CompuCredit to Launch a Discover Card in Q4

CompuCredit’s Purpose Solutions will launch a new credit card program on the Discover Network via the First Bank of Delaware. CompuCredit is the 17th-largest general-purpose credit card issuer in the U.S. CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services, specializing services to consumers who are underserved by traditional financial institutions. Discover Network offers more than 4 million merchant and cash access locations and the PULSE ATM/Debit network currently serving over 4,100 banks, credit unions and savings institutions. First Bank of Delaware is a full-service, state-chartered commercial bank.

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Axalto Smart Card Plants Achieve Certification

Axalto has achieved “BS779” certification for its smart card production
and personalization centers in France, the UK and and its development
center in Austin, Texas. Axalto is the first smart card company to launch a voluntary program of
certification for all of its production sites globally. “BS7799” details stringent requirements for the implementation of an information security management system, including security policy, organizational and personnel security, communications and operations management, as well as business continuity management.

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UMB Bank and eFunds Expand Walgreens ATMs

UMB Bank and its ATM operations management partner eFunds have activated ATMs in 60 Walgreens stores in Oklahoma, including 28 stores in the Oklahoma City metropolitan area and 23 in the Tulsa metro. The entire contract agreement between UMB and Walgreens involves ATM installations in 307 stores in Missouri, Illinois, Kansas, Oklahoma and Colorado. The expansion represents a 62.5 percent increase in ATM locations for UMB in the central United States. UMB Financial Corporation is a multi-bank holding company headquartered in Kansas City, Mo Walgreen Co. is the nation’s largest drugstore chain with fiscal 2004 sales of $37.5 billion.

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VISA to Partner with Rugby World Cup

VISA International is the Official Worldwide Partner and official payment
service for Rugby World Cup 2007 for the fourth time. The tournament,
staged every four years, is the biggest rugby event in the world. VISA is
granted the worldwide rights to use the RWC 2007 marks and designations in
promotional tie-ins with participating merchants, in advertising and
point-of-sale materials, on packaging and on premium items or materials.
It also allows VISA to offer event access and exclusive hospitality to its
members, merchants and cardholders.

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PNC Takes Control of PNC Merchant Services

PNC Financial Services and First Data announced the five-year extension of their PNC Merchant Services alliance agreement that began in 1996 which includes PNC’s purchase of 20% of the merchant alliance, increasing its ownership to 60%, with First Data owning 40% upon the closing of the transaction. Consideration will include cash and contributed merchant contracts. No additional terms of the deal were disclosed and the agreement is subject to regulatory approvals. Upon closing of the transaction, PNC will consolidate the merchant alliance for financial statement purposes. The PNC Financial Services Group, Inc. is one of the nation’s largest diversified financial services organizations providing consumer and business banking.

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FreeStar Technology Moves Headquarters to Ireland

FreeStar Technology has established the company
headquarters in Dublin. It was formerly based in Santo Domingo,
Dominican Republic. In addition, the company announced that it has
opened an office in Stockholm, Sweden. FreeStar Technology Corporation
is a payment processing company focused on its Enhanced Transactional
Secure Software, providing consumers e-commerce transactions with a high
level of card security. Its wholly owned subsidiary Rahaxi Processing
Oy. is a Northern European BASE24 credit card processing platform.

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Peppercoin Completes its 2nd Financing Round

Peppercoin has completed its $10 million second institutional round of funding with an additional $2 million investment from Total Technology Ventures. The second institutional round was led by venture capital firm Wall Street Technology Partners and includes previous investor Pod Holding and a large, Boston-based institutional investment adviser; several private individuals returned to participate in the round as well. Total Technology Ventures is an Atlanta-based venture capital firm that provides capital primarily to early and expansion stage financial technology companies.

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NCR to Open New ATM Manufacturing Plant

NCR will open an automated teller machine manufacturing plant
in Budapest to provide the additional
capacity needed to support the expanding markets of Eastern Europe
and Russia. The new manufacturing plant will complement existing
manufacturing activity at NCR’s Dundee, Scotland, facility that is
currently producing ATMs for the Europe, Middle East and Africa region.
The new plant will start production in December 2005 with the
manufacture of NCR’s “Personas 87” ATM, providing cash dispensing and “No Envelope” Deposit functions. NCR currently manufactures ATMs in Dundee (United Kingdom), Beijing (China), Pondicherry (India), Waterloo (Canada) and Sao Paulo (Brazil).

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Experian-Gallup Poll Shows Soft Q4 Spending

About 32% of consumers expect to spend less this year during the upcoming holiday shopping season, while just 12% expect to spend more and 56% expect to spend about the same. The latest “Experian-Gallup Personal Credit Index” also shows that about half of all consumers expect to spend $500 or less, while the other half expect to spend more than $500. About a third of consumers, 34%, expect to spend at least $1,000. About 12% say their holiday spending will increase their credit card debt. The latest measure of the “Experian-Gallup PCI” shows a slight decline from last month, now registering at 74, compared with 78 in October. For the past three months, the “PCI” has varied in the 74 to 78 point range, down significantly from the 98 score it reached in August, but about the same level it was last July.

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eFunds’ Third Quarter Revenues Rise 25%

AZ-based eFunds reports third quarter net income of $15.8 million, a 48% increase over 3Q/04. Third quarter net revenue increased 25% to $133.2 million, compared to the third quarter of 2004. Overall, revenues declined 17% from the 2Q/04. Excluding the impact of the Company’s acquisition of WildCard Systems in July, the revenues from the Company’s current operating segments increased approximately 7% over the third quarter of 2004. Overall, revenues declined 5% from the $140.1 million reported for the third quarter of 2004 due to the impact from the sale of the Company’s ATM deployment business in November 2004. The Company also reported that it now expects full year net revenue for 2005 to increase approximately 18% on a combined organic and acquisitive basis over the $431 million baseline revenue achieved across the Company’s three current operating segments following the sale of its ATM portfolio in November 2004. The Company is now anticipating that its 2005 net income will approximate the high end of its previously published range of 25% to 35% over its 2004 net income of $40.8 million. For complete details on eFunds’ third quarter performance, visit CardData ([www.carddata.com][1]).

eFunds Revenues Historical
3Q/03: $133.1 million
4Q/03: $135.4 million
1Q/04: $140.9 million
2Q/04: $140.7 million
3Q/04: $140.1 million
4Q/04: $130.5 million
1Q/05: $114.2 million
2Q/05: $116.3 million
3Q/05: $133.2 million
Source: CardData (www.carddata.com)

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

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OTI Completes a $22MM Private Placement

On Track Innovations Ltd. has announced that it has completed an
approximately $22.2 million private placement of new equity
financing with institutional investors from the US, Switzerland and
England and intends to use the net proceeds to support
large-scale implementation of projects in the ID and payments markets.
The transaction involved the sale of 1,828,026 units, priced at $12.15
per unit. RBC Capital Markets acted as lead placement agent and Andrew
Garrett, Inc. acted as co-placement agent for the offering. OTI
provides secure contactless microprocessor-based smart card
technology.

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