Unstrung/TechWeb Issues an M-Commerce Report

A new report, “Dial M for Commerce: Mobile Payment Market Gains
Traction”, reveals the U.S. is one of the fastest-growing markets for
m-commerce, despite
having a highly developed payment infrastructure and greater concern
over security issues.
The report from research firm Unstrung Insider and TechWeb’s Light
Reading analyzes the
m-commerce sector, providing an overview of the market – including how
m-commerce
works, how various solutions are developing, and the potential
applications for mobile
payments. It identifies vertical markets that various vendors are
tapping into and global areas of interest for the service and examines
what to expect for
the next 12 to 18 months in the m-commerce market, including challenges the
industry faces. Additionally, the funding, acquisitions, and
partnerships of vendors are
discussed and the report provides a comparative analysis of nine of the top
vendors in the m-commerce sector. Other findings include: Security
continues to be one of the biggest concerns plaguing m-commerce,
followed closely by a need for consumer education; need to define the
various components that constitute m-commerce remains a
challenge for the industry; several vendors have recently announced or
are developing m-banking
applications; the increasing value-added revenues beyond that of
ringtones is seen as
one of the many benefits provided by m-commerce and peer-to-peer
payments will be one of the hottest m-commerce
applications for the next 12 to 18 months.

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Capital One Offers Biz Debit Card Rewards

Capital One has introduced a free checking account that offers rewards
miles for day-to-day business banking transactions and then allows small
business owners to combine those miles with those earned on their
personal Capital One accounts. The new “Capital One Bank Small Business
Rewards Checking” product also offers rewards miles for first-time debit
card usage and unlimited debit rewards, enabling small business owners
to earn rewards miles faster than ever before. Business owners can earn
automatic rewards for everyday business transactions including: 20 miles
for each online bill pay or pre-authorized payment (up to 200
miles/mo.); 20 miles for every debit card purchase; and 10 miles for
each check or account withdrawal (up to 100 miles/mo.). Plus, they earn
“BONUS” rewards: 1,000 miles upon opening their account; 1,000 miles for
the first debit card transaction; an anniversary bonus of 1,000 miles;
and 5,000 miles for opening a personal Rewards Checking account and
signing up for direct deposit.

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CardinalCommerce and CyberSource Integrate

CardinalCommerce has established a strategic partnership with CyberSource and has integrated the “Cardinal
Centinel Platform” with CyberSource’s payment management services to
provide CyberSource merchants with continued, strengthened support for
“Verified by Visa” and “MasterCard SecureCode”. By utilizing Cardinal’s hosted platform,
CyberSource customers will also have the benefit of improved reliability
and speed for VbV and MCSC transactions. Enhanced transaction
performance and Cardinal quality assurance review are designed to create
an optimized authentication experience for both merchants and their
customers. CyberSource is now able to leverage Cardinal’s
team, which provides active monitoring and quality assurance so
participating merchants receive the maximum benefits of VbV and MCSC —
including the potential for fraudulent chargeback protection and
interchange savings. CyberSource is a provider of electronic payment and
risk management solutions. CardinalCommerce enables
authenticated payments, secure transactions and alternative payment
brands for both eCommerce and mobile commerce.

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Merchant e-Solutions Integrates Cashbox

Payment software provider Vindicia has integrated its “CashBox” billing
system with CA-based Merchant
e-Solutions e-Commerce payment platform. The joint offering from
Vindicia and MeS will provide online merchants
with secure, cost-effective payment processing, optimized subscription
and one-time billing. Capabilities include processing in more than 150
global currencies and payment types
including credit and debit cards; real-time, web-based reporting, and
consolidated reporting across
domestic and international transactions for easy reconciliation;
optimized subscription management to drive customer retention and
automated chargeback management to reduce losses and enhance overall
efficiency. Merchant e-Solutions currently processes more than $14
billion dollars in
payments for more than 65,000 merchants, supporting 150 global
currencies and all major credit, debit and alternative payment
solutions. Vindicia offers an integrated, on-demand billing and fraud
management
solution for online merchants. Vindicia “CashBox” is a best-of-breed
billing system for creating and managing recurring and real-time
payments and helps merchants improve customer retention and maximize
profit.

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TowerGroup Says Protectionism is Fatal

A new report shows that unfettered protectionism from national governments, in response to the financial crisis, could pose significant risks for the global financial services industry and its stakeholders worldwide. TowerGroup says that although a short-term economic lift often results from governments’ use of protectionism, history has shown it to be an artificial solution that limits sustainable growth and puts a nation behind the global economic curve. The threat of protectionism will exist throughout 2009 and 2010, posing risks to the international competitiveness of financial institutions and the technology vendors and service suppliers that serve them, as well as to global economic recovery itself. The research also found that under a narrowed definition of the financial marketplace, the number and variety of products and services available will decline, leaving the industry powerless to foster new economic wealth around the globe and eestrictions to the global flow of capital and access to financial services would severely undermine the role of the industry to help restore business momentum, sustain growth, and crystallize synergies between developed and emerging economies.

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Acculynk Inks ShoppersChoice.com

Online specialty retailer ShoppersChoice.com is now processing purchases
made with Acculynk’s “PaySecure” PIN debit service.
PaySecure is the first product to gain approval by four EFT networks,
including ACCEL/Exchange from Fiserv and NYCE, to run Internet PIN debit
transactions and meets consumer demands for increased security and
convenience, while providing merchants lower interchange fees, reduced
fraud and charge-backs, guaranteed funds and simple implementation with
the online checkout. PIN debit is an ideal
online payment method because it provides an extra layer of security for
consumers and cost savings for merchants, while offering attractive
margins to issuers and a new revenue source for EFT networks.

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MINT CTFS CARD

Mint Technology and Canadian Tire Financial Services Limited have signed a deal to introduce a new Canadian Tire branded prepaid MasterCard product. The prepaid card will be available to residents of the Province of Ontario. A self-serve website will also be launched where prepaid card customers can load funds to their card and view transactions. Located in Welland, Burlington and St. Catharines Ontario, Canadian Tire Financial Services Limited is a wholly owned subsidiary of Canadian Tire Corporation, Limited. Mint Technology is Canada’s first provider of prepaid credit card programs.

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Meta Payment Systems & NetSpend Team

Branded prepaid card issuer Meta Payment Systems and NetSpend
Corporation have teamed to offer the “iAdvance Line of Credit”.
Award-winning and
patent-pending iAdvance provides consumers with the opportunity to
establish short-term, small-dollar lines of credit and have the money
immediately available on their NetSpend prepaid card. The enrollment
process takes less than two minutes, and no credit check
is required. Once enrolled, advances to cardholders are completed in
seconds with funds immediately available to the borrower on their
NetSpend prepaid card.

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ink! Coffee to Offer the MocaPay Option

Mobile loyalty provider Mocapay will implement the mobile gift program
of CO-based ink! Coffee. Through their partnership with Mocapay, ink!
Coffee will be able to
expand their existing plastic gift card program to appeal to a wider
demographic of customers, especially those that visit on a regular
basis. ink! Prior to launching the mobile gift program, Mocapay will
help ink! Coffee migrate off their current standalone gift card terminal
to a single point-of-sale system. By integrating their point-of-sale,
ink! Coffee will improve the efficiency of their in-store staff to
better serve their customers, especially during peak hours. ink! Coffee
mobile gift account holders will be able to transact at the
point-of-sale, access their account balance and transaction history,
find the nearest ink! Coffee location, and reload their gift/convenience
account from their mobile phone.

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S1 Corp and Epson Reach a Deal

Financial solution software provider S1 Corporation has entered into a
partner agreement with Epson. Two S1 divisions, S1 Enterprise and FSB
Solutions, develop and market
integrated branch automation solutions and will resell Epson’s line of
receipt and validation printers, check scanners and other devices used
in financial institution branch offices. S1 Enterprise develops and
markets S1 Teller and S1 Sales & Service and FSB offers FSB Teller, FSB
Sales and Service, and FSB Teller & Branch Image Capture.
Epson is a manufacturer of highly reliable
point-of-service technology, including printers, precision printing
mechanisms and digital image scanners.

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Oberthur Technologies Unveils Smart Seal

Oberthur Technologies is introducing “Smart Seal,” a new, secure
packaging that will deter packaging fraud.”Smart Seal” joins other innovative Oberthur Technologies’ gift packaging products – including “Smart Pouch” and “Smart Fold.” “Smart Seal’s” patent-pending, heat and pressure process creates a seamless, tamper-resistant barrier around the gift card package. With “Smart Seal,” the only way to access the gift card is to tear or cut the package, making it easily detected that the product had been tampered.

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ABS Card Delinquency Reaches a New Record

For the second consecutive month, credit card delinquencies breached
all-time highs according to the latest “Fitch Credit Card Index”
results. At January month end, the 60 plus day delinquency rate was
4.04%. Credit card issuers typically charge off receivables after 180
days of delinquency or within 60 days of a bankruptcy filing. This
month’s rise in delinquencies indicates that gross charge-offs, at 7.40%
as of January month end, are likely to rise significantly in the near
term. Fitch’s “Prime Credit Card Delinquency Index” posted its second
consecutive record high last month reaching 4.04% up from 3.75% in the
prior month. The index has surged more than 23% in the last three months
and the latest figures are 30% above historical averages. The index
measures the percentage of credit card receivables that were reported
more than 60 days past due through January.

90+ DAY DELINQUENCY
Aug 08: 3.12%
Sep 08: 3.13%
Oct 08: 3.25%
Nov 08: 3.75%
Dec 08: 3.28%
Jan 09: 4.04%
Source: CardData (www.carddata.com)

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