SIM Slide

Gemplus International said Wednesday results for its second quarter and fiscal year would be lower than previously expected due to a slowdown in GSM subscriber growth and inventory issues at operators. The operating loss for the quarter is expected to be the range of 10-15 million Euro. The company now expects revenue for the second quarter to be approximately 265 million Euro, which would be down 4% from the same quarter a year ago. For the full year, the company expects revenue to be 1,225 to 1,265 million Euro, or 2-5% growth from FY2000 levels with operating profit between 5 and 35 million Euro. Gemplus notes that all its businesses are doing extremely well except for the wireless segment of its Telecommunications division.


MasterCard indicated this week it plans to develop the unbanked rural sectors India by introducing electronic cards for farmers. The MasterCard Asia-Pacific region grew at a 38% annual rate last year. The move in India follows the successful launch of e-cash cards in the Philippines and Malaysia earlier this year. About 8.5% of the transactions in the rural region are conducted by cash. E-cash cards for kisans would be launched soon in collaboration with Public Sector Banks which has the network in rural India.

Project ACTION

Twenty-five organizations, including eight financial institutions, have joined Project ACTION, a program to develop a payment product for Internet transactions utilizing Automated Clearing House (ACH) credits. Project ACTION — ACH Credit Transactions Initiated Online — is an independent membership program within NACHA — The Electronic Payments Association.

“Interest in Project ACTION has been strong among financial services organizations,” said Elliott C. McEntee, President and Chief Executive Officer of NACHA. “Now is the time for other organizations interested in Project ACTION to get in on the ground floor.”

Members of Project ACTION include: Alabama ACH Association, Alltel Corporation, Bank One, BB&T Corporation, BCE Emergis, CheckFree Corporation, Citibank, Corillian Corp., Fidelity Investments, FirstWebBancorp, Fort Knox National Company, InteliData Technologies Corp., iBill, LML Payment Systems, Mid-America Payment Exchange, Network 1 Financial, Royal Bank of Canada, Southwest Corporate Federal Credit Union, T. RowePrice, U.S. Postal Service, VeriSign Inc., VeriStar Corporation, Wachovia Bank, and Wells Fargo Bank.

Under the ACTION payment model, a buyer (a consumer or business) would initiate a payment to a seller via its own financial institution, rather than authorizing the seller to debit its account. This feature enhances security of payments while reducing many of the risks. ACTION is envisioned to be used for consumer-to-business, business-to-business, and electronic bill payments initiated on the Internet.

“An advantage of the ACH Network is the ability to process credit payments, in which funds are pushed to sellers or other payment recipients,” said McEntee. “Currently, other payment methods require account information to be provided to sellers, that then attempt to authenticate the buyer and pull funds from buyers’ accounts.”

The next business meeting of Project ACTION members will be held on June 20-21 in Chicago. Members will develop the product design, technology requirements, and business plans, such as revenue models. Membership is open to all payments industry stakeholders. Membership dues will increase on July 1. For membership information, visit the Project ACTION web site at, or contact Julie Hedlund, Senior Director of Electronic Commerce, NACHA, at 703-561-3915 or [email protected]

About NACHA — The Electronic Payments Association

NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its six industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill payment and presentment (EBPP), financial electronic data interchange (EDI), international payments, electronic checks, and electronic benefits transfer (EBT). Visit NACHA on the Internet at .

AmEx Wordadia

American Express and two other firms have teamed to setup a new company to provide businesses with business intranets through browser accessed hosted portals. Workadia will focus initially on U.S. companies in need of a complete business intranet service. Many of Workadia’s initial target customers will be middle market companies or companies that want to outsource business activities. The portals will let companies select hosted and in-house software applications, content and services and then integrate them into a single desktop view. The initial funding for the company was $16.7 million.

Fraud Screen Updated

CyberSource said yesterday it has beefed up its ‘Internet Fraud Screen enhanced by VISA’. Improvements of approximately 25% in the fraud detection and identity verification capabilities were achieved by refining the performed screening tests, and relative weights, based on the evaluation of fraud trends experienced by CyberSource customers. The refinements not only improve the predictiveness and manageability of the system, they also help reduce false positive scoring results. In addition to the refined tests and weights, CyberSource added a new risk profile code to improve customer service efficiency and a business’ ability to convert more valid orders. The new code identifies a gift order, where there is a bill-to and ship-to address mis-match by country or state, which often represents a higher probability of fraud.

Diebold & Uni-Marts

Diebold, Incorporated, a global leader in providing integrated self-service solutions, today announced it has teamed with Uni-Marts, Inc. to place 240 CashSource Plus 200 cash dispensers under its automated teller machine Franchise Program.

Under the franchise agreement, Diebold will install and operate ATMs in various Uni-Mart convenience stores and discount tobacco outlets located throughout Pennsylvania, Delaware, Maryland, New York and Virginia. Installation is estimated to be complete in June 2001.

“Diebold’s ATM placement program fits perfectly with our initiative to provide increased convenience and service to our customers,” said Henry D. Sahakian, chairman and CEO of Uni-Marts. “Our customers will appreciate the ability to access cash on-site at an expanded number of Uni-Mart locations, and we will benefit from working with one proven supplier.”

![][1] The CSP 200 with the Provisor option permits convenience store staff to load and recycle cash without accessing the chest of the unit by depositing money directly into the ATM by way of a bill acceptor. This provides Uni- Marts with a cost-effective and simple means to replenish the cash while minimizing theft and security issues.

“Retail outlets like Uni-Marts recognize the fact that Diebold has a myriad of turnkey delivery solutions, which include ATMs, self-service payment, security products and service and support,” said Bartholomew J. Frazzitta, vice president and general manager of Diebold’s Physical Security and Retail Group. “Our solutions are designed specifically to help build customer traffic and increase revenue within their respective businesses.”

Uni-Marts, Inc. owns and operates 300 convenience stores and Choice Cigarette Discount Outlets in the Mid-Atlantic region, with a majority of its locations in Pennsylvania. Uni-Marts reported revenues of $348.7 million in fiscal year 2000, and has over 2,700 full and part-time employees. Uni-Marts stock is publicly traded on the American Stock Exchange under the symbol “UNI.” For more information, visit the company’s Web site at .

Diebold, Incorporated is a global leader in providing integrated self- service delivery systems and services. Diebold employs more than 10,000 associates with representation in more than 80 countries worldwide and headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at .

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

Monoline Selling

Top executives at three top credit card monolines have cashed in nearly $200 million in stock over the past two months. According to published reports, eight insiders at Capital One sold or planned to unload a total of 2.1 million shares, valued at $136 million. Since the first of this year, Capital One’s CEO and COO have unloaded a combined total of $240 million in stock. According to the Wall Street Journal, nine insiders at MBNA dumped nearly $57 million in shares over the past sixty days. Providian executives cashed in $1.2 million stock during April and May, while one executive sold off about $13 million worth in March. Officials at all three companies say the insider selling is linked to personal objectives and not connected to the overall weakening in the credit card market this year.

e-Port Ships

USA Technologies, Inc. announced it is shipping its e-Port and associated network services to customers, Original Equipment Manufacturers, Authorized Resellers and Strategic Partners. This e-Port solution, currently targeted to the vending industry, is a feature-rich, value-priced intelligent vending technology,” said George R. Jensen, Chairman and CEO, USA Technologies, Inc. “We believe it is the most complete solution of its type, transforming vending machines into intelligent, networked storefronts, capable of conducting affordable micro credit card transactions, automatically forwarding operational data and funds to machine owners.”

The system currently being shipped includes credit card capability and remote auditing capability via USA’s turnkey network and financial services. The network enables a patented method of batch credit card authorization and settlement, making it affordable for USA’s customers to conduct credit card transactions as low as $1.00. e-Port can be built into new machines or retrofitted to a wide variety of existing vending machines, and is being sold through a network of direct sales staff, Authorized Resellers, OEMs and Strategic Partners. “e-Port is precipitating a whole new way of doing business in the vending industry,” said Jensen. “Customers are now installing e-Ports, connecting to USA’s network, and offering consumers the option of making purchases with credit cards nationwide.” Examples of current and upcoming e-Port installations include select locations of Six Flags, National and Alamo Rent a Car, Wal-Mart, and Ford Motor Company. Items in these locations that will be vended utilizing e-Port technology range from beverages to prepared meals to cellular telephones and even industrial parts.

With its ever-expanding family of e-Port products and services, USA Technologies is rapidly emerging as a leader in cashless microtransaction products and services. USA Technologies has conducted many millions of cashless microtransactions for customers in the mainland US, Alaska, Hawaii, Canada and Puerto Rico. Earlier this year USA Technologies formed a strategic alliance with Marconi Online Systems, a division of Marconi PLC, to bring together Marconi Online’s Intelligent Vending service with USA Technologies’ cashless payment and interactive multimedia capabilities delivered through e-Port. Last year, Marconi Online became the exclusive provider of intelligent vending technology to the Coca-Cola Company. The e-Port product line can be embedded into vending machines, gas pumps, office equipment and almost any kind of point-of-sale terminal. This scaleable technology and associated network and financial services enables the conversion of unattended points of sale into intelligent, networked “store fronts”, which could be connected via the Internet or other means. It is capable of communicating operational data to operators, conducting cashless microtransactions and could deliver advertising and information such as news, sports and weather to consumers while making routine purchases everywhere.

About USA Technologies:

USA Technologies is recognized as a leader in cashless microtransactions and interactive media technology and associated financial services. USA Technologies provides credit card activated and other cashless systems, allowing end users, ranging from consumers to business professionals, to communicate, conduct business or make ordinary commerce transactions, outside of the home or workplace. USA Technologies is an IBM (NYSE: IBM) Business Partner and an inaugural member of the Sprint (NYSE: FON) Enabling Application Service Provider Program for e-commerce. It has also established relationships with a number of global IT, multimedia, and telecommunications companies including Marconi Online Systems, RadiSys Corporation, DoubleClick Inc., and Xerox Corporation. Visit the USA Technologies home page at [][1].


Diebold Board

Diebold, Incorporated elected to its Board of Directors Eric J. Roorda, president of Procomp Amazonia Industria Eletronica, S.A., a subsidiary of Diebold. Roorda and three of his colleagues founded Procomp in 1985 where he served as president. He has remained president since 1999 when Diebold acquired the company.

Procomp is the leading company in the banking automation market in Brazil and also plays an important role in the markets of retail automation and electoral automation. The company employs nearly 3,300 employees and operates more than 150 service locations throughout Brazil.

Roorda has more than 20 years experience in information technology, focusing mainly on bank automation. He has been involved in banking automation since the inception of the ATM in Brazil and has helped shape its direction. Prior to founding Procomp, Roorda held Information technology positions at INPE, Celepar, Universidade Federal do Parana and SID Informatica.

Roorda is a native of Brazil, and currently resides in Sao Paulo. In adding Roorda, the Board increased its number of directors from 10 to 11.

Diebold, Incorporated is a global leader in providing integrated self- service delivery systems and services. Diebold employs more than 10,000 associates with representation in more than 80 countries worldwide and headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [][1] .


Verix TCP/IP

VeriFone unveiled the Verix TCP/IP Library, which enables VeriFone terminals to access the Internet or communicate to a host via standard TCP/IP protocol.

This direct connection via TCP/IP allows merchants to offer customers a variety of Internet-driven e-services via their point-of-sale terminals, such as online ordering and fulfillment. These applications can provide new revenue streams and improved customer loyalty for merchants.

“VeriFone’s TCP/IP Library is another step in our effort to transform the POS into a powerful business tool,” said Eric Lecesne, general manager, VeriFone Technology and Product Operation. “Our unique Verix operating environment offers a multi-application architecture supporting payment and value-added applications on the same terminal. Developers can simply enable TCP/IP communications in their applications through the use of an open application programming interface (API).”

Furthermore, having a direct connection to the Internet, using open TCP/IP standards, eliminates the need to go through a maze of proprietary gateways. Instead, the software library provides flexible TCP/IP communications using the payment terminal’s telco port, RS-232 port, or radio modem. This lets users take advantage of faster, more economical options to transfer data via a variety of communication alternatives, such as high-speed Very Small Aperture Terminal (VSAT) satellite transmission or other wireless connectivity options.

“Businesses everywhere are moving to embrace IP-based networks for both communications and commerce,” said Kenneth Cohen, assistant vice president for strategic marketing at Hughes Network Systems, a global broadband networks leader and VSAT pioneer. “Adding TCP/IP support to its terminals is a sign that VeriFone understands the market’s demands, and it fits HNS’ vision for the future of business networks.”

“The Verix TCP/IP Library allows merchants to use industry-standard TCP/IP to access service providers, whether they are hosted across the street or around the globe, without incurring substantial communications costs,” Lecesne added. “This has enormous potential for merchants running multiple value-added applications at the POS.”

Concord Signs Citizens

Concord EFS, Inc., a leading processor to the financial services industry through its Network Services unit, announced that Citizens Financial Group, Inc. has signed a long-term contract for processing services. Citizens, a $30.9 billion financial services company headquartered in Providence, Rhode Island, selected Concord for a broad range of processing services across its four-state region. In addition to driving Citizens’ 820 ATMs, Concord will also provide online debit card authorization, signature debit card processing, and gateway access to debit networks.

![][1] “Convenience banking is central to our consumer business, so we wanted a processing partner with quality products and service, plus the vision to help us take our debit transaction services in new directions,” said Mark Formica, Vice Chairman, Citizens Financial Group, Inc. “We liked the fact that Concord is committed to the financial services industry, and to working collaboratively with financial institutions to expand applications for ATMs and debit cards.”

“We’re dedicated to working closely with Citizens and other financial institutions to provide the products they need to deliver secure debit services to their customers,” said Edward A. Labry III, Concord president. “Customer service is the cornerstone of Citizens’ fast-growing business and it sets high standards for its partners, so we’re especially proud that it has shown such confidence in our services.”

About Citizens Financial Group

Citizens Financial Group, Inc. is a $30.9 billion financial services company headquartered in Providence, RI. It operates as Citizens Bank in Connecticut, Massachusetts, New Hampshire and Rhode Island. Citizens is wholly owned by The Royal Bank of Scotland Group plc. With more than 330 branches and 800 ATMs in Connecticut, Massachusetts, New Hampshire, and Rhode Island, Citizens is the second largest commercial bank holding company in New England.

About Concord EFS, Inc.

Concord is a leading, vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, and other independent retailers. Concord’s primary activities include Network Services, providing ATM driving, online and signature debit card processing, and network access to the financial services industry under the STAR(SM), MAC(R), and Cash Station(R) brands; and Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT) processing services to selected retail segments. Concord news releases, links to SEC filings, and other information are available on its corporate web site at [][2].

[1]: /graphic/citizens/logo.gif