IBM CyberCash

IBM announced Wednesday that it is working with CyberCash’s ‘ICVERIFY’ unit to develop and market an Internet payment offering that increases the number of options merchants have for processing credit card orders. Both companies also announced yesterday complementary agreements whereby IBM will market CyberCash’s ‘NetVERIFY’ and CyberCash will market IBM’s ‘Payment Server’ through their respective sales channels. As part of the agreement, IBM and CyberCash will create a ‘NetVERIFY’ payment cassette for the newest release of IBM’s ‘Payment Server’ due out in August. By integrating the ‘NetVERIFY’ cassette with the IBM ‘Payment Server’, IBM plans to provide businesses with an end-to-end merchant payment solution that can handle SET and  SSL credit card payments from consumers. Once the merchant has received either a SET or traditional credit card payment, the transaction can be authorized and deposited using IBM’s ‘Payment Gateway v1.2’, which provides acquirer support for both SET and SSL, or using traditional dial-up or leased line acquirer processor connections.

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Mexico City Smart Cards

Net 1 U.E.P.S. Technologies, Inc., commenced a tender proposal to government officials of Mexico City today encompassing a contact-less smart card solution for the Mexico City transportation system. The tender follows on from meetings held in Mexico City on June 22 and June 23, 1998 in which NUEP was asked to quote on a Metro(subway) system which handles five million riders each day along with feeder light rail and bus systems.

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Cap One UK

Capital One Bank opened ‘Trent House’, the card issuer’s first operations center in Europe, located in Nottingham, East Midlands, U.K..  The operations center will service the needs of its rapidly expanding U.K. customer base and act as a springboard into continental European markets. The formal opening was conducted yesterday by the Deputy Prime Minister following eight months of lobbying by the Board of Trade. Capital One’s 3O million pound investment is the largest by a U.S. firm into the East Midlands in six years. Capital One plans to employ up to 900 people by the year 2000 at the newly named Trent House, a former Boots Printing Works facility.  As of this morning 130 employees are employed at the new facility.

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Household Name

Household International named Michael E. Marcus as Managing Director of Marketing for Household Credit Services’ U.S. bank credit card business last night.  Marcus will report to Bobby Mehta, Group Executive responsible for Household’s $17 billion MasterCard/VISA unit.  Before joining Household, Marcus was a partner in the Chicago office of The Boston Consulting Group.    For the past two years Marcus has overseen numerous projects for Household, focusing particularly on customer segmentation strategies, retention programs and loss management initiatives.

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IBS + CBIS

USCS International Inc. announced Tuesday that its International Billing Services (IBS) subsidiary, and CBIS will team to offer IBS’ Electronic Billing Solution to CBIS’s entire client base. Under the terms of a multi-year agreement between the two industry leaders, companies that use CBIS’s billing and customer support solutions can now offer consumers a wider range of options for receiving and paying their monthly statements. These options include electronic statements that can be viewed and paid online via the provider’s Internet web site, through electronic bill consolidators such as MSFDC, CheckFree and Intuit, and through invited push technology, in addition to the traditional paper format.

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Associates 7%+ Chargeoffs

Associates First Capital reported Tuesday that managed credit card loans slipped from $7,890,300,000 for the first quarter to $7,887,800,000 for the second quarter. Meanwhile 60+ day delinquency inched up to 4.09% for the second quarter compared to 3.90% at the end of the first quater. Credit card chargeoffs were up sharply from 7.07% in the first quarter to 7.63% for the second quarter. Associates is in the midst of acquiring $2.3 billion worth of card receivables from SPS Transaction Services.

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International PKI

Paving the way for trusted and secure electronic commerce across international borders, Compaq Computer Corporation announced Tuesday its enabling role in the first nation-to-nation Public-Key Infrastructure (PKI) cross-certification trial, successfully conducted on June 1 between the governments of Singapore and Canada. This announcement brings customers the choice, power, and freedom of truly global electronic commerce, while further emphasizing Compaq’s vision of a “New World of Computing” Using public-key technology, emerging PKI environments ensure authentication and security for electronic transactions. Today’s announcement marks the first instance of national PKIs interoperating with each other to secure international transactions–in this case, the purchase of a book from a Singapore vendor by Canada’s Deputy Minister of Commerce. With technical interoperability now proven, the interoperability infrastructure can expand to include cross certification with other countries’ PKIs, with the Singapore system providing a robust test bed.

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MBNA Piling On

MBNA  reported yesterday it added 4.2 million accounts since the first of this year and now has $52.7 billion in total managed loans. The nation’s second largest issuer also reported it has signed up 221 new affinity groups thus far in 1998. Overall delinquency on total managed loans was 4.60% as of June 30 while managed loan losses for the first six months of 1998 were 4.30%.

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CardWeb

CardWeb unveiled this morning several new payment card management tools including an online statistical database service and an online marketing intelligence service. CardWeb also pulled-up the curtain on a totally new Web site design, enabling consumers and executives to more easily navigate CardWeb’s exhaustive menu of payment card or credit card informational services. Robert B. McKinley, president of CardWeb and founder of RAM Research Group, made the announcement this morning at the ‘Internet Strategies for Card Issuers’ conference in Washington, DC.. CardWeb’s most significant new payment card management tools include ‘CardData’ and ‘CardWatch’.

‘CardData’ is a Web-based service, updated daily, with current, historical and proprietary statistics of the payment card industry. For example, ‘CardData’ provides quarterly portfolio stats for the nation’s top 300+ issuers. The current stats include daily-posted, second quarter ’98 figures as well as first quarter ’98 figures. Historical data covers quarterly figures for the past five years and annual stats for the past 12 years. ‘CardData’ also provides current and historical data on other management benchmarks such as chargeoffs, delinquencies, pricing and yields.

‘CardWatch’ is a Web-based marketing intelligence service providing card issuers with high quality snapshots of competitor’s card offers and solicitations. ‘CardWatch’ is updated daily and offers a current and historical database, enabling card issuers to view competitor’s marketing campaigns as they are unleashed, as well as conduct historical research. ‘CardWatch’ also offers a current and historical library of print and television ads available for immediate viewing online. The ‘CardWatch’ library expands by 100 print solicitations and about 50 other non-print credit card offers per month.

‘CardWeb’ is offering both services online, via password-protected Web access, and off-line as a CD. CardWeb may be accessed via . ‘CardData’ and ‘CardWatch’ are accessible via http://www.cardweb.com or via and .

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So-So 2nd Quarter

Citibank’s Universal unit added more than one million accounts while Wells Fargo lost about 400,000 accounts during the second quarter. According to second quarter data gathered by CardWeb, and available via ‘CardData’, the second quarter has been anything but spectacular. Early results showed slow growth in receivables and little, if any, growth in cardholder base. Universal reported 2Q receivables of $14.5 billion and 21 million accounts compared to $14.8 billion in receivables and 19.6 million accounts for the first quarter. Portfolios around the $1 billion level were flat for the 2Q.

                         2Q  CARD  PORTFOLIO  UPDATE

ISSUER                  RECV QVOL    ACCTS
Wells $7,026,720,669       $2,679,724,578 5,540,628
Travelers $1,675,788,000       $1,313,682,775 1,155,651
KeyCorp $1,459,478,140       $  599,911,927 1,252,452
Norwest $1,161,850,724       $  542,957,339 1,322,130
Suntrust $1,021,215,000       $  511,015,000 1,081,162
Source: CardData; www.carddata.com

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