VISA PAYWAVE

Specialty coffee retailer Second Cup is now offering the “Visa payWave”
contactless payment method. Contactless payments deliver speed and
convenience to participating merchants and Visa cardholders while
offering the security benefits
inherent in chip technology and 360 Second Cup stores in Canada will be
equipped with “Visa payWave” enabled terminals by March 31, 2009. Second
Cup is Canada’s largest specialty coffee franchisor and operates more
than 360 cafés across Canada.

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WU Launches First Global Brand Initiative

For the first time in the company’s 150-year history,
Western Union has launched its first-ever comprehensive global brand initiative. The new “YES!” campaign, produced in conjunction with Publicis Hong Kong, features artists such as film director Antoine Bardou-Jacquet, photojournalist Steve McCurry and typographer David Carson. The television commercial features music by Moroccan musician Hindi Zahra. The creative behind Western Union’s campaign centers on the optimism and hope inherent in the word “YES!” and highlights tangible acts that bring the brand to life. The “YES!” brand campaign elements will be translated into 40 languages and includes print, broadcast and online advertising; online consumer engagement via a dedicated campaign microsite; a cause marketing promotion tied to The Western Union Foundation; street art, billboards and other out-of-home creative; and POS materials for more than 320,000 Western Union Agents in more than 200 countries and territories.

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MONEYBOOKERS & EBAY

Moneybookers has inked a deal to integrate on eBay as an official payment provider beginning in February. Moneybookers USA will charge between 1.9% + $0.29 per transaction and 2.9% + $0.29 per transaction based on monthly domestic sales. For eBay sales under $3,000 the rate is 2.9% + $0.29; between $3,001 and $10,000 the rate is 2.4% + $0.29; between $10,001 and $100,000 the rate is 2.1% +$0.29 and for monthly sales above $100,000 the rate is 1.9% + $0.29. Last year, Moneybookers had 6.2 million accounts and total transaction volume of 3 billion euros. Over 30,000 partners including global brands such as Skype, AOL and Ricardo are on its network. Items totaling almost $60 billion in value were traded on eBay globally in 2007 and the auction site currently has over 86 million active users worldwide.

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Mobile Money Research Service is Unveiled

ABI Research has launched “Mobile Money Research Service.” It provides market data, analysis, and forecasts relevant to all the major stakeholders in this market: banks, financial services organizations, credit card processors, chip manufacturers, mobile device OEMs, Near Field Communications (NFC) suppliers, mobile network operators, system integrators, merchants and more. The new service provides a comprehensive view of the technologies, infrastructure, services, devices, supply chain participants, ecosystem partnerships, verticals, and customer interests/preferences driving the market for mobile commerce and banking services using the mobile phone. The new “Mobile Money” service will include many of the research components common to other ABI Research Services: full-length Research Reports, shorter Research Briefs, Market Data products, ABI Insights, and analyst inquiry support.

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SINNAD

For the first time during a holiday season, credit card outstandings for December declined from the prior month by GBP 86 million. Year-on-year growth for credit card outstandings has been slowing, from an 8.6% rate in November to 7.8% for December. According to the The Bank of England, net credit card lending edged down to GBP 52.8 billion in December from GBP 52.9 billion in the prior month and compared to GBP 49.0 billion one-year ago. The increase in total net lending to individuals in December of GBP 2.2 billion was higher than the November increase, but below the previous six-month average. The twelve-month growth rate slowed further, to 3.6%, and the three-month annualized growth rate ticked up by 20 basis points to 1.5%. The increase in net consumer credit in December of GBP 300 million was below the increase in November and the previous six-month average. While net credit card lending decreased, net other loans and advances rose by GBP 400 million. The annual growth rate of consumer credit continued to slow, to 5.0%; the three-month annualized growth rate ticked up by 10 basis points, to 2.9%.

NOTE: Chart does not include about GBP10 billion from specialist lenders, retailers, and insurance companies. SOURCE: Bank of England

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12% Advanta Charge-Offs Spur a 37%+ APR

While some top issuers have pulled back on the marketing of business
cards, the performance metrics of a business card specialist reveals the
rapid meltdown during the current 15-month old recession. Advanta, with
one million business credit card accounts and about $5 billion in
outstandings, has progressed in four quarters from an issuer with
charge-off ratios below industry averages to an issuer plagued with
charge-offs about twice the industry average. As a matter of fact
compared to the fourth quarter of 2007, Advanta’s charge-offs have
nearly tripled. According to CardData (www.carddata.com), Advanta’s
quarterly charge-offs for 2007 hovered between 3.3% and 4.1%. In 2008
charges-off exploded from 6% in Q1, to 8% in Q2, to 10% in Q3 and to 12%
in Q4. During the same period in 2008 average charge-offs for the
industry increased from 4.6% to 6.0%. In response, the issuer has
tightened underwriting, closed accounts more than 30 days past due and
is now charging interest rates as high as 37.18%, (the highest APR ever
charged by a non sub-prime issuer.) Among sub-prime issuers, CompuCredit
has charged rates above 40% for some of its card products, according to
CardTrak ([www.cardtrak.com](http://www.cardtrak.com)). For complete details on Advanta’s latest
performance visit CardData ([www.carddata.com](http://www.carddata.com)).

Advanta Industry
4Q/06: 3.4% 3.8%
1Q/07: 3.3% 3.9%
2Q/07: 3.5% 3.7%
3Q/07: 3.9% 4.1%
4Q/07: 4.1% 4.2%
1Q/08: 6.4% 4.6%
2Q/08: 8.4% 5.3%
3Q/08: 10.0% 5.5%
4Q/08: 12.0% 6.0%
Source: CardData (www.carddata.com)

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CASHBOX GROWTH

ATM provider Cashbox plc reports that the installed base of
transacting machines was 2,838 on 31 December 2008,compared to 2,045 at
30 June 2008, with sufficient ATM stock in
warehouse to meet installation requirements for the remainder of the
financial year. The increase in machine numbers is essentially
attributable to the acquisitions that took place during the second half
of 2008. The Group expects to announce its Interim Results for the six
months ended 31 December 2008 during March 2009.

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American Express OPEN Sponsors M3 RACE

American Express OPEN announces the kick-off of the year long “M3 Race”
competition for women entrepreneurs. “Start it, save it or grow it”
is a mantra started by the Make Mine a Million $ Business RACE team
that is providing a platform for women to
start new businesses, offering lifelines to those businesses looking for
help, and supplying healthy businesses with resources to grow to the
next level.
The M3 RACE inspires women to challenge themselves and each other to
realize their vision for the company and reach their revenue targets.
Just like walk/run marathons, women can choose their own pace for their
2009 business revenue goal: $250,000, $500,000, or $1,000,000 or more.
The Grand Prize winner will receive a $100,000 cash prize and a year of
marketing, advertising and media opportunities. Women own more than 10
million businesses, yet only 2.6% or 242,000
report more than $1 million in revenue, with the majority generating
revenues below $50,0001. Every new business creates a minimum of one
job, addressing
a critical need in these challenging economic times. The M3 RACE is
addressing economic turmoil and joblessness head-on and empowering women
business owners to be a driving growth engine for the U.S. economy.

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GEMALTO PARTNERSHIPS

Gemalto has established an exclusive business
alliance with Corporacion Cardtech, supplier of
magnetic stripe bank cards, and Newtech Solutions, a consulting and
technical support organization that specializes in EMV. Under the new
agreement, banks in Venezuela working with Corporacion
Cardtech and Newtech Solutions will have access to expertise, consulting
services, smart cards and technology from Gemalto, the world’s leading
provider of EMV cards. EMV cards embed a microprocessor and software
with security features that work together with the payment transaction
authorization network to prevent card fraud and identity theft and
better protect consumers. Unlike with magnetic stripe only cards, smart
cards based transactions cannot be easily cloned, which is a primary
source of fraud throughout Latin America. The software loaded in EMV
microprocessor cards not only increases security, it opens the door for
banks to deploy other exciting programs for their customers, such as
loyalty schemes that enable merchants to offer rewards to their best
customers automatically when they shop at their store. The
partners estimate that eight million EMV cards will be issued in the
first year, starting in June 2009. Approximately 16 million debit and
credit cards are currently in use in Venezuela.

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Another HPY Lawsuit is Filed Over Breach

Another class action lawsuit has been filed on behalf of consumers
against NJ-based Heartland Payment Systems over a recently discovered
security breach. Philadelphia-based Berger & Montague filed the suit
last week in the U.S. District Court for the District of New Jersey.
PA-based Chimicles & Tikellis also filed a similar lawsuit against HPY
in the same court. Two weeks ago Heartland confirmed it was the victim
of a security breach within its processing system last year. The
intrusion was discovered in January, but the processor believes it is
contained. The Company insists that no merchant data or cardholder SSNs,
unencrypted PIN, addresses or telephone numbers were involved in the
breach. In January, HPY formed an internal department dedicated
exclusively to the development of end-to-end encryption. Heartland
delivers credit/debit/prepaid card processing, payroll, check management
and payments solutions to more than 250,000 business locations
nationwide. (CF Library 1/21/09; 1/28/09; 1/30/09)

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CyberSource 4Q/08 Revenue Soars by 37%

CyberSource posted a 37% increase in fourth quarter revenue of $62.3
million. During the quarter the Company processed a record $28 billion
in transactions and added a record 27,700 new customers. Net income for
the quarter was $10.0 million, compared to net income of $1.2 million
for 4Q/07. During the fourth quarter, the Company processed a record 547
million billable transactions, a 31% increase over the same period the
previous year, and increased its installed base to 253,000 active
customers. CyberSource’s European operations processed a record 127.4
million transactions in the fourth quarter, an increase of 72% over
4Q/07. Global acquiring revenue rose 37% for the quarter. Also,
CyberSource signed up 450 new ISO and Affiliate resellers. For the first
quarter the Company expects total revenue to be approximately $60.0
million and expects to process between 520 to 525 million billable
transactions. For complete details on CyberSource’s latest performance
visit CardData ([www.carddata.com](http://www.carddata.com)).

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