NDC SafeDebit

NYCE Corporation announced that National Data Corporation plans to offer NDC eCommerce customers SafeDebit, the first PIN-secured debit option for Internet payments that does not require special hardware for consumers. Developed by NYCE Corporation, SafeDebit relies on a PIN-secured debit card that fits into the CD-ROM drive of a PC and leverages the advantages and features of the existing ATM and POS infrastructure.

“Recognizing NDC’s tremendous leadership and strength in the electronic payments industry, we are pleased that NDC eCommerce will be offering SafeDebit to their merchants as a secure PIN-based option for Internet payments,” said Paul Tomasofsky, Vice President, NYCE Corporation.

“As a pioneer in the card processing industry, NDC eCommerce is pleased to be involved in the early introduction of SafeDebit. We believe that SafeDebit offers a win-win opportunity for the retailer and the consumer for making purchases over the Internet,” said Paul R. Garcia, CEO of NDC eCommerce.

National Data Corporation (NYSE: NDC) is a leading provider of electronic commerce solutions and health information services that add value to customers’ operations.

Headquartered in Woodcliff Lake, NJ, NYCE Corporation is one of the largest electronic payments companies in the U.S. The NYCE Network provides financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale and electronics benefits transfer transactions. Currently, the Network has 2,400 financial institution participants and services more than 45 million cardholders through 35,500 NYCE-branded ATMs and 215,000 point-of-sale retailer locations. The company processes nearly 77 million transactions each month. In addition, NYCE Corporation provides financial institutions with electronic funds transfer processing services that support ATM deployment and debit card issuance solutions. A frontrunner in the electronic payments arena, NYCE innovated SafeDebit, the industry’s first PIN-secured debit payment solution for Internet shopping that requires no special hardware for consumers. NYCE’s web site address is [www.NYCE.net][1].

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

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Creditrust Future

Creditrust Corporation announced financial results for the first quarter ending March 31, 2000. First quarter earnings per fully diluted share were $0.25, and collections for the first quarter were $25.5 million.

Earnings Overview

For the quarter ended March 31, 2000, net earnings were $2.6 million, or $.25 per fully diluted share, compared to $2.4 million, or $.28 per fully diluted share for same quarter in 1999. Earnings from operations for the first quarter of 2000 increased to $7.0 million from $4.4 million in 1999.

Collections

Collections on managed receivables reached $25.5 million for the quarter ending March 31, 2000 over $13.4 million for the same quarter a year ago. Creditrust made no purchases of finance receivables in the first quarter of 2000. As of March 31, 2000, the Company had over 2.0 million accounts under management with a face value of $4.9 billion.

Operating Results

Revenues for the quarter ending March 31, 2000 increased 79% to $21.5 million, from $12.0 million for the first quarter of 1999. Operating expenses increased 91% from $7.6 million to $14.5 million in the first quarter of 2000 over 1999 reflecting the increase in operating costs associated with the growth in revenue. Income from operations increased 59% to $7.0 million for the first quarter of 2000 from $4.4 million for the same period in 1999.

For the quarter ending March 31, 2000, earnings before interest expense, income taxes, depreciation and amortization (EBITDA) rose to $8.1 million from $4.7 million for the same quarter last year.

Cash collections and operating expenses are more fully detailed in the Portfolio-Based Data Table included as supplemental information herein. While the Portfolio-Based Data Table does not purport to present the Company’s operating results in accordance with GAAP, the Company believes the presentation provides additional information useful in assessing the Company’s performance.

The Company’s policy is to assess estimates against actual collections. For the first quarter of 2000, the Company reevaluated some of its remaining future collection estimates and revised them to reduce income on finance receivables by $1.4 million after tax. The resulting effect was to amortize more collections to return of capital and less to income.

Financing and Liquidity

The Company has not experienced any losses, but obligations to retire debt on its revolving line of credit, coupled with the contractual servicing fees on its Series 1998-2, warehouse, and Series 1999-1 credit facilities which are lower than the Company’s total cost of operations, and the Company’s inability to raise additional financing or sell significant assets has resulted in the Company’s inability to meet all of its debt service obligations. As a result, the Company was unable to meet its debt service payments to Sunrock Capital and a default has been declared. The default would enable the lender to accelerate the loan. No acceleration has been declared. In addition, this caused a cross default under the Series 1999-2 facility and the Series 1998-1 facility, which could also be accelerated. The servicing on Series 1998-2, 1999-1 and the warehouse has been terminated which directly effects the Companies resources to pay operating costs and debt service.

The Company’s default of the revolving line of credit and other defaults and occurrences described above may raise doubt about the Company’s ability to continue as a going concern. The Company is currently working with all of its lenders and investors to obtain the necessary waivers under the terms of the agreements and is negotiating with them to stabilize its lender relationships by establishing certain operating plans. The Company also retained the services of an outside consulting firm to assist it in accomplishing management’s objectives.

The Company has also evaluated the disposal of certain assets, raising new capital for future operations, and reducing operating costs by certain staff and other cost reductions. However, there can be no assurance that the Company will be successful in achieving its objectives. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Company Description

Founded in 1991, Creditrust Corporation acquires, manages and collects delinquent consumer receivables utilizing an information-driven strategy. The Company uses proprietary technology to acquire receivables primarily consisting of charged-off Visa(R), MasterCard(R), and private label credit card accounts issued by major banks and merchants.

For more details on Creditrust’s 1Q/00 results visit CardData ([www.carddata.com][1]).

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

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China Gets Iced

Hypercom announced early this morning that People’s Bank of China has certified Hypercom’s ‘ePic ICE 5000’ and ‘T77’ with ‘S7SC’ card payment terminals on China banking IC card POS specification. The PBOC announced the China Banking IC card specification in Dec. 1997 and the China Banking IC card POS specification in June 1998, in order to standardize and streamline IC card development at all banks throughout the country. As a result, all IC cards and POS products sold to China’s banking industry now require certification by the PBOC Certification Center. Additionally, the PBOC will conduct nationwide IC card pilots starting in Shanghai, and then Beijing and Chongshan. The first pilot is expected to begin within the next two months, and will involve an estimated 18 million people.

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Gemplus OnDisplay

OnDisplay Inc. announced it has inked a strategic alliance with Gemplus, the world’s leading provider of smart card-based solutions. This global wireless partnership will enable businesses to exchange, aggregate and integrate information and transactions over the Internet from any wireless device, including cellular telephones, personal digital assistants, and pagers.

Under the terms of the agreement, Gemplus is embedding CenterStage(R) eContent in its GemXPlore Suite, a platform for the development, deployment, operation and fleet management of Mobile Value Added Services. This strategy will enable telecommunications providers to design and operate new wireless services leveraging any type of content and accommodating all current and emerging wireless standards.

The partnership is the latest in a series of moves by OnDisplay to extend its technology expertise and proven experience powering e-business portals and e-marketplaces to meet the needs of emerging wireless markets. OnDisplay’s current implementations support many of the same categories of services increasingly demanded by wireless service providers. These web portals, marketplaces and wireless service providers can all leverage OnDisplay’s powerful CenterStage suite to enable seamless data and document transformation and exchange via wireless devices. The core strengths of the CenterStage suite — secure information exchange, aggregation and integration — apply to any situation where an organization seeks to forge lasting relationships with trading partners — regardless of the vehicle used to access the Internet.

“Gemplus’ suite of products allow telecommunications companies to increase the depth of the services they offer to their subscribers, by accessing the Internet through Gemplus’ SIMToolkit application and WAP. Today, we have 200 engineers to assist our customers in rapidly deploying our solutions throughout Europe,” said Thierry Gallo, managing director for Gemplus Services Europe. “With the combined OnDisplay-Gemplus solution, a telecommunications provider can design and put in production a new service for a subscriber in any standard, including WML, STKML, SML, in as little as a few hours, without any constraint on the content or its source.”

“The industry as a whole now recognizes that when it comes to wireless services, European firms are leading the charge,” said Venkat Mohan, president and COO of OnDisplay. “Our partnership with Gemplus will enable worldwide deployment of next-generation wireless services in truly astonishing timeframes. By this time next year, B2B applications deployed over wireless devices will be as commonplace as the browser is on desktops today.”

About Gemplus

Gemplus S.A. is the world’s leading provider of smart card-based solutions. Gemplus sells magnetic stripe cards, memory and microprocessor-based smart cards, smart contactless cards, electronic tags and smart objects. Gemplus designs and markets software, development tools and readers. The company also provides consulting, training and personalization services to deliver the industry’s most comprehensive and flexible card-based solutions to its developers, distributors, partners, and customers. With sales of over $US 817 million in 1999, Gemplus employs 6,000 people in sixteen manufacturing facilities, seven R&D centers and forty-one sales and marketing offices located in more than thirty countries around the world. Founded in 1988, Gemplus has successfully implemented portable and secure smart card-based solutions to simplify applications such as public and wireless communications, financial transactions, loyalty, transportation, education, healthcare, identity, physical access control, pay TV, electronic commerce, Internet security, logical access control and information technology.

About OnDisplay

OnDisplay is a leading provider of e-business infrastructure software applications for powering e-business portals and e-marketplaces. OnDisplay’s CenterStage(R) product suite enables customers to increase their online selling effectiveness and extend their trading networks to suppliers and vertical marketplaces. OnDisplay has provided critical e-business infrastructure software and services to such e-business pioneers as W.W. Grainger, Alta Vista’s Shopping.com, Intelisys, Travelocity.com, OrderTrust, TPN Register, MicroWarehouse, FASTXchange.com, PurchasePro.com, Harbinger.net, Aspect Development and more. The company has strategic relationships with leading industry players including Ariba, Commerce One, Harbinger, IBM, Intelisys, Manugistics, Microsoft, Sterling Commerce and Vignette. Founded in 1996, OnDisplay is a public company traded on the Nasdaq in the United States under the symbol ONDS. Headquartered in San Ramon, California, OnDisplay can be reached at 800-508-8800 and at [http://www.ondisplay.com][1].

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

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Skywards Card

Emirates Airlines and SriLankan Airlines this morning launched a worldwide frequent flyer card program. The new ‘Skywards’ card goes beyond the basic miles-for-miles airline programs. For example, members in the elite tiers are admitted into the Skywards business ‘Alumnus’ club and have access to airport lounges even if flying the economy class. The new card program comes in three levels: ‘Skywards’, ‘Skywards Silver’ and ‘Skywards Gold’. As it is one program for both airlines, miles flown on either Emirates or SriLankan will count towards the tier level. Miles can also be earned on partner airlines: Continental Airlines, United Airlines, British Airways and South African Airways. ‘Skywards’ miles can also be earned with each usage of the ‘Skywards Citibank’ co-branded credit card. Hotel partners include: Hilton, Marriott and Starwood.

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E-Link NET

National Electronic Technologies, a software developer and manufacturer of public Internet access kiosk solutions announced they have entered into an agreement with E-Link Resources, Inc., North America’s leading distributor of kiosks and automated banking terminal solutions manufactured by Northrop Grumman-Canada Ltd., a leading manufacturer of ATM’s, airline ticketing kiosks and check in terminals and data communications equipment to license NET’s public Internet access software and other future software applications of NET to kiosks and automated banking machines manufactured by Northrop Grumman- Canada Ltd.

In this agreement, NET will license technology to E-Link to deploy public Internet access solutions. Solutions from NET will include web based Internet, email, e-commerce, virtual software applications, real time credit card processing and advertising sales and monitoring over all of Northrop Grumman- Canada’s kiosk and ATM products sold by E-Link. NET has received an initial licensing fee and will also receive a share in all back end revenues including advertising generated by the ATM products installed in locations across North America. NET also receives a technology licensing fee for each unit that is deployed with the initial payment already having been received on the initial order of 100 units. In this agreement E-Link will also become a master distributor of Global VideoNET public access Internet terminals.

“This is just the beginning of National Electronic Technologies’ plan to partner with leading companies worldwide to license our public Internet access software to world class companies such as E-Link and Northrop Grumman-Canada Ltd. whose customers want web based enhancements to their products,” said Al Chiasson, NET’s Chairman/CEO. “We expect to continue to license our business model and software solutions for public Internet access to enhance web based products to organizations in various industries.”

E-Link, as the master distribution partner of Northrop Grumman-Canada in ATM and kiosk solutions has entered into agreement for the production schedule of the first 2500 kiosks and web enabled ATM units being shipped into the US market. The first order of 2500 web-enabled units has been designed to be the seed of the new web based public Internet access ATM market developed by E- Link. This seeding of the market with this multifunctional ATM product will introduce E-Link as one of the leading companies in financial services sector in North America.

“Having the opportunity to offer the world’s leading public Internet access services from NET, combined with the leading web based ATM and kiosk hardware from Northrop Grumman-Canada Ltd. will quickly see our companies leading the way in ATM Financial and communication services in North America with the unveiling of this new line of products,” claims Arnold Milan, President and Founder of E-Link.

NET’s public Internet access solutions along with the technologies and services of NET’s strategic alliances will enhance E-Link’s and Northrop Grumman kiosks and ATM products. The ability for NET to drive digital advertising signals and e-commerce solutions through to all of these devices is part of the NET per square inch marketing philosophy to maintain a presence on all public Internet access devices with content and ancillary revenue services.

“NET has taken the concept of digital per square inch marketing and made it a reality by building out our software infrastructure and extending our services to the latest technology devices,” said Brad MacPherson, President at NET. “While others are in the discussion stages of their digital web enabled strategies, we have moved squarely to a leadership position with technology development and global relationships to address the public Internet access, e- commerce and promotional needs of each component of digital public Internet access distribution.”

NET, E-Link and Northrop Grumman-Canada Ltd. expect there will continue to be a major expansion of new public Internet access web enabled ATM’s and kiosks worldwide. The strategic alliance of these companies is positioned to lead the industry as the pioneers of this web-enabled solution. E-Link is presently receiving high demand for NET’s Global VideoNET public Internet access solution.

About E-Link Resources Inc.

E-Link Resources Inc. is the master distributor of Northrop Grumman- Canada Ltd, for NIA kiosks and ABM’s as well as a master distributor of Global VideoNET solutions for NET. E-Link has head office located in Toronto Ontario Canada and distribution channels and partners throughout North America representing over 7000 direct sales agents across Canada and the United States. E-Link is focused on the distribution and development of web based kiosk products, data communications, ABM financial solutions, vault cashing services and ABM digital switch related services.

About Northrop Grumman-Canada Ltd.

([http://www.ngcan.com][1]) Northrop Grumman-Canada, Ltd., a wholly owned subsidiary of Northrop Grumman Corporation, has over 25 years of experience delivering networking solutions in over 80 countries worldwide. Other areas of expertise include Network Monitoring, end to end Connectivity Solutions, and Self Service solutions for both the Air Travel and non Air Travel Markets. Revenues for the Northrop Grumman Corporation in 1999 were $9.2 billion USD. More information about Northrop Grumman-Canada, Ltd. can be found on the Internet at [http://www.ngcan.com][2]

About National Electronic Technologies Corp.

([http://www.globalvideonet.com][3]) National Electronic Technologies (NATV.U) is headquartered in Rothesay, New Brunswick, Canada, with marketing offices in Toronto and Louisville, Ky. NET is the leading provider and software developer of Global VideoNET(TM) public Internet access terminals and other public access solutions. NET has deployed terminals throughout Canada and the United States in truck stops, hotels, airports, shopping malls, and other locations. At this time NET is the only licensed kiosk partner of America Online. NET shares trade on the Canadian Dealing Network under the symbol: NATV.U and currently has 23,519,753 common shares issued and outstanding.

[1]: http://www.ngcan.com/
[2]: http://www.ngcan.com/
[3]: http://www.globalvideonet.com/

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In Cahoots

NY-based eCommony and Cahoots Inc. announced Tuesday they have signed an agreement to provide access to eCommony’s ‘PayToCard Network’ in a future version of Cahoots. The Cahoots ‘Live Web-Wide Communication Network’ provides consumers and web site operators a comprehensive offering of voice communication, text conversation and instant messaging capabilities, available under one intuitive user interface. The ‘PayToCard Network’ offers every website, host, portal and ISP a complete drop-in ‘P2P’ payment infrastructure. Individuals can electronically accept secure and private credit card payments at the website of their choice, without registering at third party websites. The user does not even have to register as a ‘PayToCard’ member.

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NYC Conference

Robinson-Humphrey’s Internet Payment & Transaction Processing Conference is set for Thursday, June 1 at the Grand Hyatt Hotel in New York City.

The conference, featuring presentations from more than 35 public and private companies that enable the global exchange of money, is divided into two tracks:

* One for Internet Payment companies that facilitate the transfer of funds by providing a combination of software and outsourced services to e-merchants, traditional brick & mortar companies, and financial institutions; and

* One for Transaction Processing companies that design, build and maintain client/server networks that support electronic payments and distributed information processing.

Presenting companies include: Actrade International, Ltd., Bottomline Technologies, Inc., Cash Technologies, Inc., Cavion Technologies, Inc., CheckFree Holdings Corporation, Corillian Corporation, CyberCash, Inc., CyberSource Corporation, Derivion Corporation, Digital Insight Corporation, DotsConnect, eCash Technologies, Inc., esalestax.com, inc., First Ecom.Com, Inc., Flooz.com, Inc., Fundtech Limited, HyperCom Corporation, Intuit, Inc., Livecapital.com, Inc., NCR Corporation, Netzee, Inc., NextCard, Inc., Nova Corporation, Oasis Technologies, Inc., PaymentPlanet.com, Payroll Online Corporation, PaySys International, Inc., Paytru$t, Inc., RemitNet, Inc., S1 Corporation, Total System Services, Inc., The InterCept Group, Inc., Trintech Group, PLC and Troy Group, Inc.

“In our opinion, the companies in this sector have performed well short term and have the potential to generate significant growth as electronic payments continue to increase in both relative and absolute terms,” said Wayne Johnson, senior vice president and e-commerce/electronic payments analyst with Robinson-Humphrey. “Our conference will provide an up-close perspective on this industry’s leaders for a full spectrum of attendees including individual and institutional investors, venture capital firms and other corporate management.”

Founded in 1894, Atlanta-based Robinson-Humphrey is a wholly owned subsidiary of Salomon Smith Barney, Inc., a member of Citigroup. Maintaining a distinctive identity as a leader in research and investment banking services for growth companies in selected industries, the firm is internationally recognized for equity research, trading and has a leading presence in middle markets equity underwriting as well as mergers and acquisitions. Robinson- Humphrey maintains offices in Atlanta, New York and Boston.

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MemberWorks Promotion

MemberWorks Incorporated (Nasdaq: MBRS), a leading provider of consumer and membership services through affinity marketing and on-line channels, today announced the promotion of Matt Donaldson, age 43, from Vice President of Marketing to Senior Vice President of Marketing, effective immediately. Going forward, Mr. Donaldson will be reporting directly to Gary Johnson, President and CEO of MemberWorks.

Adding to his current responsibilities for account management, telemarketing, direct mail and business planning, Donaldson will assume responsibility for membership services, product management and creative services. Donaldson brings over 20 years of experience to his new role. Prior to joining MemberWorks in 1999, he served in several high-level direct marketing and operational positions of increasing responsibility with MCI Telecommunications, Consumer Health Services, and Merck Medco Managed Care LLC. Mr. Donaldson is a graduate of Washington and Lee University.

Gary Johnson stated, “The promotion of Matt Donaldson to Senior Vice President of Marketing demonstrates our depth of experienced leadership. With his extensive marketing expertise, we are confident that this natural progression of Matt’s role will enable our company to continue our outstanding growth and market leadership ”

In this new role, Donaldson will replace the departing Wayne Gattinella, who held the position of President of North American Operations and is now leaving MemberWorks to pursue a opportunity with a West Coast based Internet startup.

Commenting on Gattinella’s departure, Johnson continued, “Wayne has been instrumental in our accomplishments to date. We are grateful for his many contributions to MemberWorks during his time with the company.”

About MemberWorks

Headquartered in Stamford, Conn., MemberWorks is a leader in bringing value to consumers by designing innovative programs that offer services and discounts on everyday needs in healthcare, personal finance, insurance, travel, entertainment, computing, fashion, and personal security. As of March 31, 2000, 6.2 million members are enrolled in MemberWorks programs, gaining convenient access to thousands of service providers and vendors. MemberWorks is the trusted marketing partner of leading consumer-driven organizations, and offers them effective tools to enhance their market presence, to strengthen customer affinity, and to generate additional revenue.

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B2C Gateway

First Data and uc.com Tuesday announced an alliance to offer global payment gateway services to FDC clients and their merchants worldwide. SecureTrading Ltd., a uc.com subsidiary and one of the UKs Internet payment processors, will be a preferred provider. The gateway services already are available, in conjunction with uc.com, in the UK, Ireland, Switzerland, Germany, Spain, and Hong Kong. The SecureTrading gateway supports 169 currencies and allows online merchants to accept and process credit card transactions and cash payments over the Internet. Cash payments are available through First Data’s approximately 88,000 Western Union retail agent locations in 180 countries and territories. FDC’s alliance with SecureTrading provides the international complement to First Data’s Internet payment gateway in the US. known as ‘SurePay’, which supports credit, check and cash payments.

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eIssuer Momentum

Trintech Group reported this morning that first quarter revenues grew 47%. The firm also announced a partnership to jointly develop the next generation of e-payment solutions with enhanced security for mobile commerce. Revenues for the first quarter ending Apr. 30 were $8.8 million compared with $6.0 million for same quarter one year ago. The growth was driven by strong demand for Trintech’s secure e-commerce payment infrastructure solutions. As a result, first quarter software license revenues increased 177%. During the first quarter Korea’s largest VISA card issuer, KEBCS, announced it is rolling out Trintech’s virtual credit card technology to its 5.4 million customers in conjunction with its 820,000 merchant locations across the country. (See CF Library 3/22/00). This morning, Trintech announced a partnership with Baltimore Technologies to ensure that consumers, telcos, merchants and banks can use open networks for secure mobile commerce by combining Baltimore’s e-security products with Trintech’s multi-currency, multi-platform e-payment technology. As part of the partnership, Trintech will integrate ‘Baltimore Telepathy’ wireless e-security products into Trintech’s ‘PayWare eIssuer’ virtual credit card solution to enable secure, authenticated wireless payments. For complete details on Trintech’s 1Q/00 results visit CardData ([carddata.com][1]).

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

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Cyber Checks

TeleCheck Services unveiled this morning a real-time, online service that enables consumers to pay by check over the Internet. With the TeleCheck ‘Internet Check Acceptance’ service, shoppers, after placing an order on a merchant’s Web site, complete an online payment form with information from his/her check. The check data is encrypted and transmitted to TeleCheck where the payment information is matched against the company’s verification databases. TeleCheck then relays an approval code to the merchant. The company said this morning the service is targeted at the 70 million US consumers who do not have a general purpose credit card.

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