New ICMA Members

The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.”Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.  With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.


The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.” Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.


Athens-based Alpha Bank has completed the implementation of
CardinalCommerce’s “Payment Authentication Platform” software for its card
issuing and transaction acquiring business. The implementation was
completed in connection with Alpha Bank’s adoption of the “Verified by
VISA” online authentication standards. Alpha Bank has 2.6 million
customers, 1.5 million active card accounts, over 70,000 merchants, and
30,000 POS terminals. Cardinal and several partners, including Delta
Singular, the largest VISA and MasterCard processor in southeastern Europe,
WorldWide Trust and Safe3w, a provider of strong authentication products,
recently formed a consortium to market online secure payment solutions in
Europe. CardinalCommerce and Delta Singular plan to activate MasterCard
“SecureCode” in the near future for Alpha Bank.


VeriFone has signed four European channel partners including EL-ME Ag in
Germany, Necomplus in Spain, Smartel SpA in Italy, and VIDRA info in
Yugoslavia.VeriFone has more than 30 existing partners that make up the
company’s extensive channel to market in the Europe, Middle East and Africa
region. EL-ME Ag specializes in the development, production and
distribution of electronic systems for the German market. SMARTEL SpA is
dedicated to the design and deployment of card, payment and loyalty systems
as well as the support and management of POS-terminal networks and has more
than 280,000 terminals installed throughout the country. Necomplus has
nearly 10 years of experience in serving the merchant and acquirer
community in Spai offering software solutions for electronic payment
including multi-application capability at the Point-of-Sale, remote
diagnostics and management tools, and innovative loyalty systems. VIDRA
Info, a wholly owned subsidiary of Arius, is an IBM Business Partner
serving more than ten of Yugoslavia’s leading banks and some of the largest
public organizations in the country, and has recently formed a joint
venture with Komercijalna Banka and Euronet to set up and run a national
processing centre for POS and ATM transactions.


Belgrade-based VIDRA Info, a wholly owned subsidiary of the Arius Group
has signed a deal to become VeriFone’s channel partner in Yugoslavia. The
first contract from the partnership resulted in the first shipment of 1,000
“Omni 3750” terminals to the Komercijalna Bank of Yugoslavia. The “Omni
3750” has proved to be the fastest selling model in VeriFone’s history
reaching a milestone of 70,000 terminals shipped in the eight months since
its launch in January of this year. VIDRA info’s parent company, Arius
designs and produces software for the implementation of specific
information systems and has recently formed a joint venture with
Komercijalna Banka and Euronet to set up and run a processing center for
POS and ATM transactions in Yugoslavia. Komercijalna banka is a Europay
principal member, a VISA associate member, an exclusive American Express
agent and YUBA card issuer.


John M. Lopes, Chief Executive Officer of
WebEngine Corporation is
pleased to announce that the Corporation has been invited to make a
presentation to the Governor of the National Bank of Yugoslavia and the Board
of Directors of P&P Banka, Belgrade for a complete re-development of the
bank’s existing technical infrastructure and sixteen of its branches located
through out Yugoslavia. WebEngine is the only company invited to present a
proposal to the bank. It is scheduled that WebEngine will present its multi-
faceted proposal over the course of this coming week. The WebEngine proposal
is valued at US$5 million. “Pending acceptance of the proposal, this will mark
the first step in WebEngine’s strategy to market its products and services to
the Eastern European financial services sector,” remarked John M. Lopes,
President & CEO, WebEngine.

The current proposal involves developing Internet banking capabilities,
replacing 300 work stations with state of the art hardware and software,
creating a new Virtual Private Network and Local Access Network for switching
secure transactions for more than 500 automated teller machines (ATMs) as well
as supplying tools and applications for treasury monitoring and securities
trading. WebEngine, in conjunction with P&P Bank, will also pilot a project of
selected bank merchants for a Point of Sale (POS), debit card, credit card,
and loyalty card program to 5,000 of P&P Bank’s more than 20,000 merchants.
“These infrastructure upgrades are necessary for both the bank and its
merchants to provide value-added services to consumers and to facilitate the
evolution of both merchant banking and retail consumer deposits,” commented
Dr. Peter Lukesch, director of P&P Bank and WebEngine.

About WebEngine:

Publicly-listed on the CDNX (YWE), WebEngine Corporation is a financial
transaction facilitator. The Company develops and markets sophisticated
solutions and provides advisory services to enable its clients to integrate
leading edge processing and security capabilities into their operations. Its
range of product offerings includes secure banking system infrastructure
development, credit card processing, clearing and settlement.

About P&P Bank:

Headquartered in Belgrade and with branches located throughout
Yugoslavia, Prva Preduzetnicka Banka A.D., is focused on serving small and mid-
sized companies. The Bank was established in 1992 to encourage the development
of private entrepreneurship in Yugoslavia and is focused on delivering
innovative financial services to its clients. P&P Bank has more than 13,000
depositors and in excess of 23,000 active accounts. (The Bank has assets of
approximately 3.4 billion dinars (US$51 million), the bulk of which (45%) is
held in cash.

FDC 2Q/01

First Data Corp. reported this morning that operating margins across its Payment Services, Merchant Services and Card Issuing Services units, exceeded 20% for the second quarter. Card Issuing Services posted operating profits of $85 million, an increase of 5%, while revenue of $376 million was relatively flat. During 2Q/01 FDC completed the acquisition of PaySys International. Payment Services reported that revenue was up 18% to $668 million and profits up 22% to $192 million. Worldwide Western Union money transfer transactions increased 23% to 26.3 million. International money transfer transactions increased 45% year over year. Merchant Services had revenue of $525 million, a 20% boost compared to the same period last year. Merchant acquiring volumes and transactions both grew 10% for the quarter. The TeleCheck business handled more than 16.9 million ECA transactions. FDC’s eONE Global business, formed last fall, reported $20 million in revenue for the second quarter, primarily from its government payments business, now known as govONE Solutions. For complete details on FDC’s second quarter performance visit CardData ([][1]).



Western Union Financial Services,
Inc, a subsidiary of First Data Corp. announced the launch
of Western Union Money Transfer services to Yugoslavia. For the first
time, Serbian emigres throughout the world will be able to send money home to
loved ones using Western Union’s safe, rapid and reliable services. By the
end of 2001, more than 300 agent locations in Serbia and Montenegro will be
equipped to receive and pay out money transfer transactions.

The recent election of President Vojislav Kostunica signaled the end of
U.S. sanctions in Yugoslavia and made possible Western Union’s entrance into
this emerging market. Since that time, demand for money transfer services,
from Serbians living outside Yugoslavia, has continued to increase
dramatically. Western Union’s swift entry into Yugoslavia makes it one of the
first American companies to do business in the economically devastated

“Serbians currently living and working outside of Yugoslavia are looking
for ways to improve the lives of their friends and relatives in need and to
help rebuild our country,” said Father Majstorovic, Dean of the Saint Sava’s
Serbian Orthodox Cathedral in Manhattan. “Through the Western Union Money
Transfer service, they will now be able to send money to their loved ones
quickly and safely. This will not only help families in need, but I believe
it will also greatly stimulate small business growth and influx of much needed
capital to Yugoslavia.”

Under the terms of the three year contract, Western Union will provide
money transfer services through its agent, EKI Transfer and through several
Yugoslavian banks, acting as EKI Transfer subagents, including Jugobanka,
Bojvodjanska and Atlas Bank. Western Union plans to expand its agent
locations to include other banks and institutions throughout the country. As
the service is launched, money transfer services will be immediately available
in 30 locations, in several cities, throughout Serbia and Montenegro. Funds
may be received in Deutsche marks, dinars and, in selected locations, U.S.

“It has been estimated that more than three million Serbians are currently
living outside of their country. While these expatriates have become proud
members of their new communities, they remain very loyal to their families
back home and seek the safest most reliable means of sending them money,” says
Alan Silberstein, president and CEO, Western Union Financial Services.
“Western Union is the first commercial money transfer provider to offer a
service Serbians can rely on to meet the needs of their communities.”

Western Union Financial Services, Inc. is a worldwide leader in consumer
money transfer services. Consumers can quickly, safely and reliably transfer
money at approximately 104,000 agent locations in more than 185 countries and
territories using the Western Union and Orlandi Valuta money transfer
networks. Famous for its pioneering telegraph service, the original Western
Union dates back to 1851 and introduced electronic money transfer service in
1871. Western Union is celebrating its 150th anniversary in 2001. For more
information, please visit the company’s Web site at

First Data Corp. powers the global economy. Serving nearly 2.5 million
merchant locations, more than 1,400 card issuers and millions of consumers,
First Data makes it easier, faster and more secure for people and businesses
to buy goods and services, using virtually any form of payment credit, debit,
stored-value card or check at the point-of-sale, over the Internet or by money
transfer. For more information, please visit the company’s Web site at

Croatia Proton

Proton World and Croatia’s MBU signed agreements last week to make MBU a Proton licensee for Croatia. MBU is a consortium of 27 Croatian banks that manages and operates a network of ATMs and POS terminals. Under the agreement, MBU will start replacing existing POS terminals in February with new Java-based ‘C-ZAM/SMASH’ multi-application terminals from Banksys. MBU will begin to replace mag stripe cards with smart cards later this year.

Hypercom – Eurobank Deal

Eurobank confirmed it has contracted with Hypercom for 2,000 Hypercom ‘T7P’ card payment terminals. to Eurobank. This week’s agreement increases the total number of Hypercom card payment systems ordered by the Greek bank, during the last two years, to 6,000. Under terms of this week’s agreement Eurobank named Hypercom its electronic payments vendor-of-choice. Hypercom’s Greek partner is Sofianos Hellas.


Ukraine’s ‘PrivatBank’ announced Wednesday that Hypercom will provide end-to-end solutions for their precessing network. The agreement includes 30 ‘Integrated Enterprise Networking’ nodes and more than 1000 ‘T7P’ POS terminals. One Hypercom ‘IEN 6000’ network controller will be installed at the bank’s central computer centre in Dnepropetrovsk, Ukraine with smaller IEN 2500 models to be installed at 16 major regional bank branches throughout the Ukraine.

Hypercom Terminals to Turkey

Hypercom Corporation, a global provider of electronic payment solutions and the largest supplier of point-of-sale (POS) payment systems in Turkey, Wednesday announced an agreement toprovide 10,000 POS terminals and 52 Integrated Enterprise Networking (IEN) nodes to IsBank. This latest agreement increases the total number of Hypercom terminals ordered by this leading Turkish bank during the last two years to more than 25,000, and is in direct support of IsBank’s card acquisition activities.

“Our retail merchants have told us that they prefer the Hypercom terminal because it is extremely reliable, easy to operate, requires minimal counter space and processes transactions extremely quickly” said Mr. Kadir Akgoz, DP Manager, IsBank. In addition to that, Hypercom’s solutions allow us to better protect ourselves against fraudulent transactions because every transaction is authorised reliably on-line. Hypercom is a perfect fit for IsBank’s card acquisition activities.”

Hypercom’s T7P is a compact, high-performance point-of-sale terminal that supports credit and debit card processing. The highly popular terminal speeds up transaction times and helps prevent long queues at the checkout counter. Equally important, the ‘plug and play’ Hypercom T7P is designed to save on cashier training, installation time and costs, processing and settlement time. Upgrades or re-configurations can be handled remotely.

“IsBank and Hypercom are working very closely together to bring the latest international transaction processing solutions to the Turkish market” said Rob Meli, Managing Director of Hypercom Europe. It is a distinct pleasure to provide this leading bank with proven electronic payment solutions.”

IsBank is installing the 52 IEN controllers in regional branches to extend its geographical network coverage and add capacity in those areas experiencing increasing credit and debit card authorisation transactions. Incorporating Hypercom’s advanced IENView(TM) network management system, IsBank can remotely manage all of the nodes from its central computer center.

Hypercom’s POS and networking equipment is being supplied to IsBank by Hypercom’s local Turkish partner, SERVUS. Based in Istanbul, SERVUS is a diverse information technology group providing sales, support and third-party maintenance services for computer systems ranging from mainframes to personal computers. SERVUS has to-date provided over 550 IEN networking nodes and more than 67,000 Hypercom POS terminals to banks and retailers throughout Turkey. Hypercom Corporation (NYSE: HYC) is a global provider of end-to-end software, networking and hardware electronic payment solutions, including multi-functional point-of-sale terminals, peripherals, networking products, Ascendent(TM) payment and transaction software and Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications. These applications provide competitive value-add programs, improved business performance and lower total cost of ownership.

Headquartered in Phoenix, Arizona, Hypercom markets its products on all continents, with installations in over 60 countries. European sales and support offices are located in the United Kingdom, Hungary and Russia. In addition local EMEA distributors have been appointed in Germany, Poland, Romania, the Baltic States, Ukraine, Yugoslavia, Russia, Turkey, Cyprus, Greece, Mauritius, Egypt, Kenya, Ghana, Bahrain, Jordan, Czech Republic, Croatia, Israel and South Africa. More information on Hypercom and its products can be found at [][1].