EFT POS TERMINALS

The rising demand for compact, easy-to-use, reliable, wireless
point-of-sale systems and the migration of fraud to non-EMV countries is
driving strong growth in EFT POS terminals market. A new study
reveals that the market accrued revenues of $1.3 billion in 2005 and is
estimated to reach $2 billion in 2011. Frost & Sullivan found that there
is a noticeable shift in card related fraudulent activities to
neighboring countries using less secure magnetic stripe cards for a
majority of their transactions. With the United Kingdom implementing
“Chip and PIN” and France implementing “DDA” cards, countries such as
Germany and Italy are facing the brunt of the increasing migration of
fraud. Singapore and Indonesia are facing a significant threat
from fraud escalation and are considering a move toward EMV-compliant
card technology. This phenomenon is significantly feeding the demand for
electronic funds transfer at point-of-sale terminals worldwide. However,
Frost & Sullivan says that despite the technological trends
revolutionizing the POS terminal market, products are facing
commoditization. Although a lot of emphasis is on software application
delivery and customer service aspects, there is great pressure on price
reduction on terminal manufacturers. This not only affects the profit
margins of terminal manufacturers, but also hinders potential
participants from entering the market.

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NCR to Shift Manufacturing Around

NCR announced plans to realign its global Financial Self Service manufacturing operations in line with the company’s strategy to build a more competitive cost structure. The Company wants to reduce manufacturing operations and shift the focus of its Dundee, Scotland, facility to new product introductions and the delivery of high-complexity/low-volume solutions. NCR also wants to meet volume customer demand in Europe, Middle East, Africa and Asia-Pacific through NCR manufacturing facilities in Beijing, Budapest and India. Additionally, the Company wants to move to a contract manufacturing model in the Americas. Earlier this week, NCR confirmed its intention to separate into two independent publicly traded companies by spinning-off the company’s Teradata Data Warehousing business to NCR shareholders. (CF Library 1/8/07)

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Consumer Spending is Rising Sharply

While many indicators point to a weaker economy in 2007, another index has found that consumer spending is rising sharply. The Deloitte Research “Leading Index of Consumer Spending” rose to 4.06% from an upwardly revised gain of 3.68% a month ago. Deloitte Research says the positive outlook is being fueled by lower energy prices, a strong labor market and some recovery in the housing market. The firm also noted that January and February should be quite strong as consumers redeem their gift cards. The index is comprised of four components: tax burden, initial unemployment claims, real wages and real home prices.

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Mobile Payment Forum Board Named

MA-based The Mobile Payment Forum announced its incoming Board of Directors for the 2006-2008 term of office. The new Board is composed of Martin Harrison, First Data International; Simon Pugh, MasterCard; Christopher J. Bierbaum, Sprint Nextel; Bob Adamany, VeriSign; Stephanie Ericksen, VISA International; and Oliver Kelly, Vodafone. The Mobile Payment Forum brings together leading organizations from the mobile and financial industries to create a foundation for standardized, secure and authenticated mobile payments. Simon Pugh is the president.

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Alternative Payments Market to Explode

A new report predicts that the alternative payments market will grow at a CAGR of 71%, reaching $400 billion by 2011. The study says three emerging payment alternatives to the traditional magnetic stripe credit/debit card payments regime will significantly alter the payment landscape. The PELORUS Group research says contactless credit and debit card payments, mobile payments and biometrically authenticated payments will lead the way. Drivers for the alternative payment market include: consumer demand for speed and convenience; merchant needs for customer loyalty; need for security; need for more real-time information on balances; and the large number of unbanked and underbanked consumers in the U.S. The PELORUS Group estimates that aggregate revenue from contactless, m-Payments, and biometric payments at U.S. merchants will grow over 15-fold by 2011 from a 2006 level of $27 billion. Contactless payments will reap the bulk of the growth but the potential for the other payments through 2011 and the opportunities developing for payments innovators as a result of that growth should not be underestimated.

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Hypercom TPI Software Deal is Done

Hypercom has closed on the acquisition of the technology and assets of TPI Software. Based in Redmond WA, TPI is a provider of innovative payment technologies for processing credit card, debit/ATM card, EBT, Gift card, electronic check services and electronic signature/receipt & check image capture and retrieval services. TPI Software developed “TPI SmartPayments,” an electronic payment solution that supports the major U.S. payment processors as well as client solutions that work on any device, at anytime and anyplace. The acquisition broadens Hypercom’s customer base and enables the generation of new revenue streams by addressing the technology requirements of and rising market interest in a converged payment infrastructure that places electronic payment functionality on PC-based cash registers.

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