PAYZONE & LYCAMOBILE

Payment and cash distributor Payzone announced that its retailers can now
offer top-ups for Lycamobile Pay As You Go SIM card.
Lycamobile enables customers to make high quality, low cost
international calls directly from their mobile without entering access
codes or PIN numbers. Retailers will be able to offer the top-up in
denominations ranging from GBP5 to GPB50. Lycamobile is on track to
acquire one million UK subscribers
within 12 months and is the third MVNO added by Payzone in recent weeks,
enabling Payzone?s retail network to capitalise on the fast growing
international calling market.

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Rising Libor Stress Tests Card ABS

U.S. credit card-based ABS will be facing a major test over the several
months. Fitch Ratings says the jump in one-month LIBOR rates, combined
with increasing charge-offs and lower yields, are creating a volatile
mix for securitizations. Earlier this month, LIBOR increased 200 basis
points from September to a high of 4.50%, while the prime rate is down
375 basis points from last September. The higher LIBOR rates come at a
time when excess spread is already being eroded by increasing chargeoff
rates and lower portfolio yield. Excess spread as measured by the “Fitch
Prime Credit Card Index,” was at 6.43% for data through August, down 122
basis points from one year ago, a trend that will continue to decline as
LIBOR remains high and charge-offs trend higher.
Fitch says it is concerned that certain trusts may hit triggers that
will trap excess spread starting as soon as next month.

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CARD MANUFACTURING

For the tenth consecutive year, the North American Region leads the world in the total number of cards manufactured with 9.1 billion units. Worldwide the unit market reached 19.2 billion cards last year, a 12% increase over 2006. The “Annual Card Manufacturing Global Market Survey” by the International Card Manufacturers Association also found that Asia Pacific manufactured 4.5 billion cards. Europe remained in the #3 position with just over 4 billion cards manufactured. Latin America reached the 1 billion mark in 2007 and Middle East/Africa manufactured 489 million cards last year. The ICMA noted that the value of the dollar affected the value of the overall global card market in 2007.

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Dropped Card Ignites a Political Fire

A credit card belonging to the campaign of Arizona Republican Rep. John
Shadegg was found at a Democratic Party office over the weekend. The
Arizona Republic and the Associated Press reports that Ryan Anderson, a
Shadegg campaign volunteer, was running errands Sunday when he noticed
the Democratic office in Tempe and went inside in hopes of getting a
Barack Obama sticker for his collection of political memorabilia. He
said he must have dropped the credit card when he pulled dollar bills
out of a pocket to pay for the sticker. However, the Arizona Democratic
Party has publicly demanded an explanation from Shadegg’s campaign, and
that it return anything taken from the office.
Shadegg is locked in a heated battle against Democratic challenger Bob
Lord in Arizona’s 3rd Congressional District.

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Major Economic Index Edges Up in Sept

The latest economic data suggest that conditions in the
non-financial economy are not falling apart. Data on hand reflect a
contracting economy, but not one in free fall. The Conference Board reported that the “Composite Index of Leading Economic Indicators” edged up 0.3% in September, following a 0.9% decline in August, and a 0.7% decline in July. It is the first increase in the last five months. Real money supply, consumer expectations, the interest rate spread, and the index of supplier deliveries all made large positive contributions to the index in September. Six of the ten indicators that make up the leading index increased in September. The Conference Board noted that the extreme volatility in the financial market, and the near freeze-up of credit, will no doubt weaken the economy further.

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EXPERIAN & DP INFO

Experian has acquired a 40% minority stake in the credit and business information bureau DP
Information Group. DP Info is the leader in the provision of credit and business
information services in Singapore across three key lines of services,
including credit and business information services, credit management
solutions and SME advisory and business bureau services. DP Info’s credit
and information portal, QuestNet, is currently used by 95% of Singapore’s
financial institutions and 75% of its legal firms. Its subsidiary, DP
Credit Bureau, was recognized by the Monetary Authority of Singapore to
operate a consumer credit bureau in May 2007 and started operations one
year later.

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Visa Unveils Accounts Payable Automation

Visa has unveiled a streamlined business expense management system as an enhancement to its portfolio of commercial payment products and services. The new “Visa Accounts Payable Automation” service is targeted at large and mid-sized businesses. “Visa AP Automation” integrates directly with ERP solutions and company expense management technologies. The integration capabilities are enabled by “Visa Data Integration Services,” a suite of new commercial payment tools and applications that includes connectivity, file mapping, data enrichment and transformation solutions. U.S. Bank will pilot the Visa data integration services. Also, to help enable seamless access to “Visa Purchasing Card” services, Visa has established alliances with global ERP provider Lawson and data integration solutions provider Hubspan.
Visa cited industry research which shows that fully automated companies can save $10.87 per payment.

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FREESTAR 2Q/08

Freestar Technology has achieved record revenues for the fiscal year
ended June 30, 2008 of $6,259,707, a 66% increase of approximately
for the prior year ended June 30, 2007.
Net cash used in operating activities decreased to $3,713,921, a 35%
decrease from the prior fiscal year. The Company processed a total of
19,019,055 transactions during the fiscal year ended June 30, 2008, a
modest decrease from the 19,443,999 transactions processed during the prior
fiscal year. Transaction processing and related revenue increased to
$2,076,309 for the year ended June 30, 2008, compared to $1,945,512 during
the prior fiscal year, an increase of approximately 7%.
Dramatic increases in consulting revenue and hardware sales related
revenue were the primary components of the increase in revenue, with
transaction processing and related revenue showing modest increases as
well. Compared to the prior fiscal year, consulting revenue increased by
115%, hardware sales and related revenue increased by approximately 164%
and transaction processing and related revenue increased by approximately
7%.

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Business Owners Voting for Cash Flow

Six out of ten small business owners indicate they would cross party
lines this year to vote for the U.S. presidential candidate that they
feel will do the most to help their business. About 56% of those
participating in the recent survey say the current credit crunch has
adversely impacted their business. The research by management consulting
firm George S. May International revealed that of those respondents that
said they were being impacted by the credit crunch, 13% said they have
had to dip into their retirement savings, 11% said they have had to use
personal savings, 11% said they have had to use credit cards to help
keep their business going, and 38% said they are waiting this economic
turmoil out and in the meantime going into debt. Meanwhile, 27%
said they were exploring other ways to handle the financial problems
facing their business. Of the impacted group, 23% cited late-paying
customers and vendors; 14% said their lines of credit were being pulled;
9% said they were having difficulty making payroll; 23% said all of the
above; and 31% cited other ways, which were not specified.

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VALIMO & TURKCELL

Multipurpose ID solution provider Valimo announced that
Turks have made over 1.8 million mobile transactions after only 19
months from implementation.
Turkcell’s subscribers can legally sign documents and
confirm transactions, including money transfers and internet banking,
securely with their mobile phones. Already more than 13 banks in Turkey
allow their customers to use
Turkcell’s “Mobile Signature Service” to authenticate themselves for online
banking and to digitally sign bank transactions. It is possible to withdraw
money from ATMs using mobile signatures. Customers can also apply for a
loans service on a bank’s website through this service. If the amount
requested is
approved, it can be withdrawn directly from an ATM with the mobile signature
service. Turkish customs authorities also utilise mobile signatures to
speed up
customs processing by allowing mobile transactions and signing of
documents. Turkcell is the leading GSM operator in Turkey with 35.4
million postpaid and prepaid customers as of June 30, 2008.

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CHARGE Anywhere Releases Java Software

POS security provider CHARGE Anywhere has released “CHARGE Anywhere
v2.0.0” mobile payment and POS software solution on Java 2 Micro Edition
phones. CHARGE Anywhere is adding the Java environment to its growing
list of platforms, including Windows Mobile and BlackBerry OS, so that
its PA DSS application will be available to more users across a variety
of device types.The introduction of the CHARGE Anywhere application on
phones supporting J2ME gives merchants an even wider range of mobile
phones and smartphones to choose from. With CHARGE Anywhere’s secure
mobile payment software on mobile phones, merchants don’t have to buy
costly equipment in order to process credit card payments anywhere,
anytime. By utilizing existing mobile phones, merchants can start
processing transactions in just a few minutes with a simple download
directly from the phone.

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Consumers Osculant Over E-Pay & M-Pay

New research reveals an increasing demand for online funds transfer
services among consumers and a growing interest in person-to-person
online payments and mobile banking. The annual study for CashEdge found
that consumers are moving their money for a variety of reasons,
including: to transfer money to a checking account (66%); to transfer
money to a general purpose savings account (52%) and to take advantage
of a higher interest rate (49%). When respondents were asked how they
perceive mobile banking, nearly 60% said that they feel mobile banking
is equally secure or more secure than online banking. When asked how
likely they would be to use mobile banking technology, if offered by
their bank, the respondents revealed similar results – 60% would be
likely to use and 21% would be extremely likely to use.

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