Montreal area
community Intermunicipal TransportBoards (Conseils Intermunicipaux de
Transport) CIT Roussillon and Le Richelainhave implemented a smart card
based electronic fare system called ScotiaTranSmart. Developed by EdgeWare
Technologies and implemented by e-Scotia,the e-commerce subsidiary of
Scotiabank, Scotia TranSmart allows riders touse reloadable smart cards to
purchase electronic tickets and passes to meettheir individual
Electronic tickets and passes are uploaded onto
smart cards usingcompact, reliable and easy to use point-of-sale terminals
located at existingticket and pass distribution points throughout the
communities. When boardingbuses, the cards are simply inserted into the
smart card terminal which willautomatically validate the pass or electronic
ticket without requiring driverintervention. With every ride, the computer
chip on the card is read. Passescan be used for an unlimited number of
rides during a specific period such asa calendar month, whereas with
tickets, the card balance is automaticallyadjusted until the number of
tickets purchased runs out. Convenient optionssuch as weekly or semester
passes are also available. Card validation times ofone-third of a second
ensure efficient boarding.
We have designed our
electronic fare collection system with a number ofgrowth options in
mind, said Claude Beaudoin, Vice President Engineering atEdgeWare
Technologies. Our goal was to have transit operators take a
seriouslook at cost efficient contact card systems which could be expanded
into acommunity card, while maintaining high transaction speeds for
We are delighted that CIT
Roussillon and Le Richelain are the firsttransit systems in Canada to
install Scotia Transmart(TM), says Albert WahbeCEO of e-Scotia and
Scotiabank Executive Vice-President, Electronic Banking.”At Scotiabank
and e-Scotia we are committed to using the latest and mostinnovative
technologies available in the marketplace to make day-to-dayactivities,
like taking public transit, easier for Canadians.

Currently, CIT Roussillon and Le Richelain are using smart cards formonthly
passes. As of January 1, 2002, riders will have the option ofpurchasing
electronic tokens individually or in groups.
EdgeWare Technologies
EdgeWare Technologies is a Canadian
software and services firm thatdesigns, develops, markets and supports
multi-application, scalable, platformindependent smart card software
solutions for business, institutions andgovernments
About Scotiabank and
e-Scotia is the trade name for Scotiabank’s
e-commerce subsidiaryspecializing in e-commerce products, sales and
service. Scotiabank is one ofNorth America’s premier financial institutions
with more than $271 billion inassets and approximately 51,000 employees
worldwide, including affiliates. Itis also Canada’s most international bank
with more that 2,000 branches andoffices in more that 50 countries.



The Monetary Authority of Singapore is getting ready to issue up to four
‘Qualifying Full Bank’ licenses by the end of this year. The four new QFBs
likely include: American Express Bank, Hong Kong Bank, Bank of China, and
Malaysia’s Maybank. As a QFB, foreign banks may run a shared ATM network among
themselves and easily open branches. The Monetary Authority of Singapore has
already granted licenses to four foreign banks including:
Citigroup, Standard Chartered Bank, ABN AMRO, and BNP Paribas.



Infocorp Computer Solutions Ltd., a leading provider of revenue management and
electronic service delivery solutions for e-government and e-retail,
announced financial results for the third quarter ended September 30, 2001.

For the third quarter of 2001, Infocorp reported a net loss of $472,750,
or ($0.034) per share, compared to net loss of $379,401, or $0.028 per share,
in the third quarter of 2000.

“During the quarter, we took proactive steps to restructure the company
in order to rationalize our operating costs. Our operating costs for the third
quarter were approximately 45% lower than the second quarter this year. Over
the course of the quarter, we were successful in developing a marketing
alliance with Covansys Corporation. Subsequent to the quarter end, Infocorp
successfully negotiated some additional work with the Manitoba government and
the City of New York. More importantly, we won a new customer relationship,
and subsequent to the quarter end, we entered into an agreement with the Port
Authority of Allegheny County (the City of Pittsburgh’s public transit
authority) to pilot the Access2Gov solution. We expect this to evolve into a
broader relationship over the next two quarters.”

The Company reported substantial progress in the third quarter across
several corporate initiatives, including:

– Building Sales Channel Capabilities – As a result of our increased
focus on sales and building marketing alliances, we were successful
in forming an alliance with Covansys Corporation to jointly pursue
opportunities in government markets. Covansys is an established
leader in implementing online government solutions at both the state
and local levels. This partnership, in which both parties have a
right of first refusal on new opportunities within motor vehicle
licensing departments, is expected to generate business for us
within the next two quarters.

– Technology Transformation – We have launched the full-scale build
out of the Java version of Infocorp’s Access2Gov revenue management
solution using Inc.’s recently acquired Java development
facility in India. This project will broaden the appeal of the
Access2Gov solution and enable a thin-client architecture. By
developing the skills to manage offshore development resources,
Infocorp is increasing its scalability while holding its operating
costs in line.

Financial Results

Third quarter revenue totaled $407,286, down from $815,829 in the third
quarter of 2000. During the quarter, revenue from license fees and related
services in the government segment decreased to $11,686 from $394,927 in the
same quarter last year, reflecting that the New York City installation is now
complete, and purchasing decisions on other major projects were deferred until
year-end. Although revenue from retail sales and post contract support (which
is primarily derived from the retail segment) declined 15% on a nine month
basis, the Company recorded an increase of approximately 10% to $397,766 up
from $362,152 in the third quarter of 2000, demonstrating the strength and
stability of the Company’s customer base.

During the three quarters of 2001, operating activities used $205,995,
compared to an increase in cash of $37,050 over the same period in 2000. To
fund operations, the Company extended its credit facility provided by its
largest shareholder Inc. by $270,000 from $500,000 to $770,000.

General and administrative expenses decreased to $226,308 in the third
quarter from $415,999 in the corresponding period of 2000 due to reduced
staffing in these areas and a reduction in professional services costs.

Research and development (R&D) expenses decreased to $167,451 in the
third quarter of 2001 from $299,746, and showed a sequential decline of 53%
from $357,746 in the second quarter. As future product development will be
done primarily offshore, R&D expenses are expected to continue at these lower

Selling and marketing expenses increased slightly to $237,373 in the
third quarter of 2001, from $214,295 and showed a sequential decline of 43%
from $415,645 in the second quarter. The company completed a number of
initiatives in the second quarter to improve its branding themes and re-design
its website. Over the second and third quarters, the Company restructured in
sales force in order to increase the Company’s focus on building a strong,
qualified pipeline from which to generate revenue.

About Infocorp

A member of the Group of Companies, Infocorp (TSE: INP) is a
leader in the design and delivery of state-of-the-art revenue management
solutions for governments and specialty retailers. Infocorp’s solutions enable
product and service delivery, workflow automation, and payment transaction
processing through multiple delivery channels including over-the-counter,
Internet and kiosks. Its core e-government product, Access2Gov (formerly
POS+), has been installed in a variety of state, provincial and municipal
departments, and is a key component of electronic service delivery solutions.
Its core retail product, Softwear/P.O.S., is installed on over 10,000
workstations in retail organizations around the world, and is a fully
integrated retail management system, from point-of-sale to customer
relationship management and back office automation. Infocorp’s offices are
located in Canada and USA.

About Inc.

Founded in 1986, (TSE: ESP.a and ESP.b ) is a leading
developer of electronic payment systems and transaction-processing solutions,
including e-commerce applications with a focus on the financial services
industry. provides real-time end-to-end e-banking solutions that
include Internet banking, interactive voice recognition (IVR), debit and
credit card issuing, automated teller machines and point-of-sale network
management, retail branch management, and e-CRM enabling technology. also provides investment brokerage client and portfolio management
applications for the brokerage industry; e-health solutions which enable
health insurance claims to be evaluated at the point of service, processed and
settled in real time; and e-government solutions, which enable consumers to
pay fees for government services in person, at kiosks, through IVR or the


Cap One Rating Drops

Morgan Stanley has lowered its investment rating on credit-card lender Capital One Financial Corp. to “neutral” from “outperform” over concerns about the credit card industry’s fundamentals. MS says weak demand, intense competition and rising risk is affecting the credit-card business. The firm also noted that rapid growth is offsetting declining margins at COF, but margins could be vulnerable if growth isn’t sustained. MS says it believes the variance between COF’s recovery rate and the industry’s is largely due to accounting differences and superior skills.


Tangled Web

A new study has found a high prevalence of aggressive online marketing tactics on the Internet including those used by credit card issuers. More than 30% of the top Web sites based in the USA employ such tactics as “spawning”, “mouse-trapping”, “seeding”, “framing” and “home-jacking”. The study, to be released this week by Cyveillance International, found “spawning” or “pop-ups” to be the most widely used tactic to boost response. “Pop-ups” or “pop-unders” are the automatic launch of new browser windows upon entering a site, upon exit, on delay, or other triggers. “Mouse-trapping” tactics were found on 5.2% of the sites on the Internet. “Mouse-trapping” disables the user’s ability to go back, exit or close while viewing a page. Among the others cited in the ‘Top 10 Tactics’: “invisible seeding” or the hiding of content to optimize search engine rankings; “unauthorized software downloads” which leaves behind software that can contain embedded advertising or tracking capabilities; “spoof pages” created specifically for the purpose of attracting search engine traffic for higher ranking on search results; “typo-piracy”/”cyber-squatting” which uses misspellings and derivations of a brand to divert traffic to an unintended site; “home-jacking” which substitutes a new home page setting or changes to the user’s “favorites” list; “visible seeding” which creates a false affiliation with popular brands; “mislabelling links” or the false labelling of hyperlinks; and “framing” which keeps users on the original site while viewing content of another through the original site’s window.


LaserCard Growth

Security concerns are driving interest in multi-biometrics-based, high security identification cards. Drexler Technology reported this morning that ‘LaserCard’ shipments next year probably will be higher than previously estimated. Drexler says card shipment estimates are being increased to between 8 million and 10 million cards, compared to estimates announced four months ago of 7 million to 9 million cards. The card shipment estimates include both optical memory cards and chip-ready ‘Smart/Optical’ cards. The Company estimates that total product revenues for fiscal 2003 could be at least 45% greater than total product revenues for fiscal 2002.


CUNA Smart Cards

CUNA Network Services has signed a deal to market, distribute and support SchlumbergerSema payment, IT and security related smart card-based solutions to more than 10,000 credit unions across the USA. As a result, credit union members will be able to use secure authentication to access financial portals to manage accounts for electronic payment, home banking and other registered financial services. Consumers who are members of participating credit unions can also use SchlumbergerSema smart cards as secure devices for storing and managing personal data, including favorite URLs, passwords, addresses and accounts. CUNA will also utilize newly released SchlumbergerSema ‘e-gate’ technology which enables a smart card to plug directly into the standard USB port on a PC, eliminating the need for a card reader, separate power supply and driver software. With e-gate technology, SchlumberSema says credit unions issuing MasterCard and VISA payment cards will have a clear migration path to future smart card and secure payment technology platforms.


I-Cash Payment System

IPP of America, Inc., a nationwide network of walk-in bill payment centers, announced an agreement with Stone Mountain Data Centers, Inc. of El Segundo, CA, developer of Internet Cash Purchase System, to process their cash transactions and provide the infrastructure for the first system enabling consumers to make purchases on the Internet in cash. This system will enable cash-paying consumers to shop on the web, print out a receipt and complete their purchase in person at any of the 2000 IPP walk-in locations across the country. The agreement aims to establish ICPS and IPP as the recognized payment option for the credit-stressed public by offering the first system for cash purchases on the Internet.

“Millions of consumers are neglected in the online retail industry because of the barrier of current payment methods. Working with Stone Mountain enables IPP to provide yet another service to help bring financial equality to those without credit and to bring e-commerce into the homes of the underbanked,” commented Marvin Morris, IPP’s Chairman and President. “This agreement provides an opportunity for both companies to leverage IPP’s network of locally-established retailers to offer the underbanked public the convenience and power of shopping on the web in cash,” he continued.

Brad Parrish, Vice President — ICPS PayCenter(SM) Development added, “Our goal is to utilize the IPP network to reach lower and middle income populations that are otherwise difficult to reach through mainstream distribution. We intend to offer our cash-payment solution services on thousands of web sites, and to help these online retailers increase their revenue, diversify their clientele and grow their business by servicing the cash-paying consumer. Working with such a dominant provider electronic payment processing solutions with such an extensive network in our target regions as IPP is indicative of the merits of our unique Internet cash-payment solutions and the appeal of our technology to our mutual clientele,” he continued.

About IPP

IPP of America, Inc. is a leading provider of electronic payment systems and technology solutions that enable cash-paying consumers to make bill payments and product purchases at their local community stores. The company’s network currently extends to 24 states and over 2000 stores nationwide. Product and service offerings can be viewed at the company’s primary website, [][1] and vary from location to location. For your nearest IPP location, call 1-888-IPPPAYS (477-7297).

About Stone Mountain

Established in 1994, Stone Mountain Data Centers is a technology solutions provider responsible for developing the Internet Cash Purchase System(SM) (ICPS). Enabling people to pay cash for web purchases, the system is a unique, patent-pending payment processing system that addresses the needs of millions of adults and teens currently locked out from Internet retail because of lack of credit cards. ICPS is designed to provide online consumers with personal information privacy while virtually eliminating risks of credit card fraud for online retailers. For additional information, please log on to [][2].



One Card Test Update

More than half of Americans in a recent poll stated they do not believe they could only use payment cards and electronic payments for all purchases over $10.

Knowing the value of payment cards for even the most harried lifestyle, Visa was determined to demonstrate that such a lifestyle is possible and today announced a program illustrating how easy, safe and convenient Visa cards and electronic payments can be for all consumer payment transactions. In Visa’s “One Year, One Card” program, three American hopefuls for the Salt Lake Olympic Winter and Paralympic Winter Games — Emily Cook (U.S. Ski Team), Jean Racine (U.S. Women’s Bobsled Team) and Mary Riddell (U.S. Disabled Ski Team) — were asked to use only their Visa cards or electronic payments for all of their purchases over $10, and have been doing so since March 1, 2001. “Just as athletic performance has improved, sports equipment has evolved and new sports have been developed, 106 years after the first modern Olympic Games, there are better ways to pay,” said Becky Saeger, executive vice president, brand marketing, Visa U.S.A. “This program reflects our long-standing promise of ‘It’s Everywhere You Want to Be.’ Wherever you go — from Salt Lake City to Athens to Beijing — if you have your Visa card, then you’ve got what it takes to live your life the way you choose.”

After beginning the program, all three American athletes made daily and monthly payments using their Visa Check cards, Visa credit cards and electronic payments from their financial institutions, living with Visa cards, electronic payments and minimal cash as they prepare for the upcoming Olympic Winter Games. The athletes have kept journals of their experience to date — nearly nine months — reporting that the transition from traditional to more contemporary payment methods took only minor adjustments, and quickly became a significant advantage for them in their lives and their travels. “With cash, I had no idea what I spent my money on,” said Jean Racine, a member of the U.S. Women’s Bobsled Team and the number one women’s driver in the world. “Now that I spend with my Visa card and electronic payments, I can track all of my expenses. This really helps with my budgeting.”

As a result of participating in the program, these American athletes found that using various Visa cards and electronic payments make managing a budget and making payments simpler. With Visa’s unsurpassed acceptance, the athletes in the One Year, One Card program were able to experience the ease, speed and security of paying from remote places like Finland, Australia and Belize. As the athletes near the completion of the One Year, One Card program, they acknowledge the positive impact the program has had on managing their payments. “Usually, I’m borrowing money from my dad,” said Mary Riddell, U.S. Disabled Ski Team. “He’s really happy because this program has really helped me with my budgeting. Paying with Visa gives me peace of mind because I’m now financially stable. I can view all of my purchases on one statement. I’m really in control.”

Easier Than They Thought It Would Be

All three athletes agreed the idea of living this way was somewhat daunting before the program began in March, but soon realized it was easier to change their habits than they thought it would be. Their initial apprehension mirrored the attitudes of many individuals in the U.S. According to a recent omnibus survey of 1,000 adults, more than half of Americans do not believe they could live using only Visa cards and electronic payments for purchases over $10. The November survey also indicated that more than two-thirds believed it would be difficult or very difficult to do so — something the athlete’s One Year, One Card experience contradicts. Visa knew this was not the case and set out to demonstrate the ease and convenience of such a lifestyle through the harried life of world-class athletes. “It’s so easy,” said Emily Cook, U.S. Ski Team aerialist. “I didn’t have to change a thing. All my Visa payments are viewable online so it’s extremely easy to track.”

A Changing Payment Mix

Currently, about 66 percent of all consumer payments are still made through cash and checks, though their dominance in recent years has steadily declined as more payments are made on cards. In 2001, cash represented 16.4 percent of all personal consumption expenditures in the U.S., down from 18.6 percent in 1994. Checks represent 49.6 percent of consumer payments in 2001, down from 57.6 percent in 1994. Conversely, payment cards rose to 26.4 percent of consumer payments in 2001, up from 18.5 percent in 1994. Visa cards alone accounted for approximately 12 percent of personal consumption expenditures in 2001. Part of the shift in spending is attributable to a dramatic rise in popularity of the Visa Check card and consistent growth in usage of debit cards. There are currently more than 100 million Visa Check cards in the market, compared to just over 32 million Check cards in 1995. Check cards represented 28 percent of all Visa cards in the market in 2000, up from 13 percent just five years earlier.

The One Year, One Card Program

Visa considered Olympic hopefuls to be perfect participants for the program. While they are world-class athletes that travel the globe, they are also real people with routines, bills, hobbies and interests, travel plans and a need for safe and convenient access to money. The participants were selected from Visa’s Gold Medal Athlete Program to represent different sports, including the Paralympic Winter Games and the Olympic Winter Games’ newest addition, women’s bobsled. All three athletes are being used in Visa marketing programs. “We thought this would be an excellent way to show consumers just how easy it is to use your Visa card and electronic payments in every-day life,” said Saeger. “These athletes are demonstrating that your Visa card gives you the world’s most accepted payment tool, and the convenience, control and security to make your day-to-day payments.”

The One Year, One Card program stipulates that participants can use electronic bill payments and recurring payments to augment their Visa card spending for items like rent or utility bills. This enables the athletes to track their spending from computers in any country, streamline their lives and achieve greater fiscal responsibility.

“In developing this program, we hoped to demonstrate that if three world-class athletes could live their lives using their Visa card and electronic payments — the average consumer could adapt their current lifestyle to reap the same benefits,” said Saeger. “While the program is intended to last a year, I think these athletes have already made the point: using Visa can add convenience and control to consumers’ lives.” “Overall, this challenge has made my life easier,” said Racine. “It has become part of my routine and will continue to be part of my life after this year.”

The Future of Payments

Acceptance: The reason this program is possible is because of the work Visa and its Member financial institutions have undertaken to increase the number of outlets and types of merchants that take Visa. Today, Visa is accepted for more kinds of purchases than ever before, and the company’s efforts to broaden its acceptance continue. In addition to everyday purchases and travel, Visa is growing as a way to pay for other types of transactions, like recurring bill payments, fast food restaurants and healthcare. These efforts reflect the company’s goal of enabling payments anytime, anywhere, and anyway that consumers choose. Visa cards have unsurpassed acceptance with more than 22 million merchant and ATM locations worldwide.

Choice: Visa cards offer consumers a choice in payments, with three ways to pay for their purchases: “Pay Now” with the Visa Check card (debit); “Pay Later” with a Visa credit card; and, “Pay in Advance” with a pre-loaded Visa stored value cards. All three types of payment cards are accepted anywhere Visa is taken and offer convenience, control and security.

Trust: One of the key benefits associated with payment card usage is the security cards offer above and beyond traditional payments. With Visa, consumers know if their card is lost or stolen, it can be replaced. Also, if unauthorized charges are made on a Visa card, consumers are protected by the company’s Zero Liability policy.

Rewards: In addition to security and convenience, Visa cards offer additional benefits, like loyalty and reward programs. Simply by using certain co-branded or affinity Visa cards, consumers can earn miles and points, receive discounts, route benefits to a specific organization and be automatically entered into promotions. Convenience: With more than 22 million places where consumers can use their Visa, it is a widely accepted, easy way to pay for day-to-day or monthly expenses. Purchasing with a Visa card provides shoppers a way to track their expenditures, providing a simple way to help practice responsible financial management. Using a card for payment also saves consumers time. With an average transaction approved in a few seconds, Visa cards are one of the fastest ways to pay.

Visa and the Olympic Games

Over the course of its 16-year association with the Olympic Games, Visa has enjoyed a significant increase in consumer awareness, preference and cards usage. According to internal research and cardholder tracking studies, Visa’s rating as the “best overall card” has risen 50 percent since 1986, to an all-time high of 60+ percent of all consumers. Its rating as “accepted by more merchants” rose from 35 percent in 1985 to 68 percent today. Consumer perception of Visa as ‘best overall card’ and consumers’ claimed Visa card usage both rise significantly among those aware of the Olympic sponsorship. Following the 2000 Sydney Olympic Games, Visa enjoyed an unprecedented 72 percent unaided consumer awareness of its sponsorship, and consistently rated the highest or among the highest awareness of any Olympic sponsor. In November 1999, Visa renewed its commitment to the Olympic movement as a TOP V (The Olympic Partnership) sponsor through the 2004 Olympic Games in Athens, Greece. The sponsorship extends Visa’s presence as the worldwide partner, official payment service and only card accepted at the Salt Lake and Athens Olympic Games.

About Visa U.S.A.

Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $835 billion in annual transaction volume — including roughly half of all Internet payments — with virtually 100 percent reliability. U.S. consumers carry 353 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 22 million locations worldwide. Visa’s people, partnerships, brand, payment technology and security standards are helping to create universal commerce — the ability to safely conduct transactions anytime, anywhere, anyway. Please visit [][1] for additional information.



NextCard IPO Suit

A New York law firm has filed a class action suit against NextCard and its investment banks over the “laddering” of NextCard’s stock price in its 1999 IPO. Lovell & Stewart alleges that NextCard violated securities laws by issuing and selling stock without disclosing to investors that several of the underwriters of the NextCard IPO had solicited and received excessive and undisclosed commissions from certain investors. To receive the allocations at $20.00 per share, the lawsuit says NextCard’s underwriters’ brokerage customers agreed to purchase additional shares in the aftermarket at progressively higher prices to drive NextCard’s share price to as high as $40.75 during its first day of trading and then dump the shares. The complaint also alleges the defendant underwriters required their customers to return some of their profits in the form of secret commissions. The complaint also alleges that NextCard was able to price its secondary offering at an artificially high $36.9375 per share due to the continued effects of the alleged violations. One month ago, NextCard announced a decision to explore opportunities for the sale of the Company following a clamp down by federal regulators. NextCard’s stock is currently trading around 75 cents per share and has plunged to as low as 62 cents since its 3Q/01 earnings report. (CF Library 10/31/01)



American Express announced Friday it will return to the Three World Financial Center building in April. The decision to return followed a spat last week with New York’s mayor over security demands by AmEx. The security issues were resolved with NYC to provide more police protection. More than 3,000 employees will return as soon as repairs are made to the facade and the office cleaning has been completed. AmEx relocated its employees to other offices elsewhere in New York, Connecticut, and New Jersey following the Sept. 11th terrorist attacks.