ENCORUS JOINS MPF

Encorus Technologies Limited, an eONE Global operating company and a leading
mobile
payments software and infrastructure provider, has joined the Mobile Payment
Forum, a global, cross-industry group formed to enable secure, user-friendly
mobile payment transactions and expand the overall market for mobile commerce.
Founded by American Express Company, JCB Co., Ltd., MasterCard International
and Visa International, the Mobile Payment Forum aims to standardize the
building blocks necessary to deploy global solutions for secure mobile
payments.

Encorus Technologies is focused on building a flexible and open
infrastructure to drive the acceptance and usage of mobile payments worldwide.
By extending its software business model, Encorus’ mission is to connect
merchants, mobile network operators and consumers with convenient and instant
mobile transaction payment processing services. Vodafone Group and T-Motion
plc are customers.

“Encorus is pleased to be a member of the Mobile Payment Forum,” said John
Duncan, Managing Director at eONE Global. “Supported by eONE Global and First
Data Corporation, Encorus possesses the experience and know-how to become a
major contributor to the Forum’s mission of developing a secure framework for
mobile payments.”

“We are very pleased to welcome Encorus Technologies to the Mobile Payment
Forum,” said the Forum’s co-president, Simon Pugh, Vice President, Standards
and Infrastructure, at MasterCard International. “As a global, cross industry
organization, the Mobile Payment Forum places great emphasis on the
contributions from organizations such as Encorus Technologies. These
contributions will play a major part in helping us to achieve our goals
quickly and efficiently.”

About Encorus Technologies

Encorus Technologies Limited
(http://www.encorus.com
), an
operating company of
eONE Global, LP,
(http://www.eoneglobal.com
.com/> ) is a leading provider of mobile payment
solutions. Encorus will connect mobile operators and merchants with a
universal payment infrastructure that’s secure and easy to use, while
providing consumers with a more convenient, cashless payment alternative.
Encorus PaymentWorks(TM) product is the first mobile wallet to offer cross-
border, multi-channel capabilities and authentication services for micro- and
macro-payments. The Vodafone Group and T-Motion plc are customers.

Encorus was founded in November 2001 and has offices in New York, London,
Singapore; Budapest, Hungary; Leipzig and Stuttgart, Germany.

About eONE Global

As the leading source for accelerating payment innovation, eONE Global, LP
(http://www.eoneglobal.com/ ) identifies, develops, and operates emerging payment
systems and related technologies. Its operating companies include Encorus
Technologies, focused on mobile payments; govONE Solutions, which handles any
type of payments to governments; and SurePay, a business payments company.
eONE Global is majority owned by global e-commerce and payment services leader
First Data Corp.
(http://www.firstdata.com
) and strategic investor iFormation Group,
(http://www.iformationgroup.com ) a company founded by The Boston Consulting Group,
General Atlantic Partners, LLC and The Goldman Sachs Group to build
technology-enabled businesses in partnership with the Global 2000.

About the Mobile Payment Forum

The Mobile Payment Forum brings together leading organizations from the
mobile and financial industries to create a foundation for standardized,
secure and authenticated mobile payments, based on payment-card accounts.
Founders American Express Company, JCB Co., Ltd., MasterCard International and
Visa International all bring extensive experience in creating interoperable
global payment standards and specifications and a knowledge of payments in
emerging channels. Membership will include key financial institutions,
telecommunications operators, wireless-device manufacturers, merchants,
content providers and software and hardware developers and vendors. The
Mobile Payment Forum is a non-profit membership organization, incorporated in
the state of Delaware in the United States. For more information, visit
http://www.mobilepaymentforum.org.

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AMS & GSA

American Management Systems said Wednesday it has successfully implemented a credit card transaction processing and reconciliation system for the U.S. General Services Administration. The Web-based application, which was rolled out to about 7,000 GSA credit card users nationwide in June 2001, is a module of Pegasys, GSA’s implementation of the AMS ‘Momentum Financial Management System’. Pegasys is replacing GSA’s legacy financial accounting system, ‘NEAR’, which had been in use for more than 20 years and was not compliant with government-mandated and JFMIP accounting requirements. The Pegasys credit card subsystem allows for flexible processing and enables automated credit card reconciliation. The subsystem also features online logging of purchases and unlimited cost transfers/edits.

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FINGERPRINT PHONES

Fujitsu, Ltd. said this week it is planning to launch a fingerprint sensor
for
use in mobile phones and PDAs. The ‘MBF300’ fingerprint sensor will be of the
capacitance type. Fujitsu says samples will be available in April. The company
projects a production volume of 4 million sensors per month. The Nikkan Kogyo
Shimbun says this is the first such mechanism to be incorporated into a
capacitance system with which users directly touch semiconductor materials.

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Datacard Promotes Thom

Datacard Group announced that Gregory W. Thom has been named senior vice president of worldwide sales and distribution.

Under Thom’s direction, worldwide sales and distribution will accelerate its ability to deliver software and hardware solutions through a variety of distribution channels in more than 120 countries worldwide.

Thom’s solid track record at Datacard, including his leadership of the company’s government solutions group, uniquely positioned him for the role. “Under Greg’s leadership, the government solutions group saw great success, becoming one of our largest and fastest growing markets,” said Jerry Johnson, president and CEO of Datacard Group. “His experience and knowledge of the company and industry will ensure that Datacard is positioned for success across all of our product and solutions offerings in all geographies.”

Before assuming the role of senior vice president and general manager of government solutions, Thom was vice president, general counsel and secretary for Datacard Group. Prior to joining Datacard, he served as an associate attorney at Dorsey & Whitney law firm and as director of marketing at NCR Comten.

Thom holds a B.A. from Bethel College, an M.B.A. from the University of Connecticut and a J.D. from William Mitchell College of Law.

Datacard Group provides software, systems and professional services needed to build profitable card programs. The company’s solutions portfolio also includes a complete line of secure digital identity and card personalization systems. Datacard Group is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 120 countries. ([www.datacard.com][1])

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

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HSBC SMART CARDS

SchlumbergerSema, a business segment of
Schlumberger Limited, announced that it has been selected by HSBC Bank
plc as the key smart card supplier for its EMV (Europay, MasterCard, Visa)
migration program. SchlumbergerSema will now handle the Bank’s UK Visa card
supply chain, with a view to identifying additional worldwide opportunities.
In the UK, SchlumbergerSema will deliver an end-to-end service from secure
manufacturing through personalization and fulfillment. Globally, it will
continue to provide card manufacturing and additional services to meet
specific local HSBC requirements.

The choice of a smart card supplier is key to the success of any bank’s
migration from magnetic stripe to EMV compatible smart payment cards. For
banks focusing on their core business in the global arena, worldwide
implementation of consistent design and technical standards is paramount, as
are simple and effective lines of communication.

“As a bank at the forefront of EMV migration, we need a partner who can
deliver first class service and manufacturing, and SchlumbergerSema does
exactly that,” commented Bill Barritt, senior manager, Supplied Services at
HSBC Bank.

“EMV migration is a major step for our partners in the banking community,”
said Tony Ball, vice-president, e-Transaction Cards, EMEA at
SchlumbergerSema. “We can ensure a highly secure card supply, as well as
leverage our business expertise across consulting, systems integration and
back-office servers to support banks’ global activities. HSBC’s selection
of SchlumbergerSema confirms the value of our banking technology expertise
and end-to-end competence.”

HSBC Bank plc is one of the UK’s principal clearing banks with more than
1,700 branches across the country. SchlumbergerSema is providing a complete
end-to-end solution for HSBC, spanning traditional magnetic stripe cards as
well as the new generation smart Visa cards, which are expected to make up
some 80% of the output. HSBC generates the personalization files, and
SchlumbergerSema handles the complete downstream processes at its Fareham
facility — from plastic card production, printing and embossing, magnetic
stripe and chip personalization to linking the cards with personalized
letters to be sent directly to each of the bank’s customers. This
technically and logistically complex process takes place within the highest
levels of security.

The Fareham personalization facility is the core of the SchlumbergerSema UK
payment card infrastructure, complemented by London-based project teams, as
well as software development and R&D teams in Ferndown, Dorset.

Drawing on more than 20 years experience in pioneering smart card innovation
and leadership in Java( technology, SchlumbergerSema has sold more than 2.5
billion smart cards to date, including over 500 million cards in 2001 alone.
SchlumbergerSema offers a wide range of business solutions and products to
improve the competitive advantage of financial institutions from its strong
customer track record.

About SchlumbergerSema

SchlumbergerSema is a leading information technology services company
providing consulting, systems integration, managed services and products to
the telecommunications, energy and utilities, finance, transport and public
sector markets. With more than 30,000 employees serving customers in 65
countries, SchlumbergerSema is one of two business segments of Schlumberger
Limited, a global technology services company. For more information about
SchlumbergerSema, visit http://www.slb.com.

HSBC Holdings plc

HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc. With more
than 6,500 offices in 78 countries and territories and assets of US$692
billion at 30 June 2001, the HSBC Group is one of the world’s largest
banking and financial services organizations.

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Farmer Leaves SCA

The high profile spokesperson for the Smart Card Alliance is leaving to form her own company. Donna Farmer, President and CEO of the smart card oriented non-profit entity, is creating a new company to focus on secure ID programs and authentication, offering a range of consulting services, and marketing support. The Smart Card Alliance was formed by the merger in December 2000 of the Smart Card Industry Association and The Smart Card Forum. Farmer held her position with the association since 1998, serving first as President and CEO of the Smart Card Forum and then of the Alliance after its formation. She will continue her involvement with the Smart Card Alliance and the work of its initiatives, from her new position as a Special Advisor to the Board of Directors.

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Card Stock Rally

Federal Reserve Chairman Alan Greenspan indicated yesterday that an interest rate hike is unlikely for the near term, however rates could move upward by the end of this year. The news sent the stock of credit card specialists and consumer finance companies up 2% to 4% Wednesday. Household’s stock climbed 4.2% yesterday, to close at $52.08, after briefly hitting $53 per share. Capital One’s stock rose 3.2% and MBNA was up 2.4%. Capital One came close to $50 per share Wednesday, while MBNA topped $35 per share during intraday trading. American Express inched up by 1.5%, as sub-prime specialist Metris Companies picked up less than 0.2%. Greenspan told the House of Representatives Committee on Financial Services that the end of the recession is very near, but the recovery may not be robust. The Feds cut rates eleven times during 2001, which dropped the prime rate to 4.75%. The average prime rate for 2001 was 7.02%, the lowest since 1994, according to CardData ([http://www.carddata.com/>www.carddata.com][1]).

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

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Citibank Reforms

Citibank yesterday signed an agreement with the attorneys general in 27 states to protect its customers from alleged unfair and deceptive practices by telemarketing firms that solicited business using Citibank’s customer lists and encrypted credit card numbers. The agreement settles a multi-state, two-year investigation led by Illinois Attorney General Jim Ryan and attorneys general in New York, California and Vermont. Under the agreement, Citibank admitted no wrongdoing but agreed to pay $1.6 million to the states. Since the mid-1990s, Citibank customers complained that deceptive pitches by the bank’s partners resulted in consumers being charged for products and services that they did not knowingly agree to purchase. In some cases, telemarketers promoted free trial offers on dental plans or credit card loss protection service. When the trial period ended, consumers did not understand that the companies would charge their credit card for continued use unless the consumers canceled during the trial period.

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Card Designs

When offered, nearly four out of ten debit card applicants will choose a card design over the financial institution’s card design. Among credit card issuers, Capital One has aggressively offered consumers a choice of card designs, while First USA is now promoting an offer to enable applicants to match their credit card design to their personal check design. Fiserv’s Personix division said Wednesday that its ‘Card Collection’, featuring 35 card designs, has produced higher response and transaction levels for credit and debit card issuers. Personix said one major issuer found that in direct mailings, 38% of applicants chose a ‘Card Collection’ design over the financial institution’s card design. And since the launch of an in-branch debit card campaign, 95% of customers walking into the branches have chosen a ‘Card Collection’ design. The Top-100 financial institution which offered the choice, also realized increased card activation, card transactions and dollar value per sale as a result of customers choosing their own card design. Card activation rates have risen from 40% to 49%, card transactions increased by 25% per month, and dollar value per transaction increased an average of 30%, according to Personix. First USA’s ‘Image Check Platinum VISA’ offer, which was mailed out in the fourth quarter, offered consumers a choice of ten different designs to match personal checks by Image Checks to a VISA card. Capital One offers a wide range of card designs on its sub-prime VISA offer, ranging from Leopards to Lightning, according to CardWatch ([www.cardwatch.com][1]).

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

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ORGA & PPP

IL-based Perfect Plastic Printing and ORGA Card Systems have finalized a collaboration to offer a U.S.-based alternative to serve the secure chip-based card products market. Under terms of the deal, the manufacture of smart cards, including chip insertion and pre-personalization will take place in Perfect Plastic Printing’s St. Charles, IL facility. Perfect Plastic Printing has been a top card manufacturer for nearly 40 years. ORGA has 30 year experience offering smart card hardware, software, systems, system integration and solutions for telecommunications, banking, retail, healthcare, and Internet companies around the world.

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Digital Account Aggregation

Digital Insight Corp. launched account aggregation services this week for Plano, Texas-based Community Credit Union and Naperville, Ill.-based Allied First Bank. The credit union, with $1.2 billion in assets, and the bank, with $85 million assets, are the first Digital Insight clients to launch account aggregation, which enables customers to securely manage all their financial relationships from a single Web address with one password.

“Account aggregation is a service that our most profitable customers have requested. Providing them with one-step access to all of their accounts really boosts the stickiness factor for our Internet channel and contributes to customer retention,” said Andy Hardin, marketing director for Allied First. “By partnering with Digital Insight, we were able to implement this service quickly and affordably.”

Digital Insight offers a private-labeled aggregation solution enabling end-users to view, access and manage consolidated account summaries of their user-selected accounts from a variety of supported categories- including bank balances, investments, bills, email, news, travel reservations and much more. Users can access their private information from a personal computer.

“Account aggregation is yet another way Community Credit Union can strengthen our relationship with our members,” said John Bock, executive vice president and chief information officer for Community Credit Union. “Digital Insight continues to offer the latest eFinance technology to their client financial institutions, enabling them to effectively compete with the largest banks in the nation.”

About Digital Insight

Digital Insight(TM) Corporation is the preferred eFinance enabler for visionary financial institutions. Through its comprehensive portfolio of outsourced, Internet-based financial products and services built upon the company’s unique architecture, Digital Insight moves banks and credit unions Beyond Internet Banking(TM) to become the trusted transaction hub for their retail and commercial customers. Digital Insight provides retail and commercial Internet banking, electronic bill payment and presentment, eCommerce portal technology, wireless channel delivery, advanced targeted marketing, website development and maintenance, as well as online and call center lending services. Each Digital Insight product and service reinforces the brands of its client financial institutions. Digital Insight. Beyond Internet Banking.(TM)

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Cap One Corporate Citizenship Director

Capital One Financial Corp. announced the appointment of Dorothy Broadman to Director of Corporate Citizenship. Broadman joins Capital One from the California Federal Bank (Cal Fed) where she managed the bank’s community development department.

Broadman will oversee the management of Capital One’s community affairs, philanthropy, volunteerism, non-profit partnership programs, financial education programs and community development lending and investments, as well as the company’s compliance with the Community Reinvestment Act (CRA).

The Federal Reserve Board recently appointed Broadman the 2002 Chair of the Board of Governor’s Consumer Advisory Council, which advises the Fed on consumer matters, including privacy, consumer protection laws, and CRA. She served as Vice Chair of the Council in 2001.

“Our communities provide us with associates who are key to our achievements, customers who are the bedrock of our business, resources that allow our business to thrive, and support that enable us to operate,” said Nigel W. Morris, Capital One’s President and Chief Operating Officer. “Our commitment to our communities is deep, combining the real strength of Capital One — our associates — with financial resources to provide long-term support to programs that help children at-risk.”

“We created the position of Director of Corporate Citizenship to build on our successful community programs and achieve greater synergy between our volunteerism, philanthropy and community investments,” said Richard A. Woods, Capital One’s Senior Vice President for Corporate Communications, which includes Corporate Citizenship. “Dorothy is the ideal candidate for the position.”

At Cal Fed, Broadman was responsible for customer diversity, community outreach/corporate giving, community development loans and investments, and CRA compliance. Earlier in her career at Cal Fed, Broadman managed the affordable multifamily lending unit. Broadman served in CRA and market-rate commercial real estate lending positions at Citibank and Wells Fargo Bank before joining Cal Fed in 1989.

Broadman currently serves on the Consumer Bankers Association Community Reinvestment Committee, is a member of the Board of Directors of the Low Income Housing Fund, and is a member of the Board of Directors and Chair of the Regulatory/Legislative Committee of the National Association of Affordable Housing Lenders (NAAHL).

Broadman earned a M.B.A. from the University of California at Berkeley and a B.A. from Tufts University with summa cum laude honors and membership in the Phi Beta Kappa Society.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation ([http://www.capitalone.com][1] e.com/> ) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 43.8 million customers and $45.3 billion in managed loans outstanding as of December 31, 2001. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index.

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

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