HSBC MERCHANT SERVICES

E-payment platform provider Global Payments has created a joint venture with HSBC Bank to provide payment processing services and merchant acquiring services to over 135,000 merchant outlets.Global Payments paid HSBC $439 million in cash to acquire a 51% ownership
in the joint venture with HSBC to control the remaining 49% and
contributed its existing merchant acquiring business in the United Kingdom to the joint venture. In addition, HSBC and Global Payments have entered into a ten-year marketing alliance in which the bank will refer its customers to the joint venture for merchant payment processing services. In 2007 HSBC’s merchant acquiring business in the
United Kingdom generated revenue of approximately $229 million (114 million pounds Sterling). Global Payments expects this transaction will be accretive to diluted earnings per share in the first year.

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VISA PAYWAVE

Visa payWave has increased its global reach thanks to its enhanced
contactless technology specification. Implementing “wave and go”
technology, Visa’s new “Contactless 2.0″ solution will market toward the
24.8 million consumers worldwide to use chip-embedded credit cards for
contactless payments in 2008, a figure to double within five years
according to Javelin Strategy & Research. For example, Visa and Banco
Bradesco are providing Brazilian consumers with contactless payment
cards, in China:, The Industrial and Commercial Bank of China (ICBC),
Beijing Parkson Shopping Center and Visa are introducing
the”Peony-Parkson” Visa payWave Credit Card, Visa and Starbucks are
providing contactless solutions to consumers in South Korea, Citibank
has issued the Visa payWave in Taiwan and in Thailand, Visa Contactless
is used by commuters on the Bangkok Mass Transit System. Additionally,
trials are soon underway in Australia, Canada, China, Brazil, France,
Guatemala, Hong Kong,
Indonesia, Italy, Korea, Malaysia, Poland, Singapore, Spain,
Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and the United
States.

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Security a Driving Factor in Selection

A new survey shows that security, online experience, rewards programs and interest rate are driving factors in how consumers make decisions when selecting an issuer or choosing a card at the point of sale. Javelin Strategy & Research surveyed three demographic age groups for this study — “Baby Boomers” (1945-1965), “Gen X” (1961-1981) and “Gen Y” (1979-1999). Across all three age groups, security from identity fraud is paramount with more than 80% citing this as an important concern. Javelin also cautions that, as fear of data breaches rise, security at the point of purchase increases in importance to consumers.

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PROCASH 2000/4000

CIMB Bank Berhad has licensed and will be installing 680 Wincor Nixdorf
cash dispensers using the latter’s cash deposit technology. With
implementation already underway, deployment of the dispensers is
expected to be completed by the end of 2008 to allow banks to benefit
from a cash-oriented economy with high volumes of circulating
low-denomination banknotes. CIMB Bank ATMs offer customers self service
cash dispensing, deposit and withdrawal transactions 24/7 through such
machines as the Wincor Nixdorf “ProCash 4000” and monofunction “ProCash
2000” dispensers.

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MasterCard Launches a Rock Promotion

Jon Bon Jovi, Eric Clapton and Kenny Chesney have teamed up with MasterCard to offer five lucky MasterCard cardholders in the U.S. the opportunity to meet a rock legend as part of the “MasterCard Roots of Rock” Sweepstakes MasterCard has developed a site at priceless.com for consumers to experience the music and has collaborated with each of the three artists to create a virtual tour of the places where they cut their teeth on the road to music royalty. Consumers will be able to interactively explore these artists’ musical histories and chart each of their rises to fame. The site also features free Universal Music Group downloads for MasterCard cardholders, as well as comprehensive information on all three artists including bios, exclusive photos, concert tour dates, links to purchase the artists’ latest albums and to their official websites. Free video downloads from the PBS series Soundstage Presented by MasterCard are also available for MasterCard cardholders. Additionally, 252 customer financial institutions are in the promotion via direct mail, in-branch materials and promotional copy.

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NETS & PKK

Northern European Transaction Services (NETS) has acquired Pankade
Kaardikeskus AS (PKK) Estonian national card transaction processor. With
this, NETS embarks on the Baltic Regional market, is closer to becoming
a leading European card transaction processor and can now provide a
broader platform for processing of card transactions to card acquirers.
Providing card transaction processing through cost efficient solutions
to large merchants, NETS processes over 2.7 billion card transactions
annually. The NETS alliance European card transaction processor serves
primarily acquirers in the Nordic countries providing solutions
compliant with all international standards and requirements.

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TSYS to Approve ExaDigm Terminals

POS terminal provider ExaDigm and TSYS Acquiring Solutions have entered into an agreement to begin the Class A approval process for ExaDigm terminal payment solutions. TSYS will support the majority of ExaDigm’s North American terminal requirements including receiving, quality assurance testing, support and deployment. TSYS will also provide innovative and customized managed services, including help desk support to respond to ExaDigm customer calls, helping to resolve issues efficiently and providing superior customer service. ExaDigm’s PC-based, fully modular payment solutions provide technology innovations such as integrated RFID readers, interchangeable communication modules, and the ability to adapt to changing technologies easily and rapidly, making obsolescence and subsequent swap out programs a thing of the past.

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Visa Changes Rule on PIN Debit Cards

Visa has rescinded a rule that required merchants to treat Visa-branded debit cards differently when used as a PIN-debit card (and processed via non-Visa networks) from the same cards when used as signature debit cards and processed on the Visa network. The Department of Justice said an ongoing antitrust investigation prompted the Visa policy change. The DOJ was investigating whether the Visa rule adversely affected competition in the debit card industry by restricting certain PIN debit transactions, particularly small-value and Internet transactions, and by potentially interfering with the introduction of new types of PIN debit services. Visa has for some time allowed banks to permit some types of merchants to waive the signature requirement for certain signature debit transactions. While permitting signature waiver, the Visa operating regulation the DOJ was investigating had prohibited banks from allowing merchants to waive entry of a PIN for most non-Visa debit transactions initiated from Visa-branded debit cards, including “small ticket” transactions and almost all Internet transactions. Visa’s new regulations allow banks to provide merchants the option of waiving the entry of a PIN. Visa has also amended its operating regulations to require that banks notify their cardholders that transactions not authenticated by a PIN or a signature might be processed via a PIN-debit network and not by Visa.

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MC TRAVEL SURVEY

MasterCard Worldwide has launched the “MasterCard Travel Season.”
According to the recent “MasterCard Worldwide Consumer Lifestyles Survey”,
78% of consumers in the UAE plan to travel for pleasure and spend more
when abroad. The majority of UAE travelers own some sort of payment card:
71% hold a credit card, 78% are holders of a debit card and 48% use
prepaid cards.
According to the survey, respondents increasingly feel debit cards are
more secure than cash (76% vs. 49% in the last survey) and that debit
cards offer more control (71% vs. 44%)
and are widely accepted (65% vs. 38%) and convenient (67% vs. 33%).
The most popular reason for using a credit card is that it is more
secure than cash. Across ME&L, 63% thought
credit cards were widely accepted (against 52% in the last survey), 62%
said a credit card gave them better control over their spending (against
38% in the last survey) and 60% thought a credit card is more convenient
(as opposed to 46% in the last survey).

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U.K. Card Volume Rises 10% in 2007

The total value of plastic card payments received by British merchants, retailers and service providers increased slightly more than 10% last year to GBP 345 billion. Debit cards accounted for 62% or GBP 221 billion of total spend. Credit card spend reached GBP 133 billion during 2007. According to the UK payments association APACS, debit card spending was up 13% in 2007 while credit card spending rose 6%. This is the second year in a row that plastic spending topped cash spending. APACS noted that credit card spending up until the end of May increased by only 1.2% – below the rate of inflation, and the average value of a credit card purchase in a supermarket has actually fallen by GBP 1 to GBP 34.33. Last year total cash spending was GBP 265 billion. The trade group also noted that check payments last year totaled GBP 194 billion.

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SAMSUNG & INSIDE

NFC chipset provider INSIDE Contactless has added Samsung
Ventures America to its active investor community that includes Nokia
Growth Partners,
Motorola Ventures, HID Global, Sofinnova Partners, Vertex Management,
Vertex Ventures,
Siparex, GIMV, EuroUS
Venture, Granite Global Ventures and Visa Ventures who have provided a total
of nearly 28 million euros to allow the company to accelerate
its international presence and broaden its product portfolio.

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