PERFECT STORM

A new report finds that the triple shocks of housing, banking and stock market crashes during 2008 has seriously dented the European perceived sense of ‘continually growing wealth.’ There has been a seismic shift in the way consumers of today are making their spending and saving decisions. The study by TNS for MasterCard Europe found the most significant shift in consumer behaviour since World War II. Up to 78% of European consumers polled saying they actively plan to spend less on daily expenses. Eighty-nine percent of Italian and 85% of French consumers surveyed were the most likely to reduce daily expenses versus an average in Europe of 78%. Consumers indicated their desire to use their debit cards to actively monitor their expenditures and more closely manage their spending through their monthly statements.
Value for money/loyalty. The desire to make their money stretch as far as possible and support active bargain hunting (84% from 72% six months ago) is highlighted by consumers in the emergence of loyalty programs attached to debit cards as the second most important incentive to use their cards (40%). The survey found that money management is at the forefront, with 69% of consumers wanting to only spend what they can afford.

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Wright Express Revenues Decline 26%

ME-based fuel card specialist Wright Express reports that total revenue for the first quarter decreased 26% to $69.2 million. The Company says the results exceeded its guidance for both revenue and adjusted net income. Although there was year-over-year erosion in fleet transaction volume, the collections experience improved significantly in the quarter. Net income on a GAAP basis was $11.0 million, compared with $14.5 million for 1Q/08. Total MasterCard purchase volume grew 23% to $649 million. Total fuel transactions processed declined 2% from the first quarter of 2008 to 63.3 million. Payment processing transactions decreased 7% to 49.3 million, and transaction processing transactions increased 21% to 14.0 million. Average expenditure per payment processing transaction decreased 38% from the first quarter of 2008 to $40.78. For more details on Wright Express’ performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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SINO PAYMENTS AND POWERE2E

IP transaction processing system provider
Sino Payments has signed a contract with retail merchant e-Service PowerE2E to provide credit and debit
card processing services. The agreement is for card processing
services for PowerE2E’s clients as well as directly for PowerE2E
transactions. The SinoPay GPP system is being deployed on site at PowerE2E’s
Headquarter location in Shanghai. The first project is for an ecommerce client site and
PowerE2E and Sino Payments are working on additional joint business
development opportunities to provide service to PowerE2E’s existing
customer base.

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Silicon Valley Bank to Offer Biz Cards

CA-based Silicon Valley Bank has partnered with the New England Bankcard Association to issue
premier business credit card products under the MasterCard brand.
Silicon Valley Bank successfully transitioned clients to its new
business credit card platform, completing the conversion of over 7,000
card holders to the new SVB business credit cards. As an issuer, Silicon
Valley Bank can offer new card products, an expanded rewards program,
and more online reporting tools to assist SVB clients with their cash
management needs. In particular, SVB clients will immediately benefit
from the MasterCard’s SmartData reporting tool that enables integration
with numerous third party expense applications.

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USPS and Dunkin Donuts Join Easy Savings

Dunkin’ Donuts and The USPS are the newest merchants to participate in the “MasterCard Easy Savings Program.”
Eligible MasterCard business credit and signature debit, U.S. cardholders enrolled in the
program will now receive an automatic 5% rebate on Click ‘N Ship purchases
made with the United States Postal Service at usps.com, and an automatic 5%
rebate on purchases at Dunkin’ Donuts. The “MasterCard Easy Savings Program” may have benefits for
merchants, helping them generate additional revenue and, more importantly, attract new
customers. MasterCard data shows small business cardholders enrolled in the
Program increased their spend by more than 60% at
“MasterCard Easy Savings Program” merchants from 2007 to 2008, and nearly
70% of MasterCard Easy Savings cardholders were new customers for MasterCard
Easy Savings program merchants.

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Euronet 1Q/09 Revenues Slip 4.5%

Euronet Worldwide reported that first quarter revenues declined 4.5% to $233.7 million, impacted by four unusual factors. However, total transactions hit 347.8 million, compared to 339.5 million in the first quarter 2008. The Company faced significant declines in foreign currency exchange rates against the U.S. dollar, adjustments in 2009 to the fourth quarter 2008 estimated goodwill and intangible asset impairment charges, the first quarter 2009 receipt of termination fees for two previously announced contracts and charges incurred in the first quarter 2008 associated with abandoned efforts to acquire MoneyGram. The EFT Processing Segment reported revenues of $46.2 million, compared to $48.2 million for the first quarter 2008 and transactions of 159.5 million, compared to 168.4 million for 1Q/08. The Prepaid Processing Segment reported revenues of $134.5 million, compared to $144.3 million for 1Q/08 and transactions of 184.3 million, compared to 167.3 million for the first quarter 2008. The Money Transfer Segment reported revenues of $53.0 million, compared to $52.3 million for 1Q/08 and transfer transactions of 4.0 million, compared to 3.8 million for the first quarter 2008. For complete details on Euronet’s latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

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TSYS Slips 2.6% and Dumps TDM Unit

TSYS reports that revenues decreased 2.6% in the first quarter to $408.9 million. The Company also announced it is unloading its TSYS Debt Management unit as it is no longer a good strategic fit. TSYS says cardholder transaction volumes decreased 4.3%, and its POS volume increased only 1%. North America Services posted total segment revenues were $268.8 million, a decrease of 6.3%. The segment processed 1.48 billion transactions, a decrease of 6.8% and transactions for same clients were 1.47 billion, a decrease of 2.8%. International Services posted total segment revenues were $73.8 million, an increase of 5.7%. Merchant Services reported total revenues of $75.5 million, an increase of 6.4%. The Company is projecting total annual revenues of $1,637 million to $1,665 million or a decline of 5% to 3%. For complete details on TSYS’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

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TransCard Adds Two New Top Executives

Prepaid card provider TransCard has hired Arnold Galit, previously with
IKobo, as its VP of Risk and Karl Asplund has been tapped as EVP, Global
Business Development.
Galit was Vice President of Risk and
Compliance for iKobo, Inc. where he was responsible for all aspects of
fraud prevention, security, and risk management. He has held leadership
positions at innovative companies, including Enfotrust Networks and
General Electric—and also established an Atlanta technology startup.
Asplund
has more than 21 years of experience in the payments industry,
including designing, building and marketing payment solutions for
issuers and acquirers across ATM, POS, and Internet platforms. Most
recently, Karl negotiated and secured funding for more than $30 billion
in petroleum and mining contracts in Latin America and Europe. He has
worked on international banking, dynamic currency exchange and
multi-currency processing for five years, while chairing new product
development at Paymentech and agent banking at Intuit Processing Solutions.

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Western States Acquirers Board Adds Two

The Western States Acquirers Association has added Greg
Gumbinger of First Data and David Sharp of Pay Simple to its Board of Directors. Gumbinger
will be taking the position of Secretary and Sharp comes on as a
Member of the board. The previous secretary,
WSAA founder and Past President, Sherry Friedrichsen will remain as
a consultant. The Western States Acquirers Association is a not-for-profit, non
membership organization dedicated to creating an independent forum
explicitly designed for the purpose of educating, networking and helping
to create an environment of solidarity within the merchant bankcard
acquiring field. Attendees are defined as Financial Institutions, Independent Sales
Organizations, or Individuals that primarily sell acquiring related
services directly to the Retail Industry.

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Gen Y Looks to Credit Cards as Backup

A recent survey by employee benefit provider Unum reveals that 16% of “Gen Y” workers without disability insurance will need to borrow from credit cards. Unum’s survey of the two largest generations in the workforce reveals that, among generation “Y” workers (ages 18-30) who do not have disability coverage with 39% say relying on savings would be one of their two likeliest options if they could not work; 33% say borrowing from friends or family would be a likely source of income and 18% aren’t sure how they would get by. Among employed baby boomers (ages 44-62) who do not have disability coverage, 49% say relying on savings would be one of their two likeliest options if they could not work, 40% say a partner’s earnings would be a likely source of
income and 15% aren’t sure how they would get by.

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Rainmaker Enhances Accelerated Analytics

Data warehouse provider The Rainmaker Group has enhanced
“Accelerated Analytics” data sharing and analysis capabilities for retailers. “Accelerated Analytics” is a comprehensive, web-based service for collecting, analyzing and reporting on EDI 852 and POS data that enables retailers to better collaborate with their
vendors and share data more quickly, easily and on a more timely basis.
This allows retailers to not only better understand what is happening at
the store-level, but also proactively respond to maximize opportunities
and improve sales performance. Pre-configured reports and flexible, ad-hoc analysis tools provide one-click access to item and store-level analysis. The service is vendor-funded and does not require any investments in technology infrastructure or software.

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Charge-Offs and Delinquency Set New Records

Performance among credit card-backed securities deteriorated again in March as the charge-off rate and the delinquency rate increased to its highest level ever. As a result the charge-off rate index is expected to peak in the second quarter of 2010 at about 12%. According to “Moody’s Credit Card Index” charge-offs for March hit 9.30%, compared to 8.82% in the prior month. Delinquency rose to 6.40% compared to 6.14% in February. Other performance metrics improved. The yield index increased for the third consecutive month in March to 18.25%, aided in large part by card companies’ proactive measures to bolster the yield of their respective trusts. Also, as expected, the payment rate index bounced back from last month’s low rate to 16.46% in March. This improvement was mostly attributable to the technical issues related to the number of collection days in the relatively short month of February rather than any fundamental improvement in obligor payment behavior.

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