For 41 years, the leading publication covering payment systems worldwide. AUGUST 2012 Issue 1,001

U.S. V&MC Credit CardS — Midyear The top 100 U.S. issuers of Visa and MasterCard credit cards ranked by outstanding debt at June 30, 2012 and by total volume for the first six months of this year are shown on pages 8 and 9. MIDDLE EAST/ turn to page 8 AFRICA PAYPAL ON THE DISCOVER NETWORK The establishment of PayPal as an in-store payment option at the Top more than 7 million U.S. merchant locations linked to the Network will begin with a large beta test in the first quarter of Issuers ... turn to page 5 2011 Funding Virtual Currency with Prepaid Cards Plastic Jungle has been offering an online marketplace consumers use to sell and buy private label prepaid cards since 2006. It TOp issuers IN Middle East/Africa makes money on the spread between what it pays to acquire an The Middle East/Africa region’s 50 largest card ... turn to page 5 issuers ranked by purchase volume for goods and services on Visa, MasterCard, , U.S. Merchants Developing app , and Diners Club credit, debit, Merchant Customer Exchange (MCX) is a newly formed limited and prepaid consumer and commercial cards liability corporation linking large merchants intent on bringing a generated $152.02 billion in purchase volume on new mobile wallet to the U.S. market. The wallet will work with 100.6 million cards.

... turn to page 7 These issuers represented 16 countries. The Ficoo t Acquire Adeptra highest spending in the region came from the 3 issuers from Israel with $54.84 billion in purchase Adeptra, operator of a software-as-a-service platform used by volume from 7.4 million cards, equal to $7,414 31 of the 50 largest banks in the world to reach their customers per card. South Africa had 6 issuers in the group using voice, SMS, email, and other communication channels, that collectively accounted for $45.99 billion in ... turn to page 12 purchases at merchants from 53.8 million cards Visa POS Encryption Service for an average of $855 per card. Saudi Arabia had 8 issuers that accounted for $19.68 billion from In the second quarter of 2013, Visa Inc. will offer a point-to- 12.3 million cards or $1,594 per card. Kuwait had point encryption service to protect payment card data in the 6 issuers that accounted for $14.69 billion from U.S. Between now and then the software application will be

... turn to page 7 ... turn to page 10 TRACKIN G StOLEN Data www.nilsonreport.com Hackers who steal card account data sell it in forums on the Internet to other criminals who believe they can create counterfeit • Order back issues cards and/or buy goods online that they can then resell for cash. • View front-page articles for the last 3 years • Find links to upcoming conferences turn to page 6

INSIDE: Fast Facts P 2-4

CHARTS: TOP 100 U.S. VISA/MASTERCARD CREDIT CARD ISSUERS RANKED BY VOLUME, OUTSTANDINGS P 8, 9 MIDDLE EAST/AFRICA TOP issuers — credit, debit, GENERAL PURPOSE/Visa/Mastercard P 10,11

© HSN Consultants Inc. 2012 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is a copyright violation subject to substantial fines. Yearly Subscription for 23 print and electronic issues is $1,295. ISSN 1087-8718 THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA • PHONE (805) 684-8800 • FAX (805) 684-8825 • [email protected] Fast Facts >>>>>>>>> Freemonee network, provider of consumer gift incen- wells FArgo smAll Business DeBit purchase volume tives tied to credit card usage, has received $34 million in Series B in issue #998, page 11, should have been $19,961.8 mil. (up 17%), funding led by Charles Ryan, Chairman of UFG Asset Management. making it the largest issuer of small business debit cards in the U.S. Redpoint Ventures, Sutter Hill Ventures, Opus Capital Ventures, and Brenda Yost is SVP, Marketing and Product Management, Pinnacle Venture also participated. The company has raised a total (415) 222-5556, [email protected], www.wellsfargo.com. of $45 million. Jim Taschetta is CMO at FreeMonee, (650) 353-7269, [email protected], www.freemonee.com. , provider of a payments gateway to over 2,000 online and mobile merchants, will pay $26.2 million to acquire kAiku FinAnce now offers the reloadable KAIKU Visa prepaid , provider of a person-to-person and mobile card. Cardholders will receive $10 when a referral activates and spends at least $100 on the new card, which is issued by First application. Venmo expects to be processing $250 million California Bank. Jon Round is CEO at Kaiku Finance, (805) 413-4320, annually by the end of 2012. Bill Ready is CEO at Braintree, [email protected], www.kaiku.com. (312) 257-2300, [email protected], www.braintreepayments.com. the BAncorp inc., based in the U.S., plans to acquire the MyCardData technology platform, Easybuy website, customer resource 1, a provider of consulting services, will jointly market contracts, and other assets of Transact Network, based in Gibraltar. its services to users of HP NonStop computer systems in the U.S. Terms were not disclosed. The deal is expected to close by the end and Canada with BPC Banking Technologies, provider of SmartVista, of the third quarter of 2012. Transact Network has issued over an integrated suite of software products for transaction processing 1 million prepaid cards since 2006. Bancorp is the 2nd largest and card management. Marc Solomon is SVP No. American Sales at prepaid card issuer in the U.S. Jeremy Kuiper is Managing Director at BPC-USA, [email protected], (770) 625-5050, www.bpcbt.com. Bancorp Payment Solutions, (605) 988-3135, jkuiper@ Gary Moore is Managing Partner at Resource 1, (630) 575-5131, thebancorp.com, www.thebancorp.com. [email protected], www.resource1-tandem.com.

AmericAn express reloadable prepaid cards are now being sentinel BeneFits & FinAnciAl group, an employee sold at 7,200 Walgreens drugstores nationwide. Dan Schulman is benefits consulting and administration firm, has released a mobile Group President, Enterprise Growth at Amex, (212) 640-2000, app that lets flexible spending account debit card customers scan [email protected], www.americanexpress.com. barcodes to determine if health-related products can be purchased using pretax dollars through a reimbursement plan. Sentinel serves more than 3,000 businesses. John Carnevale is CEO, FEATURED CONFERENCE (781) 914-1200, [email protected], 20% www.sentinelgroup.com. truAxis can now provide merchant-funded rewards to 3.5 million SociAl Mobile PAyMenTS AMericAS 2012 Subscribers to consumers using online banking services delivered by Online The Nilson Report Resources. StatementRewards provides offers from local and Three-Day Conference will receive a 20% national merchants based on consumers' purchasing histories or November 6-8, 2012 discount. their location. Carlo Cardilli is SVP for Business Development at Marriott Biscayne Bay (Use code NILSON.) Truaxis, (415) 385-1112, [email protected], www.truaxis.com. Miami, Florida

Topics include: disruption, mobile , MNO strategies, mobile retail/retail mobile, network FEATURED CONFERENCE (r)evolution, social media-morphosis, 5W’s of transactions, 20% wallet warfare. Dedicated tracks include: Near Field ATPS ASiA-PAcific 2012 Subscribers to Communications, alternative transaction networks, The Nilson Report t-commerce, m-couponing, in-app subscriptions, and Two-Day Conference will receive a 20% B/OSS, as well as sessions exploring business strategy and September 18-19, 2012 discount (for new mobile cloud services, among other subjects. Speakers and The Crowne Plaza Mutiara Hotel bookings). panelists will represent both innovators and incumbents Kuala Lumpur, Malaysia from across the entire spectrum of the social, mobile, and Topics include: fraud prevention, alternative forms of payments ecosystem from companies such as: Amdocs, payment, mobile payments, and credit card merchant Visa, PressPay, Digital River, Apriva, Mogreet, Spindle costs. Speakers represent: Air New Zealand, PayPal, Mobile, Mopay, PayTap, i2C, ParkMobile, X.Commerce,

European Airline Fraud Prevention Group, WorldPay, Conference links at www.nilsonreport.com C-Sam, Carol Realini, We Pay, Boom, Fundable, and more.

Conference links at Finnair, Visa, CyberSource, and more. Cost starts from $399 Conference links at www.nilsonreport.com Cost is $895 with an optional hands-on social media www.nilsonreport.com for airlines/travel providers and $799 for industry suppliers. workshop on November 6. Contact Bruce Burke at Gulf Bay Contact Michael Smith at Airline Information for discount Consulting, (727) 612-5775, [email protected]. code, 44 (141) 416-0800, [email protected]. Register at www.socialmobilepayments.com. Register at www.atpsapac.com.

THE NILSON REPORT If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 2 AUGUNUMBERST 2012 1001 AugustISSUE 20121,001 THE NILSON REPORT immediately.- 1 -Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. >>>>>>>>>Fast Facts iD Tech, a provider of POS hardware devices worldwide, will lemon, launched in late 2011, has a user base of 2+ million custom- integrate First Data's TransArmor data encryption and tokenization ers who have downloaded its iOS-based Lemon Free service and technology into its products. Tim Hornton is VP of Merchant premium Lemon Pro service ($9.99 per month), which scans and Product Management at First Data, (402) 222-4380, timothy. stores payment and loyalty cards, receipts, and merchant offers. [email protected], www.firstdata.com. George Jiang is VP of The company now offers Lemon Wallet for Android 4.0 or higher Engineering at ID TECH, (714) 761-6368, georgej@idtechproducts. smartphones. Consumers download the app from Google Play. Matt com, www.idtechproducts.com. Murphy is CMO, (650) 529-4101, [email protected], www.lemon.com. Global PaymenTs, the 7th largest acquirer in the U.S., will purchase Accelerated Payment Technologies, provider of its own Ge caPiTal reTail bank has received a renewal of its contract middleware, card-present gateway, and security payment to provide private label and Discover credit card products to con- technologies, for $413 million in cash. ATP is owned by private sumer and commercial customers of Sam's Club. Alex Aguila is Se- equity firm Great Hill Partners. Jay Rising is President – U.S. at nior Director, at Sam's Club, (479) 277-8662, alex. Global Payments, (770) 829-8292, [email protected], [email protected], www.samsclub.com. Steve Hacala is VP and www.globalpaymentsinc.com. Matthew Vettel is Managing Partner General Manager for Sam's Club Credit Services at GE Capital Retail at Great Hill Partners, (617) 790-9432, mvettel@greathillpartners. Finance, (479) 254-6165, [email protected], www.ge.com. com, www.greathillpartners.com. Telrock offers its SmartCollect digital self-service payments ap- TinyView is a start-up offering a mobile app for product search plication in Canada. The company says that over 26% of customers and shopping. Consumers store all of their checkout information pay within 15 minutes of receiving “payment due” notification, 40% including billing and shipping addresses, e-mail, payment card, within 30 minutes, and 74% within 48 hours. The mobile channel etc. on their phone. They search for a product and get results in the has proven to be more effective than manual call center and paper- app, which automatically fills out the information needed during based collection methods. Clients include Capital One and RBS. Part- checkout. Tinyview receives fees for completed sales. Raj Lalwani is ners include TSYS, FICO, and PayPoint. Jerry Ferlisi is GM at Telrock Founder, (408) 647-1321, [email protected], www.tinyview.com. Americas, (678) 772-3037, [email protected], www.telrock.com.

FiFTh ThirD bank now offers EMV-compliant credit cards to its cashFlows, a principal issuer and acquirer member of Visa and commercial card customers. The bank ranks 16th among all com- MasterCard in the U.K., is also a program manager for prepaid cards. mercial card issuers in the U.S. Katie Lutman is VP, (513) 534-7732, Its first prepaid client is marketing and media group ROK Global, [email protected], www.53.com. which has made an initial order for 50,000 cards. Those cards will carry the Visa brand. Nick Ogden is CEO, 44 (122) 355-0920, tSYS HealtHCare will provide HSA, FSA, and HRA benefit [email protected], www.cashflows.com. card processing and other services to Acclaris, which supports PayVision, the Amsterdam-based payment services provider, will more than 15,000 employer clients and their 1.8 million active distribute in Europe e-commerce technology from U.S.-based Virtual account holders. Trey Jinks is Group Executive at TSYS Piggy that lets parents manage online spending by their children. Healthcare, (706) 649-2417, [email protected], www.tsys.com. Rudolf Bookers is CEO at Payvision, (917) 494-3111, r.booker@ payvision.com, www.payvision.com. Jo Webber is CEO at Virtual U.s. bank's Travel VirtualPay service does away with ghost Piggy, (310) 853-1950, [email protected], www.virtualpiggy.com. accounts, agency invoices, and hotel direct bills for travel expendi- tures by adding single-use account numbers for air, hotel, and car bookings combined with settlement technology from Conferma. management Mary Miklethun is VP, Travel Payment Strategy at U.S. Bank, (612) 973-1411, [email protected], www.usbank.com. > CHANGES Marc Gordon has been appointed EVP and Chief has launched the Integrated naTional reTail FeDeraTion Information Officer at American Express, (212) 640- Mobile Initiative aimed at providing the organization's 9,000+ 2000, [email protected]. Diane Jackson has members with information about mobile retailing including best been appointed Director of Business Development practices, case studies, educational content, thought leadership, and Strategic Marketing at CPI Card Group, (720) and more. A dedicated website will provide original NRF research, 889-1192, [email protected]. Joe Wolf, for- infographics, policy information, and more. Dan Butler is VP, merly at Google, has been appointed VP of Product Merchandising and Retail Operations, (202) 626-8143, butlerd@ at FreeMonee Network, (650) 351-7998, joewolf@ nrf.com, www.nrfmobile.com. freemonee.com. Alok Kapur has been appointed Global Head of Marketing at Experian Marketing Services, (212) american airlines is the first U.S.-based carrier to install 380-2907, [email protected]. Kevin Reager has Acculynk's PaySecure software-based PIN pad at its Web payments been appointed Chief Executive Officer at Global Axcess page. Frank DiNuzzo is Managing Director, Marketing Performance Corp., (904) 395-1142, [email protected]. Dan Cook at American Airlines, (817) 967-2001, [email protected], has been appointed CEO at Crystal Clear Payments, www.aa.com. Sandra Chesnutt is SVP at Acculynk, (687) 894-7013, (425) 205-3090, [email protected]. [email protected], www.acculynk.com.

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 3 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. >>>>>>>>Fast Facts indusind Bank in India now offers the Indus Forex prepaid lUottokUnta, provider of payment card account and merchant MasterCard card designed for foreign travelers. The card is account processing services in Finland, will be acquired by Nets, available in U.S. dollar, euro, pound sterling, Singapore dollar, the largest card and merchant processor based in the Nordic coun- tries. Terms were not disclosed. When the deal is competed, Nets Australian dollar, and Saudi riyal currencies. ElectraCard Services will have annual revenue in the $1.04 billion (€850 million) range. (ECS) provides technology and processing services for Forex card. Mette Kamsvåg is CEO at Nets, 45 (2) 948-2345, mkgri@.eu, Sumant Kathpalia is Head of Consumer Banking at Induslnd www.nets.eu. Heikki Kapanen is CEO at Luottokunta, Bank, 91 (22) 4406-6666, [email protected], 358 (9) 69-641, [email protected], www.luottokunta.fi. www.indusind.com. Ramesh Mengawade is CEO at ElectraCard aSB Bank in Azerbaijan has introduced a new MasterCard pay- Services, 91 (20) 6627-2101, ramesh.mengawade@ ment card called Extra Card that offers the country's first install- electracard.com, www.electracard.com. ment credit product. Cardtek Group's SmartSoft management system is providing account processing. Extra Card lets customers Bank-Verlag has been given a master license to issue / manage their debit and credit card accounts from one platform, JCB co-branded cards in Germany. Private and commercial banks in make payments in installments, collect bonus points from shop- Germany use Bank-Verlag for card account processing services. Titus ping, and spend those points to make payments. Murat Göksenin Gerhardt is General Manager at JCBI (Europe), 49 (697) 1045-6341 Güzel is Group General Manager at Cardtek, 90 (212) 328-3331, [email protected], www.jcbcorporate.com. Christoph Thoet is [email protected], www.cardtek.com. Cenk Bartin is Department Head Market & Customers, Card Division at Deputy Chairman of the Executive Board at ASB Bank, Bank-Verlag, 49 (221) 549-0417, christoph.thoet@ 99 (412) 493-4949, [email protected], www.asb.az. bank-verlag.de, www.bank-verlag.de. aCCoUrt, a consulting service, focuses on development and HyperWallet, a Canada-based prepaid card program provider implementation strategies aimed at improving performance and and account processer, will move into the U.S. with a reloadable minimizing operational risk. Expertise includes regulation and Visa prepaid card for corporate clients and their customers. The card compliance, risk management, and fraud. Visa, MasterCard, Diners will be issued by The Bancorp Bank. Lisa Shields is CEO at Club, Barclaycard, Lloyds, Elavon, and Travelex have been clients. HyperWallet, (604) 482-0096, [email protected], John Berns is Managing Director at Accourt, 44 (207) 839-4930, www.hyperwallet.com. [email protected], www.accourt.com.

conferenceS & SeminArS ATPS LATinoAmericA 2012: September 5-6, 2012. 5Th mobiLe The Hyatt Regency Coral Gables, Miami, Florida. Estimated innovATionS 2012: October 2-3, 2012. The Westin attendance: 200. Cost for the two-day conference starts from Michigan Avenue, Chicago, Illinois. Estimated attendance: 400. Cost $399 for airlines/travel providers and $799 for suppliers. for the two-day conference is $1,295, merchant rate $650. (Early Subscribers to The Nilson Report will receive a 20% discount (for new Bird Registration through September 7, 2012.) Subscribers to The bookings). Contact Michael Smith at Airline Information for Nilson Report will receive a $350 discount. (Use code NILSON02.) Contact discount code, 44 (141) 416-0800, [email protected]. Kathleen Daffner at Strategic Solutions Network, Register at www.atpslatinoamerica.com. (203) 209-0520, [email protected]. Register at www.paymentinnovations.net. PAymenTS SouThern AfricA conference And exhibiTion 2012: September 12-14, 2012. The riSk mAnAgemenT And SecuriTy of cArd Emperors Palace, Kempton Park, Johannesburg, South Africa. TrAnSAcTionS in ciS And eASTern euroPe Estimated attendance: 160. Cost for the three-day conference 2012: October 18-19, 2012. The Grand Admiral Club, Kiev, is $1,140 (R 9,110). Contact Sharlee Vickery at TCI, 27 (11) 803- Ukraine. Estimated attendance: 120-150. Cost for the two-day 0009, [email protected]. Register at www.tci-sa.co.za. conference is $861 (€700). Subscribers to The Nilson Report will receive a 20% discount. Contact Dmytro Sakhno at EMA, 380 (44) 568-5838 or AdvAnced commerce & mobiLe reTAiL 380 (93) 773-0740, [email protected]. Register at www.ema.com.ua. ServiceS SummiT 2012: October 1-3, 2012. The Hyatt Regency, Chicago, Illinois. Estimated attendance: 550. engAgemenT & exPerience exPo 2012: Cost for the three-day conference is $1,695 for industry, $795 October 28-30, 2012. The Hyatt Regency, Dallas, Texas. Estimated for retailers. Complimentary passes available for qualified attendance: 400. Cost for the three-day conference ranges from

Conference links at www.nilsonreport.com Conference retailers. Subscribers to The Nilson Report will receive a 40% discount. $520 to $1,399. Subscribers to The Nilson Report will receive a 20% (Use code RAMP-NILS-D.) Contact Melissa Morrissey at Retail Ramp, discount. (Use code NILSON20.) Contact Lindsay Wagner at Loyalty 360, (561) 705-6075, [email protected]. Register at - 3 - (513) 360-8680 x113, [email protected]. Register at www.retailramp.com. www.engagementexpo.com.

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report AUGUST 2012 ISSUE 1,001 THE NILSON REPORT 4 immediately.- 3 - Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Funding Virtual Currency with Prepaid Cards (from page 1)... outstanding balance cards sold over the counter at 465-2000, bruce@plasticjungle. on an account and 225,000 point-of-sale locations net, www.plasticjungle.com. the price it can get in the U.S., Australia, Prior issues: 994, 992, 987, 972, for that balance. Japan, Canada, 948, 866 Plastic Jungle is Mexico, Puerto Zeevex integrates with digital integrated with all Rico, Brazil, Korea, content providers directly and the U.K. That to supply them with token- integration now supports based and point-based virtual a new business for Plastic currency payment systems. It Jungle — exchanging prepaid card balances major processors that provide from 130 retailers for prepaid cards for retailers. virtual currency that can More than 400 private label be used in over 100 online prepaid cards can be exchanged games and for other at Plastic Jungle, digital content. connects to Plastic Jungle by which is the largest The exchange way of InComm. Consumers marketplace of its ... exchanges is completely can also buy Zeevex currency kind measured by prepaid BAL- automated and is at InComm point-of-sale outlets the amount of Web ANCES from available at the in the U.S. Brian Parlotto is traffic. online platform 130 retailers. Senior VP, Consumer Products operated by Zeevex, Earlier this year it and International at InComm which was acquired formed a partnership in Atlanta, Georgia, (678) 528- by InComm in 2010. Bruce with InComm, marketer and 7683, [email protected], Bower is CEO at Plastic Jungle distributor of private label www.incomm.com. in San Mateo, California, (650) and general purpose prepaid

PAYPAL ON THE DISCOVER NETWORK (from page 1)... 2013. Nationwide rollout will start in the second There will be multiple phases in PayPal’s Discover quarter. Network product rollout. Neither mobile phones nor merchants in Pulse’s PIN-based EFT network Discover sends network rules and regulation are part of the initial phase. Joby Orlowsky is VP updates twice a year to the 1,500 large merchants Strategic Initiatives at Discover in with which it has direct connections as Riverwoods, Illinois, (224) 405-3256, well as to the 135 acquirers it contracts [email protected], with to accept Discover credit cards. It BOTH already www.discovernetwork.com. will send PayPal’s rules and regulations, work ON brand requirements, and pricing when BILLMELATER PayPal’s remote digital wallet was it next communicates these changes & MONEY a payment option only at Web and in October. The acquirers will handle MESSENGER. mobile merchants until earlier this communication about PayPal to their year when Home Depot became the merchants, who can opt out if they do first merchant to accept PayPal inside not want to accept PayPal. its store locations. Another 15 merchants including Office Depot, Barnes & Noble, and Abercrombie & Discover and PayPal already work together. Fitch have subsequently signed up to do the same. Most of PayPal’s BillMeLater credit transactions All to PayPal by way of direct connections. are cleared over the Discover Network. And Discover’s Money Messenger person-to-person In those stores PayPal customers can use a PIN money transfer service uses PayPal’s Adaptive pad to key in their mobile phone number and a Payments APIs. ... turn to page 6

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 5 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. PAYPAL ON THE DISCOVER NETWORK (from page 5)... 4-digit PIN to gain to 20% of all U.S. merchants their remote wallet. PayPal deploy POS terminals with will issue a plastic card to encrypted PIN pads. accountholders who don’t have Not all details about PayPal Amalgamated Bank. However, card specifications have been PayPal is different. It is not finalized. It will not be printed issuing Discover Cards per se. with the Discover logo but will It is only using its INN numbers have a 16-digit Discover INN to facilitate processing. PayPal number encoded on the mag- is effectively adopting the stripe. Because Discover’s 6011 a mobile number or don’t want Discover Network as its own range of card numbers are to use one. network, similar to how a already stored in POS terminals, virtual mobile network operator A mobile phone number option acceptance of the PayPal uses the physical assets of for transactions on the Discover card will not be difficult for a regulated wireless carrier. Network will not be part of merchants. Don Kingsborough is VP of phase one. The more than 50 There are third-party Discover Retail at PayPal in San Jose, million active U.S. customers Card issuers in the U.S. California, (408) 376-7400, of PayPal — more people than including GE, First National dkingsborough@.com those that have a Discover Card of Omaha, Capital One www.paypal.com. — will be issued a magnetic- (purchased from HSBC), and stripe card, mainly because only

T racking Stolen Credit Card Data (from page 1)... There are at least 150 criminal forums on the logins and passwords to online bank accounts. Internet. CloudeyeZ expects that monitoring criminal A company called CloudeyeZ is monitoring seven forums will reveal supply and demand factors of these marketplaces in a beta test aimed at that influence prices paid for stolen card data, determining the daily market price for such as the recent 500,000 accounts stolen credit card data, and it plans to boots used t stolen in Australia and law enforcement publish findings on its website. infiltrate actions. New thefts should lower prices by pushing more products onto the Law enforcement agencies have could also market. Law enforcement actions that successfully infiltrated forums for retrieve a shut down forums should raise prices by years. Usually they pose as criminals client’s data. lowering supply. CloudeyeZ’s trend tool and buy their way in. CloudeyeZ will provide a reasonable gauge as to infiltrates the forums the success of efforts to fight this type of using bots, which are cybercrime. intelligent programs that can collect the data from these underground If CloudeyeZ’s bot-based retrieval service works, it sites. Those bots could also be used could be useful in fighting criminal forums, which to retrieve stolen data on behalf of are moving from English-speaking marketplaces a client who authorizes CloudeyeZ into Russian, Ukrainian, Chinese, Vietnamese, and to do so. This would provide an Romanian language sites, making it more difficult alternative to the waiting period for successful law enforcement actions. Dan inherent in successful law enforcement action. Clements, who sold his CardCops.com consumer protection service to Affinion in 2007, is Founder In addition to card account data, CloudeyeZ’s at CloudeyeZ in Sherman Oaks, California, bots can find intellectual property, proprietary (818) 455-5969, [email protected], computer codes, personal information, and other www.cloudeyez.com. stolen data a company might want back, such as

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 6 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Visa POS Encryption Service (from page 1)... introduced to and POS card data. Even EMV transactions need encryption terminal manufacturers as well as processors and because card account data, expiration dates, and acquirers, who will need to integrate it into their ICVV numbers are passed in the clear. products and systems. Deploying encryption technology from The Visa application uses Triple ... uses Triple Visa or from other companies including DES encryption and DUKPT key DES encryp- First Data, VeriFone, and Heartland, management, the same technology tion and reduces a merchant’s risk exposure from currently used to encrypt PINs for DUKPT key card data, which reduces their costs ATM and POS transactions. This management. related to PCI DSS compliance. should make it easier to adopt. In Visa’s end-to-end encryption service addition to standard encryption will be added to existing prevention and the Visa software also provides response fraud fighting services including risk a 16-digit encrypted value for merchants who scoring of transactions that enter VisaNet, alerts need to preserve existing data formats to track to cardholders about suspicious transactions, and transactions or individual buyers. adoption of EMV chip technology that generates Over time Visa will introduce its encryption dynamic data authentication for every transaction. service to other world regions as part of its Eduardo Perez is Head of Global ongoing multilayered security strategy aimed at Risk at Visa Inc. in Foster City, California, (650) eliminating, protecting, and devaluing (to thieves) 432-3988, [email protected], www.visa.com.

U.S. Merchants Developing Mobile payment app (from page 1)... all major mobile phone application will be available label application promoted by operating systems, and within the MCX wallet or Starbucks, which is on pace will be open to general to top 50 purpose and private million label card products transactions as well as to this year. alternative Other digital payment embedded within a merchant’s wallets developed to offer in- products that proprietary mobile commerce store payments tied to general access deposit accounts. app. purpose cards include products No name has yet from PayPal, Google, ISIS, and Currently 15 companies that been selected for the Visa. collectively generate $1 trillion consumer acceptance in sales annually have invested In addition to the merchants mark. A committee in MCX, and other merchants whose corporate logos are has been formed to have already committed. shown here, other investors search for a Chief Smaller merchants not able to in MCX include Alon, CVS, Executive Officer. invest can operate as Darden, , MCX will develop the acceptance locations. Michael’s, and Together they payment application Sunoco. Dodd So far only one as well as the delivery account for Roberts is Manager digital wallet in platform with the $1 trillion in at Merchant the U.S. market aim of appealing to annual sales. Customer Exchange is generating any the widest possible in Irving, Texas, significant payment number of merchants (972) 868-9120, volume inside retail and consumers. [email protected], locations, and that is the 2D www.mcx.com. The payment barcode-based, prepaid, private

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 7 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Top U.S. Visa/MasterCard Credit Card Issuers Volume Midyear 2012

Rank Total Vol. Purchase Rank Total Vol. Purchase . ‘12 ‘11 Issuer (mil.) Chg. Vol. (mil.) Chg. . ‘12 ‘11 Issuer (mil.) Chg. Vol. (mil.) Chg. 1 1 JPMorgan Chase $215,920.0 13% $205,840.0 13% 51 52 SchoolsFirst FCU $348.4 7% $307.9 6% 2 2 Bank of America $125,783.6 0% $118,974.1 2% 52 50 BMW Bank $346.1 –4% $341.6 –4% 3 3 Citigroup $94,831.3 4% $94,156.0 4% 53 56 State Employ. CU (N.C.) $320.8 7% $289.7 8% 4 4 Capital One $68,774.1 23% $65,313.1 24% 54 58 First Tech FCU $314.2 5% $306.7 6% 5 5 U.S. Bank $45,008.1 7% $42,898.2 7% 55 55 PSECU $305.9 2% $251.6 3% 6 6 Wells Fargo $38,937.9 15% $35,817.9 16% 56 53 Card Assets $298.7 –3% $297.9 –3% 7 8 Barclays $18,623.9 22% $17,571.7 21% 57 62 Randolph-Brooks FCU $290.3 15% $261.0 11% 8 9 USAA $15,818.5 9% $14,832.5 8% 58 57 San Diego County CU $280.2 –6% $173.2 1% 9 7 HSBC $10,376.7 –34% $10,200.0 –33% 59 61 The Golden 1 CU $272.5 8% $239.4 5% 10 10 PNC $10,293.5 29% $9,511.9 24% 60 60 1st Financial $266.7 –3% $261.2 –3% 11 11 Cabela’s WFB $7,446.3 15% $7,422.3 15% 61 59 Suncoast Schools FCU $263.5 –11% $238.6 –11% 12 15 Comdata $5,888.3 47% $5,888.3 47% 62 64 Redstone FCU $245.6 4% $241.6 4% 13 14 GE Capital $5,688.9 36% $5,664.5 36% 63 65 Delta Community CU $244.7 9% $226.2 9% 14 12 First Nat’l Omaha $5,397.1 18% $5,010.6 18% 64 63 Simmons First $238.5 –2% $234.8 –1% 15 13 Navy FCU $4,970.5 15% $4,405.4 18% 65 66 Intrust Bank $231.3 11% $228.4 11% 16 18 Wright Express $4,913.7 47% $4,913.7 47% 66 68 VyStar CU $229.1 10% $216.8 8% 17 16 BMO Harris $4,455.3 17% $4,430.6 16% 67 43 RBC Bank $227.0 –70% $224.4 –57% 18 19 Fifth Third $3,996.7 22% $3,749.5 24% 68 69 Baxter CU $225.0 13% $202.0 8% 19 17 Target $3,536.0 –5% $3,522.5 –5% 69 67 FirstBank Data Corp. $220.7 6% $219.8 6% 20 20 SunTrust $3,259.6 10% $3,162.7 9% 70 71 Mich. State Univ. FCU $209.1 8% $175.2 9% 21 21 BB&T $3,235.3 11% $3,099.6 10% 71 72 Whitney National $194.7 12% $191.8 12% 22 23 Commerce Bank $3,155.1 18% $3,049.2 20% 72 73 United Nations FCU $185.8 7% $155.4 7% 23 22 Nordstrom $2,999.4 8% $2,985.4 8% 73 82 T-Chek Systems $181.6 24% $181.6 24% 24 24 ICBA Bancard $2,428.6 6% $2,396.8 6% 74 74 BancorpSouth $179.4 5% $172.5 6% 25 32 Regions Bank $2,239.5 187% $2,169.3 178% 75 76 FirstMerit Bank $178.8 7% $157.4 8% 26 26 RBS Citizens $2,107.1 16% $1,972.6 15% 76 — Sovereign Bank $175.9 new $155.8 new 27 25 State Farm $1,951.3 1% $1,873.4 2% 77 75 First Interstate $173.9 2% $172.5 2% 28 27 Pentagon FCU $1,526.4 10% $1,370.4 8% 78 88 City National Bank (Calif.) $167.8 27% $167.7 27% 29 34 UMB Bank $1,018.0 35% $1,010.0 35% 79 79 Wash. State Employ. CU $166.8 7% $165.8 8% 30 35 Credit One $929.7 25% $904.1 25% 80 78 Bank-Fund Staff FCU $165.2 5% $160.2 5% 31 29 First Hawaiian $908.5 4% $902.2 4% 81 77 Tower FCU $164.2 3% $162.2 3% 32 38 TD Bank $885.1 38% $837.9 36% 82 84 Mountain America CU $162.2 15% $160.4 15% 33 28 TIB $878.6 –5% $871.6 –5% 83 80 Patelco CU $154.8 2% $142.4 4% 34 41 M&T Bank $847.8 40% $766.3 30% 84 83 Alaska USA FCU $151.1 7% $144.9 7% 35 31 BBVA Compass $828.8 4% $577.2 13% 85 81 Affinity FCU $149.4 1% $130.0 1% 36 36 Comerica Bank $813.7 19% $812.0 19% 86 85 Mission FCU $142.1 1% $140.2 1% 37 45 FleetCor $766.4 48% $766.4 48% 87 70 Associated Bank $136.8 –30% $20.4 –9% 38 37 BECU $747.5 10% $734.8 12% 88 87 The Bank of N.Y. Mellon $134.6 1% $134.3 1% 39 40 Zions Bancorporation $723.0 19% $711.4 19% 89 86 Farm Bureau Bank $133.2 0% $132.0 0% 40 33 First Premier $691.7 –10% $678.1 –10% 90 90 CEFCU $127.2 7% $126.0 8% 41 39 First Citizens $650.4 3% $639.9 4% 91 89 Wescom CU $121.3 –3% $115.4 –3% 42 42 Bank of the West $636.7 15% $631.3 15% 92 95 Virginia CU $118.0 15% $95.1 11% 43 47 Merrick Bank $597.2 26% $560.9 27% 93 93 Security Service FCU $113.2 8% $98.7 9% 44 44 Synovus/Columbus B&T $562.1 6% $561.0 6% 94 94 Members 1st CU $112.0 9% $109.5 9% 45 48 America First CU $510.6 10% $412.7 7% 95 92 University FCU $110.3 3% $108.4 3% 46 46 First Horizon $495.2 4% $490.4 4% 96 96 GTE Financial $101.0 5% $95.2 7% 47 49 Ameriprise Bank $473.5 16% $453.6 14% 97 97 AA Credit Union $97.3 4% $95.6 12% 48 – First Niagara $388.5 new $366.7 new 98 98 Amalgamated Bank $89.1 –3% $87.5 –3% 49 51 Digital FCU $371.4 3% $368.0 3% 99 100 Police and Fire FCU $88.8 8% $86.0 9% 50 54 Arvest Bank $360.1 18% $355.3 18% 100 103 Grow Financial FCU $85.3 10% $77.7 10% First 6 months of 2012 vs. first 6 months of 2011. Includes both consumer and commercial cards © 2012 The Nilson Report

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 8 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Top U.S. Visa/MasterCard Credit Card Issuers Outstandings Midyear 2012 Rank Outstand- Cards Rank Outstand- Cards ‘12 ‘11 Issuer ings (mil.) Chg. (000) Chg. ‘12 ‘11 Issuer ings (mil.) Chg. (000) Chg. 1 1 JPMorgan Chase $123,580.0 –1% 87,900 –3% 51 49 Synovus/Columbus B&T $258.9 –4% 220 –8% 2 2 Bank of America $100,804.9 –8% 52,908 –5% 52 54 Zions Bancorporation $237.2 12% 281 8% 3 3 Citigroup $85,985.7 –2% 54,148 2% 53 59 Randolph-Brooks FCU $232.2 22% 100 11% 4 4 Capital One $62,723.0 32% 72,500 99% 54 53 State Employ. CU (N.C.) $231.9 9% 285 4% 5 5 Wells Fargo $31,305.3 –1% 18,046 11% 55 55 Virginia CU $229.5 11% 85 9% 6 6 U.S. Bank $23,236.5 4% 16,763 12% 56 51 Security Service FCU $224.7 0% 65 1% 7 8 USAA $13,092.5 4% 5,255 7% 57 62 Ameriprise Bank $222.8 22% 115 17% 8 9 Barclays $12,598.9 30% 12,076 15% 58 52 First Tech FCU $220.8 0% 165 3% 9 11 Navy FCU $6,076.5 15% 2,277 3% 59 56 Mich. State Univ. FCU $203.6 5% 105 7% 10 10 Target $4,923.2 –10% 7,172 –24% 60 60 Bank of the West $202.7 7% 216 19% 11 12 PNC $4,732.8 11% 3,731 10% 61 68 Comdata $195.6 24% 3,791 15% 12 14 GE Capital $4,208.0 25% 18,099 20% 62 57 First Horizon $186.3 –3% 152 –5% 13 13 First Nat’l Omaha $4,113.2 13% 5,017 10% 63 — Sovereign Bank $183.7 new 157 new 14 15 Cabela’s WFB $3,072.1 13% 2,865 7% 64 64 Redstone FCU $179.7 7% 96 5% 15 16 Fifth Third $2,668.5 11% 2,411 7% 65 63 Simmons First $173.4 –3% 175 –7% 16 17 BB&T $2,006.4 7% 1,769 22% 66 66 Baxter CU $169.6 4% 86 13% 17 18 RBS Citizens $1,630.3 3% 1,975 3% 67 68 Wash. State Empl. CU $165.6 5% 86 0% 18 20 State Farm $1,479.3 1% 929 –8% 68 70 Arvest Bank $162.9 7% 136 8% 19 19 Pentagon FCU $1,477.2 –2% 516 5% 69 76 Mountain America CU $162.4 16% 149 4% 20 21 Nordstrom $1,326.1 –3% 1,309 8% 70 78 Wright Express $160.7 18% 4,785 47% 21 82 Regions Bank $1,237.9 898% 1,069 187% 71 65 Patelco CU $158.5 –3% 67 2% 22 24 Credit One $1,207.4 18% 2,231 15% 72 72 Delta Community CU $155.2 4% 67 8% 23 27 Merrick Bank $1,110.5 20% 1,065 35% 73 71 ESL FCU $145.2 –5% 52 3% 24 25 SunTrust $1,083.9 10% 935 8% 74 73 Affinity FCU $144.5 –2% 83 0% 25 23 ICBA Bancard $1,058.5 –1% 1,571 –2% 75 74 FirstMerit Bank $144.3 0% 179 4% 26 28 BMO Harris $1,040.5 37% 654 63% 76 79 Farm Bureau Bank $141.8 6% 118 –4% 27 7 HSBC $988.8 –95% 721 –98% 77 75 GTE Financial $141.4 –1% 42 1% 28 22 Associated Bank $946.0 –12% 80 –10% 78 67 Arizona FCU $141.1 –11% 45 –7% 29 26 Commerce Bank $906.3 –5% 1,021 3% 79 77 Wescom CU $136.7 –2% 61 5% 30 30 First Premier $722.0 0% 2,555 –11% 80 87 United Nations FCU $129.3 10% 29 6% 31 31 BBVA Compass $658.4 8% 483 4% 81 81 Municipal CU $128.8 3% 42 6% 32 29 1st Financial $653.3 –10% 350 –8% 82 82 Intrust Bank $125.4 0% 107 4% 33 32 BECU $649.4 7% 297 17% 83 89 AA Credit Union $123.1 8% 57 26% 34 33 Suncoast Schools FCU $570.3 –5% 268 2% 84 80 Educ. Employ. CU (Calif.) $122.6 –5% 44 –2% 35 37 TD Bank $503.8 20% 364 28% 85 84 Mission FCU $122.3 0% 58 10% 36 36 PSECU $486.7 8% 195 3% 86 96 Logix FCU $121.4 15% 38 10% 37 44 American Savings $484.8 40% 42 18% 87 85 Alaska USA FCU $120.5 2% 81 –2% 38 35 The Golden 1 CU $475.7 2% 137 4% 88 97 GECU $116.0 13% 54 5% 39 34 San Diego County CU $458.4 –7% 79 3% 89 104 Members 1st FCU $114.2 15% 81 18% 40 39 SchoolsFirst FCU $416.5 5% 223 4% 90 93 Police and Fire FCU $113.8 7% 61 9% 41 38 America First CU $415.0 3% 218 4% 91 86 Tinker FCU $112.6 –4% 95 –2% 42 40 UMB Bank $388.0 –1% 406 2% 92 91 SECU Md. $108.8 0% 68 –3% 43 – First Niagara Bank $337.9 new 450 new 93 103 Alliant CU $107.9 8% 56 5% 44 45 First Hawaiian $331.8 –3% 229 –1% 94 95 Tower FCU $107.4 2% 60 3% 45 43 BMW Bank $327.2 –6% 192 –4% 95 90 Hudson Valley FCU $104.9 –5% 45 –28% 46 41 TIB $324.1 –12% 390 –11% 96 99 Veridian $104.5 3% 82 3% 47 58 M&T Bank $322.9 69% 287 53% 97 88 Card Assets $103.9 –11% 139 –4% 48 46 First Citizens $309.5 –1% 230 –4% 98 94 Bellco CU $103.0 –2% 50 –17% 49 48 DCU (Digital FCU) $305.5 5% 193 7% 99 90 Grow Financial FCU $101.5 5% 49 6% 50 47 VyStar CU $299.4 2% 133 18% 100 98 BancorpSouth $100.8 –1% 90 6% Change is vs. June 30, 2011. Consumer and commercial cards combined. © 2012 The Nilson Report

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 9 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Top issuers IN MIDDLE EAST/AFRICA (from page 1)... 2.9 million cards — an average $10.18 billion from 5.9 million Israel had the highest combined of $5,020 per card. The United cards or $1,726 per card. credit, debit, and prepaid card Arab Emirates (U.A.E.) had purchase volume with $50.37 When measuring results for only 7 issuers that accounted for billion from 6.8 million cards, Visa and MasterCard branded followed by South Africa with cards, purchase $36.56 billion from 41.0 million volume reached cards, Saudi Arabia with $15.76 Credit Card Issuers in Mideast/Africa $133.07 billion billion from 7.7 million cards, from 81.7 million Purchase Purch. Kuwait with $13.89 billion from 2011 Volume Cards Vol. cards. Issuers from Rank Issuer, Country (mil. $U.S.) (000) per Card ... turn to page 12 1 Israel $26,795.2 3,405 $7,869 2 Leumi Card Israel $14,189.3 2,013 $7,049 Debit Card Issuers in Mideast/Africa 3 Israel Credit Cards Israel $13,830.0 1,795 $7,705 4 Absa Bank South Africa $7,165.7 2,671 $2,683 Purchase Purch. 2011 Volume Cards Vol. 5 First National Bank South Africa $5,942.2 2,384 $2,492 Rank Issuer, Country (mil. $U.S.) (000) per Card 6 Nedbank Limited South Africa $5,428.3 1,472 $3,688 1 Al Rajhi Bank Saudi Arabia $9,036.4 4,200 $2,152 (1) 7 Standard Bank South Africa $5,270.3 2,090 $2,521 2 Standard Bank South Africa $7,342.8 16,616 $442 8 Emirates NBD U.A.E. $2,344.1 443 $5,286 3 Absa Bank South Africa $5,681.4 11,297 $503 9 Abu Dhabi Commercial Bank U.A.E. $1,663.8 466 $3,567 4 National Bank of Kuwait Kuwait $5,182.5 683 $7,586 10 SABB Saudi Arabia $1,441.6 428 $3,365 5 Nedbank Limited South Africa $4,711.8 6,232 $756 11 Nat’l Commercial Bank Saudi Arabia $1,164.0 429 $2,716 6 First National Bank South Africa $4,213.2 7,292 $578 12 Mashreq Bank U.A.E. and Qatar $1,160.8 492 $2,361 7 Kuwait Finance House Kuwait $3,343.8 739 $4,522 13 Samba Financial Saudi Arabia $1,074.3 432 $2,490 8 Gulf Bank Kuwait $1,858.7 234 $7,948 14 National Bank of Kuwait Kuwait $952.7 199 $4,792 9 Commercial Bank of Kuwait Kuwait $1,483.0 538 $2,756 15 Bank Audi Lebanon $877.6 139 $6,334 10 Riyad Bank Saudi Arabia $1,378.3 1,761 $783 16 Al Rajhi Bank Saudi Arabia $742.0 409 $1,813 11 Emirates NBD U.A.E. $1,330.0 1,182 $1,125 17 Qatar National Bank Qatar $653.0 68 $9,653 12 SABB Saudi Arabia $1,300.3 724 $1,796 18 Standard Chartered U.A.E. $582.5 271 $2,150 13 Nat’l Comm’l Bank Saudi Arabia $1,228.0 1,061 $1,158 19 National Bank of Abu Dhabi U.A.E. $545.4 111 $4,896 14 Arab National Bank Saudi Arabia $1,161.5 1,000 $1,162 20 Kuwait Finance House Kuwait $477.1 216 $2,209 15 National Bank of Abu Dhabi U.A.E. $722.7 732 $987 21 Riyad Bank Saudi Arabia $475.9 434 $1,096 16 Ahli United Bank Kuwait $711.8 124 $5,740 22 National Bank of Egypt Egypt $321.6 1,096 $294 17 Dubai Islamic Bank U.A.E. $662.4 942 $703 23 CrediMax Bahrain $288.4 63 $4,566 18 Qatar National Bank Qatar $623.1 202 $3,079 24 Arab National Bank Saudi Arabia $274.3 226 $1,212 19 Abu Dhabi Commercial Bank U.A.E. $435.3 479 $910 25 Dubai Islamic Bank U.A.E. $267.5 109 $2,456 20 Doha Bank Qatar $392.7 209 $1,883 26 Doha Bank Qatar $253.1 40 $6,345 21 Boubyan Bank Kuwait $324.0 74 $4,389 27 Commercial Int’l Bank Egypt $252.4 196 $1,291 22 Mauritius Comm’l Bank Mauritius $288.1 570 $505 28 Bank Alfalah Pakistan $232.0 306 $758 23 Mashreq Bank U.A.E. and Qatar $261.0 589 $443 (2) 29 Arab Bank Jordan $220.8 101 $2,192 24 Bank Audi Lebanon $222.0 316 $704 30 Dubai First United Arab Emirates* $207.9 83 $2,493 25 Attijariwafa Bank Morocco $219.5 965 $227 31 Gulf Bank Kuwait $194.4 59 $3,310 26 Banque Centrale Populaire Morocco $173.9 775 $225 32 Mauritius Comm’l Bank Mauritius $133.6 92 $1,451 27 Arab Bank Jordan (1) $157.4 909 $173 33 Saudi Hollandi Bank Saudi Arabia $132.5 60 $2,210 28 BMCE Bank Morocco $150.4 892 $169 34 African Bank South Africa $114.9 805 $143 29 State Bank of Mauritius Mauritius $139.5 252 $553 35 Credit Agricole Egypt $107.7 103 $1,046 30 Postbank South Africa $121.0 2,902 $42 36 Credit Libanais Lebanon $99.8 46 $2,153 31 Saudi Hollandi Bank Saudi Arabia $116.2 37 $3,124 37 Commercial Bank of Kuwait Kuwait $88.5 30 $2,954 32 Bank Dhofar Oman $114.0 191 $597 38 Standard Chartered Bahrain $65.1 40 $1,642 33 Bank AlJazira Bahrain $102.7 49 $2,117 Includes Visa, MasterCard, American Express, and Diners Club consumer 34 Commercial Int’l Bank Egypt $98.4 540 $182 and commercial credit and charge cards. (1) Doesn’t include its Diners Club Includes Visa, , MasterCard, and Maestro consumer and figures. (2) Includes Bahrain, Egypt, Jordan, Lebanon, Palestine, Qatar, commercial debit and prepaid cards. (1) Includes Bahrain, Egypt, Jordan, United Arab Emirates, United Kingdom, & Yemen. *Estimate. Lebanon, Palestine, Qatar, United Arab Emirates, United Kingdom, and © 2012 The Nilson Report Yemen. © 2012 The Nilson Report

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 10 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Top General Purpose/Visa/MasterCard Card Issuers Middle East/Africa GENERAL PURPOSE CARD RESULTS VISA AND MASTERCARD RESULTS 2011 ‘11 Purch. Vol. ‘11 Total Vol. ‘11 Cards ‘11 Purch. Vol. ‘11 Total Vol. ‘11 Cards Issuer, Country Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) IsraCard Israel 1 $26,795.2 5 $26,795.2 7 3,405 1 $23,508.2 4 $23,508.2 7 3,004 Leumi Card Israel 2 $14,205.9 10 $15,251.0 11 2,038 2 $14,205.9 7 $15,251.0 10 2,038 Israel Credit Cards Israel 3 $13,841.2 11 $14,106.2 12 1,954 3 $12,658.6 11 $12,903.2 11 1,733 Absa Bank South Africa 4 $12,847.1 3 $30,725.0 2 13,968 5 $10,070.0 3 $23,903.5 3 9,368 Standard Bank South Africa 5 $12,613.1 2 $36,807.5 1 18,706 7 $9,315.8 6 $18,693.5 1 11,886 First National Bank South Africa 6 $10,155.4 4 $28,608.8 3 9,677 4 $10,155.4 2 $28,608.8 2 9,677 Nedbank Limited South Africa 7 $10,140.2 6 $26,442.7 4 7,704 8 $6,785.7 5 $21,032.4 4 6,346 Al Rajhi Bank Saudi Arabia 8 $9,778.3 1 $62,468.8 6 4,609 6 $9,778.3 1 $62,468.8 6 4,609 National Bank of Kuwait Kuwait 9 $6,135.2 9 $15,324.8 30 882 9 $6,051.2 8 $14,990.6 28 792 Kuwait Finance House Kuwait 10 $3,820.9 15 $12,563.3 25 955 10 $3,820.9 12 $12,563.3 21 955 Emirates NBD U.A.E. 11 $3,674.1 12 $13,905.4 13 1,626 11 $3,668.6 9 $13,899.6 12 1,618 SABB Saudi Arabia 12 $2,741.9 16 $10,753.5 18 1,152 15 $1,441.6 30 $1,552.0 40 428 Nat’l Commercial Bank Saudi Arabia 13 $2,392.0 7 $16,458.1 15 1,489 20 $1,164.0 34 $1,261.9 39 429 Abu Dhabi Commercial Bank U.A.E. 14 $2,099.1 19 $6,276.3 27 945 12 $2,099.1 15 $6,276.3 23 945 Gulf Bank Kuwait 15 $2,053.1 20 $4,936.1 43 293 13 $2,053.1 16 $4,936.1 42 293 Riyad Bank Saudi Arabia 16 $1,854.2 8 $15,476.5 9 2,195 26 $482.7 47 $570.9 37 439 Commercial Bank of Kuwait Kuwait 17 $1,571.5 21 $4,833.9 38 568 14 $1,571.5 17 $4,833.9 33 568 Arab National Bank Saudi Arabia 18 $1,435.8 13 $13,830.0 16 1,226 16 $1,435.8 10 $13,830.0 13 1,226 Mashreq Bank U.A.E. and Qatar 19 $1,421.8 23 $4,500.1 19 1,081 17 $1,421.8 19 $4,500.1 15 1,081 Qatar National Bank Qatar 20 $1,276.0 24 $3,742.0 45 270 18 $1,276.0 20 $3,742.0 44 270 National Bank of Abu Dhabi U.A.E. 21 $1,268.1 18 $7,319.6 31 843 19 $1,268.1 14 $7,319.6 26 843 Bank Audi Lebanon 22 $1,099.6 27 $2,869.5 41 454 21 $1,077.0 23 $2,846.5 36 448 Samba Financial Saudi Arabia 23 $1,092.2 14 $13,451.5 14 1,518 22 $1,074.3 33 $1,338.4 38 432 Dubai Islamic Bank U.A.E. 24 $929.9 17 $9,366.9 20 1,051 23 $929.9 13 $9,366.9 16 1,051 Ahli United Bank Kuwait 25 $760.2 32 $2,078.2 52 149 56 $48.4 63 $57.4 68 25 Doha Bank Qatar 26 $645.9 29 $2,496.4 47 248 24 $645.9 25 $2,496.4 46 248 Standard Chartered U.A.E. 27 $582.5 45 $691.5 44 271 25 $582.5 42 $691.5 43 271 Mauritius Commercial Bank Mauritius 28 $421.7 35 $1,548.8 37 662 43 $121.1 55 $151.6 55 89 National Bank of Egypt Egypt 29 $419.7 22 $4,728.8 5 5,679 27 $409.3 18 $4,718.4 5 5,672 Arab Bank Jordan (1) 30 $378.1 28 $2,690.6 22 1,010 28 $378.1 24 $2,690.6 18 1,010 Commercial International Bank Egypt 31 $350.8 33 $1,942.6 35 735 29 $350.8 28 $1,942.6 31 735 Boubyan Bank Kuwait 32 $347.0 41 $946.0 59 79 30 $347.0 38 $946.0 58 79 CrediMax Bahrain 33 $288.4 53 $315.7 61 63 31 $288.4 51 $315.7 60 63 Bank Alfalah Pakistan 34 $248.8 39 $1,127.7 21 1,042 32 $248.8 36 $1,127.7 17 1,042 Saudi Hollandi Saudi Arabia 35 $248.6 44 $765.6 55 97 33 $248.6 41 $765.6 53 97 Attijariwafa Bank Morocco 36 $219.6 31 $2,268.6 23 982 34 $219.6 27 $2,268.6 19 982 Dubai First United Arab Emirates* 37 $207.9 54 $216.7 58 83 35 $207.9 52 $216.7 57 83 State Bank of Mauritius Mauritius 38 $179.5 43 $805.6 42 308 36 $179.5 40 $805.6 41 308 Banque Centrale Populaire Morocco 39 $173.9 25 $3,343.4 33 775 37 $173.9 21 $3,343.4 29 775 BMCE Bank Morocco 40 $156.5 26 $2,975.6 29 896 38 $156.5 22 $2,975.6 25 896 Credit Libanais Lebanon 41 $154.1 42 $831.5 50 166 39 $154.1 39 $831.5 49 166 Bank AlJazira Saudi Arabia 42 $133.6 49 $580.3 62 61 40 $133.6 46 $580.3 61 61 Bank Dhofar Oman 43 $130.2 38 $1,145.1 49 203 41 $130.2 35 $1,145.1 48 203 Credit Agricole Egypt 44 $129.7 50 $501.0 46 260 42 $129.7 48 $501.0 45 260 Postbank South Africa 45 $121.0 30 $2,345.4 8 2,902 44 $121.0 26 $2,345.4 8 2,902 African Bank South Africa 46 $114.9 46 $631.6 32 805 45 $114.9 43 $631.6 27 805 Millenium BIM Mozambique 47 $104.5 57 $109.5 26 946 46 $104.5 56 $109.5 22 946 Co-Operative Bank Kenya 48 $90.3 34 $1,623.2 10 2,092 47 $90.3 29 $1,623.2 9 2,092 National Societe Generale Egypt 49 $89.7 40 $1,114.8 28 929 48 $89.7 37 $1,114.8 24 929 Housing Bank for Trade & Fin. Jordan 50 $81.4 37 $1,374.6 39 520 49 $81.4 32 $1,374.6 34 520 General purpose results include Visa, MasterCard, Maestro, American Express, and Diners Club consumer and commercial credit, debit, and prepaid cards. Visa and MasterCard results exclude Maestro and cards that carry only the or Cirrus brands. (1) Includes Bahrain, Egypt, Jordan, Lebanon, Palestine, Qatar, UAE, U.K., and Yemen. *Estimate. © 2012 The Nilson Report

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 11 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber. Top issuers IN MIDDLE EAST/AFRICA (from page 10)... 2.7 million cards, and the U.A.E. with $10.18 million cards. billion from 5.9 million cards. For general purpose debit and prepaid cards When measuring general purpose only, the 34 largest issuers in the region credit cards only, the 38 largest The Top 50 accounted for purchase volume of accounted for purchase volume of Included $55.29 billion from 65.3 million general $96.03 billion from 23.8 million cards. Issuers from purpose debit and prepaid cards. Debit Issuers from Israel accounted for and prepaid issuers from South Africa $54.81 billion from 7.2 million cards, 16 Countries. generated $22.07 billion from 44.3 followed by South Africa with $23.92 million cards. Issuers in Saudi Arabia billion from 9.4 million cards, the had $14.32 billion from 8.8 million cards, U.A.E. with $6.77 billion from 2.0 million cards, those in Kuwait had $12.90 billion from 2.4 million Saudi Arabia with $5.30 billion from 2.4 million cards, and those in the U.A.E. had $3.41 billion cards, and Kuwait with $1.71 billion from 0.5 from 3.9 million cards.

Fic co to A quire Adeptra (from page 1)... will be acquired by FICO for exist among the 9,000 financial the travel and utilities industries. $115 million in cash. The institutions worldwide that use Doug Clare is VP, Fraud transaction is expected to close FICO’s Falcon Fraud Manager Solutions at FICO in San Diego, in September. software. Adeptra owns California, (612) 758-5450, intellectual property related to [email protected], Several FICO decision contact automation and risk www.fico.com. management applications management Adeptra’s top that is highly competitors are supportive of fraud ...WILL DRIVE Varolii and SoundBite fighting. MORE SALES Communications. After FICO also sees OF BOTH the acquisition, Tony opportunities to COMPANIES’ McGivern, CEO at sell Adeptra’s PRODUCTS. Adeptra, will remain have operated on Adeptra’s technology to with FICO from offices platform since 2002, and FICO the clients who in Norwalk, Connecticut, has been an Adeptra reseller use its software for collections (203) 956-2631, tmcgivern@ since 2007. Currently they and recoveries, account adeptra.com, www.adeptra.com. have 12 joint customers. FICO management, and customer Prior issues: 996, 984, 980, 974, believes it can drive more sales origination. 972, 957, 956, 949, 945, 934, 900, of both companies’ products 897, 896, 843, 822, 776, 758 Beyond the financial services and services as the owner of industry FICO sees prospects in Adeptra. Initial opportunities

David Robertson, Publisher AUGUST 30, 2012

If you are being forwarded a copy of this report, you are not an authorized user and must delete the report 12 AUGUST 2012 ISSUE 1,001 THE NILSON REPORT immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.