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TABLE OF CONTENTS
Section

Page
CHAPTER I:  Executive Summary   1
CHAPTER II:  Market Status and Definition 11
  2.0  Introduction 11
  2.1  Market Definition 13
    2.1.1  Open Market 13
    2.1.2  Closed Market 15
  2.2  Stored Value Applications 16
    2.2.1  Payroll 17
    2.2.2  Expense Accounts 18
    2.2.3  Government Disbursements 19
    2.2.4  Insurance Payments 19
  2.3  Technology Employed 19
    2.3.1  Smart Cards 20
    2.3.2  Prepaid Point-of-Sale Activation 21
  2.4  Evolution of Prepaid from Telephony to Stored Value 22
    2.4.1  Telephony Sets the Stage 22
    2.4.2  Another System is Required 22
    2.4.3  Group Served 23
  2.5  Evolution of Financial Services -- Disruptive Innovation 24
  2.6  Credit vs Debit Cards 26
  2.7  A Major Win for Consumers 27
  2.8  Value Proposition 28
    2.8.1  Retailer/Business 29
    2.8.2  Financial Companies   29
Chapter III:  Stored Value Market Drivers and Inhibitors 31
  3.0  Introduction 31
  3.1  The Unbanked -- Open Systems 32
  3.2  Convenience -- Open Systems 32
  3.3  Convenience -- Closed Systems 33
  3.4  Expense Control -- Open Systems 34
  3.5  Expense Control -- Closed Systems 35
  3.6  Fraud Control/Security -- Open Systems 35
  3.7  Fraud Control/Security -- Closed Systems 36
  3.8  Loyalty 36
  3.9  Panache 37
  3.10  Reduce Expense/Save Money 37
    3.10.1  Stored Value vs Credit Cards -- A Cost Comparison 38
    3.10.2  Account Statements and Customer Service 40
  3.11  Stored Value Can Change the Credit Card Industry 41
  3.12  Regulation and Standards 41
  3.13  A Stored Value Strategy for Prepaid Telecom Companies 42
    3.13.1  Value Providers By Prepaid Vendors 43
    3.13.2  Telecom Services + Stored Value + Segment Marketing 43
    3.13.3  Ethnic Groups 44
    3.13.4  Youth Market 45
    3.13.5  Take the Credit Out of Credit Cards 46
    3.13.6  New Payment Method Required 47
    3.13.7  Wireless Service Providers 48
  3.14  Conclusion 48
  3.15  An Opportunity for Major Telephone Companies   49
CHAPTER IV:  Stored Value In Action:  Case Studies 51
  4.0  Introduction 51
  4.1  Starbucks Coffee Company 52
  4.2  Coca-Cola Company 53
  4.3  American Skyline Insurance Company 58
  4.4  Western Union 59
  4.5  Conclusion   61
CHAPTER V:  Positioning To Capitalize On Stored Value:  Major Players 63
  5.0  Introduction 63
  5.1  American Express 64
    5.1.1  Corporate Defined Expense Program 65
    5.1.2  Open System Gift Card 66
  5.2  Card Express Inc. 66
  5.3  Clarity 68
    5.3.1  HealthCare Benefits 68
    5.3.2  Gift Cards 68
    5.3.3  Payroll Cards 69
  5.4  Concord EFS 69
  5.5  Datamark Technologies 72
    5.5.1  E-GiftTM Stored Value Program 72
    5.5.2  Patron PlusTM Loyalty Program 73
  5.6  DataStream 74
  5.7  First Data 74
    5.7.1  ValueLink 75
      5.7.1.1  Clients 75
      5.7.1.2  ValueLink Applications 76
    5.7.2  Western Union 77
  5.8  InterMarte 78
    5.8.1  Smart CARDVPN 79
  5.9  MasterCard 80
  5.10  Metavante Corporation 81
  5.11  Morgan Beaumont 82
  5.12  NCMS -- National Cash Management Systems 83
  5.13  Next Estate 84
  5.14  PaymenTech 85
  5.15  The Rush Card (Issued by UniRush Financial Services) 85
  5.16  Q Comm 87
  5.17  Radiant Telecom 88
    5.17.1  Radiant Universal Card 88
  5.18  Size Technology 89
  5.19  Stored Value Systems -- Comdata 90
  5.20  WildCard Systems 92
  5.21  Vesta 95
  5.22  Visa International   97
CHAPTER VI:  Current Market Demographics and Five-Year Forecasts 99
  6.0   Assumptions and Methodology 99
  6.1  Credit Card Projections 101
  6.2  Debit Card Projections 107
  6.3  Prepaid Debit Cards 112
  6.4  Convenience/Gift Card Projections 119

LIST OF TABLES AND FIGURES
Table             Page
2.1  Card-based Transactions in the U.S. in Billions
4.1  Wireless Carrier DA Charges   27
Figures                  Page
4.1  Starbucks Card Activation 54
4.2  Starbucks Card Redemption 55
4.3  Starbucks Card Reloads 56
6.1  Credit Card -- Dollar Volume -- 2002 to 2007. 102
6.2  Number of Credit Card Transactions -- 2002 to 2007 103
6.3  Amount of Average Credit Card Transactions -- 2002 to 2007 104
6.4  Number of Credit cards in Circulation -- 2002 to 2007 105
6.5  Debit Cards -- Dollar Volume -- 2002 to 2007 108
6.6  Number of Debit Card Transactions -- 2002 to 2007 109
6.7  Average Value of Debit Card Transactions -- 2002 to 2007 110
6.8  Number of Debit Cards in Circulation -- 2002 to 2007 111
6.9  Number of Prepaid Debit Cards Issued -- 2002 to 2007 113
6.10  Prepaid Debit Card – Dollar Volume -- 2002 to 2007 114
6.11  Number of Prepaid Debit Card Transactions -- 2002 to 2007 115
6.12  Prepaid Debit Card Fee Revenues -- 2002 to 2007 116
6.13  Convenience/Gift Cards Dollar Volume -- 2002 to 2007 121
6.14  Number of Convenience/Gift Card Transactions -- 2002 to 2007 122
6.15  Average Value of Convenience/Gift Card Transactions -- 2002 to 2007 123
6.16  Number of Convenience/Gift Cards Issues -- 2002 to 2007 124

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