Saranga Sudarshan, Research Analyst, ICT Practice, Frost & Sullivan Australia & New Zealand says decentralization of the payments network will allow Fintechs to offer convenient and competitively priced payment solutions. Sudarshan says new EFTPOS and online charging solutions will permit more credit card payments to merchants at a reduced cost of receiving payments. From 2016,…
Reengineering back office processes, the increased digitalization and automation of these processes as well as smart document management are decisively contributing to increasing the productivity and efficiency of different financial entities in various countries.
CardWeb.com’s CardData Reports today features the Frost & Sullivan “Digital Signature in Europe: The Best Approach for Success” white paper.
In today’s CardFlash News Que: FROST & SULLIVAN (digital); NEXONIA (webinar); and YAPITAL (Deutscher Sportausweis).
CardWeb.com’s CardData database of Company Profiles today features Alibaba.
In the CardFlash News Que: CPI CARD GROUP; SYNCHRONY FINANCIAL; VSOFT; MOBILE STRATEGY PARTNERS: INSIDE SECURE; and MILBERG.
Mobile money is shaping up to be one of the most exciting areas in mobile communications and is quickly transforming the way in which consumers and enterprises transact. Mobile network operators (MNOs) are taking advantage of the growing popularity of mobile money to boost average revenue per user and counter the increasing pressure on voice revenues.
CardWeb.com’s CardExecs database of payments industry movers and shakers today features Paul Rasori, Executive Vice President, Product and Marketing of PowaPOS.
The global smart card market will see steady growth due to the increasing emphasis on the Europay, MasterCard and Visa (EMV) standard in the payment and banking vertical. New analysis from Frost & Sullivan, 2014 Global Smart Card Forecaster, finds that the market earned revenues of €5.37 billion in 2013 and estimates this to reach €7.16 billion in 2019. The SIM card segment will account for 42.6 percent of the total revenue while the banking and payment vertical will make up 33.5 percent. The smart card government ID and transportation sectors will constitute the rest. This rapid shift to EMV contactless solutions and the associated large volume of shipments will cause pricing pressures in the smart card market, mainly in Asia-Pacific. A similar case is also expected in the US, where the uptake of EMV and contactless solutions has been considerably delayed. With many companies in the US having already invested in EMV in anticipation of a possible migration, it is uncertain whether these firms will have a positive return on investment.
Sphonic announced Tom Sullivan has joined the company launch their products into the “Americas” market. Tom Sullivan comes with a wealth of experience within the digital payments & fraud prevention industry, having spent the last twelve years at Expedia Inc. as Senior Director, Global Risk & Payments. In parrallel, Tom has been the Chairman of Merchant Risk Council, driving the organisation’s impressive growth over the last 10 years. Tom joins Sphonic Americas, to replicate Sphonic’s successes in Europe in providing innovative solutions for risk management and customer acceptance to a range of digital clients.
World First has today announced the launch of a ground-breaking new mobile app which will allow clients to make high-speed currency transfers directly from their portable device. The World First Money Transfer App is available to download on iTunes and other app stores for free. It enables clients to manage their international payments on-the-go, so they could be making a secure transfer whilst on the Eurostar from London to Europe, and the money will be in their local account before they arrive.
USA Technologies issued a letter to its shareholders, disclosed below:
As we approach our Annual Meeting of Shareholders to be held on June 18, I wanted to share some highlights with you of our encouraging progress on several important fronts.
Your board of directors’ and management team’s top priority has been to drive USA Technologies to profitability, and deliver increased customer and shareholder value. We have executed on a vision that has delivered enhanced governance, market leadership in self-serve retail, and an unmatched and ever-expanding product and service portfolio. Most importantly, however, we believe that we have delivered a significant financial turnaround to our shareholders, and taken steps that we believe position USA Technologies to achieve our target over the next three to four years of $100 million in revenues and double digit operating margins as we continue to drive connections to our ePort Connect™ service.
We achieved profitability for the first time starting with our quarter ended December 31, 2012, and additionally, we have delivered six consecutive quarters of non-GAAP net income through our latest fiscal quarter ended March 31, 2014. By way of comparison, during our quarter ended September 30, 2011, the quarter ended prior to my taking the role as Chairman and CEO, we had a non-GAAP net loss of ($1,800,000) and for our most recent quarter ended March 31, 2014, we had non-GAAP net income of $321,526, a $2.1 million quarterly increase.
We achieved GAAP net income for the first time during our 2013 fiscal year of $854,123 as well as GAAP net income for our nine months ended March 31, 2014. In comparison, during our fiscal year ended June 30, 2012, we had a GAAP net loss of ($5,200,000), or a $6.1 million improvement in one year.
Due to earnings generated in our fiscal year 2013, and earnings continuing during the nine months of our fiscal year 2014, and what we believe to be the sustainable nature of our recurring revenue service model, in our March 31, 2014 quarter we recognized $26.7 million of deferred tax assets as it became likely that we would utilize these assets as the result of generating future taxable income.
Our business has now achieved what we anticipate will be sustainable cash flows from operations. For our fiscal year 2012, we generated just $78,000 of cash flow from operating activities, however, for fiscal year 2013 and for the nine months of fiscal year 2014, we generated $6.0 million and $4.8 million, respectively.
USA Technologies and its current board have created significant shareholder value. For example, on March 6, 2012, our shares closed at $.94, and recently, on May 29, 2014, our shares closed at $2.01, representing a 112% increase, a substantial increase in market capitalization”from approximately $30.6 million, to approximately $71.5 million.
Our strategy for growth has been straightforward and consistent”to continue to increase the number of new connections to our ePort Connect™ service”and, to continue to create more value for every connection to our service, for both customers and shareholders. Strategies in place to achieve these goals have resulted in a host of additions to our comprehensive solutions suite and to a record number of new connections in the first nine months of fiscal 2014.
Having achieved these important goals for profitability, in fiscal 2014 we set our sights on building momentum in important areas of the self-serve retail market based on our view of how those markets would continue to evolve. Our progress included:
Increasing the number of connections to our service, from 129,000 as of September 30, 2011, to 244,000 as of March 31, 2014, representing an increase of 89%;
Generating the largest portion of our connections from our existing customer base”a base that we believe manages over 2 million potential machines yet to transition to cashless payment;
Leveraging USA Technologies’ early start in mobile-based payment services with over 75,000 locations enabled for the Isis mobile payment and “Fifth Purchase Free” program, one of the nation’s largest implementations of a payment and loyalty program utilizing smartphone technologies;
New consumer engagement services such as our MORE loyalty program, including the recent introduction of a MORE consumer mobile app utilizing eBeacon™ mobile payment technology powered by Bluetooth Low Energy;
Evolution of our ePort Connect™ service to extend our service capabilities across the vending spectrum. New Integrated Payment Services expands USA Technologies’ growth potential beyond the vending machine level”to micro-markets, dining services and other business segments managed by our vending customers;
Important new sales and distribution relationships that allow us to extend our service to other similar markets with ease. For example, in commercial laundry, in fiscal year 2013, we became the exclusive service provider to Setomatic Systems, a relationship that has yielded over 7,500 new connections to our service since that time; and
In taxi and transportation, new agreements with systems integrators in this market have extended the reach of our sales and marketing efforts. For example, within just a few months of introducing ePort GO™ for taxi and transportation businesses, our work with the Verizon Wireless’ business to business team has already resulted in an encouraging number of new customers and connections to our service. We are pleased to report that, during the current fiscal year, our direct sales efforts and that of partners like Verizon have yielded over 12,000 achieved or contracted connections in this important new market.
Our innovation on behalf of our customers continues to earn recognition for USA Technologies. Recently, USA Technologies was honored with the Frost & Sullivan 2014 North American Customer Value Leadership Award in Financial Services and Retail M2M Communications, an award presented to a company that has demonstrated excellence in implementing strategies that proactively create value for its customers. We also earned the top award for the vending category at the 2013 Connected World Value Chain Awards, featuring our value chain partners, Verizon Wireless and Telit Wireless Solutions.
In closing, strong connections, a solid pipeline and a growing list of partners and customers leave us very encouraged about the business. Consumer preferences continue to shift toward cashless and mobile payment trends are already providing added stimulus. As a leader in the cashless movement, we believe that USA Technologies has the experience, the knowledge, the people and the vision to take advantage of these opportunities and build on our momentum.
Your board and management cordially invite you to attend our June 18 Annual Meeting of Shareholders. Whether or not you expect to attend the Annual Meeting in person, we strongly encourage you to vote your shares. If you have questions about USA Technologies’ business or the Annual Meeting, please contact investor relations at 1-800-633-0340, or send an email to [email protected] .
I want to thank you for your support and hope you share the excitement that I feel for the future of USA Technologies.
Best wishes to you and your family,
Stephen P. Herbert
Chairman and Chief Executive Officer”