Coinstar Money Transfer Service Expands

Self-service coin counting specialist Coinstar has inked an agreement to acquire GroupEx Financial Corporation in a deal valued at approximately $50 to 60 million. GFC provides electronic money transfer services between the U.S. and Latin America, and currently operates a network with approximately 1,650 send agents in 23 states servicing 13 countries. GFC has achieved a 240% CAGR in electronic transfers from 2004 through 2006. Following the deal the Coinstar Money Transfer service will be offered at more than 31,000 agent locations in 143 countries. The purchase includes a $60 million cash payment upon closing, at which time Coinstar will receive the cash on GroupEx’s balance sheet, which is expected to be approximately $12 million. In addition, there is a contingent payment of up to $10 million within 15 months of closing if certain performance hurdles are met. This is expected to produce a net purchase price of between $48 million to $58 million before cost savings or synergies; however, the exact net amount will not be known until closing. Coinstar products and services can be found at more than 60,000 retail locations.

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Authorize.Net Q2 Revenues Soar by 24%

MA-based Authorize.Net reports that revenue from continuing operations for the second quarter rose 24% to a record $17.2 million. Income from continuing operations was $2.0 million versus $457,000 for 2Q/06. Gross merchant adds in the second quarter were 20,740 with net merchant adds at a record 10,196, up 18% and 27%, respectively, compared to the same period in 2006. Active merchants as of June 30th were at a record 185,635, up 24% over the prior year. The Company processed $9.4 billion of merchant transactions in the second quarter, up 27% compared to the same period in 2006. Also, it processed 90.6 million transactions in the second quarter, a 24% increase over 2Q/06. On June 18th, Authorize.Net signed a definitive agreement to merge with CyberSource. For complete details on Authorize.Net’s latest results visit CardData ([www.carddata.com][1]).

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

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CITI CLEAR CARD

Citibank has introduced a credit card with a spending limit of S$500 for
consumers in the 18-35 year old age bracket called the “Citi Clear Card”.
The introduction of this card is in response to a new exemption requiring
companies to issue cards to consumers with a limit of no more than S$500
whom do not meet minimum income requirements, a segment of
approximately 500,000 in Singapore. The “Clear Card” will offer holders
benefits, discounts and rewards in Sports and Fitness, Books and Music,
Dining, Fashion, Gadgets, Beauty and Wellness. Cardholders can also
make online bill payments to services and take advantage of Citibank
Rewards and 24-Hour “CitiPhone” Banking Service. Citi has nearly 200
million customer accounts in more than 100 countries.

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Printed Card Statements Draw Solid Response

A new study has found that Americans spend twice as much time reviewing printed bank and credit card statements compared to the 3.5 minutes spent examining their Web equivalents. Meanwhile, residents of large European countries devote even more time to these materials, at just over four minutes. The research released today by Pitney Bowes’ Group 1 Software also found that email to existing customers receives almost as much attention as the typical direct mail piece, while cold emails only have 50-90 seconds to grab the recipient’s attention. The documents that receive the most attention in the U.S. include bank/credit card statements and mobile phone bills, while government and tax correspondence command less interest. The research reveals that marketing offers that accompany bills, statements, and other customer correspondence typically generate response rates of around 5.5% — not far off the typical direct mail campaign response rates.

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CHASE & CBRC

The China Banking Regulatory Commission (CBRC) has granted
JPMorgan Chase Bank approval for operations in the Asian country.
This development is part of, and accelerant to, the bank’s effort for a
broad geographic reach in the region. In conjunction with the approval,
the bank has also appointed a new chairman to work out of Beijing. Peter
Lighte, Senior Vice President heading up International Client Coverage
for Treasury and Securities Services for EMEA and Asia, joined the group
in 1979. Lighte has extensive education in the Asian culture with a PhD
from Princeton University in East Asian Studies.

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SEC Inquiry Delays Diebold’s Q2 Report

Diebold Incorporated announced that it will delay the release of its second quarter 2007 earnings results and related conference call, both originally scheduled for July 31. The delay relates to Diebold’s long-standing practice of recognizing certain revenue on a “bill and hold” basis within its North America business segment. In connection with questions that have arisen during the ongoing formal investigation by the Securities and Exchange Commission (SEC), Diebold has decided to proactively seek guidance from the Office of the Chief Accountant (OCA) of the SEC as to the company’s revenue recognition policy. While the percentage of this bill and hold revenue may vary from period to period, it represented less than 10 percent of the company’s total consolidated revenue in 2006. The company will issue its second quarter 2007 earnings results as soon as possible following a response from the OCA.

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FIRST DATA & CHECK FORTE

As means of expanding Brazilian operations, First Data International have
inked agreements for the acquisition of Check Forte processing services.
Check Forte offers services including data capture, switching and POS,
processing services to banks, and terminal management. Experts say First
Data’s global payments expertise and the channeling of a local market
presence through Check Forte is an ideal partnership for the expansion of
electronic payment processing capabilities in the country. First Data serves
over 5 million merchant locations, 1,900 card issuers and their customers.
The company’s STAR Network offers PIN-secured debit acceptance at 2
million ATM and retail locations.

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VISA Beefs-Up its Signature Dining Website

VISA USA has upgraded its “VISA Signature Dining” Web site with a new partnership with Zagat Survey. The enhanced site features information on fine dining and wine, as well as complimentary access to the latest Zagat restaurant ratings and reviews; access to epicurean events through partnerships with Sonoma County Vintners, Bon Appetit and Gourmet; special benefits at more than 40 Sonoma County wineries, including complimentary wine tastings and discounts on purchases; cooking classes through a new partnership with the Institute of Culinary Education; and dining reservations at restaurants worldwide through the “VISA Signature Concierge.” “VISA Signature” cardholders also receive discounted subscriptions to “ZAGAT TO GO,” a mobile information service.

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3PEA & MCB

3PEA International Inc has signed a 3-year card issuance sponsorship
agreement with Monterey County Bank (MCB) to provide 3,600,000
debit cards. MCB will be the issuing bank for the prepaid cards, which
will be running on multiple networks including NYCE and Pulse. This
will provide 3PEA with an opportunity to further penetrate the prepaid
card market, in addition to its 3PEA “BIN”, 3PEA card management
system and data processing services for prepaid card programs. The
company is also developing prepaid gift cards, spend cards, healthcare
cards programs, payroll solutions, and other specialized prepaid debit
card programs with other institutions.

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Fiserv Q2 Financial Segment Revenues Up 6%

WI-based Fiserv reported that total revenues for the second quarter increased 12% to $1.18 billion. The company’s Financial operating segment generated revenues of $753.8 million for the second quarter, a year-on-year increase of 6.4%. Driving the internal revenue growth rate were increased sales of the company’s banking and payment products and services to existing and new clients, as well as growth within the output solutions division. Financial segment operating income increased $20.9 million to $165.6 million, up 14.4% compared with the second quarter of 2006. During the quarter, Fiserv Electronic Funds Transfer completed 44 new sales and now has more than 2,700 clients. Fiserv also signed 62 new clients for its electronic bill payment services and now has more than 560 electronic bill pay clients. During the quarter Fiserv signed definitive agreements to sell its Fiserv ISS operations in two separate transactions. For complete details on Fiserv’s second quarter performance, visit CardData ([www.carddata.com][1]).

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

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UOB ONE CARD

The United Overseas Bank Limited (UOB) has introduced the contactless
VISA “One Card” on a cash rewards platform. The Card’s reward
program offers cardholders S$300 in annual rebates automatically and
is the first in the country with VISA “payWave” capability, which allows
transaction processing in 6 seconds at over 300 payment terminals. The
Bank’s research shows those aged between 23 and 34 prefer a card such
as this, thus convincing retail outlets whom typically do not accept
credit cards
to implement this new solution. In addition to the automatically issued
reward
points, cardholders also receive dining, entertainment and movie
privileges,
rebates of up to 10% at UOB SMART$ retailers and an annual fee waiver
when at least three transactions are made on the card per month. UOB
offers financial services through over 500 offices in 18 countries and
territories in Asia-Pacific, Western Europe and North America with
subsidiaries in Singapore, Malaysia, Indonesia, Thailand and the
Philippines.

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WaMu Cardholders Get Entertainment Access

WaMu is now offering its debit, credit, ATM or home equity cardholders access to “WaMu LIVE!,” a new entertainment platform that offers unique on-site concert experiences and online access to special event tickets at select theaters in New York, Los Angeles, Seattle and soon San Francisco. By flashing any WaMu debit, credit, ATM or home equity card, customers can enjoy special WaMu entrances, access to venues before doors open for shows and access to premier parking. All ticket holders at the WaMu Theaters in Seattle and New York can take photos with friends in new on-site WaMu “photo studios” that can later be downloaded at wamulive.com. WaMu is a sponsor of more than 40 music events and festivals around the country. At June 30, 2007, WaMu and its subsidiaries had assets of $312.22 billion.

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