Chase World Mastercard

The ‘World MasterCard’ got a big lift yesterday as Chase Manhattan announced the launch of the ‘Chase World MasterCard’. The Chase version offers consumers a fixed 9.9% APR with a $75 annual fee. The ‘World MasterCard’ features no pre-set credit limit with the option of revolving a portion of the balance. It is a product directly targeted at American Express cardholders as a hybrid charge card/credit card. The value-added MasterCard enables cardholders to earn miles toward free flights on any major airline with no blackout dates. Additionally, the card features a 24-Hour ‘Global Concierge Service’ and the Chase ’24-Hour Travel Center’, which offers 5% cash rebates on travel and hotel discounts of up to 15%. MasterCard introduced the ‘World MasterCard’ in Oct. 97 to serve the growing number of affluent, convenience-only cardholders . . . . mostly aging baby boomers. Although not widely available, the ‘World MasterCard’ is also offered by Bank of America and Household Bank. VISA’ offers a similar product called ‘VISA Signature’.


CFI Acquisitions

OR-based CFI ProServices made two major acquisitions Monday that will make CFI the first software provider to have over one million consumers using its technology to perform on-line banking functions through CFI financial institution clients. CFI is acquiring both information management software company ULTRADATA Corp. and home banking/e-commerce firm MECA Software LLC. CFI is buying CA-based ULTRADATA, which had 1998 revenues of $30.8 milllion, for $63 million. ULTRADATA has 430 credit union customers and employs 175 people. The ULTRADATA transaction is expected to close during the third quarter.

CFI will assume approximately $10 million of net liabilities of MECA and will issue 50,000 shares of CFI stock to MECA’s owners. MECA, based in CT, had 1998 revenues of $23.6 million and employs 266. The MECA acquisition will close this week.


Globeset OEM Agreement

GlobeSet Inc., the world’s largest OEM provider of software solutions for electronic commerce, Monday announced that it has completed an original equipment manufacturer agreement with Creative Digital Technology of Australia. CDT will license, market, sell and support GlobeSet’s transaction and payment processing solutions as part of their ActivePayment line of products.

CDT, founded in 1992, introduced Internet commerce to the retailing industry in Australia in 1995 and is today the leading provider of e-commerce applications in Australia and a government-approved Internet technology provider. At the Internet World `98 Exhibition, CDT was awarded “The Award of Excellence for Best Business Software” for the latest version of its e-commerce system, NetCommerce II. CDT was the first in Australia to provide a complete e-commerce environment with payment gateways to two major Australian banks and is involved in a SET pilot with VISA International and a major Australian bank.

CDT is also the provider of payment gateway solutions currently being deployed with a major Australian bank. CDT’s ActivePayment(tm) products — of which GlobeSet’s SET(tm) Secure Electronic Transaction solution will be a part of — offer advanced, secure multi-payment transactions for Internet commerce.

“The Pacific region, and especially Australia, represent an enormous opportunity for GlobeSet to extend its global reach and increase market potential,” said Dennis Jolly, vice president, sales, marketing and operations, GlobeSet. “GlobeSet’s leading technology and CDT’s leadership and experience will prove to be a winning combination in providing comprehensive business solutions for the region’s customers.”

CDT’s ActivePayment is a multi-payment gateway, which supports all conventional payment methods including credit cards, account payments and eCash. To compliment their existing product line, a SET solution powered by GlobeSet, is now available allowing financial institutions, merchants and their customers to conduct secure Internet purchases.

“GlobeSet’s SET technology enhances our capability to provide a complete multi-payment transaction processing system to financial institutions and telco’s. CDT is fully committed to SET standards and clearly GlobeSet is the market leader in SET technology,” said Bahram Boutorabi, chief executive officer, CDT. “We anticipate a very successful relationship with GlobeSet and expect to deliver quality products and solutions that will give our customers significant time-to-market advantages as they expand to deliver electronic commerce services to their customers.” Additional information about CDT can be found at [][1].

About GlobeSet

GlobeSet Inc., is the world’s largest OEM provider of software solutions for electronic commerce. The company’s server-based products enable e-commerce production deployment and offer a migration path across multiple evolving transaction/certificate standards. With offices in the United States, Europe, and Asia Pacific, GlobeSet’s OEM partners have implemented numerous electronic commerce solutions around the world for major banks, retailers and financial processors. Founded in 1996, GlobeSet Inc. is a privately held corporation headquartered in Austin, Texas. Additional information about GlobeSet can be found at [][2].




CA-based Trivnet Inc. Monday announced ‘WiSP’, a secure Internet payment service that bills digital purchases automatically to the user’s Internet Service Provider account. Trivnet leverages existing ISP relationships with on-line buyers and merchants to deliver ‘WiSP’, the first Internet payment service that allows buyers to purchase digital goods without user registration, software downloading or disclosing credit card information. WiSP users are automatically identified through their ISP and receive the billings for WiSP-enabled purchases directly on their ISP bill. In environments where multiple users share a single ISP account, users can identify themselves individually through the optional use of a pin number.


Growing SCF

The Smart Card Forum, yesterday announced that eight new corporate and government members have joined the ranks of the organization as Auditing Members. The new members include: Authentic8; Baltimore Inc.; Cylink Corp.; First Consulting Group; MobiNetix Systems; Mondex Canada; National Security Agency; and TeleCommunication Systems. This membership category provides privileged access to the Smart Card Forum Consumer Research, other Forum sponsored research and documents, along with attendance at the Technical Working Group sessions, Educational Institute programs, and the Annual Meeting. S CF currently has about 200 members.


NextCard To NextBank

Friday’s initial public offering of 6,000,000 shares of NextCard common stock, priced at $20 per share, will open at $33.50 per share this morning. More than 8.0 million shares traded hands Friday with the stock trading from a low of $32.00 and a high of $40.75. The stock is trading on Nasdaq under the ticker symbol “NXCD”. The NextCard prospectus indicates the company intends to use some of the proceeds from the IPO to establish its own credit card bank, NextBank. The company says it will use at least $20 million to capitalize the bank. NextCard has already applied to the OCC for the charter. The company currently purchases card receivables on a daily basis from its issuer, CA-based Heritage Bank. Up until Jan 12 of this year Heritage funded all card receivables.


Wave Systems 1Q/99

Wave Systems Corp., a provider of electronic commerce, content distribution and security services, Friday reported results for the first quarter ended March 31, 1999. Wave also reviewed recent progress it has made in extending its Internet presence; in positioning the Company for deployment of its EMBASSY technology in a broader range of computers and electronic devices; and in expanding the range of potential applications being developed to benefit from the unique e-commerce and security capabilities of the EMBASSY platform. Reflecting its accelerated investment in enhancing its back-office and service infrastructure and expanding its sales and marketing efforts, Wave Systems, a development stage corporation, reported a net loss to common stockholders of $3,679,000, or $0.11 per share, for the first quarter ended March 31, 1999. Included in the results is a one-time, non-cash interest charge of $666,000, or $0.02 per share relating to a Black-Scholes valuation of 275,000 Warrants issued as part of bridge loan financing. In the prior year’s first quarter, the Company had a net loss of $2,095,000, or $0.08 per share. The weighted average number of basic shares outstanding in the first quarters of 1999 and 1998 was 32,148,000 and 27,359,000, respectively.

Reflecting the Company’s private placement of $23 million in Class A Common Stock to institutional, strategic and accredited individual investors, as of March 31, 1999, Wave had working capital of $17,748,000, total current assets of $21,506,000 and total current liabilities of $3,259,000. Commenting on the Company’s progress, Steven Sprague, President, stated, “Wave continues to make substantial progress in several areas of strategic importance to the Company, and our recent private placement provides a strong financial footing on which to move forward. In particular, recent agreements with Sigma Designs, Inc. (Nasdaq:SIGM), Actiontec Electronics and Atmel Corporation (Nasdaq:ATML) expand our opportunities for deployment, and Hauppauge Computer Works, Inc., a subsidiary of Hauppauge Digital, Inc. (Nasdaq:HAUP), is still slated to commence product shipments incorporating our technology by the end of our second quarter.

“Wave has also made significant progress establishing additional strategic relationships to expand the scope of applications being developed to utilize the EMBASSY platform. Our relationship with Security Dynamics’ RSA Data Security, our partnership with Sarnoff Corporation to form inTelecast and the incorporation of the Sun Java Card(TM) smart card application framework address this goal and demonstrate the broad potential for EMBASSY. “Focusing on the Internet, we launched the MyPublish digital content distribution system and secured an important partnership with (Nasdaq:TGLO) to provide access to MyPublish to its nearly 10.2 million users and 2.3 million members.

“Though we are pleased with our progress to date, we continue to pursue new strategic partnerships with a broad range of companies with the ultimate goal of developing broad-scale availability of a growing range of e-commerce and security services.”

About Wave Systems Corp:

Founded in 1988, the mission of Wave Systems Corporation is to create the world’s best technologies and services to secure and sell digital information. Wave’s core EMBASSY technology is an inexpensive, proprietary hardware and software-based device that enables secure transaction processing and distributed information metering in users’ PCs. Embedded in PC hardware and peripherals, set top boxes and other devices, EMBASSY is the foundation for client-based security applications and a new distribution and purchasing model for content and services. This low-cost, secure “system within a system” will enable the personal computer to assume an important new role in the evolving digital economy. By moving secure transactions to the desktop, Wave provides intrinsic value to the electronic commerce process, benefiting PC users, application developers, and hardware manufacturers. For more information, please visit Wave’s corporate web site at [][1].

For additional 1Q/99 financials on Wave Systems please visit CardData ([][2])




SIMS Communications Inc. Friday reported that revenue for the three month period ending March 31, 1999, increased 135 percent to $512,568, compared with revenue of $217,882 posted for the same three month period ending March 31, 1998, reflecting the company’s focus on their medical transaction processing business segment.

Gross profit totaled $323,686, a 286 percent increase over gross profit of $83,774 reported for the same period last year.

For the nine month period ending March 31, 1999, SIMS reported revenue of $1,284,585, a 96 percent increase over previous revenue of $654,885 posted for the same nine month period ending March 31, 1998. Net losses for the current nine month reporting period were reduced to $4,532,730, or $0.46 loss per share, compared with net losses of $4,791,434, or $1.71 loss per share reported for the comparable nine month period.

The company noted that as of March 31, 1999, stockholders’ equity totaled $4.03 million and net tangible assets reached $3.16 million. The net tangible assets reported exceeds the $2 million requirement instituted by Nasdaq and represents the final exception requirement.

On May 12, 1999, the company received correspondence from Nasdaq stating that it had met the second requirement necessary for continued listing on The Nasdaq SmallCap Market by fulfilling the Nasdaq Closing Bid Price Rule. Although it has not yet received confirmation from Nasdaq, the company believes that they have now fulfilled all qualification requirements in order to remain listed on the Nasdaq Stock Market.

SIMS Communications provides electronic transaction solutions for the health care industry. The company’s products include: its MedCard System, a system that provides 100 percent paperless electronic data entry at the physician’s office for all medical insurance billings and collections; its One Medical Service System, a cost-effective solution that gives pharmacies the ability to provide a complete, one-stop shopping solution for all its customers’ home medical equipment (HME) and home health care related service needs and to participate in managed care contracts; its Internet HME e-commerce sales, and its Internet health care portal, both under development, that will deliver health care information to consumers and health care providers and also will provide links to other Internet health care Web sites. For more details on SIMS 1Q/99 financials please visit CardData ([][1])



Amex Canada

American Express reported Friday that spending on its consumer and corporate cards was up 18% for the first quarter of 1999 in Canada. The company says that its total cardholder base in Canada has also increased by 14% from a year ago. Most of the new growth is coming from new credit cards, such as the American Express ‘AIR MILES Credit Card’, but enhancements to rewards programs on Amex’s premium charge card products have also had a positive impact both on card acquisition and billings. The number of new ‘Platinum Cards’ issued were up 20% over last year due to the added benefit of free Canadian Airlines companion tickets and to the introduction of ‘Points Accelerator’.


Mileage Plus Bonus

United Airlines announced Friday it has created a new program the enables merchants, for the first time, to determine their own mileage value offer for transactions. ‘Mileage Plus Shopping’ merchants will be able to specify the reward level for each purchase dollars, from one mile per dollar to ten miles per dollar. The MPS program was developed out of the Momentum Merchant Network, which provides a technological platform eliminating the need for tracking and reporting merchant sales and making all transactions entirely transparent. The ‘Momentum’ program was developed by a partnership between SHC Direct, Vital Processing Services and Universal Value Network.

[Click Here For Mileage Plus Shopping Brochure][1]

[1]: /cardflash/secure/oldstatic/1999/may/mp1.html


Triton Record

MS-based Triton Systems announced this morning that its ATM shipments for 1998 surpassed 10,000 units for the first time, a 35% increase over 1997. Triton says it has deployed off-premise ATMs in more than 30,000 retail locations. The company says the figures places it as the fifth largest ATM manufacturer in the world and, for the fourth consecutive year, the third largest in the U.S.