SAGEM SECURITE & EU

Sagem Securite will be coordinating the TrUsted Revocable Biometric
IdeNtitiEs (TURBINE) project for the development of digital identity
solutions. Other contributers to the effort include such organizations
as Philips Research Europe, Sagem Orga, Precise Biometrics in Sweden,
Cryptolog, ARTTIC in France and 3D-GAA in Greece. Combining automatic
fingerprint recognition and innovative cryptographic techniques, the
project is focal on developing solutions to allow designated fingerprint
functionalities and cryptographic techniques when users are accessing
personal information. In doing so, this research could lead to
fundamental changes to the manner in which personal data is protected.

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FIS & BANCO REAL

Fidelity National Information Services (FIS) has converted Banco Real’s
5 million Card Portfolio to Fidelity Processadora e Servicos S.A, its
Brazilian card servicing company. With this development, the Brazilian
Fidelity branch now provides processing for over 22 million cards in the
country, which includes a range of card processing and support services.
Among the services provided includes call center management, back-
office support, card transaction processing, risk management and
collection services. Banco Real had a 2007 annual profit of R$ 2.975
billion, over 33,000 employees, approximately 2,000 branches and offices
operating 9,800 POS countrywide while FIS is headquartered in
Jacksonville and provides nearly 9,000 financial institutions in 90
countries worldwide with its processing services.

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Discover/Pulse Inks Seven Debit Card Deals

Discover’s Pulse will be issuing debit cards for First National Bank in Munday, First National Bank of the Mid-Cities, The First National Bank of Baird, The First National Bank of Barnesville, The First National Bank of Weatherford, The First Security Bank and ValueBank Texas. Issued at varying stages of implementation with each bank, The “Discover Debit” card serves as an alternative to VISA and MasterCard’s signature debit products, charges lower network expenses and ensures secure practices. Additionally, Discover provides products targeted toward consumers and small businesses while many third-party EFT processors are now, or are in the process of becoming, certified to support the debit card solution. PULSE ATM/debit networks serve over 4,500 financial institutions across the country providing access to nearly 265,000 ATMs and is a subsidiary of Discover Financial Services.

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Hypercom’s Restaurant Terminal Gathers Steam

Hypercom’s “SPOS32” is now available for use at restaurants to enable customers to pay directly into a POS “Pay by Customer” platform. When “Pay-by-Customer” software features are activated, customers never have to hand their credit or debit card over to the waiter. Instead, the waiter simply brings the compact payment device to the table and presents it to the customer. The customer verifies the amount of the bill that appears on the device’s screen, selects a tip, swipes his card, signs his name and takes a copy of the receipt. The consumer-activated, high-security Optimum devices combat credit card “skimming,” a growing form of fraud that is prevalent in restaurants and other environments where consumers hand over their payment cards to be processed out of their sight. Skimming victimizes consumers, causes havoc with merchants, and costs the credit card industry millions of dollars every year. Pay-by-Customer software features include automatic tip calculation, signature capture, password protection to prevent customers from altering the bill, and multiple waiter/server IDs. Additionally, Hypercom’s mobile payment terminals come with a wide range of communication options, including Bluetooth, WiFi and GPRS.

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AIRPLUS AND AIR CHINA

AirPlus International has partnered with Air China to offer the ‘Air
China AirPlus Company Account”
to be released in July prior to the Olympic Games. “The Air China
AirPlus Company Account”
provides corporate travel managers
a convenient central payment tool for air travel and access to
aggregated data through internet-based travel expense reporting and
electronic invoicing. With this consolidated data, customers can achieve
comprehensive analysis of their travel-related expenses; thereby saving
time and recognizing tangible cost reduction. In addition, this product
will allow Air China customers exclusive access to special corporate net
rates and Air China loyalty program. Within the framework of the
collaboration,
Air China corporate customers
will also gain access to the “AirPlus Information Manager” which enables
analysis of all travel services; helping companies recognize
cost-cutting opportunities and optimize the controlling of their
business travel costs more effectively than ever before. Another unique
feature of the product is that it will provide access to Air China’s
flown data so that companies can track whether their tickets have been
used, thereby speeding up the refund process and cutting down on the
volume of unused tickets. Additionally, AirPlus has founded a
subsidiary company
in China – the AirPlus Payment Management Co. Ltd. based in Shanghai.
The new subsidiary will intensify the customer liaison and support the
local roll-out of the joint payment solution.

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PayPay’s Q1 Revenue and Volume Jump 30%+

eBay reported that PayPal posted $582 million in first quarter revenue, an increase of 32% year-over-year. Net total payment volume for the quarter was $14.4 billion, an increase of 34% over 1Q/07. At the end of the quarter PayPal had 60.2 million active accounts, a 17% increase from one-year ago. During the first quarter, PayPal handled 211.0 million payments, a 3% increase over the prior quarter, and up 23% from 1Q/07. PayPal’s 1Q/08 transaction revenue rate increased to 3.88% from 3.84% in the prior quarter. The processing expense rate for the first quarter was flat at 1.18% from the prior quarter, but up from 1.15% in the year ago quarter. PayPal’s transaction loss rate came in at 24 basis points, down 6 basis points from one-year ago. During the first quarter PayPal signed Merchant Service account deals with JetBlue Airlines, Ferrari Store (Italy), CompUSA and Office Depot (U.K.), among others; completed the acquisition of Fraud Sciences to accelerate the development of its fraud detection tools; and expanded its seller protection plan for eBay Power Sellers. For complete details on eBay/PayPal’s first quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/07: $10.8 billion 51.3 million
2Q/07: $11.1 billion 52.8 million
3Q/07: $11.6 billion 54.8 million
4Q/07: $14.0 billion 57.3 million
1Q/08: $14.4 billion 60.2 million
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

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ABS Card Charge-Offs Approach 3-Year Highs

Charge-offs, among “prime” credit card-backed securities, continued its upward path in March hitting a new eighteen month high. Not surprisingly, delinquency rates are also on the upward trend. According to FitchRatings, “prime” charge-offs for March were 5.73% compared to 5.55% in the prior month and 4.36% for March 2007. Although charge-offs and delinquencies are nearing their three-year highs, U.S. credit card ABS continue to generate robust levels of excess spread. Excess spread is a measurement of the extra cash flow generated by securitized credit card receivables and is a barometer for the health of credit card transactions. Fitch’s “Prime Credit Card Index” for March 2008, which aggregates trust performance through the end of February, reports three-month average excess spread at 7.56%. Excess spread has hovered around this 7.5% level since the second quarter of 2006; prior to that the excess spread level averaged approximately 6.5%.

ABS PRIME CHARGE-OFFS HISTORICAL
Mar 07: 4.36%
Apr 07: 4.51%
May 07: 4.63%
Apr 07: 4.51%
May 07: 4.63%
Jun 07: 4.60%
Jul 07: 4.52%
Aug 07: 4.88%
Sep 07: 4.75%
Oct 07: 4.50%
Nov 07: 5.11%
Dec 07: 5.21%
Jan 08: 5.44%
Feb 08: 5.55%
Mar 08: 5.73%
Source: FitchRatings

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Pipeline Data Acquires Mobileswipe Assets

MA-based Pipeline Data payment processor has acquired “Mobileswipe”, its national trademark, website and customer list from the Semtek Innovative Solutions Corporation. This development provides Pipeline’s AIRCHARGE division with an opportunity to expand its customer base, market presence and requires no changes for Mobileswipe hardware compatibility. Pipeline Data provides merchant payment processing services and payment card payment processing to merchants across the country.

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RBC VISA INFINITE

Advanced Payment Solutions and Metavante have signed agreements
stipulating the latter will be providing the former with prepaid card
processing. This development, concerning APS’ entire prepaid card
portfolio, is already being implemented and all portfolio transfers will
be complete by the end of April ’08-a migration representing over
200,000 account customers transitioning to Metavante Technologies
Ltd.’s platform. Since 2005, APS’ prepaid portfolio saw a total prepaid
loading volume of more than EUR200 million onto its cards. Additional
research providing a promising outlook on the future of this industry
reflects prepaid payment card spending in Europe is estimated to reach
$164 billion by 2010 and in the U.K. is projected to reach $34 billion
(USD) by 2010. Metavante Technologies debit and prepaid card payments
processor provides it s services to nearly 8,000 financial
organizations, processing for over 80 million cards worldwide.

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Fiserv & BankAtlantic Promote Green Initiatives

Fiserv has partnered with FL-based BankAtlantic to donate trees for every BankAtlantic customer that signs up for online bill pay to encourage more “green” payment methods. BankAtlantic provides customers with Fiserv’s online bill payment solution, “CheckFree Web RXP”, under an agreement with FundsXpress, a value-added reseller and provider of Internet-based solutions to financial institutions. Customers can register for BankAtlantic’s Totally Free Online Banking & Bill Pay at www.BankAtlantic.com or at any of its more than 100 locations throughout Florida. In addition to the environmental benefits, paying bills online rather than sending paper bills through the mail provides consumers with better security and control of their finances. Consumers can schedule payments on the date of their choosing and more easily monitor and manage account balances. Because recent studies show that identity fraud is more common offline than online, electronic bill pay also helps to reduce the risk of identity theft. According to a 2007 green banking study by Javelin Strategy and Research, if all U.S. households viewed and paid bills online it would save 16.5 million trees each year.

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