WLAN CONSORTIUM

Munich-based Giesecke & Devrient has become a member of the WLAN Smart Card Consortium. G&D joins VeriSign, Alcatel, Gemplus, Infineon Technologies, Oberthur Card Systems, Schlumberger, and VISA as members of the consortium.
The mission of the WLAN Smart Card Consortium is to define and promote smart card related specifications for WLAN across all market segments, including enterprise, public WLAN and home networks. The objectives are to produce specifications for industry adoption of smart cards for WLAN in regards to security, ease of use and credit/credential management. The consortium will produce submissions based on specifications for the appropriate standards bodies and promote general market adoption and credibility for the utilization of smart cards in WLAN networks.

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Advanta 1Q/03

Advanta reported that its “MasterCard Businesscard” portfolio hit $2,744,182,000 in the first quarter, compared to $2 billion one year ago, a 35% gain. Card volume for the first quarter increased more than 45% over 1Q/02, to $1,602,498,000. Business Card results for the first quarter included an approximate 160 bps decline in net principal charge-offs on managed receivables to 8.0%, on an annualized basis, as compared to 9.6% for 1Q/02. Over 30 day delinquencies on managed receivables declined 82 bps to 6.36%, and over 90 day delinquencies on managed receivables decreased 30 bps to 3.08%, as compared to first quarter 2002. For complete details on Advanta’s 1Q/03 performance visit CardData ([www.carddata.com][1]).

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

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HOME CAPITAL 1Q/03

Toronto-based Home Capital Group reported that its personal and credit card loans have grown 86% over the past year from $15.3 million to $28.5 million. At of the end of 1Q/03, the gross credit card receivable balance included $12.9 million in accounts secured by cash deposits or mortgage collateral, and $6.2 million in unsecured accounts. The total credit approved is comprised of $21.3 million in secured and $9.1 million in unsecured accounts. Security deposits on VISA accounts amounted to $10.8 million. “Equity Plus VISA” credit cards are secured by a collateral residential mortgage, and this product
amounts to $6.4 million of the credit card receivable balance.

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VASCO 1Q/03

Brussels-based VASCO Data Security International reported the best quarter since it became a public company in 1998, in terms of net income. The company reported first quarter revenues of $5.6 million, 7% lower than the same quarter of the prior year. The Company reported net income for the first quarter of $481,000 compared with a net loss of $1,900,000 and $160,000 for the fourth quarter and first quarter of 2002, respectively. VASCO said it added 170 new customers during the quarter. VASCO designs, develops, markets and supports patented “Identity Authentication” products for e-business and e-commerce. VASCO’s Identity Authentication software is delivered via its Digipass security products, small “calculator” hardware devices carried by an end user, or in a software format on mobile phones, other portable devices, and PCs.

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E-TOP-UP

Vodafone New Zealand Limited has signed a contract with Euronet Worldwide’s e-pay Australia subsidiary for an electronic top-up service. Vodafone has approximately 1.2 million subscribers, representing 50% of mobile phone users in New Zealand. e-pay Australia has contracted with several major retailers, supporting more than 300 terminals throughout New Zealand to provide the e-top-up services. e-pay is the largest electronic payments processor of prepaid mobile airtime top-up services in the U.K. and Australia. Founded in 1999, e-pay, focuses on cash-based recharge, or the “top-up” market for processing electronic purchases of prepaid mobile airtime and long-distance calling cards. The company currently supports top-up purchases for mobile service providers at more than 50,000 POS terminals in approximately 18,000 retail locations.

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Fraud Predictor/Merchant Profiles

Fair Isaac has launched its next-generation fraud management solution. “Fraud Predictor with Merchant Profiles” combines the predictive power of a new pool of information — merchant data based on transaction and fraud history — with the core analytic power of Fair Isaac’s “Falcon Fraud Manager 4.5” solution. Fair Isaac says initial tests of the new fraud tool demonstrate as much as a 50% incremental improvement in fraud detection over the performance of “Falcon.” “Version 4.5” of “Falcon” is available immediately. “Fraud Predictor with Merchant Profiles” will be available to North American payment card issuers in June.

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Tier/OPC 1Q/03

Tier Technologies said Thursday that based on the early results of the Official Payments’ federal tax season, and in light of the challenging market conditions in the government and commercial market segments, it is revising its outlook for the balance of the fiscal year. Tier expects revenue in the third fiscal quarter to be in the range of $46 million to $48 million, and fourth quarter revenue to be in the range of $36 million to $38 million. In the first and second quarters, Official Payments had shown growth in IRS income tax payment dollars processed of 65% and 37%, respectively. However, during the April 1st through April 15th federal tax seasons, Official Payments processed 21% more total federal tax transactions but was essentially flat in terms of total federal tax dollars processed as compared to the prior-year period. Based on preliminary IRS reports for the fiscal year beginning October 1, 2002 through April 19, 2003, Official Payments processed 76% of total federal tax transactions and 82% of total federal tax dollars paid to the IRS through credit cards. For complete details on Tier Technologies’ 1Q/03 performance visit CardData ([www.carddata.com][1]).

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

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Providian 1Q/03

Providian reported 1Q/03 net income of $4.7 million, compared to net income of $10.0 million in the first quarter of 2002. The issuer added approximately 600,000 new accounts in the first quarter, ending the quarter with approximately 11.7 million accounts. Managed loans for the first quarter were $18.47 billion, compared to $19.63 billion one year ago. Providian says the decline in managed loans was due to net credit losses and a seasonal increase in payments. Charge-offs for 1Q/03 were 17.61%, compared to 17.34% in the previous quarter, and 15.05% one year ago. Providian’s 30+ day delinquency rate at the end of the first quarter was 10.31%, compared to 11.11% at the end of the fourth quarter, and 10.22% at the end of 1Q/02. For complete details on Providian’s 1Q/03 performance visit CardData ([www.carddata.com][1]).

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

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AmEx 1Q/03

American Express TRS reported first quarter profits of $584 million, a 25% increase over 1Q/02. The new “Green” and “Gold” rewards cards, and the “Cash Rebate Card,” introduced last year continued to drive U.S. portfolio expansion, adding 300,000 net new cards during the first three months of this year. AmEx’s U.S. gross dollar volume increased 10.5%, and credit card loans increased by more than 8% during the first quarter. Credit quality held steady during the first quarter as delinquency (30+ days) and charge-offs remained unchanged from the fourth quarter. Delinquency and charge-offs were both significantly down over year-ago levels. AmEx’s net interest yield increased 40 basis points over 4Q/02 and 20 basis points over 1Q/02. AmEx says total expenses increased 3% for 1Q/03. Marketing and promotion expenses rose 8% from year-ago levels, reflecting the continued expansion of card-acquisition programs. For complete details on AmEx’s fourth quarter performance as well as prior quarters visit CardData ([www.carddata.com][1]).

American Express U.S. Card Portfolio Snapshot
1Q/03 4Q/02 3Q/02 2Q/02 1Q/02 Ann Chng
Volume $58.9b 62.9b 58.2b 58.7b 54.3b +8.5%
Loans $34.6b 34.3b 32.2b 31.6b 31.3b +10.5%
Cards 35.4m 35.1m 34.8m 34.8m 34.8m +1.7%
Delinq* 3.1% 3.1% 3.2% 3.1% 3.4% -8.8%
Losses 5.5% 5.5% 5.6% 6.2% 6.5% -15.4%
Yield** 9.4% 9.8% 9.7% 9.8% 9.6% -2.1%
* 30+ days past due; ** net interest yield
Source: CardData (www.carddata.com)

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

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