NOVA Purchases SEB Kort and Norge’s Acquiring Business

SEB Kort AB and Europay Norge AS have signed a definitive agreement for the sale of their merchant acquiring business to a Norway-based affiliate of NOVA Information Systems. EuroConex Technologies will manage the processing services for all new and existing merchant customers, and will market merchant services under the
euroConex brand. SEB Kort’s portfolio in Euroline Norge (owned by
Europay Norge) consists of more than 45,000 points of sale for
MasterCard and VISA in Norway. Europay Norge established its financial services in 1972, and the acquiring business was renamed Euroline after it was purchased by SEB Kort AB in 2003. Europay Norge currently has approx. 50 percent market share of the international card market (merchant volume) in Norway. In 2003 the overall acquiring market in Norway amounted to NOK 42 billion (Euro 5 billion) distributed over 93 million transactions, and the use of cards is increasing steadily.

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VASCO Launches Digipass Host Authentication

VASCO Data Security International launched “Digipass
Host Authentication” to tackle the phishing schemes. “DHA” allows an end-user to check whether a bank’s or a merchant’s Web site is genuine.
The entire Digipass product range is available with the “DHA” functionality, including “Digipass GO3.” When visiting a Web site, a Digipass user can send a 7 or 8 digit, time based one-time password to the host server. The host server will respond with a time based 4-digit host authentication code. When the 4-digit code matches with the 4-digit code generated by the Digipass, the end-user knows that he is visiting a valid Web site.

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EFMA Payments Conference Attracts 45 Speakers

The “EFMA Cards and Payments Conference & Expo” has drawn forty-five speakers from 18 countries. Speakers include: Steve Abrams, Senior Vice President, Corporate Payment Solutions, Customer Group, MasterCard International; João Carlos Anselmo, Card Department Manager, Banif – Banco International do Funchal, Portugal; Gilbert Arira, Responsable de la Monétique, BNP Paribas, France; Elvan Bilge, Senior Vice President Third Parties, Garanti Bankasy, Turkey; Kamal Boushi, Senior Vice President, MasterCard Advisors, MasterCard Ireland & UK, United Kingdom; Claude Brun, Vice President, European Payments Council – EPC, Belgium; Brian Chambers, International Operations Director, Octopus Cards, United Kingdom; Ivan Clemente, Senior Vice President Operations, Mobipay España, Spain; and, Christopher Coonen, Directeur Général, PayPal, France. The event is scheduled for September 21-23 in Paris.

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AsiaPay Adopts J/Secure for 300 Clients

AsiaPay is adopting JCB’s “J/Secure” payer authentication program. About 20 major AsiaPay client merchants including Sinomedia Holdings and U Domain Web Hosting have started using the “J/Secure” program for online shopping. An additional 300 AsiaPay e-commerce client merchants are expected to follow immediately. JCB launched the J/Secure” program in April, and has been implementing it in e-commerce markets worldwide. AsiaPay’s adoption of the program is the first in Hong Kong.

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Major CUs Outpace the Top Ten & Industry Growth

Credit unions with at least $100 million in outstandings posted an average gain of 9% during the second quarter, compared to a 5% average gain reported by the top ten issuers, and a 4% increase industry wide. The Navy FCU and Pentagon FCU, each with outstandings over $500 million, posted gains of 8.8% and 9.2%, respectively. Sacramento, CA-based Golden 1 Credit Union posted the strongest gain, nearly 28%, growing from $148 million in 2Q/03, to $188 million in 2Q/04. For complete details on second quarter performance by credit unions visit CardData ([www.carddata.com][1]).

Major Credit Union Outstandings >$100MM
($ millions)
CREDIT UNION 2Q/04 2Q/03 CHANGE
Navy 1615.0 1484.0 +8.8%
Pentagon 535.0 490.0 +9.2%
Boeing Employees 247.6 233.0 +6.3%
Pa. State Employees 213.1 198.9 +7.1%
Golden 1 188.3 147.6 +27.6%
America First 143.0 135.4 +5.6%
NC Employees 135.0 123.0 +9.7%
Security Service 128.7 117.5 +9.5%
Redstone 115.4 106.9 +7.9%
Delta Employees 100.0 99.3 +0.7%
TOTAL 3421.1 3135.6 +9.1%
INDUSTRY +3.8%
TOP TEN +4.7%
SOURCE: CardData (www.carddata.com)

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

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Dialect Receives J/Secure Certification

Sydney-based Dialect Solutions Group has received “J/Secure” certification from JCB. “J/Secure” is a protocol that adds a secret password identification step to the traditional online shopping process.
Launched in April 2004, “J/Secure” is JCB’s proprietary authentication
program that uses the 3-D Secure protocol to secure online credit card
payments. Dialect delivers payment technologies and secure payment-processing solutions to a number of the world’s leading financial institutions, card associations and corporations.

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iBiz Software Enters the Japanese Market

Texas-based iBIZ Software has added JCB’s “J/Secure” to the list of programs that it is compliant for “3-D Secure Payer Authentication.” iBIZ Software is also entering the Japanese market with the local representation from MRS Corporation. The Company will be focus on enabling merchants to become compliant with “J/Secure” as well as other “3-D Secure” programs from VISA and MasterCard. In doing so, iBIZ will be working aggressively to help JCB implement payer authentication for their millions of cardholders who conduct online transactions. In other parts of the Asia Pacific region iBIZ is working closely with local iBIZness Partners to answer the needs of issuers and acquirers for comprehensive, robust and cost effective online authentication solutions.

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Chip and PIN Launches a Memory Campaign

Chip and PIN has introduced its campaign to help people
memorize their PINs. Most consumers have no trouble forgetting their pinch but for those who do struggle with their four-digit PINs, a guide featuring hints, tips and memory tricks is now available from the
chip and PIN Web site. Recent research reveals that Brits find
remembering people and important days more difficult than remembering PINs, with 43.8% struggling with names, 36.7% with birthdays and anniversaries, and 28.7% with PINs and code numbers. More than two in five UK cardholders has been issued a “chip and PIN” card by the end of May. The card requires a PIN for debit and credit transactions. When a similar system was introduced in France, card fraud fell by 80%.

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MasterCard and Canadian Tire Launch a Hockey Promotion

MasterCard Canada and Canadian Tire have launched a promotion to give away tickets to an upcoming “World Cup of Hockey 2004” game in either Toronto or Montreal. The “MasterCard Ticket Team” will be at randomly selected participating Canadian Tire locations looking for shoppers who made a purchase with their MasterCard card. One lucky eligible shopper will be selected in each city each day to win a pair of tickets to an exciting “World Cup of Hockey” game. The promotion continues to August 30th in Quebec and September 13th in Toronto and surrounding areas.

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Nishe Media Licenses Smart Chip Technologies’ Loyalty Solution

Nishe Media, a multinational media and advertising firm specializing in vertical market communications, has signed an agreement to license Smart Chip Technologies’ loyalty program management solution.
Smart Chip Technologies’ turnkey customer retention solution, including
loyalty, pre-paid stored value, and gift cards, was co-developed with
the Airos Group and IBM. The software solution enables customers to take advantage of click-and-mortar, real-time programs running on their existing cards and POS systems, including bar code, magnetic stripe, RFID, or smart cards, laptops, PDAs such as Palm or Windows devices, TV set top boxes, or mobile phones.

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Small CU Card Deals On Track to Top 2003 Sales

While the number of credit union card portfolios sold during the second quarter declined, the average deal nearly doubled from the first quarter. During 2Q/04, 11 portfolios, with more than $1 million in outstanding balances, changed hands compared to 19 in the previous quarter. The average deal size for the second quarter was $11.5 million compared to $6.1 million in 1Q/04, driven by three large deals above $10 million. According to NH-based Brookwood Capital total balances sold year-to-date have been approximately $240 million. Brookwood says the number of sales is on pace to exactly equal last year’s 60 portfolios, though the total dollar value of the transactions is on pace to surpass last year’s $420 million. Portland, OR-based AssetExchange reports that the penetration of credit cards among credit union members declined to 17.9% in June, compared to 19.1% in March. AssetExchange recently released a survey that showed credit unions selling their credit card portfolios in 2001 or 2002 posted higher growth in both membership and loans-per-member than credit unions that did not sell their portfolios. (CF Library 8/16/04)

Credit Card Portfolio Sales
1Q/04 2Q/04
# Sold 19 11
Avg Size $6.1mm $11.5mm
Tot Bal $116mm $126mm
Penetrate 19.1% 17.9%
SOURCE: AssetExchange; Brookwood Capital

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ViVOtech Combines RFID and IR on One Platform

ViVOtech has, for the first time, combined the leading contactless payments technologies, radio frequency and infrared, on to a single platform. The combined capabilities enable consumers to make payments with either RFID-enabled key fobs or cards, or IR-enabled mobile phones and PDAs. ViVOtech products that have combined RFID and IR capabilities include “ViVOpay 3000,” “ViVOplatform,” “ViVOpay Dine” and “ViVOwallet.” There are more than 30 million users of Infrared-enabled devices in North America.

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