Transit Card Promotion

MasterCard International announced the results of its MasterCard card promotion with the Washington Metropolitan Area Transportation Authority and the Virginia Railway Express. Jay S. Creswell, Jr. of Vienna, Virginia and Jennifer Curtis Lombardo of Fredericksburg, Virginia are each a recipient of a grand prize vacation to Bermuda. The promotion, targeted to both SmarTrip Card users of the Metrorail system serving Washington, D.C., Maryland and Virginia suburbs and VRE ticket users in northern Virginia, offered commuters the convenience and flexibility of using a MasterCard card to replenish or purchase their travel passes. Commuters who credited or replenished their WMATA SmarTrip Card, or purchased a VRE ticket, using a MasterCard card were automatically entered into the weekly sweepstakes. In addition to the opportunity to win weekly first prizes of $500 MasterCard prepaid cards, two grand prize packages of a 7-day vacation for two were included in the promotion – one for each railway’s user. Pete Sklannik, Jr., chief operating officer, Virginia Railway Express, stated, “The promotional campaign with MasterCard has shown positive response for the VRE.”

“The sweepstakes added special value to the VRE tickets, and translated into increased ticket sales,” said Sklannik. “VRE wishes to thank MasterCard for this sweepstakes promotion, and looks forward to working together again as we expand our working relationship given the program’s success.” “This promotion was a great way to help us meet our goal of further integrating travel between VRE and Metrorail while promoting the convenience of consumer payment cards,” said Ralph Frisbee, manager, advertising and promotion WMATA. “WMATA is pleased with the results and welcomes the opportunity to further collaborate with MasterCard in the future.” “We’ve enjoyed measurable success with this promotion and look forward to working with WMATA and VRE on new programs to drive additional volume,” said Fred Gore, senior vice president, North America Acceptance, MasterCard. “There is great growth potential for MasterCard in the transportation arena. Additional plans to implement similar programs with other transit authorities are underway.”

Gore adds, “The WMATA SmarTrip and VRE ticket promotion is another example of MasterCard’s commitment to expanding payment flexibility and convenience to consumers, as well as helping merchants improve customer service and processing efficiency.” For more information about commuter ticket vending machines, ticket purchases or payment options, please visit or

About MasterCard International

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard(R), Cirrus(R) and Maestro(R). More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-winning Priceless(R) advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At June 30, 2001, gross dollar volume exceeded US$458 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com][1].

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

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ID DATA EXEC

ID Data plc, the UK’s largest supplier of secure transaction systems and
smart card services, announces the appointment of Claire Stone as
Director of Retail Sales. Claire Stone, formerly the European sales
director of WorldPay plc will take over as Director of Retail Sales for ID
Data. Her experience is ideally suited to head the recently expanded retail
sales division at ID Data. This appointment is in line with the company’s
business expansion plans. Claire will be heading up the recently expanded
retail sales team.

Commenting on the appointment, Peter Cox, Chief Executive of ID Data, said:
“Claire’s skills in managing resources and relationships, developing people
and business planning will build on our existing strong position and the
healthy progress we are making. Her background in retail ideally fits our
business and will fuel further expansion. The wide range of skills brought
to ID Data by this appointment includes specific sector expertise in
e-commerce, telecoms, secure payment systems and banking.”

Upon her appointment, Claire Stone said: “ID Data’s products and services
offer real value to our customers’ businesses. I look forward to being part
of this new team and to widening the international retail markets.”

ID Data plc:

ID Data plc is the UK’s largest supplier of secure transaction systems and
smart card to the international telephony, banking, retail and secure access
sectors. The Company strategy has moved from commodity products into
value-added services and solutions, which has created a solid platform on
which to build further growth. Clients include Vodafone UK, BT and C & W,
Barclays Bank, Tesco, and Exxon Mobil. ID Data has formed agreements with
major global corporations to ensure rapid market development as shown by
their partnerships with Toshiba & Toppan, Total Systems Inc. of the United
States of America, PRISM Holdings (Pty) Limited of South Africa and most
recently OneEighty Software Limited. ID Data has now delivered in excess of
60 million chip cards for the telephony sector. The Company was founded in
1988, and was listed on the AIM in October 2000.
Website:
http://www.id-data.co.uk

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Horizon Group President

Hypercom Corporation, the leading global provider of electronic payment systems, appointed Lisa A. Shipley to the position of president, The Horizon Group. The Horizon Group is the nation’s largest processor-independent, full service provider of point-of-sale products and services. Ms. Shipley will be directly responsible for managing and directing the operations of this Hypercom operating entity. Shipley replaces Scott Rutledge.

“Lisa Shipley is an experienced professional in the electronic payments industry, who has contributed significantly to Hypercom’s success over the last several years. She has in-depth experience in all facets of terminal management and sales. Equally important, the customer comes first with Lisa, and that is perhaps the most critical component of success,” said O.B. Rawls, IV, president, Hypercom North America. “She has the talents and skills to run Horizon’s logistics business. She is a very thorough manager, and she knows the Independent Sales Organizations and their markets. Her new appointment and expanded responsibilities are an expression of the importance Hypercom places on providing a comprehensive set of high quality support services, and is directly in line with our objective to bring to market and support our customers with the most advanced, value-added electronic payment systems.”

Prior to joining Hypercom in 1996, Ms. Shipley served as President, Terminal Management Systems, Inc., a wholly-owned subsidiary of NationsBank. In that position, she was directly responsible for all facets of terminal management and sales, including product deployment, sales, service and leasing.

About Horizon ([www.horizongrp.com][1])

Horizon is the country’s largest processor-independent, full-service provider of point-of-sale solutions and services to nationally recognized processors, banks and Independent Sales Organizations. Headquartered in St. Louis, Missouri, Horizon is a leader in customer service. The company has developed a number of industry firsts, including same-day shipping and deployment, as well as on-line warranty and repair tracking.

About Hypercom ([www.hypercom.com][2])

Hypercom Corporation (NYSE: HYC) is the leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers, and yield increased profitability for its customers. Hypercom’s products include secure web-enabled information and transaction platforms that work seamlessly with its networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications. The company’s widely-accepted ePOS-infocommerce (epic) framework of consumer-activated, EMV-certified, touch-screen ICE (Interactive Consumer Environment) information and transaction platforms enable acquirers and merchants to decrease costs, increase revenues and improve customer retention. Headquartered in Phoenix, Arizona, Hypercom is independently acknowledged as the leading provider of point-of-sale information and transaction platforms. Demand for Hypercom’s platforms surpassed one million units last year alone. Hypercom today maintains an installed base of more than 4 million platforms in over 100 countries, which conduct over 10 billion transactions annually.

[1]: http://www.horizongrp.com/
[2]: http://www.hypercom.com/

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State Card Debt

California continues to lead the U.S. in total bank credit card debt with $81.3 billion outstanding at year end 2000. However Nevada is the fastest growing state, jumping 28% last year, according to research released by CardData. Among other states posting the highest gains: Arizona, Idaho, Delaware and Georgia. New Yorkers carried an average bank credit card debt per household of $6,732 last year, compared to $6,556 for Floridians, and $7,070 for Californians.

BANK CREDIT CARD OUTSTANDINGS BY STATE
(As Of 12/31/00)
1. California $81.3 billion +16%
2. New York $47.8 billion +16%
3. Florida $41.3 billion +17%
4. Texas $32.3 billion +18%
5. Illinois $29.0 billion +15%
Source: CardData
(www.carddata.com)

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Wireless BofA Terminal

Bank of America has introduced a handheld wireless payment terminal for mobile merchants. Manufactured by Thales e-Transactions under the product name of ‘Artema’, the lightweight device is battery-operated. It comes with an integrated thermal printer and is equipped with a base unit that provides the ability to perform dialup downloads and acts as a charging station for the battery. The BofA ‘Wireless Solution’ accesses US Wireless Data’s inter-carrier network, so there is no need to sign up for a separate account. Users can roam nationwide and pay no extra charges, since the network covers 90% of all cosmopolitan areas. When users do end up in a non-coverage area, they can choose to perform the transactions off-line, still swiping the credit card, but storing the transaction data in the terminal.

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AIR MILES STATEMENTS

Symcor Inc. announced that its direct
marketing business, Symcor Direct Response, has reached a four-year agreement
with The Loyalty Management Group Canada Inc. to produce its quarterly AIR
MILES Summary Statement. This statement is delivered to more than 6.7 million
active AIR MILES Collector households across Canada.

The AIR MILES Summary Statement contains a synopsis of Collector
transactions for the quarter, as well as a variety of targeted inserts from
Sponsor organizations, including coupons, special offers and Sponsor
information.

The Summary Statement features an innovative new design that more
effectively organizes and highlights important information and facilitates the
presentation of personalized messages. As well, the solution leverages
advanced innovations in data management, data programming, laser
personalization and lettershop services to enable the AIR MILES Reward Program
to provide the most targeted offers possible for Collectors.

“Symcor Direct Response has unique technology, applications and tools
that can offer its customers enhanced abilities to target customers profitably
and to personalize communications effectively,” said Rich Bassett, President
of Symcor Direct Response.

About Symcor Inc.

Symcor Inc. is a North American leader in providing financial transaction
outsourcing services in two key business areas – Item Processing and Customer
Communication. Symcor provides individualized product and service solutions to
customers in the banking, mutual fund, insurance, retail, telecom and utility
sectors. Symcor’s services include cheque, credit card and payment processing,
application and Web development, and a full range of customer bill and
statement advisory, design, presentment and direct marketing capabilities. For
more information, please visit
http://www.symcor.com.

About The Loyalty Group

Created by The Loyalty Group in 1992, The AIR MILES(R) Reward Program is
Canada’s most popular loyalty marketing program, with more than 60 per cent of
Canadian households — representing more than 11.2 million Canadians —
actively collecting AIR MILES(R) reward miles with the recognizable blue or
gold cards.

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Gift Card Awareness

A new survey has found that 76% of consumers are aware of gift cards as a retail product. Nearly 50 million adults have purchased gift cards and more than 63 million adults have received gift cards in the past 12 months. The findings come from a survey commissioned by First Data’s ‘ValueLink’ service and conducted by TNS Intersearch’s Express Omnibus. Among the three-quarters of consumers aware of gift cards, 44% said they were “very” or “somewhat likely” to purchase as many as four gift cards in the next 12 months with an average value of $44. The research also found the most popular values for purchased cards were $20, $25 and $50, although a majority, 71%, prefer a card with an open-end capability that allows the buyer to determine the dollar amount. Birthdays and the Christmas holiday dominated the list of occasions and reasons people purchased or received an electronic gift card. This year the gift card bandwagon has expanded. Last month Discover announced a gift card and KeyBank unveiled a branch-instantly-issued prepaid MasterCard. Paymentech and Hooters of America also announced in October a gift card program offering ten collectable cards. (CF Library 10/10/01; 10/11/01; 10/16/01; 11/01/01)

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MasterCard Storage

MasterCard International has standardized on EMC information storage systems and software for its transaction information infrastructure. In the last three years, MasterCard has nearly tripled its EMC information infrastructure to over 130 terabytes. MasterCard recently consolidated approximately 50TBs of mission critical information onto EMC information storage from multiple environments, including mainframe, Unix and NT. The consolidation took place when MasterCard moved its information from one data center in St. Louis, Missouri to MasterCard’s Technology and Operations facility located in O’Fallon, Missouri. The EMC information infrastructure supports MasterCard’s range of computing platforms, including IBM UNIX, IBM mainframe, Sun Solaris, and Hewlett-Packard Windows NT.

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c2it Versus PayPal

Citibank’s ‘c2it’ person-to-person payment service has removed the transaction fee charged to its customers to send money online in the U.S. The move by Citibank is aimed directly at wresting PayPal users away from popular online auction Web sites such as eBay. PayPal, with more than ten million registered users and a 90% market share, is set to launch an IPO. Citibank launched its ‘c2it’ service one year ago and has since signed up more than 225,000 users. Earlier this year Citibank changed its fee structure from a flat $2 fee to a fee ranging from 1.0% to 2.2%, depending on the amount transferred, with a 50 cents minimum. Citibank’s P2P payment service is delivered under various brands such as ‘America Online Quick Cash’. Citibank has branded the service with Microsoft under a deal signed in May. Citibank also signed an exclusive deal with AuctionWatch and took ‘c2it’ global in May. Citibank further announced yesterday it is offering online sellers the opportunity to earn a $5 bounty for every new user they refer to ‘c2it’. When a seller includes the ‘c2it’ logo on the item for sale, or on his or her Web site, and a user clicks on the logo and successfully enrolls in ‘c2it’, the seller earns the $5 referral bonus. In October, Citibank began paying Web sites a $5 bounty for new customers. PayPal also pays a $5 bounty for referring new users. To-date PayPal has racked up more than $230 million in losses since it was launched in early 1999. It expects to raise about $80 million in the upcoming IPO. (CF Library 11/1/00; 5/01/01; 5/02/01; 5/22/01; 9/07/01; 10/02/01; 10/25/01)

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ZED SMART CARD

ANZ’s new ‘Zed smart VISA’ card hit New Zealand this week as a television ad
campaign kicked in, featuring Brains from the popular Thunderbirds show. The
new card will enable cardholders next month to download discount product
vouchers from retailers, via the card’s Web site, using personal computer
smart
card reader. ANZ expects to deploy more than 30,000 smart card readers to
retailers by year end 2002. As part of the launch, ANZ is expected to have
converted more than 14,000 ATMs to support smart card transactions in both New
Zealand and Australia. ANZ will launch the ‘smart VISA’ product in Australia
next week.

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PubliCARD’s 3Q/01

PubliCARD, Inc. reported its financial results for the three and nine months ended September 30, 2001. Revenues for the third quarter of 2001 were $1,575,000, comparable to $1,573,000 a year ago. The net loss from continuing operations for the quarter, excluding a repositioning charge of $1,232,000, was $1,567,000, or $0.06 per share, compared with $5,172,000, or $0.22 per share, a year ago. The decline in the net loss is attributable primarily to work force reductions and other cost containment measures associated with the Company’s July 2001 strategic repositioning action. Operating expenses are expected to decrease further as the benefits of the repositioning program and other cost containment measures materialize.

For the nine months ended September 30, 2001, revenues increased to $4,434,000, from $4,215,000 a year ago. The net loss from continuing operations for the nine months ended September 30, 2001, excluding a repositioning charge of $7,317,000, was $8,501,000, or $0.35 per share, compared with $15,432,000, or $0.67 per share, a year ago. Also during the nine months ended September 30, 2001 and 2000, the Company revised its estimates of expenses associated with previously discontinued operations and reversed reserves amounting to $2,350,000, or $0.10 per share, in 2001 and $4,275,000, or $.19 per share, in 2000, respectively. As of September 30, 2001, cash and short-term investments totaled $6,047,000, exclusive of approximately $2,200,000 of escrow deposits established in connection with prior dispositions.

In July 2001, after evaluating the timing of potential future revenues, PubliCARD’s Board decided to shift the Company’s strategic focus and reposition its smart card reader and chip business. In connection with this shift in strategic focus, the Company recorded a charge aggregating $7,317,000 in the second and third quarters of 2001. The charge consisted of write-offs of goodwill and fixed assets, a write-down of inventory to its net realizable value, and severance and other costs principally related to the termination of 36 employees.

In early October 2001, PubliCARD announced the formation of a new minority-owned affiliate, MAKO Technologies LLC, to market and develop its smart card reader and chip technologies, which represented 23% of consolidated revenues for the first nine months of 2001. This decision substantially eliminates the cash funding requirements for the smart card reader and chip business while retaining an upside potential in the form of royalties over the next two years and a 46% ownership interest in MAKO.

PubliCARD will continue to develop and market its smart card platform solutions for educational and corporate sites through its U.K. based subsidiary, Infineer Ltd., which represented 77% of consolidated revenues for the first nine months of 2001. PubliCARD’s future plans revolve around an acquisition strategy focused on businesses in areas outside the high technology sector while continuing to support the expansion of the Infineer Ltd. business.

About PubliCARD, Inc.

Headquartered in New York, NY, PubliCARD today is a smart card technology company providing infrastructure products and solutions to facilitate secure access and transactions. Through its’ Infineer Ltd. subsidiary, the Company designs smart card platform solutions for educational and corporate sites. The Company also licenses industry compliant smart card reader solutions and application specific integrated circuits to MAKO Technologies LLC, a PubliCARD affiliate. More information about PubliCARD’s 3Q/01 results visit CardData ([www.carddata.com][1]).

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

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Online Decline

A new survey says the number of U.S. households subscribing to online services declined nearly four percent during the third quarter. Telecommunications Reports International says its research shows the online market has peaked. The firm found that 67.9 million U.S. customers subscribed to online services as of the end of the third quarter, down from 70.7 million three months prior, or a loss of 2.7 million subscribers. Compared to figures from TR’s ‘Online Census’ a year ago, the current online customer base is about 7.4% higher than the 63.2 million users tallied at the end of the third quarter of 2000. However, the 3.9% decline for the third quarter of 2001 compares to a 1.5% rate of growth during the same period last year and 10.7% growth rate during the third quarter of 1999. Overall, TR’s ‘Online Census’ found that of the six access methods tracked, only two, cable modem and DSL, showed any sizable increases in subscribers during the third quarter. AOL, with 31.3 million subscribers, signed up 1.2 million new users during the third quarter, the smallest quarterly gain since the spring of 1998.

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