and increased write-offs and
bankruptcies at Financial Services. The Canadian Tire Financial Services
posted a total managed portfolio of CAD$3,979.1 MIL, compared with
CAD$3,783.9 MIL for 1Q08 for a 5.2% increase, while gross operating
revenue was CAD$217.3 MIL, compared with CAD$208.7 MIL for a 4.1%
increase. Meanwhile, Financial Services’ credit card sales were up 4.5%
for the quarter encouraging Financial Services’ goal of portfolio growth
in average balances, new account acquisition and the introduction of new
credit cards. Financial Services also reported an average household
account balance CAD$2,120, a 5.8% increase largely due to marketing
programs designed to do so. Canadian Tire Financial Services markets a
range of Canadian Tire-branded credit cards, including the “Canadian Tire Options MasterCard” and “Gas Advantage MasterCard.”

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OTI 1Q/09

Contactless specialist On Track Innovations reports that revenues were flat for the first quarter at $9.3 million. The non-GAAP net loss for the quarter was $2.6 million, a 46% decrease compared to 1Q/08. The GAAP net loss for the first quarter was $3.8 million, a 44% decrease, compared to the year ago quarter. The Company says it is focusing on reducing operating expenses, specifically in R&D and G&A while boosting marketing and sales. OTI’s target is to further reduce operating expenses on a non-GAAP basis to reach $25 million annually. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking, loyalty programs and secure campuses. For complete details on OTI’s latest performance visit CardData (www.carddata.com).

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AA Goes Cashless for All In-Flight Purchases

American Airlines is set to go “cashless” for in-flight purchases.
American will accept American Express Cards and other major
credit or debit cards only for purchases such as headsets, fresh meals,
snacks and alcoholic
beverages. Flight attendants utilize a hand-held Onboard Sales Recorder
to charge credit and debit cards, eliminating the need to search for
small bills or change. American has used these hand-held devices since
May 2006. Receipts will
be provided to passengers upon request. Cashless cabins will not be
implemented onboard American Eagle and
AmericanConnection flights cash will continue to be accepted
onboard those flights.

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FIRST DATA & CO-OPERATIVE

Payment processor First Data and The Co-operative Financial
Services have announced an eight year extension of their
card issuing and processing agreement. Under the terms of the
agreement, First Data will continue to provide
support across the entire payments value chain, handling processing for
approximately 1.7 million debit cards and one million credit cards per
annum. In addition, the agreement encompasses a range of surround
services for CFS including the provision of First Data’s commercial card
management suite, D.Cal. First Data will also manage the migration of
CFS’s credit and debit card portfolios to “FirstVision”, its global
issuing solution. “FirstVision” is the new name for First Data’s
strategic processing
service and builds on the proven strengths of “VisionPLUS”, the platform
of choice for many of the world’s leading issuers. The company’s scale
and strength has enabled First Data to continue to invest through the
current economic downturn, focusing on the development of a single
solution that delivers consistent functionality and technology in
support of banks and major retailers around the world.

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M-PAYMENTS FORECAST

The mobile payment industry will grow at a 35% CAGR for the next five years. A new research report has found that the number of mobile payment users worldwide will total 73.4 million in 2009, up 70% from 2008’s 43.1 million users. Gartner predicts that the number of mobile payment users will reach more than 190 million in 2012, representing more than 3% of total mobile users worldwide. The research firm expects Asia/Pacific and Japan to maintain a larger share of the market
through 2012. While mobile payment penetration in Western Europe is
expected to rise from 0.9% in 2009 to 2.5% percent in 2012, and
from 1.7% to 3% in North America; penetration in Asia/Pacific and Japan will rise from 2% in 2009 to 3.8% in 2012. Mobile payment penetration in Eastern Europe, the Middle East and Africa (EMEA) and Latin America is also expected to exceed 3% by 2012. Gartner defines a mobile payment as paying for a product or service using mobile technology such as a short message service (SMS), Wireless Application Protocol (WAP), Unstructured Supplementary Service Data (USSD) and NFC.

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Credit Card ABS Charge-Offs Near Double Digits

Charge-offs among prime and sub-prime credit card-backed securities set
a new record in April coming in just shy of double digits. ABS 30-day+
delinquency continues to hover at record levels, but did edge down
slightly in April thanks to tax-refund season. According to Moody’s
“Credit Card Index” the charge-off rate was 9.97% for April, almost 60%
higher than a year ago. After a steady rise from the 4.45%
level in June of 2008, to last month’s 6.40% level, the delinquency rate
actually declined to 6.34%. The payment rate for April decreased to
16.18%, the result of lower purchase volumes among convenience users as
well as the diminished ability of revolvers to make payments. The yield
index went in a negative direction during April, dropping to 16.18%.
Moody’s noted that the magnitude of the pull-back in yield for April was
unexpected and bears close watching in the months ahead. The combined
rise in charge-offs and slide in yield drove the monthly excess spread
index below 5%, with practically every issuer experiencing substantial
declines. With the April decline, the three-month average for the index
is now 5.32%.

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INSIDE & HID

Secure identity provider HID Global has combined with INSIDE Contactless
MicroPass
contactless payment platform featuring Visa payWave capability to enable
the industry’s first converged payment card solution that
incorporates identity and access control. In the pilot,
users were able to make purchases using the U.S. Bank’s “AccelaPay
Visa Card”, a prepaid payroll account, then turn around and present the
same card for physical access to their building or facility. Drawing
upon HID’s 13.56 MHz iCLASS technology, the converged
card offers a unique value proposition to campus and enterprise
environments by enabling them to do more with a single card solution.
Not only do systems managers within these campuses benefit from the
greater utilization or display of student or corporate ID’s, users can
appreciate the convenience of carrying a single card.

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Eight out of Ten Consumers Favor Card Regs

Results from a survey by Western Union indicate 79% of consumers
favor regulations that place limits on credit card fees.
Another 60% of
consumers are strongly in favor of tighter regulations and 27% of
consumers reported using cash more often than in the past. The survey
also revealed that while the use of cash offers
consumers better ways to control spending, and helps avoid accumulating
debt, 66% of those surveyed cannot make online
purchases.

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G&D BOARDS

Giesecke & Devrient’s new Supervisory Board
and Advisory Board has elected Dr. Peter-Alexander
Wacker was elected as the new chairman of the Supervisory Board and
Advisory Board. Wacker has been a member of G&D’s Advisory and
Supervisory Boards since 2007. He succeeds Dr. Peter Mihatsch. The
members of the Supervisory Board and Advisory Board of G&D are as
follows: Supervisory Board: Dr. Peter-Alexander Wacker (Chairman),
Walter Bogner (Deputy Chairman), Ralf Gerlach, Dr. Dietrich Hoppenstedt,
Verena von Mitschke-Collande, Jens Mueller, Prof. Gunther Reinhart,
Michael Reinhard, Claudia Scheck, Peter Johann Stark*, Johannes
Ignatius van der Velde, Dr. Susanne Weiss (employee representatives)
Advisory Board: Dr. Peter-Alexander Wacker (Chairman), Dr. Dietrich
Hoppenstedt (Deputy Chairman), Franz Haniel, Verena von
Mitschke-Collande, Prof. Gunther Reinhart, Johannes Ignatius van der
Velde, Dr. Susanne Weiss.

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CGA REPORT

A new report by the Certified General
Accountants Association of Canada, “Where Has the Money Gone: The State
of Canadian Household Debt in a Stumbling Economy,” reveals that
household debt has reached an all-time high of $1.3 trillion in 2008,
yet Canadians perceive their financial condition to be better than it
is. The survey asked Canadians to reflect on the changes that had
occurred in their household finances over the past three years, with a
focus on household debt, income, assets, wealth, spending and savings.
According to the report, Canadian families are financing consumption
activity with unearned money as they increasingly reach for credit to
finance day-to-day living expenses with 49% of Canadian families with
one or more children under the age of 18 reported that their debt had
increased. Lines of credit and credit cards account for the largest
proportion of consumer debt, with 85% of Canadians reporting that they
have outstanding debt on a credit card. Some 21%
of Canadians who are in debt say that they are in over their heads and
can no longer manage their debt load.

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Future ATM Experiences Must be Personalized

A new report form Aite Group looks at the evolution of the ATM channel
through 2010. As banks embrace the potential to add additional features
and functionalities to ATMs, they realize that they must first update their
underlying technology. In five years, 91% of ATM executives indicate it
will be important or extremely important to their bank’s strategy to
create a differentiated ATM experience through customer personalization.
If the foundation is not yet built, banks will not be able to provide
the level of personalization their peers are currently starting to
implement.

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