Cardtronics Slips 4% in the First Quarter

ATM specialist Cardtronics posted revenues of $115.3 million, down 4%
from the first quarter of last year. The GAAP net loss was $5.1 million
compared to $4.6 million in 1Q/08. However, the average number of
transacting ATMs increased by 2%; total transactions increased by 7%;
total cash withdrawal transactions increased by 7%; and cash withdrawal
transactions per ATM per month increased by 5%. During the quarter,
Cardtronics made its ATMs available in 97% of the 400 Costco
U.S.locations; deployed 120 ATMs in high-transacting locations under the
Company’s contract with the U.K’s Welcome Break; converted its ATMs
located in Mexico over to its EFT processing platform; and transitioned
the Company’s ATMs in the U.K. over to its in-house armored courier
operation. The Company continues to project revenues of $460 million to
$470 million for 2009. For complete details on Cardtronics’ first
quarter results visit CardData (www.carddata.com).

Details

First Data Christens PayCargo

First Data has launched “PayCargo”, an online freight payment system for ships.
The “PayCargo” system is an electronic invoice presentment and payment
(EIPP) tool that helps reduce the cost of approving and disputing
payments. It also helps prevent expensive demurrage and storage charges
that often result from inefficient payment processes and procedures.
PayCargo integrates with existing carrier accounts receivable systems
using a simple method that can update invoice and payment data several
times throughout the day.

Details

Western Union Enters the M-Payments Market

Western Union and Consumer Portfolio Services along with VeriSign’s Messaging and Mobile Media Division announced a pilot project enabling CPS customers to trigger their monthly car payment directly from their mobile phone. The pilot program will run for approximately three months, at which time it will be evaluated for further rollout.
CPS customers sign up for the Western Union “Bill Alert Text
Message” service online and enter their CPS account number, mobile phone number and debit account information. Once the consumer has confirmed enrollment, monthly alerts are sent through VeriSign, detailing the payment amount due. The consumer submits his payment approval by texting “YESCPS” directly through the mobile device initiating a Western Union “Speedpay” transaction. Consumers can end their participation in the program at any time by texting “STOP.”

Details

Advanta Hammered as Charge-Offs Near 16%

Business card specialist Advanta reported a first quarter net loss of
$75.9 million, a 62% sequential increase. Charge-offs soared to 16% from
12% in the prior quarter and compared to 6% one-year ago. Business
Cards ending managed receivables decreased to $4.7 billion and customer
transaction volume declined to $2.5 billion for 1Q/09. The number of new
account originations dropped to 3,961 from 15,312 in the prior quarter
and 67,094 one-year ago. The managed net credit loss rate for its
business cards was 15.86% for 1Q/09, compared to 11.99% in the fourth
quarter and 6.43% for 1Q/08. The 30-day delinquency rate jumped to
11.98%, compared to 9.53% in the prior quarter and 5.30% one-year ago.
Gross volume for the quarter dropped 26% year-on-year to $2.5 billion
while the number of accounts dipped 18% to 781,000. For complete details
on Advanta’s first quarter performance, visit CardData ([www.carddata.com](http://www.carddata.com)).

ADVANTA’S CARD PORTFOLIO SNAPSHOT
Period Card Loans
1Q/08: $6.35 billion
2Q/08: $6.08 billion
3Q/08: $5.59 billion
4Q/08: $5.02 billion
1Q/09: $4.88 billion
Source: CardData (www.carddata.com)

Details

SUBWAY & PAYWAVE

The SUBWAY restaurant franchise has joined a growing roster of Visa
payWave contactless payment enabled merchants, which will allow
consumers to simply “wave and go” when making every day transactions
like purchasing a SUBWAY sandwich. The deployment of Visa payWave
enabled Visa cards and point-of-sale terminals is closely aligned with
Visa’s migration to chip card technology in
Canada. Visa employs a layered approach to its fraud prevention efforts,
including technology on the card itself as well as on Visa’s processing
network to help heighten security efforts. The SUBWAY restaurant chain
is the world’s largest submarine sandwich franchise, with nearly 31,000
locations in 89 countries, including more than 2,400 locations in Canada.

Details

Asset Acceptance Revenues Dip 10% in Q1

Debt collector Asset Acceptance Capital reported the total revenues
declined 10% year-on-year to $57 million for the first quarter.
Net income for the quarter was $4.6 million, compared to net income of
$6.8 million for 1Q/08. During the first quarter the Company invested
$22.1 million to purchase charged-off consumer debt portfolios with a
face value of $747.8 million, representing a blended rate of 2.95% of
face value. This compares to the prior-year first quarter, when the
Company invested $22.0 million to purchase consumer debt portfolios with
a face value of $542.8 million, representing a blended rate of 4.06% of
face value. AACC says it carefully controlled its levels of purchasing
in the first quarter and expect to do so again in the second quarter in
order to free up capital to purchase at what it expects will be more
advantageous pricing in the second half of 2009 and early 2010. For
complete details on Asset Acceptance Capital’s first quarter performance
visit CardData ([www.carddata.com](http://www.carddata.com)).

Details

EURONET 1Q/09

Euronet Worldwide reported that first quarter revenues declined 4.5% to $233.7 million, impacted by four unusual factors. However, total transactions hit 347.8 million, compared to 339.5 million in the first quarter 2008. The Company faced significant declines in foreign currency exchange rates against the U.S. dollar, adjustments in 2009 to the fourth quarter 2008 estimated goodwill and intangible asset impairment charges, the first quarter 2009 receipt of termination fees for two previously announced contracts and charges incurred in the first quarter 2008 associated with abandoned efforts to acquire MoneyGram. The EFT Processing Segment reported revenues of $46.2 million, compared to $48.2 million for the first quarter 2008 and transactions of 159.5 million, compared to 168.4 million for 1Q/08. The Prepaid Processing Segment reported revenues of $134.5 million, compared to $144.3 million for 1Q/08 and transactions of 184.3 million, compared to 167.3 million for the first quarter 2008. The Money Transfer Segment reported revenues of $53.0 million, compared to $52.3 million for 1Q/08 and transfer transactions of 4.0 million, compared to 3.8 million for the first quarter 2008. For complete details on Euronet’s latest results visit CardData (www.carddata.com).

Details

Business Cash Advance Targets Spas

FL-based Business Cash Advance has launched a micro-site to offer advice
to salon and spas seeking cash advances.During the last several years,
cash advance providers have issued
millions of dollars in cash advances for salons and spas that are being
turned away by banks and credit cards. With the decline in sales for
hair salons and spas as consumers rein in discretionary spending, these
businesses are losing their ability to secure beauty salon loans and
salon financing via conventional loans and lines of credit from banks
and credit cards. In order for salons and spas to obtain the funds they
need for working capital, products/equipment and unexpected expenses,
many are turning to beauty salon business cash advances as an
alternative financing option. A business cash advance is similar to an
unsecured loan for salons and
spas, but cash advances do not require the guarantees, liens or
collateral associated with traditional loans for salons and spas. There
are no application fees, out-of-pocket costs or fixed monthly payments.

Details

GEMALTO 1Q/09

Gemalto reports that total revenue for the first quarter was 367 million euros, lower than 1Q/08 by 8% at constant exchange rates and by 5% at historical exchange rates. However, the Company notes strong progress continues to be made in securing new contracts for mobile services and contactless payment devices. At 100 million euros first quarter the Secure Transactions unit revenue was essentially unchanged from last year. In the first quarter Security again posted a strong growth, with revenue up by 26% at constant exchange rates and 27% at historical rates. At 192 million euros first quarter Mobile Communication revenue was lower than the very strong first quarter of 2008 by 19% at constant exchange rates and by 14% at historical exchange rates, in line with seasonality expectations for 2009. Public Telephony revenue continued to decline as mobile telephony expands, and POS Terminals grew on strong sales in Europe and the Middle East. For comeplete details on Gemalto’s latest performance visit CardData (www.carddata.com).

Details

SMALL BIZ CREDIT USE

Financial blog Thinking Money has announced that Irish businesses are
using credit
cards to come to terms with their short-term finances. Anywhere between
a third and two thirds of
small businesses put cashflow as their greatest financial concern and
this strain
is only going to increase as the recession continues. Many small
businesses and sole traders are increasingly likely to take
advantage of their credit cards as a short-term form of credit. Credit
cards also
have the benefit that they can offer rewards and cash back too. This
enables businesses to temporarily allocate some of their expenses on a
business credit card providing a temporary and flexible method of debt
management. Thinking Money has previously stated that credit cards may
not be an ideal
long-term solution in managing SME debt, but can provide a reliable
stop-gap in the short-term, possibly even preventing a temporary,
insolvency shortfall.

Details

APRIL PMI

The Bloomberg Euro-Zone Retail
Purchasing Managers’ Index rose in April
to 48.4, from 44.1 in March, indicating the weakest rate of decline
since the current sequence of contraction began last June.
Retail sales again fell compared to one month earlier in each of the
three largest euro economies. In all cases the rates of contraction
slowed and the differentials between the three countries narrowed.
Italy continued to register the steepest overall fall in retail
sales. The month-on-month sales index rose from 41.9 in March to 46.8 to
indicate the weakest rate of decline since October 2007, while retailers
in Germany saw sales fall at the slowest pace in the
current 11-month sequence of decline. Sales were down only modestly
during April to represent a marked contrast to the steep rate of decline
recorded at the start of the year. The month-on-month index for Germany
picked up from 44.4 in March to 48.9 and France registered only a
marginal decline in sales that was the
weakest among the three countries covered, as has been the case
throughout much of the past year. The month-on-month index rose from
45.7 to 49.2, indicating the smallest decline for three months.
The sales against targets index rose from 36.9 to 44.4, staying well
below the 50.0 neutral level to indicate that sales objectives were
again missed. Clothing & footwear sales came closest to planned levels in
April. The April survey showed that euro area retail sales rose on an
annual
basis for the first time since May 2008. The year-on-year sales index
surged above the 50.0 no-change level from 36.4 in March to 51.9.
However, anecdotal evidence from panelists suggested that the marked
improvement reflected both the later timing of Easter this year compared
to 2008 and to milder weather.

Details

SECURCORE & TOSHIB

Digital technology provider ARM has licensed the “ARM SecurCore SC300”
processor to
Toshiba Corporation for use in future embedded security
applications. The ARM Cortex-M3 processor forms the foundation of the
SecurCore
SC300 processor and was specifically developed to target the low-cost
requirements of a broad range of markets and applications where memory
and processor size significantly impact device costs. The “SC300”
processor combines the proven security features of ARM
SecurCore processors, currently the most widely-licensed 32-bit RISC CPU
for smartcards worldwide, with the processing performance of the
“Cortex-M3” processor. This assures full compatibility with other ARM
processors as well as direct and immediate support from the “ARM
RealView” Microcontroller Development Kit which is ideal for developing
the firmware that will run on smartcards.

Details