Kodak is deploying a total of 40 vending machines during the Salt Lake Games. The Olympic-themed devices are climate-controlled to ensure the film remains in optimum condition and will only accept debit or credit cards. Kodak is partnering with Maytag’s Dixie-Narco vending machine division and PA-based Stitch Networks to enable the vending machines to accept debit and credit cards. The devices are connected to the Internet and process transactions through network servers. Kodak began the vending machine program 18 months ago in selected test markets.Details
NEC has won a 1.6 billion yen (US$12.15 million) contract to build a
processing system for digitizing data on the 12 million smart ID cards issued
to-date by the government of Hong Kong. Under terms of the contract, the NEC
project for the Immigration Department is to be completed by the end of 2003.
The Hong Kong government plans to issue smart cards to all its citizens during
2003. The cards will initially be used for identification, customs, and tax
Beijing is gearing up to introduce smart cards on more than 100 bus routes by
June of this year. Since June 2001, Beijing Bus has deployed automatic
ticket machines for smart cards on more than 500 buses on 20 routes. The
contactless smart cards will eventually be used to pay for road tolls, taxis,
and subway transit. There are three providers of bus service in Beijing
including the state-owned Beijing Public Transport Corp, publicly listed
Beijing Bus Shareholding Co and Beijing Yuntong, a collective-ownership
company. The government is seeking to replace buses and deploy smart cards
ahead of the 2008 Olympics.
ECHO and First Preferred Bank reached a settlement with First Charter Bank last week in the Superior Court of the County of Los Angeles. The ‘Mutual Release and Settlement’ releases ECHO and First Preferred Bank from any other liability in connection with the merchant marketing and processing agreement with First Charter Bank entered into on June 25, 1994. ECHO terminated its processing agreement with First Charter Bank and filed a lawsuit on October 11, 2000 due to First Charter Bankâs failure to honor the terms of the agreement.Details
NEXAGE, Inc. ([http://www.nexage.com]), an e-Business software and services company, announced the launch of mCash, a mobile and virtual payment card solution for Wireless Carriers, Banks and Merchants. Wireless customers can use their phones and mobile devices to pay online and offline (brick & mortar) merchants, vending and ticketing machines, and to other phone users. NEXAGE mCash micro payment system is highly secure, convenient and cost effective compared to other online payment systems currently available.
mCash is a high-volume secure virtual payment solution for traditional commerce, e-commerce and m-commerce transactions. It allows for one touch mobile payments over the Internet, in Retail Stores or at the Vending machines. It is a perfect solution for micro payments traditionally paid by cash. Wireless Carriers can offer mCash as a mobile payment solution to their customers. Grocery and convenience stores can use mCash system to issue virtual payment cards. This would allow them to reduce the time customers spend in line at the store and offer an alternate form of payment that is very cost effective. Banks can offer mCash service linked to customers’ bank accounts. This allows customers to use their mobile device to make payments anytime, anywhere and paves the way for new sources of income for service providers. mCash system operator would allow customers to open a deposit account. Customers will then access these accounts from their mobile phones and pay for various services in the same way they would use a regular payment card to pay with money withdrawn from their bank or credit card accounts. mCash platform allows the operator to facilitate, collect, process and clear payments and transactions between customers and merchants.
“NEXAGE is a technology innovator and payment expert and aims to re-engineer the electronic payment infrastructure to meet the changing requirements of the virtual world,” said Devkumar Gandhi, CEO of NEXAGE. “We expect Operators, Merchants and Customers to find the mCash payment option easy to use, convenient and highly cost effective,” he continued.
1. User walks to the ticketing booth at an event to purchase tickets. User scans the event price bar code using a bar code reader attached to the phone; mCash system verifies the account, the merchant and the amount, and issues credit after confirming with the user. On receiving the credit the Merchant system requests the ticketing machine to issue the tickets.
2. European traveler could make mCash payments to merchants in local currencies and keep replenishing their account in native currency. This allows cross border currency payments.
NEXAGE is an e-Business software and services company, focusing on developing and implementing Wireless, Internet, and E-commerce technologies and services for the Wireless Telecom, Finance and Healthcare industries. NEXAGE mCash is a mobile payment service network that consists of mCash network infrastructure and services provided to Merchants, Wireless Carriers, Businesses and Consumers.
Jack Henry & Associates announced it has completed its purchase of Transcend Systems Group, Inc., a provider of customer relationship management software to community financial institutions. The transaction was a combination of cash and common stock and is expected to be immediately accretive to earnings.
Transcend Systems will continue to operate from its Sioux Falls, South Dakota offices as a subsidiary of Jack Henry & Associates, offering its affordable CRM solution, Relationship Explorer, to community financial institutions. Relationship Explorer is available to JKHY customers immediately. Separately, Jack Henry is developing a comprehensive and fully integrated CRM solution through a partnership with privately held ARGO Data Resource Corporation. This product is slated for release at the end of calendar 2002.
“One of the fastest growing technology applications in today’s market, CRM solutions provide data and tools for cross-selling customer tracking, sales management, incentive compensation, profitability analysis and customer satisfaction improvement processes,” said Terry W. Thompson, President. “The Transcend acquisition, coupled with our alliance with ARGO, will provide a full complement of CRM tools for all our customers. We believe CRM products will begin to contribute significantly to our revenues and profits next year (fiscal 2003), and expect they have the potential to contribute $100 million or more to our revenues in the next five to six years.”
Jack Henry & Associates, Inc. provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 2,800 customers nationwide. For additional information on Jack Henry, visit the company’s web site at [http://www.jackhenry.com].
Datakey Inc. announced a $1 million order from a U.S. government agency for Datakey smart cards, card readers and CIP client software. The initial order is expected to ship by the end of the first quarter of 2002 and is approximately 50 percent of the total expected order from the agency, with rollout to be completed during the next six months. Agency employees, contractors and other approved personnel will use Datakey smart card technology for secure facility and network access.
About Datakey Inc.
Datakey Inc. ( [http://www.datakey.com]) is a pioneer in developing smart card-based solutions for information security applications. Datakey smart card technology secures business-to-business e-commerce by:
— Safeguarding a user’s digital identity.
— Authenticating and controlling user access to enterprise networks, applications and resources.
— Protecting the integrity and privacy of data shared over corporate networks and the Internet.
Datakey solutions focus on the ease of deployment, use and management of smart cards in an enterprise for a wide range of logical and physical security applications — including password management, host authentication, Windows 2000 log-on, VPN access, web authorization, desktop security, corporate badge and building access, biometric integration, public key encryption, digital certificates and digital signatures.
IGT capped a year of demand for its EZ Pay Ticket System-equipped gaming machines with the first installations at casinos in Atlantic City, Colorado and Indiana. Additional installations of EZ Pay machines at casinos in Southern Nevada and Manitoba, Canada, brought the total installed base of the ticket-in ticket-out machines to more than 34,000 units in 58 locations worldwide.
Bally’s in Atlantic City became the first casino there to offer EZ Pay technology. Bally’s offers 54 of the machines, all video nickel games, and said it intends to convert up to 4,200 slots to the EZ Pay system, after the machines pass a 60- to 270-day test period by the Casino Control Commission. Park Place Entertainment, which owns Bally’s, plans to expand EZ Pay installations to its other Atlantic City casinos — Caesars, Claridge and Hilton — by the end of March.
“We’re very pleased with the progress EZ Pay technology is making in every gaming venue where it’s been introduced,” said Rich Pennington, IGT’s Senior Vice President of Product Management. “The response to ticket-in ticket-out technology has been positive from customers and casino operators, which include Park Place Entertainment properties and a host of others.”
Other December EZ Pay installations included:
— The new Green Valley Ranch casino in Henderson, Nev. — 2,000 machines connected to the EZ Pay System; — Forty machines at the Avi Casino in Laughlin, Nev., and 43 machines at Buffalo Bill’s in Primm, south of Las Vegas; — Sunset Station in Las Vegas — 361 machines; — Blue Chip casino in Indiana — 127 machines; — Isle of Capri in Colorado — 38 machines; — Two casino properties in Manitoba, each with 140 machines.
EZ Pay technology combines ticket printers with traditional machine hopper pays to improve the cashout function on a gaming machine. Casino operators can program a machine to pay a portion of its payout in coins and the rest as a ticket. That ticket can be redeemed or played in a variety of ways. It can be reinserted in other EZ Play machines, exchanged for cash at a casino cashier, cashed by casino floor attendants with wireless validation units, or even held by the player for use at a later time. The system can also be programmed to pay out tickets only, with the hopper as a backup.
IGT is a world leader in the design, development and manufacture of microprocessor-based gaming products and software systems in all jurisdictions where gaming is legal. For more information on International Game Technology, visit the company web site at [http://www.igt.com[.]]
The California Department of Financial Institutions announced this week it is offering a informational chart about minimum payments on credit cards on its Web Site. The ‘AB 865’ (Chapter 711, Statutes of 2001) requires a credit card issuer to provide cardholders information regarding the length of time it will take to pay off the balance due on an open-end credit card account. As part of ‘AB 865’, DFI was required to establish a detailed chart illustrating the approximate number of months, in addition to the approximate total cost, to repay an outstanding balance if the cardholder pays only the required minimum monthly payments.Details
Less than 20 million bank credit card accounts changed ownership last year as the result of portfolio sales, compared to about 25 million accounts that changed hands in 2000. The average premiums paid for the portfolios sold during 2001 averaged 18.1%, down slightly from 18.5% for 2000, but still significantly higher than the 13.1% average premium paid in 1998. According to data complied by Thousand Oaks, CA-based R.K. Hammer, at least six proposed credit card deals were pulled from the market last year mostly for low-ball bids averaging about 10%. Hammer notes that regulators have declined to approve sales of sub-prime or secured portfolios, even those between well capitalized, willing buyers and sellers with signed definitive agreements. Portfolio credit quality will continue to impede portfolio sales during 2002. Hammer specializes in card portfolio valuations, fairness opinions and buy/sell/hold decisions.
PERFORMING PORTFOLIOS SALES
1986 1990 1995 1996 1997 1998 1999 2000 2001
Avg Weighted Premium: 20.4% 18.7% 20.7% 17.7% 13.2% 13.1% 16.4% 18.5% 18.1%
Minimum Premium Paid: 14.3% 7.0% 5.0% 0.0% N/A (30.0%) 3.0% 2.0% 3.0%
Maximum Premium Paid: 29.6% 27.0% 27.5% 23.0% 24.5% 25.2% 23.9% 27.8% 29.8%
Source: RK Hammer Investment Bankers (Thousand Oaks, CA)
Bankcard issuers will be able to use a new smart card application for the convenient storage of data on the smart Visa cards. The “Convenience Storage” application was developed by Oberthur Card Systems and is based on the smart Visa Framework, which Oberthur developed with Visa U.S.A. earlier this year. The smart Visa Framework is a comprehensive set of commands, data structures, security protocols, and access methods that help to generically manage personal data. Also, pending Visa certification, Oberthur plans to introduce its new CosmopolIC Lite low-cost Open Platform card featuring the smart Visa Framework in ROM in early 2002.
“The key advantage we provide is that the card gives cardholders total control of any data they might want to store on the card, from payment products to drivers’ license information, through a global PIN management system,” noted Oberthur executive vice-president of sales and field marketing Thierry Burgess. “Personal data is securely stored directly on the smart card.”
Cardholders will be able to use Oberthur’s PC-based Convenience Storage application to store and retrieve any type of data from their card. Typical uses include the storage of personal information such as birthdays, Social Security numbers or frequent flyer account numbers.
The smart Visa Framework applet suite was designed by Visa U.S.A. and developed by Oberthur. It integrates standard functions, commands and data structures for personal data applications, whether for authentication or convenience purpose. The smart Visa Framework also offers a standard security framework for the management of credentials — such as pass codes and digital certificates, and standardized functions such as common PIN management. The Convenience Storage application utilizes the smart Visa Framework to introduce a tag-based data structure allowing for the storage of a wide range of personal information on a smart card.
“We are very pleased with the result of our collaboration with Oberthur,” said Patrick Gauthier, senior vice president of smart card applications for e-Visa, a division of Visa U.S.A. “With these new products, Oberthur demonstrates their broad understanding and ability to deliver on the value proposition for smart cards.”
About Oberthur Card Systems
Oberthur Card Systems (Paris Stock Exchange – Code EUROCLEAR 12413), a global leader and the innovator in the smart card industry, is shaping the future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet technologies & Internet-based card management services coupled with a firm commitment to open standards.
Championing EMV migration, Oberthur is the world’s number one supplier of MasterCard and Visa cards, a leader in the banking, e-commerce, m-commerce and pay-TV sectors, and in Java(TM) and GSM technologies.
Oberthur Card Systems has an international reach with an industrial and commercial presence in 21 countries across the five continents. Oberthur Card Systems had sales of 451.1 million Euros in 2000.Details
Dogged by charges of predatory lending practices, Household International announced it will launch a $12 million national advertising campaign next week. Aimed at business and opinion leaders, the campaign will emphasize Household’s nearly 125-year record of helping customers get the credit they need to get a new start on life, make a major purchase, send a child to college or meet unexpected expenses. Developed by Gotham Inc., the campaign breaks on network and cable television programs, as well as in leading business publications. The campaign is an extension of a corporate branding program that Household initiated in 1999, which included the launch of a new corporate identity and brand in early 2001.Details