Mileage Plus Bonus

United Airlines announced Friday it has created a new program the enables merchants, for the first time, to determine their own mileage value offer for transactions. ‘Mileage Plus Shopping’ merchants will be able to specify the reward level for each purchase dollars, from one mile per dollar to ten miles per dollar. The MPS program was developed out of the Momentum Merchant Network, which provides a technological platform eliminating the need for tracking and reporting merchant sales and making all transactions entirely transparent. The ‘Momentum’ program was developed by a partnership between SHC Direct, Vital Processing Services and Universal Value Network.

[Click Here For Mileage Plus Shopping Brochure][1]

[1]: /cardflash/secure/oldstatic/1999/may/mp1.html

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Triton Record

MS-based Triton Systems announced this morning that its ATM shipments for 1998 surpassed 10,000 units for the first time, a 35% increase over 1997. Triton says it has deployed off-premise ATMs in more than 30,000 retail locations. The company says the figures places it as the fifth largest ATM manufacturer in the world and, for the fourth consecutive year, the third largest in the U.S.

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Aria Card

San Francisco-based Providian is launching its new online credit card brand this morning that will directly compete with San Francisco-based NextCard. The new suite of ‘Aria’ VISA cards features online instant approvals, a rewards program, online balance transfers, online account access and upgraded perks. The four ‘Aria’ VISA cards include ‘Aria VISA Platinum Premium’, ‘VISA Platinum’, and two subprime card programs, ‘VISA Portrait’ and ‘VISA Persona’. ‘The instant rewards feature for ‘Aria’ is the ‘MyPoints’ program which offers 5 points for every purchase dollar, a 500 point bonus for opening an account, and a 2,500 point bonus for a balance transfer. Providian says the addition of ‘Aria’ aggressively positions Providian in the e-commerce segment. However, it is unclear this morning how Providian will promote its new product among the dozens of card products it currently offers, under contract, from competitors, via GetSmart.com. Last February, Providian acquired WebCard, GetSmart.com and created its new E-Commerce Division. NextCard’s CEO/founder, Jeremy Lent, is a former Providian CFO/SVP. Other NextCard officers/directors who formerly worked for Providian include: Timothy Coltrell and John Hashman.

PROVIDIAN’S ARIA PORTFOLIO
VISA Product INTRO PURCH BAL TXFR CASH ADV
Platinum Premium 0%/3mo 7.99% 12.99%-21.99% 21.99%
Platinum 0%/3mo 12.99% 12.99%-21.99% 21.99%
Portrait 0%/2mo 19.99%* 21.99% 21.99%
Persona 0%/2mo 23.99%* 23.99% 23.99%

all cards no-annual-fee except Persona; * no grace period

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Super ATM’s

Cleveland-based Firstar said Friday it is gearing up to deploy its first ‘Super ATM’ next month. The new ATMs will dispense cash, account statements, postage stamps and phone cards. Firstar will make the first installation at Hopkins International and Burke Lakefront Airports. Seven Firstar ATMs, one in each of Hopkins International’s four terminals, and another in the airport’s shopping mall and off-site car rental center, will be installed in early June. At the same time, Burke Lakefront Airport will see a Firstar ATM be installed in the main concourse. Firstar now operates 200 ATMs in Northeastern Ohio and 1,400 ATMs throughout the Midwest.

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Bankrate Acquisition

Intelligent Life Corp announced friday that it has hired Edward Vermont (“Monty”) Blanchard, Jr. as Executive Vice President for Strategy and Acquisitions. Mr. Blanchard’s responsibilities will include identifying and consummating acquisitions and other strategic ventures for Intelligent Life. Intelligent Life is committed to a growth strategy, as outlined in its recent registration statement, which includes acquisitions. The Company has expressed its desire to expand original editorial content and research on consumer financial subjects including banking and credit, insurance, taxes, investing and planning.

“Retaining an executive with Monty Blanchard’s qualifications reinforces the commitment our company has made to expansion through acquisition. We have worked together for a number of years, and I am sure he will work to find and close the right deals quickly and effectively for our shareholders,” said William P. Anderson, President and CEO of Intelligent Life. “We want to move quickly; having Monty on board will help us do that.”

“I am pleased to join the outstanding management team Bill has assembled, and I am excited at the prospect of helping to build a great internet-based financial services company,” Mr. Blanchard said.

Mr. Blanchard is a former Managing Director and co-head of the Financial Institutions Mergers & Acquisitions Group at Merrill Lynch & Co., Inc. While at Merrill Lynch, Mr. Blanchard served as strategic M&A Advisor for a number of the firm’s large financial service clients in the insurance, asset management, credit card, consumer and commercial financial industries. In addition, he acted as a senior internal M&A Advisor and negotiator for a number of Merrill Lynch’s own acquisitions, including Smith New Court (U.K.), Macintosh Securities (Australia), Mercury Asset Management (U.K.), Midland Walwyn (Canada) and the takeover of selected former branches of Yamaichi Securities in Japan. Mr. Blanchard has worked as an investment banker since 1979 and was employed at Merrill Lynch from 1966 to 1999. He has a BA from Harvard College and an MBA from the University of North Carolina at Chapel Hill.

About Intelligent Life Corp.

Intelligent Life Corporation is a new media publisher. It creates original editorial content relating to personal finance and publishes this content through its Internet sites Bankrate.com, theWhiz.com, Consejero.com and CPNet.com. Through its Bankrate.com site, the Company provides consumers with independent, objective research on banking and credit products including mortgages, home equity loans and credit cards. In addition, this information is published on co-branded Internet sites through more than 60 distribution arrangements, including many of the leading online publishers of financial information. Its original research is also distributed in print through major national and local publications. In the fourth quarter of 1998, Bankrate.com had more than 1.3 million unique visitors, according to Media Metrix.

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Virtual Clearing House

Internet Payment Exchange, a new bill payment solutions company based in Clifton, VA, is developing the financial industry’s first Internet-based payment clearinghouse. The IPAYX Virtual Clearinghouse will efficiently transfer payment and remittance advice information among consumer and business customers through the Internet. The clearinghouse will be compatible with bill presentment and traditional “pay-anyone” payment systems.

“Current payment clearing options, such as those offered by CheckFree , are built on an old telecommunications architecture that’s losing money for all parties but the payment processor,” said Douglas E. Braun, president and chief executive officer of Internet Payment Exchange. “IPAYX will virtually eliminate the need for a middleman in payment routing and clearing, significantly decreasing the third-party role. We’re capitalizing on the ubiquity of the Internet to turn bill payment into a money maker.”

Generating Revenue Through Bill Payment

As much as 65 percent of electronic banking costs is attributed to fees charged by third-party companies for payment processing, Braun noted. The IPAYX Virtual Clearinghouse will change the economy of bill payment by making it a profit center for payment originators (such as banks) and significantly cutting costs for billers who use consolidators (including warehouse and lock box operations) to receive payments. The payment originator is paid for the effort of collecting the payment by the consolidator, who in turn is paid by the biller. The biller acquires the payment at a fraction of the traditional payment expense. “Payment clearing currently requires the originator to pay for transactions they remit,” Braun said. “IPAYX turns that model upside down. We also charge per item rather than per consumer, letting originators take advantage of least-cost routing.”

A Direct Payment Route

The IPAYX Virtual Clearinghouse provides a direct route for electronic payments, using the Internet as a universal information channel. It is designed so that any payment warehouse can send electronic payments directly to biller remittance lock boxes anywhere. Within the Virtual Clearinghouse architecture, IPAYX will offer a virtual private network for payment clearing and information exchange. The virtual private network adds encryption and authentication to the Internet, thereby creating a closed set of access points that use regular Internet pathways for private and secure communications. As a result, the individual transactions take the shortest, fastest and most economical route. IPAYX will also provide a directory synchronization service for routing and posting biller information.

“In the Internet world, there’s no need to funnel payments to third parties when a biller is directly addressable,” Braun said. “Payments aren’t touched, sorted, or handled by any intermediaries, so chances of error are minimized and transaction charges are significantly reduced.” Additional IPAYX Services In addition to the Virtual Clearinghouse, IPAYX will provide alternative delivery services for payments that can be partially completed electronically, such as ACH with either e-mail or fax remittance not

“The irony of e-billing today is that around half of electronic payments are converted into paper checks,” Braun said. “IPAYX offers solutions to help maximize the use and acceptance of electronic payments.” IPAYX will also offer check printing to complement the IPAYX electronic delivery network. The company is currently discussing business relationships and alliances with several super-regional banks and financial service providers.

“We’re already getting a strong response from banks and other financial services companies who want to realize the benefits of electronic payments that have remained elusive,” Braun said. “By providing a highly efficient, low-cost payment alternative, IPAYX has a competitive advantage that will set new standards for the bill payments industry.” About Internet Payment Exchange

Internet Payment Exchange (IPAYX) is a new bill payment solutions company formed in January 1999 to develop efficient, low-cost solutions for bill payment clearing among financial institutions. IPAYX’s products and services are designed to help financial institutions stay involved and profitable in the emerging electronic payments industry. The company’s flagship product is a Virtual Clearinghouse that uses the Internet to efficiently transfer payment and remittance advice information among consumer and business customers at a greatly reduced cost. IPAYX was founded by experienced managers in banking and technology circles with considerable frontline knowledge about electronic banking and payment systems. For more information about IPAYX and its founders, contact Douglas Braun by phone at 703-449-8890, e-mail at douglasbraun@usa.net, by fax at 703-449-9692 or visit www.ipayx.com.

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M-Smart Jupiter

Imagine a world where you could securely log onto your computer, purchase an airline ticket via an encrypted Internet connection and download the boarding pass onto a smart card. Next, you can log onto a government Web site, download your passport onto the same card and then use it to board the airplane to an international destination. When you reach your destination, you could then plug that same smart card into your computer and download an application that allows you to collect hotel and rental car loyalty points. And, perhaps most importantly, before embarking on the trip home, you could plug the card into your computer and download your first class upgrade.

This world is now significantly closer, thanks to Motorola’s Worldwide Smartcard Solutions Division’s (WSSD’s) M-Smart Jupiter(tm) Platform, which supports secure and dynamic application download, robust security, advanced speed and processing power, and maximum flexibility in building value-added smart card solutions. In short, the new platform will allow consumers and businesses to customize smart cards, just as personal computers are customized today by downloading software onto the platform. Similar to how defacto standards helped drive the personal computer industry in the 1980s, Motorola’s innovative Jupiter platform is expected to drive smart card applications and adoption into the next millennium.

“When personal computers were introduced, there was no prevailing standard. It was not until the world embraced the Windows(R) development and operating environment that the sales of PCs exploded,” said Francois Dutray, Motorola’s vice president and general manager, WSSD. “In contrast, in the smart card world, we’re deploying open standards platforms from the beginning, meaning that it may take five years to accomplish in the smart card market what it took 15 years to accomplish in the personal computer market.” The standards that make this possible are the Java Card ™ 2.1 and Visa Open Platform ™ 2.0 technology specifications, which enable the development of globally interoperable smart card systems. In addition, the specifications allow smart card issuers to choose from a variety of operating system options and application developers while providing a core security and card management technology.

Java Card 2.1 technology supports the downloading and customization of applets, or applications, on a smart card platform tailored to the cardholder’s requirements. In conjunction with Open Platform 2.0, which supplements the Java Card platform, a user can securely and dynamically download applications onto the card. Combined with Motorola’s 32-bit RISC processor-based M-Smart Jupiter Platform, these standards create a secure, convenient and dynamic downloading environment. “We are excited by Motorola’s Jupiter platform,” said Patrice Peyret, director, Java Card. “This new development will add to the already significant momentum of Java Card technology in the marketplace and will help drive the adoption of multi-application smart cards.”

In addition, Motorola’s M-Smart 32-bit Jupiter platform represents a significant advancement in smart card security in that it combines both a hardware and software firewall. Until now, smart card platforms have employed a software- only firewall to maintain integrity between the applications – such as banking and transit – that are loaded on the card. Motorola’s unique hardware/software firewall combination, which is based on a secure memory management unit, prevents applications and data from being accessed by unauthorized users. If the hardware firewall detects intrusion, the card is automatically deactivated, protecting the data on the card. In addition, it prevents applications from interfering with each other, which allows trouble-free downloading of additional applications and peace of mind for the consumer.

“We applaud Motorola’s implementation of the Open Platform on its M-Smart Jupiter 32-bit platform,” said Phillip Yen, senior vice president, Emerging Technology, Visa International. “This represents the most advanced technological implementation to date, which will bring significant benefits to card issuers. This dramatic innovation demonstrates the flexibility that a common, open platform provides to card manufacturers and application developers. It is one step further toward the creation of a smart card world based on common standards.” “Motorola has made great strides toward the deployment of multi-function dynamic smart card solutions,” said Jean-Gerard Galvez, chairman, president and CEO of ActivCard. “Coupling Motorola’s innovative technology with our logical network security and authentication services for Java Card technology and the Visa Open platform will enable smart card solutions that will power the future of Internet-based business.”

Creating a User-Friendly Development Environment

In addition to representing a quantum leap in capability and speed as compared to existing products on the market, Motorola’s 32-bit platform supports a multi-application environment and offers unique flexibility and functionality at the operating system level. The features of the operating system of the 32-bit card are modular, allowing users to customize applications with significantly less effort than in the past. Motorola can also customize the operating system for its customers – for example, a customer could choose an operating system that does not support contactless operation, thus allowing more space for a wider variety of applications to be loaded onto the card. In addition, Motorola is offering an application development workbench that developers can use to create applets that are compliant with Java Card 2.1 technology and Open Platform 2.0. The workbench, designed to develop applets that can work on any card that supports the Java 2.1 specification, will help create a friendly, robust development environment that will result in shorter application development cycles. For instance, an airline could use the workbench to develop a loyalty application that could be downloaded from the Web onto any smart card that is Java Card 2.1 and Open Platform 2.0 compliant. “Not only does Motorola’s Jupiter 32-bit platform support advanced security, flexibility and functionality, the workbench allows application developers to deliver applications into card holders’ hands quickly and easily,” said Dutray.

“By significantly reducing the application development cycle time, Motorola is helping drive further development and adoption of smart card applications worldwide.” Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions such as software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers. Sales in 1998 were $29.4 billion. For additional information, contact Motorola WSSD at (847) 576-3041 or visit our website at .

Motorola & M-Smart Jupiter are trademarks of Motorola, Inc. Windows is a registered trademark of Microsoft. Sun, the Sun logo, Java and Java Card are all registered trademarks of Sun Microsystems, Inc. in the United States and in all other countries. Visa Open Platform is a trademark for Visa.

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Plastic Fever

Standard Register’s ‘National Consumer Survey of Plastic Card Usage’, released yesterday, found that 89% of adults use credit cards while 61% use ATM cards, 59% use membership cards, 37% use debit cards, 33% use prepaid cards, 29% use prepaid phone cards, 25% use loyalty cards, and 5% use smart cards. Half of adults reported regularly carrying one to three plastic cards on a regular basis, while 30% say they usually carry four to six. When it comes to debit, 40% of consumers who own debit cards use them more frequently than their ATM card, while 33% use debit cards less often than ATM cards, and 21% use the two types of cards about the same. SR says it conducted 1,202 telephone interviews with consumers throughout the U.S. during the first two weeks of March.

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Fargo Printers & VOP

UbiQ Incorporated announced this week that Fargo Electronics will use its latest software to enable issuance of Visa Open Platform smart cards using Fargo’s line of desktop card printers. The UbiQPersoMaster software will allow Fargo’s large base of customers to issue smart cards based on a platform that is expected to be widely adopted worldwide.

Open Platform is a comprehensive system architecture designed by Visa that enables fast and easy development of globally interoperable smart card applications. It offers card issuers secure, flexible control and management of dynamic, multifunction smart cards. This non-proprietary platform leverages best-of-breed technology, such as JavaCard from Sun Microsystems and SmartCards for Windows from Microsoft. Further information is available at

![][1] “Our UbiQPersoMaster(TM) solution is a comprehensive, migrateable set of personalization tools for Open Platform card issuers,” said David Tushie, president of UbiQ. “It provides an ‘open system’ platform which, when combined with Fargo’s industry-leading card printers, creates a single, manageable, highly cost-effective solution.”

“Our relationship with UbiQ provides great added value for Fargo’s customers,” said Gary Holland, Fargo’s President. “It gives them a seamless way to incorporate smart card personalization into their operations, letting them issue Open Platform cards for both financial and non-financial card applications.”

About UbiQ Inc.

Founded in 1994, UbiQ Inc. ( ) is a rapidly growing, privately held software firm based in Minneapolis, Minn., that has developed proprietary, patented technology for high-volume smart card personalization. UbiQ’s mission is to be the highest value integrator in the smart card issuance process, reducing the time and cost necessary for secure, faultless “mass” card issuance. The company markets its products in 80 countries worldwide to smart card issuers including Visa and MasterCard member institutions. Other customers and partnerships include card service bureaus, smart card manufacturers, and card personalization and printing equipment manufacturers. Target markets for UbiQ’s software include Internet and electronic commerce, financial services, secure networks, travel and entertainment, stored-value cards, pay phone, digital wireless and GSM, national ID cards, and healthcare.

About Fargo Electronics

Headquartered in Eden Prairie, Minn., Fargo Electronics ( ) is a leading developer and manufacturer of dye-sublimation and wax thermal transfer color page printers and ID card printers. Its printers are among the best-selling card printers in the world today. Fargo does business in more than 80 countries worldwide and maintains one of the largest reseller networks in the color printer business today.

A U.S. Patent has been issued and others are pending for UbiQ’s software solutions. UbiQ is a registered trademark of UbiQ Incorporated, and UbiQPersoMaster is a trademark. FARGO is a trademark of Fargo Electronics Inc. Java and JavaCard are trademarks of Sun Microsystems Inc. All other trademarks are the property of their respective owners.

[1]: /graphic/fargo/fargo.gif

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Tidel Deal

TX-based Tidel Technologies, Inc. announced yesterday that one of its largest distributors, Credit Card Center, has reached a deal with Motiva Enterprises to offer ATM equipment and services to more than 14,000 Shell and Texaco branded stations located in the U.S. The Motiva dealer stations are primarily located in 26 Eastern and Gulf Coast states and Washington, D.C. Philadelphia-based Credit Card Center will feature Tidel’s ‘Ignition Series’ ATMs to the Motiva dealer stations.

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Motorola’s 32-bit Smart Card Platform

Imagine a world where you could securely log onto your computer, purchase an airline ticket via an encrypted Internet connection and download the boarding pass onto a smart card. Next, you can log onto a government Web site, download your passport onto the same card and then use it to board the airplane to an international destination. When you reach your destination, you could then plug that same smart card into your computer and download an application that allows you to collect hotel and rental car loyalty points. And, perhaps most importantly, before embarking on the trip home, you could plug the card into your computer and download your first class upgrade.

This world is now significantly closer, thanks to Motorola’s Worldwide Smartcard Solutions Division’s (WSSD’s) M-Smart Jupiter (TM) Platform, which supports secure and dynamic application download, robust security, advanced speed and processing power, and maximum flexibility in building value-added smart card solutions. In short, the new platform will allow consumers and businesses to customize smart cards, just as personal computers are customized today by downloading software onto the platform. Similar to how defacto standards helped drive the personal computer industry in the 1980s, Motorola’s innovative Jupiter platform is expected to drive smart card applications and adoption into the next millennium.

“When personal computers were introduced, there was no prevailing standard. It was not until the world embraced the Windowsr development and operating environment that the sales of PCs exploded,” said Francois Dutray, Motorola’s vice president and general manager, WSSD. “In contrast, in the smart card world, we’re deploying open standards platforms from the beginning, meaning that it may take five years to accomplish in the smart card market what it took 15 years to accomplish in the personal computer market.”

The standards that make this possible are the Java Card (TM) 2.1 and Visa Open Platform (TM) 2.0 technology specifications, which enable the development of globally interoperable smart card systems. In addition, the specifications allow smart card issuers to choose from a variety of operating system options and application developers while providing a core security and card management technology. Java Card 2.1 technology supports the downloading and customization of applets, or applications, on a smart card platform tailored to the cardholder’s requirements. In conjunction with Open Platform 2.0, which supplements the Java Card platform, a user can securely and dynamically download applications onto the card. Combined with Motorola’s 32-bit RISC processor-based M-Smart Jupiter Platform, these standards create a secure, convenient and dynamic downloading environment.

“We are excited by Motorola’s Jupiter platform,” said Patrice Peyret, director, Java Card. “This new development will add to the already significant momentum of Java Card technology in the marketplace and will help drive the adoption of multi-application smart cards.”

In addition, Motorola’s M-Smart 32-bit Jupiter platform represents a significant advancement in smart card security in that it combines both a hardware and software firewall. Until now, smart card platforms have employed a software- only firewall to maintain integrity between the applications – such as banking and transit – that are loaded on the card.

Motorola’s unique hardware/software firewall combination, which is based on a secure memory management unit, prevents applications and data from being accessed by unauthorized users. If the hardware firewall detects intrusion, the card is automatically deactivated, protecting the data on the card. In addition, it prevents applications from interfering with each other, which allows trouble-free downloading of additional applications and peace of mind for the consumer.

“We applaud Motorola’s implementation of the Open Platform on its M-Smart Jupiter 32-bit platform,” said Phillip Yen, senior vice president, Emerging Technology, Visa International. “This represents the most advanced technological implementation to date, which will bring significant benefits to card issuers. This dramatic innovation demonstrates the flexibility that a common, open platform provides to card manufacturers and application developers. It is one step further toward the creation of a smart card world based on common standards.” “Motorola has made great strides toward the deployment of multi-function dynamic smart card solutions,” said Jean-Gerard Galvez, chairman, president and CEO of ActivCard. “Coupling Motorola’s innovative technology with our logical network security and authentication services for Java Card technology and the Visa Open platform will enable smart card solutions that will power the future of Internet-based business.”

Creating a User-Friendly Development Environment

In addition to representing a quantum leap in capability and speed as compared to existing products on the market, Motorola’s 32-bit platform supports a multi-application environment and offers unique flexibility and functionality at the operating system level. The features of the operating system of the 32-bit card are modular, allowing users to customize applications with significantly less effort than in the past. Motorola can also customize the operating system for its customers – for example, a customer could choose an operating system that does not support contactless operation, thus allowing more space for a wider variety of applications to be loaded onto the card.

In addition, Motorola is offering an application development workbench that developers can use to create applets that are compliant with Java Card 2.1 technology and Open Platform 2.0. The workbench, designed to develop applets that can work on any card that supports the Java 2.1 specification, will help create a friendly, robust development environment that will result in shorter application development cycles. For instance, an airline could use the workbench to develop a loyalty application that could be downloaded from the Web onto any smart card that is Java Card 2.1 and Open Platform 2.0 compliant. “Not only does Motorola’s Jupiter 32-bit platform support advanced security, flexibility and functionality, the workbench allows application developers to deliver applications into card holders’ hands quickly and easily,” said Dutray. “By significantly reducing the application development cycle time, Motorola is helping drive further development and adoption of smart card applications worldwide.”

Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions such as software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers. Sales in 1998 were $29.4 billion. For additional information, contact Motorola WSSD at (847) 576-3041 or visit our website at .

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