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The Green SheetGreen Sheet

The Green Sheet Online Edition

September 10, 2012 • Issue 12:09:01

Industry Update

The Green Sheet, Inc.NEWS

    Visa readies encryption for POS terminals

    Visa Inc. will begin integrating its new point-to point-encryption (P2PE) service, Visa Merchant Data Secure, into payment terminals and critical systems across the payment processing industry in early 2013, the company reported Aug. 21, 2012. Visa said the service will enable merchants and acquirers to add P2PE to their systems with minimal impact.

    Visa Merchant Data Secure employs the same encryption standard and key management used to encrypt PINs at the POS. The solution enables encryption and decryption in multiple zones, giving merchants and acquirers flexibility in how they deploy encryption in their own systems.

    Visa said its new encryption technology is compatible with the Europay/MasterCard/Visa (EMV) technology standard the company is requiring processors to support by April 2013. P2PE technology will provide an added layer of protection against data breaches as the industry moves to the mass adoption of EMV chip-based cards and terminals, the company said.

    Visa company spokesman Steve Burke said Visa Merchant Data Secure will be offered through acquirers. Pricing plans are still being finalized. At this point, Visa is not expected to offer incentives for adopting its P2PE compliance program. Burke said the card company is planning to have the P2PE service certified by the PCI Security Standards Council by the time it is released in 2013.

    Payment processor leads Inc. 500/5000

    Miami-based Unified Payments LLC has cause for celebration as the top company on the Inc. 500/5000 ranking of the nation's fastest-growing private companies for 2012. Rankings were determined based on percentage of revenue growth from 2008 to 2011. In securing the top position, the payment processor achieved three-year sales growth of 23,646 percent and generated $59.5 million in revenue during 2011.

    "To be recognized as the fastest growing private company in America is overwhelming," said Oleg Firer, Executive Chairman of Unified Payments. "This tribute would not have been possible without the hard work and dedication of our talented team at Unified Payments, our business partners, and our merchants."

    More than 50 payments industry companies in the financial services industry category placed in the top 5,000; 10 earned a spot in the top 500, where minimum growth of 762 percent was necessary to qualify.

    The next payment company in the rankings was Bluefin Payment Systems, formerly Capital Payments LLC, which placed sixth, with $55.6 million in 2011 revenue and 11,675.7 percent growth. "We are thrilled with the top 10 placement of our company on the Inc. 500/5000 in our very first year of application," said John Perry, President and Chief Executive Officer of Bluefin.

    Following are other merchant acquiring businesses in the 2012 Inc. 500, listed by ranking: Merchant Services Inc. (18), Complete Merchant Solutions (19), Century Payments (87), Transcendent One Inc. (105), Repay-Realtime Electronic Payments (330), TMG Financial Services (340), Allied Wallet Ltd. (369) and Braintree Payment Solutions LLC (415).

    McDonald's going mobile in France

    Global quick service restaurant chain McDonald's Corp. is testing mobile payment technology in its locations in France. Payment technology company PayPal Inc. and payment terminal manufacturer VeriFone Inc. reported McDonald's is testing their payment systems in its French franchises.

    VeriFone's Point Group is providing its Paybox Services to process transactions through McDonald's GoMcDo pre-order service mobile application. Customers can use their mobile phones to place orders through the app prior to visiting store locations. At the restaurant they can complete the transaction at an unattended device, where they receive a printed ticket for food pickup. McDonald's confirmed it was testing PayPal mobile payments in France following the demonstration of a broader PayPal payments service during a franchisee convention in Orlando, Fla., earlier this year.

    New virus attacks mobile phones

    Mobile security company TrustGo Mobile Inc. warned it has discovered "a new and extraordinarily aggressive virus" in China's largest Google Inc. Android marketplace, GFan. The virus, named Trojan!SMSZombie.A, gives hackers remote control over the victims' short message service, mobile-phone-based payments system, allowing criminals to secretly authorize payments from the victim's phone. TrustGo Mobile said the virus poses a "significant threat" and that self-protection mechanisms make it difficult to remove from mobile operating systems. The company estimates more than 500,000 mobile phones have been infected with the virus.

The Green Sheet, Inc.ANNOUNCEMENTS

    ACI updates commerce server

    International payment processor ACI Worldwide Inc. released Retail Commerce Server 5.0, the newest version of its solution for acquiring, authenticating, switching and authorizing merchant transactions across multiple channels. Targeted to U.S. and Mexican markets, the framework integrates with existing and emerging mobile wallet applications, the company said.

    Apriva ACEs customer support

    Mobile communication and payment services provider Apriva LLC launched Apriva Customer Education, a web-based, self-help and customer-support portal. ACE will share knowledge about payment terminals, network security and software, and how new technologies will impact Apriva's wireless payment solutions. Real-time assistance via live chat sessions is also available.

    EMV commercial card at Fifth Third

    Fifth Third Bank released an EMV-compliant chip card for business customers in the United States. The bank reported the new card will allow business clients traveling abroad to authorize international transactions more efficiently while improving the security of those transactions. Additionally, the new card contains a mag stripe for payment acceptance at terminals that are not enabled to read chips.

    Intrix offers remote invoicing

    Integrated payment processing solutions and services provider Intrix Technology Inc. released Invoice Creator, a payment gateway module that permits merchants to create and manage invoices online. Merchants can create merchant profiles, payment profiles and invoice templates for billing their customers electronically via email. The "Pay Now" function allows customers to remit credit card or automated clearinghouse payments.

    Merchant Warehouse moves Genius

    Merchant Warehouse continues its momentum with Genius, a customer engagement platform designed to aggregate and integrate emerging transaction technologies, payment types and consumer programs. The software is currently being preloaded into VeriFone's MX 915 terminal. Data is managed and accessed in the cloud. Genius is expected to be available for widespread distribution by January 2013.

    MCR receives technology award

    My Clear Reports, a payment technology service provider that facilitates monetization of merchant portfolios for ISOs, acquirers and processors, was recognized as a 2012 Technology Innovation Award finalist in the Midwest Acquirers Association's Shark Tank competition.

    MCR offers a virtual online business center with payment solutions, services and tools to help merchants manage and grow their businesses.

    payvia joins ETA mobile committee

    Mobile and online payment company payvia Inc. joined the Electronic Transactions Association's Mobile Payments Committee. The ETA committee was formed in August 2012 to develop policy and business strategies for the advancement of mobile payments globally.

    Revel Touch receives funding

    E-commerce technology provider Revel Touch Inc. secured $10 million in venture capital financing from a group led by Foundation Capital and Lightspeed Venture Partners. The funding will be used to build the company's retail cloud platform for tablet devices and smart phones.

    USA Technologies adds mobile, web services

    USA Technologies Inc., a wireless noncash transactions network provider, unveiled ePortMobile. The mobile payment solution will connect merchants to USAT's secure ePort Connect service platform. In other news, USAT introduced QuickConnect, a web service for software developers and equipment manufacturers to interface with ePort Connect.

The Green Sheet, Inc.PARTNERSHIPS

    Alternet takes Utiba global

    Alternet Systems Inc., an investment holding company focused on cyber security and mobile financial services markets, expanded its partnership with mobile financial services solutions provider Utiba Mobility Inc. to extend Utiba's software-as-a-service platform to financial institutions, mobile network operators and payment service providers globally

    Adyen, Fnbox team in Latin America

    Hosted payment solutions provider Adyen and Internet business developer Fnbox Ventures Inc. teamed in Brazil, Europe and the United States. Adyen will host payment solutions for Fnbox as Fnbox expands its Internet companies, Cuponica.com, Recarga.com and Tarjetastelefonicas.com, internationally.

    Bluepoint, Advance Fraud Solutions partner

    Processing and content management solutions provider Bluepoint Solutions Inc. and software security provider Advanced Fraud Solutions LLC integrated Bluepoint's ImagePoint Teller with the AFS TrueChecks solution to automate identification of counterfeit checks.

    Boku, Optus mobile partners

    Australian broadband and telecommunications provider Optus Group, a subsidiary of Singapore Telecommunications Ltd., and mobile payment solution provider Boku Inc. inked a deal to offer Boku's direct-to-bill mobile operator billing service as a payment option for online merchants in Australia.

    Cubic selected by Chicago bus system

    Cubic Transportation Systems Inc. won approval from the Chicago Transit Authority to provide the CTA's Open Standards Fare System to suburban bus operator Pace Suburban Bus. The deal will allow transit customers to make contactless payments on the suburban bus line and brings Cubic's contract total with CTA to $508.9 million.

    ID Tech adds First Data encryption

    First Data Corp. will provide its TransArmor data encryption and tokenization technology to ID Tech for integration with the POS equipment manufacturer's SecureMag swipe readers.

    MasterCard, Everything Everywhere partner

    U.K. mobile telecommunications company Everything Everywhere Ltd. signed an exclusive five-year partnership with MasterCard Worldwide to develop mobile and digital payment solutions for the company's 27 million U.K. customers, including co-branded solutions for person-to-person money transfers, digital payments, loyalty rewards and prepaid.

    Everything Everywhere operates under the brand names Orange and T-Mobile.

    ProPay connects with Constant Contact

    Payment solutions provider ProPay Inc. and customer engagement marketing firm Constant Contact Inc. are collaborating on EventSpot from Constant Contact, an event management product to help small businesses and nonprofit organizations promote and host events. ProPay's technology will enable online mobile credit card payments through EventSpot.

    TSYS signs SpareBank 1

    Norwegian banking group SpareBank 1 Gruppen AS, an association of regional banks, licensed Total System Services Inc.'s PRIME 4 card management solution. SpareBank will utilize PRIME 4 for issuing and processing MasterCard and Visa retail, credit, prepaid and contactless payment cards to serve the evolving needs of its Norwegian consumers.

    Virtual Piggy broadens with Payvision

    Virtual Piggy Inc. entered into a strategic partnership with e-commerce payment provider Payvision. Through Payvision's international acquiring network, Virtual Piggy will have an opportunity to expand its parent-controlled e-commerce platform into the global marketplace, the company said.

The Green Sheet, Inc.ACQUISITIONS

    Braintree acquires Venmo

    Payment gateway operator Braintree Payment Solutions LLC acquired mobile peer-to-peer payment and social application startup Venmo Inc. for a reported $26.2 million. Venmo will continue to operate independently as a wholly owned subsidiary.

    Futura reacquires processing division

    Loyalty solutions provider Futura Loyalty Group Inc. exercised an option to repurchase the assets of the processing division it sold to three individuals in December 2010 for the same price at which the assets were sold, $8 million.

    FIS sells division to Lightyear

    Private equity firm Lightyear Capital LLC completed purchase of payment technology provider FIS's Healthcare Solutions business. Renamed Alegeus Technologies, the company will continue to focus on benefits administration and payment processing for health-care accounts.

    FrontStream acquires FirstGiving

    Payment and donor solutions provider FrontStream Payments Inc. acquired nonprofit solutions provider FirstGiving Inc. FirstGiving's peer-to-peer fundraising platform raises money for 501(c)(3) organizations through web-based fundraising pages that leverage network support of events, campaigns and causes.

The Green Sheet, Inc.APPOINTMENTS

    FTS names Bernicker CFO

    ISO and payment processor Financial Transaction Services LLC appointed Chuck Bernicker Chief Financial Officer. Bernicker served as an Executive Director with Heartland Payment Systems Inc. before joining FTS, where he will be responsible for finance and accounting initiatives including merger and acquisitions analysis.

    Moss moves up at CCS

    Adam Moss, who has been associated with Charge Card Systems since 2003, first as an independent contractor and then as the company's Vice President Sales, National Sales Manager, was promoted to Chief Operating Officer.

    He will continue to manage CCS' day-to-day sales and marketing efforts in addition to overseeing the company's growth strategies for continued success.

    Redmond joins ClickPay

    Electronic payments solutions provider ClickPay Services Inc. hired John Redmond to be its new Sales Director. Redmond joins ClickPay from real estate software developer Workspeed Management, a division of MRI Software LLC, where he was Director of Business Development.

    Fiserv appoints Schmeltzer SVP

    Fiserv Inc., a technology provider to the financial services industry, appointed Ginger Schmeltzer Senior Vice President of Emerging Payments, Digital Payment Solutions, a new company position. Schmeltzer comes to Fiserv from SunTrust Bank Inc. where she was Senior Vice President of Digital Channel Management. At Fiserv she will facilitate new payment services delivery.

    Schmidt on board at PivotLink

    Jeff Schmidt was hired by business intelligence software-as-a-solution provider PivotLink Corp. as its Chief Revenue Officer. Schmidt comes to PivotLink from IBM where he was Vice President of Worldwide Sales at IBM's marketing analytics company Coremetrics. At PivotLink he will oversee the company's sales and services organizations.

    CO-OP promotes Scheuerlein

    CO-OP Financial Services promoted Jackie Scheuerlein to Vice President, Relationship Management. She will be responsible for directing CO-OP's relationship management team and for guiding initiatives that impact retention, sales and client satisfaction.

The Green Sheet, Inc.BOTTOM LINES

  • According to the AAA and IHS Global Insight AAA Labor Day 2012 Travel Forecast, about 33 million holiday travelers were expected to travel at least 50 miles from home - 85 percent by automobile, 8 percent by air and 7 percent by other forms of transportation.

  • Research and Markets' Musical Instruments Stores report projected the U.S. musical instrument stores industry of approximately 3,500 stores will generate $5 billion in combined annual revenue in 2012.

  • The Global Industry Analysts Inc. Outdoor Appliances and Power Tools: A Global Strategic Business Report predicted the global market for outdoor appliances and power tools will reach 110 million units by 2017 - led by outdoor grills and power tool sales
end of article

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