Equens Processes Nearly 7B Transactions in 2006

Last year was the busiest year on record for Equens. A total of 7
billion payments transactions were processed, up 0.5 billion since 2005.
About 1.88 billion cash withdrawals and point-of-sale payments were
routed via Equens for authorization during the year. About 66.5 million
of these transactions were made using international payment products
(Maestro and credit cards). This represents a total increase of 7.4 %
compared to 2005 when the total number of point-of-sale payments and ATM
transactions was 1.75 billion. Equens is the first truly pan-European
full-service payment processor. The Company’s market share within the
euro zone is over 10%.

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NCR Continues To Lead Chinese ATM Market

NCR Corporation announced that it continues to lead the ATM market in
China. NCR led in 2005 with 33.7% of the market share. In 2006, NCR
had over 5,600 unit orders from the top four Chinese banks. The banks
include the Agricultural Bank of China, Bank of China, China
Construction Bank and Industrial & Commercial Bank of China. These
orders will roll-out through 2007, will utilize new technology and
be complete by years’ end. NCR is a global technology company helping
businesses build stronger relationships with their customers.

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PayPal Volume Rises 36% to a Record $11B

eBay reported that PayPal had 133.0 million total accounts at the end of the fourth quarter, a 38% increase from one-year ago. Total payment volume rose 36% to a record $11.0 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 37.6 million as of December 31st, its highest level to-date. During the fourth quarter, PayPal handled 172.0 million payments, an 18% increase over the prior quarter, and up 23% from 4Q/05. PayPal’s 4Q/06 transaction revenue rate declined to 3.66% after being flat at 3.73% for the prior two quarters, but down one basis point from one-year ago. The processing expense rate for the fourth quarter was 1.08%, compared to 1.09% for 4Q/05. PayPal’s transaction loss rate came in at 41 basis points, up 8 basis points from one-year ago. PayPal Merchant Services posted a record $3.9 billion in global TPV in the fourth quarter, representing a 57% increase from the $2.5 billion reported in the year ago quarter. PayPal recently announced an expansion of its “Buyer Protection” program, giving buyers up to $2,000 of coverage for qualified transactions on eBay.com. For complete details on eBay/PayPal’s fourth quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 1/12/07)

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
4Q/05: $ 8.1 billion 96.2 million
1Q/06: $ 8.8 billion 105.0 million
2Q/06: $ 8.9 billion 113.7 million
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
SOURCE: CardData (www.carddata.com)

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

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Consumers Groups Call for an Industry Cleanup

Consumer groups have banded together in asking Congress this morning to crack down on card issuers. Among some of the recommendations from the consumer platform: more sound underwriting principles; restrict youth lending; ban retroactive rate increases; ban universal default policies; ban pre-dispute binding mandatory arbitration; end roll-over or repeat late and over-limit fees; and toughen “Truth In Lending Act” penalties. The platform also calls for enhanced disclosure and an end to misleading or confusing credit card offers. The “Joint Credit Card Reform Platform” was created by ACORN, the Center for Consumer Finances, Consumer Action, Consumers Union, the Consumer Federation of America, Demos, the National Association of Consumer Advocates and the U.S. Public Interest Research Group.

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Sixty Mass Banks Impacted by TJX Security Breach

The Massachusetts Bankers Association reports that several banks across the State have reported incidents of fraud due to the recently disclosed data breach by the TJX Companies. Thus far, nearly 60 banks have reported into the MBA that they have been contacted by the card companies about compromised cards and these banks are notifying customers and in many cases reissuing new cards. The fraudulent use of debit and credit card data has thus far been used to make purchases in Florida, Georgia, and Louisiana in the U.S., and Hong Kong and Sweden overseas. Last week TJX Companies publicly disclosed a security breach that may affect more than 40 million signature-based general purpose credit and debit cardholders worldwide. The latest hack took place between mid-May and December of last year and TJX acknowledged a similar hack in 2003 that may have accessed credit and debit card sales transactions in TJX’s stores in the U.S., Canada, and Puerto Rico. The latest intrusion involves the portion of TJX’s computer network that handles credit card, debit card, check, and merchandise return transactions for customers of its 826 T.J. Maxx, 751 Marshalls, 271 HomeGoods and 162 A.J. Wright stores in the U.S. and Puerto Rico, and its 184 Winners and 68 HomeSense stores in Canada, and may involve customers of its 212 T.K. Maxx stores in the U.K. and Ireland. The intrusion could also extend to TJX’s 36 Bob’s Stores in the U.S. (CF Library 1/19/07)

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Obopay Appoints CTO for India Market

Obopay has announced the appointment of a new chief information and
technology officer, Aditya Menon. Menon was previously CIO at Yes Bank.
Obopay is the first complete mobile
payment service in the U.S. that instantly lets consumers get, send and
spend money directly from their mobile phones to anyone, anywhere and
anytime.In an effort to provide global consumers the convenience of
mobile payments, Obopay has embarked on the Indian market, the
fastest-growing mobile market with more than 120 million subscribers.
India’s market is growing at a rate of six million new subscribers every
month and mobile phone users outnumber credit/debit card holders by as
much as 2.5 to 1.

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Senate Opens Credit Card Hearings Today

The U.S. Senate Committee on Banking, Housing, and Urban Affairs will open a hearing this morning to explore the business practices of the U.S. credit card industry. The hearing titled “Examining the Billing, Marketing, and Disclosure Practices of the Credit Card Industry, and Their Impact on Consumers.” will begin at 9:30 AM. Among witnesses to testify today: Professor Elizabeth Warren of the Harvard Law School; Robert Manning, author of Credit Card Nation; Michael Donovan, an attorney with Donovan and Searles; John Finneran of CapitalOne; Richard Vague, CEO of Barclaycard U.S.; Carter Franke, EVP of JP Morgan Chase; Tamara Draut of Demos; and Travis Plunkett of the Consumer Federation of America.

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