MasterCard Taps a Top Citi A/P Exec as President

MasterCard has named a new President to take the controls on August
31st. Ajay Banga, currently Citigroup’s CEO of Citi Asia Pacific,
will become MasterCard’s President and CEO, replacing current President
Robert Selander, who will continue to serve as CEO. Banga will be
responsible for key business operations including customer relationships
globally in international and U.S. markets, products, services,
marketing, technology and operations. The company’s finance, human
resources, and law and franchise integrity functions will continue to
report to Selander. Banga joined Citi in 1996 as Head of Marketing and
Sales in India, rising through the ranks to Head of Sales, Marketing and
Business Development for EMEA, and was then appointed Division
Executive, Consumer Bank for CEMEA. In 2000 he was appointed Business
Head, CitiFinancial and U.S. Consumer Assets, and in 2002 became EVP,
Global Consumer Group and President, Retail Banking North America.
He was named Chairman and Chief Executive Officer of Citi’s Global
Consumer Group International in 2005, which included all credit card and
consumer banking operations outside North America. He was appointed to
his current position in 2008.

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VIPGift Certified as Level One PCI DSS

TN-based incentive programs and prepaid card solutions provider
VIPGift has received “Level One PCI DSS certification.” Visa has also designated the Company as a CISP
(Cardholder Information Security Program) PCI DSS compliant service
provider. Attaining this certification shows VIPGift’s commitment to
safeguarding customer card and personal information. Clients use VIPGift’s products and services for customer acquisition and loyalty programs, employee incentive and retention programs, marketing initiatives, sales channel incentives and consumer rebate programs. VIPGift’s wide array of customized rewards have helped position the company as a market leader in the incentives industry.

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Credit Card ROAA Slides for 12th Straight Month

The “Return on Average Assets” for the U.S. credit card industry continues to sink in 2009, marking its 12th consecutive monthly decline in May. The record low of 27 basis points compares to 31 basis points in April and 215 basis points one-year ago. According to CardData, the ROAA for Visa and MasterCard portfolios peaked in February 2007 at 263 basis points. ROAA is determined by dividing the after-tax return by the average managed card outstandings and then annualizing. According to
R.K. Hammer Investment Bankers, pre-tax profit for the U.S. credit card industry declined 2.7% in 2008 to $39.6 billion driven by rising expense streams, especially charge-offs. Bank of America reported that its “Return on Average Equity” for its Global Card business dropped to a negative 17.90% in the first quarter, compared to 0.26% in the fourth quarter and 9.18% in the 1Q/08. Chase Cards posted a pretax “Return on Average Managed Outstandings” of -1.92% for 1Q/09, compared to -1.16% in the prior quarter and +2.52% for the first quarter of 2008. Citi’s North American cards unit report a “Return on Managed Assets” for the first quarter of -0.55%, compared to -0.92% in 4Q/08 and +1.32% for the year ago quarter. For the latest portfolio metrics visit CardData (www.carddata.com).

RETURN ON AVERAGE ASSETS
May 08: 2.15%
Jun 08: 2.02%
Jul 08: 2.00%
Aug 08: 1.48%
Sep 08: 1.11%
Oct 08: 1.04%
Nov 08: 0.95%
Dec 08: 0.88%
Jan 09: 0.79%
Feb 09: 0.68%
Mar 09: 0.61%
Apr 09: 0.31%
May 09: 0.27%
Source: CardData (www.carddata.com)

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Veritec Launches MTC Debit Card Fraud Control

Matrix technology provider Veritec has launched its “Mobile Toggle Card (MTC)
Program” using its mobile banking software platform for debit, pre-paid and gift cards.
Licensed by the Veritec Financial Systems (VTFS), the “MTC Program” allows card
issuers and sponsors to offer “MTC”-branded debit or gift cards, which combat non
permitted and fraudulent card use. In doing so, the program allows users to toggle
cards on and off through their mobile phones with features such as online card
application, direct deposits to their cards, fund transfer to the account and mobile phone
account activity alerts. VTFS also allows card issuers and sponsors to issue debit, pre-
paid and gift cards under their own branded programs through its mobile banking
platform and related professional services.

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DIGITAL VENDOR PROGRAM

Western Union Company money-transfer services has introduced its
“Digital Vendor Program” to offer its services using mobile finance
initiatives in Latin America, Africa, the Middle East and Asia. Endorsed
by the GSM Association, which represents over 750 mobile operators
worldwide, the “Digital Vendor Program” is initially offering its
certification program to finance platform providers on a single-country
basis, including South Africa-based Fundamo, India-based mChek,
U.S.-based Sybase 365 and Singapore-based Utiba Pte. Western Union is
certifying mobile platform vendors to reduce integration costs and
accelerate go-to-market activities for banks and mobile operators by
creating standard technical deployments. Once a bank or mobile operator
contracts with Western Union to activate the Western Union “Mobile Money
Transfer service”, consumers can remit funds on the Western Union global
money transfer network of 334,000 Agents in 200 countries. Fundamo
mobile banking software solution oversees 30 successful deployments in
20 countries, mChek mobile-based payment services enables users to
transact through their mobiles phones, Sybase 365 Processes more than
200 billion messages per year for more than 700 mobile operators and
their 3 billion subscribers while Utiba was founded in 2001 offering its
mobile commerce solutions in 20 countries through more than 15 operators.

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Citizens Equity First CU Re-Inks NYCE Contract

Payment network NYCE has renewed its relationship with IL-based Citizens Equity First Credit Union. NYCE is the credit union’s exclusive provider of domestic ATM and point-of-sale access. CEFCU is one of the United States’ largest community-based credit unions with assets of more than $4 billion. It serves more than 262,000
members in 50 states and several foreign countries, and it contributes
nearly 370,000 cards and 109 ATMs to the NYCE Network.
NYCE Payments Network is a leading U.S. electronic
payments network and a Metavante company, a
leading provider of banking and payments technology.

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EZIPAY

Three local firms have banded together to launch a new payment service targeted at remote communities, isolated businesses and commercial vessels, where cell-phone and land-line coverage is
not available. The new “EziPay” service was developed by Card
Access Services Brunei and employs a swipe device called the “CASPAD” in conjunction with software that is installed on the business’s PC or laptop. Joining CAS in the project is Brunei Bay Radio, an operator of the South East Asian HF/SBB radio email hub, and TelBru, the country’s largest telecommunications and information technology provider. with “EziPay” each transaction is transmitted in real time using the secure BBRemail service over the HF radio network and to the bank via the Telbru “Electronic Payment Gateway,” supplied and installed by CAS Brunei. The service allows businesses to accept payments from all major credit and charge cards anywhere and anytime and issue a payment receipt on the spot to the customer. The service will go live at the end of June with subscribers to Brunei Bay Radio.

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Fiserv Loyalty Program Recognized for Innovation

WI-based financial technology provider Fiserv has been awarded “Best Innovation
in a Loyalty Program” for its UChoose Rewards solution by Cards
International. UChoose Rewards from Fiserv is a rewards and loyalty product that provides rewards capabilities for financial institution clients. The ability to allow clients to choose from merchant-funded or issuer-funded programs or a combination of the two to meet their specific profitability objectives speaks to the innovation of UChoose Rewards; as does its emphasis on local merchant recruitment, which enables clients to nominate smaller-scale neighborhood merchants to participate along with national chain stores. UChoose Rewards enables clients to build programs based on the wants and needs of their cardholders, with options for debit, credit and opening an account. In addition, financial institutions have the opportunity to give customers the ability to combine points earned for all their bank or credit union accounts.

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OTI EASYFUEL

Following successful pilot implementation across a number of market
sectors demonstrating its relevance, On Track Innovations (OTI)
contactless microprocessor-based smart card solutions, in partnership
with Armitage Technologies, has won the contract to provide its
“EasyFuel Fuel Management System” in southern China. Mounted on mobile
bowsers for use in harsh port conditions to ensure vehicles and plants
are refueled on a timely basis for efficient operation, the OTI wireless
solution will be implemented for fuel management reports to optimize
performance. Established in 1990, OTI specializes in secure contactless
microprocessor-based smart card technology in a wide variety of markets
across the globe.

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TransUnion & FDCPA Launch Case Search Solution

The FDCPA Case Listing Service showed 5,383 cases were filed in 2008 against collection agencies in U.S. District Court for violating the Fair Debt Collections Practices Act (FDCPA), representing a 41% increase over 2007 case volumes, a figure expected to exceed 7,300 by the end of 2009. Correspondingly, TransUnion will be implementing the “FDCPA Case Search”, the FDCPA Case Listing Service offering data as an added feature for batch records through the TransUnion “Collections Prioritization Engine”. This allows TransUnion to alert collectors of accounts previously involved in FDCPA litigation to assist collectors in determining strategy. TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue with comprehensive data, advanced analytics and decisioning and has employees in more than 25 countries on five continents. FDCPA Case Listing Service provides consolidated research tools for collection agencies, debt buyers, and creditor rights law firms.

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Zave & Scanbuy to Offer e-Coupon Solution

Incentive provider Zave Networks has partnered with Scanbuy mobile barcode
solutions to offers consumers access to discounts and coupons. Aligning Scanbuy’s
“ScanLife” mobile barcode capture using 2D barcode with Zavers’ incentive “Zave
Network”, digitally linking manufacturers’ coupons to consumers and retailers, the
partnership allows consumers to easily find and save coupons in their Zavers
account for redemption at participating retailers. The user simply snaps a picture of
a ScanLife 2D Barcode with their cellphone from the advertisement, which is then
detected on the ScanLife application in the phone and directed to the Zavers mobile
site for the online coupon. The coupon is then scanned and redeemed when the
consumer checks out. Over 250 million mobile phones worldwide support the
coupon application on such operating systems as Android, BlackBerry, BREW,
iPhone OS, Java, Symbian and Windows.

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