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Table of Contents

Lead Story

Virtual money, tangible profits

News

Industry Update

Interac seeks for-profit status

GO-Tag a show-stopper

Certify payment pros on security?

Beltway interest drives interchange book sales

CharlieCard gets charley horse

Features

AgenTalkSM:
Karen Lazer

Prepaid acceptance online

David Fish
Mercator Advisory Group

Views

Banking on mobile

Patti Murphy
The Takoma Group

Education

Street SmartsSM:
Stay the course

Jason Felts
Advanced Merchant Services

The residual-buying game

Lane Gordon
MerchantPortfolios.com

Old is new in POS fashion

Dale S. Laszig
DSL Direct LLC

Body language

Vicki M. Daughdrill
Small Business Resources LLC

A day in the life of a successful MLS

Jason Felts
Advanced Merchant Services

A day in the life of a successful MLS

Jason Felts
Advanced Merchant Services

Company Profile

SignaPay

Affinity Solutions

New Products

Cash advance reaches new vertical

ProMAC Electronic Payment Advance
Companies: Professional Merchant Advance Capital L

Inspiration

Information, please

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

September 22, 2008  •  Issue 08:09:02

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GO-Tag a show-stopper

F irst Data Corp., the world's largest payment processor, unveiled its new GO-Tag stickers at the Democratic National Convention in August 2008. The limited edition GO-Tag contactless payment pin was distributed to 5,000 delegates and media representatives and used to purchase up to $10 in refreshments at participating Pepsi Center concession stands.

"We're still compiling the data to understand how many were actually redeemed, but we had everyone from delegates to the head of the Pepsi Center to reporters and camera crews coming back time and again," said Ginger Sayor, Vice President, Mobile Commerce Solutions at First Data. "It was all about sharing information about contactless technology and making sure that everyone has a positive experience at the point of sale."

Small and versatile

GO-Tags are stickers that have pea-sized computer chips with radio frequency identification transmitters inside. The stickers can be affixed to cell phones, MP3 players or iPods, key fobs, identification badges, or even backpacks.

Once stickers or pins are in place, the electronic device or personal belonging is transformed into a GO-Tag form factor - contactless payment devices that First Data believes are suited for making purchases at businesses that have high volume, low dollar amount transactions, such as grocery stores, gas stations, convenience stores, discount retailers, event concessions and vending machines.

Payments are made by waving the GO-Tag sticker or pin in front of a contactless reader at the POS.

According to Sayor, transactions take about one second, use First Data's existing gift card processing infrastructure and are processed on the same networks the company uses for other types of transactions. She said First Data is looking at GO-Tag as a stepping stone to enable payments via mobile handsets.

"From a marketing perspective, our merchants and financial institutions are very excited about the prospects of mobility and of the potential for GO-Tag as a bridging technology," Sayor said. "And having stickers placed on mobile handsets creates a mobile brand impression each and every time that handset is viewed by the owner, or is visible to other consumers."

Expansive and adaptable

First Data has its own proprietary FD-20 contactless reader, but the company can assess merchants' existing contactless readers and determine whether they can be certified to support GO-Tag acceptance at the POS.

"First Data also has a strategic partnership with ViVOtech, as well as several different pre-certified terminals that will support GO-Tags right out the door," Sayor said.

"We want to help our clients transition from thinking of payments devices residing only in a wallet or a purse and get better acquainted with payment platforms outside of the usual mode."

Sayor sees "early adopters" of GO-Tag form factors as "busy professionals on the go who value the convenience and the ability to tap and pay. We see this form factor expanding well beyond the young Gen Yers to include a broader swath of the population."

As soon as merchants and financial institutions "establish the infrastructure, they're not only setting themselves up for contactless acceptance today, but for mobile commerce of the future," Sayor said.

"We are in active conversations with our prepaid retailers across a wide spectrum of categories, from quick service restaurants to large scale retailers to pharmacies and more, so hopefully the places you often visit today will soon be enabled to accept GO-Tag solutions anywhere and everywhere," she added.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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