FundsTech Teams with Card Specialist BIPS

FL-based FundsTech has added Business Intelligent Processing Systems, as a strategic partner. BIPS is a merchant account and business to international business trade transactions provider, enabling payments through real time bank transfer networks, local bank wires, and credit and debit card association products. BIPS merchants process over a billion dollars. As a Strategic Partner they will expand FundsTech’s product distribution throughout Canada, Asia Pacific, Latin America, Caribbean, Central and Eastern Europe, Middle East and Africa to their new and existing clients with focus on prepaid card products. Business Intelligent Processing Systems develops and manages commercial payment systems and risk management solutions. FundsTech provides a low cost, state of the art prepaid debit card solution for the unbanked population worldwide.

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GPN & POSTBANK

Global Payments Europe transaction processor has inked a 5-year
processing agreement with Postbank BH Sarajevo. Under the
agreement, the processor will provide the bank processing services such
as card personalization and authorization, PIN management, fraud
monitoring and prevention, SMS alerts, ATM and POS networks, as well
as call center services. Postbank BH has been privatized with Poteza
Adriatic Fund as major shareholder with 48% ownership and is a partner
of Bosnian Post Office, a network in Bosnia and Herzegovina with 249
branches.

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ARINC Unveils a On-Board Transaction Module

MD-based ARINC has introduced a wireless data communications module designed to support airlines’ on-board sales and credit card transactions. The “ARINC MCG” provides wireless connectivity and a recharging power source for in-flight electronic devices, allowing airline crews to download sales data wirelessly after a flight. It is the first on-board solution to offer this capability. By adopting the MCG system for wireless downloading, airlines can eliminate the need for crews to remove point-of-sale devices from the aircraft after each flight. The MCG supports wireless data downloading by several devices simultaneously in a single session. Airline crews can leave point-of-sale devices on board the plane, recharge them with the MCG power source, and receive wireless inventory uploads. ARINC Incorporated provides transportation communications and systems engineering.

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VISA CONSUMER SPENDING

VISA card spending in Sri Lanka and Thailand continued growth for 1H07
due to tourism recovery. In 2007, Bali VISA spending grew 27% and Phuket
spending grew by 21% since the same period in 2006. Bali saw a 47%
drop in tourism after terrorism in 2002, an area which accounted for 37%
of all tourism in the area. However, compared with 1H06, VISA spending
is up by 39%. Phuket saw an 89% drop in tourist arrivals since the 2004
tsunami, down 23% between January 2004 and January 2005. Visa
generates over $4.8 trillion in sales volume worldwide with an ATM
network that offers cash access in more than 170 countries.

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AmEx Partners with CEA for CEknowhow Program

The Consumer Electronics Association announced a partnership with American Express to help celebrate the fifth anniversary of the “CEknowhow” retail training program. The American Express sponsorship will enable the CEknowhow curriculum to be broadly distributed throughout the retail community. CEknowhow, while remaining brand neutral, introduces retail sales associates to the fundamental information needed to understand and sell products like digital televisions, digital cameras and audio systems and accessories needed to ensure a positive customer experience. The Consumer Electronics Association is a trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. Combined, CEA’s members account for more than $140 billion in annual sales. Merchant Services is the merchant network of American Express, which acquires and maintains relationships with millions of merchants around the globe.

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iPayment Q2 Revenues Inch Up by 2% Y/Y

Nashville-based iPayment reported that revenues increased 2% to $193 million for the second quarter. Net income soared to $1.3 million compared to a net loss of $6.6 million for 2Q/06.. Revenues, net of interchange, were $80.2 million for the second quarter, compared with $79.4 million for the second quarter of 2006. Revenues increased due to an increase in new merchant account activations through iPayment’s independent sales groups and direct sales channels. In January, the Company adopted a plan to close its Westchester, Illinois office and migrate all services performed in that office to its office in Calabasas, California. Also, in January, the Company entered into a Sponsorship Agreement with First Data Merchant Services and Wells Fargo Bank. For complete details on iPayments’s latest results visit CardData ([www.carddata.com][1]).

REVENUE HISTORICAL
2Q/06: $189.2 million
3Q/06: $187.0 million
4Q/06: $187.0 million
1Q/07: $177.7 million
2Q/07: $192.7 million
Source: CardData (www.carddata.com)

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

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PUREPAY ACQUIRES CREDITRON

Purepay has acquired Creditron for $100 million to leverage their network
and resources. In turn, this acquisition will promote the growth of Purepay
through Creditron’s lockbox and remittance solutions. Purepay acquires
growing companies and extends their existing capabilities with the
intent of
operating the companies’ long term. Creditron provides solutions for 200
North American customers and process over 200 million transactions
annually, representing over $50 billion.

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Synovate Re-Energizes its Mail Monitor Service

Synovate’s Financial Services Group has re-appointed Andrew Davidson Vice President of Competitive Tracking Services Davidson transferred back into the role from his previous position at Synovate, in which he oversaw domestic and international custom market research projects for clients in the Financial Services industry. Davidson will focus on further developing the “Mail Monitor” service to meet the growing needs of its expanding client base, which include card issuers and brands as well as stock analysts and consultants. Synovate is a provider of research solutions.

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Nearly All Teens Have a Gift Card Experience

A new survey shows that 98% of all teens between the ages of 14 and 19 have either bought or received a gift card. The national “Teen Gift Card Survey,” commissioned by Comdata Stored Value Solutions, also found that teens purchased almost double the number of gift cards they did in 2006 (7.6 vs. 4.3 cards – a 77% increase). Further, the average loaded dollar amount on cards given went from $28 to $33. Teens also reported that 46% of the presents they give are gift cards – a 12% increase from 2006. Males are still more likely to give gift cards than females. Also, gift card malls, a collection of various retailers’ gift cards typically found in convenience or grocery stores, continue to gain acceptance. Forty-five percent (up from 29% in 2006) of teens say they have purchased a gift card at a gift card mall and 21% (up from 11% in 2006) say they prefer to buy them there.

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Merchant e-Solutions Now Offers PIN Debit

CA-based Merchant e-Solutions has enhanced its proprietary payment system to support PIN-based debit card transactions. In addition to processing PIN-based debit card transactions, merchants who use MeS payment solutions will benefit from support for e-commerce, mail order, business-to-business, and card present payment processing needs while enabling transactions to qualify for the lowest possible card association fees; support for recurring and installment payments without the need to store card numbers; the use of multiple business names through a single merchant account and the automatic reversal of unsettled transactions; a streamlined Application Program Interface, payment services engineered to eliminate the need for merchants to store credit card information and 24/7 support by U.S. based customer service representatives.Merchant e-Solutions is an Internet-based payments processing company.

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ABS Monthly Payment Rates Rebound in June

Monthly payment rates, the amount that cardholders pay on their credit card debt, rose for the second month in June. Among credit card-backed securities, the MPR hit 20.17% in June after dipping to 19.58% in May. The MPR has remained fairly stable in the first and second quarters and remains consistent with historical levels. According to FitchRatings, the gross yield increased to 18.94% in June from 18.23% in May and was up 97 basis points above year-ago levels. Fitch says the volatility in gross yield in the first quarter mimicked the volatility in the first quarter of 2006 and remained slightly elevated compared with the second quarter of 2006.

ABS METRICS
YIELD MPR
Jun 06: 17.97% 21.00%
Jul 06: 17.63% 20.71%
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Oct 06: 17.58% 19.30%
Nov 06: 17.96% 19.82%
Dec 06: 17.78% 19.32%
Jan 07: 18.28% 19.27%
Feb 07: 17.70% 20.80%
Mar 07: 18.21% 18.76%
Apr 07: 19.23% 21.09%
May 07: 18.23% 19.58%
Jun 07: 18.94% 20.17%
Source: FitchRatings

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