Costco Deploys More Cardtronics ATMs

Warehouse club retailer Costco has extended its ATM placement agreement with TX-based Cardtronics. With this expansion Cardtronics ATMs will now
be available in 97% of the over 400 Costco warehouse locations in the
USA. Cardtronics, the world’s largest non-bank ATM operator, has enjoyed
a long-standing ATM placement agreement with Costco which currently
operates 550 warehouses.

NFC ACADEMY

The NFC Academy is taking shape with its first conference in Abu Dhabi and the formation of its Advisory Board. The high-end technology congress brings together researchers, pioneer developers and advanced practitioners to educate the market and foster the adoption of NFC technology including contactless applications such as ticketing and mobile payments. The Advisory Board includes Paul Korczak; Assistant Chief Officer at MetroCard New York City Transit; Sertac Ozinal; CEO at BKM Interbank Card Center (Turkey); Tinboat Arslanouk; Director of Business Development at Du – Emirates Integrated Telecommunications Company (United Arab Emirates); Koichi Tagawa; NFC Forum Chairman and General Manager of Global Standards and Industry Relations Department at Sony (Japan); Michael Hegenbarth; Senior Director of Standardization and Consulting at Bundesdruckerei (Germany); Remy de Tonnac; CEO at Inside Contactless (France); Kurt Schmid; CEO at Nexperts (Austria); and Carlo Maria Medaglia Professor at the University of Rome “Sapienza”
(Italy). The next NFC Academy conferences will be held in Paris on May 29 at the Hyatt Regency Paris-Charles de Gaulle, and Milan on November 4-5 at the Milanofiori Congress Center.

The NFC Academy Starts to Take Shape

The NFC Academy is taking shape with its first conference in the UAE with the formation of its Advisory Board. The high-end technology congress brings together researchers, pioneer developers and advanced practitioners to educate the market and foster the adoption of NFC technology including contactless applications ­such as ticketing and mobile payments. The Advisory Board includes Paul Korczak,­ Assistant Chief Officer at MetroCard New York City Transit; Sertac Özinal,­ CEO at BKM Interbank Card Center (Turkey); Tinboat Arslanouk,­ Director of Business Development at Du – Emirates Integrated Telecommunications Company (United Arab Emirates); Koichi Tagawa,­ NFC Forum Chairman and General Manager of Global Standards and Industry Relations Department at Sony (Japan); Michael Hegenbarth,­ Senior Director of Standardization and Consulting at Bundesdruckerei (Germany); Remy de Tonnac,­ CEO at Inside Contactless (France); Kurt Schmid,­ CEO at Nexperts (Austria); and Carlo Maria Medaglia ­ Professor at the University of Rome “Sapienza” (Italy). The next NFC Academy conferences will be held in Paris on May 29 at the Hyatt Regency Paris-Charles de Gaulle, and Milan on November 4-5 at the Milanofiori Congress Center.

DECEMBER LEI

The Conference Board Leading Economic Index decreased by 0.6% in December to 93.8
The LEI has been declining for a year and a half and is now9.9% below its most recent peak level in June 2007. Meanwhile,
The Conference Board Coincident Economic Index (CEI) for the U.K., a
measure of current economic activity, rose 0.1% in December following a 0.1 percent decline in November
and no change in October. The CEI now stands at 103.9.
The Conference Board LEI for the U.K. aggregates seven economic
indicators that measure activity in the U.K., each of which has proven
accurate on its own. The Conference Board Leading Economic Index for the Euro Area was
launched in January 2009. This index aggregates eight economic
indicators that measure activity in the Euro Area as a whole (the bloc
of countries that now constitute the Euro Area, defined by the common
currency zone) rather than indicators of individual member countries.

UATP.COM

Universal Air Travel Plan has launched its re-designed public web site:
uatp.com. The new site focuses on UATP’s core corporate charge card
program, as well as UATP’s new and successful business lines including:
alternate forms of payment processing; USS, UATP’s settlement service
for low-cost carriers, travel
agencies and other merchants; prepaid cards and gift cards and travel
protection plans – insurance program for the travel industry
The new design features vastly improved navigability, enhanced internal
search engine, upgraded events and press section as well as improved
UATP information for Issuers, Merchants and corporate customers alike.
New features to the site include information available in several
micro-sites in Chinese, French, German, Japanese Portuguese and Spanish.
Additional micro-sites will be added as UATP continues to expand its
international reach. UATP had a record year in 2008 with approximately
US$12 billion in total
charge volume.

LEI DROPS 4.3%

The Conference Board Leading Economic
Index (LEI) decreased 4.3% and The Conference Board
Coincident Economic Index (CEI) decreased 1.4% in December. Four of the ten components that make up the leading
economic index increased in December. The positive contributors to the
index include real money supply, stock prices, interest rate spread, and the
(inverted) business failures. The negative contributors include the index of
overtime worked, the six month growth rate of labor productivity, the
new orders for machinery and construction component, the Tankan
business conditions survey, dwelling units started, and real operating
profits. Industrial production registered a record drop this month. The number of employed persons and
the real retail, wholesale, and manufacturing sales component also made
negative contributions to the index. The six-month growth rate of the
CEI fell to -3.9%(a -7.6% annual rate), also its lowest
level since 1974. Moreover, the weaknesses among the coincident
indicators continued to be very widespread. At the same time, real GDP
continued its downtrend through the third quarter of 2008 – it declined
at a 1.8% annual rate. This is the first time since 2001 that
real GDP has declined in two consecutive quarters. The LEI and the CEI have been falling for more than a year now,
and their rate of decline continued to accelerate in the second half of
2008. In addition, the weaknesses in both composite indexes have been
very widespread. The coincident index now
stands at 99.0 (2004=100).

Promontory Ankles a Card Industry Veteran

Washington DC-based financial services firm Promontory Financial Group
has appointed Michael Patriarca, previously with Visa and Wells Fargo,
as Managing Director.
Patriarca is part of a unique team of professionals
that includes former senior financial services regulators and
executives. He served as Executive Vice President for Risk
Management and Audit at Visa International, where he was responsible for
audit and risk management globally, and for interactions with the audit
committee and U.S. regulators. From 1992 to 1999, he was an executive
vice president at Wells Fargo Bank, where he directed the audit,
security, compliance and risk management functions. He also served as
president of the bank’s insurance distribution subsidiary. He holds a
bachelor’s degree in history from the University of
California-Davis, a juris doctor from Santa Clara University Law School,
and a master’s degree in laws from George Washington University Law
School. Promontory provides strategic advice and assistance to many
of the world’s largest financial companies, with a particular focus on
due diligence and developing practical solutions to address regulatory,
risk, compliance, capital and liquidity issues.

NCR’s Fourth Quarter Net Income Slides 37%

NCR reported that fourth quarter revenue declined 7% to $1.42 billion, compared to 4Q/07. Net income declined 37% to $56 million.
Revenues declined 8% in the Americas region, primarily due to lower sales to customers in the retail and hospitality industries. In the EMEA region, the revenue decline of 8% was attributable to the negative effect of foreign currency translation. Revenues fell 1% in the Asia-Pacific-Japan region. During the quarter NCR completed the largest annual new product introduction schedule in the company’s history. Among new products is “APTRA Vision,” a next-generation management-decision and support system. Hanmi Bank, the largest Korean–American bank in the U.S., introduced “APTRA” software and hosted services. Also, Silvergreens Restaurant became the first to deploy NCR’s two-sided thermal printing technology. NCR expects full-year 2009 revenues to be in the range of 2% to 6% lower compared with 2008. For complete details on NCR’s fourth quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

International Drives Visa Q4 Profit Up 35%

Visa reported that fourth calender quarter net income increased 35% to $574 million and net operating revenue rose 17% to $1.7 billion, compared to the same quarter in 2007. However, global transaction growth
for the quarter ended December 31st slowed to an annual rate of 8%,
compared to 11% in the prior quarter and 13% in the year ago quarter. For the fourth calendar quarter there were 9.8 billion transactions processed via VisaNet. Service revenues rose 8% in the quarter to $793 million. Visa also released third calendar quarter performance data which showed that payments volume grew 12% over the prior year to $701 billion; total volume, inclusive of cash volume was $1.1 trillion, was up 16%; total cards carrying the Visa brands rose 10% worldwide over the prior year to 1.7 billion; and total payment transactions increased by 13% over the prior year to 14.5 billion. In the U.S. market, gross dollar volume increased 7% to $524 billion; purchase dollar volume rose 9% to $421 billion; cash dollar volume increased 2% to $103 billion; the number of accounts gained 9% to 478 million; and the number of cards-in-force rose 2% to 654 million, compared to the same quarter in 2007. Visa projects that net revenue growth over the next twelve months will be at the lower end of the 11% to 15% range, due to the current economic environment in the U.S. and around the globe. Visa noted that
annual net revenue growth may be somewhat challenged in 2010 if the
current economic environment in the U.S. and around the globe persists beyond 2009. For complete details on Visa’s latest performance visit CardData (www.carddata.com).

VISA-NET TRANSACTIONS (millions)
Dec 31, 2008 9,797
Sep 30, 2008 9,590
Jun 30, 2008 9,473
Mar 31, 2008 8,800
Dec 31, 2007 9,094
Sep 30, 2007 8,645
Jun 30, 2007 8,411
Mar 31, 2007 7,645
Dec 31, 2006 8,018
Note: Visa, Visa Electron, Interlink and PLUS
cards processed on Visa’s networks.
Source: CardData (www.carddata.com)

MICROREAD NFC

INSIDE Contactless will celebrate MicroRead series of successes and the company’s achievements in the NFC industry
at the Mobile World Congress. INSIDE’s third-generation MicroRead RF chip, which was introduced on
February 6, 2008, provides the broadest range of Near Field
Communication (NFC) options that enable numerous new contactless
applications. INSIDE and its MicroRead chip achieved several significant milestones in
the past year. The include: INSIDE and Sagem Wireless established a partnership to integrate
MicroRead and its associated software stack into Sagem’s new NFC handset
platform; INSIDE’s MicroRead chip was included in most of the NFC handsets
used by the Pay-Buy-Mobile operators in Australia, France, Ireland,
Korea, Japan, Malaysia, Norway, the Philippines, Singapore, Taiwan,
Turkey and the U.S.; INSIDE became a Sponsor member of the NFC Forum, and joined its
board of directors; NSIDE’s MicroRead NFC chip was selected as the winner of the GSM
Association’s 2008 Mobile Innovation Global Award for Most Innovative
Device-Centric Technology; INSIDE and FIME teamed to ensure NFC interoperability and develop a
comprehensive process, support and service portfolio for testing and
certifying NFC mobile handsets and Nokia Growth Ventures, Motorola Ventures and Samsung
Ventures America each participated in INSIDE’s latest round of funding.

MOVERSA U-SAM

Moversa plans to introduce a new “Universal Secure Access Module” that manages contactless smart card applications, regardless of protocols and operating systems, in NFC-enabled mobile devices. The new “U-SAM” supports two of the most widely installed contactless smart card technologies, NXP’s “MIFARE” and Sony’s “FeliCa” systems, as well as a number of other contactless operating systems and applications. The new chip will enable mobile device manufacturers to design products which are interoperable with existing contactless infrastructures. The “U-SAM” will be available in both embedded and SIM form factors. Built-in software from Moversa enables seamless switching amongst the different contactless technologies. It also supports standardized communication interfaces such as “SPI,” “ISO7816,” “UART” and “SWP” (ETSI compliant).
The “U-SAM” runs on 32-bit architecture with a high density embedded non-volatile memory. To address the highest security requirements for contactless transactions, the chip supports “DES/3DES,” “AES,” “RSA,” “ECC” and its hardware is targeted to receive “Common Criteria EAL 5+” and “EMVCo” certification. Moversa is a joint venture of NXP and Sony, created in November 2007.

CyberSource 4Q/08 Revenue Soars by 37%

CyberSource posted a 37% increase in fourth quarter revenue of $62.3
million. During the quarter the Company processed a record $28 billion
in transactions and added a record 27,700 new customers. Net income for
the quarter was $10.0 million, compared to net income of $1.2 million
for 4Q/07. During the fourth quarter, the Company processed a record 547
million billable transactions, a 31% increase over the same period the
previous year, and increased its installed base to 253,000 active
customers. CyberSource’s European operations processed a record 127.4
million transactions in the fourth quarter, an increase of 72% over
4Q/07. Global acquiring revenue rose 37% for the quarter. Also,
CyberSource signed up 450 new ISO and Affiliate resellers. For the first
quarter the Company expects total revenue to be approximately $60.0
million and expects to process between 520 to 525 million billable
transactions. For complete details on CyberSource’s latest performance
visit CardData ([www.carddata.com](http://www.carddata.com)).