PAYBILL & EVEREST

Mobile commerce provider PayMate has launched its
mobile payment services in Nepal through its local representative
PayBill who in turn is partnered with Everest Bank to offer remote
mobile recharge to over 2.2 million subscribers of Nepal
Telecom, Nepal’s largest telecom company. PayMate will soon enable
customers to pay for mobile recharge, utility bills, movie & flight
tickets, online purchase, retail shopping,
person to person (P2P) money transfer, EMI payments using SMS. PayMate’s
revolutionary SMS based payment service will allow
customers in Nepal to use their mobile phones as their credit or debit
card to make easy and secure payments online, over the phone or across
the counter. The Customer replies to the SMS with the PIN and a
dynamic 3 digit ‘alpha-code’ which is authenticated by PayBill and the
customers bank account gets debited instantly.

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G&D Develops a Super Smart NFC Card

CardFlash International reports that the first mobile security card
offering contactless smart-card security and mobile payment in addition
to the usual data storage functions has been introduced. The new
Giesecke & Devrient “Mobile Security Card CL” does not require a battery
to operate the contactless interface as the necessary energy is tapped
from the radio field generated by the card reader. The mobile security
cards designed by Germany’s G&D are suitable for use in mobile phones,
smart phones, netbooks and other mobile devices, and even in USB tokens.
The only requirement is that they should be equipped with a slot for
“microSD” cards. Such cards can provide security functions for all of
these devices, as well as PCs and laptops, without the need for an
external smart card reader. The latest product in this family of cards,
the “Mobile Security Card CL,” has been enhanced to include a
contactless interface in addition to the integrated smart card, based on
the international standards “ISO 14443” and “MIFARE.” The range of
possible contactless applications includes electronic access control to
buildings, electronic event ticketing and transit ticketing, and
electronic passes for companies, libraries and universities. The “Mobile
Security Card CL” can also be used for contactless mobile payment. With
its user-friendly interface for mobile phones and desktop or laptop PCs,
it supports all of the usual smart card applications such as secure
banking transactions, e-government, and the secure storage of digital
certificates for PKI applications.

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MMT PARTNERSHIP

Vodafone, Safaricom and The Western Union Company have partnered to
pilot a cross-border Mobile
Money Transfer (MMT) service between the U.K. and Kenya. The initiative
uses Western Union’s trusted global “hub” for processing
cross-border remittances. This service
will enable customers to send cross-border remittances from select
locations directly to Safaricom mobile subscribers in Kenya generally in
minutes. There are many benefits of using mobile phones for
micro-transactions in a country like Kenya, where few people have bank
accounts and over 10
million people have mobile phones. Furthermore, increased global
migration has led to a significant increase in the flow of funds from
expatriate migrant workers who send money home.

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NYCE Network Renews its BMO’s Harris Deal

Chicago-based Harris has renewed its NYCE Network participation and
named Metavante subsidiary NYCE its primary provider of PIN debit and
ATM card access. In addition to NYCE participation, Metavante provides
Harris with card processing for debit, prepaid and ATM cards; ATM
driving; card production and fulfillment; its health savings account
solution; and check image solutions. The NYCE Network provides
consumers with secure, real-time access to their money, offering
hundreds of thousands of ATM locations and millions of point-of-sale
locations nationwide.

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PREPAID MICASH

Prepaid card marketer MiCash has launched a prepaid debit card that
offers cardholders the ability to make
card-to-card or card-to-cash worldwide money transfers. MiCash
cardholders simply set up friends and family as recipients, and call
customer service or log onto an online account to make a transfer. For a
flat fee, users can transfer from their card to a recipient for pick up
at any one of more than 12,000 Bancomer Transfer Services’ locations in
Mexico, South and Central America, India,
the Philippines, China and other locations. MiCash is a leader in
offering MiCash-branded cards as well as partnering with national
retailers to offer co-branded prepaid card programs that boost retail
revenue and encourage customer loyalty.

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Q4 Credit Card Volume May be Flat Y/Y

The fourth quarter may be the worst performing fourth quarter in the
history of Visa and MasterCard credit cards in terms of year-on-year
growth. Purchase dollar volume (PDV) has collapsed this year with a 7%
gain in the first quarter, 4% gain in the second quarter and a 2% gain
in the third quarter. What makes the third quarter even more significant
is that it was artificially inflated by higher gas pump prices. Furthermore,
holiday retail sales for this year are running less than 1% over 2007.
Last year holiday retail sales were up 3% as the fourth quarter PDV for
Visa and MasterCard credit cards climbed 8%. According to CardData
(www.carddata.com), Visa posted $213 billion and MasterCard posted $142
billion in Q2 PDV for credit cards. The $355 billion total compares to
$341 billion for 3Q/07. For the third quarter MasterCard reported $141
billion in credit card PDV while Visa’s estimated Q3 credit card PDV is
$212 billion. (Visa will officially report Q3 data in January.) The
total estimated Q3 PDV for V/MC credit cards is $353 billion compared to
$345 billion one-year ago. For complete details on Visa and MasterCard
quarterly performance for credit and debit cards visit CardData ([www.carddata.com](http://www.carddata.com)).

CREDIT CARD PURCHASE DOLLAR VOLUME
YEAR-ON-YEAR CHANGE
(Visa and MasterCard)
3Q/06: +7.7%
4Q/06: +6.6%
1Q/07: +7.0%
2Q/07: +6.9%
3Q/07: +7.1%
4Q/07: +8.3%
1Q/08: +6.9%
2Q/08: +4.1%
3Q/08: +1.8%
Source: CardData (www.carddata.com)

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Data Center Inc. Hits 45-Year Marker

KS-based processing solution provider Data Center is celebrating its
45th year of business. DCI was created in 1963 by four Kansas bankers,
Nation Meyer and Art Collins, J.A. Mermis and Walther Roth. DCI’s
flagship product, iCore is a fully relational core-processing
system for banks of all sizes with advanced tools for paperless and
online capabilities, automation, and support for mobile banking, teller
capture, remote capture, ATM/card services and regulatory controls such
as BSA monitoring and reporting. From the four founding banks in 1963,
it has grown to serve nearly 200 community bank customers nationwide.
DCI is a privately held provider of full-service bank technology and
processing solutions to the financial industry nationwide.

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Survey Identifies Word-of-Mouth Seg

Results from a survey conducted by MRI indicate that 11.5% of the adult
population in the US are “Big Circle Influentials” regarding personal
finance word-of-mouth communications. According to MRI’s financial Word
of Mouth Segmentation, “Big Circle Influentials”
are 33% more likely to own a home valued at $500,000 or more; 157% more
likely to have made 10 or more investment transactions in the last
12 months; 109% more likely to own securities with a value of $150,000
or more, and 44% more likely to have sought financial planning and/or
money management advice. These key
consumers are at par with the national average age for adults at 45.4
years and have only 4% higher household income than the national average
of $65,500. MRI interviews approximately 26,000 U.S. adults in
their homes each year, asking about their use of media, their
consumption of products and their lifestyles and attitudes.

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Q3 Mortgage Delinquency Rises 54% Y/Y

A new analysis reveals that mortgage loan delinquency (ratio of
borrowers 60 or more days past due) increased for the seventh straight
quarter, hitting a national average high of 3.96% for the third quarter.
The TransUnion data also showed 1.09% of credit card holders were
delinquent at least 90 days on one or more of their cards during the
third quarter, compared to 1.04% in the prior quarter and 1.03% for
3Q/07. TransUnion also reported last week that the percentage of auto
loans that were past due 60 days or more rose to 0.80% of outstanding
loans, from 0.69% in 2007’s third quarter. Mortgage borrower delinquency
rates were highest in Florida and Nevada. The area with the highest
average mortgage debt per borrower was District of Columbia, California
and Hawaii. Average national mortgage debt per borrower rose slightly
(0.2%) to $192,287 from the previous quarter’s $191,681 total. However,
the third quarter 2008 average represents a 3.45% drop compared to the
third quarter 2007 average of $199,168.

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Schwab Bank Launches New Cash-Back Visa

Charles Schwab, with 7.4 million client brokerage accounts, 1.3 million corporate retirement plan participants, and 427,000 banking accounts, has launched a cash-back credit card. The new “Schwab Bank Invest First Visa Signature” credit card offers an unlimited 2% cash-back on purchases that is automatically deposited into a Schwab One brokerage account each month. Clients can choose to invest their accumulated deposits at a time of their choosing by selecting a Schwab offer. The new card offers a prime +9.99% APR and has no annual fee.
The Schwab card also promotes no foreign exchange transaction fees.
For clients who qualify for a credit line of $5,000 or more, the “Schwab Bank Invest First” credit card offers “Visa Signature Dining with Zagat” ratings and reviews, “Visa Signature Access” to exclusive events, and no preset spending limit. The credit card program is issued and administered by BofA’s FIA Card Services. MBNA (now part of BofA) issued a co-branded “Schwab Visa” card in 2004, featuring the ability to redeem points for equity trades. Charles Schwab Bank NA was set up in 2003 to offer general retail banking services, including ATM access, but not bank credit card issuance. (CF Library 2/19/03; 10/07/04)

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SVS Hires a Total Merchant Services Exec

KY-based Stored Value Solutions has hired Ralph Rolen, formerly with
Total Merchant Services, as its EVP/GM. Rolen will lead strategic
direction, operations, product development and
revenue initiatives. Prior to TNS, he held leadership positions at First
Data Corporation
and First Horizon National Corporation. Rolen holds a Bachelor of
Business Administration degree from University
of Oklahoma and a MBA from University of
Texas at Austin.

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