MONEYGRAM

MoneyGram Payment Systems, Inc., and Elektra have agreed to provide the
MoneyGram wire transfer service for the consumer electronic retailer’s 21
superstores in the Dominican Republic. MoneyGram’s subsidiary, MoneyGram of
New
York, LLC, was instrumental in securing this contract.

According to Gene Schott, president of MoneyGram New York, LLC, the multi-year
agreement provides a significant corridor for consumers sending or receiving
funds to or from the Dominican Republic.
“In our experience, the vast majority of money wire transactions for MoneyGram
of New York consumers center around the Dominican Republic corridor,” he said.
“Elektra’s excellent reputation and coverage of stores throughout the country
provide our customers with an additional level of service.”

He said customers in the Dominican Republic can pick up funds in any Elektra
location in as little as 10 minutes following the transfer from any of the
37,000 MoneyGram agent locations in more than 150 countries around the globe.
MoneyGram transfers are used world wide by people without traditional banking
relationships, expatriates who send money to their home country, traditional
bank customers in need of emergency funds, tourists without local bank
accounts
and business services that need rapid and economical wire transfer services.
MoneyGram Payment Systems, Inc., a subsidiary of Travelers Express Company, is
a leading money transfer services company. Travelers Express is a
subsidiary of
Viad Corp (NYSEVVI) and provides payment services in the financial, retail
and
money transfer areas.

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E-CERT SMART CARD

Hongkong Post has signed a deal with VISA International for the development
of a Hongkong Post e-Cert enabled multi-application smart card using Open
Platform. This is the first time that Hongkong Post has collaborated with a
payment association to explore the potential of e-Cert enabled Open
Platform smart cards to give end-users greater convenience, personal
security and protection. Under the deal, VISA and Hongkong Post will
jointly study the suitability of the Open Platform to support Hongkong
Post’s e-Cert and its Public Key Infrastructure, and the suitability for an
Open Platform smart card to carry a Hongkong Post e-Cert as a medium to
authenticate the identity of the holder. In the future, consumers will be
able to authenticate and sign digital documents and to make payments by
just one single e-Cert enabled smart card.

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CYOTA & MS

Cyota, a leading payment security company, announced today a cross-licensing
agreement with Microsoft Corp., giving Cyota a license to Microsoft patents in
the area of proxy number technology. The companies will also be working
together to develop secure transaction services, based on Microsoft .NET
technologies, designed to help businesses deliver a new, richer customer
experience.

“We are delighted to have signed a deal with Cyota,” commented Brian Arbogast,
Vice President, Personal Services Group at Microsoft. “Cyota’s products are
positioned to help financial institutions deliver secure transactions to their
customers shopping online, which is consistent with the Microsoft .NET strategy
to enable the richest and most secure online experience possible; any time,
anywhere and on any device.”

Cyota’s flagship product, SecureClick, allows consumers to shop online without
revealing their real credit card number. This is achieved by replacing a
customer’s real credit card number with a one-time transaction number, which
expires after each transaction.

“This licensing agreement further advances Cyota’s position as the leader in
the secure payments space,” commented Gary Heatherington, Cyota CEO. “We are
thrilled to explore additional opportunities to work with Microsoft in the
future.”

“Additionally, this agreement provides Cyota with comprehensive Intellectual
Property coverage in the online payment space, and will facilitate the use and
adoption of Cyota’s surrogate number technology for Internet purchases
worldwide,” added Heatherington.

About Cyota
Cyota (www.cyota.com) is an innovative technology company
that is dedicated to helping financial institutions strengthen their customer
relationships through reliable, flexible, easy to use online security, payment
and transaction products. Founded in 1999 by leading card and security
industry experts, Cyota is headquartered in New York with offices worldwide.
Cyota is led by a respected management team with extensive experience in the
security, Internet and banking industry and is supported by an international
Advisory Board comprised of world-renowned financial and security experts.

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VISA – Sprint

VISA U.S.A. and Sprint this morning announced an agreement to offer secure payments in the mobile marketplace. The agreement will also drive higher VISA charge volume through the sale of Sprint products and services. VISA U.S.A. and Sprint plan to develop joint consumer promotions at Sprint Store retail locations, online and on VISA’s web site. Sprint will also be able to target U.S. VISA cardholders through promotions via member financial institutions. Sprint has more than 23 million business and residential customers.

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Gas Gift Cards

With gas prices hovering near $2 per gallon nationwide, auto dealers are offering prepaid gas incentives to new car buyers. This week the Chrysler Jeep Superstores in Detroit are offering consumers a $300 pre-paid ‘Gas Gift Card’ with the purchase or lease of new minivans. The promotion will end this week. Many gas retailers offer prepaid gift cards. ExxonMobil offers a prepaid card in denominations ranging from $25 to $100.

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Talking ATMs

Citibank has installed New York’s first talking ATMs, launching a sixteen-month plan to install a talking ATM at each of Citibank’s Financial Centers and its ATM centers across the country. Citibank joins Bank One, BofA, Wells Fargo and Mellon in the migration to talking ATMs. Citibank said yesterday it has also installed five talking ATMs in California. The ATMs, using text-to-speech technology, deliver audible information privately through an earphone so that persons who are blind, or who may otherwise have difficulty reading an ATM screen in print, can independently use the ATM. Last month, Bank One installed its first talking ATMs in Illinois and Ohio. Bank One installed 30 of the newly developed ATMs in the Chicago and Columbus areas. By the end of the year the bank plans to install 100 additional talking ATMs in these and other markets. Mellon Bank announced in February the installation of eleven talking ATMS in Pittsburgh, Philadelphia, and Harrisburg. Last summer, Bank of America installed its first fifteen talking ATMs in California. BofA announced that over the next three years, more than 2,500 talking ATMs will be installed in California and Florida. In April 2000, Wells Fargo installed twenty talking ATMs in the San Francisco Bay Area, Los Angeles and San Diego. Wells Fargo is currently upgrading 1,500 ATMs in California. (CF Library 4/20/00; 6/6/00; 2/22/01; 3/30/01; 4/26/01)

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Cyota & MS

Cyota, a leading payment security company, announced today a cross-licensing agreement with Microsoft Corp., giving Cyota a license to Microsoft patents in the area of proxy number technology. The companies will also be working together to develop secure transaction services, based on Microsoft .NET technologies, designed to help businesses deliver a new, richer customer experience.

“We are delighted to have signed a deal with Cyota,” commented Brian Arbogast, vice president, Personal Services Group at Microsoft. “Cyota’s products are positioned to help financial institutions deliver secure transactions to their customers shopping online, which is consistent with the Microsoft .NET strategy to enable the richest and most secure online experience possible; any time, anywhere and on any device.”

Cyota’s flagship product, SecureClick, allows consumers to shop online without revealing their real credit card number. This is achieved by replacing a customer’s real credit card number with a one-time transaction number, which expires after each transaction.

“This licensing agreement further advances Cyota’s position as the leader in the secure payments space,” commented Gary Heatherington, Cyota CEO. “We are thrilled to explore additional opportunities to work with Microsoft in the future.”

“Additionally, this agreement provides Cyota with comprehensive Intellectual Property coverage in the online payment space, and will facilitate the use and adoption of Cyota’s surrogate number technology for Internet purchases worldwide.” added Heatherington.

About Cyota

Cyota (www.cyota.com) is an innovative technology company that is dedicated to helping financial institutions strengthen their customer relationships through reliable, flexible, easy to use online security, payment and transaction products. Founded in 1999 by leading card and security industry experts, Cyota is headquartered in New York with offices worldwide.

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Proton Open Platform

Proton World announced that it had successfully implemented the new Open Platform 1.5.4 Terminal Framework specification, developed by the Device Committee of GlobalPlatform, a cross-industry organization that owns and develops the Open Platform specifications for multiple-application smart card platforms.

Proton World has developed and implemented OPTF-compliant modules for e-purse load, purchase and balance reading, using both the Proton R3 and the Proton Prisma technology releases. The modules are platform-independent, and were created using the JavaÔ programming language and inter-application and application-platform interfaces defined and specified by GlobalPlatform. Proton World and GlobalPlatform believe that the existence of large terminal infrastructures is key to the future development of large-scale smart card systems. Until now, there was a lack of global standards for terminals, and terminal development was a slow and costly process, often dependent on the specific requirements of each customer or scheme. The OPTF standard is an important step towards a new generation of smart card terminals that are platform and vendor-independent. Its adoption means that costly development work can be done once and then replicated in many different implementations. It will also open the terminal development process to developers without specific terminal knowledge.

The Proton World OPTF implementation was demonstrated at the Proton World booth at the CardTech/SecurTech trade show in Las Vegas from 14-17 May. The demonstration used a PC, a C-ZAM/Smash smart card terminal from Banksys and a Proton Prisma smart card.

Yves Moulart, CTO at Proton World, said “We believe that OPTF solves many of the problems associated with traditional terminal development, and opens the door to a new generation of terminals, just like OP 2.1 and CEPS have led to a new generation of smart cards. Both of these developments will help to realize the full potential of smart cards.”

Bernard Morvant, chairman of the GlobalPlatform Device Committee, said ” I am delighted, but not surprised to see that Proton World is one of the first in the world to implement OPTF. They have been very active members of the Device Committee and this achievement confirms their commitment to remaining at the cutting edge of international smart card standards development.”

Vincent Roland, senior vice-president, Terminal and Card Applications at Banksys, said “Banksys is very pleased to have collaborated with Proton World in this development, which clearly demonstrates the suitability of our C-ZAM/Smash terminal for global deployment.”

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LML Signs APS

LML Payment Systems Corp. has signed an electronic transaction processing contract with Advanced Purchasing Systems of Phoenix, Arizona.

LML, through its proprietary transaction processing software REPS (Retail Electronic Payments System) will provide check authorization processing along with credit, debit and EBT card authorization and selective routing services to Advanced Purchasing Systems’ four-store grocery chain operating under the trade name Premier Desert Markets, located in the Phoenix, Arizona area.

“We are pleased with this contract and look forward to providing these services to the Premier Desert Market stores. We also look forward to the opportunity to provide additional related check services in the months ahead,” said corporation president and CEO, Patrick H. Gaines.

The Corporation, through its subsidiary LML Payment Systems Corp., is a financial payment processor providing end-to-end check processing solutions including Electronic Check Conversion (whereby paper checks are converted into electronic transactions), electronic check verification, electronic check re-presentment (whereby returned paper checks are re-presented for payment electronically), and primary and secondary check collection to supermarkets, grocery stores, multilane retailers, convenience stores and other national, regional and local retailers. We also specialize in providing selective routing, including real-time monitoring of check, debit, credit and EBT transactions for authorization and settlement through our flagship transaction processing product REPS (Retail Electronic Payment System).

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BOM P2P

Any Bank of Montreal customer with an email address will be able to receive money by email in real time as a result of a letter of intent signed by Bank of Montreal and CertaPay Inc. The bank’s clients will have a secure person-to-person cash transfer system. To transfer funds, bank customers log on to their existing Web account, click on the email payment feature and enter the recipient’s name and email address. An email message instantly notifies the recipient that funds have arrived, and at the recipient’s choice, the cash can be directed to their preferred account – savings, checking or credit card.

“CertaPay’s email money system addresses a real customer need that, so far, has been unfulfilled in the payments industry. That’s the need to easily, securely and affordably transfer money person-to-person electronically,” said Marnie Kinsley, executive vice-president, E-Business, Emfisys, and president and CEO Cebra Inc., Bank of Montreal.

“It will be like sending an electronic check, which is a vast improvement over the paper-based process of mailing a check.”

When the CertaPay platform is up and running later this year, Bank of Montreal customers, along with those of CIBC, Scotiabank and TD Canada Trust, will have access to the first bank-based, email, P2P money system of its kind and magnitude in the world.

“Email is ubiquitous,” says Michael Ginsberg, CertaPay’s CEO. “It’s universal. It’s international. That makes email a perfect medium to facilitate money transfer. The very fact that we’ve attached money movement to email has a lot of foreign banks interested in our platform.”

ComQUEST Research Inc. estimates that today 58 percent or about 14 million Canadians adults use at least one email address. According to a March 2001 estimate by the Canadian Bankers Association, there are approximately 20 million retail banking customers in Canada.

Banking industry surveys show that Canadians have confidence in the safety and security of their banking system when conducting personal electronic financial transactions. P2P email money transfers will originate from within a bank’s password protected, authentication processes and infrastructure. This means customers do not have to establish new accounts, IDs or passwords with third parties other than their bank.

Also, customers do not need to know sensitive information about their recipient, such as a bank account number, for example. They require only the recipient’s name and email address, whether it’s to send money to family or friends, pay the rent, donate to charities, contribute to fundraisers or pay the daycare center.

“Canadians have been able to make direct electronic payments to established businesses and organizations for many years,” added Ms. Kinsley. “Using email as the messaging system, funds will be transferred and payments reconciled just as they’ve always been. By harnessing the power of the Internet, we’re helping clients manage their money more easily.”

About Bank of Montreal

Bank of Montreal, Canada’s first bank is a highly diversified financial services institution. The bank operates more than 30 lines of business within its group of companies, including BMO Nesbitt Burns, one of Canada’s largest full-service investment firms and Chicago-based Harris Bank, a major U.S. mid- west financial services provider.

About CertaPay

CertaPay Inc. specializes in point-to-point Internet payment solutions for financial institutions (FI). The CertaPay platform is designed to work under FI brands, under FI security and under FI control. CertaPay’s solutions empower FIs to retain full control over their customer relationships, offer new electronic payment services and leverage their high levels of trust for security and moving money. Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and TD Canada Trust are integrating CertaPay’s person-to-person payment capability, which enables online banking customers to email money.

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Check Solutions Sold

First Tennessee National Corp. announced that its principal banking subsidiary, First Tennessee Bank N.A., along with its partner, International Business Machines Corporation, has entered into a definitive agreement with Carreker Corporation, Dallas, Texas, for Carreker to acquire all of FTB’s and IBM’s partnership interests in Check Solutions Company, a check and image processing software development and installation business.

The transaction is expected to be completed in the second quarter of 2001, subject to necessary approvals, routine closing conditions and the completion of financing for which Carreker has arranged a commitment.

Check Solutions is a partnership formed in 1990 between FTB and IBM that provides financial institutions with check processing and related software solutions, implementation services and education programs. First Tennessee decided to sell its partnership interests in Check Solutions as part of its plan to improve its long-term growth rate by enhancing its overall business mix.

John Kelley, First Tennessee president of business financial services, said, “Carreker’s expertise in developing and marketing bank software solutions and related services clearly demonstrates its leadership in the industry. We are pleased to have concluded this sale to a company that shares First Tennessee’s commitment to providing the best products and services available.”

About First Tennessee National

First Tennessee National Corp., parent company of First Tennessee Bank, has assets of $19.3 billion and is a nationwide, diversified financial services institution and one of the 50 largest bank holding companies in the United States in asset size and market capitalization. Banking and other financial services are provided through the regional banking group and three national lines of business: First Horizon Home Loans, First Tennessee Capital Markets and transaction processing which includes First Horizon Merchant Services (credit card merchant processing) and Express Processing (nationwide payment processing operation). More information is available at www.FirstTennessee.com.

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Certegy

Equifax announced that its Payment Services division, which will be spun off, has selected Certegy as its new name. In October, Equifax approved a plan to create an ‘Information Services’ company and a ‘Payment Services’ company. Equifax’s Payment Services division provides credit and debit card transaction processing, card processing software, portfolio management and analysis, cardholder customer service, card enhancements, credit marketing, risk management, merchant processing, and collections to independent banks and credit unions in the U.S. and major card issuers globally.

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