ROAA Slips by Nine Basis Points in January

The return on average card assets declined in January by nine basis points and is now 34 basis points below year ago levels. However, the ROAA remains well over levels posted two years ago, according to CardData ([www.carddata.com][1]). “Return on Average Assets” is determined by dividing the after-tax return by the average managed card outstandings and then annualizing.

ROAA
Aug 07: 2.52%
Sep 07: 2.44%
Oct 07: 2.49%
Nov 07: 2.52%
Dec 07: 2.44%
Jan 08: 2.35%
Source: CardData (www.carddata.com)

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

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KTC JCB KAKKOII CARD

Krungthai Card and JCB International have partnered for the
launch of the “KTC JCB Kakkoii card” to appeal to Japanese
expatriates and tourists, a figure of nearly 1.2 million. With this, the
card will expand card services to tourist-related businesses, will
be promoted with KTC’s 30 million baht marketing campaign (which
hopes to acquire 100,000 card members before 2009), and will
provide membership benefits such as airport lounge access,
restaurant discounts and concierge services across 30 cities worldwide.
Furthermore, company projections foresee monthly spending on the
“KTC JCB Kakkoii card” at nearly 10,000 baht while KTC has over
1.94 million total accounts, 1.46 million of which are outstanding
credit cards.

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Union Bank Offers Paypass Debit MasterCards

San Francisco-based Union Bank of California is now offering Mastercard “PayPass” to its customers. Customers tap their “PayPass”-enabled debit cards on a PayPass reader located at the point of sale of participating merchants. For transactions under $25, most merchants don’t require customers to sign a receipt. To signal a customer’s purchase is complete, the reader will flash a light and produce a tone sound. The Union Bank of California Debit MasterCard PayPass card also has a traditional magnetic stripe and can be used anywhere debit MasterCard cards are accepted.

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RF ENABLED CHIP

Regarding a recent AP story, The Smart Card Alliance has provided
corrections to
claims of the security, or lack there of, of the RF-enabled chip.
Studies conducted
by a University of Virginia graduate student concluded that the chip
used on financial
payment cards lacked in security, when, in fact, the student studied the
effects of the
wrong chip. The RF-enabled chip studied is used primarily in transit
applications and
is not the same product used in contactless credit/debit cards or
electronic passports.
The Smart Card Alliance not-for-profit, multi-industry association provides
understanding, adoption and use of smart card technology for the
industry in the U.S.
and Latin America.

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Payment Data Systems 07 Volume Rises 65%

TX-based Payment Data Systems reported it set a new record by processing more than $100 million in credit card volume, up by 65% over 2006. Volumes for the fourth quarter were mixed with the transaction volumes decreasing by 11% from those of the prior year quarter; however, dollars processed were up 45%. Transaction volume in December grew 47% year over year. For complete details on Payment Data Systems’ latest performance, visit CardData ([www.carddata.com][1]).

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

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WINCOR INTELLIGENT DEPOSIT ATMS

UBI Banca has signed agreements with Wincor Nixdorf for the deployment
of intelligent deposit technology at its branch ATMs. With this development,
UBI Banca is hoping to improve branch efficiency with small deposit and
withdrawal automation at over 200 locations before 2009. The Wincor
Nixdorf automated solutions provide straight-through processing with
electronic processing, account crediting and no longer require customers
to complete tedious forms. Wincor Nixdorf has delivered over 250,000
ATMs with automatic-deposit capability to date, 15,000 intelligent-deposit/
recycling systems and currently holds a 50% European market share.

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Travelex VISA TravelMoney Earns an Award

The “Travelex VISA TravelMoney” prepaid card was named the category winner for “Best Consumer Card Program” at the “Paybefore Awards Gala” held during the “Prepaid Card Expo” in Las Vegas. In markets, such as the United Kingdom, product adoption has been supported by a high rate of recommendation, with 90% of users likely to recommend the product to a friend or colleague. Purchased by the majority of respondents for use on multiple trips abroad, it was the PIN and signature security of the product alongside the budgeting element of prepaid that attracted most users. The “Travelex VISA TravelMoney” card was launched in 2004 in the USA and more than 160,000 Travelex cards were purchased in 2007 totaling more than $150 million. The cards can be reloaded with cash as many times as desired and Travelex expects to issue 500,000 cards in 2008.

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MONTISE EXEC

Montise mobile banking and payment technology has appointed Ron
Drakeas as the VP of Business Development, bringing with him over
20 years’ experience in financial services. In his newly-appointed role,
Ron will oversee the development of the Company’s SEPA strategy
and lead electronic payment provider relationships. Drakeas’ 13-year
career as Managing Director of eFunds International, succeeding
managing director positions with Cincom Systems Ltd and Platinum
Financials respectively, has afforded the new VP well-established relations with
European retail banks and processors. Montise services span UK and
US territories with its “MONILINK” and Monitise networks in
partnership with VocaLink and Metavante Corporation, providing
secure mobile banking & payment services.

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Target Nears a Deal on its Card Portfolio

Target reported it is currently in negotiations with an investment partner to sell an undivided interest in approximately half of Target’s credit card receivables for about $4 billion. Target reported that its pre-tax credit card profits for the quarter ending February 2nd increased 12% over the year-ago quarter. Credit card outstandings for the quarter increased 28% year-on-year, topping $8.62 billion. Target says Target’s fourth calendar quarter pre-tax credit card profits were $137 million, compared to $157 million in the prior quarter and $122 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $8.624 billion as of February 2nd, compared to $7.652 billion for 3Q/07 and $6.711 billion one-year ago. Delinquency (60 days+) for 4Q/07 increased to 4.0%, compared to 3.8% in the previous quarter and 3.5% one-year ago. Charge-offs, as a percentage of period-end receivables, decreased to 6.4% for 4Q/07, compared to 7.0% in the prior quarter, but up from 6.1% one-year ago. During the third quarter Target announced it began reviewing potential ownership alternatives for its credit card business. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 2/27/08)

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

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RSA ENVISION

Flybe Airlines has deployed RSA’s PCI DSS compliance tool, “enVision”,
affording the Organization resources needed to meet guidelines for
protecting consumer data and to track access to network resources. The
“enVision” solution also allows Flybe to monitor activity automatically,
generate network activity reports automatically, is expected to safeguard
the Airline’s more than 20 million website visitors(85% of the Airline’s
travel
reservations are made online), and will provide added security to Flybe’s
more than 2,000 devices connected to its databases with efficient
troubleshooting. Flybe European regional airline provides air travel on 162
routes from 53 departure points and was recently awarded as the “Best
Management Team 2007”.

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Consumer Spending Index Heads South Again

As economic conditions trend downward, consumer purchasing appears to be at an important turning point, the Deloitte Research “Leading Index of Consumer Spending” has found. The index comprises four components — tax burden, initial unemployment claims, real wages and real home prices — that fell in January 2008 to 1.47% from a revised gain of 1.91% a month ago. This was the fourth consecutive fall in the index after September 2007.

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POLI SERVICE DISTRIBUTION

NETELLER and Centricom Ltd have signed agreements to jointly establish
“Centricom Europe” for the distribution of “POLi payment services”. “POLi
affords users a secure online payment method without being required to
disclose personal credit card information, extends online service/retail
access
to the under-banked and reduces the risk of fraud to both merchants and
customers. The “POLi” service solution accounts for 23% of total online
payment transactions across Australia and is operated by Centricom Europe
while NETELLER operates in 160 countries, providing an online payment
service that transfers billions of dollars per annum.

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