Issuers of VISA and MasterCard now have the choice of a using a single
platform to simplify card issuance and management processes following
VISA’s certification of “MULTOS” for its chip applications.
Slovenia’s Banka Koper has become the first VISA issuer to deploy “VISA
Smart Credit and Debit” on a “MULTOS” multi-application platform.
“MULTOS” consortium members including Keycorp, Thales eSecurity and
StepNexus, assisted the bank with the deployment. Banka Koper is now
rolling out its VISA chip card program, deploying multi-application
“MULTOS” cards which support both “VSDC” and the “VISA Dynamic Passcode
Authentication” application to support remote cardholder authentication.
Banka Koper’s “VISA Electron Prepaid” card now also contains the Bank’s
own PKI application. Banka Koper has been operating for 50 years and is
the owner of the country’s first and biggest domestic payment card
system, known as Activa, for which seven other Slovenian banks now hold
sub-licenses. It is also the holder of a full license for card-related
products within the MasterCard and VISA systems.


Discover Certifies INSIDE Contactless Chip

The Discover Network has certified “MicroPass L4”, intelligent hardware from INSIDE Contactless. The “MicroPass L4” hardware consists of a contactless chip to be used in fobs, cards and other devices in Discover’s contactless payment network. The hardware is to be used for quick retail transactions with the wave of a card, offering customer convenience and the merchant benefit of moving more customers through check-out lines in less time. Discover operations serves over 4,200 financial institutions and includes almost 250,000 ATMs and approximately 3.4 million POS terminals. INSIDE Contactless has been expanding over the past two years with more than 12M chips delivered for contactless payment cards in the US market.


CheckFree to Buy Corillian for $245MM

Atlanta-based CheckFree has inked a definitive agreement to purchase Corillian for $245 million. The Portland, OR-based provider of Internet banking software and services posted revenues for 2006 of $61 million, an 24% increase over the prior year. However, the company reported a net loss for 2006 of $1.1 million, compared to net income of $2.7 million in 2005. The purchase price represents a 49% percent premium over Corillian’s Tuesday closing stock price. Corillian recently projected first quarter revenues to be in the range of $14.5 to $16.0 million. CheckFree says the combination will allow for tighter integration of electronic banking, billing, payment and service support functionality plus provide greater flexibility in technology approaches for financial institution efficiency. Corillian supports more than 30 of the top 100 U.S. banks and 21 of the top 100 U.S. credit unions. CheckFree processes more than one billion transactions annually and distributes more than 18 million e-bills per month through more than 2,000 financial services sites.

4Q/05: $15.6 million
1Q/06: $14.3 million
2Q/06: $14.6 million
3Q/06: $15.6 million
4Q/06: $16.5 million
Source: CardData (www.carddata.com)


E4X Integrates GlobalCollect Solution

E4X has signed an agreement with GlobalCollect to incorporate GlobalCollect’s payment methods into an expanded portfolio for international services. E4X will take advantage of GlobalCollect’s strengths in online local payment methods worldwide, in particular local bank transfers in over 50 countries that enables international shoppers to browse and pay for products in their own currencies while eliminating the risk of foreign exchange fluctuations for e-tailers and shoppers. As a result, shoppers purchasing from vendors using E4X’s services will be able to make payments using bank transfers in as many as 50 markets. GlobalCollect will draw on E4X’s expertise in delivering risk-free foreign exchange solutions for vendors and consumers in the international sphere. GlobalCollect is a worldwide leading payment service provider.


Chockstone Intros an Ad Network for POS

OR-based Chockstone has created “Receipt and Respond,” an advertising network linking its restaurant and retail clients with national and local advertisers. The network delivers point of purchase advertisements and promotional offers directly on consumer receipts and is available to all of its loyalty, gift, and credit card gateway clients. Advertisers can choose from an inventory of hundreds of millions of consumer receipts printed at approximately 30,000 retail locations. Chockstone is a personalization, loyalty, and stored value solutions provider.


BofA M-Banking to Target 21MM Online Users

The nation’s leading online banker is migrating to cell phones and smartphones to enable its customers to check account balances, pay bills and transfer money. Bank of America is launching the service in Tennessee beginning in March and will roll-out mobile banking to markets across the country through mid-year. The service will be accessible to consumers who have mobile Internet access via Verizon Wireless, Sprint-Nextel, Cingular and T-Mobile. To activate mobile banking, customers will register through the bank’s “Online Banking” service and then use the Internet browser on their mobile phone to access their accounts. BofA online banking has more than 21 million active users.


Valentine’s Card Spend to Top $5 Billion

Americans will charge more than $5 billion for “Valentine’s Day” purchases this year, compared to $4.2 billion for 2006, according to CardTrak ([www.cardtrak.com][1]). Totally, consumers will shell-out nearly $17 billion for the holiday in 2007, compared to $14 billion last year. The National Retail Federation’s “2007 Valentine’s Day Consumer Intentions and Actions Survey” found that on average, each consumer will spend $119.67 on Valentine’s Day this year, compared with $100.89 last year. The top gift is flowers, followed by cards, candy, a night out and jewelry.

2003: $3.2 billion
2004: $4.0 billion
2005: $4.0 billion
2006: $4.2 billion
2007: $5.1 billion
Source: CardData (www.cardtrak.com)

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


TSYS & Moneris Renew Their Processing Deal

TSYS Acquiring Solutions has renewed its merchant-processing service agreement with IL-based Moneris Solutions covering its U.S. portfolio. The agreement continues a long-standing relationship between the two companies, with TSYS Acquiring Solutions remaining as Moneris’ preferred third-party provider of transaction-processing and related support services in the United States. Moneris Solutions is a payment processor, processing more than 2.3 billion credit and debit card transactions a year for more than 350,000 merchant locations across North America. TSYS Acquiring Solutions is a supplier of acquiring solutions, related systems and integrated support services to the acquiring industry and its customers.


Penna’s PFFCU Joins the CO-OP ATM Network

CO-OP Financial Services has signed $2.4 billion PA-based Police and Fire Federal Credit Union (PFFCU) to participate in the national ATM network. The second largest credit union PFFCU’s 150,000 members will gain access to 520 surcharge-free CO-OP Network ATMs in the Keystone state in addition to CO-OP Network ATMs nationwide. CO-OP Network, which has ATMs in 50 states and 10 countries, has a partnership with 7-Eleven to provide surcharge-free ATM access for 24 million credit union cardholders at 5,500 7-Eleven locations across the country.


e-Port Sales Drives USA Technologies’ Q4

PA-based USA Technologies reported fourth quarter revenues of $2.1 million, a 2.7% increase over 4Q/05. During the quarter, revenues from the Company’s “e-Port” were $1.2 million, an increase of 105% over the prior year quarter. The “e-Port” growth was due to an increase in sales of the Company’s new “e-Port G-6,” as well as accelerating growth in license and transaction fees as the company adds more connections to its “USA Live” network. The Company said its growing relationship with MasterCard is helping it rapidly deploy “e-Ports” in cities across the nation, and penetrate exciting new and emerging markets. Also, during 4Q/06 the Company completed a contract with MasterCard for rapid deployment of an additional 5,000 “G6 e-Ports” in vending machines, POS terminals and kiosks in another 12 U.S. cities. For details on USAT’s fourth quarter performance visit CardData ([www.carddata.com][1]).

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


Citigroup to Use Citi Name; Sells Umbrella

Citigroup announced a corporate branding change that unites its businesses under the well-known “Citi” name and its recognizable red arc design. The company also announced that it will sell to The St. Paul Travelers Companies the trademark red umbrella that a legacy company acquired with its purchase of Travelers in 1993. Beginning in the second quarter, the following businesses will begin using a silver Citi with the red arc logo: corporate and investment banking will use the brand name Citi; wealth management will use the brand names Citi Smith Barney, Citi Investment Research and Citi Private Bank; and alternative investments will use the brand name Citi Alternative Investments. There are no plans to change the Banamex brand in Mexico. Primerica will also maintain its brand name, but it will use a new logo without the red umbrella. While the company will do business as Citi, its legal name will remain Citigroup Inc.