Trintech & TANTAU

Trintech Group PLC and TANTAU, a leading developer of software and services for mobile ecommerce (m-commerce), have announced a strategic partnership to deliver an integrated mobile banking and secure ePayment infrastructure for the next generation of wireless devices.

Through this partnership, TANTAU and Trintech will provide financial services institutions and service providers with the ability to offer customers convenient payment options for wireless transactions through a secure “virtual credit card” that automatically form fills Internet merchants’ payment pages and acts as a portal to wireless ebanking services.

As part of the agreement, Trintech and TANTAU are applying engineering resources to integrate Trintech’s PayWare mAccess(TM) and PayWare eIssuer(TM) server-based products with TANTAU’s Wireless Internet Platform. With this combined technology, banks can expand their customer relationships by enabling customers to conveniently and securely conduct wireless e-commerce transactions without having to repeatedly input payment information.

Consumers first set up a virtual payment profile through their bank or financial services institution, which stores the information so it can be quickly accessed for a wireless e-commerce transaction. Using a wireless device that accesses Trintech’s mAccess, consumers can shop using a virtual credit card that resides in Trintech’s secure PayWare eIssuer. Both products from Trintech, in conjunction with TANTAU’s Wireless Internet Platform, are located at the financial institution or a trusted service provider. TANTAU’s software provides the highly scalable and secure conduit for the wireless device to access the bank’s IT infrastructure, and serves as the wireless and wired e-commerce platform.

“For financial services organizations, wireless banking and secure payment capabilities are the way to build customer loyalty and increase customer retention,” says John Sims, president and chief executive officer of TANTAU Software. “Our agreement with Trintech helps deliver on the promise of secure banking and secure mobile e-commerce for the millions of consumers that will access their banking services, including ePayment execution, via wireless devices.”

“Providing secure ePayment available on any device is a core mission in Trintech,” says John McGuire, CEO of Trintech. “By partnering with a market leader like TANTAU, we can add wireless financial services and secure ePayment. This allows banks to enjoy the substantial synergies that accrue from the combination of our joint range of wireless products.”

About TANTAU’s Wireless Internet Platform

TANTAU’s Wireless Internet Platform enables an enterprise or a service provider to integrate its wireless and wired online channels. The platform interacts with back-end applications and data sources and gives the ability to create personalized applications based on user preference. It features multiple protocol support, end-to-end security from the device to the data center, multi-platform availability, and offers critical scale and performance features such as load balancing and fail-over, and wireless session management. TANTAU’s software brings security, scalability, high availability and transaction integrity, as well as allowing a direct link between a bank and its mobile customers.

About PayWare mAccess

PayWare mAccess is a modular, server-based mCommerce payment solution that enables card issuing banks, portals/ASPs, content converters and wireless network operators to securely process card payment transactions from a variety of wireless devices, including cell phones, PDAs and set-top boxes. When deployed in conjunction with a server-based consumer payment technology, such as Trintech’s PayWare eIssuer, wireless users benefit greatly from enhanced security and “one touch” form fill of mobile commerce merchant payment pages.

About TANTAU

TANTAU Software Inc. is a leading provider of software and services that enables enterprises to conduct high-volume, secure, mobile ecommerce transactions while maintaining direct access to their customer. TANTAU’s blue-chip customer base includes major financial institutions and stock exchanges. The company has strategic alliances with Compaq Computer Corporation, Hewlett-Packard, NEON Systems, New Era of Networks and Baltimore Technologies. TANTAU is a member of the WAP (wireless application protocol) Forum and Radicchio, the global industry consortium that promotes security for wireless ecommerce. Headquartered in Austin, Texas, TANTAU is a global company with development and sales offices around the world, including Australia, Finland, Germany, Switzerland, the United Kingdom and the United States.

More information can be found on TANTAU’s Web site at

About Trintech

Trintech Group PLC is a leading provider of secure electronic payment infrastructure solutions for real world, Internet and wireless transactions. The company, which was founded in 1987, offers a complete range of payment software products for credit, debit, commercial and procurement card applications. Trintech’s secure product range is deployed in over 35 countries worldwide and cover the payment requirements of consumers, card issuing banks, merchant acquiring institutions, merchants, eMerchants, telcos, wireless operators, ISPs/CSPs, Portals and large corporations. Trintech’s range of scalable, open systems architecture solutions for UNIX(R) and Windows NT(TM) platforms covers consumer, merchant and financial institution requirements for all card-based payments, including e-commerce and the emerging world of mobile commerce. Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94403 (Tel: 650/227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: 353-1-207-4000). Trintech can be reached on the Web at . Investor information can be found at .

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NextCard & SkyGo

NextCard, Inc. announced its participation in the first large-scale, opt-in U.S. trial of wireless interactive marketing and m-commerce with SkyGo, a wireless interactive marketing company. NextCard will be enabling purchases during the trial as the key component of SkyGo’s wireless Web wallet. The wireless Web wallet allows participating NextCard credit cardholders to make purchases with a single click. The wireless advertising trial, slated to start this fall, will give both companies insight into consumer adoption of m-commerce.

“NextCard is committed to providing our Internet-savvy cardholders with the most innovative tools for Web shopping, and this trial will specifically gauge their likes and dislikes with regard to m-commerce,” said Dan Springer, chief marketing officer for NextCard. “SkyGo impressed us with their commitment to understanding consumer preferences for wireless offers and protecting consumer privacy.”

NextCard will gain valuable insight from the trial about selling products, acquiring customers and building loyalty programs using the wireless Web. During the four-month trial, select Boulder, Colo., area merchants and national advertisers will deliver targeted marketing messages through SkyGo to the WAP-enabled phones of more than 1,000 participants. The trial is entirely opt-in and is focused on creating the most desirable user experience. Using a PIN, consumers will be able to make secure purchases via their mobile phones with their NextCard credit cards. Billing, shipping and account information will be maintained on a secure SkyGo server.

“NextCard’s Internet-savvy cardholders buy online five times more than any other credit cardholders, making them ideal participants in the trial,” said Daren Tsui, CEO and co-founder of SkyGo. “NextCard cardholders will provide the first U.S. feedback on consumer purchasing activity with wireless phones, and enable true, closed-loop wireless marketing.”

The importance of NextCard’s participation in this trial is accentuated by industry analysts who predict that wireless devices will be used more than PCs to access the Internet by 2003. The Yankee Group has stated that digital wireless users already outnumber Internet users worldwide and expects that number to double by 2004. Internet-enabled phone users are expected to reach 48 million worldwide by 2002, and 204 million by 2005.

NextCard, Inc.

NextCard, Inc. ([www.nextcard.com][1]), the No. 1 Internet credit card, launched in 1997 and was the first company to offer instant online credit card approval, a choice of customized credit card offers, personalized PictureCard(SM) designs and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its complete GoShopping!(SM) Web site, NextCard Concierge(SM) one-click online shopping assistant, and comprehensive rewards program.

NextCard is consistently a top ten online advertiser, operates a network of over 60,000 affiliates and has exclusive card relationships with leading brands, including Amazon.com and MyPoints.com. NextCard was named the No. 1 credit card by Gomez Advisors in 2000. It was also ranked the No. 1 credit card brand Internet consumers would consider for use according to ZDNet’s 1999 BrandIQ research study. NextCard also owns a minority stake in Flooz.com, the premier online gift currency, and PayTrust, a leading service that lets consumers receive, review, pay and organize all of their bills online.

About SkyGo

SkyGo was founded in 1999 with the goal of creating a non-intrusive wireless interactive marketing network that is beneficial to consumers. The company provides the infrastructure necessary to target and deliver marketing messages and rewards to consumers and delivers this capability to media purchasing agencies, wireless service providers, Internet sites and credit card companies. The company is headquartered in San Mateo, Calif.

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

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Digital Pusan Card

Philips Semiconductors has implemented its ‘MIFARE PRO’ dual interface ICs in the ‘Digital Pusan Card’, a major multi-application smart card project in Pusan, Korea. This extends the transport application of the card to a true multi-application card system. The Pusan card, which supports both contact and contactless applications, can now be used in a broad range of transport payment applications including buses, taxis and subway systems, as well as tollgates and car parks within the existing ‘MIFARE’-based Hanaro Transportation system. The ‘Digital Pusan Card’ combines credit, debit and prepaid card functions, and it provides a digital signature. Developed by Korea Electronic Banking Technology, the ‘Digital Pusan Card’ will be launched September 1st. There will be an initial roll-out of one million dual interface cards. Users will have access to 300,000 readers, 20,000 POS terminals, and 40,000 automatic vending machines. The cards will also be rechargeable at 600 reloading machines and 500 ATM.

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Banco Popular Exits

Puerto Rico-based Banco Popular is quitting the U.S. credit card business. Direct Merchants Credit Card Bank has agreed to purchase Banco Popular’s U.S. bankcard program which consists of approximately 283,000 accounts and $180 million in receivables. Under terms of yesterday’s deal, Banco Popular will become a U.S. agent for Direct Merchants, a subsidiary of Metris Companies. Metris will take ownership of Banco Popular’s Orlando facility and retain its 130 Orlando bankcard employees. Earlier this year, Metris formed a co-branded credit card alliance with La Curacao, a California Hispanic-focused retailer, and later this summer, Metris will issue a Spanish version of its Direct Merchants Bank credit card. A Spanish version of the ‘Prodigy Internet MasterCard’, part of a co-branded agreement between Metris and Prodigy, will also be available by year-end. Metris is also adapting its enhancement services to the Hispanic market. The Banco Popular deal is expected to close by Sept. 30.

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e-VISA

VISA International has announced the formation e-VISA International to lead its role in Web-based payments. The new group will complement and enhance existing e-commerce initiatives in several VISA regions, including e-Visa in the U.S. and Virtual Visa in the European Union. It will be headed by EVP Philip Yen. Other key executives include: John Williams, formerly of Palm Computing, as SVP for Market Intelligence and Alliances; Dave Wentker, formerly a Vice President at RioPort, as VP of Commerce Applications and Chip Integration; and Benny Wong, formerly of FiNet.com, as SVP of Deployment Support. e-VISA International will be based at VISA headquarters in Foster City, CA. and consist of approximately 30 e-commerce and technology specialists. (See CF Library 9-15-99).

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E-Commerce 2Q/00

U.S. consumers spent an estimated $8.28 billion online in the second quarter of 2000, up from $7.04 billion in the first quarter. The surge was led by nearly 20% quarterly growth in the travel services sector and a 13% increase in online auctions. The research released this morning also found that consumers spent an additional estimated $15 billion by phone and in stores as a result of shopping online. This ratio of $1.74 spent offline for every dollar spent online is down from $1.95 for every dollar in Q1 and $2.34 for every dollar in Q4 1999. The survey, part of the Harris Interactive ‘e.commercePulse’ study, was conducted online with 97,633 adult online users in April, May and June.

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Hashman NextCard CEO

NextCard Inc. announced Monday that its Board of Directors plans to name John Hashman, currently President and Chief Financial Officer, as its Chief Executive Officer at its next meeting on August 10, 2000. Jeremy Lent will continue as Chairman and will assume the new role of Chief Strategy Officer. Additionally, the Company announced it is bringing in its anticipated break-even date from 2002 to late 2001.

“John has been instrumental in NextCard’s success in establishing our leadership in the Internet channel,” said Lent. “He has grown into a strong multifaceted leader and is prepared for the additional challenges as NextCard’s Chief Executive Officer.”

“I intend to remain highly involved in the strategic direction of NextCard in the role of both Chairman and Chief Strategy Officer, and I will work closely with John as we execute our exciting vision,” said Lent. “John and I have worked together for much of the past ten years, and we share the passion for fulfilling NextCard’s great potential. My decision to step down from the Chief Executive Officer role was driven by my wife’s ongoing medical condition, which will require a greater time commitment than in the past,” added Lent. “This transition is taking place at a time of increasing strength in NextCard’s business model,” continued Lent. “We continue to experience better than anticipated loan growth, strongly increasing yield and controlled expenses. As a result, the Company is bringing in its expected break-even date to late 2001, a full year earlier than the break-even date anticipated when NextCard went public last year.” The Company will be sharing further details at its quarterly earnings conference call later this week.

Additionally, Bruce Rigione, currently SVP, International Business Development, will be named Chief Financial Officer, effective August 10, 2000. Rigione, a member of NextCard’s Board of Directors, was a Managing Director and Global Head of Asset Securitization at HSBC from 1996 to 1998, and was a Managing Director and Head of Securitization for Chase Securities, a subsidiary of Chase Manhattan Bank, from 1987 to 1996.

“Jeremy has created one of the Internet’s great success stories,” said Jeff Brody, partner at Redpoint Ventures and a member of NextCard’s Board of Directors. “We commend him for his outstanding achievement and the continued tremendous momentum of NextCard. One of Jeremy’s most exceptional accomplishments has been the creation of one of the strongest senior management teams anywhere in the Internet. It is a testament to this strength that Jeremy’s successor was found from within the company.” John Hashman has served as NextCard’s Chief Financial Officer since joining the company in September 1997, and as President and CFO since March 2000. Hashman joined NextCard from Providian Financial, where he served in various senior management positions in marketing and operations from 1993 to 1997. Prior to that, he served as Providian’s Treasurer from 1989 to 1993. Hashman holds a BS from Southeast Missouri State University and an MBA from the University of San Francisco.

Jeremy Lent co-founded NextCard with his wife, Molly Lent, in June 1996 and has been Chairman of the Board and Chief Executive Officer since its inception. Between 1991 and 1995, Lent served as Chief Financial Officer of Providian Financial. Lent received a BA and an MA from Cambridge University and an MBA from the University of Chicago. In October 1999, Lent was awarded the Albert Einstein Technology Medal for innovation in technology.

About NextCard

NextCard, Inc. ([www.nextcard.com][1]) is the No. 1 Internet credit card company. Launched in 1997, NextCard was the first to offer instant online credit card approval, a choice of customized credit card offers, personalized PictureCard(SM) designs and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its complete GoShopping!(SM) Web site, NextCard Concierge(SM) one-click personal shopping companion, online bill payment services, and comprehensive rewards program.

NextCard is also one of the leading direct marketers on the Internet, operates a network of more than 50,000 online affiliates, and has exclusive card relationships with leading brands, including Amazon.com and MyPoints.com. The Company also owns a minority stake in Flooz.com, the premier online gift currency and Paytrust.com, the leader in online bill payment. NextCard was named the #1 online credit card in 2000 by Gomez Advisors and ranked the No. 1 credit card that Internet consumers would consider for use (according to ZDNet’s 1999 BrandIQ study). NextBank N.A. is a wholly-owned subsidiary of NextCard, Inc.

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

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AT88RF256-13

Atmel Corporation announced the availability of the industry’s first low-density contactless tag chip supporting the ISO 14443 standard, the AT88RF256-13. This chip further expands Atmel’s range of products, technologies, and capabilities designed to address the entire market for security and smart card devices. Containing 256 bits of read/write EEPROM memory, this chip is designed for access control systems and other identification applications. It supports the full ISO 14443 A and B / Part 2 standards for contactless smart cards and tags using a carrier frequency of 13.56 MHz. Receive and transmit bit rates are 100K bits/second peak.

Due to Atmel’s ultra low power CMOS/EEPROM technology, the read range is well in excess of the 10 cm typical for parts using this protocol. Among the programmable protocol options are a variable ID length, slower communications rate and Miller data encoding. Security features include password-protected access, data locking, anti-collision and unique serial numbers for every chip. In addition to the contactless interface technology described above, Atmel develops and manufactures security chips using high-speed, public key engines; DES accelerators; fast, low-cost, hardware authentication; secure micro processor transaction processing by any of four popular MPU architectures; and EEPROM and Flash memory densities from 32 bytes through 128K bytes; RFID interfaces supporting multiple standards at both 125 kHz and 13.56 MHz and ISO 7816 contact smart card interfaces.

Among the companies making use of these core technologies from Atmel are Motorola and IBM. Motorola’s Worldwide Smart Card Division (WSSD) uses Atmel silicon to power its two latest smart card offerings. The first of these two offerings supports ISO 14443B and contains larger NVM plus triple DES encryption. The second provides significantly more memory than competing products and includes multiple encryption engines and a wide array of physical and logical security measures. The high security of these cards makes them ideal for transportation and financial applications among many others. Atmel and IBM have collaborated on two different security chips that provide innovative security solutions for IBM’s commercial personal computers. Using Atmel’s RFID technology, the AssetID(TM) technology from IBM permits corporate organizations to track physical assets, such as laptop computers, and to limit operation of stolen equipment. Using an Atmel cryptographic processing chip, IBM’s recently announced PC300PL personal computer provides ultra secure storage for sensitive public keys used to support secure email and secure web access.

“We are extremely excited about the technology advancements we have made in our portfolio over the last few months. We are well positioned to provide leading edge solutions to the security and smart card markets and are actively partnering with world-class solution providers,” said Tony Giraudo, vice-president and general manager of security and RF wireless products at Atmel Corporation. “Secure integrated circuits for the entire range of contact and contactless smart cards are a strategic focus for Atmel, as can be seen by our steady pace of engineering innovations.” Atmel also offers a complete line of programmable security ICs using both Flash and ROM for program storage. Three different 8-bit microprocessors are supported: the industry standard 8051 and 6805 cores, and Atmel’s own synthesizable high performance, RISC-based AVR(R) core. With a combination of memory sizes and cryptographic accelerators, there are standard products for almost every market.

At the highest end, Atmel’s security products include an ARM7TDMI(TM) based chip which has a wide array of I/O interfaces, including not only ISO 7816 but also USB, SMBus and SPI for dongle and embedded applications. Designed for high-speed cryptographic computations, it includes both asymmetric (1024 bit RSA operation in less than 39ms) and symmetric (DES at greater than 12 Mbyte/sec) hardware accelerators and a high quality random number generator. All internal memories and busses are encrypted for further security. Future product offerings, including a synthesizeable, secured MoCORE(TM) CPU (licensed from Motorola), significantly increased memory densities, faster encryption processors, and additional I/O interfaces, will bring the performance of these devices to an even higher level.

All of these products rely on Atmel’s experience in the highly secure product market. Such products include an array of features designed to make it very difficult for a hacker to obtain sensitive information from within the chip – whether that hacker observes the operation of the chip from the outside or probes the chip from the inside using highly specialized equipment.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California with principal manufacturing facilities in Colorado Springs, Colorado; Irving, Texas; Grenoble, Nantes and Rousset, France; and Heilbronn, Germany. Atmel designs, manufactures and markets on a worldwide basis advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using advanced CMOS, BiCMOS, bipolar and SiGe process technologies. Further information can be retrieved from Atmel’s web site at .

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Optus & TelPay Partner

Web development and Internet billing specialists Optus Corporation announced a partnership with bill payment service provider TelPay. The deal will let consumers immediately “click and pay” their on-line bill from any biller’s website. The bill payment transaction will trigger an automatic electronic debit from the customer’s bank account at any financial institution, without the need for the consumer to leave their biller’s website or visit a bank website.

“This agreement gives Optus the most extensive suite of on-line bill payment options in the Canadian market, so billers can offer customers maximum choice in how they pay their on-line bills,” said Jon Hantho, President and COO of Optus.

As a technology partner with Canada’s two key consolidators, e-route and EPOST, Optus creates and installs electronic billing systems and facilitates bill payment for companies whose customers pay bills through EPOST or through their bank website. As a partner with TelPay, Optus can process payments for customers who choose to pay on-line bills through individual biller web sites.

TelPay is Canada’s largest non-bank electronic payment processor, processing seven million payment transactions annually. Optus is Canada’s largest non-bank remittance processor, handling high-volume sales draft and remittance processing for some of Canada’s largest billers. The two organizations have a long and strong nine-year relationship, with Optus currently processing more than 250,000 TelPay telephone and Internet transactions annually.

“We at Optus have been impressed by the inroads TelPay has made over the past year, and we are thrilled to partner with them to offer this unprecedented and formidable on-line bill payment solution for billers,” said Hantho. “It means that for the first time ever, customers who pay bills through a biller’s website will have the same convenient payment options as customers who pay from their bank site or through a consolidator.”

According to Hantho, many billers — especially marketing-oriented organizations such as retailers and credit card providers – like the idea of posting customer bills for payment on their own website, because they see the bills as ‘sticky’ content. However, the drawback to this approach has typically been the lack of a viable payment option.

“Optus and TelPay offer a payment solution that makes the ‘biller-direct’ model for electronic bill presentment and payment far more attractive and viable for billers,” said Hantho. “Our deal with TelPay also reinforces Optus’ uniqueness as the only service provider with dedicated expertise spanning the entire lifecycle of a bill – from bill design, to bill marketing, to programming and production for paper-bills, to web development and presentment for on-line bills, to bill payment.”

“By partnering with OPTUS, we have given billers the option to retain control of their customer relationships,” said Bill Loewen, President, TelPay. “An organization’s most valuable asset is its customers. Until now billers have not had a complete ‘biller direct’ option. OPTUS offers an excellent solution for this model, and when combined with the simplicity of the ‘Pay By TelPay’ process you have a natural EBPP solution.”

About Optus

As one of Canada’s premier customer communication and relationship management service providers, Optus Corporation helps companies acquire, maintain, and maximize the lifetime value of their customer relationships by incorporating the power of personalization into their on-line and off-line strategies. As a leading web-developer, systems integrator and application service provider, Optus develops and deploys some of Canada’s most complex and critical on-line transaction processing and e-commerce systems. Optus is the Business and Technology Services unit of MDC Corp., and is part of MDC’s Secure Transaction Products and Services division. More information is available on the Optus website at [www.optuscorp.com][1]. More information on MDC is available on its website at [www.mdccorp.com][2].

About TelPay

TelPay Bill Payment Service, a division of CTI ComTel Inc., was originally part of Comcheq Services Ltd. Founded in 1985 TelPay provided the first electronic bill payment service for consumers. TelPay now offers electronic bill payment and automated banking services to consumers and businesses at or through financial institutions across Canada. Processing over 7 million transactions annually to over 1,200 billers, TelPay is the largest independent payment processor in Canada. Visit the TelPay website at [www.telpay.ca][3]

[1]: http://www.optuscorp.com/
[2]: http://www.mdccorp.com/
[3]: http://www.telpay.ca/

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OrderTrust Hires Shapiro

OrderTrust, Inc., the leading provider of outsourced e-commerce infrastructure services, announced the appointment of Peter Shapiro to vice president of corporate strategy. Shapiro brings to OrderTrust more than 25 years experience in strategic marketing and expertise in defining and executing on Internet trends and strategies as a Principal at Arthur D. Little. Reporting directly to OrderTrust CEO Jim Daniell, Shapiro’s responsibilities will include analyzing and assessing emerging e-commerce market opportunities and developing the corporate strategic direction to address the future needs of the company and its customers. He will focus initially on opportunities in areas such as mobile commerce (m-commerce) and television commerce (t-commerce).

“Peter will add tremendous strategic value to an already strong management team here at OrderTrust,” said Daniell. “As we look to expand our services to support new channels, such as mobile and television commerce, we will be able to leverage Peter’s wealth of experience to help position OrderTrust as a leading provider of outsourced e-commerce services in these areas.” He added, “As the e-business market continues to evolve, OrderTrust is constantly scoping out how we can enhance our customers’ Internet expansion initiatives and Peter brings additional expertise to keep us in line with our corporate goals.” Prior to joining OrderTrust, Shapiro served as a Principal in Arthur D. Little’s Communications practice. While at Arthur D. Little, he specialized in marketing strategy, market assessments and industry analyses for his worldwide clientele, which consisted of telecommunications and cable TV services operators, Internet commerce services firms, equipment suppliers, financiers, attorneys and governments.

“I want to help shape the way companies develop their Internet businesses,” said Shapiro. “What drew me to OrderTrust was that it is already on the leading edge of e-business, with its powerful infrastructure enabling reliable and cost-effective transactions for e-commerce merchants and their trading partners. My research has led me to believe the winners in the next phase of e-commerce will be businesses like OrderTrust that focus on the future ways in which people will buy products and services. OrderTrust was a natural choice for me because it provides a platform for innovative new applications as e-commerce transactions extend from today’s PC-based services to new channels such as interactive TV and mobile terminals.”

Shapiro has been published in a variety of business trade and academic journals including the IEEE’s Transactions on Communications, and Encyclopedia Britannica. He has also chaired and presented at a number of industry events including the National Communications Forum, the New York Society of Securities Analysts, the Cable and Telecommunications Association for Marketing (CTAM) and TeleStrategies conferences.

Shapiro earned his Ph.D. in Communications Research from Stanford University and his Bachelor of Arts degree in political science from the University of British Columbia. He also was appointed as the first Research Fellow at Harvard University’s program on Information Resources Policy.

About OrderTrust, Inc.

Established in 1995, OrderTrust, Inc. delivers industry-leading, outsourced e-commerce infrastructure services to retailers, catalogers, suppliers and loyalty program providers. OrderTrust’s direct commerce services include order management, product sourcing for electronic marketplaces and on- and off-line consumer loyalty tracking.

With connections to over 850 commerce partners, OrderTrust’s commerce network offers a fully redundant and highly scalable communications extranet that provides seamless integration of merchant order-capture systems with real-time credit card authorization and inventory checking; flexible routing of fulfillment requests to multiple suppliers; and data exchange management so order information can be sent and received using native formats and protocols. OrderTrust clients include 1-800-FLOWERS, SkyMall, Inc., Blockbuster.com, S&H greenpoints, Transmedia/Dining a la Card, Publishers Clearing House, ShopExpert, Iconomy and VerticalNet, Inc. Visit [http://www.ordertrust.net][1] for more information.

[1]: http://www.ordertrust.net/

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Strong Quarter

Most payment card issuers have reported a strong second quarter and American Express is clearly included. Yesterday AmEx reported record quarterly netincome of $740 million compared to $646 million for 2Q/99. AmEx largest business unit, Travel Related Services, made up $472 million of the total net income. TRS income increased 17% over the past twelve months driven by higher card volume and revolving balances. AmEx says the higher volume was driven by its rewards programs and expanded merchant coverage. However the net interest yield on its payment card business has declined 20% over the past year. AmEx says this is due to a higher percentage of loan balances on introductory rates and other lower-rate products. The new AmEx ‘Blue’ card has attracted nearly two million cardholders since last September and carries a 0% six-month intro rate. For complete details on American Express current and historical statistics visit CardData ([www.carddata.com][1]).

American Express U.S. Card Portfolio Snapshot
2Q/00 1Q/00 4Q/99 2Q/99 Ann Chng
Volume $55.8b $50.6b $51.7b $46.0b +21.5%
Loans $25.9 $24.2b $23.4b $18.3b +41.8%
Cards 32.5m 31.4m 29.9m 28.7m +13.1%
Delinq* 2.4% 2.6% 2.6% 2.7% -11.0%
Losses 4.4% 4.6% 4.5% 5.3% -17.0%
Yield** 7.4% 7.8% 7.7% 9.3% -20.0%

* 30+ days past due; ** net interest yield
Source: CardData (www.carddata.com

)

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

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Gemplus & GeldKarte

Gemplus, together with Philips Semiconductors, has become the first card manufacturer to be certified for the new, type 1 GeldKarte (the German e-purse system), which will be available from October 2000. The Zentraler Kreditausschuss (ZKA – Central Credit Committee) has certified the hardware/software combination that consists of the operating system for the new GeldKarte, developed by Gemplus, and the highly secure and efficient Philips Semiconductors chip card IC P8WE6017. This solution is now officially approved for use on Germany’s banking chip cards.

![][1] With the new operating system the GeldKarte type 1 is ready for the introduction of the Euro and the increasing internationalisation of payment methods. A cross-border pilot project called PACE (Purse Application for Crossborder Use in Euro) has already started. Future security of the GeldKarte payment system has also been improved within the scope of the terminal software update and the adaptation of the background systems. One example of this is the additional authenticity check when a payment is made.

The GeldKarte type 1 operating system – developed by ODS prior to its take-over by Gemplus – is based on the revised interface specification for the 4.x version ZKA chip card. The approval was based on the positive acceptance test on functionality and the security expertise on hardware and software developed in close co-operation between Gemplus and Philips Semiconductors.

About Gemplus

Gemplus ([www.gemplus.com][2] ) is the world’s number one provider of smart card based solutions for security, wireless and e-business applications. Offering consultancy services, design, software, hardware, personalization and full implementation, Gemplus works with its customers around the world to deliver comprehensive, integrated and tailor-made smart card based systems. The Group’s customers use Gemplus memory and microprocessor smart cards, smart contactless cards, electronic tags, smart objects and magnetic stripe cards to simplify and secure a wide range of applications. From Web based and mobile commerce to financial transactions, loyalty, transportation, education healthcare, identity, pay TV and physical and logical access control, Gemplus provides intelligent end-to-end solutions that bring security, convenience and ease-of-use to millions of people worldwide.

Founded in 1988, Gemplus had sales of over 767 millions of Euro ($US 817 millions) in 1999, and employs almost 6,300 people in 17 manufacturing facilities, 7 R&D centers and 44 sales and marketing offices located in more than 37 countries.

[1]: /graphic/phillips/philips.gif
[2]: http://www.gemplus.com/

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