Diebold UK Manager

Diebold International Ltd., has appointed Richard Eagland as country manager for the United Kingdom and Ireland to be based at Diebold’s European headquarters in London. In his new position, Eagland will oversee Diebold’s self-service sales and service efforts in the U.K. and Ireland. Previously, IBM marketed Diebold’s self-service products in the region.

For the past three years, Eagland has been manager, self-service solutions, U.K. and Ireland at IBM. Prior to that he spent 22 years with Philips Data Systems and Digital Equipment in a wide range of sales and marketing positions, with particular emphasis on retail banking solutions. He started his career as a program and systems analyst at Litton Business Systems before moving into sales.

“Having worked on Diebold products over a number of years, I am delighted to join the company at such an exciting time,” said Eagland. “Diebold has established a strong market position in the United States, the world’s largest ATM market, and is now well poised to take a leading share in the international market. I see it as a personal challenge to achieve market leadership in the U.K. and Ireland.”

Diebold, Incorporated (NYSE: DBD) is the global leader in providing integrated delivery systems and services. Founded in 1859, the company employs more than 6,000 associates in some 120 locations worldwide with headquarters in Canton, Ohio, USA. Diebold reported revenue of US$1.2 billion in 1998 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [www.diebold.com][1].

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


MARTA Smart Cards

Atlanta’s MARTA system received a report this week from Manuel Padron and Associates which recommended replacing MARTA’s ‘TransCards” with smart cards and discounting the fare structure. According to the Atlanta Journal and Constitution, the consultant suggested smart cards be discounted deeply enough to encourage up to 95% of MARTA’s 550,000 daily riders to use them. MARTA currently charges $1.50 for a one-way trip. Slightly more than half of MARTA’s current customers use weekly or monthly ‘TransCards’, which offer unlimited transportation for $12 weekly or $45 monthly. MARTA was previously involved in a two-year smart card pilot with NationsBank, which ended in July 98. The pilot involved 2,000 riders. MARTA says the cost of a changing card readers in the pilot, due to a technology change, was too expensive. MARTA’s board will consider the new recommendations this summer.


Contactless Bank Card

A Schlumberger wireless VISA Cash electronic purse card is being piloted in Spain. The new multi-application payment card – which combines a conventional debit function with an e-purse incorporates a contactless wireless interface. The first to exploit the potential of this new capability will be a consortium of transport operators and Spanish banks: a pilot scheme scheduled to start later this year will explore the use of the card’s VISA Cash for public transport ticketing in Madrid and Barcelona. This is believed to be the first time that a regular bank payment card has been fitted with a contactless interface. The new card offers two core functions. The first is VISA Cash which will currently uses a chip and the second function is the VISA Electron debit function which uses a mag stripe. The VISA Cash function will now go contactless.


Discover Recovers

Morgan Stanley Dean Witter reported Thursday that first quarter 1999 net income for its Credit and Transaction Services unit increased by 36% compared to 1Q/98. The fiscal quarter, which ended Feb. 28, shows net income for Credit and Transaction Services of $135 million versus $99 million one year ago. The significant jump in earnings was a surprise considering MSDW unloaded SPS, the Prime Option card portfolio and the Bravo card portfolio late last year. One of the main contributors was a 122 basis point drop in net chargeoffs and a 32 basis point drop in delinquency. As a result, provisions for consumer loan losses dropped 34%, from $684 million for 1Q/98 to $451 million for 1Q/99. For complete 1Q/99 financials for Discover visit CardData (www.carddata.com) and click on Earnings Reports.


1Q99 4Q98 1Q98
Outstandings: $32.1b $32.5 $35.8
Total Cards: 37m 38m 40m
Merch. Locs: 100k 97k 90k
Chargeoffs: 6.28% 6.94% 7.50%
Delinquency: 7.08% 6.53% 7.40%
Yield: 14.06% 14.72% 14.72%
Spread: 8.23% 8.71% 8.46%

b-billions; m-millions; k-thousands; delinquency-30+ day;
yield-interest yield; spread-interest spread; CardData (www.carddata.com)



MasterCard International announced plans yesterday to issue more than 10,000 MasterCard ‘SET Digital Certificates’ by end of this year in Malaysia. MasterCard Malaysia says the certificates will be issued through the Hong Leong Bank. According to Bernama, The Malaysian National News Agency, yesterday’s announcement by MasterCard coincided with the launch of the ‘MEPS Secure Electronic Transaction’ payment gateway in Malaysia yesterday.


Biggest T&E?

VISA has surpassed American Express and MasterCard in card volume produced by international travelers purchasing core international travel and entertainment products and services worldwide. The findings are part of a new WEFA study which indicates that in 1997, travelers used their VISA cards to purchase more than $120 billion in core T&E products and services worldwide, representing over 38% of total T&E purchases for payment cards and a 7% edge over VISA’s closest competitor in the category, American Express (31%). WEFA’s report maintains that worldwide spending on core T&E segments totaled $680 billion in 1997.



Lodging Expenditures 38.5% 29.0% 22.0%

Cruise Sales 46.0% 25.0% 22.0%

Air Travel Sales 39.0% 34.0% 18.0%

Auto Rental Sales 37.0% 35.0% 19.0%

Source: WEFA


FTC Releases Collections Report

In its 21st Annual Report to Congress about the Fair Debt Collection Practices Act (FDCPA), the Federal Trade Commission observed that debt collection continued to be a principal subject of the many consumer complaints received by the agency in 1998. This law, which was passed in 1977, is one of several credit laws enforced by the Commission, and is specifically intended to prevent abusive, deceptive, and unfair debt collection practices in the marketplace.

According to the Commission’s report, “Such practices have been known to cause various forms of consumer injury, including emotional distress, invasions of privacy, payment of amounts that are not owed, and can severely hamper consumers’ ability to function effectively at work.” The report notes that while the agency has primary enforcement responsibility, it works with other federal agencies to enforce the Act and educate consumers. In addition to identifying practices that cause consumer concern, the report also highlighted the Commission’s enforcement and consumer education efforts. Further, the report contains four recommendations for changes to the FDCPA that the Commission believes will improve the statute’s clarity and its effectiveness as a law enforcement tool.

The Commission vote to approve the report was 3-0, with Commissioner Orson Swindle not participating due to illness.


Losses Abating?

Bank credit card chargeoffs continued to decline for the sixth consecutive month according to statistics released this morning by CardData ([www.carddata.com][1]). Chargeoffs for February logged-in at 5.37% of outstandings compared to 5.46% for January. CardData also reports that delinquency dipped under 5.00% for the first time in 26 months. For February, the 30+ day delinquency rate, as a percentage of outstandings, stood at 4.96%, becoming the fourth straight month of decline. CardData tracks performance on $466.8 billion of bank credit card outstandings. Meanwhile Moody’s and Fitch IBCA both report chargeoffs and delinquency are edging down among card-backed securities. The ABA also released fourth quarter data yesterday showing 30+ day delinquency, as a percentage of outstandings, declined to 4.62%.

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


E-Commerce Services Organization

VeriFone, a division of Hewlett-Packard Company and the global leader in electronic payment solutions, Wednesday announced the formation of a comprehensive, worldwide services organization to help businesses work through the complexities of deploying new e-payment offerings.

This team of specialists provides expertise in Internet payment, payment processing, and smart-card services platforms to some of the world’s leading banks and processors, telecoms, retailers and ISPs. This new organization supports HP’s e-services vision.

“The expansion of electronic payment has resulted in two major shifts: Businesses must now have capabilities in enterprise platforms, and they must be in even closer touch with the different requirements of each region,” said Jan-Erik Rottinghuis, vice president and general manager of Worldwide Sales at VeriFone. “Lots of companies are delivering products, but few are truly capable of providing the expertise to help turn these products into functional services. This is a major differentiator for VeriFone.”

The new VeriFone E-Commerce Services Group includes a Technical Support Organization (TSO), Professional Services Organization (PSO), and Customer Support Organization (CSO). Together, the groups provide services ranging from needs analysis and product evaluation, to solution design and implementation, as well as ongoing support and management. The group also has the leverage of HP’s massive services organization of approximately 27,000 professionals worldwide, with extensive experience in enterprise computing.

“New payment applications and the emergence of the Internet have created both great opportunities and incredible challenges, and require the rapid adoption of new enterprise computing technology. It is difficult for businesses to keep up the internal expertise to effectively deploy and manage new e-commerce platforms,” said Tom Kilcoyne, vice president and general manager of VeriFone’s Electronic Commerce Software Division. “Very few organizations in the world have the diverse experience and global resources of VeriFone’s and HP’s service organizations.”

About VeriFone

VeriFone, a division of Hewlett-Packard Company, is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. VeriFone has shipped more than 7 million electronic-payment systems, which are used in more than 100 countries.


Spyrus Buys BlueMoney

SPYRUS, a leading provider of network security development tools, today announced the acquisition of BlueMoney Software Corporation. BlueMoney introduced the world’s first server-side wallet in 1997 and has a patent pending for this invention. Specific terms of the agreement were not disclosed.

“SPYRUS’ acquisition of BlueMoney shows its continued commitment to e-commerce, and to providing a broad range of digital content security and payment tools for network application developers and integrators,” said SPYRUS CEO Sue Pontius. SPYRUS also provides development tools for SSL implementations, which has become the de facto Internet security protocol. The company offers thin versions of SSL, optimized for imbedded systems such as TV set top boxes, and has been a leader in implementing the SET transaction protocol championed by Visa and MasterCard.

BlueMoney provides everything needed for Internet merchants and ISP’s who want secure credit card processing out of the box. The complete e-commerce payment solution includes the TITANIUM(TM) Commerce Server and an Internet Gateway for processing credit card transactions securely. The consumer payment is made with the server-side BlueMoney Wallet, which gives the consumer a convenient way to pay multiple merchants without re-entering personal information and credit card numbers for each transaction.

BlueMoney CEO John Sweet looks forward to the new relationship with SPYRUS citing the synergistic mix of tools for business. “The fusion of SPYRUS’ secure enterprise solutions and BlueMoney’s ‘server-side’ innovations, will create a new generation of products and solutions for business-to-business e-commerce.”

BlueMoney Software Corp. is a privately held venture specializing in software for secure Internet transactions. The company was founded in May 1996 by John Sweet, Chairman and CEO; Jeremy Barrett, Chief Technology Officer; and Ben Kavanaugh, Vice President of Engineering.

Sweet remains with SPYRUS as its Director of E-Commerce and Corporate Marketing. Barrett and Kavanaugh also remain with SPYRUS as senior research engineers.


SPYRUS is a leading provider of network security solutions to protect valued digital property for enterprises and governments. The company was named as the fourth fastest-growing technology company in the latest Deloitte & Touche Silicon Valley Fast 50. The SPYRUS Integrated Enterprise Security (IES) solution framework includes Certification Authority (CA) and Public Key Infrastructure (PKI) systems; high-assurance security tokens, available as smart cards and PCMCIA cards; and Secure Sockets Layer (SSL) channel security, SET, SPEX smart card, and Secure HTTP (S-HTTP) document security development tools. For more information about SPYRUS, visit the Web site at [www.spyrus.com][1].

All trademarks are the property of their respective owners.

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