Brightpoint to Market Axalto Smart Cards

IN-based Brightpoint North America has signed a deal to market Axalto’s mobile solution offering, including Axalto smart cards, smart card readers and middleware, to their wireless network operator customers in North America. The Axalto mobile solution is optimized for specific regional market requirements and gives wireless network operators the ability to exploit the full capabilities of today’s leading Java SIM card and a competitive platform for deploying enhanced mobile services to wireless customers. Brightpoint is one of the world’s largest distributors of mobile phones. Brightpoint supports the global wireless telecommunications and data industry, providing quickly deployed, flexible and cost effective solutions. Axalto is the world’s leading provider of microprocessor cards — the keys to digital networks — and a major supplier of point-of-sale terminals.

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RBS Buys Lynk Systems for $525MM in Cash

Privately-held, Atlanta-based Lynk Systems is being purchased by Royal Bank of Scotland through its US-based Citizens Financial Group for $525 million in cash. Lynk, a top merchant processor and acquirer, handles $18 billion in charge volume and 400 million transactions annually. The Company services approximately 100,000 merchants. Lynk also provides processing services for 25,000 ATM’s located throughout the USA representing $6 billion dispensed and 120 million transactions annually. The Company was founded in 1991 and has more than 950 employees. Financial Technology Partners and FTP Securities exclusively represented Lynk Systems in the pending sale to RBS. Lynk was a customer of Citizens Financial. Atlanta-based Arnall Golden & Gregory served as Lynk’s legal advisor.

Lynk Transaction Historical
2000: 124 million
2001: 155 million
2002: 208 million
2003: 282 million
2004: 400 million
Source: CardData (www.carddata.com)

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CompuCredit Profits Fall by One Third in Q2

CompuCredit reported second quarter 2004 net income attributable to common shareholders of $13.8 million, or $0.28 per diluted share, as compared to its second quarter 2003 net income attributable to common shareholders of $20.7 million, or $0.42 per diluted share.

Reflecting continued improvements in the credit quality of CompuCredit’s managed receivables, the net interest margin was 20.2 percent in the second quarter of 2004, as compared to 18.4 percent for the second quarter of 2003. The adjusted charge-off rate was 8.8 percent in the second quarter of 2004, as compared to 11.0 percent for the second quarter of 2003. Also, at June 30, 2004, the 60-plus day delinquency rate was 9.6 percent, as compared to 10.5 percent at June 30, 2003.

CompuCredit Corporation uses analytical techniques that allow it to provide credit and other complementary services and products to consumers it believes to be underserved by traditional grantors of credit. Credit cards marketed by CompuCredit generally are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. For more information about CompuCredit, visit [www.CompuCredit.com][1].

For complete details on CompuCredit’s second quarter performance visit CardData ([www.carddata.com][2]).

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

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PassMark Security Picks Up Klebe

PassMark Security has hired Steve Klebe, formerly with CyberSource, CyberCash, and VeriFone, as VP of sales and business development. In his new position, Klebe will be driving sales activity, forming key partner relationships and developing the sales organization. Klebe is a recognized strategic relationship builder who works with key industry players in the payment and risk industries to develop joint products, joint sales efforts and equity investments. PassMark Security of Redwood City, California introduced PassMark, a system for banks and ecommerce sites to deploy to prevent phishing attacks and provide a higher level of authentication.

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Fair Isaac Launches Falcon ID

Fair Isaac has launched an enhanced identity fraud detection solution fueled by predictive analytics and multiple sources of identity-validating data. The new “Falcon ID” evaluates transactions throughout the customer lifecycle, and detects identity fraud at any point where an identity is susceptible to compromise — including the points of application, account activation, account management and even during collections. It also can be used to evaluate and manage account decisions when consumers initiate account actions such as a change of address or a new telephone line. In addition, “Falcon ID” features a sophisticated case management system and authentication interview service that helps facilitate investigation when an identity compromise is detected.

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TSYS Buys Clarity; Forms TSYS Prepaid Inc.

TSYS acquired prepaid card specialist, Clarity Payment Solutions, for $53 million in cash. As a result of the acquisition TSYS has formed a new wholly owned subsidiary, TSYS Prepaid, Inc. to be based in New York City. Anil Aggarwal will remain the CEO of the new entity. Clarity has been involved in the launch of multiple prepaid cards including the “Elvis Presley Card” this year, the “Hilary Duff Card” last year, and the “GameCreds VISA” in 2002. The firm also has launched prepaid insurance settlement disbursement cards. Clarity provides a dynamic, data-driven processing platform that integrates real-time administration and reporting tools, sophisticated marketing and communications technologies, and leading compliance and risk management systems, as well as other unique capabilities that are vital to processing for the prepaid market.

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NCR Wins Cardtronics’ ATM Services Contract

Cardtronics has signed a services agreement with NCR for its 3,250 ATMs. Under the terms of the agreement, Cardtronics will deploy a new Gasper Vantage system in its new network operations center in Houston. Gasper is a unit of NCR’s Financial Solutions Division and a leading provider of software specifically tailored to solve self-service management issues. Cardtronics currently has a network of over 25,000 ATMs operating in all 50 states. CR Corporation is a leading global technology company helping businesses build stronger relationships with their customers.

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TransAct Technologies Picks Up Carter

TransAct Technologies has hired Scott Carter, formerly with MasterCard, as SVP of Marketing and Strategic Planning. Scott Carter, 44 years old, comes to TransAct with over 20 years experience in brand and channel creation, marketing and business development. From 1990 to 2000, Carter held a variety of executive positions at MasterCard International. Of note, Carter gained brand commitment and directed rollout of the Wal-Mart MasterCard, considered to be the third most successful card launch in company history, earning him the 1996 President’s Award. TransAct designs, develops, manufactures and markets transaction-based printers under the ITHACA(R) and MAGNETEC(R) names.

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KeyCorp to Issue FSV STV Cards

Cleveland-based KeyCorp has inked a pact to issue stored value cards for Houston-based FSV Payment Systems. FSV Payment Systems offers a suite of host-based stored-value and payroll debit card solutions direct to large employers and to financial institutions through an exclusive agreement with Fiserv. The FSV processing platform is both proprietary and configurable, allowing for the delivery of both standard and non-standard programs based on customer requirements.

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EU Commission Says VISA’s Bylaws Limit Competition

The European Commission has charged VISA International with breaching EU competition rules by refusing to permit Morgan Stanley Dean Witter to join VISA’s global network while permitting others such as Diners Club and JCB to join. The Commission’s “Statement of Objections” concerns a VISA bylaw that says that VISA’s International
Board shall not accept for membership any applicant deemed by the Board
to be a competitor of VISA. Morgan Stanley issues the “Discover” card which VISA considers a competitor. The EU Commission says it concerned that the VISA membership rule is not applied in an objective and non-discriminatory manner vis-a-vis all applicants for VISA membership.
The EU cites Citigroup’s Diners Club and JCB as an example. The EU also believes the VISA rule could preclude potential entrants from providing credit card services to merchants. In addition, the EU notes that being refused VISA membership prevents potential new entrants from engaging in cross-border acquiring, a newly evolving segment of the acquiring business which has the potential of increasing competition in the national markets by making domestic service providers compete with acquirers based in other EEA Member States. VISA reportedly said that any decision that allows MSDW access to proprietary VISA information will inevitably reduce competition between payment systems. VISA has three months to respond to the Commission’s “Statement of Objections.”

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NY MCU Joins the CO-OP Network

NY-based Municipal Credit Union, with 300,000 members, has joined the CO-OP Network signing a member-shareholder agreement that stipulates 90 MCU ATMs will be branded with the “CO-OP Network” logo. Fiserv, Inc. provides information management systems and services to the financial industry, including transaction processing, business process outsourcing and software and systems solutions. CO-OP Network is wholly-owned by its credit union shareholders and provides volume discounts on products and services that include risk management as well as debit and deposit access.

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