TNS Acquires an Aussie CNP Specialist

VA-based Transaction Network Services has acquired Australian-based Dialect Payment Technologies for $4.2 million. The deal will give TNS entry into the CNP market. DPT’s electronic transactions engine adds a key element to TNS’ services suite that is usable in all geographies. Through the acquisition, TNS also enters relationships with new key customers primarily in the Asia/Pacific region, including credit, debit and ATM card providers and retailers. TNS specializes in the data networks for the transport of transaction-oriented data. DPT also offers IP payment processing services under “white label” arrangements for major financial institutions such as American Express, MasterCard and Commonwealth Bank of Australia. Over 60 banks around the world use Dialect products and services.

SCM Microsystems CEO to Step Down

Germany-based SCM Microsystems announced that founder and CEO Robert Schneider will leave SCM at the end of the month. Schneider’s decision to step down follows a successful restructuring of SCM’s operations that has increased focus on the company’s PC Security business and resulted in a significantly reduced cost structure, strengthening the company’s position as a provider of secure reader technology for the global smart card applications market. SCM’s Board of Directors has initiated a search for a new chief executive officer. Stephan Rohaly, SCM’s current chief financial officer, will take on the role of interim CEO. SCM Microsystems is a supplier of digital content and services.

BMO Mosaik MasterCard Powers Donations

For every customer that applies for BMO Bank’s “Mosaik MasterCard”,
the bank has announced it will donate $100 to the University Hospitals
Kingston Foundation. Furthermore, for every successful applicant, the Bank
will donate $125 for the first use of the card. These donations are part of
BMO Bank’s promotion to support the hospital’s foundation and gain the
attention of potential customers. BMO Bank of Montreal has had a
relationship with Kingston’s university hospitals for more than 160
years and
recently made a $750,000 donation to support hospital redevelopment and
staff education. The bank has assets of nearly $357 billion, more than
employees, and operates 29 branches in the Kingston area.

CyberSource to Acquire Authorize.Net

CA-based CyberSource has signed an agreement to acquire Authorize.Net in a stock and cash transaction valued at approximately $565 million. CyberSource manages payments for about 20,000 mid-sized and enterprise customers. Authorize.Net has more than 175,000 small business customers. Collectively, the companies processed approximately 1.1 billion transactions in 2006, representing $65 billion of e-commerce. Authorize.Net shareholders will receive 1.1611 shares of CyberSource stock for every share of Authorize.Net stock. Shareholders will receive a pro-rata share of approximately $125 million in the form of a cash payment. Robert Donahue, currently a member of the board of directors of Authorize.Net, will join the board of directors of CyberSource. Scott Cruickshank, president and COO of CyberSource, has agreed to resign from the board of directors of CyberSource. The transaction is expected to close in late September or early October.

TNS Acquires Dialect Payment Technologies

Transaction Network Services has acquired Dialect Payment
Technologies for $4.2 million. This includes the acquisition of Dialect
Payment Technologies’ call centers and Internet CNP monitoring division.
Also included are customer relations including credit, debit and ATM card
providers and retailers. Dialect Payment Technologies offers payment
processing and fraud protection headquartered in Australia. TNS has 32
offices in 29 countries with the ability to provide communications in other

MEI Freedom Shopping Kiosk Cited

MEI Retail’s self-service system Freedom Shopping received the “Kiosk Excellence Award for ‘Best New Innovation'” at the 2007 KioskCom Self-Service Expo. KioskCom awarded Freedom Shopping for its “Freedom Shopping Kiosk”, a compact, wall-mounted, self-checkout kiosk that automatically detects radio frequency identification in 10 seconds, with a thumbprint version of the system averaging less than five seconds. The unit is ideal for vendors wanting a speedy checkout without the need for security features. The system accepts all forms of payment and is being used in food service, hospitality, and other retail venues in the U.S. and Australia. Freedom Shopping is a leading manufacturer of RFID self-checkout systems. MEI has the largest worldwide installed base of unattended payment mechanisms.

China Postal Bank Expands Euronet ATM Deal

Euronet has announced the expansion of its ATM outsourcing agreement
with China Postal Savings Bank. The Bank currently has a network of
7,780 ATMs, 90 of which are controlled by Euronet. Under the new
terms, China Postal Bank will outsource an additional 721 ATMs and
provide a range of day-to-day ATM outsourcing services from its
operations center. The new terms will be implemented over the next
year and a half. China Postal Bank is the fifth largest financial
in China with 36,000 branches.

TNB Lands E FCU Processing Contract

Louisiana-based E Federal Credit Union has moved its credit card processing to TNB Card Services. E FCU will convert more than 3,300 credit card accounts to TNB. The $203 million E FCU caters to more than 21,000 members associated with ExxonMobil Corp., ExxonMobil Chemical Co., ExxonMobil Chemical Americas, and ExxonMobil Service Stations in Louisiana. TNB Card Services serves more than 475 financial institutions and managing more than 1.6 million cards.

Western European ATMs Expand 4.4% in 2006

A new research report has found there were 14,295 new ATM installations in western Europe last year to bring the total number of ATMs to 342,495. The U.K. remains the largest market with 60,642 ATMs. Spain, which had the leading position in 2003, is in second place with 57,989 machines, followed by Germany with 53,630 units. The Retail Banking Research study also discovered that the Turkish market recorded the fastest rate of growth in 2006 at 11%, the only country to experience double digit growth. RBR says that for the first time there are more ATMs located off-site than in lobbies. About 29% of ATMs are located off-site in western Europe. Almost 11.9 billion cash withdrawals were made at western European ATMs in 2006, an increase of 1.7% over the 2005 figure. Average usage fell for the fifth consecutive year to stand at 2,888 withdrawals per machine per month. NCR remains the largest ATM manufacturer in western Europe with a 46% market share. It is represented in every country surveyed except Luxembourg. RBR found that two thirds of ATMs use a “Windows” operating system. “Windows NT” continues to lead but its market share fell by six percentage points in 2006 to 32%. Several deployers migrated to “Windows XP,” which saw its market share double from 15% to 30% during 2006.

AmEx Promotes 2 to Replace Gordon Smith

Following the loss of its President for Global Commercial Card group to Chase, American Express announced two appointments yesterday. Anre Williams has been named President Global Commercial Card and Valerie Soranno Keating has been named EVP/Global Marketing & Source-to-Settle. Williams joined AmEx in 1989 and in Corporate Services, he served as VP/GM, Large Market Western Region and SVP of U.S. Middle Market before being named EVP U.S. Commercial Card in 2004. During the past five years, Soranno Keating led Travelers Cheques and Prepaid Services business. She joined AmEx in 1993 and has held a variety of positions in Establishment Services, including VP/GM Retail Industries, VP/Network Expansion, and SVP of Merchant Strategic Relationships.

Nomad Software Becomes Nomad Payments

What was once Nomad Software has changed its name to Nomad Payments,
reflecting the company’s expansion into other services. These additional
include pre paid cards, debit cards, and advanced processing security. Nomad
introduced 40 new programs signed agreements with nine additional customers
in 2006 on prepaid projects. In 2007, Nomad Payments implemented open loop
prepaid projects for companies such as IDT Financial Services, Tuxedo Money
Solutions, Think Money, Chequepoint and CredEcard.

TransFirst’s CEO Rouse to Retire

Dallas-based credit card processor TransFirst announced the retirement of Chairman and CEO Thomas Rouse. John Shlonsky has been named President and CEO, effective immediately. Shlonsky joined TransFirst as President and COO in October from First Data, where he was president of First Data Merchant Services. Rouse, who has served as CEO since founding the company in 1995 as ACS Merchant Services, has grown the company through seven acquisitions to its current position of $25 billion in annual sales. In May GTCR signed a deal to sell TransFirst to Welsh, Carson, Anderson & Stowe for $683 million. TransFirst currently processes for more than 155,000 merchants and 965 financial institutions. (CF Library 5/15/07)