Stock Update

While the rest of the stock market settled down yesterday, American Express’ stock was beaten down again by another 9.4%. AmEx is now trading at a new 52-week low of $27.38 compared to its share price of $35.01 on Sept. 10. The reaction came from Monday’s statement that AmEx’s third quarter earnings will be affected by the weakness in the travel industry, which makes up one third of AmEx charge volume, and costs associated with relocating its New York City headquarters staff due to the World Trade Center attack. Understandably, American Express yesterday lobbied Congress to provide immediate financial support for the airline industry. Meanwhile MBNA and Capital One were hit hard again yesterday, losing 7.4% and 6.6%, respectively. Capital One reached a new low of $41.96. Providian and NextCard settled down after being clobbered Monday. Providian lost 1% while NextCard gained 2.3%.


Proton Card Support

Datacard Group confirmed Tuesday it will implement full support for the Proton ‘Prisma’ smart card platform through its ‘Affina’ platform management architecture, which also supports ‘MULTOS’ and ‘Java Card’. Datacard’s support of the Proton ‘Prisma’ platform will mark the first time that issuers will have the choice of which technology to deploy based on any of the platforms supported by the ‘Affina’ system. Issuers will be able to select the most appropriate platform based on applications and business drivers available at the time, to add, delete, block or modify applications stored on smart cards after the cards have been issued to consumers. Datacard recently relocated and expanded it London office, which include its ‘Consult p7’ team. (The RAM Report 8/27/01)


CIBC & Juniper

Canada’s CIBC confirmed this morning it is acquiring 51% equity ownership in Juniper Financial and will assume a majority of the board seats, including chair. Juniper Bank, founded last year, is an online credit card and financial services company with $350 million in receivables generated from more than 185,000 credit card and banking accounts. Last month, the Federal Reserve Board approved Canadian Imperial Bank of Commerce’s application to acquire the majority of the shares of Juniper. The development came as Juniper was gathering its third round of funding. Juniper Bank was founded by Richard Vague, co-founder and former Chairman and CEO of First USA, and Jim Stewart, also formerly with First USA. The company was started in January 2000 and began issuing its first MasterCards in October. In May, the Federal Reserve gave the nod to Juniper to become a bank holding company by acquiring a MO-based bank, which through a series of transactions, transferred Juniper’s credit card assets from the Missouri bank to Juniper Bank in Delaware. CIBC is making the acquisition through its US subsidiary. (CF Library 5/25/00; 7/31/00; 10/25/00; 1/5/01; 5/10/01; 8/20/01)



NCR Corporation and Caja Duero, one of Spain’s main savings
banks, have signed a deal to install and maintain 150 NCR ATMs in convenience
locations across Spain, including the installation of 70 Personas 86 machines
at Halcon Viajes, one of Spain’s leading travel agencies.
“In Spain, the number of convenience ATMs has almost doubled in the last
seven years with retail locations being a very popular destination with
several financial institutions,” said Jeff Lutz, vice president of NCR’s
Financial Solutions division for Europe, the Middle East and Africa. “This
trend is likely to continue as financial institutions like Caja Duero see the
business and consumer benefits of having ATMs placed away from bank branches
and located where consumers need cash.”
The ATMs will be located at Halcon Viajes main outlets across Spain where
there is a high throughput of customers.

About Halcon Viajes

Halcon Viajes is one of Spain’s leading travel agencies, with hundreds of
branches across the country. The group that owns Halcon Viajes is also the
proprietor of Air Europa, the first private airline company to fly scheduled
domestic flights in Spain.

About Caja Duero

Caja Duero generated more than 1.5 billion pesetas in 2000. Caja Duero is
the largest provider of ATMs in central Spain.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship
Technology(TM) solutions to customers worldwide. NCR’s Relationship
Technology solutions include the Teradata(R) database and analytical
applications such as customer relationship management (CRM) and demand chain
management, store automation systems and automated teller machines (ATMs).
The company’s business solutions are built on the foundation of its long-
established industry knowledge and consulting expertise, value-adding
software, global customer support services, a complete line of consumable and
media products, and leading edge hardware technology. NCR employs 33,300 in
more than 100 countries, and is a component stock of the Standard & Poor’s 500
Index. More information about NCR and its solutions may be found at .


Mobile 3-D

VISA International this morning announced a new global specification for Internet payments made over mobile phones. The ‘Mobile 3-D Secure’ specification is based on existing payment technologies and is part of ‘VISA Authenticated Payment’, an e-commerce program designed to ensure secure online payment transactions through cardholder passwords. The ‘Mobile 3-D Secure’ specification supports global interoperability, enabling consumers to have a consistent and seamless experience regardless of the method or device being used to access the Internet. It minimizes the impact on merchants and requires no changes to backend payment systems. In Asia, VISA has partnered with Hutchison Telecommunications and Dao Heng Bank to develop a mobile payment service using ‘Mobile 3-D Secure’. In Europe, VISA has signed a strategic alliance with Omnitel Vodafone while, in the US, VISA and Sprint are working together to help facilitate secure mobile payments and create opportunities to purchase goods and services over the Sprint PCS nationwide wireless network.



CIBC, one of North
America’s leading financial institutions and Canada’s premiere credit card
issuer, announced completion of a strategic equity investment in Juniper
Financial Corp. which operates Juniper Bank based in Wilmington, Delaware.
Through its US subsidiary, CIBC is acquiring a 51 per cent equity
ownership in Juniper Financial Corp. by investing in Juniper’s private equity
financing round and will assume a majority of the board seats, including chair
of the board.

Juniper Bank, an online credit card and financial services company, was
founded in January 2000 by Richard Vague, co-founder and former Chairman and
CEO of First USA, and Jim Stewart, also formerly with First USA. Since the
bank’s launch, it has secured more than $350 million in receivables through
over 185,000 credit card and banking accounts.

“This investment in Juniper gives CIBC tremendous capability in the US
market to continue to expand our retail presence and offer valuable credit
products and services to our rapidly growing US customer base,” said David
Marshall, CIBC’s vice-chairman, electronic commerce. “I am also very excited
to be associated with two of America’s most respected credit card executives
and their entrepreneurial team of professionals.”

“CIBC is fully committed to ensuring Juniper’s continued success,” said
Richard Vague, Juniper’s chief executive officer. “This strategic union will
accelerate the growth of Juniper’s successful credit card operations and will
leverage CIBC’s expertise as a worldwide leader in consumer banks operations and strategic partnerships, CIBC is
well positioned to accelerate Juniper’s reach and growth,” said Jim Stewart,
Juniper’s president.

About CIBC

CIBC is one of North America’s leading financial institutions with more
than eight million personal banking and business customers. CIBC offers a full
range of products and services through its comprehensive electronic banking
network, branches and offices across Canada, in the United States and around
the world. To find other news releases and information about CIBC, visit our
Media Centre at .

About Juniper Financial Corp.

Juniper Financial Corp., headquartered in Wilmington, Delaware, operates
Juniper Bank. Juniper aims to make consumers lives simpler and easier by
giving them greater flexibility and control over their finances. Additional
information about the company and its products and services can be found at


CryptoMemory Cards

Atmel Corporation announced the availability of the industry’s first low cost, high security memory devices with data encryption including both synchronous and asynchronous protocols. The AT88SCxxxC CryptoMemory family expands Atmel’s range of secure products, filling the industry need for affordable secure devices for smart card and embedded applications.

This family of products, with memory densities available today from 1Kb to16Kb, allows a system integrator to switch memory density without changing application software. CryptoMemory uses T=0 protocol the same protocol used in secure microprocessors as well as 2-wire protocol for fast data rate exchanges. CryptoMemory does not require an operating system like a microprocessor, therefore it is faster to market, easier to program and allows file management within its zones. Encryption ensures high security within a chip solution at a much lower system cost than microprocessor implementation, and is compliant to the ISO7816-3 standard.

This level of security, previously available only in microcontrollers, opens up new opportunities for affordable smart cards to be used in daily consumer applications. Its features are optimal in applications like driver’s licenses, ID cards, loyalty and e-purse cards such as those used for laundromats, energy meters and voting machines. CryptoMemory’s high security features and low cost make it ideal for building or room access control used in campus cards or hotel entry. It is also being designed into embedded applications, enabling authentication of OEM subassemblies within a system, such as removable storage devices and automotive piece parts. Applications that require the authentication of an individual user to provide access to sensitive information, such as personal computers or storage of secure information in health care cards, will benefit from this new family of CryptoMemory products. These services can now be offered at an affordable price with a chip solution, eliminating the need to wait months for an operating system to be developed.

“We are very excited about the technology advancements we have made in our portfolio over the last few months. We are extremely well positioned to provide leading edge solutions to the security and smart card markets and are actively partnering with world-class solution providers,” said Chris Baumann, director of BiCMOS and secure products at Atmel Corporation. “This new technology secures Atmel’s position as the only semiconductor manufacturer to provide a full range of products that include everything from non-secure serial EEPROMs to cryptoprocessors. The CryptoMemory family, with its low cost, encryption-based, high security circuits allows the entrance of smart cards into the hands of the general public in everyday applications.”

This family of products will be expanded to include 64Kb to 256Kb later this year. Larger densities are planned in 2002. The cost of the CryptoMemory chip solution is so much lower than implementing a secure microprocessor, that Atmel is teaming with major card manufacturers to use CryptoMemory in many of their current microprocessor applications. These are applications where the microprocessor has been used mainly to provide the encryption/decryption functions. The high volume price of these new products, in module/package form, will range from $.30 to $.45 depending on memory density.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, Calif., with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, bipolar SiGe, and high-voltage BCDMOS process technologies.

Requests may be sent via e-mail to or by visiting Atmel’s Web site at [][1].




Datacard Group announced that it will implement full support for the Proton Prisma smart card platform in its landmark multi-application smart card management system. The system, the Datacard Affina platform management architecture, also supports MULTOS and Open Platform (Java Card).

Proton Prisma is an architecture for multi-application smart card systems for applications including e-purse, credit/debit, e-ticketing and public key infrastructure (PKI) authentication. Datacard’s support of the Proton Prisma platform will mark the first time that issuers have the choice of which technology to deploy based on any of the platforms supported by the Affina system, including Proton Prisma, Open Platform or MULTOS. Issuers will be able to select the most appropriate platform based on applications and business drivers available at the time, to add, delete, block or modify applications stored on smart cards after the cards have been issued to consumers.

“With the post-issuance smart card management capabilities of the Affina system, Proton e-purse issuers will have a wealth of new services they can offer their customers,” said Martin Kearsley, senior vice president and managing director of Datacard’s solutions division. “Card issuers will be able to make new applications instantly downloadable via the Internet or other private network at any time, opening new revenue streams, reducing time to market and strengthening customer loyalty.

“We are excited to support the Proton platform, because it will uniquely position Affina as the common interface between three of today’s most popular platforms,” Kearsley said. “Our support for these platforms is important for the industry as a whole, because it brings us much closer to having a true international interoperability standard.”

Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s portfolio includes the world’s best-selling smart card solutions and card issuance systems, as well as a complete line of digital identity systems. Consultative services include a smart card security laboratory that serves the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries. (


Payroll by Touch

Employers no longer have the need for cumbersome and costly plastic cards, paper, passwords or PINs. Indivos a provider of tokenless transaction payment services, is offering merchants a biometric solution to manage their payroll accuracy and employee attendance. Indivos’s time-and-attendance solution manages traditional “time clock”, functions through biometrics-enabled systems that match a minuate template of an employee’s finger image to an electronic image. Indivos’ time-and-attendance service incorporates advanced technology from DigitalPersona and Count Me In LLC. Similar Indivos highly secure biometrics-based technology is used to authenticate credit and debit transactions at the checkout lane in its voluntary Pay By Touch(SM) service. Indivos also works with payment technology market leaders Verifone, Hypercom and NCR to deliver automated authentication and electronic payment services for retailers. Together these companies have more than eight million point-of-sale, electronic cash register, self-checkout and ATM devices worldwide.



Euronet Worldwide, Inc., a leading provider of secure electronic financial
transaction solutions, announced the launch of mobile banking services for
Banca Comerciala Romana, the largest commercial and retail bank in Romania.
BCR, which serves more than 2.5 million customers through 4 million
accounts across 275 branches, chose Euronet Mobile Banking to expand its
current services to accommodate customers who need any-time, any-place
access to their accounts. The product offers BCR customers personalized
messages regarding their accounts, as well as the ability to access
accounts directly from their mobile phone. Euronet implemented this
solution by pairing Romania’s largest bank with the country’s largest GSM
operator, MobiFon. In addition to this new service, BCR also uses Euronet’s
Integrated Transaction Management, ATM Management, Point-of-Sale (POS)
Management, Debit Card and Credit Card systems.

“Euronet is BCR’s only vendor for all of our card and electronic
transaction related applications,” said Mr. Ion Matei, BCR Card Director.
“We regard them as partners and trusted advisors, and I am confident that
they have the expertise and resources to deliver more products, such as
distribution of GSM e-Vouchers and Bill Payment at our ATMs — in a timely
an professional manner.”

BCR’s mobile offering includes Euronet Event Messaging and Euronet
Account Access services. With Event Messaging, the bank communicates
directly with the customer by sending account activity alerts, such as
real-time notification of debit card ATM and POS transactions.
Additionally, the bank can send messages to clients, advertising new
services or notifying them that cards are being delivered. Account Access
enables a customer to query their bank for account information, such as a
balance or a ministatement, and to perform functions, such as intra-bank
transfer even across different currencies and lost/stolen card notifications.
“We are excited about the Euronet Mobile Banking launch,” said Matei.
“The mobile offering helps us to provide the most sophisticated services to
our customers in an easy-to-use package. This innovative solution has
multiple, user-configured features that make it unique in the Romanian
marketplace. It enhances our existing remote banking services and clearly
differentiates us from our competitors. And, the service was fully
implemented and tested in less than 30 days — this project was a huge

“BCR is a great partner in an exciting position,” said Michael Brown,
Euronet Worldwide Chairman and CEO. “With the bank’s substantial customer
base, this mobile banking project could enable BCR not only to quickly
surpass the banking competition within Romania, but also to launch BCR as a
technology leader in all of Europe. Mobile banking is the first step to a
comprehensive m-commerce program. These mobile projects help Euronet
increase its mobile reach and our electronic transactions volume.”
Euronet Mobile Banking and Event Messaging products enable a secure
mobile commerce solution using leading-edge technology, such as Java, XML
and Weblogic on a Windows NT platform. Euronet’s Integrated Transaction
Management enables financial institutions to seamlessly integrate their
remote banking programs — allowing ATM, POS, Telephone, Internet and
Mobile to be implemented easily and affordably as the company grows.

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure
electronic financial transaction solutions. The company offers financial
payment middleware, financial network gateways, outsourcing and consulting
services to financial institutions and mobile operators. These solutions
enable their customers to access personal financial information and perform
secure financial transactions — any time, any place. The company has
processing centers located in the United States, Europe and Asia, and owns
and operates the largest independent ATM network in Europe. Euronet was
recently ranked number two on the Deloitte & Touche Technical Fast 500, a
ranking of the fastest growing technology companies in North America. With
corporate headquarters in Leawood, Kansas, USA, and European headquarters
in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries.
Visit our web site at

About Romanian Commercial Bank

Banca Comerciala Romana is the largest commercial and retail bank in
Romania. BCR has more than 4 million accounts, well over 500,000 debit
cards issued, a network of 330 ATMs and 275 branches located throughout
Romania. The Romanian Commercial Banks holds over 30% of the national
credits and deposits market. As of December 31, 2000, the BCR Group
reported $2,957 million in total assets and a net annual profit of $102
million. In 2000, the prestigious British magazine The Banker (a member of
the Financial Times Group) awarded BCR the title of “Bank of the Year in



SchlumbergerSema launched its new Prismera range of multi-application smart cards based on the Proton Prisma specifications at the Proton World Forum in Brussels.The Prismera range reflects the real-world diversity of smart cards, meeting the needs and budgets of players with comparatively modest requirements, as well as those requiring sophisticated features such as post-issuance application activation and advanced PKI.

Prismera has already been selected as one of the cards for the Ducato project, which will test e-purse interoperability based on CEPS in Belgium, France, the Netherlands and Spain. SchlumbergerSema has also supplied Prismera cards to Proton World for the technical tests that will precede the first pilot test of Proton Prisma cards by Nordea in Sweden.

Proton World is in the process of certifying the Prismera card, and SchlumbergerSema anticipates commercial availability in Q2 2002.

The Proton Prisma range of smart card products, which was launched earlier this year, retains and reinforces the open architecture and state-of-the-art, end-to-end security that has contributed to the success of the Proton technology, and offers compliance with the leading international smart card standards. This means that issuers retain the widest possible choice of system components from leading manufacturers, such as SchlumbergerSema, within a security framework defined by Proton World.

Armand Linkens, CEO of Proton World, said: ” We see Proton Prisma as the next generation of smart card products, which will be far more diverse and will require great flexibility.To achieve our ambitious targets for Proton Prisma, we need to build strong partnerships with leading manufacturers such as SchlumbergerSema, to jointly leverage and answer the needs of issuers around the world. The Prisma In Action circuit is the first opportunity for our prospects, customers, partners and guests to see for themselves the diversity of applications supported by Proton Prisma.”

SchlumbergerSema is a leading information technology services company providing consulting, systems integration, managed services, business continuity systems, products and IP network security solutions serving the telecommunications, utility, finance, transport, oil and gas, and public sector markets. With more than 30,000 employees in 130 countries, SchlumbergerSema is one of two business segments of Schlumberger Limited, a global technology services company. For more information about SchlumbergerSema, visit Prismera is a trademark of Schlumberger.



ActivCard, a leading provider of smart card and
digital identity provisioning products and technology, announced it has
acquired Authentic8 International, a privately held, Australian-based company
offering technology and services required for banks and service operators to
deliver managed digital identity solutions. Under the terms of the agreement,
ActivCard has purchased all outstanding shares and stock options of Authentic8
for US$15 million in cash.

“We recognized the value of combining Authentic8’s Internet Authentication
Service (IAS) platform with ActivCard’s digital identity solutions last year,”
stated Yves Audebert, Vice Chairman, President, and Chief Operating Officer of
ActivCard. “In April, we elected to terminate the previous agreement to buy
Authentic8 for cash and stock due to economic conditions. Now, with a
restructured agreement, we believe we will be able to realize the potential of
the combination of our companies at a more reasonable valuation.”
As a result of the acquisition, ActivCard expects to be able to offer
large telecommunication and Internet service operators a digital identity
solution, which will enable them to deliver managed Internet Authentication
services. End customers who subscribe to these services will receive the
benefits of a digital identity provisioning system and the benefits of
outsourcing their networking infrastructure.
“Today, leading enterprises such as British Telecom, the U.S. Department
of Defense, Hewlett Packard and Sun Microsystems have selected to use
ActivCard and Authentic8 systems,” continued Mr. Audebert. “We believe that
the combination of Authentic8 and ActivCard will result in a platform that
integrates into a service operator’s customer care, provisioning,
authentication, encryption and access systems. This unique offer will enhance
both the British Telecom and Cable and Wireless systems already in operation.
It will also give us a powerful solution offering for service operators who
are building value-added services on their existing networks.”
“The infrastructure for identity and access management is essential to the
conduct of e-business based on trusted relationships,” said Phil Schacter,
vice president and service director for the Burton Group, an industry analyst
firm. “The combination of ActivCard and Authentic8 provides important
components that support the large-scale provisioning of smart cards as a
portable form of digital identity for the enterprise.”

About ActivCard

ActivCard, a leader in digital identity and electronic certification
technology, delivers core components required to enable next generation
e-Business communications and transactions. ActivCard solutions, in
conjunction with the applications support for public key-based data
confidentiality, and integrity, allow individuals and businesses to perform
secure online transactions over the Internet with the ease-of-use of an ATM
transaction. Today, more than 2 million people use ActivCard products for
secure Internet banking, Web access and remote access to corporate networks.
ActivCard has headquarters in Fremont, California, and Suresnes, France with
worldwide operations in Australia, Germany, Japan, Sweden, Singapore, and the
United Kingdom.