New Meridien Report

Campaign management solutions that support financial institution competency in customer management and sophisticated sales and marketing initiatives are rapidly evolving from database marketing to behavioral-based interactive marketing and beyond to a new discipline, called “enterprise customer management,” according to the most recent report from Meridien Research.  In this report, “Campaign Management Solutions,” Meridien examines advances in campaign management solutions, as well as how financial institutions will use these solutions to optimize the profit potential in delivery channels, such as ATMs, homebanking and call centers.

“As scalar complexity increases with the number of contacts to be managed, this is one business arena where size is not necessarily and advantage,” notes Bill Bradway, Meridien’s research director and author of the report. “We foresee that only a few of the largest institutions will successfully implement enterprise-level customer acquisition and retention initiatives by the turn of the century.  However, mid-size institutions enjoy a more manageable scale of data and the resources necessary to develop the best examples of enterprise customer management over the next few years.”

This Meridien Research report provides an overview of the campaign management marketplace, concentrating on 500 large, global financial institutions that represent commerical banks, insurance companies, securities and investment firms, and non-bank financial companies.  Global spending on campaign management solutions is examined and reported by industry segment.  Meridien Research expects global campaign management spending to increase from $505 million in 1998 to $708 million in 2003.

Campaign management solutions are comprised of six distinct solutions elements, which are used to differentiate the various types of campaign mangement applications from each other.  According to Meridien Research, campaign management applications will be addressed by five types of vendor solutions — stand alone solutions, marketing and decision automation vendors, database marketing vendors, call center and enterprise customer management vendors, customer data warehouse vendors.

Case studies of financial institutions that have implemented campaign management solutions in this report include Lloyds TSB General Insurance (UK), Trans Financial Inc. (USA) and Standard Life Group (UK).

Meridien Research of Newton, MA provides analytical research services to users and providers of financial technology.  Meridien Research currently targets three technology sements of strategic importance to financial services firms:  Electronic Delivery, Risk Management and Customer Management Systems.  Each practice delivers quarterly reports and monthly briefs, detailing new issues and challenges in these areas, while keeping the realities of legacy core systems in mind.  For more information about Meridiean  Research, call Kristen Keane at 1-617-796-2800 or visit the Meridien Research Web site at [][1].



Driver License Replacement

American Express and the Florida Motor Vehicle Department signed agreements Tuesday to provide driver license replacement services to Florida drivers through American Express’ ‘Credit Card Registry’ program. AmEx said credit cards and driver licenses are usually lost or stolen at the same time, so the ability to make one phone call to request replacements provides convenience and security. American Express has similar arrangements in Virginia and New York. Florida uses a digitized driver license system with the capability to retrieve an image and produce a replacement license within one business day.


Smart Rollout

SunTrust Bank and VISA are now distributing more than 5,000 reloadable ‘VISA Cash’ smart cards to residents and employees of Celebration, Florida. Celebration is a Disney-planned community of 4,700 acres and currently has about 1,500 residents and 25 retail outlets. Five designs of disposable ‘SunTrust VISA Cash Cards’ are expected to be available to visitors who tour the community. Celebration’s self-contained environment and nearly 100% merchant participation offers a unique opportunity for the successful demonstration of a smart card system in the US. This will be VISA’s 13th smart card pilot in the U.S. among 71 worldwide. Giesecke & Devrient America is producing the cards for SunTrust. G&D America is also supplying its ‘SCDM-4’ card dispensing machine, which accepts cash for convenient use by consumers for purchasing the new smart cash cards.


Skipjack Merchant Services

CyberCash and PaymentNet will face new competition with the introduction yesterday of ‘Skipjack Merchant Services’.  SMS, developed by Evolv Adaptive Technology supports secure transactions for Visa, MasterCard, American Express, Discover Card, Diners Club, JCB, debit cards and checks. It features real-time authorization and settlement, email receipts for customers and fulfillment entities, web page responses for authorizations and denials and an easy-to-use shopping cart. SMS will charge a monthly service fee of $19.95 to cover the first 500 transactions each month.  In addition, for merchants who sign up for the service before December 31, Skipjack Merchant Services will waive the initial setup fee of $79. Evolv says CyberCash duns the merchant on a per-transaction basis in addition to a confusing and costly combination of monthly, annual and setup fees. The company also said PaymentNet (formerly Segue Systems) charges a setup fee of $250 and a monthly fee of $79 with transactions over 500 costing the merchant .30 each.


New DataCard VP

DataCard Corporation announced Monday that George A. Lee has accepted the position of vice president of industry marketing for its financial company. Lee will be responsible for researching and evaluating new financial market opportunities, such as electronic commerce and smart card applications. He will also explore potential alliances with other technology leaders.

“We’re very fortunate to have George join us,” said Francois Conchon, president of DataCard’s financial company. “His understanding of consumer needs, his strategic abilities and the industry relationships he has built over the years will be great assets for us as we expand the breadth and depth of our financial solutions.”

DataCard is a clear world leader in card issuance solutions. Financial institutions of all sizes use DataCard systems to issue credit, debit, ATM and stored value cards. The company also offers a complete line of smart card issuance solutions. This emerging technology, along with electronic commerce solutions, represent tremendous opportunities for DataCard, according to Conchon.

“DataCard is a technology-rich organization,” Conchon said. “We have the know-how to create powerful smart card and electronic commerce solutions. I believe George can help us shape strategies to leverage those technologies and bring them to market in a way that delights both our customers and consumers around the world.”

Before joining DataCard, Lee served as vice president of business development and product marketing at MasterCard International. During his five years at MasterCard, Lee was responsible for sales and marketing of the company’s payment services in the U.S. He also served as general manager of MasterCard’s global payment systems operations in Europe, Africa and the Middle East.

Lee also spent five years as vice president of sales and marketing for Rocky Mountain Bankcard, where he led business development, product development, product marketing and product support for a variety of programs.

DataCard Corporation, a privately held company based in Minneapolis, Minn., provides customers around the world with fully integrated solutions for a variety of financial, identification and healthcare applications. In addition to turnkey solutions, the company offers complete lines of digital photo ID systems and printers, card personalization systems and transaction systems. ([][1])



SPYRUS Acquires Value Checker

SPYRUS announced Monday that it has acquired the Value Checker Plus smart card reader from OKI. This high-assurance PIN pad reader will be used as part of the SPYRUS high-assurance public key-based security solution for valued digital property and rights management. When deploying intranets for mission critical information or when establishing extranets to garner operational efficiencies with its trading partners, an enterprise faces two critical issues: 1) identifying who has access to what type of digital information, and 2) cost effective deployment. When used in conjunction with the ROSETTA smart card, the Value Checker Plus smart card reader is a key component for delivering cost-effective, public key-based security access solutions for multiple applications and services.

“The deployment of Intranets, the extension of Extranets to business partners, and the inevitability of Internet-based business commerce has heightened the need for development of a trusted digital environment for valued enterprise digital property,” said Sue Pontius, Founder and CEO of SPYRUS. “Acquiring the Value Checker Plus smart card reader is a key component in enabling the enterprise to manage access to business critical information and in enabling electronic commerce by providing non-repudiation.”

The Value Checker Plus is synergistic with the SPYRUS high-assurance model by allowing secure PIN entry at the reader level, which eliminates the possibility of compromising the PIN when, for example, using the PC keyboard. The portability of the combined reader and card allows the traveling road warrior or remote worker access to secure digital information across the enterprise. A PC smart card interface cable is also available to enable the reader for use with desktop network access applications, including strong mutual authentication and challenge response.

“The Value Checker Plus provides SPYRUS with a smart card reader that can be used to bolster its electronic commerce strategy and provide corporate and commercial users with a full suite of high-assurance, portable enterprise access security solutions,” said Yoichi Kanamura, President of OKI Advanced Products. “This smart card reader benefits SPYRUS customers by combining ease-of-use with a portable and cost-effective alternative to current electronic commerce applications.”

“A prototype version of the Value Checker Plus has been developed and tested for VISA Cash client applications, and future support for this specific reader is anticipated”, said Shay Roberts, Product Manager for VISA International’s Stored Value Products. “This specific type of reader provides the necessary security, functionality, and flexibility required for Visa Cash on the Internet purchase transactions on the cardholder’s PC.”

With immediate availability, the SPYRUS Value Checker Plus provides a cost effective, portable, and secure smart card reader solution. Please visit our web site, or call 408-432-8180.


SPYRUS is a privately held high technology company that applies high-assurance public key-based security solutions for the Enterprise to manage its valued digital property. The end-to-end security solutions protect corporate IS, WWW/Internet and Intranet applications, electronic commerce, and government applications. SPYRUS’ products enable encryption, digital signature, access control, and metering solutions through a combination of Algorithm Agile software and hardware technologies. The Company’s portable tokens, including its LYNKS Privacy Card and ROSETTA Smart Card, provide a personal, portable electronic identity that enables people to conduct secure electronic transactions anyplace, anywhere, anytime. Its software forms the core of Secure Electronic Transaction (SET) payment card security, Secure Sockets Layer (SSL) channel security, and Secure HTTP (S-HTTP) document security. SPYRUS is headquartered in San Jose, California and has branch offices in Maryland, Massachusetts, New Jersey, Virginia, and London, England. In 1997 SPYRUS acquired Terisa Systems Inc., which operates as a wholly-owned subsidiary in Los Altos, California. For more information about SPYRUS, visit the Web site at [][1].



AmEx Frequent Limo Program

American Express Travel Related Services Company, Inc., and 1-800-LIMO-CENTER have announced a new benefit for American Express Consumer Charge Card members: the opportunity to earn free limousine rides with 1-800-LIMO-CENTER, effective immediately.

1-800-LIMO-CENTER provides a convenient transportation reservation service which Cardmembers can use in most cities throughout the United States and Canada and major European cities, 24-hours a day, seven days a week.  By calling 1-800-LIMO-CENTER within 48 hours of their trip, Cardmembers can avoid long taxi lines and shuttle buses by arranging a private chauffeured car to take them to where they need to go.

Eligible Cardmembers will have the opportunity to earn one ride credit for every $50 spent with 1-800-LIMO-CENTER, paid for with the American Express Card.  When accumulating ride credits, Gold Card and Platinum Card members will get one free limousine ride for 20 ride credits; Personal Cardmembers will get one free ride for 25 ride credits.

The new benefit complements the existing array of benefits and services currently offered to Cardmembers and supports the company’s long term commitment to identifying and implementing new services for its customers.

American Express Travel Related Services Company, Inc., is a wholly owned subsidiary of the American Express Company — a diversified worldwide travel and financial services company founded in 1850.  It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.

1-800-LIMO-CENTER is a company that provides chauffeured ground transportation reservation services in major cities throughout the United States and Canada, 24-hours a day, seven days a week.  The company is based in Rochelle Park, New Jersey.

* American Express Cardmembers must hold a consumer Charge Card account in good standing to be eligible for the ride credits program.


TSA Completes Intranet Acquisition

Transaction Systems Architects, Inc. announced Monday that it has completed the previously announced acquisition of IntraNet, Inc., a privately held corporation headquartered in Newton, Massachusetts, pursuant to a plan of share exchange. Under the terms of the exchange, Transaction Systems will acquire all of the issued and outstanding shares of IntraNet in exchange for 1.22 million shares of Transaction Systems’ Class A Common Stock.

IntraNet ([www.][1]) is a leading provider of electronic payment systems for the worldwide banking community. The company’s Money Transfer System (MTS) and CACHE application software products are used by nearly half of the 50 largest U.S. banks and by financial institutions in Europe and Australia. IntraNet products provide the critical payments processing infrastructure that keeps money moving across town or around the globe. By leveraging its strategic relationships, core technology and expertise, IntraNet continues to develop products based on open technologies that enable banks and their customers to capitalize on the convergence of traditional banking services and global electronic commerce.

Transaction Systems Architects’ software facilitates electronic payments by providing consumers and companies access to their money. Its products are used to process transactions involving wire transfers, credit cards, debit cards, smart cards, home banking services, checks, as well as automated clearing and settlement. Transaction Systems’ solutions are used on more than 3,000 product systems in 69 countries on six continents.

Visit TSA on the World Wide Web at [][2].



EDS to Use LinkUp for CUs

Standard Register announced Monday that its LinkUp intelligent check printing software will be included in EDS’ information technology services for credit unions nationwide.

In the agreement, EDS’ credit union services unit will include LinkUp among its service offerings. LinkUp works by printing on-demand, negotiable documents from blank, secure paper stock using existing data from customers’ computer systems.

![][1]     “EDS’ credit union clients will benefit from our relationship with Standard Register because its LinkUp product can provide them with a more convenient, secure method for printing checks and other negotiable documents,” said Scott Butler, national service delivery manager of EDS’ Credit Union Industry Group.

“LinkUp is ideally suited for credit unions, filling a significant void that currently exists in the area of secure magnetic ink character recognition, or MICR laser check printing,” said Rita Zimmerman, Standard Register manager, business partner program. “We are delighted to be working with EDS, an industry leader in the financial services sector.”

EDS began providing data processing services to credit unions in 1974. The company’s credit union services unit currently provides more than 2,400 credit unions with innovative financial services technologies, such as Web-based and PC-based home banking, debit cards, and multipurpose automated teller machines.

EDS, the official information technology services provider for World Cup 1998, is a leader in the global information services industry. The company’s more than 110,000 employees specialize in applying a range of ideas and technologies to help business and government customers improve their economics, products, services and relationships. EDS, which serves customers in 45 countries, reported revenues of $15.2 billion in 1997. The company’s stock is traded on the New York Stock Exchange and the London Stock Exchange. Visit EDS via the Internet at .

Standard Register is a recognized leader in delivering document management systems, products and services to healthcare, financial and general business markets. Headquartered in Dayton, Ohio, the company employs more than 9,000 people and operates a nationwide network of printing facilities and sales offices. Standard Register reported 1997 revenues of $965.7 million. For more information, call 800-755-6405 or visit [][2].

[1]: /graphic/eds/eds.gif


EBT/EFT Education

NationsBank and three consumer advocacy and education organizations: Consumer Action, National Consumer Law Center, and National Urban League, announced Monday they have formed the ‘EBT/EFT Education Consortium’.  The group released the first issue of its publication yesterday, the “EBT/EFT Update,” an eight-page tabloid-style newspaper. The group said 50,000 copies will be distributed through 4,000 consumer advocacy and community organizations nationally.  The “EBT/EFT Update” contains the latest news from Treasury, reports about current EBT programs, information about direct deposit and low-cost bank account options, and other useful news for state and federal benefit recipients and their advocates. The “EBT/EFT Update” is available online at .


CVS Buys 20,000 Terminals

VeriFone announced Monday that CVS Corporation, the nation’s largest drugstore chain, has chosen VeriFone technology to offer expanded payment options to customers.

The Everest point of sale payment terminal enables CVS for the first time to accept debit payments, in addition to currently accepted credit payments, in all 4,000 CVS stores in 24 states and the District of Columbia.

The CVS chain-wide rollout of nearly 20,000 payment terminals represents one of the largest Everest rollouts in the U.S. and reasserts VeriFone’s position as the dominant provider of electronic payment systems hardware to the chain drug industry. With the CVS rollout, VeriFone will have installed over 45,000 terminals in the chain drug market, contributing to its dominant market share in the overall multi-lane industry.

![][1]     “We are proud to have the largest drug store chain using a VeriFone solution,” said Greg Rhine, VP and general manager, VeriFone North America. “CVS extends VeriFone’s leadership position in the major multi-lane industry, joining retailers including Kroger, American Stores, Rite Aid and Ahold.”

The installation of Everest point of sale payment terminals at CVS locations is scheduled for completion in February 1999, allowing CVS to leap into an excellent position for meeting future EBT regulations, and potentially migrating to smart cards.

“At CVS, our concern for the customer drives every decision we make, including our decisions about new technologies,” said Vin Minchillo, vice president of Retail Systems for CVS. “We chose the payment technology of VeriFone’s Everest customer-activated terminal because it allows CVS to offer a greater selection of payment options to our customers. And, because the Everest interfaces with our existing technology, we are able to implement the solution quickly.”

About CVS

CVS is the nation’s largest drugstore chain in terms of store count with more than 4,000 stores in 24 states and the District of Columbia. Its team of 90,000 employees working in stores, distribution centers, and its headquarters have grown CVS into a market leader ranked second in sales, with sales expected to exceed $15 billion in 1998 and first in store count. In addition, CVS is expected to fill 12 percent of all U.S. prescriptions in 1998. With plans to open 320 new or relocated stores per year, CVS hopes to continue its aggressive growth strategy that was exemplified with the acquisition of Revco in 1997, the largest acquisition in chain drug history, and Arbor Drug in 1998.

About VeriFone

VeriFone, Inc., a wholly owned subsidiary 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 six million electronic payment systems, which are used in over 100 countries.

[1]: /graphic/cvs/cvs.gif


Clean Card

A Florida company announced its plans Monday to revolutionize the coin laundry business with smart cards. LAUNDROMAX demonstrated the new smart ‘Clean Card’ yesterday to Florida businessmen. Currently, LAUNDROMAX has 3 stores open in South Florida and the company plans to open more than 20 stores in Dade, Broward and Monroe counties in the next 18 months, and more than 400 in the next five years nationwide. LAUNDROMAX investors and board members include Keith Cobb, former CEO of Alamo Rent A Car, Mike Maroone, President of Republic Industries Automotive Division and Gerry Geddis, former COO and President of Blockbuster Entertainment.