Metris 2Q/01

Sub-prime specialist Metris Companies/Direct Merchants crossed the $10 billion level in credit card receivables during the second quarter, growing 29% annually. Income from consumer credit card fees and merchant interchange fees grew 28% to $156.1 million for the second quarter compared to $122.2 million for 2Q/00. Metris generated more than 250,000 new credit card accounts during the second quarter to bring total accounts to approximately 4.6 million. The managed net charge-off rate was 10.9% for the second quarter of 2001, compared to 10.6% for the prior quarter and 9.5% for the second quarter of 2000. The managed delinquency rate was 8.3% at June 30, compared to 8.4% at March 31 and 7.7% for 2Q/00. In the second quarter, Metris added 880,000 new enhancement relationships, resulting in active enhancement services memberships of 5.9 million. Deferred enhancement services revenues at June 30, 2001 totaled $180.0 million, compared to $181.8 million for 1Q/01 and $178.7 million for second quarter 2000. Operating earnings for the second quarter were $62.8 million, up 30% from $48.3 million for the same period in 2000. For complete current and historical data on Metris/Direct Merchants visit CardData ([www.carddata.com][1]).

METRIS/DIRECT MERCHANTS TRACK RECORD
2Q/01 1Q/01 4Q/00 3Q/00 2Q/00
EOP RECV: $10.1b 9.5 9.3 8.5 7.8
CHG VOL: $2.5b 2.0 2.5 2.1 2.0
ACTIVS: 4.6m 4.5 4.5 4.4 3.9
CHG-OFFS 10.9% 10.6 9.7 9.8 9.5
DEL (30+dy) 8.3% 8.4 8.3 8.2 7.7
Source: CardData (www.carddata.com)

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

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FDC Licenses VA

Electronic commerce and payments leader First Data Corp. announced its card issuing subsidiary has signed an agreement with ValiCert, Inc., a leading provider of secure solutions for paperless e-Business, to license its ValiCert Validation Authority software. The agreement will enable First Data to provide real-time validation of digital certificates, protecting issuers from risk inherent with lost, stolen, charged-off, bankrupt and revoked cards.

First Data will integrate the software with its certificate management system to help issuers ensure the validity of a digital certificate — which guarantees to an issuer that the card is present — and prevent fraud through a sophisticated authentication process. In addition, issuers will benefit from a quick, efficient way to assign a status for a certificate which outlines specific privileges and transactions rights for a particular cardholder.

“The integration of this new technology highlights First Data’s commitment to offer an information security infrastructure that gives issuers and their cardholders peace of mind for Web-based smart card transactions,” said Julie Nodgaard, senior smart card product development manager at First Data Resources. “Validating certificates real-time will give issuers a powerful tool to verify that the card is present and that the cardholder has all the rights associated with a valid certificate.”

First Data provides several services to smart card issuers through their industry leading Public Key Infrastructure (PKI), including issuing and personalizing certificates, maintaining the certificate information through the life of the card and authenticating that the certificate is valid.

“More and more organizations are realizing the critical importance of providing validation capabilities to ensure the integrity of their business applications,” said Sathvik Krishnamurthy, vice president of marketing and business development for ValiCert. “By adopting ValiCert, First Data is in an ideal position to help issuers safely and securely continue to grow their valuable online services.”

First Data provides a variety of smart card services worldwide for issuing and acquiring financial institutions, including chip personalization, card issuance, card processing, and the maintenance and validation of digital certificates. First Data was the first U.S. processor to support the issuance of multi-application cards using the Open Platform technology as part of the smart Visa launch.

About ValiCert

ValiCert is a leading provider of secure solutions for paperless e-Business. Global 2000 customers in financial services, healthcare, manufacturing and government sectors realize significant ROI from deploying ValiCert solutions to help migrate costly or inefficient business processes to the Internet, without losing any trust and security in the process. ValiCert’s family of products conform to the guidelines of the e-Sign legislation and provide a secure, legal-grade environment for conducting online commerce.

ValiCert has technology and marketing alliances with a range of security, e-Commerce, systems integrators and application specific companies. With its products and services available through a worldwide direct sales force, resellers and global affiliate network, ValiCert is headquartered in Mountain View, California and has operations throughout the Americas, Europe and Asia. More information about ValiCert is available on the World Wide Web at .

About First Data

First Data Corp., with global headquarters in Denver, powers the global economy. As the leader in electronic commerce and payment services, First Data serves approximately 2.6 million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With 27,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; Western Union(R) money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its money transfer agent network includes approximately 109,000 locations in more than 186 countries and territories. For more information, please visit the company’s Web site at .

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ACE CFO

ACE Cash Express, Inc., the nation’s largest check-cashing chain and a significant provider of related retail financial services, has named Joe Conner as senior vice president and chief financial officer. Conner joined ACE on July 16, 2001. Conner was previously the chief financial officer at Crenshaw Golf Properties. Crenshaw Golf Properties provides club owners or developers assistance in consulting, development and management services.

Before joining ACE, Conner had experience with several companies in which he served as chief financial officer including Club Corporation of America, Furr’s/Bishop’s Inc., and Jacobsen Division of Textron, Inc. Conner also obtained his M.B.A. in Finance and Marketing from Southern Methodist University.

“We believe Joe is an excellent fit for the ACE CFO role,” said Jay B. Shipowitz, president and chief operating officer of ACE. “His experience will help move the company forward and we are excited to welcome him to ACE.”

“I look forward to joining the team at ACE,” said Joe Conner. “I believe the company is well-positioned to continue its history of revenue growth and strong financial performance.”

About the Company

ACE Cash Express, Inc. is headquartered in Irving, Texas and is the largest owner, operator and franchiser of check-cashing stores in the United States. Founded in 1968, the company has a total network of 1,153 stores, consisting of 983 company-owned stores and 170 franchised stores in 34 states and the District of Columbia. ACE also maintains automatic check-cashing machines, which provide financial services without the need for a service associate, at 71 locations. ACE offers a broad range of financial and check- cashing services and is one of the largest providers of MoneyGram wire transfer transactions. In addition, ACE offers money orders, bill payment services, and prepaid local and long distance telecommunication services. Under ACE’s agreement with Goleta National Bank (GNB), GNB currently makes small consumer loans available to customers at various ACE company-owned stores. The company’s website is found at .

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BillyWebCard

A FL-based company specializing in multimedia programming dedicated to teenagers is set to offer a prepaid debit card in the U.S. and Europe. The ‘BillyWebCard’ is offered to three different age levels. For 11 year-olds and younger the card does not allow its beneficiary to directly withdraw money, but gives access to purchases made through ‘Club BillyWeb’. For 12-16 year-olds, the ‘BillyWebCard’ is real debit card and allows its owner to withdraw money at any traditional ATM. For 17 years and older, the ‘BillyWebCard’ provides the benefits of an actual bank account and a savings plan yielding a gross interest of 5.25% and can also open up the opportunity to apply for a credit card. The card is a joint effort of BillyWeb Corp., Ibank, and Covefi Bank.

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BILLY-WEB-CARD

BillyWeb Corp., a company specialized in multimedia
programming dedicated to teenagers, and Ibank, a financial solution provider,
join forces to offer teenagers a new generation of savings accounts that
utilize a customized debit card the BillyWebCard.

The Covefi Bank has chosen to join this project to allow teenagers to
learn to manage their own money, in a much friendlier, more appealing and
innovative manner, which currently does not exist in the traditional banking
world. This partnership in particular reflects the philosophy of the bank,
which is to anticipate the needs of its clients, including the younger
generation, and to respond to their expectations in the day-to-day management
of their financial assets. The new project focuses on three age groups as
follows

11 year-olds and younger

The BillyWebCard account allows the 11 year-olds and younger to open a
savings account, with a gross interest yield of 5.25%. When the client signs
up for a new account, they are delivered a smart card using vocal-sound
recognition technology, called “secure-sound,” developed by AudioSmartcard.
This secure and innovative card does not allow its beneficiary to directly
withdraw money, but gives access, through Club BillyWeb, to many privileges
and advantages free tickets, TV shows, premieres, invitations to meet your
favorite star, and various discounts on the trendiest products available
today. To identify themselves and access the Club BillyWeb, the owner of the
card simply pushes the tiny button on the card, which is placed next to the
telephone. The card then emits an audio code, which is immediately recognized
by the server. BillyWeb then greets the card owner by his first name.

12-16 year-olds

The BillyWebCard account dedicated to the 12-16 year-olds is a young adult
savings account with a net interest yield of 4.75%. A real debit card, with an
original (BillyWebCard) design, is provided with this account. It allows its
owner to withdraw money at any traditional ATM. The card also gives access to
the BillyWeb Club, and acts as a privilege card. Each cardholder benefits from
many advantages free tickets, TV shows, premieres, invitations to meet your
favorite star, and various discounts on the trendiest products available
today.

17 years and older

The BillyWebCard can also be offered to the 17 year-olds and older. They
benefit from an actual bank account and a savings plan yielding a gross
interest of 5.25%. They can also benefit from the same advantages that the
other cards have, including full access to the BillyWeb Club. They can also
apply for a traditional credit card, if they wish to do so.

BillyWeb Corp.

Specialized in the production of multimedia programming dedicated to
teenagers, the company BillyWeb conceives, publishes and produces content, TV
programs, games and other multimedia oriented products. BillyWeb Corp’s
(quoted on Nasdaq OTCBB BLLY) objective is to develop educative, innovative
and fun products and solutions for European and American teenagers.

Ibank

Ibank creates and optimizes the remote client acquisition process of
banks, leasing and insurance companies. Ibank integrates the various remote
marketing sales networks (vouchers, telephone, TV, Internet) of the main
financial players.

Covefi Bank

The Covefi bank is a remote-based banking solution, of which its
shareholders are 3 Suisses (66%) and Cetelem (34%). It obtained the status of
a bank in 1992. Targeting individuals, it conceives, creates and manages a
line of banking products and services that eases the process of managing
money. It is accessible by mail, telephone, Minitel, and Internet.
(http//www.covefi.fr)

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Chase i-Card

Chase launched a new credit card featuring a rewards program and online attributes that include a prepaid MasterCard. With the Chase ‘i-Card’ customers will earn a 1% reward on each purchase made with the card, online or offline with rewards received in the form of a ‘Webcertificate’, the online gift certificate developed by Ecount. When a value of $10.00 in rewards is reached, Ecount will send an e-mail notification to the cardholder that a ‘Webcertificate’ reward has been earned. This online gift certificate is a re-loadable pre-paid online MasterCard debit card. The card has no annual fee and an introductory APR of 2.99% for six months on all purchases and balance transfers. The go-to APR ranges from prime +4.49% to +9.49%. The lowest rates are offered to relationship customers who qualify for the Platinum version.

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ONLINE MART

TD Bank Financial Group today announced the
launch of a new e-commerce service for small to medium sized merchants. Online
Mart, powered by Bell Nexxia, provides a secure environment for TD merchants
to connect with customers on the Internet. This service provides merchants the
ability to process online credit card transactions, receive around-the-clock
technical support, and access a full complement of electronic services to
enhance merchant websites as their business needs grow. These electronic
services are also available to those merchants with existing websites.

“Online Mart is yet another example of TD’s commitment to providing
customers with a full e-commerce solution for their business needs,” said
Steve Phillips, Vice President, Merchant Services. “We’re pleased to offer our
small to medium-sized business customers the convenience of a Web-based retail
solution tailored to meet their e-commerce requirements.”

Online Mart offers TD Merchant customers the ability to

– build a secure online storefront that enables online transactions;

– track online orders and view activity reports;

– allow customers to link from TD website www.tdcanadatrust.com directly to an easy-to-use directory of Canadian retailers registered with TD’s Online Mart; and

– obtain a customized e-mail account and one unlimited internet connection

Online Mart enhances TD’s other e-commerce initiatives, including its
award winning online banking service EasyWeb and TD MarketSite, Canada’s first
business-to-business trading portal launched by TD in July 2000.
“Bell Nexxia has worked closely with TD to provide an innovative suite of
solutions, including, Internet connectivity, web-based email and custom-built
portal content around a Bell-hosted e-commerce environment,” said Randy
Reynolds, president of Bell Nexxia.

Merchants who have an existing e-commerce site can also benefit from the
services provided by Online Mart by choosing to add components such as payment
services. This service can be easily added on to an existing e-commerce site
to help facilitate the collection of payments and provide merchants with
reports and information that they can use to improve their product or service.

The new portal found at www.tdcanadatrust.com/merchantservices/onlinemart
(www.tdcanadatrust.com/francais to link to the French version, Magasins en
ligne) outlines how businesses can establish or enhance their online presence
and also includes pricing information.

About Bell Nexxia

Bell Nexxia, a division of Bell Canada, provides total communications
solutions to national business customers and operates a state-of-the-art coast-
to-coast IP-Broadband network. Bell Canada, Canada’s national leader for
communications in the Internet world, provides connectivity to residential and
business customers through wired and wireless voice and data communications,
high speed and wireless Internet access, IP-broadband services, e-business
solutions, local and long distance phone and directory services. Bell Canada
is owned by BCE Inc. of Montréal (80%) and by SBC Communications Inc. of San
Antonio, Texas (20%). For more information please visit www.bell.ca.

About TD Financial Group

In Canada and around the world, TD Bank Financial Group serves
approximately 13 million customers in five key areas personal banking,
commercial banking, discount brokerage, investment management and investment
banking. A member of TD Bank Financial Group, TD Canada Trust, which includes
both TD Bank and Canada Trust retail networks, is Canada’s leading retail
bank. The industry leader in electronic banking and customer service, TD
Canada Trust is focused on building a better bank for Canadians.

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Wireless NewCash

QualcommTel, a leader in wireless services, the Tiller Group, a privately held investment and technology firm, and MerchantOnline, a digital payment products and services provider, announced a strategic relationship to provide digital payment mechanisms to the global wireless marketplace. The relationship includes the purchase of a long-term license for MerchantOnline’s (MOL) NewCash technology, resulting in significant immediate revenue for MOL as well as an ongoing transaction-based revenue flow.

QualcommTel, working with other Tiller Group affiliates, will use NewCash as their base payments product, planning to add additional functionality to offer consumers and businesses a global, wireless suite of financial services which will enable them to pay anywhere, at anytime. These products and services will meet the needs of both the online and physical worlds, wireless as well as traditional consumer, business and government markets. “NewCash’s ability to support smart cards, wireless, stored value, ecash and additional functions provides us the flexibility for online and offline functionality through a single payment instrument,” said QualcommTel’s Chairman, Anthony Georgiou. “By using NewCash’s functionality as the core for our global financial product suite, we envision a vast array of technologies and services that will provide uniquely valuable financial services.” The NewCash system allows instant accessibility to transfer money online from or to anyone anywhere in the world 24/7/365 to family members, business associates or any other individual possessing a card. The NewCash system will allow instant use at millions of point of sale locations.

“MerchantOnline is excited to find a partner who has the vision and global presence to realize the potential of the NewCash system. Physical POS (point of sale) or the Internet, Beijing or San Francisco, this alliance will have a significant impact in the wireless and smart card arena,” said Jim Degracia, President and CEO of MerchantOnline.

About Qualcomm Telecommunications, LTD

Qualcomm Telecommunications Limited is a telecommunications holding company with shareholdings in telecom ventures world-wide including China and Russia where it deploys CDMA technology within the Russian Federation through Metrosvyaz, a company formed as a joint venture between Tiller International and Qualcomm Inc. of San Diego California (Nasdaq:QCOM). Also a shareholder is Leap Wireless Inc. (Nasdaq:LWIN) a spin off of Qualcomm. The shareholders have invested in excess of $200 Million to deploy CDMA in Eastern Europe.

About the Tiller Group

The Tiller Group is a diversified holding company with interests in natural resource development, real estate and telecommunications. Through Tiller International the Group runs an incubator fund specializing in developing its own high tech product portfolio. The company is the holder of more than 200 patents in, amongst others, RF SOI chip development for fourth generation mobile communications.

About MerchantOnline

Founded in December 1997, MerchantOnline () dba NewCash Technologies, Inc. provides a secure transaction network that enables businesses and consumers to use one payment system for both their real world and virtual world needs utilizing credit cards, ATM/debit cards, stored value cards, electronic cash and other payment technologies.

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VISA ELECTRON

Despite a largely cash economy, VISA International plans to issue more than 2.5 million VISA Electron debit cards in Thailand over the next year. VISA projects it will capture a 3% market share this year in Thailand’s 2.5 trillion baht total personal consumption expenditure. Last year VISA’s PCE in Thailand was 2.5%. VISA also says it will double merchant acceptance over the next three years to 240,000 locations. VISA as 15 member banks in Thailand.

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Concur Expense

Concur Technologies, Inc., the leading provider of Corporate Expense Management solutions and most recently named to Puget Sound Business Journal’s “Fastest Growing Public Companies,” announced that it has joined with Bank of America, one of the world’s leading financial services companies, to integrate Bank of America Corporate and Commercial Card data with Concur Expense, the world’s leading Web-based travel and entertainment expense management solution.

Customers using Bank of America Corporate and Commercial Card solutions may now take advantage of Concur’s corporate card integration technology, which delivers increased efficiencies and cost-savings through lower data entry costs, better information for analysis and reporting, improved corporate card compliance, and a seamlessly integrated T&E expense management solution.

“Bank of America’s Corporate Card solutions have achieved tremendous market penetration worldwide and Bank of America is committed to bringing innovative services to corporate business travelers,” said Steve Singh, chairman, president, and chief executive officer for Concur. “For more than seven years, Concur has integrated its solutions with financial products and services around the world to maximize our customer’s process efficiencies and return on investment.”

Concur Expense automates each step of the T&E expense management process — from expense report preparation and approval to policy compliance, data analysis, and reimbursement. With Concur Expense, companies gain new control over their T&E expense management process. Travelers prepare expense reports faster and more accurately, aided by the direct prepopulation of expense data from their corporate charge cards. Expense reports are automatically routed to managers, who can more efficiently approve expense reports on-line and receive immediate notification of non-compliant entries. Accounting is more productive because expense reports are delivered on-line and automatically link to financial and payroll systems, eliminating the need to re-key expense data. Easily accessible expense data allows the company to analyze spending trends and negotiate better supplier rates for additional savings.

About Concur Technologies, Inc.

Concur Technologies, Inc. is the leading provider of Corporate Expense Management solutions that automate costly and inefficient business processes, allowing companies to better leverage their most limited resources: time, money, knowledge, and energy. Meeting the needs of businesses of all sizes, Concur’s solutions include travel and entertainment expense management, employee requests for vendor payments, and time tracking and reporting, and can be delivered through licensed and Application Service Provider (ASP) models. Today, over 725 companies, including AT&T, Citigroup, Daimler-Chrysler, DuPont, First Union, and Pfizer, have licensed over 2 million employees to use Concur’s market-leading solutions to reduce costs, and increase productivity and access to data about internal business processes. Delivering on its commitment to excellence and meeting the needs of its customers across the globe, Concur leverages its strategic alliances with more than 50 world-class organizations such as ADP, American Express, Exodus, KPMG Consulting, Inc., Microsoft, and Microsoft Great Plains Business Solutions, and has successfully deployed its solution to more than 1.2 million employees worldwide. Concur also continues to expand its international market leadership with more than 50 companies deployed outside North America. More information is available via the Internet at .

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Brodia & VPA

The Brodia Group, the global leader in deploying commerce platform and digital wallet technology enabling authenticated transactions on any Web, mobile or other network-connected device, announced today that it is implementing a new secure protocol working with Visa U.S.A., the world’s largest consumer payments system. Brodia is supporting Visa Payer Authentication, a new initiative based on Visa’s 3-D Secure Interoperability Standard that will make Internet shopping better and safer for both buyers and sellers on the Web.

Visa Payer Authentication, part of Visa’s Secure Commerce Program, is designed to reduce the risk of unauthorized use of a cardholder account and make Internet shopping safer for both buyers and sellers on the Web. Visa Payer Authentication uses technology from Brodia and other vendors to enable card Issuers to verify a cardholder’s identity through the use of a password and provide results to the merchant in real-time during the virtual checkout process. Brodia is supporting Visa banks and their cardholders as a standalone application that pops-up a browser window at the end of an online transaction. Visa Payer Authentication is available through Brodia’s industry-standard digital wallet, depending on the preference of the client.

In addition, through Brodia’s Payer Authentication Premium Service Pack, any Visa Issuer implementing a Brodia Payer Authentication offering will have the option to easily activate a range of additional premium cardholder services, including smart card support, an enriched, Web-based personal transaction portal, enhanced digital receipts, programmable card numbers, and integration with any existing card and bank online offerings.

“The online payments market is entering an upgrade phase. We’re excited to support Visa’s initiative in this regard to offer more secure online transactions that provide relief to merchants, consumers, and card issuers from the now well understood negative effects of fraudulent card use and repudiation,” said Brodia CEO Ron Martinez. “We’re especially proud to be offering the industry’s only stand-alone Payer Authentication implementation that is inherently extensible to provide a range of additional premium cardholder services.”

“Brodia’s Payer Authentication Premium Service Pack provides Visa’s Member banks that are implementing Visa Payer Authentication with the ability to authenticate transactions on the Web, and other network-connected devices,” said Jim McCarthy, senior vice president at e-Visa, a division of Visa U.S.A. “Visa is working with a variety of vendors to make Visa 3-D Secure a flexible turn-key solution for Visa Issuers, giving them the opportunity to use the service as other forms of electronic payments emerge.”

About Brodia

Brodia () provides the premier commerce platform and core applications to enable personal commerce, payments and identity management on any Web, mobile or other network-connected device. The Brodia Commerce Platform enables financial institutions, mobile carriers, developers and third parties to build products and extend their services. The company’s services are available through a range of the leading financial institutions whose collective customer base is in excess of 200 million. Brodia is based in San Francisco, and has offices in New York and London. The company’s investors include Bank of Singapore Limited, Capital Z Partners, Draper Fisher Jurvetson, Draper Fisher Jurvetson ePlanet Ventures, Itochu Corporation, MasterCard International and Morgan Stanley Dean Witter & Co.

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TSYS 2Q/01

TSYS reported net income for the second quarter of $26.0 million on revenues of $162.5 million compared to net income of $24.3 million on revenues of $150.5 million for 2Q/00. TSYS’ revenues do not include Vital Processing Services revenues. Bank card processing revenues for 2q/01 were $141.1 million, an 11.9% increase over last year. TSYS currently has 202.1 million accounts on file. During the second quarter, TSYS entered the EBT arena with the signing of a multi-year agreement with Lockheed Martin IMS to provide transaction processing, settlement and recipient call center services to meet Lockheed’s EBT needs. Internationally, TSYS is processing about 23 million accounts on file, is awaiting the last portion of the Royal Bank of Scotland’s portfolio conversion to be completed this quarter. For complete current and historical data on TSYS visit CardData ([www.carddata.com][1]).

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

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