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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BANK CAIXANOVA & TNS

Bank Caixanova is strengthening its payments capabilities after signing
a deal with Transaction Network Services for the “TNSOnline” network
connectivity and monitoring service. The “TNSOnline” solution is a web
based network management portal which
allows Caixanova to monitor network devices, view transaction activity
in near real time, and provide problem management status.
The organisation will use TNS’ services for connectivity to process
payment transactions for over 14,000 point-of-sale (POS) terminals.
Caixanova will also utilise the TNSOnline solution to monitor POS
terminal and transaction activity, check the status of trouble tickets
and view network alerts or messages if network conditions change.
Caixanova’s history spans nearly 130 years and the bank is now one of
the leading financial institutions in Spain, with
more than 580 branches throughout the country and 13 offices outside Spain.

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PAYPAL PHOTOCARD

GE Money has partnered with Serverside Group
to offer “Photocard” customization service for eBay and PayPal credit
card holders.
GE Money selected Serverside Group because of its experience in
providing card customization services to more than 200 major card
issuers globally, and the depth of its technology platform, which
includes a wide range of online marketing tools and an’on-demand’
digital print solution.
Card holders can use a ‘card designer’ to upload their own images and
photos to personalize their cards. In addition to uploading personal
photos or images, there are a variety of other images available, such
as: scenic, wildlife, world travel, sports and ‘things I love’. No
software downloads are needed and the entire process is secure. The
first customized card is free, with each additional customization
costing $4.95. GE Money’s Retail Consumer Finance division is one of
the most
successful retail credit providers with more than $30 billion in assets
and over 40 million account holders. The business unit provides private
label credit card programs, bankcards, and financial services for
consumers – all retail-branded through its retail partners.

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OTI & AGILITY

On Track Innovations subsidiary, PARX
Ltd., has signed an agreement with Agility Ltd. for Agility to become
PARX’s distributor in Bermuda for the EasyPark product, starting with
the city of Hamilton and the LWF Bermuda International Airport. Under
this agreement Agility will also distribute the EasyPark
product throughout the Caribbean. “EasyPark” is a comprehensive
easy-to-use
electronic parking payment system that provides the ultimate solution
for drivers, operators and municipalities. It enables drivers to be
charged for the exact period of time parked, while simplifying the
monitoring, collection and revenue distribution of parking fees.
EasyPark solution allows municipalities and parking operators to reduce
the cost of parking operation, improve the service to its customers,
encourage on street parking, and create new opportunities to increase
revenue. Agility
is responsible for operating the program including marketing, sales,
help desk, customer support, installation and all local services in
Bermuda.

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CARD HEARING

The representatives of Canadian businesses will descend on Ottawa for
the start of House of Commons joint House Finance/Industry Committee
inquiry focused on the fees merchants are forced
to pay to accept credit cards. At the centre of the inquiry are the fee
practices of Canada’s two major
credit card companies, Visa and MasterCard, who have hiked merchant
charges over the past year. Merchants have asked Parliament to examine
the uncontrolled escalation in credit card fees as well as the imminent
destruction of Canada’s low-cost and efficient debit system as Visa and
MasterCard prepare to enter the Canadian market with their own debit
products. Merchants have also been alarmed by the explosion of premium
cards into the Canadian market – cards that carry an increased cost for
merchants. In year’s past these more expensive cards would typically
represent a small percentage of a merchant’s credit card transactions,
but they’ve jumped to more than 30% for many merchants in less than a
year. The hearings signal the first time that credit and debit card
issues have been examined by Parliament.

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