V/MC U.S. CC GDV Rises a Mere 3% in 2Q/08

Declining cash dollar volume (CDV) has dragged down the gross dollar
volume (GDV) of Visa and MasterCard credit cards in the U.S. Based on
second quarter statistics released by Visa last week and by MasterCard
three months ago, U.S. credit card GDV increased a mere 3% year-on-year,
from $397 billion to $409 billion. MasterCard reported this morning that
third quarter U.S. credit card GDV fell 1.3%, compared to 3Q/07.
Comparing second quarter 2008 to 2007, purchase dollar volume (PDV) on
Visa and MasterCard credit cards increased 4% and CDV dropped 3.5%,
according to CardData (www.carddata.com). Sequentially, GDV is up 6%,
PDV is up 9% and CDV is down 7%. CDV on U.S. Visa and MasterCards peaked
in the fourth quarter of 2006 when it hit $63 billion. For complete
details on Visa and MasterCard third quarter performance visit CardData
([www.carddata.com](http://www.carddata.com)).

VISA & MASTERCARD DOLLAR VOLUME
($ billions)
GDV PDV CDV
2Q/06: 380 319 61
3Q/06: 385 322 63
4Q/06: 400 337 63
1Q/07: 362 305 57
2Q/07: 397 341 57
3Q/07: 404 345 60
4Q/07: 424 365 60
1Q/08: 385 326 59
2Q/08: 409 355 55
Source: CardData (www.carddata.com)

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DATACARD ID TOOL

Datacard Group has released the “Smart Card Designer Tool” for Datacard
identification software personalization of smart cards.
The “Designer Tool” reduces the time and costs
associated with developing customized smart card applications, enabling
issuers to design smart chip encoding processes just as easily as
designing the layout of a card. Together with a Datacard card printer,
identification software and smart card coupler, this tool provides a
completely integrated solution for smart card personalization. The tool
requires no special programming experience and allows users to test
their designs with the click of a button. Datacard Group is a provider of secure ID and card
personalization solutions. The company’s portfolio includes systems for
high-volume card issuance, card delivery and fulfillment, secure ID
issuance and passport production, plus extensive service and supply
offerings. Datacard Group serves customers in more than 120 countries.

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VeriFone PINpad 1000SE Goes Contactless

VeriFone has introduced the contactless “PINpad 1000SE” and unveiled
“SingleCI” (Single Contactless Interface) programming interface with
development tools that allows acquirers and developers to leverage
existing contactless investments, adapt to future needs, and take
advantage of the company’s entire contactless portfolio. SingleCI is
compatible with today’s industry-leading contactless interfaces. The
PCI PED-approved contactless “PINpad 1000SE” combines PIN entry and
contactless into a single device that reduces costs and support. The
“PINpad 1000SE” contactless version also supports non-payment
applications, such as MiFare, and will be commercially available in the
first half of 2009. “SingleCI” provides a single interface to
VeriFone’s entire contactless portfolio, so developers can write one
program that will operate on any VeriFone contactless system. It
enables acquirers to leverage their existing investments in contactless
platforms.

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HICAPS & OPTIMUM

National Australia Bank subsidiary HICAPS, a
ancillary health claims and payments service, has purchased an additional 4,000
“Optimum T4210” multi-application payment terminals from Hypercom, making it a total of 8,000
of high security “T4210s” that HICAPS has ordered this year.
The “T4210” terminal will enable HICAPS to have a solution
in the allied health care claims system which covers providers such as
dentists, optometrists, physiotherapists and other non-general
practitioners. The terminal enables providers to process payment card
transactions, private health fund claims and Medicare Easyclaim on the
same terminal.

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US Bank Testing the Visa Micro Tag in Nov

Visa’s smallest “payWave”-enabled device that attaches to a key ring,
is being tested this month. U.S. Bancorp says it is launching the pilot
program for the new “Visa Micro Tag” to collect feedback on design,
functionality and ease-of-use. U.S. Bank plans to distribute more than
4,000 prepaid “Visa Micro Tags” to employees this month. Employees
across the country will receive the “U.S. Bank Visa Micro Tag” which is
tied to a prepaid U.S. Bank Visa gift account. Visa first introduced the
miniature solution in 2007 that can be used with credit, debit or prepaid accounts. The “U.S. Bank Visa Micro Tags” were manufactured by Giesecke & Devrient using the “MicroPass” chip from INSIDE Contactless. The “Visa Micro Tag” is not available in Europe.

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SCA LEAP

The Smart Card Alliance has created the Leadership,
Education and Advancement Program (LEAP) for individuals interested in
continuously improving their knowledge and professional proficiency in
the smart card industry. Beginning in 2009, LEAP members also have the
option to earn a Certified Smart Card Industry Professional (CSCIP)designation.
CSCIP is a standardized certification program available to all LEAP
participants that recognizes industry professionals that have advanced
levels of knowledge and experience, and have passed a multi-part exam
developed by leading smart card industry experts.
LEAP membership is open to all individual professionals working in the
smart card industry in the United States and worldwide, regardless of
whether their organization is a current member of the Smart Card Alliance.

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GPN Names Intl President & New EVP/CFO

Global Payments has promoted Joseph Hyde to President/International and
David Mangum, formerly with CheckFree, to EVP/CFO. Hyde, currently the
company’s Executive Vice President and
Chief Financial Officer, will be assuming the position of President –
International and will oversee the company’s businesses outside of North
America, including those in Europe, Russia and Asia. Mangum served as
Executive Vice President and Chief Financial Officer for CheckFree
Corporation, a global leader in financial electronic commerce. The
company’s revenue grew from approximately $300 million to over $1.0
billion during that period. In 2007, Mangum was recognized by
Institutional Investor Magazine as one of “America’s Best CFOs.” In his
role, Mangum will be responsible for all of the company’s global
financial operations, including Finance, Treasury, Accounting, Tax and
Investor Relations.

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RFID PROJECTIONS

The worldwide RFID market is expected to experience a 15% CAGR from 2008 through 2013. Traditionally applications with single-digit and low-double digit five-year CAGRs continue to dominate current and near-term RFID market revenue share. ABI Research says the current market is $5.3 billion but may hit $9.8 billion by 2013. It is still too early to tell what impact the state of the global economy will have on the RFID market. Investments are still being made in RFID companies, consolidation continues, and contracts are being awarded.

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Hypercom & MagTek Team for HyperSafe Secure

Hypercom has introduced a solution that encrypts cardholder data during
transaction processing so that sensitive information is never exposed.
Teaming with MagTek, Hypercom announced “HyperSafe Secure.” The new
solution will integrate into Hypercom’s products through software or
hardware and will protect both swiped and hand keyed transactions.
“HyperSafe Secure” provides a multi-layered approach that exceeds the
latest PCI requirements. In addition to encryption, it leverages a
dynamic digital authentication solution that detects counterfeit credit,
debit, gift and ATM cards in real time. “HyperSafe Secure” will be
available on Hypercom’s “T4200” countertop products, “M4200” mobile
payment platform and “L4150” multi-lane device.

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NXP MIFARE

Semiconductor NXP and Renesas Technology have expanded the licensing agreement on NXP’s “MIFARE” technology. This
agreement is aiming to build momentum for the availability of advanced
payment and Near Field Communication (NFC) offerings in contactless
infrastructures. The license agreement supports the industry’s need for extension of
contactless applications to new form factors and will further strengthen
Renesas’ global position in the secure MCU markets for high-end mobile
and dual-interface banking applications. Renesas plans to provide a full
range of security products with MIFARE to meet the requirements of
mobile and contactless payment industries world-wide.
The agreement is set to drive the emergence of new and advanced
over-the-air mobile phone services based on NFC, such as electronic
ticketing and payment, delivering convenient and user-friendly connected
services to consumers while allowing mobile network operators to
increase average revenue per user.

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Firethorn to Power iPhone Mobile Banking

AT&T and Firethorn Holdings have released “Mobile Banking on AT&T” for
iPhone. “Mobile Banking on AT&T” lets users securely and efficiently
manage their finances, including checking balances and transaction
history, transferring funds, receiving offers, viewing and paying bills,
and tracking rewards points. The service is now available for all
Firethorn financial institution partners, including America First Credit
Union, Arvest Bank, BancorpSouth, Carolina First, FirstBank, Mercantile
Bank, SunTrust, Synovus, USAA and
Wachovia. Additionally, iPhone customers will have access to any new
financial institution added in the future. Firethorn, a Qualcomm
company, is a mobile commerce enabler. The Firethorn mobile wallet is a
single, secure, certified application embedded on select wireless handsets.

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DEXXIS CARDS

Digital security provider Gemalto has equipped over 300 shopping malls worldwide with its “Dexxis
Instant Issuance” solution, resulting in immediate delivery of one million
credit cards per year. With “Dexxis Instant Issuance”, users get their card in just a
few minutes with the same high security level and quality of service as
traditional personalization centres offer. The solution enables issuance
of magnetic stripe cards as well as EMV cards. For the bank, tangible
benefits include logistics cost reduction and additional revenues
generated by transactions carried out during the usual issuance cycle.
Furthermore, market studies have indicated that on-the-spot issuance
gives rise to card activation of close to 100%. This means that all the
cards delivered are actually used and the investment is fully productive.
Some of Gemalto’s clients personalize and issue up to 200 cards per week and per branch.

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