Ingenico-Hypercom Offer Bites the Dust

After being rebuffed yesterday by Hypercom over its proposed merger, Ingenico said that it simply does not see any way to proceed. Ingenico noted that it learned two days ago that under the terms of Hypercom’s agreement with Thales, they were not free to enter into a transaction with Ingenico that does not include the Thales assets. The Company says it was disappointed that it did not have a genuine opportunity to move forward with the offer it put before the Hypercom board and shareholders. Last week Ingenico offered to buy Hypercom for $332 million, a 52% premium over last week’s share price, as well as an approximate 83% premium over Hypercom’s current enterprise value. (CF Library 2/11/08)

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TSYS and Telrock to Provide SMS Solutions

TSYS and UK-based Telrock are planning to develop a suite of integrated mobile solutions for TSYS’ North American clients.The solutions will include a suite of SMS-based mobile services, including fraud alerting, account notifications, customer inquiries and payments. Telrock specializes in the design, development and integration of solutions using mobile technology for payments, money transfers and other mobile-based transaction services such as fraud alerts and account information requests.

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Wal-Mart MoneyCenters Extends MoneyGram

Thomas Lee Partners and Goldman, Sachs are making a $700 million+ investment into MoneyGram International. The Company also entered into an agreement with affiliates of Goldman Sachs to provide debt financing of up to $500 million, with additional $200 million to follow. MoneyGRam also announced a multi-year extension through January 2013 of its financial services agreement with Wal-Mart. MoneyGram provides the money transfer, urgent bill payment and money order services for customers in more than 3,500 Wal-Mart stores, including Wal-Mart MoneyCenters. MoneyGram has more than 143,000 agents worldwide. In December, Euronet Worldwide propositioned MoneyGram with an offer of a tax-free, all-stock transaction acquisition valued at $1.65 billion. (CF Library 2/13/07)

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MICROREAD

NSIDE Contactless’ “MicroRead” mobile payment solution has been
recognized and awarded by the GSM Association as having the “Most
Innovative Device-Centric Technology” at the Annual Mobile Innovation
Global Awards of 2008, which took place on February 12, 2008.
“MicroRead” has been adopted by handset manufacturers to enable
contactless payments using mobile phones around the world, is self-
powered with a battery-off mode and is operative in the Company’s
“Pay-Buy-Mobile” initiative. This initiative provides a single approach to
enable mobile operators to accelerate deployment of applications. The
GSM Association global trade association represents 700 mobile phone
operators across 218 countries, which serve over 2.5 billion users, while
INSIDE Contactless provides NFC, contactless payments and access
control with the implementation of its more than 55 patents and deployment
of more than 35 million MicroPass intelligent payment platforms.

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ConveniaLoad Offers EDebitPay Loading Options

EDebitPay and ConveniaLoad have teamed to give EDebitPay prepaid cardholders more than 10,000 bank loading locations including Wells Fargo, Bank One, U.S. Bank and Wachovia. According to Forbes.com, approximately $117 billion in transactions were anticipated in 2007 using prepaid plastic, a number that could soar to $257 billion by the end of 2009. EDebitPay is a performance-based marketing company in the online interactive marketing industry. ConveniaLoad is managed by Western Financial, which provides financial services including ATMs, merchant processing solutions, check cashing services and Stored Value Card technology.

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U.S. Merchant Systems Launches AutoTranz

CA-based U.S. Merchant Systems has launched AutoTranz, a new division of the company developed exclusively to assist automobile dealerships with their payment processing needs. AutoTranz offers their automotive dealership customers processing for credit and debit transactions at true VISA, MasterCard and Discover costs, separated accordingly so that the markup is clearly delineated. A Customized Check Guarantee system is provided for each individual dealership, including Pick Payment and Hold Check programs, for customers looking to manage their cash flow, specialists to assist auto dealerships in training and follow-up to insure the effectiveness of this innovative program. AutoTranz is also working with automobile dealerships on creating and providing “Loyalty Cards” for car browsers to convert them to customers.

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INGENICO & HYPERCOM

Ingenico’s offer to buy Hypercom is being described as a “hostile overture.” Ingenico recently filed a lawsuit against Francisco Partners, which is financing Hypercom’s acquisition of Thales’ e-Transactions business. Hypercom also says that Ingenico’s newest ploy is to make private negotiations public. Hypercom says the potential harm to its shareholders of failing to pursue the acquisition of the e-Transactions business was significant. This week, Thales informed Hypercom it may abort the transaction, retain Hypercom’s $10 million deposit and seek other remedies if it did not sign the “Stock Purchase Agreement.”. Hypercom’s share price rose sharply yesterday on the merger proposal. Ingenico yesterday offered to buy Hypercom for $332 million, a 52% premium over last week’s share price, as well as an approximate 83% premium over Hypercom’s current enterprise value. (CF Library 2/11/08)

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VF’s Vx Solutions Earn EAL4 Certification

VeriFone has achieved “Common Criteria EAL4” for its “Vx Solutions” payment systems, including the “Vx 670,” “Vx 570,” “Vx 610” and “Vx 510”. The “Common Criteria EAL4” security requirements evaluate the integrity of PED systems from design and development to production, product evolution and utilization. Assurance under Common Criteria EAL4 has been mandated by APACS as a supplement to the existing PCI PED requirements, providing a very high level of security for PIN entry devices in use in the UK. It is a requirement for all PIN Entry Devices deployed in the UK to meet this standard.

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Paymetric Solutions Certified by SAP

Houston-based Paymetric has received SAP “Powered by NetWeaver” certification for both its “XiPay” and “XiPayNet” credit card acceptance solutions against SAP’s new Enterprise Service interface for payment card processing. Paymetric’s integrated credit card acceptance solutions enable companies to accept, manage, and protect payment card transactions across a variety of enterprise applications, including SAP. XiPay is an “on premise” payment processing engine for payment card transactions that originate in SAP and flow to a credit card processor or gateway for authorization and settlement. XiPayNet is an “on demand” web-based service that drives payment card transactions from SAP through processors and gateways with low upfront costs, minimal maintenance requirements and fast implementation.

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CREDIT INDEX

Indicating consumers are increasingly timid about spiraling themselves
into debt, the Veda Advantage “Consumer Credit Demand Index” reflects
credit card and personal loan applications have decreased, for the first
time
in 4 years, during the year 2007. These findings correspond to a 35.5%
increase in payment defaults during the same period while, during 2H07,
consumer credit applications decreased by 2% (70,0000 less) since 2H06.
The last 3 months of 2007, however, did see a 0.6% increase over 4Q06
while personal loan inquiries for 2H07 decreased by 5.8% since 1H07. Veda
Advantage is a major business information provider regarding such issues as
privacy, data security and business intelligence and has a database of over
14 million Australian credit files.

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Barclays U.S. Taps Firstsource Solutions

Firstsource Solutions has signed a deal to manage a Barclays operations center in Colorado Springs. Barclays opened the operations center in 2005 to primarily handle customer-service calls for its U.S. credit card business. Firstsource, headquartered in India, will oversee day-to-day operations at the center. The call center currently handles approximately 15,000 inbound calls each day and employs a total of about 370 people. The operations center also provides collections and fraud-prevention services. Firstsource employs more than 2,400 people in the U.S. and is seeking to expand its U.S. operations.

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