M-PAYMENTS FORECAST

New research is projecting that globally more than two billion consumers will be paying by the mobile phone by 2013. It is also projected that Western Europe and Far East & China will account for over 50% of the total digital goods gross transaction market value by 2013.
The report by Juniper Research also projects that today’s teenagers will be the drivers of mobile payments. Typical transaction sizes will
remain in the $3-$5 bracket, but a sufficient number of users will be using their mobiles to buy music, games, tickets, infotainment and the other digital goods sufficiently often to see gross transaction value grow nearly seven fold by 2013.

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ATM Software Analysis Report Issued

A new report from ATM
Marketplace, “ATM Software: Trends Analysis for 2007-2008” indicates
that ATM deployers are relying more heavily on
innovative software solutions to manage their networks. Many ATMs now
have features like envelope-free deposits, as well as
enhanced advertising and personalized transactions. Rather than using
proprietary software, ATM deployers are increasingly
moving to multivendor programs that can run across any Windows-based ATM
network, regardless of the type or brand of hardware.

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Commerce Bank Expands Card Offerings

Targeting the 60% of U.S. cardholders that routinely carry credit
balances, Commerce Bank is launching a new line of “Simply Flexible”
cards allowing cardholders greater control over their credit to turn
everyday purchases into rewards with the “Easy Rewards Platinum” and
“Cash Rewards Platinum” credit cards. The “Simply Flexible” and “Simply
Flexible Business Visa” credit cards offer lower interest rates as a
reward for financial responsibility, ultimately for greater financial
control with the option of selecting their standard APR based on their
monthly payment. These include a competitive standard APR of 7.99% when
10% or more of their monthly balance is paid. The cards provide
consumers no reward limits, no travel blackout dates and no travel
restrictions. Commerce Bancorp, acquired by TD Bank on March 31, 2008,
has over $119 billion in assets providing customers a full range of
financial products and services at nearly 1,100 locations across the
country.

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U.S. Bank Names a Healthcare Pay Exec

U.S. Bank has named Ralph Bernstein, previously with Exante Financial
Services, as SVP of healthcare solutions.
Bernstein will manage U.S. Bank’s new healthcare solutions business
that includes savings and payment products and services for
consumers, healthcare providers, and health insurers. Bernstein rejoins
U.S. Bank where he served as vice president of emerging
products and markets for the Corporate Payment Systems group from 1996
to 1999. He has also held leadership positions with LumenSoft USA,
Gelco Expense Network, and Electronic Data Systems. His background
includes management positions in credit and debit card issuing, product
development and management, sales, operations, and finance.

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HHONORS & AIR MILES

Alliance Data “Canadian Loyalty” marketing solutions has extended
existing sponsorship agreements with Hilton Hotels. With these
agreements, Hilton’s “HHonors Program” loyalty program will be a
national sponsor/reward supplier of Alliance Data’s Canadian “AIR MILES”
reward program allowing “AIR MILES” collectors to earn reward miles when
staying at any Hilton Family hotel and “HHonors” members such advantages
as no blackout dates on reward stays and the “Double Dip” feature, the
latter of which allows consumers to earn both AIR MILES reward miles and
Hilton HHonors points for the same stay. Hilton “HHonors” guest rewards
program has over 25 million enrolled members to whom the program offers
points, miles and rewards towards stays at more than 3,000 Hilton Family
hotels worldwide while the “AIR MILES” reward loyalty program allows
collectors to earn reward miles at more than 100 leading brand-name
sponsors for redemption of more than 800 different types of rewards.

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Hackers Charged in Breach of 9 Retailers

Federal prosecutors charged a group of hackers with the theft and sale
of more than 40 million credit and debit card numbers that occurred over
the past few years. It is the largest hacking and identity theft case
ever prosecuted by the DOJ. Eleven people were charged with the alleged
hacking of the customer databases of TJX Companies, BJ’s
Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports
Authority, Forever 21 and DSW. Three of the defendants are U.S.
citizens, one is from Estonia, three are from Ukraine, two are from the
People’s Republic of China and one is from Belarus. One individual is
only known by an alias online, and his place of origin is unknown.
The DOJ alleges that once inside the networks, the criminal ring
installed “sniffer” programs that would capture card numbers, as well as
password and account information, as they moved through the retailers’
credit and debit processing networks.

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Global Pay-by-Mobile to Hit 2B by 2013

New research is projecting that globally more than two billion
consumers will be paying by the mobile phone by 2013. It is also
projected that Western Europe and Far East & China will account for over
50% of the total digital goods gross transaction market value by 2013.
The report by Juniper Research also projects that today’s teenagers will
be the drivers of mobile payments. Typical transaction sizes will
remain in the $3-$5 bracket, but a sufficient number of users will be
using their mobiles to buy music, games, tickets, infotainment and the
other digital goods sufficiently often to see gross transaction value
grow nearly seven fold by 2013.

Details

S1 Corporation 2Q/08 Revenues Rise 7%

S1 Corp reported that second quarter revenue increased 7% to $56.5
million. Net income also increased from $4.9 million for 2Q/07 to $5.1
million. During the quarter S1 and message provider Clickatell partnered
to offer on demand text based mobile services for the S1 “Enterprise and
Postilion Internet Banking Solutions.” Also, GA-based Loves Travel Stops
& Country Stores deployed “Postilion” integrated processing/payment
switching on card transactions for its fleet card authorization and
transaction capture. S1’s “Postilion” software solutions introduced its
“ATM Driving” solution. S1 also announced today that its CFO, John
Stone, will leave the Company effective immediately, but continue to
serve as a consultant. Steve Dexter, the Company’s VP/Controller, has
been appointed Principal Accounting Officer. For complete details on
S1’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)). (CF Library 4/17/08; 5/6/08; 6/4/08)

S1 Corp Revenue Historical
2Q/07: $52.6 million
3Q/07: $51.3 million
4Q/07: $53.4 million
1Q/08: $54.7 million
2Q/08: $56.5 million
Source: CardData (www.carddata.com)

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TNS CONNECT

As a means of speeding transaction processing, the Co-operative Food
group division of the Co-operative Group has implemented Transaction
Network Services’ “TNS Connect” solution at 1,800 of its UK stores.
Providing resilient IP links for credit card transaction processing at
the POS, “TNS Connect” managed service will operate on high speed ADSL
broadband for as much as 80% shorter card processing and waiting times.
The TNS solution ensures the security and resilient transport of
sensitive card authorizations while helping the co-op meet PCI-DSS
compliance. The Cooperative Group currently has 2.5 million active
trading members and more than 80,000 employees through more than 4,000
trading outlets while TNS international data communications company
enables payments for customers in 28 countries.

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CardWizard Adapts to Smart Cards

Dynamic Card Solutions’ “CardWizard” software can now be used by
financial institutions and retail partners to issue chip-based Visa and
MasterCard co-branded credit cards instantly at retail store locations
to allow the benefit of interchange revenue sooner. This is unique in
that the EMV cards can be issued outside of traditional branch locations
for immediate customer use, eliminating the cost of hiring third party
vendors, to which financial institutions provide an added level of
security to protect customers’ information. DCS “CardWizard” is trusted
by over 400 financial institutions that issue ATM, debit, credit and
prepaid cards.

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GRAMEEN & OBOPAY

Obopay inked a major partnership with global micropayment specialist
Grameen Solutions. Working initially in Mumbai, India and in Bangladesh,
The “Grameen-Obopay Bank A Billion Initiative” will get underway in
October. The first-of-its-kind alliance plans to use mobile technology
to deliver banking services to a billion of the world’s poorest people
by 2018. Grameen was founded by Professor Muhammad Yunus, the founding
father of the microfinance movement and recipient of the 2006 Nobel
Peace Prize. Obopay works on any phone and any carrier to empower
consumers and businesses with the convenience of mobile payments.

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