Coinstar First Quarter Revenues Rise by 4.8%

WA-based Coinstar reported that first quarter revenues increased by 4.8% to $132.3 million. However, net income dropped 38% compared to 1Q/06 to $2.6 million. At the end of the first quarter, Coinstar had approximately $61.6 million in cumulative net operating loss carryforwards. The Company reported that its coin-to-card, e-payment or e-certificate-enabled base expanded to 8,500 from 6,100 one-year ago. However, POSA terminals dropped from 19,500 for 1Q/06 to 14,000 for the first quarter of 2007. During the first quarter, Coinstar repurchased 120,800 shares of common stock at an average price of $28.94 per share. Management estimates that revenue for the second quarter will range from $130 million to $140 million. For complete details on Coinstar’s first quarter performance visit CardData ([www.carddata.com][1])

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

FMT Names Director Of Global Services

Fraud Management Technologies has appointed Stuart Mackenzie as
Director of Global Services. Mackenzie
will manage strategy, development, and implementation of client
services. He previously managed e-commerce fraud prevention
strategies in GE Money’s Global Fraud Management team and
served as Remote Channel Fraud Strategy and Policy Manager at
Barclays Bank, pioneering anti-phishing solutions. Mackenzie is a former
member of APACS’ E-Banking Fraud Liaison Group and won the
2005 Anti-Fraud Strategy of the Year honor at the UK’s Finance
Sector Technology Awards. FMT is a provider of
E-Application Intelligence and online fraud prevention.

MasterCard PayPass Pilot Logs 40K Transactions

The first two trials of contactless payments, which began in June 2006, has racked-up more than 40,000 transactions to-date and is gearing-up for a national launch in the fourth quarter. The Royal Bank of Scotland Group and MasterCard launched the pilots at RBS’s
headquarters in Edinburgh and at the staff restaurant at one of its
London offices. The RBS headquarter test involves 11 retailers located in the Bank’s flagship site including coffee shops, pharmacy, florist and a hairdressers. The second trial includes some 1,500 staff who
volunteered use their “Maestro/PayPass” debit and “MasterCard/PayPass” credit cards. Feedback from RBS employees has been extremely positive thus far. RBS is now working with MasterCard and the UK card payments industry towards the first phase of the public roll-out in London in the autumn. RBS, NatWest, MINT and Ulster Bank will issue several hundred thousand contactless payment cards, both debit and credit, during the London launch of the roll-out to those customers who live in the roll-out zone. These cards will retain the existing chip and pin and magnetic stripe functionality.

AmEx Travel Lands a Smithsonian Partnership

American Express Travel has partnered with Smithsonian Journeys to offer Smithsonian Journeys’ cultural and educational group trips. When booking with an American Express Charge Card, Cardmembers will receive a gift certificate to Longitude, an on-line travel bookstore. Cardmembers with a Platinum Card or Gold Card will receive a $100 gift certificate when purchasing vacations $3,000 or more and a $50 certificate for vacations under that amount. American Express Green Card members receive a $50 gift certificate for any vacation. Smithsonian Journeys, the travel program of the renowned Smithsonian Institution, is the largest museum-based travel program in the world with more than 250 annual departures to all seven continents.

MasterCard to Launch a Travel Dashboard

MasterCard has teamed with TRX to develop a Web-based business intelligence tool that will enable companies to evaluate, analyze and optimize travel programs. The new “MasterCard Travel Dashboard” will leverage detailed information from MasterCard’s corporate card program and TRX’s advanced travel data reporting tools to provide greater visibility into the performance and compliance of travel programs. The new proprietary tool will enable travel managers to review performance and trends; drill-down on reports to analyze major travel spend categories, including spend-to-vendor agreement reporting; compare spend data with corporate policy to highlight out-of-compliance departments and travelers and benchmark the performance of their programs.

Nomad To Participate In BSA Conference

Nomad processing will participate in the Building Society Annual Conference
(BSA) and offers various solutions ideal to the market. Among these
solutions is a travelers’ check card, corporate gift cards, payroll
cards, and
reloadable chipped funds access cards. The company’s outsourced solution
delivers processing software that integrates with existing IT
infrastructures
allowing organizations to offer alternative or complimentary card products.

Payment Rates Sink But Yield Remains Stable

Monthly payment rates, the amount that cardholders pay on their credit card debt, collapsed in March to its lowest level in nearly eighteen months. While the dip historically has been seasonal, it appears that many borrowers are increasingly pressured by current economic factors. Among credit card-backed securities, payment rates reached nearly 22% last year driven by increased minimum payments and a robust economy. According to FitchRatings, the gross yield on credit card ABS increased 51 basis points in March to 18.21%, and is 30 basis points above year-ago levels. Fitch expects gross yield to remain stable as payment rates decline.

ABS METRICS
YIELD MPR
Apr 06: 18.81% 21.74%
May 06: 17.61% 19.14%
Jun 06: 17.97% 21.00%
Jul 06: 17.63% 20.71%
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Oct 06: 17.58% 19.30%
Nov 06: 17.96% 19.82%
Dec 06: 17.78% 19.32%
Jan 07: 18.28% 19.27%
Feb 07: 17.70% 20.80%
Mar 07: 18.21% 18.76%
Source: FitchRatings

Euronet Introduces Security Solution

Euronet Worldwide has introduced “Euronet
Monitoring Utilities” (EMU), designed to monitor financial
transactions. It is integrated with the corporations’ core processing
engine, “Integrated Transaction Management” (ITM) and is a configurable
tool allowing institutions to customize the level of monitoring
required for most aspects of their transaction processing system.
Monitoring is conducted using interface such as ATMs, the ITM
processing engine, the processing server and their network connection.
If fraud is detected, a break message or email is sent so the proper
measures are taken to address the issue. The Solution also provides
information filtering, user permissions, and task management. Euronet’s
Software Division has 300 client installations in over 60 countries.

GEMALTO 1Q/07

Smart card specialist Gemalto reports that first quarter revenue
declined 7% to 362 million euros due to lower revenue in Mobile
Communication and Public Telephony offset by solid growth on the back of
higher microprocessor card volumes delivered for payment and pay-TV
applications. The Secure Transactions unit which includes Financial
Services and pay-TV rose 7% to 96 million euros. Deliveries of
microprocessor cards were up by 16%, driven by on-going EMV deployment,
primarily in Europe and certain Latin America countries. Average selling
prices decreased due to more intense competition in certain high growth
markets which are migrating to EMV and to a greater share of modules in
total deliveries on the back of rapid development in North Asia. The
contactless payment market confirms its strong potential with initial
launches in North Asia and the United Kingdom, and new deployments in
the USA. Gemalto is currently participating in about 20 mobile
contactless payment pilots throughout the world. For complete details on
Gemalto’s latest performance visit CardData (www.carddata.com).

March Charge-Offs Hit a 14-Month High

Charge-offs, among “prime” credit card-backed securities, resumed its upward path in March hitting a new fourteen month high. Although the figure is only five basis points above January’s peak, it is 126 basis points above the year-ago level. The 60+ day delinquency ratio, which is an indicator of future charge-offs, also rose by three basis points in March to a new high since late 2005. According to FitchRatings, “prime” charge-offs for March were 4.36% compared to 4.13% in the prior month and 3.10% for March 2006. The “prime” 60-plus day delinquency index for March was 2.69%, compared to 2.66% in February. Fitch also reported that “sub-prime” 60+ day late payments decreased by eight basis points in March to 5.27%. “Sub-Prime” charge-offs also decreased 80 bps to 8.73%. Fitch says the recent decreases in sub-prime charge-offs can be attributed to the normalization of the delinquency bubble caused by changes made to the minimum payment calculation per OCC guidance.

ABS PRIME CHARGE-OFFS HISTORICAL
Mar 06: 3.10%
Apr 06: 3.19%
May 06: 3.58%
Jun 06: 3.58%
Jul 06: 3.44%
Aug 06: 3.94%
Sep 06: 3.88%
Oct 06: 3.78%
Nov 06: 3.88%
Dec 06: 4.21%
Jan 07: 4.31%
Feb 07: 4.13%
Mar 07: 4.36%
Source: FitchRatings

Imperial Oil to Accept Wright Express Cards

Wright Express Corporation has signed an acceptance agreement enabling
their customers to use the “Wright Express Fleet Card” at all Imperial Oil
Limited Essos throughout Canada. This gives the card broader acceptance
in addition to the 180,000 North American fuel and maintenance locations
already in the Wright Express network. Imperial Oil is sold coast-to-coast
through a supply network including nearly 2,000 retail outlets. Also, the
company distributes more than 700 products through about 295 commercial
bulk plants and 30 distribution terminals. Wright Express offers payment
processing and information management for approximately 295,000
commercial and government fleets containing 4.3 million vehicles.