Off-Line Debit PDV Continues to Climb

Signature debit card purchase volume in the USA is now growing at an annual pace of 19%, compared to 21% in the prior quarter. During the first quarter, consumers and businesses charged $150.2 billion to their off-line debit cards for purchases. Year-over-year, MasterCard’s signature debit card purchase volume is growing at a 25% clip, compared to VISA’s 18%. VISA posted $116.3 billion in first quarter signature debit card purchase volume, with $109.8 billion coming from consumer debit cards. MasterCard reported $33.9 billion in off-line PDV for 1Q/06. For complete current and historical statistics on the U.S. signature debit card market, visit CardData ([www.carddata.com][1]).

U.S. SIGNATURE DEBIT SNAPSHOT
(Purchase Volume Only)
1Q/05
VISA $116.3b
MasterCard $ 33.9b
TOTAL $150.2b
Source: CardData (www.carddata.com)

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

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Beaches Drive Summer Card Volume

A new MasterCard survey has found that Americans prefer to spend their down time luxuriating on a warm, sunny beach over any other activity. However, twenty-six percent of respondents were more concerned about losing their credit cards, travel documents (25%) or getting sick (24%) when compared with losing luggage (15%) or getting into an accident or otherwise damaging a rental car (10%). The preference for sun and surf was shared across all ages, income levels, genders and regions, the survey found. The survey also found that while Americans may dream of visiting far-off and exotic locales, when it actually comes to booking a vacation, few venture outside the country.

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APACS Launches Consumer Help Website

APACS has updated its Web Site, www.choosingandusing.com,
designed to help consumers make sensible decisions when choosing and
using a credit card. The site
has been updated to provide the latest information on a number of key
credit card features and provides new downloadable guides on choosing
and using credit cards. APACS says www.choosingandusing offers unbiased information
to help people decide which credit cards best suits their needs and if
they want to use them as a borrowing tool, the benefits, potential risks
and terminology around using and borrowing money on credit cards. The Web site has approximately 3,000 visitors per month. APACS is the UK payments association.

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NBD Hires CTL to Add Loyalty to its New MasterCard

The National Bank of Dubai has teamed with Dnata Travel
Services to launch a new co-branded MasterCard product using
Card Tech Limited’s “PRIME” solution. The new “NBD-Dnata MasterCard” credit card offers reward points every time cardholders use their card.
Accumulated points can be redeemed at selected Dnata outlets for
products or services, including tickets at more than 130 airlines and
exotic holiday packages. Card Tech Limited has been providing payment
association certified solutions to the bankcard sector since 1989. More than 190 banking clients from 70 countries use CTL systems. The
National Bank of Dubai is the oldest, locally incorporated bank in the
Southern Gulf.

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E-Bills Hit Critical Mass in 2005

A new study has found that 69% of U.S. online households say they are paying at least one bill online, up from 56% in March 2005. The “Consumer Billing and Payment Trends” survey from CheckFree Research Services and The Marketing Workshop also found that online payments are steadily replacing check writing as the way to pay bills among those surveyed with paper checks used for 37.5% of all bill payments and online payments used for 35%. More than 60% of consolidated users with e-bill rated themselves as very satisfied with online banking, versus 54% of consolidated users without e-bill and 51% of consumers who use online banking but do not pay bills online.

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PPI and USTI Team for Utilities

Payment Processing has formed a partnership with United System S Technology to offer an integrated payment processing solution for utility billing. By integrating the PPI PayMover gateway with USTI’s ePay solution, USTI and PPI provide one resource for bill presentation and payment needs, enabling municipalities to operate more efficiently and more profitably by eliminating paper bills, manual envelope stuffing and postage costs.

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Card Issuers Face Many Roadblocks

A new report suggests that inflation, rising interest rates, higher minimum payments and the debit card shift is hitting traditional credit card issuers between the eyes. The research says that credit card issuers need to look more closely at consumer behavior to survive in the new market. TowerGroup says credit card issuing banks have traditionally done a solid job of dealing with environmental and regulatory challenges but may not be ready to navigate the uncharted waters ahead. TowerGroup believes the increase in minimum card payment is likely to dampen credit card use and increase delinquencies. Also, the rise in interest rates will revert the positive movement in write-off that issuers have experienced in early 2006. Additionally, TowerGroup expects that the continued consumer shift to debit cards as well as rising prepaid card adoption will reduce the overall transaction volume of base credit card receivables and therefore reduce transaction-based economies of scale.

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Schwab & Partner Group to be Acquired by ITG

ASSA ABLOY Identification Technology has acquired Schwab & Partner
Group. Through this acquisition, SSA ABLOY ITG will strengthen its
contactless card manufacturing and customization capacity, shorten
delivery times as well as enable the global sales forces to offer
greater variety of technology cards. Schwab & Partner Group is a
producer of contactless cards for the ski, public transportation and
access control markets. ASSA ABLOY is a manufacturer and supplier of
locking solutions.

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AmEx Intros PowerStop at LaGuardia

American Express unveiled the “PowerStop” business center at LaGuardia for business travelers using the Delta Shuttle service. Services include wireless high-speed internet access throughout the terminal, connection to 10 workstations equipped with power outlets for easy workspace access, four Apple iMac personal computers for quick and secure Internet access, as well as copy and fax machines and a VIP lounge and conference room for last minute meetings and calls.

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Giesecke & Devrient Unveils Contactless Product Suite

Giesecke & Devrient has developed the “Contactless Product Suite” which
makes small-scale antennas available for radio frequency
transmission on the basis of new antenna technology. The smaller
MasterCard “PayPass” form factor will be issued first to customers
in North America. Despite their reduced size, the devices meet the
“PayPass-ISO/IEC 14443” specifications and achieve excellent radio
frequency performance. Giesecke & Devrient provides smart
card technology.

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Cardtronics’ Q1 Revenues Rise 18.5%

Houston-based Cardtronics posted an 18.5% increase in first quarter revenues to $58.3 million. Average transacting ATMs for the first quarter totaled 26,207, representing an increase of 6.3%. Cash withdrawal transactions increased 14.5% to 30.0 million during the first quarter compared to the same period in 2005. Cardtronics says the strong performance was driven by acquisitions of BAS Communications, Neo Concepts and the UK’s Bank Machine Limited. Average revenues per ATM per month in the first quarter increased 11% to $844. The Company continues to expect revenues of $270-290 million for 2006. For complete details on Cardtronics’ latest performance, visit CardData ([www.carddata.com][1]).

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

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