INGENICO & CARD COMMERCE

Ingenico and prepaid card services provider Card Commerce have partnered to
stimulate adoption of pre-paid
cards across the banking, retail and government sectors.
Under the agreement, Ingenico will integrate Card Commerce’s
pre-paid technology platform into its wireless and countertop portfolio
to create the market’s most comprehensive pre-paid consumer card
proposition. This partnership will support and enhance the rapid
prepaid market
growth in the UK and Ireland, delivering the tools to enable merchants,
banks and other value chain players to build brand differentiation,
achieve significant revenues and enable improved customer retention and
loyalty strategies and will also ensure a
flexible and future-proofed platform enabling businesses and public
sector organisations (PSOs), to benefit from new technologies such as
Near Field Communications and Radio Frequency Identification (RFID), as
the pre-paid market matures. Card Commerce is an
independent, highly focused provider of prepaid payment services to the
retail and financial services industry.

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INTERCEDE & GLOBALPLATFORM

Intercede has become the latest company
to join international smart card specification body, GlobalPlatform.
Intercede is the producer of “MyID
Identity and Credential Management System”.
As a Full Member of GlobalPlatform, Intercede will take an active role
in shaping the association’s strategic direction and the development of
its industry-leading, open and interoperable specifications for the
entire smart card infrastructure. Intercede will enjoy heavily-weighted
voting privileges and the opportunity to nominate a representative
annually for election to the Board of Directors. The company is also
entitled to assign representatives to participate on the GlobalPlatform
Advisory Council, its technical committees – card, device and systems –
task forces and working groups. Intercede’s “MyID” is being used around the world by large corporations,
governments and banks to manage millions of identities for employees,
citizens and customers.

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Target’s Q3 Credit Card Profits Plunge 85%

Target reported that its credit card profits plunged 85% to $35 million for calendar 3Q/08, as a result of a decline in overall portfolio yield, its second quarter deal with Chase and declining interest rates. The average receivables directly funded by Target in the third quarter declined 27% to $3.3 billion while overall managed average receivables fell 19% to $8.745 billion. Revenues for the third calendar quarter ending November 1st increased nearly 8% year-on-year to $526 million. Finance charge revenue rose about 10% to $366 million for the third quarter. Target noted that overall portfolio performance also declined due to higher bad debt expense resulting from current period write-offs and additions to the reserve for future periods. Bad debt expense for credit cards soared 143% to $314 million for 3Q/08. During the second quarter, Target and Chase announced a deal under which Target would sell an undivided interest in its credit card receivables to Chase for cash proceeds of approximately $3.6 billion. This interest represented approximately 47% of the principal amount of Target’s outstanding receivables. For complete details on Target’s latest performance, visit CardData ([www.carddata.com](http://www.carddata.com)). (CF Library 5/6/08)

TARGET CARD LOAN HISTORICAL
3Q/07: $7.652 billion
4Q/07: $8.624 billion
1Q/08: $8.420 billion
2Q/08: $10.22 billion
3Q/08: $8.745 billion
Source: CardData (www.carddata.com)

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TD TRAVEL SURVEY

According to the results of the “TD First Class Travel Visa Infinite
Card Survey”, 41 % of Canadians say that they will travel over the
holidays and 34% indicate that they will be more flexible with their
travel dates and 26% will be more flexible with their holiday
destination. Only 6% of people who were planning on travelling will
cancel their travel. Of those who have upcoming travel plans, 19% say
they will be using
their reward points more to fund their holiday plans. Nearly 70% of
those surveyed plan their trip ahead of time, with 51% planning their travel
at least a month ahead. Not surprisingly, younger travellers (18-34)
are a little more flexible with their travel plans than
those 55 plus.

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Consumer Spending Index Hits a 28-Year Low

Another consumer index fell into negative territory during October driven by the rise in unemployment claims and the shaky housing market. The Deloitte Research “Leading Index of Consumer Spending” says this is the first time its “Index” turned negative in 28 years. The “Index,” comprising four components — tax burden, initial unemployment claims, real wages and real home prices — fell 10 basis points, from a revised gain of 54 basis points a month ago. In the past three months, the “Index” has fallen 175 basis points, the sharpest deceleration in the “Index” since October 1990. The fall in energy prices softened the decline somewhat. Deloitte Research noted that house prices fell by 13.4% in October and initial unemployment claims shot up in the most recent month and are now up 51% from a year ago. The research firm also projects energy prices will continue to go lower.

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ALL ABOUT ME PCS

Card program provider Serverside has launched “AllAboutMe PCS”, a turn-key system that provides
payment card design software, allowing card processors,
personalization bureaus and other ‘aggregators’ to re-sell the
templated card customization platform to their clients.
Through a simple administration console, aggregators can set up custom
interfaces of the card designer to match the brand requirement of an
issuer’s card program within a matter of minutes – and without the need
to directly involve Serverside. In addition to the core technology, aggregators are provided with sales
material to introduce card customization and support its ROI. They are
also given full instructional and administrative modules to provide the
world-class card customization technology seamlessly to their clients.
Serverside has a global network of top-tier hosting
facilities delivering card customization.

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M-PAYMENT INITIATIVES

Innopay and Telecompaper have released an update to
their annual report “Mobile Payments 2008” that reveals that market experts are now predicting that the
market will reach 10 billion by 2010. The updated report includes a detailed listing and graphical mapping of
more than 100 worldwide mobile payment initiatives including 27 initiatives
launched in the last four months and presents over a hundred pages of
analysis on the attraction of mobile payments and the critical issues that need to be
resolved to make them a success including: a lack of mainstream contexts niche opportunities exist but mainstream
payment contexts saturated with existing solutions; ecosystem – complex value chain with lack of co-operation;
standards – lack of interoperability and technology standards; technology/security concerns; incumbent solutions –
competitiveness of existing payment methods in
developing economies; regulator readiness/regulation not in line with the increasing
interest.

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QSR/C-Store Specialist is PCI Compliant

CA-based integrated retail management solution provider XProtean announced
that their QSR and Convenience Store Solutions achieved PCI compliance.
XProtean customers will now be able to assure consumers that their
businesses protect cardholder information as no credit card track data is stored once a
transaction is processed. As a leading provider of Integrated Retail
Management Solutions for small format retailers, XProtean completed PABP compliance
requirements to protect customers and their businesses.
The PABP audit was performed by Coalfire System, Inc, a Visa-approved independent
quality service assessor.

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FAS & MOBICOM

Mobicom’s Korean subsidiary, Mobicom Korea,
has sold shares of its common stock representing a 50% ownership interest to Korean based investment company
FAS Alliances, worth $.8 million. In addition, FAS Alliances has committed to invest an
additional $16.5 million in Mobicom Korea over the next sixteen months,
subject to Mobicom Korea achieving revenue and net income targets for
the years ending 2008 and 2009. Mobicom Corporation announced an operating loss for the quarter ended September 30, 2008.
Mobicom Corporation’s net revenues were $346,507 for the three months
ended September 30, 2008, compared to $49,904 for the same period in
2007, an increase of 594%. Nine month net revenues for the nine months
ended September 30, 2008 were $3,210,805 compared to $115,214 in the
same period in 2007, an increase of 2,787%. The net loss for the three months ended September 30, 2008 was
$1,025,162 compared to a net loss of $265,315, for the same period in
2007.

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FTPS to Offer Kalignite ATM Software Suite

ATM vendor KAL and Fifth Third Processing Solutions have signed an agreement to offer KAL’s
“Kalignite Suite of Multi-Vendor Windows” ATM software to its financial
institution customers. As a result of this agreement, Fifth Third will expand
support of Windows-based ATMs for financial institutions to include
terminal driving, processing, switching, monitoring, Windows ATM
software, and industry-leading ATM operating tools. This expanded
support affords financial institutions a greater opportunity to increase
their ATM-derived income and improve the customer experience while
managing operational expenses for their ATMs. KAL provides its clients ATM
and kiosk software as well as branch banking software through its
Kalignite Suite of Products.

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