Contactless Must Move Beyond Niche Markets

A new report predicts that the number of consumers using a contactless credit or debit card is likely to grow from 19 million last year to 50 million by 2012. The study also found that physical world contactless payments through the mobile phone show the most promise but present the most obstacles. The research from Javelin Strategy says the primary factors that will enable mobile payments as a whole to succeed or fail are the creation of an effective and wide-scale value proposition for merchants, and an effective carrier revenue strategy. Javelin says payment networks must focus on converting carriers and networks, leaving the majority of consumer adoption issues to financial institutions that have direct relationships with consumers. The study also noted that the key to widespread proliferation is the expansion of acceptance beyond niche markets. Also, until an effective revenue sharing model is created that provides for carrier value in the mobile transaction value chain, handsets equipped with NFC technology will not be in consumers’ hands.

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Euronet Worldwide Names a New President

Euronet Worldwide has appointed Kevin Caponecchi, previously with GE Transportation, as president. Caponecchi will be responsible for the strategic and operational leadership of Euronet’s EFT and Prepaid Processing business segments on a global basis. Caponecchi is a highly accomplished executive with 17 years of domestic and international management experience and demonstrated success in increasing sales, global market share and profitability. Caponecchi began his career as a member of the Manufacturing Management Program at GE Power in 1990. Since then, he has worked in various management capacities within manufacturing, technology and marketing at GE. In his four years with the GE Transportation business, Caponecchi helped lead the Signaling team through double-digit growth and numerous product launches. In addition, he was instrumental in expanding the business into China, India and South America. He holds degrees in physics from Franklin and Marshall College and industrial engineering from Columbia University. Euronet Worldwide is an industry leader in processing secure electronic financial transactions.

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mPoria Integrates PayPal with its GoMobile!

Seattle-based mPoria has integrated PayPal’s automated mobile payment service into mPoria’s GoMobile! m-commerce platform. PayPal will be the third-party provider and mobile commerce payment mechanism within GoMobile!, acting as a mobile web wallet that enables consumers to pay for merchandise purchased over their mobile phone using a credit card, banking account or stored balance on their PayPal account. PayPal’s mobile payment technology will be integrated within the mPoria GoMobile! platform and receive prominent positioning when users purchase retail goods from merchants with mobile shopping sites powered by mPoria. mPoria is a provider of mobile commerce solutions.

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TRM Sells its Canadian Photocopier Business

TRM Corporation has completed the sale of its Canadian photocopier business to TRM Multitech Services Inc for $398,645. TRM Multitech Services, based in Canada, is a sister company of FPC Multitech Services, which specializes in the sales and service of office equipment. Net proceeds from the sale will be used to reduce outstanding debt and for other corporate purposes. TRM Corporation is a consumer services company that provides convenience ATM services in high-traffic consumer environments.

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Consumers Want M-Devices & ATMs Integrated

A new report finds that three out of four consumers are more likely to do business with organizations that offer some kind of self-service. An amazing 92% said they value combining mobile devices with the Internet and self-service kiosks or ATMs to improve their overall service experience. The study conducted by “BuzzBack Market Research” for NCR found however that a significant number of consumers prefer person-to-person interaction for complex transactions such as obtaining mortgage or investment advice. Some of the more frequently cited transactions respondents said they would like to see automated through multipurpose kiosks include: renewing drivers’ licenses or vehicle registration (76%); checking the status of items ordered online (71%); purchasing transit or airline tickets (62%); making photo copies (57%; and ordering flowers, books and other items (54%). The top-three locations where respondents would like to see this type of convenience are in airports (70%); malls (65%); and grocery stores (55%).

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Euronet Appoints New President

Euronet Worldwide has appointed Kevin Caponecci to President. He will
be responsible for the company’s EFT and Prepaid processing
segments around the world. Caponecci has 17 years of management
experience since beginning his career for the Manufacturing Management
Program at GE Power in 1990. He then became president of GE
Transportation’s Global Signaling business, with over $600 million in
annual sales. Euronet is the third-largest global money transfer company
with processing centers in the U.S., Europe and Asia. The company
processes electronic top-up transactions at more than 356,000
point-of-sale terminals for more than 186,000 retailers. Euronet has
26 worldwide offices and serves clients in approximately 100 countries.

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Global Prepaid Trade Association is Formed

MasterCard, GE Money, Chase, American Express, Sainsbury’s, the VA merchant alliance and TSYS have teamed to create an international trade association for prepaid commerce. It is the first global association to focus on the entire prepaid commerce industry – from retailers and providers of voucher services to financial institutions and telecoms companies, as well as public authorities and service providers to the industry. The new Prepaid International Forum’s first task is to address concerns within the industry over poor consumer education of the benefits of prepaid. The initial focus of PIF will be on the European prepaid commerce industry, extending to other regions in response to Member interests.

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M-Payment Service Company Gets Venture Funding

Danal has received $9.5 million from Morgenthaler Ventures. The
funds will be used by Danal mobile payment service to add to its team,
commercialize its service in the U.S. and strengthen relationships with
mobile carriers and merchants. Danal had revenues last year of nearly
$75 million. The company’s service allows consumers to purchase goods
and services online by charging their regular mobile phone bills. South
Koreans charged more than $1 billion worth of transactions last year using
this service, for which Danal Co. currently holds close to 50% market
share in South Korea. Morgenthaler has US$2.5 billion under management
and has funded more than 250 companies over its 39-year history.

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HUAXIA CARD

The Federation Internationale de Football Association has agreed to pay $90 million to MasterCard to settle a dispute over sponsorship of the 2010 & 2014 “FIFA World Cups.” MasterCard had sponsored the tournament since 1990. Both parties also agreed to terminate legal proceedings in the U.S. and Switzerland. Under the terms of the agreement, FIFA has agreed to pay MasterCard $90 million to resolve all disputes between the parties, of which $87.5 million is being paid in the second quarter and $2.5 million will be paid in the third quarter.
Last April MasterCard filed a complaint seeking an injunction against the governing body of the “FIFA World Cup” to prevent FIFA from moving forward with an agreement with VISA International to sponsor the 2010 and 2014 “FIFA World Cups.” (CF Library 4/24/06)

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Oberthur Moves Caen Staff to Vitre

Oberthur Card Systems announced a industrial reorganization in order to achieve economies of scale while maintaining geographical proximity to its customers. Card personalization centers in the U.S. will be reorganized into two centers instead of three. The business of the Illinois site, which employs 124 people, will be transferred to the Los Angeles and the Virginia sites. In order to maintain production in France in a sustainable way, Oberthur says the production of high added value SIM cards and manufacturing, currently taking place in Caen, will be kept in France and reorganized alongside the manufacture of bank cards at the single site in Vitre. Every one of the 163 employees at Caen will be offered employment at Vitre or elsewhere within the company. Also, the production of SIM cards with low added value will take place in existing sites outside Europe.

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