Fifth Third to Offer Online Resources’ CollectPay

Online Resources announced that Fifth Third Bancorp has signed a multi-year referral agreement to make Online Resources’ biller-direct payment service “CollectPay” available to its commercial treasury management clients. Under the agreement, Fifth Third will offer “CollectPay” to its commercial clients, which include telecommunications, cable, healthcare, utility, receivables management, public funds, and other businesses. The service will complement the Bank’s suite of cash management services, by enabling clients to offer their customers multiple electronic payment options, and minimize their payment processing costs. Online Resources serves over 10 million end-users and processes $100 billion in bill payments annually. Fifth Third Bancorp is a diversified financial services company with $104 billion in assets and operates 18 affiliates with 1,181 full-service Banking Centers.

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AmEx U.S. Q3 Payment Card Profits Rise 6%

American Express reported that its U.S. Card Services division posted third quarter net income of $592 million, up 6% year-over-year. U.S. gross dollar volume rose 13% and the AmEx cardbase expanded by 10% during the third quarter, compared to the year-ago quarter. Total net revenues for the first quarter increased 12% to $3.59 billion. Total U.S. card loans rose 37% to $40.0 billion. Delinquency on U.S. card loans (30+ days) rose to 3.1% versus 2.7% in the prior quarter and 2.7% for 3Q/06. Charge-offs on total U.S. card loans remained steady at 3.7% for the past two quarters, compared to 3.1% one-year ago. Card volume in the U.S. hit $115.2 billion, up 13.2% from the year-ago quarter. The total number of domestic cards-in-force grew to 51.7 million cards, compared to 46.8 million for 3Q/06. AmEx says marketing, promotion, rewards and cardholder services expenses increased 7% from the year-ago period primarily due to higher rewards costs partially offset by a targeted decrease in marketing and promotion expenses. Human resources and other operating expenses increased 5% during the quarter. For complete details on American Express’ third quarter results, visit CardData (www.carddata.com).

American Express U.S. Card Portfolio Snapshot
3Q/07 2Q/07 1Q/07 4Q/06 3Q/06 Chng
Volume $115.2 115.7 105.4 109.7 101.7 +13.2%
Cards 51.7mm 50.5 49.3 48.1 46.8 +10.5%
Source: CardData (www.carddata.com)

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Mobile Payments Specialist Firethorn Names a COO

GA-based mobile banking and payments enabler Firethorn Holdings has named Rod Dir, previously COO at Cincinnati Bell, as its COO. At Cincinnati Bell, Dir oversaw all of the company’s business segments including wireless, broadband, local access, long distance and data center and managed services. He was responsible for the daily management and performance of consumer and business sales, marketing, product development, engineering, network and customer care operations. Prior to Cincinnati Bell, he served as Chief Operating Officer of Powertel (now T-Mobile), an Atlanta-based wireless carrier that operated in 12 states and 34 markets throughout the Southeast. Firethorn is a mobile banking and payments enabler supported by the nation’s leading financial institutions and wireless carriers.

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ID DATA GROUP

ID Data Group has been awarded a retailer contract for the company’s
loyalty program which is projected to generate revenues of nearly
GBP 1.5 million for 2H08. ID Data will implement its key fob with POS
technologies such as barcodes, magnetic stripe and RFID. With this,
ID Data will deliver retail solutions for personalized cards that are needed
within a short period of time. Comparable loyalty programs recently
launched by the company include Tesco Clubcard, Boots Advantage and
Nectar.

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TSYS Third Quarter Net Income Climbs 27%

TSYS reported that third quarter profits rose 27%, hitting $68.8 million. Revenues of $457.6 million represented a 4% rise over 3Q/06. The Company says revenue growth continues to pick up steam with international revenues growing 38% year-to-date over 2006. During the third quarter TSYS signed an issuer processor agreement with Discover Financial Services; signed a long-term agreement with the U.K.’s Nationwide to process its credit card account portfolio and to build, operate and manage a new customer care center for member support services; signed Tinkoff Credit Systems, a Moscow-based consumer lending bank, to supply its card management and authorization system; launched a new money transfer card in the UK with Lloyds TSB; and announced a multi-year agreement to provide merchant processing services to Veracity Payment Solutions headquartered in Atlanta. Based on GAAP, TSYS’ estimates 2007 net income to increase between 0%-2% as compared to 2006. For complete details on TSYS third quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
4Q/06: $503.9 million
1Q/07: $429.6 million
2Q/07: $460.2 million
3Q/07: $457.6 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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HOME CAPITAL & PAYMENT SERVICES

Home Capital Group has completed its acquisition of Payment Services
for which 11,013,629 common shares will be tendered, or a 95.87%
majority shareholding. Home Capital has met the requisite 66 2/3% of the
common shares being validly deposited. Home Trust provides deposit,
mortgage lending, retail credit and credit card issuing services throughout
Canada while PSiGate provides Internet security and trusted commerce
solutions for North American businesses.

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Barclays Brings Miles & More MC to the USA

Barclays has launched a U.S. version of its popular “Miles & More” program. “Miles & More,” the frequent flyer program of Lufthansa, is Europe’s largest frequent flyer program. The new card combines the spending power and amenities of a “Barclays World MasterCard” with the benefits of “Miles & More.” The card is available with either a $59 annual fee for the standard program or $79 annual for the “Premier” program. The standard program offers 15,000 bonus miles after the first purchase; no mileage expiration; the ability to earn up to 10,000 additional bonus miles for balance transfers; and one mile for every dollar spent on all purchases. The “Premier” program offers 20,000 bonus miles after the first purchase; the ability to earn up to 15,000 additional bonus miles for balance transfers; two miles for every dollar spent on any Lufthansa or other “Miles & More” integrated airline partner ticket purchase; and one mile for every dollar spent on all other purchases.

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Heartland Payment Acquires General Meters

NJ-based Heartland Payment Systems has acquired General Meters, a developer and provider of one-card systems for college and university campuses. General Meters provides the “University One-Card System” which combines security access, on-campus dining and vending, employee record keeping and copier/printer/fax control – onto one ID card for students, faculty and staff. Heartland recently launched the first university contactless payment system in North America at Slippery Rock University in Slippery Rock, PA. Heartland will add its contactless technology to the General Meters product. General Meters? more than 150 clients will be amongst the first to be able to implement this solution. Financial terms of the merger were not disclosed.

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Electronic Payment Exchange Unveils BuyerWall

DE-based Electronic Payment Exchange has unveiled the first and only cardholder data protection system that allows merchants to eliminate data breach liability yet still control the entire customer experience. The new “BuyerWall” processes, transmits and stores cardholder data ensuring it never enters the merchant’s system. The patent-pending solution is based on the principal that if a merchant never has the credit card numbers, it is in no danger of exposing the data if it is compromised. “BuyerWall” is different thanks to EPX’s straight-through payment processing capability, eliminating many of the hand-offs and redundant storage points of the typical credit card transaction. “BuyerWall” alleviates a merchant’s need to store cardholder data, as it issues a “BuyerWall Recognized Identification Code” to the merchant in place of the data.

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mFoundry’s Spotlight Mobile Embraced in Texas

mFoundry announced the selection of mFoundry’s “Spotlight” financial platform by TX-based IBC Bank. IBC will leverage mFoundry’s Spotlight Mobile Banking solution to provide IBC’s customers with real-time, on-demand access to their IBC checking, savings and credit card accounts. IBC customers will be able to securely access account balances and also enjoy comprehensive search and retrieval of their account transaction histories, the ability to transfer money between accounts, the ability to retrieve and pay their bills, and the option of searching for IBC branches and ATMs. Additionally, in an industry first, IBC will offer its mobile banking services in both English and Spanish to address its ethnically diverse customer base.

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