BARCLAYCARD-UNWIND

Barclaycard has launched its “Barclaycard Unwind”
website, offering registered Barclaycard
customers access to reserved tickets, one-off exclusive gigs, VIP
treatment and competitions to win tickets and music collateral. Thanks
to supporting sponsorship with Live Nation, Mercury Prize and Global
Radio, the “Barclaycard Unwind” website forms part of Barclaycard’s move
into music sponsorship, promoted to customers on barclaycard.co.uk,
through customer emails, statement inserts and an online advertising
campaign. Registering on the site allows customer access to exclusive
sessions through Mercury and Global Radio and exclusive ticket reserves
for Kasabian, Pet Shop Boys, Biffy Clyro, Bowling For Soup and Depeche Mode.

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TSYS Signs Consumer Health Technologies

Consumer Health Technologies and TSYS Healthcare have partnered to offer streamlined payment solutions to enable
more convenient and cost effective healthcare purchases. TSYS Healthcare’s payment card solution offers end-to-end
functionality with greater automation, refined reporting and smoother reconciliation
capabilities, resulting in minimal error rates. The TSYS Healthcare
system will be integrated into CHT’s “BenefitSpan”, a total benefit administration and service aggregation
platform for healthcare administrators and financial institutions for managing HRA, FSA and HSA accounts.

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Metavante’s Q2 Net Income Jumps by 41%

Metavante Technologies reports that second quarter revenue rose 4% to
$440.3 million. Net income for the quarter jumped 41% to $51.9 million.
Financial Solutions Group revenue was $177.4 million, an increase of 8%
from 2Q/08, driven by higher core processing and eBanking revenue. The
Payment Solutions Group 2Q/09 revenue was $262.8 million, an increase of
1% over the year ago quarter. The company now expects organic revenue
growth at the lower end of its previous guidance range of 3% to 4%.
During the quarter Fidelity National Information Services completed a
deal to acquire Metavante Technologies for $2.94 billion.
Also, Metavante made the first live implementation of the MasterCard
“rePower” POS prepaid card reload service; Link2Gov announced the
availability of businesstaxpayment.com”, its new consolidated business
tax payment site; and released “Account Open” technology to enable
Consumer eBanking clients’ banking customers to activate new deposit
accounts in real-time. For complete details on Metavante’s second
quarter performance visit CardData (www.carddata.com). (CF Library
4/1/09; 4/24/09; 6/18/09)

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EZIO OPTICAL TAN

PayPal is opening its payment platform to third-party developers with the release of new “Application Programming Interfaces.” PayPal’s current payments network integrates 27 financial networks, 15,000 local banks, 190 global markets and supports 19 currencies.Several developers have integrated PayPal’s new APIs as part of a beta program. Some of these companies include Twitpay, a Twitter-based payment service; LiveOps, with its new on-demand workforce service called LiveWork; and Microsoft’s “Windows Azure” platform, a cloud development environment.
To promote the new APIs, PayPal is holding a “Developer Conference” on November 3rd. During the second quarter PayPal’s net total payment volume was $16.7 billion and global active registered accounts increased to 75.4 million. During the second quarter, PayPal handled 259.6 million payments.

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M&B AND CASHBOX

Cashbox has been awarded the contract to manage 260 ATM sites at the
Mitchells & Butlers’ managed pubs locations, in addition to more
than 240 sites the ATM supplier already manages. The new sites are ATM
ready and will transfer management in the coming weeks. Cashbox
initially started working with M&B following the acquisition of 141
machines on July 7th 2008 and reported an installed base of transacting
machines of 2,838 on December 30, 2008, up from 2,045 on June 30, 2008,
with sufficient ATM stock in warehouse to meet installation requirements
for the remainder of the financial year. (CardFlash International
Library 2/2/09)

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AmEx Losses $200MM in Q2 for U.S. Card Services

American Express reported a $200 million second quarter loss for its
U.S. card services business, following a $25 million loss in the first
quarter. Charge-offs hit the double digit for 2Q/09, representing a 150
basis point leap from the prior quarter and nearly double the year ago
ratio. U.S. Card revenue declined 16% to $2.35 billion, largely due to
lower billed business volumes, reduced commissions and fees, decreased
travel commissions and fees, lower other revenues and slightly lower net
card fees. Interest income slipped 25%, due to a decrease of 14% in the
average managed lending balance and a lower portfolio yield, driven by
reduced market interest rates and the impact of various customer
assistance programs, but partially offset by the benefits of certain
repricing initiatives. Charge-offs on managed U.S. card loans rose to
10.0%, compared to 8.5% for 1Q/09 and 5.3% for 2Q/08. However,
delinquency (+30 days) dropped 70 basis points sequentially to 4.4%, but
remains 110 basis points higher than one-year ago. U.S. card loans
declined 17% from 2Q/08 to $54.0 billion, and are $2.5 billion lower
than the prior quarter. For complete details on American Express’ second
quarter results, visit CardData (www.carddata.com).

American Express U.S. Card Metrics
Charge-Offs Delinquency Net Income
2Q/08: 5.3% 3.3% +$ 21 million
3Q/08: 5.9% 3.9% +$244 million
4Q/08: 6.7% 4.7% +$ 4 million
1Q/09: 8.5% 5.1% (-$ 25 million)
2Q/09: 10.0% 4.4% (-$200 million)
Source: CardData (www.carddata.com)

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Fitch Puts 121 CC-Backed ABS Under Review

Fitch Ratings’ review of U.S. Credit Card ABS transactions has designated 121 classes as ‘Under Analysis’.
The following trusts will be reviewed because their performance is
outside Fitch’s expectations: “BA Master Credit Card Trust II”;
“BA Credit Card Trust” and “Chase Credit Card Master Trust”.
A transaction may also be designated as ‘Under Analysis’ when a review
is undertaken because of a material event affecting the transaction or
when a regular, more in-depth periodic review is being performed.
As Fitch receives monthly information on credit card ABS transactions
from trustees and servicers, Fitch analysts run the data through various
internal algorithms which identify classes of a transaction as possible
candidates for upgrade or downgrade. Fitch’s analysts scrutinize the
output to decide which deals need further review, which are noted as
‘Under Analysis’. Deals not selected for further review are given a
SMARTView date indicating that the performance information has been
reviewed as of that date. While
transaction performance is reviewed monthly, Fitch conducts detailed
portfolio reviews at least annually.

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GBGC REPORT

Stunting industry growth to only 2% in 2009 and 3% in 2010, rising
credit card debt is predicted to account for losses in online gambling
by as much as US$1.3 billion and US$2.8 billion in GGY, respectively. These figures
are projected to account for a US$11 billion loss between 2009 and 2012,
according to a recent GBGC report. The report also shows UK consumer
credit card debt is second to US consumers with charge-offs having
reached GBP929 million. Charge-offs’ impact on Internet gambling is severe,
considering credit cards process 70% of all transactions. Also, there
will be fewer new customers so the acquisition cost per customer is
expected to rise, leading to inevitable cost-cutting and merging of
customer base.

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CASHBOX ATMS

VASCO Data Security International has reported its financial results for
2Q/09, reflecting a revenue decrease of 31% to $24.5 million since the
year ago period. Net income for the quarter was $2.0
million for a decrease of 73% since the year ago figure of $7.5 million;
gross profit was $16.7 million (68% of revenue) for the quarter and
$33.4 million (70% of revenue) for 1H/09, down from $25.4 million since
the year ago period; and operating expenses for the quarter were $15.4
million and $27.3 million for the half, down 6% and 11%, respectively,
since the year ago periods. Additional figures show operating income for
the quarter and half was $1.4 million and $6.1 million for an 85% and
59% decrease, respectively; EBITDA was $3.2 million and $8.5 million
for the second quarter and 1H/09 for a decrease of 67% and 50%,
respectively; and net cash balances under VASCO’s line of credit as of
June 30, 2008 totaled $67.6 million compared to $57.3 million on March
31, 2009. Other highlights show VASCO won 350 new customers throughout
the quarter with 44 new banks and 306 new enterprise security customers;
its “DIGIPASS” Mobile solution was made available for DOCOMO i-mode; and
it launched its “DIGIPASS Ready Solution Partner Program.” For complete details on VASCO’s latest performance visit CardData (www.carddata.com).

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CARLSON WHITE PAPER

In attempts to bolster financial performance, many airlines are considering
liquidating their frequent flyer programs. Experts show this is an
effective way for airlines to raise capital, unlock value, improve
margins, accelerate revenue growth, achieve economies of scale and
improve CRM customer relationship management. Disadvantages however,
seem to outweigh the good, according to the Carlson Marketing’s Global
Airline Practice division. The Division’s recent white paper shows what
hurts sellers include buyers’ possible short-term view,
unpredictability, capital gain is only a one-off, an imbalance of power
between program and airline, global alliances and current liabilities.
Compounding these uncertainties is the current economic climate with
less capital available for purchasing the program, less travel, less
consumer spending, a higher rate of credit card defaults, lower consumer
credit ratings, reduction in network size, fewer miles being redeemed
and less of an appetite for balance sheet adjustments.

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Frequent Flyer Programs Should be Explored

Carlson Marketing has released a white paper that explores the pros and
cons for airlines selling off frequent flyer programs.
The paper, “Spinning Off Frequent Flyer Programs in Turbulent
Times”indicates there are six compelling reasons for selling off an
airline’s frequent flyer program that include raising capital, unlocking
value, accelerate revenue growth,achieve economies of scale and improve
customer relationship management and data analysis. The disadvantages
include program delivery and how intertwined the program is in the
airline operations, short term views, unpredictability of future events,
capital gain is a one time event, the imbalance of power between the
frequent flyer program and the airline, the impact on global alliances
and current liabilities.

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PayPal Q2 Revenue Rises 12% as Accounts Jump 20%

eBay reported that PayPal posted $669 million in net revenue for the
second quarter, an increase of 11% year-over-year driven in part by
“Bill Me Later” transactions. Net total payment volume for the quarter
was $16.7 billion, an increase of 12% year-over-year. Global active
registered accounts increased to 75.4 million, representing 20%
year-over-year growth. During the second quarter, PayPal handled 259.6
million payments, a 2% increase over the prior quarter, and up 23% from
2Q/08. PayPal’s 2Q/09 transaction revenue rate decreased to 3.77% from
the prior quarter and is 12 basis points lower lower than the previous
year rate. The processing expense rate for the second quarter edged down
slightly to 1.15% which is lower than the prior year at 1.23%. PayPal’s
transaction loss rate went up two basis points to 0.30%. For “Bill Me
Later” credit transaction the delinquency rate (90+ days) was 4.64% for
the quarter, up from 4.57% in the first quarter. The “Bill me Later”
charge-off rate hit 11.08% in 2Q/09, compared to 8.95% for 1Q/09. For
complete details on eBay/PayPal’s second quarter performance, visit
CardData (www.carddata.com).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
2Q/08: $14.9 billion 62.6 million
3Q/08: $14.8 billion 65.3 million
4Q/08: $16.0 billion 70.4 million
1Q/09: $15.9 billion 73.1 million
2Q/09: $16.7 billion 75.4 million
SOURCE: CardData (www.carddata.com)

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