ProPay Named a Finalist at the Stoel Rives Awards

April 20, 2011 09:00 ET

ProPay's Social M-Payment Application, Zumogo, Named a Finalist at the 2011 Stoel Rives Innovation Awards

LEHI, UT--(Marketwire - Apr 20, 2011) - ProPay (www.propay.com), an industry leader in Merchant Services, End-to-End Payment Security, credit card processing, and electronic payment services, is pleased to announce ProPay's Zumogo has been named a finalist at the Stoel Rives Utah Innovation Awards™. The annual Utah Innovation Awards are presented by Stoel Rives LLP and the Utah Technology Council. The program recognizes significant innovations and the Utah companies that created them. Winners of the Innovation Awards will be announced at a luncheon on May 3, 2011.

Zumogo (pronounced "Zoo-MOE-Go") is a social mobile payment platform that enables a new connection between merchants and consumers. Using bi-directional communication and geo-location, Zumogo enables commerce through social technology.

"Zumogo marries the best of secure mobile payment platforms and social media, enabling communication and payment between the consumer and the merchant," stated Chris Mark, Executive Vice President of Emerging Markets at ProPay. "The ability to communicate with a merchant before you are in the store is priceless. Zumogo allows this social functionality to occur and ProPay is excited to lead the market."

Zumogo is a new mobile payment technology allowing Smartphones to be used, not only as a payment device, but also as a social technology allowing merchants and consumers to communicate with each other in real-time. Additionally, the social m-payment platform allows the consumer to find merchants, contact them for information, and make payment all from the same device. Zumogo eliminates sensitive information from the transaction process, meaning no payment data is passed through the merchant's system or stored on the consumer's Smartphone.

"ProPay is proud to have been named a finalist in the Utah Innovation Awards," said Gary Goodrich, ProPay's Chief Executive Officer. "Our company takes pride in offering products and services that help companies keep pace with technological trends in the market place. Our selection as a finalist for the Awards is a valuable recognition of our efforts and we are excited to bring Zumogo to the market."

About ProPaySince 1997, ProPay (www.propay.com) has provided simple, secure, and affordable payment solutions for organizations ranging from the small, home-based entrepreneur to multi-billion-dollar enterprises. ProPay is a leading provider of complete End-to-End Payment Security solutions that reduce, and may even eliminate, an organization's risk of having sensitive payment data compromised. ProPay is the recipient of the prestigious 2010 ETA ISO of the Year award. ProPay is a privately held company, headquartered in Lehi, Utah. For information, visit www.propay.com. For more information about Zumogo, please visit www.zumogo.com

comScore Releases the "The 2010 Online Credit Card Report"

Cash Back among Most Important Rewards for Cardholders

comScore Releases New Online Credit Card Report

RESTON, Va., April 20, 2011 /PRNewswire/ -- comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released its annual Online Credit Card Report, which provides a comprehensive look at the U.S. online credit card industry over the past year. The report focuses on shifts in the industry related to improving consumer perceptions of the economic environment, card features most likely to influence card shopping decisions, and the growing importance of online servicing for issuers. The report draws its analysis from comScore's research panel of 1 million U.S. consumers and a comScore survey of nearly 2,000 U.S. Internet users conducted in December 2010. Among its findings, the study reveals a greater percentage of card shopping activity among consumers who reported having a more positive view of the economy.

(Logo: http://photos.prnewswire.com/prnh/20080115/COMSCORELOGO)

Competitive Features and Rewards Important as Consumers Shop for New Cards

During the past twelve months, 20 percent of all cardholders reported shopping for a new card. Among consumers who reported feeling more confident about the economy, this stood at a higher 34 percent.

"As we see consumer economic sentiment improve, we're also seeing a corresponding increase in retail and e-commerce spending along with increased card shopping, especially among those in the subprime sector," said Sarah Lenart, comScore vice president of financial services. "With shopping and card applications expected to continue to increase in 2011, consumers are likely to place even greater emphasis on competitive card features and offerings as well as enticing rewards programs."

Low interest rates, the lack of annual fees, and rewards programs were regarded as the most important features by most cardholders, with low interest rates deemed most important by 40 percent of consumers. Rewards programs rank third in importance to cardholders but represent an opportunity to incentivize consumers to increase their overall use of credit as opposed to using a debit card or cash.

Most Important Credit Card Features to Cardholders (% Ranked Highest on a Scale from 1 to 8) December 2010 Total U.S.  Source: comScore Credit Card Survey
Credit Card Feature	% Ranking This Feature Highest
Low APR/Interest Rate	40%
No Annual Fee	28%
Rewards or Points	13%
Card Accepted at Most Merchants	8%
High Credit Limit	5%
Reputation of the Issuer	3%
Customer Service	2%
Low APR for Balance Transfers	1%

The most important credit card reward offerings were cash back (57 percent of respondents), merchant rewards (13 percent), flexible points (13 percent) and airline miles (10 percent).

Most Important Credit Card Reward Types to Cardholders (% Ranked Highest on a Scale from 1 to 6) December 2010 Total U.S.  Source: comScore Credit Card Survey
Credit Card Reward Type	% Ranking This Type Highest
Cash Back	57%
Merchant Rewards	13%
Flexible Points	13%
Airlines	10%
Gas	5%
Charitable Donations	3%

Issuer Websites Gain Importance as a Channel for Servicing Cardholders

As card issuers continue to develop websites and mobile applications as a way to engage with cardholders, a noticeable shift can be seen in consumers' use of these channels as opposed to more traditional channels. In 2010, 76 percent of cardholders reported accessing their accounts online, up 5-percentage points from a year ago.  One in five cardholders who also own a mobile phone report having used their mobile device to manage their accounts over the past 12 months.

While mobile applications and sites are not used to the same extent as other channels, they are gaining popularity. Among cardholders with mobile phones, 16 percent reported accessing their issuer's site through a mobile browser and 13 percent reported accessing their accounts through mobile applications.

Channel Usage for Completing Transactions Among Cardholders Who Have a Mobile Phone December 2010 Total U.S.  Source: comScore Credit Card Survey and Mobile Financial Services Advisor Survey
Channel	% Using This Method	% Using This as Primary Method
Call Company on Phone	51%	17%
Go Online to Financial Institution's Site	74%	59%
Via Mobile Browser	16%	4%
Via Mobile Application	13%	3%
Via Mobile Text Message Alerts	13%	2%

"As people increasingly rely on digital channels to manage their credit card accounts, it's important to understand to what degree consumers are using them and how these access methods create value for issuers' key customer segments," added Ms. Lenart.

To download a complimentary copy of the comScore Online Credit Card Report 2010 Edition, please visit: http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/The_2010_Online_Credit_Card_Report

Date: April 19, 2011

Speaker: comScore, Inc.

Event: comScore Whitepaper

Download Whitepaper

The 2010 Online Credit Card Report provides a comprehensive look at the U.S. online credit card industry over the past year, focusing on shifts in the industry related to improving perceptions of the economic environment. Among its findings, the study reveals a greater percentage of card shopping activity among consumers who reported having a more positive view of the economy.

The report draws its analysis from comScore’s research panel of 1 million U.S. consumers and a comScore survey of nearly 2,000 U.S. Internet users conducted in December 2010, and provides insight into card features and rewards programs most likely to influence card shopping decisions. In addition, the study discusses the growing importance of online servicing for issuers and opportunities to provide more value for consumers using digital channels to engage their issuers.

About comScore

comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world. For more information, please visitwww.comscore.com/companyinfo.

2011 Prepaid Cards and Products: Expanding and Innovating for Mass Market Appeal

2011 Prepaid Cards and Products
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	Have a question? Call us at (925) 225-9100 ext. 31 or reach us by email atinquiry@javelinstrategy.com

Overview

In today’s volatile economic and regulatory environment, prepaid cards have become increasingly popular among both industry members and consumers, especially the underbanked and young consumers. Regulations such as the Durbin Amendment, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 and Regulation E have the potential to severely limit the amount of revenue collected from traditional payment options, encouraging a shift in direct deposit account (DDA) economics and likely making these accounts more expensive for consumers. In addition, because of a confluence of regulatory and economic factors, many consumers are no longer eligible to use some forms of payment. Prepaid cards, especially general‐purpose reloadable cards, are unique in their ability to fill a void in both the payments and DDA markets. They bring distinct solution sets and financial inclusion to targeted populations, such as college‐age students and their parents who want an affordable, secure way to pay for the students’ needs without running up debt; government benefits recipients who need a safe, easy way to receive their unemployment benefits, support payments and other federal or state disbursements; and the underserved who would otherwise not be able to access the card‐based payments grid.

Primary Questions:

• How has the market for prepaid products changed in recent years?
• What are the key regulations that have led to the growth of the prepaid card industry? What other market changes have contributed to the growth?
• In what key demographic segments has the prepaid market seen the greatest growth? How are prepaid products positioned to meet the needs of these unique demographics?
• How do prepaid products compare with checking accounts in features, fees and other aspects? What are some of the key differences between checking accounts and prepaid accounts?
• How can prepaid issuers successfully market their products? What marketing strategies can be used to increase consumer adoption? What features can be added to increase adoption?
• What are some of the potential areas for growth in the prepaid market?

Methodology:

This report is based on survey data Javelin collected online in September 2010 from a random‐sample panel of 4,998 consumers. The survey targeted respondents representative in proportions of gender, age and income of the overall U.S. online population. According to the U.S. Bureau of the Census, the projected 2011 U.S. population is estimated to be 311 million people.1 The overall margin of sampling error is ±1.39 percentage points at the 95% confidence level. The margin of error is larger for subsets. The report also incorporates findings from interviews conducted with a variety of leading stakeholders in the prepaid market, including card networks, bank issuers and providers of prepaid cards and services.

Companies Mentioned

American Express	JPMorgan Chase
Bancorp Bank	KeyBank
Bank of America	MasterCard
BB&T	MetaBank
Billeo	NetSpend
Cardlytics	Palm Desert National
Citi	Plastyc
Columbus B&T	Regions Bank (Comdata)
Comerica Bank	U.S. Bank
GE Money	UMB Bank
Green Dot	Visa
H&R Block	Wells Fargo