STORED VALUE: NEW MARKETS, NEW GROWTH

Table of Contents

EXECUTIVE SUMMARY

AN OVERVIEW OF THE STORED VALUE MARKET

• Introduction
• A Brief History
• The Evolution of Payments
  • Four Party Payment System
  • Authorization
  • Clearing and Settlement
• Interchange Fees
• The Coming Paradigm Shift
• The New Paradigm
• Wireless Payments -- New Payment Opportunities
• A Maturing Market -- Payment Trends
• Distribution
• Loading Networks
• The Consumer Value Proposition
• The Corporate Value Proposition

STORED VALUE APPLICATIONS

• Introduction
• Open Systems
• Closed Systems
• Stored Value Applications
• Networked Goods
• Smart Cards
• Consumer Applications
  • Gift Card/Convenience Card
  • General Spending (Prepaid Debit Cards)
  • Travel Cards
  • Money Transfers
  • Incentive and Promotion
• Evolution of Prepaid from Telephony to Stored Value
• mWallets
• Business Applications
  • Payroll Cards
  • An Opportunity for Banks
• Controlled Spending Accounts
  • Insurance Payments
  • Flexible Spending Accounts
  • Business Expense Accounts
• Loyalty Programs
• Vending
• Government Applications
  • Food Stamps
  • Court Mandated Payments
  • Other Disbursements
  • Transit Systems and Parking
• Not-For-Profit Applications
• Multi-Function Cards -- Competitive Advantage

TECHNOLOGY AND INFRASTRUCTURE

• Introduction
• Magnetic Stripe Cards
• Smart Cards
• Prepaid Point of Sale Activation
• Point of Sale Activation Systems (POSA)
  • Types of POSA Systems
    • Customized Systems
    • Generic Systems
  • POSA Vendors
• Loading Networks
• Credit Card, Debit Card, and Check Transaction Trends
• Closed System Cards
• In-House Processing vs Processing Services
• RFID (Radio Frequency Identification)
• SMS Direct Debit

REGULATION IN FLUX

• Federal Regulations
• USA Patriot Act
• State Regulations
• Escheat Laws
• Payroll Regulations

MAJOR PLAYERS

• Overview
• ADP Total Pay Card
• Alliance Data Systems
• American Express
• Corporate Defined Expense Program
• American Express Incentive Services (AEIS)
• Blackstone
• Card Express, Inc.
• CheckFree Corporation
• Chockstone
• Coinstar
• DataStream
• Directo
• DolEx
• Discover Financial Services
• eCommLink
• Emida/Debisys
• Ecount
• EWI Prepaid
• First Data
  • ValueLink
  • Clients
  • ValueLink Applications
  • Western Union
  • Star Network
• FSV Payment Systems
• Givex
• Galileo Processing
• i2c Inc.
• IDT
• InComm
• MasterCard International
• Metavante Corporation
• MoneyGram International
• Moneris/Ernex
• Morgan Beaumont
• MoreMagic
• Next Estate (Green Dot Network)
• NetSpend
• Paymentech
• PreCash
• PRE Holdings
• The Rush Card (issued by UniRush Financial Services)
• Q Comm International, Inc.
• SmartClixx
• Stored Value Marketing
• Stored Value Systems SVS -- Comdata
• Stored Value Technologies
• Safeway
• SVC Financial Services
• Ta'Facil Corporation
• Trycera Financial
• TSYS Prepaid Inc.
• Visa International
• WageWorks
• WildCard Systems

CURRENT MARKET DEMOGRAPHICS AND FIVE YEAR FORECASTS

• Overview
• Methodology
• Assumptions
• Five-Year Market Forecasts by Segment:
• Credit Card Projections 2005 - 2010
  • Dollars, Transactions, Cards
• Debit Card Projections 2005 - 2010
  • Dollars, Transactions, Cards
• Prepaid Debit Cards Sold at Retail 2005 - 2010
  • Dollars, Transactions, Cards
• Payroll Cards 2005 - 2010
  • Dollars, Transactions, Cards
• Flexible Spending Cards 2005 -2010
  • Dollars And Cards
• Controlled Spending Cards 2005 - 2010
  • Dollars, Transactions, Cards
• Government Cards 2005 - 2010
  • Dollars And Cards
• Retail Gift Cards 2005 - 2010
  • Dollars, Transactions, Cards
• Bank Gift Cards 2005 - 2010
  • Dollars, Transactions, Cards
• Convenience/Gift Cards 2005 - 2010
  • Dollars, Transactions, Cards
• Incentive And Promotions 2005 - 2010
  • Dollars And Cards
• Not For Profit
  • Dollars and Cards