Payment processor US Dataworks and Hyundai Syscomm have terminated their Software Integration and Resale Agreement due to “timing differences”. Hyundai will return the 6.1 million shares of the Company’s common stock, which has been held in escrow, and will no longer be entitled to receive any warrants to purchase shares of the Company’s common stock. The Company plans to retire the returned shares, which shall have an accretive effect on the remaining shares outstanding and as a condition of the nullification, each party will no longer have any duties or obligations ascribed to the Resale and Purchase Agreements.
BB&T Bankcard Corporation’s 1.1 million credit card accounts have been successfully converted to the Fidelity National Information Services platform. FIS is now processing all transactions for credit cards issued by BB&T Bankcard Corporation, a wholly owned subsidiary of BB&T Corporation. The 10-month conversion project involved extensive planning and cooperation between BB&T and FIS, and included the introduction of expanded product functionality and greater operating efficiencies.
USA Technologies has announced that it has purchased more than 2,000 ViVOtech NFC card readers its “e-Port” contactless technology in vending machines. ViVOtech s following up with another order of 8,000 to be delivered in 2008. These readers accept all major credit cards, both magnetic swipe and contactless NFC cards. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries.
Prepaid card provider SmartCard Marketing Systems has entered into an ISO agreement with TX-based Payment Data Systems to market payment processing services. This agreement is an expansion from the initial private label, open-loop debit card agreement between the two companies signed in March 2007. The first card program, a corporate promotion card for incentives, premiums and loyalty reward distribution, was successfully launched in September 2007. Payment Data Systems is an integrated payment solutions provider to merchants and billers.
Hypercom is in final negotiations to acquire the e-Transactions business line of Thales. The Company also announced the promotion of Philippe Tartavull to CEO from COO. Under terms of the Thales deal Hypercom would purchase the French firm’s e-Transaction business line for $120 million in cash with a potential earn out of up to $30 million. Thales Group’s Security Solutions & Services Division posted consolidated revenues for the first three quarters of 2007 of $142 million. The proposed combination would represent the third largest global provider of electronic payment solutions and services. Hypercom said it plans to finance the transaction with $60 million of the Company’s existing cash on hand, combined with a $60 million investment from Francisco Partners. Meanwhile, Hypercom confirmed that Tartavull will now serve as CEO and President and member of the Board. Norman Stout has been elected Chairman of the Board, replacing Daniel Diethelm who will remain as a member of the Board. Johann Dreyer, CEO and Director of S1 Corporation, has been appointed to the Board. Upon the closing of the Thales deal, Keith Geeslin, Partner of Francisco Partners, and Jack McDonnell, Jr., retired Chairman, CEO and founder of TNS, are expected to be appointed to the Hypercom Board.
Intuit has inked an agreement to acquire Electronic Clearing House for about $131 million. Intuit had previously signed a deal to acquire ECHO in December 2006, but the parties mutually terminated the arrangement in March after ECHO encountered a government probe of its Internet wallet merchant business. ECHO reported this week that third quarter revenue declined 4.5% to $18.5 million. However, bankcard and transaction processing revenue grew 6% to $15.5 million, while bankcard processing volume increased 7% to $484.5 million. ECHO currently expects total revenue for fiscal year 2008 will increase by 10% from total revenue of $76.9 million for fiscal year 2007. Intuit says the combination will be able to round out its payment offering with check services. (CF Library 12/17/07)
Environics Research Group research, conducted on behalf of Mastercard
Canada, has shown that with less than 7 days until Christmas many Canadian
consumers have yet to complete their holiday shopping. Moreover, 19% have
yet to begin their holiday shopping, 67% of whom are Canadian men. In
response to these findings, Mastercard recommends to these shoppers to
decide in advance what needs purchasing, avoid crowds by shopping during
off-hours, buy gifts for multiple recipients at once, maintain all
receipts to compare with card statements and to shop online if possible.