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The Green SheetGreen Sheet

The Green Sheet Online Edition

June 13, 2011 • Issue 11:06:01

Industry Update

The Green Sheet, Inc.NEWS

Mobile wallet venture debuts in U.K.

Barclaycard, the payment arm of Barclays Global Retail Banking division, teamed with telecommunications provider Everything Everywhere to launch the Quick Tap service, called the U.K.'s first contactless mobile payment system. The mobile wallet solution features free money transfers for consumers, as well as a 100 British pound loading capacity per account, Barclaycard said.

The mobile wallet venture relies on Samsung Tocco Quick Tap handset technology embedded with MasterCard Worldwide PayPass contactless payment software in the phone's SIM card - technology that Barclaycard and Everything Everywhere agreed offers the best protection of sensitive consumer data. The new solution builds on existing contactless payment technology already found in over 11 million credit and debit cards issued by Barclaycard and Barclays.

Regarding the launch, Gerry McQuade, Chief Development Officer at Everything Everywhere, said, "This is the beginning of a revolution in how we pay for things. It's a cultural shift that is as important as the launch of the personal credit card or ATMs." McQuade added that Barclaycard and Orange customers will be the first in the U.K. to use mobile phones to make payments wherever contactless payments are accepted. More than 40,000 retailers in the U.K. are equipped with near field communication (NFC) contactless readers, Barclaycard said.

Everything Everywhere is a partnership between the French-owned telecom operator Orange and Germany's T-Mobile, a subsidiary of Deutsche Telekom AG. Barclaycard and Orange formed a strategic alliance in 2009 to explore the possibilities of NFC in the banking industry.

Hacker tutorials proliferate online

A study released by the international marketing firm CPPGroup PLC (CPP) revealed how quick and easy it is to steal data online. As part of the study, volunteers with limited technological competence followed instructions from a free 14-minute online tutorial. They then downloaded hacking software that allowed them to hack into email accounts, social network profiles and online shopping accounts belonging to other volunteers.

Participants were taught a hacking technique known as "man-in-the-middle," through which hackers intercept communications and detour usernames and passwords to their computers. CPP estimated that over 20,000 videos exist on YouTube that provide hacking tips and directions on how to compromise social media profiles, email, smart phones and PayPal Inc. accounts.

"The wide availability of free hacking tools is a real concern, and everyone is a target," said Firebrand Training Ltd. Chief Executive Officer Robert Chapman, who conducted the study's online tutorial. "These resources are only going to grow and become more advanced, meaning that organizations and individuals must take steps to protect themselves. It's imperative to keep anti-virus and firewall software up to date and change passwords to online accounts regularly."

CPP said that with increased usage of public Wi-Fi networks and smart phones equipped with Wi-Fi connectivity, hacker incidents will likely surge unless governments intervene to stop the proliferation of Internet hacking tutorials.

Three banks launch P2P solution

Bank of America Corp., JP Morgan Chase & Co. and Wells Fargo & Co. revealed what they termed the first bank-owned person-to-person (P2P) payment solution, called clearXchange. The service, which went live on May 25, 2011, allows customers of the three banks to send money transfers directly from checking accounts using recipients' email addresses or mobile phone numbers.

One reported advantage of the new system is that customers will not be required to disclose checking account or routing numbers when conducting money transfers, which reduces the risk of sensitive cardholder information being exposed.

"We want our customers to be able to easily send money to anyone without having to establish a new account outside their primary bank," said Wells Fargo Vice President Mike Kennedy. "All our customers need to know is the email address or mobile number of a friend or family member, and we will take care of the rest utilizing clearXchange."

The banks plan to expand the free service, which is initially available only to customers of the three respective banks, to other financial institutions and endpoints. The goal is to eventually create a money movement capability across the entire financial services industry, the banks said.

The Green Sheet, Inc.ANNOUNCEMENTS

CardWare to expand POS service center

By moving to a new POS system service facility in Kingsport, Tenn., CardWare International is expanding its capacity to service broken POS systems and devices. As part of the expansion, the company plans to hire additional factory-trained technicians to staff its QuickFix program, which provides free packaging for shipment of broken POS units to the facility for servicing.

Parking meter time extended via text message

Digital Payment Technologies unveiled the Extend-by-Phone service for the Luke II, DPT Luke and Shelby parking pay stations. Consumers who opt to pay for parking with credit cards at self-service pay stations can receive mobile phone text messages that alert them when their parking meter time is set to expire. Consumers can then send text messages to remotely top up parking meter time, DPT said.

Heartland at your service

Heartland Payment Systems Inc. launched Heartland Tip Manager, a new restaurant tip distribution management service that interfaces with Heartland's Plus One Payroll system. Tip Manager helps ensure IRS tip reporting compliance and integrates payroll data, credit card sales and credit card tip data from POS systems, according to Heartland.

Hypercom's speedy next gen network

Hypercom Corp. said its new IntelliNAC high-density, multifunction POS network access controller facilitates transaction processing for financial institutions and merchants with high-volume processing needs. The high-density digital signal processor network authenticates transactions via public key infrastructure standards required for Payment Card Industry (PCI) Data Security Standard (DSS) compliance, Hypercom noted.

Palisade launches DLP solution for SMBs

A new data loss prevention system (DLP) solution, Palisade Systems' PacketSure DLP 8.5, is designed to safeguard enterprise network protocols and protect confidential information, enabling organizations to monitor network perimeters and endpoints for data leaks. The system meets all security compliance requirements for the health care and financial services industries, Palisade Systems said.

Pronto! rebranded as Kickanotch

Pronto! Mobile, a mobile marketing technology company, changed its name to Kickanotch mobile to better reflect its core business. The company's one-stop mobile marketing program focuses on monetizing mobile advertising applications and services for radio, television and publishing companies.

The Green Sheet, Inc.PARTNERSHIPS

7-Eleven gets new service

Avangate integrated its e-commerce platform and partner-management system with PayNearMe's cash payment network to allow customers to pay cash at nearly 6,200 U.S. 7-Eleven Inc. stores for purchases of downloadable software. Avangate software packages offer anti-spyware, Blu-ray file conversion and data recovery systems. Orders placed at 7-Eleven locations are completed by the delivery of software to the customers' email accounts.

Fifth Third and NAFCU renew

Fifth Third Processing Solutions and NAFCU Services Corp., a subsidiary of the National Association of Federal Credit Unions, extended an agreement making Fifth Third the exclusive partner for NAFCU's electronic funds transfer services, which include ATM, debit and credit card processing, as well as network gateway transaction processing.

FrontStream docks with Kord

FrontStream Payments Inc.'s PCI DSS compliant gateway for electronic payment processing now links to Kord Information Systems LLC's Total Marina Package business software suite. The joint solution will enable managers of marinas, yacht clubs, city harbors and port districts to process payments online and track daily marina functions, including reservations, leases and occupancy.

ID Tech, Charge Anywhere mobilize chip and PIN

Payment hardware solutions provider ID Tech entered into a partnership with Charge Anywhere LLC, a secure mobile payment applications and gateway provider, to create a chip and PIN acceptance solution for mobile device platforms. The all-in-one product will enable EuroPay/MasterCard/Visa, magnetic stripe and PIN debit transactions.

Micros launches payment gateway

Micros Systems Inc. inked an agreement with multicurrency payment processor Planet Payment Inc. to launch the Micros Payment Gateway, a secure, integrated payment solution that targets the retail and hospitality industries. The gateway supports Micros' Opera, Simphony, 3700 and 9700 products.

Phoenix pilots Hypercom's IntelliNAC

Phoenix Managed Networks will pilot Hypercom's next generation IntelliNAC network access controller to securely transmit high-traffic, transaction-oriented payments through its global payment communications network. Phoenix expects to complete the product evaluation in summer 2011.

TeamUnify swims with Process Pink

TeamUnify integrated its business optimization software platform for swim instruction schools with the payment processing capabilities of Process Pink Payments LLC. TeamUnify reported that over 1,000 swim merchants use the management software, with the company adding 40 new swim teams monthly. The partnership allows TeamUnify users to streamline payment processing by accepting credit, debit and automated clearing house transactions.

WhiteConcierge achieves compliance with ForeScout

WhiteConcierge, a U.K.-based business-to-business lifestyle management and concierge service, selected ForeScout Technologies Inc.'s CounterACT platform to achieve and maintain PCI DSS Level 1 compliance. WhiteConcierge said it chose ForeScout Technologies to protect the information of its core customer base of financial institution executives.

Xpient adds First Data's TransArmor

Xpient Solutions integrated First Data Corp.'s TransArmor tokenization and encryption solution into its restaurant POS software. With over 93,000 terminals installed in over 25,000 restaurants, Xpient serves large brands in the food service industry, such as quick service restaurants Arby's, Denny's and Panda Express.

The Green Sheet, Inc.ACQUISITIONS

DSS acquires ExtraDev

Document Security Systems Inc. acquired private cloud computing company ExtraDev Inc. to expand its presence in the multibillion dollar cloud computing market. With the acquisition, DSS will deliver its patented AuthentiGuard DX information security technology and software as a service (SaaS) product to accounting firms, law firms, government agencies and professional clients.

The Green Sheet, Inc.Cerberus to purchase 3i Infotech unit

3i Infotech Ltd., a global information technology company, has agreed to sell its U.S.-based Global Billing and Payments unit, consisting of Regulus Group and J&B Software, to the private investment firm Cerberus Capital Management LP. Subject to regulatory approval, the unit will continue to deliver on-site, SaaS and outsourced solutions to select industry markets.

TriNovus to buy eBank Systems

Financial technology solutions provider TriNovus LLC will acquire Texas-based eBank Systems LLC, a company that provides turnkey core processing solutions to community banks. The two companies, which combined serve over 300 institutions in 36 states, plan to retain data center operations in Lubbock, Texas, and open a new processing center in Birmingham, Ala.

The Green Sheet, Inc.APPOINTMENTS

Chau joins SPVA board

The Secure POS Vendor Alliance, a nonprofit business organization dedicated to fostering data security best practices and compliance, appointed PAX Technology Ltd. President and Chief Executive Officer Andy Chau as a general member director on its board.

UBC taps Cibley for Harbortouch

United Bank Card Inc. named Jerry Cibley National Sales Trainer of its Harbortouch POS Systems Division. With over 25 years of experience in the POS industry, Cibley will be responsible for training sales partners on deployment of the company's free Harbortouch POS program.

Fisher joins FTNI

Financial Transmission Network Inc. appointed Doug Fisher to Executive Vice President of Software Solutions to oversee the company's products and services development in a variety of vertical markets. Prior to FTNI, Fisher served as Vice President of Sales for RDM Corp.

GS welcomes Goldman to advisory board

Capital Access Network Inc. President and Chief Executive Officer Glenn Goldman was appointed to The Green Sheet's Advisory Board. Recipient of Ernst and Young's 2009 Entrepreneur of the Year award for Financial Services, Metro, N.Y., Goldman brings over 25 years of consumer and commercial finance experience to the panel of industry experts.

Century Payments expands leadership team

Two industry veterans joined the executive team at Century Payments Inc.: Chris Justice as President and Tom Bannon as Chief Operating Officer. Justice previously presided over Ingenico North America and will be responsible for driving Century Payments' business expansion efforts. Bannon, formerly Group Executive at Chase Paymentech Solutions LLC, will guide Century Payments' business, technology and service operations.

Lane to lead Merchant Link

Payment gateway and data security solutions provider Merchant Link promoted Dan Lane to President and Chief Executive Officer. Lane, one of the company's founders, previously held the position of Chief Technology Officer at Merchant Link.

PCI SSC appoints Nunez VP

The PCI Security Standards Council appointed Mauro Nunez to Vice President of Operations. As a member of the executive team, Nunez will lead the creation and strategic implementation of business programs and processes for the global data security standards body.

The Green Sheet, Inc.BOTTOM LINES

  • In a Harrison Group and American Express Publishing first-quarter 2011 survey of affluent U.S. consumers, 39 percent of interviewees said they plan to redeem coupons/direct offers, up 7 percent from 2010; 38 percent plan to delay purchases until the items go on sale this year, versus 31 percent a year ago.

  • According to a BIGresearch report, special outings with fathers will be among the most popular gifts this Father's Day, with 40 percent of research respondents planning to spend an average of $46 for the occasion. Other top items on the gift-giving list include clothing, gift certificates/cards, and books or CDs.

  • New York-based Easy Analytic Software Inc. projected consumer spending on outdoor dining sets will continue to grow at a steady pace of 10 percent over the next five years. Total U.S. spending on dining sets is expected to increase from $2.9 billion in 2010 to $3.2 billion in 2015.
end of article

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