At the GSM World Congress, Microsoft announced that within three months of the launch of Microsoft Windows for Smart Cards at Cartes 99, it has received orders for over 15 million Windows Powered Smart Cards solutions from card manufacturers. The first companies to use the Windows for Smart Cards operating system include British Telecommunications PLC, which is taking part in a pilot program aimed at bringing one-touch remote network access to mobile workers, and BRED Banque Populaire in France, which will offer a full authentication and security solution for business-to-business Internet commerce. At the conference, Microsoft will demonstrate phone calls on GSM cards using Windows for Smart Cards with customized services for carriers such as e-mail, calendar, stock quotes and other Internet applications.Details
ACNielsen Canada, an operating unit of ACNielsen Corporation, reported that cash is still the preferred retail payment method among Canadian adults. According to the recent telephone survey of 2,000 primary household grocery shoppers age 18 or older, cash was used in six out of their past 10 retail transactions. Debit cards were used for three transactions, while credit cards accounted for one transaction. Cheques and all other available payment methods were used in just two percent of all retail transactions.
Each payment method was used most often by different demographic and geographic groups. Younger consumers used debit cards more frequently than other groups, with the highest use reported in Quebec and in the Prairies. Credit cards registered the highest usage rates among baby boomers, especially those living in Western Canada. Use of both debit and credit cards was highest among more educated and wealthier consumers. Less educated, poorer and older consumers were most likely to use cash.
According to Tim Hodapp, vice president of ACNielsen DJC Research, consumers clearly have safety concerns about payment cards. “In the eyes of the consumers, no payment method is absolutely safe, but they are especially concerned about debit and credit cards. Thirty-nine percent of all respondents said they were either concerned or very concerned about the safety of debit cards — perhaps a result of recent publicity about debit card scams. Thirty-six percent reported safety concerns about credit cards.”
Concern over debit cards was highest in Quebec (47.7 percent). As for credit card safety, residents of the Prairies registered the most concern (40.8 percent).
ACNielsen, offering services in over 100 countries and with 1998 revenues of $1.4 billion, is the global leader in delivering market research, information and analysis to the consumer products and service industries. ACNielsen Canada is based in Markham, Ontario, with regional offices in Vancouver and Montreal.Details
Digital Courier Technologies, Inc., a leading provider of advanced e-payment services specializing in fraud and risk management, announced that it has joined GlobalPlatform, a global smart card standards organization. A cross-industry enterprise which represents the interests of smart card issuers, acceptance device suppliers, card vendors, public entities, industry groups and technology companies, GlobalPlatform will develop and implement dynamic, multiple application smart card technical standards for use around the globe.
“Our membership in GlobalPlatform will help ensure that DCTI remains on the forefront of electronic payment service technology,” stated Don Marshall, DCTI’s President. “With the continued expansion of Internet commerce worldwide and the growing popularity of smart cards in Europe, we see smart cards playing an increasingly important role in payment transactions throughout the world. DCTI is prepared to meet that demand,” Marshall continued.
As a member of GlobalPlatform’s Business Committee, DCTI will participate in strategy and policy development for the group’s Open Platform. “The Business Committee will help influence the speed and ease of smart card technology adoption,” said Steve Brown, GlobalPlatform’s Chairman. “As a leader in the Internet payments industry, DCTI will be an important contributor to the development and implementation of this important commerce medium.”
GlobalPlatform’s objective is to promote an open smart card standard and includes some of the world’s largest technology and processing leaders including Motorola, Nokia, Sun Microsystems, Toshiba and ACI. DCTI recently announced an agreement with Mondex, a MasterCard International subsidiary, to collaborate on a strategic worldwide alliance for integration of Mondex’s electronic cash payment capabilities with DCTI’s Internet payment products and services. DCTI’s active involvement in both programs is intended to enhance and secure the company’s smart card strategy.
DCTI is at the forefront of Internet payment technology. A recognized specialist in risk management and fraud control, DCTI provides highly- scalable, reliable and fully-integrated payment software and systems for businesses, Internet merchants and financial institutions. DCTI understands its customers’ critical success factors and has made aggressive investments in equipment and worldwide infrastructure to deliver an unparalleled platform to the electronic commerce environment. Payment features of the DCTI system include advanced authentication, validation, fraud screening, payment authorization, settlement and real-time reporting. DCTI’s notable client base and affiliations include U.S. and international banks and merchants, and ongoing development partnerships with industry leaders that include Mondex, National Australia Bank Group, TSAI and GlobalPlatform. For more information about DCTI, visit the website at [http://www.dcourier.com].
GlobalPlatform’s efforts to advance common specifications will be accelerated by the transfer of the Open Platform card specifications and terminal framework developed by Visa International. Open Platform technology can be implemented with the Java Card(tm) platform from Sun* Microsystems and Microsoft* Windows* for Smart Cards. GlobalPlatform will manage, promote and evolve the Open Platform specifications to ensure that card issuers are provided with a wide choice of card technologies with common back-end systems for application loading and management.
This press release contains forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, which could significantly affect expected results in the future from those expressed in any such forward-looking statements made by, or on behalf of the Company. Certain factors that could cause actual results to differ materially include, without limitation, risks relating to the Company’s continued ability to create or acquire products and services that customers will find attractive and the potential for increased competition which could affect pricing and profitability.
Deluxe Corp. announced Monday that its board of directors has approved a plan for a strategic realignment of Deluxe that will create two independent companies. Under the plan Deluxe will combine eFunds and iDLX Technology Partners businesses into a separate, independent publicly traded company, to be called eFunds Corporation. Meanwhile, Deluxe Paper Payment Systems will continue to operate under the Deluxe Corp. name. Deluxe intends to sell a minority interest in eFunds to the public through an initial public offering. Under yesterday’s plan, J.A. Blanchard will become chairman and CEO of eFunds Corporation while Debra Janssen will become president and COO. Lawrence Mosner, currently vice chairman of Deluxe Corp., will become chairman and CEO of Deluxe Corp. and Ronald Eilers will become president and COO.Details
Infobank International Holdings PLC today announced that it has become one of the first European e-procurement software vendors to be named by Visa EU as an approved solutions provider. This enables users of Infobank InTrade, the company’s flagship business-to- business e-commerce software suite, to conduct electronic payment transactions through the Visa Purchasing international payment network. It also allows seamless integration between InTrade and users of Visa Purchasing.
The integration of the Visa Purchasing functionality into Infobank InTrade provides large organizations with electronic access to a global network enabling the settlement of transactions and the delivery of data. The combined solution offers a seamless end-to-end electronic process, providing organizations with substantial cost savings in the purchasing and accounts payable areas. By integrating Visa Purchasing with InTrade, Visa is also able to provide enhanced management information, delivered in real-time, allowing corporate clients to make better informed purchasing decisions.
Alain Falys, senior vice president for commercial products at Visa EU, said, “It is critical for the growth of the business-to-business electronic commerce market over the coming years that users are provided with simple payment methods. Through our integration with Infobank’s InTrade product suite, we have taken another step towards opening up the benefits of electronic commerce via the Visa Purchasing network to thousands of businesses throughout the world.”
Graham Sadd, CEO of Infobank said, “We are delighted to have completed this integration and to have secured this endorsement from Visa. Our ability to offer to Infobank InTrade’s corporate customers and suppliers the world’s leading international payment processing service adds significant additional value to our offering and further enhances the international capabilities of the InTrade product suite. This further develops our strategy of integrating with best of breed vendors in all aspects of business to business e-commerce to optimise the efficiency of our customers’ supply chains on an international basis.”
In a separate development, Infobank announced that a leading UK supplier of industrial and commercial supplies and equipment has signed an agreement with BT to use BT SupplyCentre. It is anticipated that the customer will go live on SupplyCentre in the next few weeks.
BT SupplyCentre offers a trading system that removes current inefficiencies from the supply chain and adds new benefits. Using secure Internet technology, both buyers and suppliers operate within an on-screen trading environment accessing current availability and prices on-screen, in real time. In addition, suppliers can electronically update product information, special offers and up-to-the-minute availability, 24 hours a day, seven days a week, for customers anywhere in the world.
As the world’s best way to pay, Visa is the leading payment brand and the largest consumer payment system worldwide with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa has more than 70 smart card programs in 33 countries and on the Internet, with 23 million Visa chip cards, including over 8 million Visa Cash cards. Visa is pioneering SET Secure Electronic Transaction(TM) programs to enable and advance Internet commerce.
There are more than 800 million Visa, Interlink, PLUS and Visa Cash cards, which generate nearly US$1.4 trillion in annual volume. Visa-branded cards are accepted at more than 16 million worldwide locations, including at over 480,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [http://www.visa.com].
Founded in 1994, Infobank International Holdings PLC is a world leader in the provision of electronic procurement and delivery systems. InTrade(TM) is the company’s flagship e-Commerce suite of integrated e-Procurement software. InTrade is the only business-to-business e-Procurement system that provides multiple currencies, Euro, multiple languages, multiple suppliers and multiple location support across the whole spectrum of the supply chain, from the largest corporate purchasers to the smallest suppliers. Infobank InTrade is based on standard browser technology and is developed on open, non-proprietary technology, which provides organizations with a future-proofed solution for both buyers and suppliers worldwide. The InTrade product suite consists of InTrade e-Hub(TM), InTrade Purchaser and InTrade Supplier.
Motorola will unveil this morning the next generation of contactless smart cards for mass transit that will set new transaction speed records and security levels. The ‘M-Smart Mercury MM4000L’ cards also offers a 70% increase in reading distance, superior multi-application capabilities and ISO standards compatibility. The ‘M-Smart Mercury MM4000L’ is the first contactless smart card with built-in DES processor, the first to achieve sub-100 millisecond transactions with triple-DES, the first ASIC card to achieve ISO 14443B compatibility, and the first ASIC card to provide options for eight different memory configurations. In addition to the DES security and eight different memory configurations, the card has other features that position it to support multiple applications. The multi-application and security features create the possibility for new uses of the card, such as the secure re-loading of transit fares over the Internet. Or, transit operators can start with the ‘M-Smart Mercury’ card for automated fare collection as a first step, and then recruit partners to add applications to the system.Details
PayPal.com, the first free service that allows anyone to accept credit card payments, announced that it is the number one way to pay for goods online at Internet auctions. Already more than 29,000 items on eBay are for sale with PayPal.com, about twice the number of its closest competitor.
“PayPal.com has become the ‘category killer’ in online auction payments,” said Peter Thiel, Chief Executive Officer of PayPal.com. “Thousands of auction participants use PayPal to buy and sell safely — demonstrating the ease and popularity of our service, and explaining our dominance in this exploding market.”
PayPal’s rapid growth on online auction sites has primarily occurred since the company announced its auction payments solution in early January. Within three weeks, PayPal has overtaken auction payment and escrow companies that have tried to gain a foothold in the space for many months.
According to Forrester Research, the online consumer-to-consumer auction industry will reach $19 billion by 2003.
According to users, PayPal’s success derives from being safe, easy, fast and free:
Safe — PayPal’s security includes strong encryption designed by Dr. Martin Hellman, the inventor of public key encryption, and Stanford professor Dan Boneh. PayPal confirms the email address of all users, and requires street address confirmation for all banking transfers.
Easy — After completing a one-page signup, PayPal users complete transactions by simply entering a dollar amount and the recipient’s email address.
Fast — Within seconds, the recipient will receive the money via email (“You’ve got cash!”). Sellers get paid instantly so buyers can get their goods faster. Because PayPal lets sellers accept credit card payments from anyone, they don’t have to waste time depositing checks and waiting for them to clear.
Free — Best of all, there is no charge to the buyer or seller for this service.
How PayPal Works
PayPal.com is the first free online payment service that enables anyone with a credit card to instantly and securely pay anyone with an email address. Unlike alternative payment systems that require users to know bank account numbers of payment recipients, PayPal.com users only need an email address to send a payment.
After registering for the free service at [http://www.paypal.com], consumers simply enter the recipient’s email address and a dollar amount. The money is debited from the payor’s credit card and credited to the recipient. The transaction takes seconds to complete. If the recipient is not yet a PayPal user, he or she simply registers on the PayPal.com site after receiving an email notification, and is immediately credited with the money. Funds may be withdrawn at any time by direct deposit to a bank account or a personal check from PayPal.com. Users also may opt to email the money on to others.
PayPal.com, based in Palo Alto, Calif., was founded in December 1998, and is owned by Confinity, Inc. It is the first web-based payment service that enables consumers to email money via their PC or PDA. PayPal.com’s state-of-the-art security and cutting-edge web-server technology, which were developed under the guidance of encryption pioneers at Stanford University, make it one of the most secure electronic payment systems to date. PayPal.com is working with leading platform and financial service companies to deploy PayPal.com worldwide. Its key strategic and financial backers include idealab Capital Partners, Goldman Sachs, Nokia, Deutsche Bank, and Bill Melton, founder of Verifone.
CT-based MemberWorks reported yesterday net income of $3 million on revenues of $78.9 million for the fourth quarter. The firm provides membership services to credit card issuers and also distributes its services via online channels. The company says its membership base has increased to 5.8 million members.Details
Los Angeles-based Retail Store Systems announced the implementation of its systems in three major supermarket chains in the Hawaii market. The three projects involved the ‘IBM 4694’ POS system and the ‘IBM Supermarket Application’. Combined, the three chains have approximately 70 stores and over 400 POS terminals. The implementations also included a radio frequency solution for wireless POS terminals and hand held terminals from Symbol Technologies. The three Hawaii chains include the ABC Stores, Daiei and KTA Supermarkets.Details
Diversinet, Giesecke & Devrient, Mitsui, Redknee, Schlumberger, TC TrustCenter, Texas Instruments and Thyron announced this morning at the Cannes GSM World Congress that they are joining Radicchio, the global initiative to unleash the potential of wireless e-commerce. The new members join 28 other firms supporting the initiative, including VISA and MasterCard. Launched in Sept. with Sonera SmartTrust, Gemplus and EDS as initial members and with the support of Ericsson, Radicchio was created to enable a dynamic global market for secure wireless e-commerce.Details
One of the fastest growing transactional Web sites is not a commercial e-tailer, it is the United States Mint. Last April the U.S. Mint launched secure online sales. Since then sales have soared, racking up $26.5 million in fourth quarter sales. The Mint’s average online credit card transaction was nearly $90. Products related to the Mint’s 50 State Quarters program have been especially popular with online consumers, and have driven single daily sales past the $2 million mark during peak periods. The Mint says on Oct. 18 it sold all 7 million Connecticut state quarters in four-and half-hours. When the Mint launched the Massachusetts state quarter on Jan. 11, the Web site was hit by 20,000 simultaneous visitors the first hour. Online sales for the new Gold Dollar, which went on sale last week, have also been brisk.Details
MasterCard announced, at the Cannes GSM World Congress, that it has signed a joint development and marketing agreement with Finland’s Sonera SmartTrust to enable secure wireless technology for cards issued by MasterCard and Europay members. Sonera SmartTrust’s secure digital signature, 1024 bit RSA algorithm for encryption and ‘Public Key Infrastructure’ technology, will provide the high level of security that is critical for using mobile phones in a variety of payment applications such as purchasing goods and services, bill payment and ticketing over a mobile device. As the global penetration of mobile phones continues to grow even faster than the adoption of PCs or the Internet, MasterCard says the market is there and ready. MasterCard also said implementing a major payment brand in a mobile device is going to be the starting point for rapid growth of global wireless secure e-commerce.Details