Select ATM

PULSE EFT Association and Texas credit unions Thursday jointly announced the formation of a selective surcharge alliance available to all PULSE members. The new alliance, ‘Select ATM’, will allow any financial institution member the option to offer surcharge-free access to their cardholders at participating ATMs. Financial institutions participating in the PULSE-managed ‘Select ATM’ will avoid the burden of negotiating and executing individual bilateral surcharging agreements. ‘Select ATM’ participants retain the option to surcharge transactions performed by cardholders of non-alliance member financial institutions. By permitting members to join together and waive fees for each others’ customers, PULSE is offering access to this new service to all its members on a non-discriminatory basis, which could mean additional ATM locations for customers to access funds surcharge-free. The program is set to be operational Oct. 1.


CyberCash Poised For Growth

In response to investor inquiries regarding a decline in the Company’s stock price over the past several days, CyberCash, Inc. said Thursday that it knew of no reason related to its business operations that would warrant the decline. According to the Company, it continues to make good progress with the business strategy it established earlier this year, and it sees no reason to depart from it. Bill Melton, chairman and CEO, reiterated his belief that CyberCash has built a solid foundation, supported by strong partnerships and strategic acquisitions, that will allow the Company to capitalize on the growing e-commerce market.

“CyberCash’s payment business remains strong,” Melton said. “At the beginning of the year, we stated that our primary 1999 goal for this business was to increase our merchant base. We have made excellent progress toward that goal. We have created strategic distribution partnerships with Compaq, Concentric, Earthlink, INTERSHOP and Microsoft. We have expanded our technology offerings by developing CashRegisterOnDemand and acquiring Tellan Software. By doing so, we can now provide our customer base with a broader range of solutions to help accelerate and simplify e-commerce. We expect to be announcing similar initiatives over the next few weeks. As a result of these moves and increased emphasis on sales and marketing, CyberCash has increased the number of merchants using the CashRegister service to approximately 14,000, nearly 50% more than at year-end,” he added.

CyberCash has also been building partnerships to expand its Agile Wallet platform by adding new services designed to assist merchants in growing their businesses. The Company has recently announced relationships with Commission Junction, NetGravity, and CyberCash is also continuing to add functionality to its Agile Wallet, including the ECML-compliant Form Wizard. “By combining these marketing services and distribution vehicles with the simplicity of the Agile Wallet’s InstaBuy service, CyberCash extends the value of the platform by enhancing the ability of Internet merchants to increase their sales,” said James J. Condon, president and COO, CyberCash.

About CyberCash, Inc.

CyberCash is the world leader in secure, convenient payment technologies and services, enabling e-commerce across the entire market spectrum from electronic retailing environments to the Internet. CyberCash provides a complete line of software products and services allowing merchants, billers, financial institutions and consumers to conduct secure transactions using the broadest array of popular payment forms. Credit, debit, purchase cards, cash, checks, smart cards and alternative payment types (e.g., “frequent buyer” or loyalty programs) are all supported by CyberCash payment solutions. Leading brands of CyberCash include InstaBuy(TM), AgileWallet(TM), ICVERIFY(R), PCVERIFY(TM), CashRegister, NetVERIFY(TM), CyberCoin(R), PayNow(TM). Leading brands of its subsidiary, Tellan Software, Inc., include WebAuthorize(TM), PCAuthorize(R) and MacAuthorize(R).


Discover &

Discover Financial Services, Sprint and EarthLink became the three newest participants in’s “sponsor dollars” adaptive marketing program yesterday. Each time a customer applies for a ‘Discover Card’, Sprint consumer long-distance service, or an EarthLink Internet account while submitting an offer for leisure airline tickets or hotel room nights, a specific amount of sponsor dollars is added to the customer’s offer. Adding sponsor dollars increases the total amount of an offer at no cost to the customer, increasing the likelihood that a major airline or hotel will accept the customer’s price. The Sprint promotion began Thursday. The ‘Discover Card’ and EarthLink promotions are expected to launch in coming weeks.


Trintech 2Q/99

Trinitech Systems, Inc. announced revenue for the second quarter ended June 30,1999 increased 94.8% to $3,041,566, from $1,561,547 in the same quarter last year. Net earnings were $150,165 or 2 cents per share. This compares with a net loss of $585,000, or 7 cents per share in the prior year period.

For the six months ended June 30, 1999, revenue totaled $5,446,728, a 109.3% increase from revenue of $2,601,823 for the first six months of 1998. Net income totaled $180,342 or 2 cents per share for the first half of 1999, compared with a net loss of $1,526,000 or 18 cents per share for the same period last year. Revenue growth for the second quarter was driven by increased demand for Trinitech’s Trader Workstations, Exchange Floor Systems, and NYFIX Network Connectivity for electronic trading.

“We believe that the second quarter marks the start of Trinitech’s positive profit curve. We have increased profits since last quarter and anticipate continued positive growth going forward,” commented Peter Kilbinger Hansen, Trinitech’s President and Chief Executive Officer.

The second quarter represented a record period for signing of new business. The Company signed a total of 35 new deals totaling close to $4 million, with $3.4 million of that representing annual recurring revenue, providing a strong backlog for NYFIX services heading into the second half of 1999. Agreements signed during the second quarter should impact results in the third and fourth quarters and ongoing thereafter, as billing is commenced when systems are installed and fully operational, typically a 90 day time frame from contract signing.

Daily average volume for shares processed through NYFIX exceeded 100 million during the second quarter. “The next phase of the Company’s business plan is very ambitious and directly emphasizes the importance of owning as much of the electronic order routing infrastructure as possible. As we continue to bring new customers online and focus on deploying more of the underlying ‘plumbing’ for the rapid expansion of electronic trading on Wall Street, we expect share volume to continue to increase steadily throughout this year and going forward.” Mr. Hansen remarked.

During the second quarter, Trinitech continued to focus on its customer service initiative. The Company hired staff in account management and customer service roles, in addition to adding employees in sales, networking and software development. “We believe winning products will continue to bring in new customers and good service will keep them for the long term,” concluded Mr. Hansen.

Trinitech Systems, Inc. (Amex: TSI) develops and markets advanced electronic trading systems to brokerage firms, international banks and global exchanges trading in equities, futures & options, and currencies. The Company’s NYFIX Network, a combined FIX and Exchange Access Network, enables users to electronically communicate trade data among the buy-side, sell-side, and exchange floor environments. NYFIX is the financial community’s fastest-growing intranet, linking over 100 firms and processing more than 100 million shares of equity order flow on a daily basis. The Company’s goal is to become the leading provider of real-time electronic trade entry and routing systems to the global financial services industry. Trinitech is headquartered in Stamford, Connecticut and maintains operations in New York, Chicago, and London.


Providian in KY

Providian Financial announced this morning plans to open a new operations center in Louisville, Ky., to support the growth and expansion of the company’s consumer lending businesses. This is the company’s fifth expansion in 1999 and comes only one month after the State of Kentucky offered Providian preliminary approval for tax credits totaling $20 million for one thousand new jobs the company expects to create there in the next two years.

“The strong growth of the Company’s businesses has created the need to open an additional operations center. We are excited to be expanding our operations in the Louisville Metropolitan area,” said Providian Chairman and Chief Executive Officer Shailesh J. Mehta, “and as we grow, we are happy to be part of Kentucky’s economic development efforts.”

The new operations center will be Providian’s second in Kentucky. The company has had an established presence in Louisville since 1995, and currently employs 500 people there. Expected to open in the fall of 1999, the new office will comprise 90,000 square feet of leased space at the Hurstburne Green Office Park. The majority of that space will be devoted to operations for Providian’s credit card business and the company’s wholly-owned subsidiary, First Select Corporation. The remaining space will serve as a 5,000 square-foot training facility for the new sales, telecredit, and collections personnel who will staff those operations.

Today, Providian employs more than 8,000 people nationwide. Since becoming a public company in June 1997, they have created more than seven jobs per day. So far this year, the company has established new operations facilities in Pleasanton and Oakland, Calif.; Arlington, Texas; and London, aggregating approximately 350,000 square feet of space. Providian Financial Corporation

([][1]) is a leading provider of lending and deposit products to customers nationwide and now offers credit cards in the United Kingdom. Providian serves a broad, diversified market with loan products that include credit cards, home equity loans, secured cards and membership services. With $18 billion in assets under management and over 10 million customers, Providian is committed to providing 100% customer satisfaction. San Francisco-based Providian Financial is one of the ten largest bankcard issuers in the nation, and in 1998 ranked as the seventh best performing stock in the S&P 500 and the single best performing stock in the S&P Financial Composite Index.



Mellon ACH Pilot

Mellon Global Cash Management announced Thursday it processed its first live cross-border transaction on July 23, 1999, through a pilot that allows the origination of Automated Clearing House (ACH) transactions to corporate and consumer customers in Canada. Mellon is the first financial institution to initiate payments to Canadian consumers under the pilot.

Sponsored by the Federal Reserve Bank of Minneapolis, the pilot allows participating banks to originate debits or credits to Canada by taking advantage of the existing ACH network and its file formats.

“Processing the first live transaction under the cross-border pilot is a significant accomplishment for Mellon,” said Robert W. Stasik, executive vice president and head of Mellon GCM. “It provides an opportunity to expand the level of service to our customers by exploiting channels already in place and augments our long-standing capability to deliver payments globally in a cost- effective manner.”

Through the pilot, customers can send cross-border transactions to participating U.S. banks which, in turn, send the items to the Minneapolis Federal Reserve with normal activity. The Fed recognizes the items as cross- border and routes the transactions to the Canadian gateway operator, Toronto Dominion Bank, which converts them to Canadian dollars and routes them to appropriate Canadian banks for posting. The entire process takes only approximately one day, the same as a domestic ACH transaction.

“We are now able to electronically deliver payments to our pensioners living in Canada,” said Michael Fallon, controller of the Board of Pensions of the Presbyterian Church (USA), whose beneficiary received the first payment. “It has increased efficiency by allowing us to originate payments through Mellon using standard, domestic ACH file formats and our existing benefit payment software.”

In a separate pilot sponsored by The Cross Border Council of the National Automated Clearing House Association, Mellon will play a role in a multiyear effort to develop a global ACH network. Tentatively called the Worldwide Automated Transaction Clearing House (WATCH), the pilot will provide guidelines and a communications network by which batch payment transactions can be delivered from one country’s clearing house to another country’s. Mellon is one of 33 international banks to participate.

“The global pilot will play an important role in the future of international ACH transactions,” said Michael W. Anderson, director of Mellon GCM’s Customer Solutions Center. “Our goal is to develop the capability to easily deliver batch payment transactions to and from virtually any country.” Mellon Global Cash Management, an industry leader known for its innovation and expertise, designs complete solutions through its comprehensive line of cash management services to meet the specialized treasury needs of middle market to large multinational corporations, government agencies, nonprofit organizations and financial institutions.

A broad-based financial services company with a bank at its core, Mellon Bank Corporation (NYSE: MEL) ranks among the nation’s largest financial services companies in market capitalization. With approximately $2.4 trillion in assets under management, administration or custody, including approximately $415 billion under management, Mellon provides a full range of banking, investment and trust products and services to individuals and small, midsize and large businesses and institutions. Its mutual fund companies, The Dreyfus Corporation and Founders Asset Management in the United States, and Newton Management Limited in the United Kingdom, place Mellon as one of the world’s leading managers of mutual funds. Mellon also is a global leader in benefits consulting through its Buck Consultants, subsidiary in New York. Headquartered in Pittsburgh, Mellon’s principal subsidiary is Mellon Bank, N.A.


IBM Smart Cards

IBM and IC One, announced a smart card partnership yesterday, including plans for reciprocal licensing agreements and revenue sharing arrangements. IBM also secured the option to obtain an equity position in IC One. In joint technical development for two-and-a-half years, IC One and IBM built a complete open smart card architecture solution, supported by a robust back-end, data-management system, powered by an IBM DB2 database. The system provides smart card Plug-N-Play compatibility. Plans for continued joint development rollout schedules and strategies are underway.


P-Card Growth

VISA says a recently commissioned study of purchasing managers and CFOs shows the number of firms using internet-based software for procurement has grown by nearly 50% from the previous year. The survey also found that, of the 57% of companies currently engaged in electronic purchasing, 32% are already using their purchasing card to pay for goods and services ordered electronically, and a strong 57% indicated their intentions to do so in the future. Surprisingly, those companies that are not currently engaging in electronic purchasing are not necessarily put off by the steep up-front costs associated with such a system, as only 14% cite this factor as an inhibitor. Rather, 45% of companies cite lack of senior management support as the reason they are not making purchases electronically. VISA’s Market Sizing Research Study, released in January, projects the worldwide market for commercial e-commerce will grow to approximately $1.1 trillion by 2003, with the U.S. accounting for more than 58% of that volume.


NextCard 2Q/99

Despite a 263% increase in revenues and beating analysts’ projections, NextCard continued to get hammered in the stock market yesterday. NextCard’s common stock closed at $22.50 per share inching close to its IPO price of $20.00 share. NextCard’s stock opened at $33.50 on May 14 and climbed to $50.00 per share before free-falling this week. Yesterday NextCard released its second quarter earnings report which shows that revenues for the second quarter were $3.6 million, a 263% increase over revenues of $1.0 million for the first quarter. By comparison, NextCard generated $1.2 million in revenues for the full year of 1998. Total customer accounts increased to approximately 85,000 at June 30 from approximately 55,000 at March 31. Since launching the ‘NextCard VISA’ in Dec. 1997 the company has processed 2 million applications for its online credit card products. The delinquency rate (30+ days) on total managed loans was 1.2% for the second quarter, compared with 1.0% as of March 31. The annualized net charge-off rate for managed loans increased to 1.3% for second quarter 1999, compared with 0.9% for first quarter 1999.


Wachovia Campus Card

Wachovia Bank was named Wednesday as the primary bank for the ‘UNC One Card’, the official student and employee ID card at the University of North Carolina at Chapel Hill. Beginning this fall, students, faculty and staff will be able to add optional Wachovia banking services to their campus ID cards. The program offers access to 24,000 students and 11,000 employees. Yesterday’s announcement brings to more than 100,000 the number of students, faculty and staff members who will have access to Wachovia through campus card programs in the Southeast. Wachovia also will introduce campus card programs at Georgia Perimeter College in metropolitan Atlanta and Mercer University in Macon, Ga., this summer. Early next year, a program will begin at North Carolina A&T University in Greensboro, and Wake Forest University in Winston-Salem, N.C., is scheduled to introduce its program in the fall of 2000. Wachovia already has campus card relationships with Clayton College & State University in Morrow, Ga., and Virginia Commonwealth University in Richmond.


Voyager Card Sold

U.S. Bancorp is acquiring Voyager Fleet Systems, Inc. from Associates First Capital. Voyager Fleet Systems provides comprehensive fleet management information services to corporations and is the leading provider for state and federal government agencies that operate large fleets of cars, light trucks and vans. Voyager facilitates payments and provides data and electronic reporting through the use of fleet credit cards. Voyager serves more than 765,000 vehicles and is accepted at more than 145,000 fueling and maintenance locations nationally. Transaction volume for this year is estimated to be approximately $580 million, an increase of 244% from 1998. U.S. Bancorp currently issues co-branded ‘Voyager’ cards to the federal government and corporate sector. The acquisition is pending regulatory approval and is expected to close next month.