STORED VALUE: OPEN LOOP MARKETS

Table of Contents

CHAPTER 1: Executive Summary

CHAPTER 2: Overview of the Stored Value Ecosystem

• 2.0 Introduction and Scope of Report
• 2.1 Definitions and a Brief History
• 2.2 The Continuing Evolution of Uses for Stored Value Cards
• 2.3 Four Party Payment System
  • 2.3.1 Authorization
  • 2.3.2 Clearing and Settlement
• 2.4 Interchange Fees
  • 2.4.1 Recent (June 2006) Court Decision on Visa Fee
• 2.5 The Paradigm Shift Enabled By Mobile Payments
  • 2.5.1 Symbiosis Between Stored Value and Mobile Payments
• 2.6 Stored Value -- Background on Fees
• 2.7 A Maturing Market -- The Situation Today
• 2.8 Gift Cards
• 2.9 Emerging Competitor Offerings
  • 2.9.1 Automated Clearing House -- Based Debit Payments
  • 2.9.2 Online Payments Pilot Using ACH
  • 2.9.3 Major Corporation Entry -- ADP, Wal-Mart
• 2.10 Stored Value Distribution Business Model
• 2.11 Loading Networks
• 2.12 The Consumer Value Proposition
• 2.13 The Corporate Value Proposition

CHAPTER 3: Stored Value Applications

• 3.0 Introduction
• 3.1 Open Systems
• 3.2 Closed Systems
• 3.3 Unique Dimension of Stored Value
• 3.4 Network Product
• 3.5 Smart Cards
• 3.6 Consumer Applications for Open System Cards
  • 3.6.1 General Spending (Prepaid Debit Cards)
  • 3.6.2 Travel Cards
  • 3.6.3 Money Transfers
  • 3.6.4 Incentive and Promotion
• 3.7 Evolution of Prepaid from Telephony to Stored Value
• 3.8 m-Wallets
• 3.9 Business Applications for Open System Cards
  • 3.9.1 Payroll Cards
  • 3.9.2 Payroll Cards: A Growth Opportunity for Banks
  • 3.9.3 Controlled Spending Accounts
    • 3.9.3.1 Insurance Payments
    • 3.9.3.2 Flexible Spending and Health Savings Accounts
    • 3.9.3.3 Business Expense Accounts
  • 3.9.4 Loyalty Programs
  • 3.9.5 Vending
• 3.10 Government Applications for Open System Cards
  • 3.10.1 Food Stamps
  • 3.10.2 Court Mandated Payments
  • 3.10.3 Other Disbursements
  • 3.10.4 Transit Systems and Parking
• 3.11 Not-For-Profit Applications
• 3.12 Multi-Function Cards -- Competitive Advantage and Possibilities

CHAPTER 4: Technology and Infrastructure

• 4.0 Introduction
• 4.1 Magnetic Stripe Cards
• 4.2 Origin of Prepaid Point of Sale Activation
• 4.3 Point of Sale Activation Systems (POSA)
  • 4.3.1 Types of POSA
• 4.4 Loading Networks
• 4.5 Credit Card, Debit Card, and Check Transaction Trends
• 4.6 In-House Processing vs Processing Services

• 4.1 PIN-Based Debit Card Usage

CHAPTER 5: Regulatory and Security

• 5.0 Introduction
• 5.1 USA Patriot Act
• 5.2 Escheat Laws
• 5.3 Payroll Laws
• 5.4 Fraud Prevention
• 5.5 Potential for Money Laundering
• 5.6 Consumer Protections

CHAPTER 6: Major Players

• 6.0 Introduction
• 6.1 American Express
  • 6.1.1 American Express Incentive Services (AEIS)
• 6.2 Blackstone
• 6.3 Chase Paymentech Solutions
• 6.4 Checkfree
• 6.5 Chockstone
• 6.6 Coinstar
• 6.7 Discover Financial Services
• 6.8 eCommLink
• 6.9 EFD eFunds
• 6.10 Emida (Debisys, Q Comm)
• 6.11 First Data
• 6.12 Fiserv
• 6.13 FSV Payment Systems
• 6.14 Galileo Processing
• 6.15 Global Pay Solutions Incorporated (GPSI)
• 6.16 Green Dot Network (formerly Next Estate Communications)
• 6.17 i2c Inc.
• 6.18 ikobo
• 6.19 InComm
• 6.20 MasterCard Worldwide
• 6.21 Metavante
• 6.22 MoneyGram International
• 6.22 NetSpend
• 6.24 nFinanSe (formerly Morgan Beaumont)
• 6.25 Ta' Facil Corporation
• 6.26 Tempo Payments
• 6.27 Visa International
• 6.28 Western Union

CHAPTER 7: Market Forecasts

• 7.0 Introduction
• 7.1 Cards -- Current Credit and Debit Markets
• 7.2 Credit Card Projections
• 7.3 Debit Card Projections
  • 7.3.1 Online/Offline
• 7.4 Stored Value Cards
  • 7.4.1 Prepaid Debit Cards
    • 7.4.1.1 Government Programs
    • 7.4.1.2 Payroll Cards
    • 7.4.1.3 Medical Health and Flexible Spending Accounts
    • 7.4.1.4 General Spending Cards -- Open Loop
    • 7.5.1.5 Gift Cards -- Open Loop
    • 7.5.1.6 Gift Cards -- Closed Loop

• 7.1 Credit Cards -- Dollar Volume -- 2006 to 2011
• 7.2 Debit Cards -- Dollar Volume -- 2006 to 2011
• 7.3 Number of Debit Card Transactions -- 2006 to 2011
• 7.4 Average Value of Debit Card Transactions -- 2006 to 2011
• 7.5 Debit Card Transactions -- PIN vs. Signature -- 2006 to 2011
• 7.6 Prepaid Debit Cards -- Dollar Volume --2006 to 2011
• 7.7 Open Loop Prepaid Debit Cards -- Dollar Volume -- 2006 to 2011
• 7.8 Number of Open Loop Debit Cards Issued -- 2006 to 2011
• 7.9 Government Prepaid Debit Cards -- Dollar Volume -- 2006 to 2011
• 7.10 Number of Government Prepaid Debit Cards Issued -- 2006 to 2011
• 7.11 Payroll and Benefit Cards -- Dollar Volume -- 2006 to 2011
• 7.12 Number of Payroll and Benefit Cards Issued -- 2006 to 2011
• 7.13 Medical and FSA Cards -- Dollar Volume -- 2006 to 2011
• 7.14 Number of Medical and FSA Cards Issued -- 2006 to 2011
• 7.15 General Spending Cards -- Dollar Volume -- 2006 to 2011
• 7.16 Number of General Spending Cards -- 2006 to 2011
• 7.17 Open Loop Gift Cards -- Dollar Volume -- 2006 to 2011
• 7.18 Number of Open Loop Gift Cards Issued -- 2006 to 2011
• 7.19 Closed Loop Gift Cards -- Dollar Volume -- 2006 to 2011