FIS Q2 Revenues Slip 4% as International Picks Up

Fidelity National Information Services posted a 4% decline in revenue to $834.8 million for 2Q/09. Net income declined 17.7% to $59.2 million for the second quarter, compared to one-year ago. The Company noted that excluding the unfavorable impact of foreign currency revenue declined only 0.4%. Payment Solutions revenue declined 0.9% to $380.0 million as growth in debit was offset by declines in item processing, credit card and retail check services. Financial Solutions revenue declined 1.4% to $277.0 million as increased demand for risk management and technology outsourcing services was offset by lower software license and professional services revenue. International revenue declined 13.7% to $178.4 million in U.S. dollars due to the strengthening of the U.S. dollar. However international revenue increased 1.4% in constant currency, driven by 5.1% growth in payments. FIS is currently in the process of acquiring Metavante Technologies and expects to complete the transaction in the fourth quarter. For complete details on FIS’ second quarter performance visit CardData (www.carddata.com).

FIS REVENUE
2Q/08: $869.7 million
3Q/08: $893.8 million
4Q/08: $862.0 million
1Q/09: $797.8 million
2Q/09: $834.8 million
Source: CardData (www.carddata.com)

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Restaurants Unlimited Discounts Cards

Restaurants Unlimited is offering a gift card promotion that takes 25%
off purchases.
There are many ways to utilize the 25% in savings that Restaurants
Unlimited is offering, including dinners for two, early holiday
shopping, company parties, birthdays, anniversaries and even happy
hours. Cards include: Kincaid’s, Newport Bay, Newport Seafood Grill, Stanford’s, Fondi, Palomino, Palisade, Cutters Bayhouse, Maggie Bluffs, Stanley and Seafort’s, Horatio’s, Skates on the Bay, Ryan’s Grill, Manzana, Portland City Grill, Simon and Seafort’s, Henry’s Tavern, Billy Heartbeats, Clinkerdagger and Scott’s Bar and Grill. Restaurants Unlimited operates 58 award winning restaurants in
thirteen states.

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NETELLER

NEOVIA Financial global online payments business has introduced its
“NETELLER” Money Transfer service. Allowing users to send and receive
money instantly around the world securely through a user-friendly
interface, “NETELLER” is intent on offering consumers a cost effective
remittance service. The sender pays a 1% transfer fee of no more than
$10 USD while the receiver is incurred no transfer fees. The NEOVIA
service allows people to transfer funds in 20 different currencies to
over 180 countries, with automatic conversion, for a wide variety of
deposit options. Deposit options include credit/debit card, bank
transfer, direct e-Banking, Giropay, iDEAL, and Ukash. Receivers, whom
must hold their own NETELLER account, can withdraw the remittance
through bank transfers, cheques, bank wires or through the “Net +” card.
The NETELLER account is free and can be used to send money to anyone
with an email address.

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Mobile P2P Payments to Rise Sharply

A new report from Javelin reveals the growth potential for mobile person
to person payments. The report, “Mobile Person-to-Person
Payments: Mounting Telco Activity in a Mobile Channel Segment That
Financial Institutions Can’t Afford to Lose”,reveals that the number of
consumers likely to
use mobile P2P payments and transfers has increased sharply to 26
million, with an additional 6 million people expressing interest since
2008. Key Findings of Mobile Person-to-Person Payments Report are:
smartphone adoption has almost doubled in the past year;
nearly one in three online consumers with mobile phones and one
in four online consumers have an interest in using mobile P2P payments;
sending and receiving money quickly are cited as the primary
motivation by consumers to engage in mobile P2P; bank-oriented products
from vendors such as CashEdge and M-Com
are currently best positioned to emerge as the dominant solutions for
mobile P2P and the future success of ZoomPass in Canada could drive further
activity on the carrier side and provide a wake-up call to financial
institutions.

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Consumer Confidence Starts to Erode Again in July

The Conference Board “Consumer Confidence Index” declined for the second month in a row by 2.7 points, the Present Situation Index decreased 1.6 points to 23.4, while the expectations Index declined 3.5 to stand at 62.0 for the month of July. Consumers rated current conditions unfavorably for the month, with those gaging business conditions as “bad” having increased 1.0% to 46.3% while those saying conditions are “good” also increased 1% to 9.1% since June. Everyone seemed to agree the labor market is tough with those finding jobs “hard to get” having increased 3.7% to 48.1% while those claiming jobs are “plentiful” decreased 0.9% to 3.6%. Additional findings show those anticipating an improvement in business conditions over the next six months decreased 2.9% to 18.0%; those expecting conditions to worsen decreased 1.5% to 18.9%; those expecting more jobs in the months ahead decreased 2.5% to 15.0%; and those expecting fewer jobs decreased 1.3% to 26.3%.

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Discover Best IT Place to Work

Discover Financial Services is one of the “Best Places to Work in
Information Technology for 2009” according to Computerworld.
The annual Best Places to Work in Information Technology list is based
on a comprehensive questionnaire regarding company offerings in
categories such as benefits, diversity, career development, training and
retention. In addition, Computerworld extensively surveyed IT workers at
the companies, including 250 at Discover, and their responses factor
heavily in determining the rankings. Discover
has made the list for the past seven years, moving up from No. 73 in
2008 to No. 31 this year. Computerworld’s award-winning Web site, weekly
publication, and focused conference series form the hub of the world’s
largest global IT media network.

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SANTANDER & AIG

Santander Consumer Finance and American International Group inked
merger agreements regarding their respective consumer finance businesses
in Poland. The transaction is pending regulatory approvals from the
Polish Financial Supervision Commission, will result in an exchange of
shares between Santander Consumer Bank (Poland) and AIG Bank Polska,
resulting in 70% stake to Santander and 30% to AIG in the resulting
combined company, in which Santander will assume the management role.
The combined company will benefit from AIG Bank Polska’s market position
in personal loans, credit cards and deposits, will grow its positions by
leveraging the inherited distribution network and will have 250
branches. Santander has nearly EUR 1,168 billion in managed funds, 90
million customers, more than 14,000 branches and 170,000 employees.

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USAT Unveils a Quick Start Program

Cashless technology provider USA Technologies has expanded the “Quick Start
Program” to enable customers to purchase ePort hardware and
back-end services with no money down. The Program is an initiative that will help lower the capital cost and
expense of getting started, while allowing USA Technologies’ customers
to benefit from their technology and give them the ability to compete
immediately in the cashless marketplace. Participants in the Quick Start Program also have access to the Business
Planning Deployment process designed to identify the likelihood of
success in locations throughout the customers’ operation using data
gleaned from the company’s base of over 50,000 devices connected to the
company’s network.

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Citi Mobile for Smartphones Launched

Citibank is launching its “Citi Mobile” service for U.S. smartphones,
including most BlackBerry, smartphones, Palm devices and iPhone mobile
devices. The new service allows users to; view Citi account
balances/activity; pay bills; set up recurring payments; make transfers
between Citi accounts; locate Citi branches/ATMs; and connect with
Customer Service. “Citi Mobile” specializes in offering easy navigation
on virtually any device with a mobile browser and allows for easily
signing in. This development is in response to research showing 62% of
smartphone users use their devices for personal reasons; smartphones
account for 22% of all devices acquired in the past six months; and
total market penetration in the U.S. just reached 16%, according to
Nielsen’s “Q1 2009 Mobile Insights” survey.

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TSYS Q2 Revenues Flat Sequentially; Down 4.5% Y/Y

TSYS reported that reported second quarter revenues declined 4.1% to $412.0 million, compared to 2Q/08, impacted somewhat by foreign currency exchange rates. Operating profit for the quarter declined 14.5% to $82.8 million. North America Services Q2 revenue declined from $282.7 million to $265.0 million. International Services revenue slipped from $79.9 million for 2Q/08 to $76.4 million. Merchant Services revenues rose from $74.6 million to $80.3 million for 2Q/09. TSYS noted that its International Services segment’s operating margin increased to 12.6% from 8.5% on a sequential quarter basis. The payment processor also noted that the conversion of Deutsche Bank in Germany is now complete and when the conversion of Carrefour in Brazil is completed in early 2010 it will drive future international revenues. The Company also announced that it is negotiating with a potential buyer for the sale of TSYS Debt Management, a subsidiary of TSYS, which is involved in the legal collections management and bankruptcy processing business. TSYS reaffirmed its previously released guidance for 2009 of declines in revenues of 5% to 3% and net income of 13% to 11%. For complete details on TSYS’ second quarter performance visit CardData (www.carddata.com).

TSYS REVENUE
2Q/08: $430 million
3Q/08: $500 million
4Q/08: $493 million
1Q/09: $409 million
2Q/09: $412 million
Source: CardData (www.carddata.com)

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Wright Express Q2 Revenues Down 29%; Profits Rise

Fuel card specialist Wright Express reports that revenue for the second quarter decreased 29% to $78.6 million. Net income for the quarter was $93.2 million, compared with a net loss of $24.4 million for 2Q/08. Profits were driven by reduced credit losses. Total MasterCard purchase volume grew 24% to $771 million. Total fuel transactions processed declined 9% from the second quarter of last year to 66.1 million. Payment processing transactions decreased 8% to 51.6 million, and transaction processing transactions decreased 14% to 14.5 million. The Company says average expenditure per payment processing transaction decreased 40% from the second quarter of 2008 to $47.37. For the third quarter, the Company expects revenue in the range of $78 million to $83 million. For complete details on Wright Express’ second quarter performance visit CardData (www.carddata.com).

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Card Debt Puts Lower Income Households on the Edge

A new survey reveals that the average credit card debt of low- and middle-income indebted households in the U.S. is now $9,827. More than 1 out of 3 households reported using credit cards to cover basic living expenses, on average for 5 out of the last 12 months. The Demos research also found that the average interest rate paid on a families’ card with the highest balance was 14.8% with close to 1 in 4 indebted households paying more than 20% interest on their card. Other findings: in the past five years credit card indebted homeowners used an average of $14,344 in home equity to pay down credit card debt and the majority of credit card indebted households cited using tax refunds toward
debt reduction and nearly half of respondents cited working extra hours or taking on an extra job in order to get out of debt.

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