UDPay Card More Accessible Through Post

In collaboration with China Post, Beijing Perfect World has launched
the “Post UDpay Card” payment mode, to coincide with the company’s
new “Post UDpay Card”. This allows users living in less
developed areas to purchase the card at local post offices, and other
sales points, giving access to Beijing Perfect World’s games. These
games include “Perfect World,” “Perfect World: International Version,”
“Wulin2” and current CB testing of “True Love Online Game”. “UDpay”
is an online payment service based on China post’s digital mailing system
and can be purchased through national post offices. Perfect World is a
3D online game presented by Beijing Perfect World Technology Co., Ltd.
The company invested more than 30 million RMB into finishing the whole
project over three years.

ADP Extends the VISA Payroll Card Deal

VISA has signed a five-year agreement with ADP Employer Services to exclusively market “VISA Payroll” cards to its corporate partners. ADP serves approximately 550,000 clients. The VISA-branded “ADP Total Pay” card is already issued by a number of VISA member financial institutions. According to VISA estimates, approximately 80 million people in the U.S. lack a bank account or access to a payment card. VISA also estimates this audience receives approximately $1 trillion in annual income and relies heavily on cash for everyday transactions. ADP Employer Services pays 1-in-6 U.S. workers. According to the American Payroll Association, four million paychecks are lost or stolen annually.

MC Q1 REGIONS

MasterCard’s worldwide growth rate in quarterly gross dollar volume increased from 12.3% in 1Q/06 to 16.4% in 1Q/07, however, it was primarily driven by growth in the U.S. which rose from 13.1% to 15.7% during the same period. The other five MasterCard regions slightly slipped except in the Asia/Pacific where GDV growth increased from 6.9% in 1Q/06 to 15.1% in 1Q/07. In the U.S. the uptick was primarily due to a 41% jump in debit program GDV. Worldwide, MasterCard’s debit programs were up 34% in 1Q/07 GDV. Europe, the second largest region for MasterCard, posted a 15% rise in first quarter GDV to $141 billion from 156 million cardholders. Asia-Pacific reported GDV of $69 billion and 160 million cardholders. Latin America, which has 89 million cardholders, had $34 billion in first quarter volume, a 24% gain. Canada experienced a 14% rise in Q1 GDV of $18 billion and 33 million cardholders. The South Asia/Middle East/Africa region posted $9 billion in gross dollar volume, a 47% increase, from 27 million cardholders. As of March 31st, the Company’s customers had issued 835 million MasterCard cards worldwide, an increase of 11% over the same period in 2006. MasterCard now has 25.1 million acceptance locations worldwide. For complete details on MasterCard’s first quarter results, visit CardData (www.carddata.com).

Discover Network Adds Another Card Issuer

MO-based Heartland Bank has become the newest issuer of “Discover Network Cards.” The new card will feature Discover’s new “Perks Everyday” points-based rewards program. In honor of Heartland Bank’s 120th anniversary, cardholders will also receive one entry into the “120-Year Celebration Promotion” with each purchase made with their Heartland Bank Discover Network Card during the remainder of 2007. One lucky winner will win 120,000 “Heartland Discover Network Rewards Points” to be credited to their account. Other Discover network issuers include: Alliance Data, First Bank & Trust, Morgan Beaumont, West Suburban Bancorp, Palm Desert National Bank, HSBC Bank Nevada, affiliates of GE Consumer Finance, and CompuCredit. Discover Card has more than 50 million cardholders and over 4 million merchant and cash access locations in the USA. (CF Library 6/14/06)

Dish in the City Catuity Gift Card Coming

Catuity has been hired by Denver-based Dep Group LLC to support the “Dish in the City” program, a national dining card program to reward consumers for dining at their favorite restaurants. The “Dish” program is a unique marketing concept that combines the power of print advertising with multi-channel loyalty marketing for the nation’s restaurants and will target four key U.S. markets for rollout this year. The company also expects to add a “Dish in the City” branded gift card through Catuity by year-end. The Dep Group provides marketing services to restaurants. Catuity manages more than four million cardholders in loyalty and gift card programs.

28% of Small Merchants Offer Gift Cards

New research shows that gift card penetration among retail stores, mail/telephone orders, hotels and restaurants in the U.S. and Canada has surged from 2% in 2003 to 28% this year. The research, based on merchants with less than $10 million in annual sales, showed that use of closed loop or single purpose gift cards was most prevalent in restaurants. In the U.S. 57% of restaurants offer gift cards, compared to only 13% of retail stores in the same peer group. The study by First Annapolis found that in Canada 29% of the peer group retail stores offered gift cards. About 20% of hotels offered such cards in the U.S., compared to 13% in Canada.

CLOSED LOOP GIFT CARDS
(Merchants less than $10MM in Annual Sales)
U.S. CANADA
Retail 13% 29%
MOTO 25% 9%
Hotels 20% 13%
Restaurants 57% 53%
Source: First Annapolis

Metro Water Implements Online Payment

The Leyte Metropolitan Water District(LMWD) has implemented
an on-line payment system, disallowing management from intervening
in the surcharge or penalty computation process. Approximately
30,000 cubic meters of potable water is delivered daily to the
LMWD service area covering the municipalities of Palo, Tanauan,
Tolosa, Dagami, Tabon-tabon, Sta. Fe, Pastrana, and the city of
Tacloban with 25,708 water concessionaires in the LMWD’s area
of coverage.

Skye Bank Introduces Naira Credit Card

Skye Bank has introduced both a “Classic” and “Premium” credit card
with a naira denomination. The “Classic” Skye Bank credit card is
targeted at the low-income demographic offering benefits derivable
from carrying a debit card. The “Premium” credit card targets a wider
market differentiated by income bracket and credit profile. These
cards provide customers and non-customers of the bank with both
secured and unsecured account options. Some features include interest
free period of up to 30 days, interest rate of 18 per cent per annum on
utilized credit only, flexible limit-based on income of cardholder; free
Internet and mobile banking services and SMS alerts on all transactions.

ATM Association Hosts ATM Conference

The ATM Industry Association will be hosting its 3rd annual
“ATMs In Asia” conference in Beijing. This conference will
focus on preparing China’s ATMs for the millions in additional
transactions expected to be conducted during the Olympic
Games in the Summer of 2008. In doing so, banks will address
issues concerning user-friendliness, security and efficiency. Present
at the conference will be the Bank of China, addressing possible
fraud risks, and Agricultural Bank of China, to discuss the
country’s fast-growing ATM market. Also, Cardtronics ISO,
operator of more than 25,000 ATMs, will address efficient ATM
deployment.

FISV PLUS System to Support CarePayment Card

Fiserv Credit Processing Services’ “PLUS System” has been selected by OR-based Aequitas Capital Management enhance its CarePayment program. CarePayment is designed to help Aequitas’ hospital clients improve net revenue collections by simplifying the growing out of pocket expenses for their patients. Through its CarePayment card, Aequitas is partnering with hospitals nationwide to offer a custom-branded finance program that provides patients the option of paying their medical bills over extended terms with no interest. Aequitas Capital Management is an alternative investment firm providing integrated corporate advisory and commercial finance products and services and has structured and invested more than $1.5 billion in customized financial transactions to the middle market, energy and healthcare sectors. Fiserv provides information management systems and services to the financial and insurance industries. Fiserv reported more than $4.5 billion in total revenue for 2006.

Hypercom First Quarter Revenues Up 6%

Hypercom posted a 6% increase in revenue for the first quarter compared to the year ago quarter despite a significant sales decline in North America. However, gross profit declined 12% for the first quarter compared to 1Q/06 due to the impact of lower margin revenue in Brazil, as well as a reduced volume of higher margin North American product sales. Revenue for the first quarter was $64.8 million, compared to $61.0 million of revenue in the same quarter of 2006, and flat sequentially. During the quarter, the Company announced that its “P4100 PIN Pad” is now “PCI PED” approved and includes a choice of contactless, EMV Smart Card, or magnetic stripe payment, and also includes a touch screen display. Also, Apriva “Class A” certified Hypercom’s “Optimum T4100” IP-enabled payment terminal for use on Apriva’s Intelligent Gateway. Additionally during the first quarter, Hypercom came under pressure from some investors to sell or merge. For complete details on Hypercom’s first quarter results, visit CardData ([www.carddata.com][1]). (CF Library 3/20/07)

HYPERCOM REVENUE HISTORICAL
1Q/05: $50.6 million
2Q/05: $60.2 million
3Q/05: $66.5 million
4Q/05: $68.1 million
1Q/06: $61.0 million
2Q/06: $66.1 million
3Q/06: $56.7 million
4Q/06: $64.8 million
1Q/07: $64.8 million
Source: CardData (www.carddata.com)

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