EMV MIGRATION

With 100% anticipating their credit and debit card portfolios fully
migrated to EMV/chip within one to five years, reducing payments fraud
is the top driver for issuers and acquirers to adopt EMV/chip in Brazil
and Mexico, while they are also driven to position themselves as
innovators and technology leaders. This, according to the Smart Card
Alliance Latin America (SCALA), Visa and First Annapolis Consulting, was
based on research conducted with 13 issuers/acquirers in Mexico and
Brazil and is disclosed in the report, “EMV Migration Study and Market
Analysis on Mexico and Brazil.” To gage issuers’ and acquirers’
perspective on the current state of EMV migration and the long-term
growth of the EMV market, the report addressed such questions as; “What
were the key factors influencing the adoption of EMV/chip cards; What
challenges were encountered during the EMV/chip migration process?; How
are organizations leveraging EMV/chip technology to improve performance;
What is the “next wave” in the evolution of the EMV market?; What is the
business impact of EMV/chip adoption for issuers and acquirers?; and
What is the EMV/chip market size in Mexico and Brazil through 2015?

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SCA Calls for Improving EMV Cards

The Smart Card Alliance Contactless and Mobile Payments Council have
released a
statement that focuses on improving EMV compliant chip cards
acceptance. These cards will be used for purchases made outside
the U.S., particularly in Europe where most point-of-sale (POS)
terminals and automated teller machines (ATMs) are EMV-compliant.
In a bid to maintain “top of wallet” status with their best customers,
U.S. issuers are expected to offer select customers an EMV compliant
chip card as part of a newly redesigned upscale card product.
Increasingly, U.S. cardholders are inconvenienced when using their
credit and debit cards while traveling and travelers are finding they are unable to use
magnetic stripe cards at unattended chip-based terminals for train
tickets, parking, tolls or gasoline. Since seven of the top ten
countries visited by Americans are converting to EMV chip and PIN
cards, the problem may get worse. Some smaller merchants
are refusing magnetic stripe cards from fear of fraud or confusion on
the part of the store clerk. The European Payments Council, the
governing body responsible for achieving a single payments market
throughout Europe, recently announced it is considering a ban on
magnetic stripe cards within the next couple of years.
U.S. issuers are following in the footsteps of the Royal Bank of Canada,
which took a similar approach in 2003 with the Avion Platinum microchip
card, issued to upscale international travelers. Chip cards will be
more readily accepted internationally and increase convenience for
travelers. The chip’s secure authentication mechanism reassures the
issuer that the card is genuine, so issuing banks can reduce
authorization errors and authorize more international transactions that
were previously considered too risky. The number of
international travelers needing EMV-compliant cards will grow as Canada
and Latin America continue their rollout of EMV.

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MONEYSEND

Catering especially to the more than 197 million foreign workers
worldwide who regularly send money home, MasterCard Worldwide has
announced it will be making available the capability to offer MasterCard
cardholders money transfers from any MasterCard or Maestro card to any
other MasterCard or Maestro card. This will expand the usability and
value of MasterCard products and global payments network by providing
its customers with a convenient and cost-effective money transfer
platform enabling person-to-person payments and cross-border
remittances. This will additionally give banks access to the $456
billion global remittance opportunity while fostering deeper
relationships with their cardholders.

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VERISHIELD

VeriFone Holdings’ “VeriShield Protect” end-to-end encryption solution
for card payment security is being made available for use with the EMV
smart card standard and will support contactless payments. “VeriShield
Protect” is now being expanded for use worldwide in support of all card
payment types with full EMV and contactless capability beginning in
spring 2010. It eliminates usable cardholder data from a retailer’s POS
applications, networks and servers by encrypting it end to end.
Additionally, Real-time monitoring of payment transactions ensures that
organizations can respond immediately to mitigate any attempted breach.
“VeriShield Hidden Encryption” (VHE) uses sophisticated AES encryption
and enables existing payment applications to deal with encrypted
cardholder data that is unusable by hackers, but does not impact
existing transaction message formats for cost-conscious “VeriShield
Protect” integration.

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NEOVIA ONLINE

NEOVIA Financial global online payments business has won five contracts
for its Payment Suite with trade associations and professional bodies.
Allowing the associations to process membership payments quickly and
securely online, the NEOVIA Payment Suite is providing securely process
subscription payments or payment for events from its members as they
visit the organisation’s website and features the NETBANX international
payments gateway, the NETELLER e-wallet and Net+(TM) cards. NETBANX allows
merchants to accept card and non-card payments through multiple channels
including online, contact centres, mail order and automated phone
systems. The NETELLER e-wallet allows consumers to spend securely online
as well as allowing merchants to increase customer lifetime value. Net+
cards allow merchants to extend customer loyalty and lifetimes. As well
as cards, the NEOVIA Payment Suite supports online payments direct from
consumers’ online bank accounts. The new associations include The
Association of MBAs is the international impartial authority on
postgraduate business education; BCS, The Chartered Institute for IT;
the Chartered Institute of Taxation; and the Institute of Acoustics; the
Royal College of Psychiatrists.

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Archway Ships 500 Million Cards in 2009

MN-based gift card provider Archway will ship 500 million cards by the end of 2009.Of this total, Archway expects to
ship 145 million cards to retailers, channel partners, consumers and
businesses this holiday season. Archway has nearly 100,000 square feet of secured warehouse space
dedicated to the distribution of secured cards. Visa, MasterCard,
American Express and Discover Card have approved and certified the space
for secured card distribution making Archway the only fulfillment
services company approved by the four major card associations to fulfill
secured cards. Archway is an end-to-end solution provider, offering procurement,
fulfillment services, and inventory management, as well as serial number
tracking, forecasting, automatic replenishment and online reporting for
gift, prepaid and financial card programs. The company’s technology
infrastructure combined with its serial number and lot tracking
expertise, were used to develop a radio frequency (RF) tracking system
and card fulfillment e-tools that streamline inventory management to get
cards in the consumer’s hands faster.

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INGENICO VENTURES

Ingenico Payment Solutions’ “Ventures” has invested USD6.5 million in
ROAM Data Mobile Application Service Provider (MASP). ROAM dynamically
delivers business and payment applications to service end-users on their
own mobile phones from smartphones, mainly targeting the large untapped
market of mobile professionals and micro-merchants. It provides the
convenience of merchant transactions on mobile devices via its PCI DSS
payment gateway 24X7. This is the second investment in mobile payment
made by Ingenico “Ventures” this year, after Transfer To, a
Singapore-based Payment Service Provider (PSP) Transfer To operates a
global airtime remittance network interconnecting the mobile operators’
prepaid users. Ingenico has over 15 million terminals deployed in more
than 125 countries and employs 2,500 worldwide.

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GEMALTO & SNCF

SNCF and Gemalto have presented its new NFC service allowing travelers
to purchase and recharge their transport tickets using a contactless
mobile phone at the Cartes & IDentification 2009 exhibition.
The widespread integration of NFC technology into consumer mobile phones
will allow travelers to purchase or top up transport tickets, at any
time, from the online SNCF portal. The transport ticket carrying the
rights to use the public transport network is stored in the SIM card of
the NFC mobile phone. The traveler uses it by swiping the phone handset
over a reader to open the gates and presenting their phone to the ticket
inspector to confirm validity.

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CONVEGO and G&D

Giesecke & Devrient is consolidating its Payment division’s portfolio of
products, systems and services under the international umbrella brand
name “Convego” immediately for a more coherent market presence. Being
unveiled at the CARTES international trade show in Paris, the Convego
umbrella brand covers all the product lines in G&D’s payment portfolio.
“Convego Factors” refers to card bodies in all their various forms while
“Convego Air” groups together all the products that allow a user to make
payments using contactless technology. Under Convego System Commerce,
G&D will offer services such as turn-key solutions through Convego
“System Instant Issuance” and Convego “System Picture Card,” allowing
customers to undertake individual and decentralized personalization of
their payment products.

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More Thrust Added to British Airways Visa

British Airways and Chase Card Services have joined forces to ramp up the rewards program for the “British Airways Visa
Signature” card that include a 25% increase in the number of BA miles earned and new cardmembers will
receive a bonus 100,000 BA Miles. The new enhanced benefits of the “British Airways Visa Signature” Card
include an improved earn rate of 1.25 BA miles for every $1 spent and 2.5
BA Miles for every $1 spent on British Airways travel and vacation packages, an
increase of 25% from the previous offer; a companion redemption voucher reward when
cardmembers spend $30,000 a year. Cardmembers redeeming BA Miles for a British
Airways flight in any cabin class will receive a flight for a companion in the same
class; a bonus 100,000 BA Miles for existing US British Airways
Executive Club members and new card holders approved for the card. Cardmembers receive
50,000 BA Miles after their first purchase, and they receive another 50,000 miles
after they spend at least $2,000 in the first three months. New cardholders automatically become a member of the British Airways
Executive Club and can earn more BA Miles through partners such as Avis,
Marriott, Hilton and E-stores and by taking advantage of great offers from
British Airways and oneworld alliance partners such as AmericanAirlines.

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VISA ALERTS

Visa announced the roll-out of transaction alerts, which allow issuers to provide near real-time alerts to Visa account holders throughout the U.S. and Canada. Alerts are sent on behalf of participating issuers directly from VisaNet within seconds of a transaction occurring. Alerts are triggered when the transaction meets certain criteria the account holder has selected and are delivered directly to the account holder via email, SMS text message or the “Visa Mobile” application. The alert message sent to account holders contains the amount, time and date of the transaction, as well as information relating to the merchant, such as name and location. If the transaction appears to be irregular, the account holder can immediately contact their issuer to help stop further transactions on the account. Over the last 12 months, Visa piloted transaction alerts with eight leading North American financial institutions and more than 2,000 participants.

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CARTA DI ATENEO

Banca Popolare di Sondrio and Oberthur Technologies have teamed to launch the European Union’s first prepaid Visa contactless card. The “Carta di Ateneo” is a dual interface payment card that combines Visa-certified contactless and EMV payment as well as access
control and personal identification features. Issued in conjunction with KCCS Key Client Card and Solutions, the card will be used by students and faculty employees of two Milanese learning institutions, the Politecnico di Milano and the University of Milan Bicocca. Cardholders can make contactless purchases of up to 15 euros, simply by
passing the card in front of a contactless terminal. For larger
purchases, the card’s EMV interface is used with either the cardholder’s
PIN or signature. More than 300 merchants within the vicinity of the
university campuses will provide contactless point of sales terminals to
accept the card.

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