CSG Acquisition Drives TNS Q2 Revenue Growth

VA-based transaction communications specialist TNS reported total
second quarter revenue of $122.0 million, a 35% increase. However,
second quarter GAAP net income was $453,000, versus 2Q/08 GAAP net
income of $1.0 million. The results were driven the Company’s May 1st
acquisition of Communication Services Group, a former VeriSign business.
Revenue from the International Services Division decreased 22% to $33
million. Revenue from the Financial Services Division increased 5% to
$12 million. Revenue from the Telecommunication Services Division
increased $40 million to $57 million, due primarily to $42 million in
revenue from the CSG business. Revenue from the POS Division increased
2% to $20 million. TNS says it expects full year revenue to increase to
$478 – $486 million from $468 – $482 million. For complete details on
TNS’ second quarter performance visit CardData (www.carddata.com).

Details

Prime Factors and GEOBRIDGE Team for Security

Data encryption provider Prime Factors and data security consultant
GEOBRIDGE have formed a reseller partnership to target the payments
industry with complementary data security software and services. Prime
Factors is a provider of software that helps support
security requirements established by the card associations. Prime Factors’
“EncryptRIGHT” software meets Payment Card Industry (PCI) requirements
for encryption and key management. GEOBRIDGE’s consulting expertise
includes PCI assessments and Thales HSM
(Host Security Module) implementations. Prime Factors’ “Bank Card
Security System” works with the “Thales HSM 8000” to provide the
most secure environment to produce financial transaction cards and to
process transactions.

Details

Bottomline Technologies Acquires BofA’s PayMode

Payment technology provider Bottomline Technologies has acquired
Bank of America’s “Paymode” and will reposition it as an SaaS to enhance the payment network.
Bottomline Technologies will acquire the “PayMode” product,
operations and vendor network. In addition to continuing to market “PayMode”
to new clients, Bank of America will retain existing “PayMode” client
relationships and join Bottomline’s Strategic Advisory Council. The bank
will also have an equity interest in the company via warrants for one
million Bottomline shares. Bank of America and Bottomline will deliver next
generation solutions for integrated payables automation, enabling
businesses to capitalize on the two organizations’ shared vision for
automated business-to-business electronic invoice and payment processing
and remittance data delivery. With 80,000 vendors, “PayMode” is one of the
largest and fastest-growing business-to-business payments networks
operating today. The relationship will leverage Bottomline’s experience
with SaaS solutions including its advanced invoice management workflow,
global payment platforms and innovative cash management offerings used
by leading corporations around the globe.

Details

NFC FORUM IMPLEMENTER

The NFC Forum non-profit industry association has introduced its new
membership level called “Implementer,” designed to further the NFC
ecosystem and broaden global reach. Targeting companies directly
implementing NFC solutions on a daily basis, “Implementer” offers a
platform to complement existing NFC Forum membership levels. For an
annual cost of US$5000, the new membership level offers access to the
NFC Forum members-only website; plenary meetings attendance; Marketing
Committee Working Group and Task Force meeting participation;
participation in the Committee review period; participation at member
rates in NFC Forum marketing-related events; participation in NFC Forum
members-only Plugfests; and member discounts on product certification.
The NFC Forum was launched as a non-profit industry association in 2004
by leading mobile communications, semiconductor and consumer electronics
companies to advance the use of NFC technology.

Details

Credit Card Solicitations Fall to a 20YR Low

The U.S. Postal Service posted a net loss of $2.4 billion for the
second calendar quarter as mail volume declined by 7 billion pieces,
marking the largest consecutive three-quarter drop in total volume since
1971. Credit card solicitations, which contributed as many as 6 billion
pieces per year, will likely fall below 1.2 billion pieces this year,
the lowest level in more than 20 years. CardWatch (www.cardwatch.com)
reports that direct mail was off at least 70% in the second quarter,
with American Express and Discover dispatching the largest credit card
solicitation mailings. Secured credit card and sub-prime credit card
issuers also ratcheted up direct mail during the quarter. According to
Synovate’s “Mail Monitor,” U.S. households received 372.4 million offers
during the first quarter, compared to 1131.6 million offers received
during 1Q/08. The Q1 sharp drop follows a 55% decrease in the fourth
quarter and a 20% decline in the third quarter. For the full year of
2008 there were 3.8 billion solicitations mailed, compared to 5.2
billion in 2007. Chicago-based Mintel Comperemedia estimates 5.4 billion
credit card direct mail offers for 2008, the lowest annual total the
firm has reported since 2000. (CF Library 2/6/09; 5/26/09)

DIRECT MAIL VOLUME
1999: 2.8 billion
2000: 3.5 billion
2001: 4.9 billion
2002: 4.5 billion
2003: 3.9 billion
2004: 4.2 billion
2005: 6.0 billion
2006: 5.8 billion
2007: 5.6 billion
2008: 3.9 billion
2009: 1.2 billion (projected)
Source: CardWatch.com (www.cardwatch.com)

Details

TRAVELEX EXEC

Paul Ackermann has been appointed the VP of Currency Select Sales for
North America with Travelex. In the role he will be overseeing and
generating new Currency Select business in the United States
and Canada. Bringing to the role over 25 years’ experience in senior
management, sales and marketing, Ackermann comes to the VP spot as the
Head of Sales for North America in Travelex’ Outsourcing division where
he has been for two years. Prior to his time with Travelex, Paul spent
10 years with First Data Resources. The Travelex Currency Select is a
global solution offered to merchant and ATM
acquirers that process international transactions at ATMs, online (CNP)
or POS. The solution converts a transaction amount from the merchant’s
currency into an amount in the cardholder’s home currency.

Details

PREPAID SUMMIT

Given an estimated 65% of the Middle East population is under the age of
30 and real GDP per capita increased about 4% per annum between 2004 and
2006, VRL has announced its 2010 “*VRL Prepaid Cards Summit Middle
East.” *In association with Visa and Mastercard, the “*VRL Prepaid Cards
Summit Middle East”* will be held in Dubai on March 15-16, 2010 at the
Westin Hotel. The Summit hopes to address the recent private sector
initiatives and changes to government regulation have promoted a
dramatic growth across the prepaid market. In doing so, the VRL
Conference will focus on offering attendees unique insights and
knowledge from keynote speakers, insight on **unique VRL research on
consumer attitudes on prepaid cards across the region and an opportunity
for networking with key people in prepaid across the globe.

Details

Intuit GoPayment Available via Apple Store

Financial management provider Intuit has announced the availability of “GoPayment” on the Apple App Store.
The “GoPayment App” is a new way to process
credit card payments using iPhone and iPod touch. The free download
turns iPhone or iPod touch into an affordable and hassle-free credit
card terminal.In addition to the free “GoPayment App”, to process credit card payments,
business owners need an Intuit “GoPayment” merchant account, which costs
$19.95 a month and requires a one-time setup fee of $59.95. Transaction
pricing is competitive and users can cancel any time as there are no
long-term contracts. Standard carrier data and text fees apply when
sending e-mail and text message receipts. For a limited time only, Intuit will waive both the setup fee as well as
the first 60 days of monthly fees and minimums for a savings of more
than $135.

Details

Diebold’s Q2 Americas ATM Orders Down 30%+

Diebold reported that second quarter revenue declined 9% to $700.5 million, but net income rose 5% to $30.6 million. Revenue in the EMEA region was off 31% while the Americas posted a 5% decline and Asia a 2% decline. The Company’s Financial Self-Service Division, mostly its ATM business, posted a 2% decline in second quarter revenue to $536.2 million. ATM product revenue was up 2% while ATM services was down 7% for 2Q/09, compared to 2Q/08. In the Americas financial self-service orders decreased more than 30%, primarily due to a difficult comparison to the prior-year period when the company had two very large orders in Brazil. Orders in the EMEA region decreased more than 40%, but orders in Asia Pacific increased more than 50%. Diebold is forecasting that total revenue will be down 13% to 7% while financial self-service revenue will be off by 8% to 2% for the 2009 full year. For complete detail on Diebold’s latest results visit CardData (www.carddata.com).

Details

GCA to Acquire Western Money Systems in 2010

Las Vegas-based Global Cash Access reported that second quarter revenues rose 3.7% to $173 million. Income from continuing operations in the second quarter was $9.1 million, up 8.4% from the second quarter of 2008. The Company also announced a deal to acquire Western Money Systems for $15 million. WMS is a developer, manufacturer and distributor of cash-handling products to the gaming industry and is one of the top manufacturers and distributors of redemption kiosks to gaming. The transaction is not expected to close until 2010. The Company has observed continued weakness in the markets it serves and believes that weakness will be more prolonged than previously anticipated. The Company now believes that revenue will be at or slightly below the low end of its previously issued expectations for 2009 of between $700 and $730 million. For complete details on GCA’s second quarter performance visit CardData (www.carddata.com).

Details

BORDERLINX

Forty eight per cent of Canadians intend to conduct some online shopping
before Labour Day, one in six of whom will be searching for
back-to-school deals. Of the 48%, one-third is expected to spend more
than did so the year ago period for an average of nearly $600; 35% shop
online for convenience; 40% shop online for cheaper prices; and 26% shop
online for wider selection. These findings, according to a July 2009
survey of Canadian online shoppers commissioned by Visa Canada, also
show 25% of the back to school shoppers will be shopping for books; 22%
will be looking for computers; 10% will be looking for backpacks; and
40% will be looking for clothing. Among the internet back-to-school
shoppers, the average consumer plans to spend $318 while 40% plan to
also shop in retail stores. In retail stores, they expect to spend an
average of $298. Additional findings show Canadian online shoppers made
an average of 7.1 purchases at Canadian sites in the past year but 4.8
purchases were conducted at U.S. sites; 37% did so for pricing; 34%
liked the variety; and 26% needed to for availability. Catering to
Canadian Visa cardholders, Visa is offering its “Borderlinx” solution,
allowing for Canadian orders from U.S. only sites and providing a
calculator to estimate total cost with taxes, duties, currency
conversion and shipment.

Details

EVO Merchant Services CEO Cited

Payment processor EVO Merchant Services announced that CEO Ray Sidhom is a recipient of the 2009
Ernst & Young Entrepreneur Of The Year Award for Metro New York.
Sidhom started selling credit card machines to
retailers. By 1994, he was convinced of his prospects. He formed EVO Merchant Services
with the goal of building an in-house infrastructure to process credit cards
throughout the entire transaction cycle. Fourteen years later, the tools he developed
serve the $20 billion in transaction volume for the nearly 200,000 he processes
for every day. Currently, EVO is investing in the growth of its
partners that have helped it achieve its own phenomenal expansion. As a Metro New York award winner, Sidhom is now eligible for
consideration for
the Ernst & Young LLP Entrepreneur of the Year 2009 national program.

Details