MasterCard to Require DPA for Smart Cards

Security technology provider Cryptography Research and MasterCard
Worldwide have signed an agreement relating to Cryptography Research’s
Differential Power Analysis. Under the
agreement, MasterCard will require that vendors of smart cards and other
cryptographic products that utilize DPA countermeasures be licensed from
Cryptography Research in order to be used on MasterCard’s payment networks. Cryptography Research recently announced licenses with Infineon, Renesas and NXP for their smart card semiconductor products.

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McAfee to Acquire Solidcore for $33MM

Data security provider McAfee is set to acquire Solidcore for $33
million. Solidcore uses dynamic whitelisting to protect against
vulnerable or malicious applications and ensure that only pre-authorized
software and code can run on servers, endpoints, fixed function devices
and mobile devices. Following the completion of this proposed
acquisition, McAfee expects to couple Solidcore’s dynamic whitelisting
and compliance enforcement technology with McAfee compliance mapping and
policy auditing to deliver the industry’s first end-to-end compliance
solution. The deal will help McAfee significantly expand its reach to
include security for ATMs, POS systems, multifunction printers,
Supervisory Control and Data Acquisition systems, mobile and other
embedded devices. Solidcore currently protects more than 200,000
endpoints from malware and unauthorized changes with its patented
whitelisting software, which includes systems such as ATMs, POS systems,
process control devices, mobile devices, servers and workstations. Its
customer base is geographically diverse, with customers in more than 40
countries, at more than 100 financial institutions and across more than
15,000 retail stores.

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Socialwise Introduces BillMyParents

A new payment service has surfaced that enables tweens and teens to
shop online without a credit card while giving parents control over any
purchases. The new “BillMyParents” system from San Diego-based
Socialwise gives tweens/teens immediate access to more than a million
products through a shopping site powered by Amazon.com. To date,
“BillMyParents” has also forged partnerships with online gaming sites
and social network applications targeted at teens and tweens, including
Artix Entertainment, Habbo, Outspark and RockYou!, among others. Once
they have made their selections, “BillMyParents” sends a notification to
the parent or other adult guardian, by email or mobile text, through an
automated, instantaneous system and the parent then decides to approve
the purchase and pay with a credit card. Socialwise says more than $132
billion is spent annually by youth with $40 billion spent offline on
products researched online.

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MasterCard Launches a Hispanic Campaign

MasterCard has launched a targeted marketing and communication program
to the Hispanic community. MasterCard has released a
new 30-second Spanish language Priceless commercial entitled
“Quebradita.” The commercial emphasizes how consumers can better manage
their money through the use of debit and prepaid MasterCard cards.
Translated as “little break,” quebradita is a modern, acrobatic Latin
American dance style recognizable by its western clothing, hat tricks
and daring flips. In addition to the TV spot, MasterCard has also
created Spanish-language
radio advertising, out-of-home and on-line advertising to extend the
campaign across relevant channels. MasterCard will also continue to
build on its robust online presence, www.mastercardenespanol.com, where
U.S. Hispanic cardholders can find useful information on MasterCard
offerings available to Hispanics to help manage their financial needs.
The integrated campaign informs and educates U.S. Hispanics on the many
benefits, including budget control features, that MasterCard products,
specifically prepaid and debit MasterCard cards, offer.

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Meta Payment Systems Q1 Profits Leap 59%

Prepaid card issuer Meta Payment Systems reports that net income for the first quarter soared by 59% to $3.5 million. The number of active cards remained flat sequentially but up 56% from one year ago to 17.8 million. Transaction volume for its prepaid cards increased from $2.4 billion in the prior quarter and $2.3 billion for 1Q/08 to $2.9 billion for 1Q/09. MPS quarterly revenue grew by 139%, from $15.2 million in fiscal 2008 to $36.4 million in 2009, notwithstanding a 244 basis point reduction in the average transfer pricing yield received for its deposits from 3.84% in 2008 to 1.40% in the 2009 period. During the quarter, MPS teamed with NetSpend to offer the “iAdvance Line of Credit” and partnered with MasterCard and Blaze Mobile for the “Blaze Mobile MasterCard PayPass” mobile payment sticker. Recently, MPS launched a new gift card for the National Breast Cancer Foundation and launched “The MoneyGram AccountNow Prepaid Visa” with MoneyGram and AccountNow. For complete details on Meta Payment Systems’ first quarter performance visit CardData (www.carddata.com). (CF Library 3/10/09; 3/30/09; 4/14/09; 5/14/09)

ACTIVE PREPAID CARDS
1Q/08: 11.4 million
2Q/08: 12.1 million
3Q/08: 14.2 million
4Q/08: 17.9 million
1Q/09: 17.8 million
Source: CardData (www.carddata.com)

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ATM Pro TRM First Quarter Sales Rise 23%

ATM specialist TRM reported that first quarter sales rose 23% to $22.2
million. The Company ended the quarter with 11,425 transacting ATMs
compared to 11,649 in the prior quarter. Net sales were $7.3 million
compared to $7.4 million in 1Q/08. The slight reduction in net sales
compared to the year ago quarter reflects the unusually high parts and
service revenue experienced in 2008 due to the impact of the Company’s
“Triple Des” upgrade program. On a sequential basis, net sales were $7.3
million in the first quarter as compared to $6.8 million in the fourth
quarter. The net loss widened to $700,000 from $400,000 in 1Q/08. During
the quarter, TRM entered into a contract to provide ATMs and related
services for the New Jersey Sports & Exposition Authority and entered
into an agreement with Harkins Theatres to provide over 20 new ATMs to
locations throughout the Southwestern U.S. For complete details on TRM’s
first quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

TRM HISTORICAL GROSS SALES
1Q/07: $22.9 million
2Q/07: $23.5 million
3Q/07: $23.3 million
4Q/07: $20.6 million
1Q/08: $18.1 million
2Q/08: $23.9 million
3Q/08: $25.2 million
4Q/08: $21.5 million
1Q/09: $22.2 million
Source: CardData (www.carddata.com)

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ID Insight and Patria Services Form a JV

MN-based ID Insight and DE-based Patria Services have formed a
joint venture to provide a full-service solution for
address change requests that delivers both risk management and portfolio
optimization. “MoveManager” meets the “FACT Act Red Flag” address
change requirements and reduces the risk of losses due to account
takeover through a proprietary scoring process that specifically
pinpoints identity fraud. In addition, it features a “SaaS” based
technology for creative marketing design, that offers modeling, and web
based micro-site development, as well as hyper-local merchant offers to
incent recent movers to drive desired results. ID Insight and Patria
note that “MoveManager” will reduce costs and increase revenue without
the likelihood of requiring additional budget dollars. The companies are
hosting a Webinar on June 3rd, from 2:00 to 3:00 p.m. EDT.

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CASHPLUS

Transaction processor Fundtech has announced that 12
banks across five countries in Asia have contracted to use “Global
CASHplus” transaction banking solution which combines comprehensive
global cash management with the
full range of automated financial supply chain features. GCP is an
extension of Fundtech’s end-to-end-to-end (also referred to as
E-to-E2) strategy, which expands the traditional boundaries of global
end-to-end transaction banking to include corporate clients and their
trading partners. For corporate users, GCP offers an abundance of cash
management
features. The multi-country / multi-currency payments and collections
management functions support the full spectrum of electronic and
paper-based transactions and integrate with corporate ERP systems. The
global liquidity management functions include cash pooling (real,
notional, and cross-border), cash concentration, and a variety of
sweeps. Across Asia, many banks are turning to cash
management solutions which incorporate automated financial supply chain
technology to help their clients access hidden liquidity caught up in
unpaid invoices or inefficiencies in the chain.

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TSYS & TRAVEL BANK

TSYS announced that it
would begin processing Visa-branded prepaid cards for the Japanese
market in July 2009. The prepaid cards will be issued by Travel Bank
Inc., a financial services company that is part of the JTB Group.
Consumers can use the cards to make payments at Visa merchants when
traveling overseas or to withdraw cash from Visa ATMs. TSYS is one of
the world’s largest processors for branded prepaid cards.
In Japan, the company offers payment-related services for debit, credit,
retail gift, loyalty and prepaid products to a variety of industries
through its wholly owned subsidiary, TSYS Japan. Travel Bank is a
company of the JTB group. Since its establishment
in 1997, it has offered financial products and services to consumers,
including support service for international ATM card issued by Japanese
banks and membership services for affluent customers of trust banks.

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First Data Revenues Slip 2% for 1Q/09

First Data reported first quarter revenue of $2.1 billion, a decrease of 2% over the year ago quarter. The net loss for the quarter was $231.3 million, compared to a year-earlier net loss of $221.7 million. Retail and Alliance Services reported revenue of $1.2 billion, up 7%. Retail and Alliance Services signed 117,000 merchant locations in the quarter. In addition, 21 new independent sales organizations, 12 new referral partners and two new revenue share agreements were added to the distribution network. Financial Services’ first quarter revenue was $544 million, down 3%. Financial Services renewed 130 contracts in the quarter. For the quarter, International generated revenue of $369 million, down 16%. Transactions and point-of-sale locations grew at 10% and 9%, respectively. For complete details on First Data’s first quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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M2M Report

Smart Security association Eurosmart has released its Report on Smart
M2M. Eurosmart New Form Factor Working Group provides an in-depth
analysis of Smart M2M technologies, giving a definition of the Smart M2M
eco-system and providing accurate information about the applications,
technology trends and challenges. Eurosmart is the first organization
that gives an estimate of M2M market, including wireless and connected
applications. To some extend, the report can be seen as an introduction
of the concept of the “Internet of things”, for ubiquitous connectivity
and security. Eurosmart’s members are manufacturers of smart cards,
semiconductors, terminals,
equipment for smart cards system integrators, application developers and
issuers who work into dedicated working groups (communication,
marketing, security, electronic identity, new form factors and prospect
emerging markets).

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