Motorola Accelerates Chip Production

Motorola Wednesday announced steps it will take to radically accelerate its smartcard semiconductor process roadmap.

To date, the industry, unlike other sectors in the semiconductor market, has continued to use 6-inch wafer fabs. The dramatic growth forecast in volume and increasing demands for card memory capacity, however, has stimulated the need for change. Motorola has, therefore, made the strategic decision to be the first in this industry to move to 8-inch wafers for its flagship products.

One of Motorola’s most advanced factories, MOS 12 in Phoenix, where the Semiconductor Product Sector recently announced a $1.1 billion expansion, has been selected to meet the challenge.

Chris Belden, consumer and transportation’s director of manufacturing, said “We are delighted to help this emerging industry meet the future explosive demand. We have been preparing for this program in the last year and are excited to help fulfill the vision of products that can personalize everything from your wallet to your phone and even your PC.”

A technology leap to 0.4 micron feature sizes has been made to date and a further shrink plan to 0.27 micron will be implemented in the near future. Motorola has emphasized that the strategy of its decision to proceed with 8-inch wafers was taken with the firm understanding that its aim is to evolve and upgrade the product’s technology over time.

Mike Inglis, division manager for Motorola Smart Information Transfer, explained the company’s rationale. “We believe advanced technology will play a significant role in encouraging our customers to migrate towards increased feature cards — for example, more data in a health card or more ‘phone numbers’ in a GSM card. The technology will also enable the emerging multi-application card markets so that points gained from loyalty schemes can be debited directly to the card user’s bank account.

“The new smaller feature size process offers the capability for increased EEPROM capacity and superior ROM and RAM to expand memory capacity. We will also reduce personalization times and enhance security.”

The first of the devices to be processed will use the industry standard 8-bit M68HC05 microprocessor core. This means that existing tried and tested security assembler code can be used — consequently, providing customers with reassurance about re-use.

Inglis went on to comment “Later in the year we will have even more to discuss with the unveiling of a new secure Advanced core for smartcards. The former answers today’s market demands by providing additional capabilities and introducing the possibility of multiple applications, while still allowing the use of current accredited applications. The latter holds the key to creating true multi-application cards and provides a platform from which smartcards can leap into the next century and support emerging operating systems such as JavaCard and Multos.”

Inglis concluded “We are delighted with the improvements the new process offers, as well as the avenues it will open up. Fifteen months ago Motorola dramatically changed all its smartcard semiconductor plans following a major strategic review. During the last 12 months we have been working to consolidate these plans. Our major customers are all very excited by these products, as are the financial and communications markets.

“The benefits Motorola’s new process will bring reaffirm the company’s flare for innovation and capacity to lead the market by producing cost-effective answers for today and radical new solutions for tomorrow.”

EDITOR’S NOTE The Smart Information Transfer Division is a business within Motorola’s Semiconductor Products Sector, and is one of the world’s leading suppliers of microprocessor chips for smartcards with shipments of more than 300 million units to date.

With 1997 worldwide sales of $8.0 billion, Motorola’s Semiconductor Products Sector develops the essential building blocks to help its customers create new opportunities in the consumer, networking and computing, transportation and wireless communications markets.

In the global marketplace, Motorola also is one of the leading providers of wireless communications, advanced electronic systems, components and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Corporate sales in 1997 were $29.8 billion.

Further information on Motorola’s Semiconductor Products Sector can be found in the SPS Web site —

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Wisconsin GameCash

Game Financial Corporation, a subsidiary of Travelers Express Company, Inc., announced Tuesday it has received notification that it has been issued a gaming-related contractor certificate from the State of Wisconsin Department of Administration, Division of Gaming. The company has operated GameCash(R) service centers in the state of Wisconsin since 1991 and currently provides services to five casinos in the state.

Game Financial Corporation provides gaming establishments, particularly casinos, with comprehensive services that allow their patrons to access cash through the use of credit card cash advance, check cashing and automated teller machine (ATM) services. Through proprietary PC-based systems, the company is an innovative leader in using the credit card cash advance transaction as an opportunity to provide promotional programs and other value-added customer reward and retention services to its host establishments.

In December, 1997, Game Financial Corporation merged with Travelers Express, a leading processor of money orders, electronic bill payments and official checks. Travelers Express is a subsidiary of Viad Corp (NYSEVVI), a Phoenix-based company that includes airline catering, convention services, payment services, and travel and leisure

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GlobeSet Guarantee

GlobeSet, Inc., announced yesterday that it will guarantee full interoperability for its SET products with all SET applications from other vendors receiving a SET Mark. GlobeSet’s guarantee, the first in the industry, underscores the company’s leadership role in SET interoperability and further promotes the advancement of SET interoperability and compliancy among SET vendors.

The SET Mark, managed by SET Secure Electronic Transaction LLC, is licensed to software vendors and merchants who successfully pass SET compliancy tests (see http//www.setco.org/setmark). GlobeSet is the first and only SET vendor to enroll all four products for SET Mark testing. The SET Secure Electronic Transaction specification is the emerging standard for secure payment card transactions over the Internet.

SET interoperability is critical since many SET solutions are comprised of applications from different vendors. A SET solution includes a certificate authority (CA) application to issue and manage digital ID certificates; an electronic wallet for the card holder; a merchant POS application for the merchant server; and a payment gateway application that provides an interface to existing payment card processing systems. These SET applications must work together seamlessly to support electronic commerce over the Internet.

Today’s announcement is the latest in a series of GlobeSet milestones for SET interoperability

—   February, 1998–GlobeSet announces that its SET product suite is accessible on a website () to other SET vendors for interoperability testing. To verify full interoperability, vendors run test messages between their SET applications and GlobeSet’s products.

—   January, 1998–Working with MasterCard, GlobeSet’s merchant POS and gateway applications interoperate with wallet and CA applications from IBM in a SET solution for NationsBank.

—   June, 1997–GlobeSet POS and wallet applications interoperate with SET applications from American Express and GTE to help make possible the first North American SET transaction in the first SET pilot, conducted for the Wal-Mart Online store. In a subsequent phase of the same pilot, the GlobeSet POS application interoperates with wallet, gateway and CA applications from IBM.

“This is an industrywide guarantee, for any and all products with the SET Mark,” said Dennis Jolly, vice president, sales and operations, at GlobeSet. “We believe, as with many others, that interoperability is key to the success of SET, so we’re proud to take a leadership role in this development. We also extend a clear and definite invitation to any SET vendor to visit our interoperability testing website at , so they can test the interoperability of their applications with ours.”

“As an OEM provider, GlobeSet has been focused on the technical issues of SET interoperability from the very beginning,” said Wes Byrne, vice president, development, at GlobeSet. “That’s why we can now guarantee full interoperability with any product receiving the SET Mark in the industry.”

About GlobeSet

GlobeSet is the world’s largest OEM provider of SET Secure Electronic Transaction software solutions for secure, credit card transactions over the Internet. The company provides applications for the electronic wallet, the merchant point of sale, the financial processing gateway, and the certificate authority. GlobeSet is a member of the SET protocol design team, and has been at the forefront of SET development since its inception. General availability for GlobeSet SET products was announced December, 1997. GlobeSet is a strategic SET solution provider for Tandem Computers, a Compaq Company. GlobeSet also provides SET solutions to Hypercom Corporation and Sun Microsystems. Founded in 1994, GlobeSet is a privately held corporation headquartered in Austin, Texas. Additional information on GlobeSet is available on the World Wide Web at .

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FV Hires AmEx Exec

First Virtual Holdings Inc. announced the appointment of David Ehrenthal to vice president of sales and marketing.

Ehrenthal was a marketing director for American Express Travel Related Services in Europe and strategic planning associate in New York. During his tenure at American Express, Ehrenthal was instrumental in developing the Small Business Corporate Card business in Europe. Most recently, Ehrenthal was chief executive officer and co-founder of The Thursley Group, a travel merchandise direct marketing firm subsequently acquired by Genesis Direct Inc. Ehrenthal received an M.A. in International Economics from The Johns Hopkins University and a B.A. in Economics at Bates College.

“David understands the dynamics of direct marketing and catalog selling, and has a proven record of achieving aggressive sales penetration in new markets,” said Keith Kendrick, president of First Virtual Holdings. “He articulates solutions in terms of compelling business cases and has established relationships with early technology adopters that will help drive acceptance of our Interactive Messaging Platform, making round-trip transactional e-mail pervasive in the direct marketing industry.”

Founded in 1994, First Virtual Holdings Inc. (NASDAQFVHI), is a leader in advanced marketing and customer service systems for Internet commerce. The company pioneered secure online payment systems and now focuses on supplying an integrated system for relationship-based transactive messaging using standard e-mail. First Virtual maintains its headquarters in San Diego as well as a data center in Dallas. The company has strategic relationships with First Data Corp., Paymentech Inc., and GE Capital Corp.

First Virtual Holdings Inc. 11975 El Camino Real, Suite 300, San Diego, CA 92130. Tel 619/793-2700; fax 619/793-2950; e-mail info@firstvirtual.com; Web site [www.firstvirtual.com][1].

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

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High Rollers

Lauda Air of Austria introduced casino-style gaming onboard yesterday. Entertainment provider InterGame of Irvine, CA, installed their cashless video gaming products on Lauda’s new Boeing 777 aircraft. The InterGame program will also be installed on two Lauda B-767 and will be fully installed on all of Lauda’s wide-body fleet over the next several years. The InterGame program offers casino-style gaming on a passenger’s major credit card. Wins are credited to the card and expenditures are debited. The maximum expenditure per passenger is $350. Lauda Air is based in Vienna, Austria, and was established by Formula One championship racing driver Niki Lauda.

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97 Industry Pulse

According to data compiled by Bankcard Update/CardData, 1997 went out like a lion for the card industry. The fourth quarter surge was apparently driven by intense platinum card marketing. Accounts and cards soared by more than 7% in the final three months of 1997 while volume and receivables grew about 3.5%.

                                    YEAR  END  STATS
                          (Visa, MasterCard, Discover & Optima)
                EOY 1997           EOY 1996          CHANGE
RECEIVABLES  $431.6 billion    $404.7 billion        +6.7%
VOLUME       $789.1 billion    $698.3 billion        +13.0%
ACCOUNTS      335.4 million     311.1 million         +7.8%
ACTIVES       226.7 million     211.9 million         +7.0%
CARDS         483.1 million     443.2 million         +9.0%
       Source Bankcard Update/CardData (Feb 98 issue)

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FDMS to Resell StoreManager

ClearCommerce Corporation, formerly Outreach Communications, announced an agreement with First Data Merchant Services Corporation to resell ClearCommerce’s StoreManager Pro, Plus and Lite, Web storefront building and management software packages.  In addition, First Data Merchant Services Corporation will provide a channel for distributing the ClearCommerce Merchant Engine and Hosting Engine products. FDMS, a subsidiary of First Data Corporation, is a leading global provider of merchant processing services and will sell and market ClearCommerce Internet transaction management software products through its strong channels of Alliance partners and processing clients.  FDMS’ Alliance partners and other processing clients will be able to offer merchants the ClearCommerce transaction processing software they need to conduct secure commerce via the Internet.

Each FDMS Alliance is jointly owned and managed by FDMS and the bank partner, and is poised to take advantage of scale and technology in order to build, retain and grow their merchant customer base.  This agreement provides a significant channel for ClearCommerce, a leader in Internet e-commerce transaction payment, fraud, processing and reporting technology, to sell its Internet transaction software products to merchants.

FDMS will also license ClearCommerce SET and SSL Gateways to process Internet merchant transactions that use the Secure Electronic Transaction (SET) protocol in addition to other secure transaction methods. ClearCommerce’s chief technology officer, Julie Fergerson, resides on the SET committee and has been an integral member of the SET team helping to bring this Internet security protocol into the marketplace.

“Commercial Internet systems are increasingly polarized between transaction processing software and Internet-based customer interaction, or catalog, systems,” said Chris Stevens, analyst with the Boston-based Aberdeen research firm.  “These systems are sufficiently complex to support specialized subsystems or out-sourced services — credit card payment processing requires both.  There remains a strong demand among new and seasoned Internet merchants for any product that will help reduce the risk of credit card fraud — provided that it does not inconvenience consumers or require extensive and expensive merchant system integration.”

“First Data Merchant Services is an essential partner to have and we’re excited that they have chosen ClearCommerce products,” said Robert J. Lynch, CEO of ClearCommerce.  “With FDMS’ Alliance partners and processing clients offering merchants our Internet transaction products, ClearCommerce is helping to build the bridge between the Internet merchants and the banks to make e-commerce a secure and affordable reality.  The payment systems industry, banks and processors, is in a great position to offer the merchant Internet transaction products as a value-add to the services they offer in the physical world.”

“We chose to offer ClearCommerce to our Alliance partners and processing clients because their leading edge technology addresses the issues important to merchants wanting to conduct business over the Internet,” said Allen A. Weinberg, senior vice president at FDMS.  “Merchants want to embrace the Internet as a new sales channel, and getting the best Internet transaction products to them is critical for the financial success of their e-commerce offerings.”

About ClearCommerce Corporation

ClearCommerce Corporation, based in Austin, Texas, is a leader in Internet e-commerce transaction payment, fraud, processing and reporting technology, and is dedicated to advancing technology and safe commerce practices in the Internet e-commerce marketplace.  Since 1995, ClearCommerce has been helping merchants, banks and processors implement successful Internet site and transaction processing strategies.  ClearCommerce products are entering the third generation of development.  For more information on ClearCommerce and its line of Internet payment processing solutions visit or call 888-280-9999.

About First Data Corporation

First Data Merchant Services, a subsidiary of First Data Corporation (NYSE FDC), is a leading provider of one-source merchant transaction and information processing services, as well as electronic commerce and business-to-business purchasing services over the Internet.

Hackensack, N.J.-based First Data Corporation is a global leader in payment systems, electronic commerce and information management products and services.  First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or stored value card at the point of sale or over the Internet; by check or wire money.  For further information about First Data, visit the company on the Internet at .

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Ultra-Thin Contactless

SCS Corporation and Hitachi Maxell Ltd. announced yesterday that Maxell will begin manufacturing SCS’s patented ‘i2 (Interactive Identification) System’s’ labels in an ultra-thin, contactless card format. The first of their kind in the world, the 0.25-mm-thick RF/ID cards are enabled by drastically reducing the thickness of the ICs and embedding them in a thin, paper-like card that will run through virtually any printer. Users get a complete read/write database in each card, capable of storing 1,024 bits of information, about five times more than found on the mag strip of a credit card. Applications for the cards include airline/mass transit ticketing and phone debit cards. Introduced in June 1997 in the US, the i2 System is the first and only low-cost, passive, read/write RF/ID product on the market.

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PayMate1000

Datacap Systems has introduced a combined cash register and card terminal targeted at small retailers and pay-at-the-counter restaurants. ‘PayMate1000 ECCR’ includes Datacap’s ‘DataTran’ payment interface for interfacing to hundreds of POS systems. ‘PayMate1000’ also uses the same communications package used to support ‘DataTran’ and can also support password use to protect against merchant services hopping.

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Magic Market Online

In an effort to meet the needs of its financial institutions, Magic Line is the first EFT network in the industry to open an online marketing catalogue, Magic Line today launches Magic Market on its Internet Web Site at [ www.magicline.com][1]. The online catalogue offers financial institutions comprehensive marketing and sales materials that help their business grow and educate their consumers. “Magic Market has convenient one-stop shopping 24 hours a day. There’s easy access to a growing list of marketing tools Magic Line financial institutions can utilize to make their programs stronger and more competitive,” said Darlene Crumbaugh, marketing director, Magic Line, Inc.

Pictured in vivid, easy-to-read four-color graphics, marketing items such as Cash Back statement stuffers, decals, ML Pay tent cards, ATM card applications, point-of-sale (POS) products and marketing brochures are available from the case of a desktop computer. The procedure is easy. Financial institutions visit the Web site, click the Magic Market icon, browse through the items, place those they want into their ‘shopping cart,’ follow the ordering prompts for billing/shipping information and get an order confirmation receipt.

As one of the top regional EFT networks linked throughout the United States and globally, Magic Line supports 14.9 million cardholders with access to over 165,000 ATM, POS and remote banking terminals. Magic Line processes over 15 million transactions monthly and serves over 1,010 banks, credit unions and thrifts in Michigan, Illinois, Indiana, Kentucky, Ohio, Missouri and 8 other states. The company offers; cardbase management and authorization services; on-line POS debit services with ML Pay, Maestro and Interlink; off-line POS debit services with MasterMoney and Visa Check Card; remote banking/bill payment services; the Magic Line Mobile ATM; Internet Web Site development; marketing services; and the Magic Line PrePaid Calling Card.

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

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Debit Fraud Tool

WA-based TransAlliance announced Monday its ‘Cardholder Risk Identification Service’ is now available to its subscribing ‘VISA Check Card’ issuers. CRIS is a VISA-developed neural network that identifies global fraud patterns and flags suspect authorizations based on risk thresholds. CRIS was recently recommended by a major credit union insurance underwriter now mandating neural network participation for issuers who wish to expand their plastic card coverage. TransAlliance supports 200 ‘VISA Check’ and ‘MasterMoney’ issuers among its 750 clients.

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New Chase Business Card

To give small businesses a new way to pay for and manage their daily business expenses, The Chase Manhattan Bank will launch the Chase Business Banking Card this month.

The Chase Business Banking Card with the MasterCard logo can be used not only to make ATM transactions, but also to make purchases at over 14 million merchants worldwide — wherever MasterCard is accepted.

Used as an alternative to petty cash or writing checks, purchases made with the new Chase Business Banking Card are automatically deducted from the customer’s checking account. All purchases are itemized on the customer’s checking account statement to make tracking and reconciling expenses easier. To launch the product, Chase customers who use the card will receive a discount to purchase office supplies at Staples stores nationwide.

“Chase is committed to meeting the banking needs of all small business owners, and providing the Chase Business Banking Card is just one more way that we are making it easier for small business owners to focus on what is critically important — running their business,” said Joe Scharfenberger, executive vice president, Commercial and Professional Banking.

Since the personal debit card was introduced in 1997, 1.6 million Chase customers have made over 19 million purchases, greatly exceeding Chase’s expections.

With over $365 billion in assets, The Chase Manhattan Corporation is the largest banking company in the United States. Chase provides integrated solutions that meet its customers’ payment, savings, investment, insurance, credit and financial planning needs. It has relationships with more than 30 million consumers coast to coast. For all those who work hard to achieve or sustain a good life in a world of enormous opportunity and challenge, Chase is the complete financial resource and ally that makes life easier.

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