MOBILE PAYMENTS

Nokia announced its collaboration with IBM, Luottokunta and Radiolinja to
jointly pilot convenient, easy-to-use and secure credit card payments by
using a mobile phone wallet application.
With this pilot, the parties want to demonstrate their commitment to
the mobile wallet concept and WIM (Wireless Identity Module) technology.
The objective of this collaboration with IBM, Luottokunta and
Radiolinja is to demonstrate how consumers are able to make convenient and
secure mobile transactions by using the wallet for transferring payments
and loyalty program information, and WIM for making non-repudiated
transactions. Nokia will provide the pilot phones with the wallet
application and WIM functionality support including a GSM SIM/WIM card
issued by Radiolinja. The chip card will adhere to the WAP Forum WIM
specifications and support standardized mobile public key functionality
offering digital signature capability.

Luottokunta will provide Digital POS (point of sale) service for
merchants. In the pilot service implementation, Luottokunta’s Digital POS
will be able to validate Radiolinja’s WPKI (Wireless Public Key
Infrastructure) signatures and certificates simultaneously with credit card
payment authorizations that are received from the WAP stores via Internet.
Luottokunta’s Digital POS was developed together with IBM Finland. IBM,
having a 30% market share of the Internet market places, will provide the
payment infrastructure consisting of WebSphere Commerce Suite and WebSphere
Payment Manager. IBM will also act as the systems integrator in the pilot.
Radiolinja, as a network operator and trusted 3rd party, will provide the
GSM SIM/WIM chip cards and the certificate database.
The parties are in the process of choosing suitable merchants for the
pilot, which will start in the fourth quarter of 2001 in Finland. The pilot
is an example of the tendency towards development of end-to-end solutions
done in collaboration with various parties, such as operators, banks,
infrastructure vendors and handset manufactures that support the same
technologies to build serviceable mobile market places.
Nokia has today launched the wallet application with the Nokia 6310
in conjunction with the Mobile Commerce World Europe 2001 Conference in
London. The wallet application is being demonstrated in London Arena at
booth D12 from September 25-27, 2001.

About IBM

IBM is the world’s largest information technology company, with 80
years of leadership in helping businesses innovate. Drawing on resources
from across IBM and key Business Partners, IBM offers a wide range of
services, solutions and technologies that enable customers, large and
small, to take full advantage of the new era of e-business. The fastest way
to get more information about IBM is through the IBM home page at www.ibm.com.

About Luottokunta

Luottokunta is a Finnish credit institution that issues and acquires
Visa and Eurocard/MasterCard cards. Luottokunta is jointly owned by Finnish
banks and merchants, offering its customers purchasing power regardless of
time, place and device. Cornerstones of operations are cost-effectiveness,
risk management, reliability of the service and high technical know-how.
About Radiolinja

Founded in 1988, Oy Radiolinja Ab was the first company in the world
to open a GSM network, in 1991. Radiolinja is an operator focusing on
wireless mobile telecommunications, which offers digital mobile
telecommunications services to private and corporate customers. Radiolinja
produces and actively develops various mobile services to enable Finns to
communicate independently of time and location. The Radiolinja Group
includes Oy Radiolinja Ab, and the subsidiaries Radiolinja Eesti AS, UAB
Radiolinja, SIA Radiolinja Latvija and Ecosite Oy. The Group’s net sales in
2000 totalled EUR 614 million and it had more the 1,000 employees.
Radiolinja forms part of the Elisa Group.

About Nokia

Nokia is the world leader in mobile communications. Backed by its
experience, innovation, user-friendliness and secure solutions, the company
has become the leading supplier of mobile phones and a leading supplier of
mobile, fixed and IP networks. By adding mobility to the Internet Nokia
creates new opportunities for companies and further enriches the daily
lives of people. Nokia is a broadly held company with listings on six major
exchanges.

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Access Cash Acquisition

eFunds Corporation has signed an agreement to purchase all of the remaining equity interests in Access Cash International for about $43.9 million in cash. eFunds first acquired a minority interest in ACI last year. Access Cash is the second largest independent ATM service provider in the USA, with 8,400 owned or managed ATMs. Access Cash provides turnkey ATM deployment solutions, including ATM sales and management activities, as well as branding and advertising services.

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Stock Recovery

Credit card stocks made a substantial recovery yesterday after being mercilessly pounded last week. Sub-prime issuers lead the recovery, as Providian gained 12% while Metris and CompuCredit gained more than 11%. MBNA also posted a strong 11%+ gain. Both Capital One and American Express picked up more than 7%. Analysts upgraded MBNA and Capital One yesterday. After the stock market fell more than 14% last week, the broad market gained about 4.4% Monday. NextCard lost about 5% yesterday. This morning stocks headed up again as the market opened.

Mon 9-24-01
COMPANY CLOSE %CHG LOW
Providian 20.80 +12.07 19.00
CompuCredit 6.75 +11.76 6.26
Metris 23.41 +11.42 22.00
MBNA 27.91 +11.42 25.06
Capital One 43.05 +7.63 42.50
Amer Exp 27.51 +7.42 26.55
Household 52.85 +4.99 50.83
Advanta 9.21 +0.66 9.05
NextCard 5.09 – 5.04 4.97
Source: CardData (www.carddata.com)

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ABM Solution

Greenland Corporation said this morning that Trilicom Data Solutions has completed a new self-service check cashing system, designed to support Greenland’s ‘MAXcash’ ABM, and third-party check cashing POS systems. The system, marketed under the brand name ‘Check Central Solutions’ will be sold as a turnkey, single-store automation package, or as a networked back-office transactions processing solution. Greenland is the developer and manufacturer of the ‘MAXcash Automated Banking Machine’ and related transaction processing systems software designed to provide self-service check cashing, ATM functionality, phone card and money order dispensing, as well as the capability for other future products and services.

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MagIC 9000 Certified

SchlumbergerSema announced that Global Payments Inc. has certified its state-of-the-art MagIC 9000 point-of-sale terminal. The certification confirms the terminal’s complete compatibility for wired and wireless credit and debit card payment transactions in conjunction with Global Payment System’s advanced software applications.

With the new certification, the versatile, multi-application SchlumbergerSema MagIC 9000 terminal can serve as a stand alone payment terminal, be used with Global Payment System’s NET-terminal software, and be integrated with third party software for use in general retail applications and for hospitality industry solutions, such as Global Payment System’s NET-Pad. Additionally the MagIC 9000 terminal can also house gift certificate and loyalty applications for the service provider.

“We are pleased to offer the all-encompassing SchlumbergerSema MagIC 9000 terminal to our retail customers in Canada,” said, Mig Migirdicyan, president of Global Payments Canada-Indirect.”

Providing merchants with rapid-time to market, reduction in costs, increased revenues from value-added loyalty and gift card program, and expanded market availability, the MagIC 9000 terminal offers a flexible solution that enables retailers to quickly and cost effectively transition to new smart-card based applications.

About SchlumbergerSema

SchlumbergerSema is a leading information technology services company providing consulting, systems integration, managed services, business continuity systems, products and IP network security solutions serving the elecommunications, utility, finance, transport, oil and gas, and public sector markets. With more than 30,000 employees in 130 countries, SchlumbergerSema is one of two business segments of Schlumberger Limited, a global technology services company. For more information about SchlumbergerSema, visit .

About Global Payments Inc.

Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada and the United Kingdom. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.

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QuikCredit Launched

Global Cash Access, a supplier of cash access, financial management and customer relationship marketing technologies to the gaming industry, has successfully launched QuikCredit at the Imperial Palace Casino in Las Vegas.

“Imperial Palace is the first casino to utilize QuikCredit, an innovative new GCA product that enables casinos to extend credit and tap new sources for increased gaming revenue,” said Kirk Sanford, GCA’s chief executive officer. QuikCredit, a gaming industry first, is powered by GCA’s proprietary Internet technology and the databases of Central Credit, TeleCheck and GCA – the most complete in the industry. QuikCredit presents an alternative for patrons who have been denied cash advance or ATM transactions for any number of reasons and for casinos that don’t extend credit to middle-level ($300 to $5,000) patrons or don’t currently extend credit at all.

In addition to authorizing and extending credit, GCA performs all debt collections, enabling casino managers to focus on hospitality and other customer service aspects of their business.

“A certain percentage of cash access transactions get declined by cardholders’ banks, but with QuikCredit the denial message at the ATM or cash advance terminal instructs customers how to proceed with a QuikCredit transaction to obtain funds,” said Kurt Sullivan, executive vice president of GCA and director of the company’s QuikCredit division. “The credit-worthiness of the patron is quickly determined by a check against our vast database, so it’s a good experience for the customer and also benefits the casino by generating new gaming revenue.”

Patrons can apply for a QuikCredit line through a process as simple as a credit card cash advance using the Web-based technology of GCA’s QuikCash Plus Web (QCPWeb) full service transaction processing system. While QuikCredit currently serves walk-up patrons with on-the-spot credit approval, future enhancements will allow patrons to pre-qualify for a credit line and have it waiting for them when they arrive at the casino.

“GCA pioneered the cash access paradigm in the gaming industry, and QuikCredit is yet another extension of GCA’s commitment to deliver innovative products that create new gaming revenue sources for the casino,” said Sanford. “It’s a win-win for us – more money on the casino floor without risk,” said Craig Hawkins, director of finance at the Imperial Palace in Las Vegas. “QuikCredit allows us to address a market segment that was not previously served. The GCA team did a commendable job launching the QuikCredit product as well as training and working with our staff. The product is simple to use, and because it’s Web-based, we experienced zero downtime of our other QCPWeb products, despite the integration process required. GCA has always provided us with first-rate service, and the successful launch of QuikCredit has held true to that tradition.”

About Global Cash Access

Global Cash Access was formed in 1998 and is a joint venture of First Data Corp. (NYSE: FDC) and M&C International, Inc. Providing access to the gaming industry’s largest patron database, Global Cash Access uses Internet technologies to deliver funds transfer, financial management and customer relationship marketing services to more than 1,000 gaming properties nationwide. More information on the company is available at [www.globalcashaccess.com][1].

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

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ICE Report

Hypercom confirmed Monday it has shipped more than 300,000 of its ‘ICE’ terminals to-date. Hypercom shipped the first ‘ICE’ terminals in 1999. Less than 12 months later, the company had introduced a full line of these high performance devices. By June 30, demand for ICE terminals had generated a $77 million product backlog. Today, shipments of the ‘ICE’ terminals represent 35% of Hypercom’s total worldwide shipments. With demand continuing unabated, that percentage is projected to top the 50% mark this year. Hypercom’s ‘epic (ePOS-infocommerce) ICE’ devices are compact, high performance, touch screen terminals. ICE terminals incorporate physical security features and Hypercom’s ‘TranSafe’ operating system that integrates firewall-protected, multi-tasking, multi-applications functionality, along with EMV chip card capability, a secure PIN pad, built-in HTML/HTTP web browser, and integrated receipt printer.

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Cap One Auto Loans

Capital One has agreed to acquire PeopleFirst, a nationwide online provider of direct motor vehicle loans. The purchase price is 3.7 million shares of Capital One common stock or about $150 million. Cap One entered the auto finance business in 1998 when it acquired Summit Acceptance Corporation and is now growing the business as Capital One Auto Finance. San Diego-based PeopleFirst is privately held and has more than 270 employees. It will become a wholly owned subsidiary of Capital One. PeopleFirst has provided nearly $2 billion worth of motor vehicle loans since 1997.

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VENDTEK & ROK PART

VendTek Systems Inc. announces that the Product Supply and Exclusivity Distribution Agreement and
various Revenue Sharing Agreements, made between the Company and Rok, have
been terminated by mutual agreement.
“Our relationship with Rok has culminated in over $6 million in sales and
$450,000 in licensing revenues to the Company” says VendTek President Paul
Brock. “Together we pioneered new technology for payment solutions in the
prepaid cellular industry. The fast changing market conditions outmoded the
contractual relationship between our companies. As a result, the companies
have agreed to terminate their product exclusivity and revenue sharing
agreements and VendTek has entered into a new Support Agreement for the system
already sold and operating in the UK. Moving forward both companies now have
more flexibility in competing in this dynamic marketplace.”

About e-Fresh(TM)

The e-Fresh(TM) Network enables cellular and other prepaid service
providers to distribute services electronically to consumers via a proprietary
real time network of self-serve kiosks called e-Fresh Stations and POS
terminals connected to a central server. The system includes proprietary
encryption technology for securing the transmission of the transactions and
significantly reduces the operating costs for companies, improving
efficiencies and profits.

About Now(TM) Prepay

Now(TM) Prepay is a new subsidiary of VendTek Systems Inc. set up to
build a ubiquitous, North American electronic retail network of self-serve e-
Fresh(TM) stations and POS terminals for the delivery of prepay services, in
conjunction with strategic retail, prepay service and transaction processing
partners. Now Prepay has the exclusive license for e-Fresh(TM) in North
America.

About VendTek

VendTek uses its expertise in payment and self-serve technologies, smart
cards and networking to develop systems for transaction automation. VendTek’s
secure proprietary systems reduce shrinkage, improve access for consumers,
increase the number of selling outlets and selling hours, and enhance overall
security making the systems superior to traditional distribution and
alternative channels.

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Discover 3Q/01

Morgan Stanley reported Friday that its Discover credit card unit had net income of $196 million during the quarter ending August 31, a 14% decline from last year. MS says the depressed results are primarily due to higher net charge-offs partially offset by increases in net interest income, and merchant and cardholder fees. Managed credit card loans rose to $49.7 billion at quarter end, an increase of $4.9 billion, or 11%, from a year ago. The interest rate spread widened 79 basis points over the same period, as a result of the decline in interest rates that began in the first quarter. Merchant and cardholder fees rose 3% to $674 million. Transaction volume increased 6% from the third quarter of 2000 to $23.3 billion. The credit card net charge-off rate increased to 5.79%, 161 basis points higher than a year ago. The over-30-day delinquency rate was 6.31% compared to 5.47% a year ago. The increase in the charge-off rate reflected continued weakness in the U.S. economy and the adverse impact of the seasoning of cardholder accounts and a high level of national bankruptcy filings. Discover opened over 1 million new cardholder accounts during the quarter.

DISCOVER CARD PORTFOLIO SNAPSHOT
3Q/00* 4Q/00* 1Q/01* 2Q/01* 3Q/01*
Receivables: $44.8b $47.1b $49.5b $50.2b $49.7b
Volume: $21.9b $22.8b $24.4b $23.5b $23.3b
Accounts: 41.4m 42.6m 43.7m 44.7m 45.4m
Actives: 23.1m 23.8m 24.0m 24.3m 24.0m
Chargeoffs: 4.18% 4.57% 4.79% 4.98% 5.79%
Delinquency: 5.47% 5.92% 6.34% 5.84% 6.31%
Yield: 14.05% 14.13% 13.66% 13.34% 13.34%

*3Q/00 fiscal quarter ended 8/31/00; 4Q/00 fiscal quarter ended 11/30/00; 1Q/01 fiscal quarter ended 2/28/01; 2Q/01
fiscal quarter ended 5/31/01; 3Q/01 fiscal quarter ended 8/31/01.
Source: CardData (http://www.carddata.com)

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Smart Card Boon

The recent terrorist attacks will most likely raise awareness and accelerate the adoption of smart card and biometric-based security systems. A government committee is gearing up to recommend the use of facial recognition technology next week, and some manufacturers of high capacity smart cards have been contacted by U.S. government officials. The government committee indicated Friday it will be presenting its report to the U.S. Department of Transportation on October 1, recommending the use of facial recognition technology at U.S. airports, especially Reagan National Airport and Logan International Airport. The facial recognition technology is being currently being piloted in check cashing machines and ATMs. Meanwhile Seattle-based UltraCard, Inc. says it has been contacted by government officials concerning security uses of the ‘UltraCard’ technology which has 600 times the data storage capacity of current 32kb capacity smart cards. The Smart Card Alliance said Friday it will hold its annual meeting from October 9-11, in McLean, Virginia to explore the critical role smart card technology can play in a new era of increased security. The conference program is entitled “A Future Built on Trust”.

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GCA Signs The Palms

The Palms Casino Resort, scheduled to open in Las Vegas in December 2001, and nine other properties recently signed contracts to utilize the technologically advanced products and services of Global Cash Access, a supplier of cash access, financial management and customer relationship marketing technologies to the gaming industry.

Under the agreement, Palms Casino Resort will take advantage of GCA’s Casino Cash Plus 3-in-1 ATM and QuikCash Plus Web (QCP Web) products as well as Central Credit and Western Union. The casino will also utilize GCA’s new Guest Development Marketing service, QuikMarketing.

“As a new, state-of-the-art casino, we want to provide the best gaming experience to our customers,” said Al Zayas, director of cage operations at Palms Casino Resort. “GCA provides the most technologically advanced cash access services to the gaming industry, so it made perfect sense to install their products at our casino.”

Statistics show that approximately 30 percent of standard ATM cash request transactions at gaming properties are denied because of bad PIN numbers, exceeded limits or insufficient funds. GCA’s Casino Cash Plus 3-in-1 ATMs eliminate such denials through a patented roll-over feature, which gives patrons the option of obtaining funds via a POS debit transaction or a pinless credit card cash advance. The Casino Cash Plus 3-in-1 ATM has become widely accepted due to its convenience to casino patrons and proven profitability to casino operators.

QCP Web, a Web-based, full-service transaction processing system for cage operations, consolidates the products of GCA cash advances, Telecheck, Central Credit, Western Union, ACM enrollment and QuikCredit. It also tracks gaming patron marketing information across all product lines and reduces the need for multiple pieces of hardware in the cage.

GCA’s QuikMarketing service will aid Palms Casino Resort in promoting its grand opening with special offers, programs and events by using the gaming industry’s largest patron database to distribute marketing materials with pinpoint precision to targeted gaming customers.

Palms Casino Resort, located on a 32-acre site just west of the strip on Flamingo Road, in Las Vegas, embraces the pleasures of a resort get-away to provide a comfortable gaming experience. The casino will feature 2,400 slot machines, 55 table games, keno, poker and a race and sports book in 95,000 square feet of space.

In addition to Palms Hotel Casino, properties that recently signed agreements with GCA are:

— Casablanca Resort and Casino – Mesquite, Nev.

— Casino Rouge – Baton Rouge, La.

— Grand Victoria Rising Sun – Rising Sun, Ind.

— Kla-Mo-Ya Casino – Chiloquin, Ore.

— Oasis Resort and Casino – Mesquite, Nev.

— Pompano Park – Pompano, Fla.

— Riverside Resort and Casino – Laughlin, Nev.

— Royal Club Casino – Seattle, Wash.

— Virgin River Hotel and Casino – Mesquite, Nev.

About Global Cash Access

Global Cash Access was formed in 1998 and is a joint venture of First Data Corp. (NYSE:FDC) and M&C International, Inc. Providing access to the gaming industry’s largest patron database, Global Cash Access uses Internet technologies to deliver funds transfer, financial management and customer relationship marketing services to more than 1,000 gaming properties nationwide. More information on the company is available at [www.globalcashaccess.com][1].

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

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