Capital One & Hibernia Merger Closes at $4.9B

Capital One Financial closed its acquisition of Hibernia for $4.9 billion, compared to the $5.3 billion deal originally signed in March. Hibernia, one of the largest banking companies headquartered in the Gulf South, provides a broad range of financial products and services. The transaction makes Capital One the nation’s ninth-largest consumer lender and one of the top 20 banks in terms of total deposits. Capital One and subsidiaries collectively had 49.2 million accounts and $84.8 billion in managed loans outstanding as of September 30, 2005.

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Online Bill Payments via Banks Up 24%

A new survey has found that 56% of the 72 million online households in the U.S. are paying at least one bill online, up from 52% in June 2004. Currently, 87% of users who pay their bills from a single consolidated website, such as a bank, where they receive the service for free. The semi-annual survey by CheckFree Analytic Research Services with The Marketing Workshop and Harris Interactive also found that for the first time, online banking and bill pay features surpassed the more traditional bank selection criteria of bank branch and ATM proximity to home. The availability of online banking and bill pay features ranked third among the top three factors in selecting a bank for personal accounts, following “availability of free checking” and “reasonable fees and service charges.” According to the survey, the volume of bill payments made at consolidated sites, primarily banks, increased 24% from June 2004 to March 2005.

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SMART CARDS 2005

Financial services firms and retailers are expected to purchase more
than 330 million smart cards this year, an 18% increase over 2004.
In total, smart card shipments, including memory and microprocessor
cards, may top 2.5 billion, a 23% gain over last year. The EUROSMART
Association reported that 1.1 billion smart cards were shipped in the
first half of this year, including 158 million smart cards purchased by
banks and retailers. The trade group says the new growth in the banking
sector will be driven by the EMV migration in Turkey, Australia and New
Zealand on the heels of the rollout in the UK. Eurosmart members include
ASK, Aspects, Atmel, Austria Card, Axalto, BundesDruckerei, Datacard,
Emosyn, Fujitsu, FNMT, Galitt Group, Gemplus, GIE Cartes Bancaires,
Giesecke & Devrient, Infineon Technology, Ingenico, Integri, Laser,
MasterCard, Moneyline, NedCard, Oberthur Card Systems, ORGA, Philips
Semiconductors, Renesas, Sagem, Samsung, Saqqarah International – Groupe
Imprimerie Nationale, Setec, Sharp, STMicroelectronics, and Wave.

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Global Axcess Sales Up 59%; Sells EP&T

FL-based Global Axcess reported that third quarter revenues grew 59% to slightly more than $5 million. However, the Company sold its Electronic Payment & Transfer subsidiary on September 30th for $1.5 million. EP&T had incurred losses of $309,256 for the first nine months of the year and a loss of $74,947 for the third quarter. Net income for the first nine months of this year was down 8%. Global Axcess says higher costs of vault cash, slower growth in its “Branded Cash Program,” higher sales commissions and lower sales prices on ATMs have contributed to the lackluster results. The Company reduced corporate overhead by eliminating 11 FTE employees in October. The Company currently owns and operates over 5,000 ATMs in its national network spanning 42 states. For complete details on Global Axcess’ third quarter results, visit CardData ([www.carddata.com][1]).

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

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Smart Java Cards Go Contactless

Sun Microsystems announced the “Java Card” platform is now running on contactless smart cards. The Java Card platform is the leading technology for multi-application smart cards with over 1.25 billion cards shipped. Card issuers benefit from a number of unique features of Java Card technology in contactless products, including interoperable cards, a certified multi-application platform, and an open environment for writing new applications using widely available development tools on a diverse range of operating systems, including the Solaris 10 Operating System, Windows and Linux.

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Morgan Beaumont Cards Get MoneyGram Access

Morgan Beaumont has inked a deal with MoneyGram Payment Systems to enable its cardholders to load value to their Morgan Beaumont cards at MoneyGram’s U.S. locations. MoneyGram’s network includes supermarkets, convenience stores, check cashers and financial institutions across the US. MoneyGram International is a global payment services company with over $825 million in revenue in 2004. Morgan Beaumont owns and operates the SIRE Network as a standardized, national network of stored value and prepaid card cash load stations located throughout the United States.

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Axalto Launches Instant Issuance for EMV

Axalto has launched “Instant Issuance”, a secure end-to-end solution that
allows banks to immediately issue personalized EMV cards directly at their
branches, with a design customized on request. With “Instant Issuance”,
not only do bank customers get their new microprocessor card on the spot,
but they can also have a personal picture inserted onto it and choose
their card body and PIN code in a few minutes. “Instant Issuance” is based
on Axalto’s data preparation and personalization software suite and
high-end EMV banking cards, with a security protocol that is compliant
with the GlobalPlatform international standard.

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Diebold Unveils Compact Cash Dispenser

Diebold has introduced the industry’s most compact through-the-wall cash dispenser. The new “Opteva 562” ATM offers a smaller footprint, improved serviceability and added functionalities. The new ATM has a recessed fascia making it more weather-tolerant. The “Opteva 562” is “Triple DES” and “EMV” compliant and meets all global accessibility standards. Diebold launched the “Opteva” line of ATMs in 2003.

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Norsk Tipping Orders Hypercom’s Optimum P1100

Norsk Tipping AS has selected Hypercom for its “Optimum P1100” PIN entry payment devices. In connection with the initial US$1.0
million order, Norsk will install the EMV-compliant “P1100” at hundreds of national lottery and betting sites throughout the country to enable
consumers to use gambling smart cards within various electronic games.
The “P1100” is a compact countertop unit that offers “EMV 2.0” and “Visa PED” certification, integrated CHIP or ‘swipe and park’ reader for CHIP and magnetic stripe credit/debit cards, a high-contrast LED screen and a large color-coded keypad with clear prompts. It also provides easy connectivity to electronic cash registers and a large memory. Norsk Tipping AS is wholly owned by the Norwegian state and has annual revenue exceeding US$1 billion. Hypercom provides support to the Western Canada Lottery Corporation, Taiwan Lottery, Moscow Lottery and Fubon Bank.

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Dell Adds PayPal Payment Option in the U.S.

Dell is now accepting PayPal payments from its U.S. consumer and small business customers. There are more than 86.6 million PayPal accounts, with users transacting more than $6.7 billion in the third quarter of this year. Dell is a information-technology supplier and partner, and sells a comprehensive portfolio of products and services directly to customers worldwide with company revenue of $54.2 billion.

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MoneyPass Surcharge-Free ATMs Top 10.5K

U.S. Bank’s Elan Financial Services and GenPass have decided to merge the “MoneyPass” and “Fastbank Free” surcharge-free ATM networks. Elan acquired Genpass in May and its surcharge-free network of more than 6,500 ATMs. The merger will create a national, surcharge-free network with nearly 10,500 ATMs located in the 48 continental states. The merged network will maintain the “MoneyPass” brand name and will continue the “pay as you go” pricing model. Genpass also operates the “Moneymaker” and “MONEY BELT” EFT Networks. Through the recent acquisition of Genpass, Elan now provides processing services for more than 31,000 ATMs nationwide and support more than 18 million ATM and debit cards. (CF Library 5/11/05)

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