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Industry Update


Consumers Embrace Electronic Payments

The "2005/2006 Study of Consumer Payment Preferences" conducted by the American Bankers Association and Dove Consulting found that consumers are choosing electronic payments more often. Cash and checks account for 45% of consumers' monthly payments, down from 49% in 2003. Additionally, consumers make 33% of in-store purchases with debit cards. Six years ago, debit represented 21% of in-store transactions. Today, 52% of consumers use automatic payment to pay at least one bill per month, and 39% of consumers use online bill payment.

Automatic Payments Surpass Checks

Automatic payments have surpassed check writing as the dominant method for paying recurring bills, according to the "2005 MasterCard Recurring Payments Awareness, Behavior & Attitude Study." More than two thirds of U.S. households (67%) now pay some recurring bills automatically compared with 64% who write checks. Thirty-eight percent of households link payments automatically to a credit card, while 31% charge them automatically to a debit card.

Contactless Payments Studied

A new paper from the Smart Card Alliance Contactless Payments Council, "The What, Who and Why of Contactless Payments," provides an overview of market developments and explores the technology, benefits and security features of contactless payments. Download the paper free of charge at .

Internet Payment Gateway Study Released

Strategic Management Partners released a study of U.S.-based Internet payment gateways. The study reveals that business to consumer e-commerce sales continue to show strong growth.

It is estimated that retail sales volume in this sector will grow by nearly 24% over 2004, from $89 billion to $110 billion.

Expedited Bill Payments Rising

The recently released "TowerGroup 2005 Convenience/One-Time Payment Services Survey," estimates that expedited bill payment transactions (last-minute, emergency or collections payments) will total 1.7 billion items per year and represent 10% of key U.S. bill payments by 2010. TowerGroup further estimates that expedited bill payment volume in 2005 will total approximately 554 million transactions.

Gift Cards on the Rise

According to a survey from First Data Prepaid Services' ValueLink, 59% of American adults either purchased or received a gift card in the previous 12 months, up 23% from 2001. Of those who received cards, 56% spend more than the initial value of the card they received.

Sixty-one percent of respondents said they are likely to purchase a gift card in the next 12 months.


"Inc." Recognizes Fast-growing Companies

Inc. magazine selected Century Bankcard Services as one of the fastest growing private companies in the United States for 2004. The magazine recognized United Bank Card Inc. as the 19th fastest growing private company in the nation and the second fastest in the financial sector.

Innovation Awards Announced

Chase Bank USA received one of the first Smart Card Alliance Innovation Awards. The award was presented for the bank's introduction of a new contactless payment feature. The Bank of Montreal and HSBC Mexico both received Innovation Awards for their role in migration to EMV smart bankcards.

CO-OP Opens New Office

CO-OP Network opened a Sarasota, Fla. sales office that Lynn Kneebone, the Network's newly appointed Southeast Region Business Development Manager will lead. Kneebone, with more than 16 years of financial services experience, will lead the sales team in Florida, Georgia and Puerto Rico. She was most recently Regional Vice President at Certegy Inc.

EMG Opens Office

Eliot Management Group (EMG) opened its 19th branch office. The newest office is in Minneapolis. This location will continue EMG's Midwest expansion, providing Minneapolis and the surrounding area with sales, service and support for EMG's credit card and electronic payment processing services.

HPS to Expand

Heartland Payment Systems Inc. (HPS) is expanding its service center in Indiana. The new center will be located on 35 acres and will include a 120,000 square-foot facility, which will house 1,000 employees. It is scheduled for completion in the first quarter of 2007. HPS plans to hire up to 130 employees over the next 24 months.

IRN Announces New Program

IRN Payment Systems/PartnerAmerica announced a new sales program for all ISOs. The program includes a free Hypercom Corp. T7Plus credit/debit card terminal, a $100 startup bonus, plus a 60% revenue share with no minimums, restrictions or quotas.

Payment Processing Center Relocates

Payment Processing Center and NSF Check Recovery relocated. Their new address is 121 Friends Lane in Newtown, Pa.

PreCash Makes List

PreCash Inc. ranked 18th on the 2005 Deloitte Technology Fast 500, a ranking of the 500 fastest-growing technology companies in North America. PreCash grew 14,887% from 2000 - 2004. The company also ranked 26th on the Deloitte list of fastest-growing privately held companies in the United States.


Axalto Provides Contactless to KeyBank

Axalto is supplying more than 2 million MasterCard PayPass cards to KeyBank for the first contactless debit card rollout in the nation. The KeyBank MasterCard PayPass card also includes a magnetic stripe, allowing consumers to use it at any location that accepts MasterCard-branded debit cards.

EWI and United Bank Card Join Forces

EWI Holdings Inc. and United Bank Card Inc. (UBC) launched a nationwide distribution campaign offering real-time electronic prepaid payments to UBC's retailers. The alliance provides UBC's merchants with the ability to electronically process payments for a variety of prepaid products including wireless re-charge, Visa and MasterCard stored value cards and long distance calling cards.

JPMorgan Chase Selects VeriFone

JPMorgan Chase & Co. selected VeriFone to provide customer validation systems to interact with branch bank teller workstations. A pilot deployment will begin in December and run for three months. Upon successful completion, JPMorgan is expected to deploy the VeriFone solutions to approximately 11,500 teller stations in branch locations.

The Phoenix Group to Purchase Hypercom Products

The Phoenix Group agreed to purchase $8 million of Hypercom's card payment terminals and PIN pads. Under the terms of the 12-month agreement, The Phoenix Group will provide Hypercom's products to ISO and bank customers in the United States.

SPS Exclusive Processor in Puerto Rico

Secure Payment Systems (SPS) was chosen as the exclusive provider of stored value gift and loyalty card services in Puerto Rico through Worldwide Payment Services Inc., the only ISO approved to sell credit card processing services within the territory.

VeriSign and WWRE Partner

VeriSign and the Worldwide Retail Exchange (WWRE) will work together to offer POS data services to WWRE members. The agreement adds POS data services to the WWRE platform.


First Data to Acquire KMPS

First Data signed an agreement to acquire approximately 80% interest in Korea Mobile Payment Services (KMPS), a provider of value-added network services. First Data will acquire the majority shareholding in KMPS and lead the operations in the Korean market along with the KMPS management team. The acquisition is expected to close by the end of 2005.

Pipeline Data Completes Acquisition

Pipeline Data Inc. completed its acquisition of World Products Inc. d.b.a. AIRCHARGE. The AIRCHARGE product line provides a payment solution that enables merchants to perform swiped credit card and check guarantee transactions on cell phones.

VeriSign Acquires Moreover Technologies

VeriSign Inc. recently acquired Moreover Technologies, a wholesale aggregator of real-time content for Web sites, search engines and enterprise customers for approximately $30 million in cash.


IRN Adds Sales Director

IRN Payment Systems/PartnerAmerica appointed Debi Hallmark as Regional Sales Manager. Hallmark brings more than 15 years' industry experience to IRN. She held positions at NPC and Financial Alliance and owned and operated an ISO for five years.

Retriever Hires Lee

Christine Lee joined Retriever Payment Systems Inc. as Senior Vice President of Market Research and Product Development. Her most recent position was Senior Vice President of Product Management at Bank of America Merchant Services.

United Bank Card Names Executive VP

J. Brian Merena joined the United Bank Card (UBC) team as Executive Vice President, Financial Institutions. Merena comes to UBC from Moneris Solutions where he was Senior Vice President of Financial Institutions. Previously he was Senior Vice President of Sales for Diversified Acquiring Solutions.

Smart Card Alliance Announces Leadership

Greg Garback, Executive Officer, Department of Finance for the Washington Metropolitan Area Transit Authority (WMATA) in Washington, D.C., was elected chair of The Smart Card Alliance 2005 - 2006 Executive Committee. Garback has represented WMATA at Alliance meetings and events since 1999 and has served on the Board of Directors since 2002.

Hypercom Names Appointments

Hypercom appointed Thomas Liguori as Senior Vice President and Chief Financial Officer. Liguori joins Hypercom from Iomega Corp. where he served as CFO. Hypercom also appointed TK Cheung as Senior Vice President and General Manager - Hypercom Asia-Pacific. Previously associated with Hypercom, Cheung is returning to the company from a private consulting practice. Emilian Elefteratos joined Hypercom as Senior Vice President, International Sales.

Elefteratos most recently served as President and CEO of SiVault Systems. O.B. Rawls IV was promoted to Senior Vice President, North American Sales. He was President of Hypercom North America for five years. The company appointed Jonatan Schmidt to the newly created position of Chief Scientist and Technology Officer. Schmidt recently served as Chief Strategy Officer at SiVault Systems.

Asia Payment Restructures

Matt Mecke, Asia Payment Systems Inc.'s President and CEO, relinquished his positions but will continue to serve as a Director of the company and Vice Chairman of the Board. Robert Clarke was appointed CEO and Chairman of the Board, and Benny Lee was named President. Lee previously served as Vice President, Asia/Pacific for MasterCard. Bob Clarke has been a Director of the company since its inception.

Diebold Promotes Two Executives

Thomas W. Swidarski was named President and Chief Operating Officer of Diebold Inc., and Kevin J. Krakora was appointed Vice President and CFO. Swidarski most recently held the position of Senior Vice President, financial self-service group. Prior to this appointment, Krakora served as Vice President, acting Chief Financial Officer and Corporate Controller for Diebold.

Wills Joins CrossCheck Inc.

Thomas Wills joined CrossCheck Inc. in the new position of Vice President of Risk Management. Before joining CrossCheck, Wills worked in senior management positions and as a consultant for several payment and e-commerce companies including Visa, Hewlett-Packard, CommerceNet and Globe ID.

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