Visa Names a Strategy Development Executive

Visa has hired a new Global Head of Strategy and Corporate Development. Oliver Jenkyn, from McKinsey & Company’s San Francisco office will succeed
Rupert Keeley, who has become the Group President of Visa’s Asia Pacific and CEMEA regions. Jenkyn will develop and manage the company’s corporate strategy across the 170 countries. At McKinsey he was a leader in the firm’s North American Payments and Retail Banking
practices. Jenkyn developed a specialty in payments including all aspects of the card business (issuing, acquiring, processing), ACH, check processing and cash management. Prior to McKinsey, Jenkyn worked with Bain & Company’s private equity group. He will report to Joe
Saunders, Chairman and CEO, and will be a member of the company’s Operating Committee.

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Consumer Confidence Swings Like a Pendulum

Consumer confidence continues to swing back and forth from one tracking survey to another. “The Conference Board Consumer Confidence
Index” rose to 54.1 in August from 47.4 in July. The “Present Situation Index” increased slightly to 24.9 driven by an improvement in consumers’ assessment of the job market. The “Expectations Index” improved to 73.5 from 63.4 in July. The Conference Board found consumers more upbeat in their short-term outlook for both the economy and the job market in August, but only slightly more upbeat in their income expectations.
Those expecting an improvement in business conditions over the next six months increased to 22.4% from 18.4% in July. The percentage of consumers expecting more jobs in the months ahead increased to 18.4% in August from 15.5% in the prior month.

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Q2 Credit Bureau Data Show Delinquency Ebbing

The ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards declined more than 11% sequentially for the second quarter. The aggregate balance on all bank-issued credit cards for an individual bankcard borrower declined slightly from the previous quarter but rose nearly 2% compared to one-year ago. According to TransUnion’s “Trend Data,” 90+ day credit card delinquency declined to 1.17% in the second quarter, compared to 1.32% in the first quarter and 1.04% for 2Q/08. Delinquency was highest in Nevada, Florida and Arizona and the lowest in North Dakota, Alaska and South Dakota. Average credit card debt declined to $5,719, compared to $5,776 for 1Q/09 and $5,621 for the second quarter of 2008. The highest debt remains in Alaska, Tennessee and Nevada and the lowest average credit card debt was found in Iowa, North Dakota and South Dakota. TransUnion also revised its forecasts for the 90-day credit card delinquency rate to just over 1.2% nationally by year-end.

90+ DAYS DELINQUENCY
2Q/07: 1.04%
3Q/07: 1.03%
4Q/07: 1.10%
1Q/08: 1.19%
2Q/08: 1.04%
3Q/08: 1.09%
4Q/08: 1.21%
1Q/09: 1.32%
2Q/09: 1.17%
Source: TransUnion Trend Data

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TRAVELEX EXEC

Jonathan Bennett has been appointed Head of Corporate Outsourcing for
Travelex North America. Currently the Head of Corporate Outsourcing for
the UK, Bennett now provides a global focus for Company products,
including “Corporate Cash Passport,” which provides currency through a
prepaid travel card to global consumers. “Corporate Cash Passport”
allows companies to centralize and better manage their travel budgets
while reducing administrative waste. Jon brings to his new role 8 years’
experience in corporate financial services, during which time he worked
in sales and general manager roles for American Express and Travelex.
Travelex foreign exchange and business payments specialist and travel
insurance hosts operations in the Americas, United Kingdom; Europe, Asia
Pacific; and the Middle East and Africa (EMEA).

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GreenBank Offers Instant Issue MC Debit Cards

Instant card issuer Dynamic Card Solutions announced that TN-based GreenBank has implemented DCS’
CardWizard software and FCP 20/20 flat card printers to
instantly issue unembossed MasterCard debit cards. GreenBank offers a variety of images that cardholders can personally
select for their card background including special local ‘Smokey
Mountain’ images. Once the background is selected, DCS’ CardWizard
software transfers all personalization data to the FCP 20/20 where the
highly personalized unembossed card is securely and immediately printed
in brilliant, high-definition color onto both sides of white blank card
stock and presented to the cardholder at the time of their visit.
GreenBank began working with DCS in 2008, implementing a three-branch
instant issue pilot in Greeneville, Maryville and Athens, TN. The
three-branch pilot program was a success, resulting in a significant
20-percent increase in their debit card activation/usage rates. And,
because of the positive results and enthusiastic customer response, they
have since rolled out unembossed instant issuance to 38 of their 66
branches across the state. GreenBank is now seeing an activation/usage
rate of roughly 80%, which is derived from customers that have
received an instantly issued debit card and have used it at least once.

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Retail Shipping Associates to Use NextPay

Card services provider NextPay has signed a multi-year agreement with
Retail Shipping Associates to act as its
exclusive credit card processor. Under the agreement, NextPay will
offer members of RSA its complete
credit and debit card processing services, eCheck and ACH processing,
recurring and online billing as well as its payment gateway and virtual
terminal technologies. NextPay is a Level One Payment Card Industry
compliant processor. As debit and credit card
usage grows — combined with the payment card industry’s 2010 deadline
for security compliance – it is critical that merchants secure their
processing networks and protect cardholders’ information. NextPay Is a
division of Brinkman Financial Company.

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FINECUT LASER

Spartanics has introduced its “Finecut Laser Die Cutting Station,”
appealing to plastic card manufacturers seeking in-line laser die
cutting for their production lines. Powered by Spartanics software, the
in-line laser die cutter automates cutting sequences for optimum web
speeds, job run estimation tool, seamlessly cuts and stitches images to
create parts in unlimited part lengths, reloads jobs in seconds and has
100 meters/minute web speed using a single laser source. The “Finecut
Laser Die Cutting Station” also can be built into offset, digital or
screen print lines; positioned at any point in an assembly chassis; and
is preferable to traditional rotary die cutting stations for its higher
quality cutting, lower costs, and quicker job turnarounds. IL-based
Spartanics offers laser-based, steel rule die and male/female hard tool
cutting systems for finishing products made from flat stock materials
for insurance card, ID card, loyalty card and payment card providers.

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BUSINESS TRAVEL ALLIANCE

BMO Spend Payment Solutions has partnered with Tri-Pen TravelMaster
Technologies in the first of several partnerships that BMO will announce
in the coming weeks for its “Business Travel Alliance.” This latest
partnership addresses the needs of business meeting with customers,
prospects and partners while keeping costs down. In doing so, BMO
supplements standard travel addendum data with its own proprietary card
data to create purchase detail specific to the unique needs of clients.
The combining of BMO’s corporate card and spend management solutions and
TravelMaster’s decision support makes for its dashboard with
consolidated global T E data to control travel expense. This allows
travel managers, purchasing and financial executives to access and
analyze a range of information on T E expenditures. The dashboard
addresses the variance of booked versus actual expenditures; the booking
within corporate policy; potential savings not addressed; transaction
pattern of top vendors; and transaction patterns of individual travelers.

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Gemalto’s Second Quarter Revenues Rise 7.4%

Smart card specialist Gemalto reported $620 million in revenue for the second quarter, up 7.4% from one-year ago. For the first six months of 2009, operating income (EBIT) was flat at $106 million. At constant exchange rates, Secure Transactions revenue was up 3% to $170 million driven by further deployment of contactless payment cards, mainly in the EMEA region, offset the effects of inventory optimization measures of many customers. The proportion of personalized card improved again year on year, resulting in a 4% constant-rate increase in the revenue from personalization services. During 2009, Gemalto announced that its personalization service was chosen to support the NFC pilot in Singapore by Citibank, M1 mobile and Visa. In addition to successes in EMV migration projects and growth in personalization services, Gemalto also continues to gain market traction with its innovative offers, such as the selection by Nigeria’s “InterSwitch” for its “Instant Issuance” offer, and France’s LCL for its web-based photo-customization solution. Gemalto also notes that market traction for more advanced DDA products and contactless payment cards continued to be strong. Year on year, gross margin was lower by 3 percentage points, mainly due to the unfavorable currency evolutions against the Euro. For more details on Gemalto’s second quarter performance visit CardData (www.carddata.com).

GEMALTO REVENUES
2Q/08: $577 million
3Q/08: $599 million
4Q/08: $675 million
1Q/09: $526 million
2Q/09: $620 million
Source: CardData (www.carddata.com)

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BMO Business Travel Begins to Add Partners

BMO Spend Payment Solutions has formed a strategic partnership with Tri-Pen TravelMaster
Technologies to support the BMO Business Travel.
BMO supplements standard travel addendum data with its own proprietary
card data to create purchase detail specific to the unique needs of clients. When
added to booking data and brought into the TravelMaster dashboard, travel managers,
purchasing and financial executives can quickly and easily see and
analyze a wide range of information on T E expenditures. Reports are intuitive and
include a high-level view, as well as drill-down capabilities.
Combining BMO’s corporate card and spend management solutions for managing the entire procure-to-pay travel
lifecycle and TravelMaster’s decision support tools will deliver an innovative
dashboard that consolidates global T E data for fast, accurate analysis and complete
visibility and control over corporate travel expenditures.

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Walmart Expands into Low Priced Bill Payments

Walmart moves deeper into financial services by offering consumers low priced bill-paying services via its 3,755 domestic locations, including Walmart SuperCenters and Neighborhood Markets.
The retailing behemoth succeeded in driving down prepaid card prices to $3 and now offers next day “CheckFreePay” service from Fiserv for less than $2. Walmart already caps the check cashing fee at $3 for payroll and government checks. The “Walk-in Bill Payment and Same Day Bill Payment” services includes “Standard Delivery Bill Pay” by “CheckFreePay” (delivered within three business days) for $0.88; “Next-Day Delivery Bill Pay” by “CheckFreePay” for $1.88; “Same Day” by MoneyGram starting at $4.50; and “Money Orders” for $0.60 Walmart also offers the “Walmart MoneyCard,” a reloadable, pre-paid Visa debit card, for $3. The “CheckFreePay” service from Fiserv gives customers the ability to pay bills from more than 2,500 companies. The new Walmart service enables consumers to pay utility, landline phone, cable/satellite, credit card bills, auto and wireless phone at their local store.

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CONNECTING BUSINESS

Research shows 57% of businesses throughout the UK with an annual
turnover of more than GBP1 million characterized their outlook towards
the economy as ‘hopeful’, 17% are ‘excited’ and 75% are growing or will
within 12 months. Among this 75%, 15% see sustained growth within the
next six months, 28% see sustained growth within 6 to 12 months and 29%
see growth now. The “Connecting Business” survey, based on the responses
of 464 businesses, was carried out at Barclays Commercial and also
demonstrates 30% of businesses disclosed motivation was increasing among
employees; 54% showed employee motivation was holding steady; 5%
believed it would take more than 18 months to see sustained growth; 70%
are working towards creating or sustaining a profitable niche; and 9%
are focusing on just surviving.

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