Diversinet Announces FY 2005 Results

Diversinet, a provider of mobile-enabled personal
authentication and security solutions, announced its fiscal 2005
results. Its reported 2005 revenue of $1.1 million compared to revenue of $2.6 million, for 2004. The Company reported
a net loss of $7.1 million for 2005, compared to a net loss of $7.5 million for 2004. During the fourth quarter, the Company recorded revenues of $159,000 compared to $419,000 for the same period in the prior year. In January 2005 Diversinet re-launched its corporate strategy and began to focus on the evolving protection, trust and provisioning needs of mobile users. These financial results reflect this shift in focus and the time required to build up the distribution channel and corresponding customer base. Recently, the Company announced a licensing, development and support agreement with RSA Security Inc. that will result in minimum revenues of $2.2 million to
Diversinet over three years.

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Online Services Trumps Free Checking

A new report has found that the average online transaction takes 2.8 minutes to complete, compared to 7.7 minutes of combined wait and transaction time with a branch teller. The study of nearly 13,000 consumers also found that free checking and free debit cards have lost their luster in attracting new customers compared to online products and services. The J.D. Power and Associates “2006 Retail Banking Satisfaction Study” reveals that customers with commitment levels in the top 25% use an average of 3.3 banking services, compared to 2.5 for those in the bottom 25%. About 55% of highly committed customers also have loans with their primary bank and make 6.6 recommendations of the bank to others. Among those with low commitment, just 31% have loans with the bank and they average fewer than one recommendation. Overall, the retail banking industry has a commitment level of 28%.

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STANDARD CHARTERED & AMEX

Standard Chartered has officially launched its first American Express card after signing a partnership last August. The new “Standard Chartered American Express Card” offers two reward options, cash-back or points. The “Bonus Points” program offers quadruple points on all purchases. The “Cash Rewards” program offers 1% cash-back on all purchases and up to 8% cash-back for purchases at major supermarkets and department stores in Hong Kong. While there is no card fee there is a HK$250 annual fee for the rewards program. Cardholders applying by April 30th will receive a first waiver on the fee. Standard Chartered has a global network of over 1,200 branches. American Express has now established nearly 100 card-issuing partnership arrangements in
close to 110 countries.

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Hybrid Check Authorization Service Debuts

TeleCheck Services has introduced a new check authorization service that offers real-time information and sophisticated risk management systems. The new “TeleCheck Live Verify” service is designed for high-volume national merchants. The new service provides merchants with real-time negative database information for all transactions, while offering advanced adaptive decisioning tools for the higher risk transactions. It is the first hybrid service of its kind available for larger merchants. TeleCheck noted that distributed databases with data that is a day old doesn’t reduce fraud enough.

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Discover Leads in Online Experience

A new study reveals that Discover, American Express and Chase are providing the best online experience for prospective card customers. The report also determined that HSBC and Providian provide the most reliable online service levels. The report from Keynote Systems found that 30% of prospective customers visiting the Chase, Citi and AmEx sites indicated they were very likely or extremely likely to sign up for a credit card account with those companies. Comparably, the bottom ranked sites registered only 16% of the prospects visiting their site as being interested in a card. Discover was considered the easiest credit card to apply for online – and the easiest company to deal with, with 71% of online consumers expressing this sentiment. The “Keynote Rankings for Credit Card Prospects” study was based on an examination of the online experience of 2,000 prospective credit card customers and the measurement of 250 metrics.

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Project Higgins Enhances Online Security

Three companies have agreed to support the first open source initiative to create user-centric identity management software. Called “Project Higgins,” the software will enable individuals to actively manage and control their online personal information, such as bank account, telephone and credit card numbers or medical and employment records. “Higgins” breaks up a person’s identity into pieces and lets computer users dictate who can access what parts of their identity information, within applicable privacy guidelines and laws. IBM, Novell and Parity Communications are contributing code to the initiative. “Higgins” will support any computer running Linux, Windows or any operating system, and will support any identity management system. The project is named after the Tasmanian long-tailed Higgins mouse.

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CU Promotion Draws Record Balance Transfers

Thirty-one credit unions added more than $5 million in balances due to a pre-holiday balance transfer promotion. The credit unions are clients of Dallas-based TNB Card Services. The promotion yielded a record average balance transfer of more than $3,500 per account, up 15% over 2004. More than 65,000 qualified account holders received a promotional letter, customized for each participating credit union, with a detachable check that the member could use for the balance transfer. Jersey Shore FCU says it achieved an 11.68% response rate. Houston-based Smart Financial CU reported a 3.51% response rate and an average balance transfer of $4,207. TNB serves more than 450 financial institutions.

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iPayment’s Revenue Soar 80% in 4Q/05

Nashville-based iPayment reported fourth quarter revenues of $183 million, an 80% jump over 4Q/04. Net income was $10.7 million for the quarter, up 40% for the fourth quarter of 2004. The Company’s revenue growth for the quarter reflected an increase in charge volume to $6.5 billion from $3.5 billion for 4Q/04. iPayment provides credit and debit card-based payment processing services to approximately 140,000 small U.S. merchants. For complete details on iPayment’s latest results, visit CardData ([www.carddata.com][1]).

Historical iPayment Revenues
4Q/04: $101.4 million
1Q/05: $163.4 million
2Q/05: $181.1 million
3Q/05: $175.2 million
4Q/05: $183.0 million
Source: CardData (www.carddata.com)

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

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Sheetz Upgrades ATMs and Drops Surcharges

Innovative convenience store chain, Sheetz, announced it will drop the extra surcharge fee charged for using the M&T ATMs deployed in many of its stores, effective March 1st. While Sheetz customers will not have to pay a surcharge fee from M&T, they may still be charged a fee by their own bank for using M&T Bank’s ATM. Sheetz and M&T are also in the process of replacing ATM machines with new advanced feature NCR ATMs. The new touch-screen machines will dispense $10 and $20 bills, along with U.S. Postage Stamps and offer transactions in English and Spanish. The ATMs also will be voice-enabled for the visually impaired. M&T expects to have new machines installed in all Sheetz stores by Fall 2006.

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AmEx Nears 100 Card-Issuing Partnerships

Standard Chartered has officially launched its first American Express card after signing a partnership last August. The new “Standard Chartered American Express Card” offers two reward options, cash-back or points. The “Bonus Points” program offers quadruple points on all purchases. The “Cash Rewards” program offers 1% cash-back on all purchases and up to 8% cash-back for purchases at major supermarkets and department stores in Hong Kong. While there is no card fee there is a $32 annual fee for the rewards program. Cardholders applying by April 30th will receive a first waiver on the fee. Standard Chartered has a global network of over 1,200 branches. American Express has now established nearly 100 card-issuing partnership arrangements in close to 110 countries.

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