Mobile Payment Industry News: 02/19/10

Friday, February 19, 2010

HomeATM Headline News through February 19th

Online Banking: Security or Convenience?

I remember when I was a kid in the late 60s when my parents hauled me down to the local savings and loan at the market to open my very own savings account. I still remember the feel of the green cloth cover on the 5 x 7 booklet that the smiling banker slid across the desk to me. My passbook told me everything I needed to know; I didn’t have to log in and it always told me my meager balance–without batteries, keyboard or glowing display. read more »

Privacy, Security & Convenience on a Collision Course

Consumer protect yourself. That’s the big takeaway from a new report by Javelin Strategies that was supported by the Better Business Bureau found that the number of identity fraud victims in the United States has jumped by 12 percent to 11.1 million adults – the highest increase to-date since the survey started in 2003 – while the total overall fraud amount increased by 12.5 percent to $54 billion. read more »

Nokia trials its Nokia Money mobile payment service in India ...

By Petrony MasterCard Launches MoneySend Mobile Service with Obopay · Malaysians to try Visa contactless payments on their Nokia devices · Obopay allows parents to add money to their children's MasterCard

E-commerce accounted for 7.7% of total retail spending in Q4

A new report from web measurement firm comScore Inc. finds that online purchases accounted for 7.7% of total retail spending in Q4, up from 6.9% in Q3 and relatively flat compared with 7.6% in the same period in 2008.

Worldwide m-commerce sales to hit $119 billion by 2015, new research says

InternetRetailer.com M-commerce is growing solidy in Europe, too, and is expected to outpace the US—which grew by 203% from 2008 to 2009—by the end of 2010, the firm adds.

Is Google Gunning for E-Commerce Giants Amazon, EBay?

eWeek Miguel Helft wrote: People close to Google said Ms. Tilenius would oversee Google Checkout, the company's online payments system, and other e-commerce

Visa to Test a System that Brings Payments to Phones

American Banker | Feb 16 Visa's plan to add mobile phone payments capabilities to handsets that are available now could provide a shot in the arm for contactless payment.

MasterCard Says Debit Growth Isn't at Credit's Expense

American Banker | Feb 12 MasterCard Inc.'s credit card transactions are not being cannibalized by the growth in debit card use, according to Chris McWilton, its president of U.S. markets.

Laptop Encryption Chips: Dissolved, Needled, Prodded and Hacked

Deep inside millions of computers is a digital Fort Knox, a special chip with the locks to highly guarded secrets, including classified government reports and confidential business plans. Now a former U.S. Army computer security specialist has devised a way to break those locks. The attack can force heavily secured computers to spill documents that likely were presumed to be safe. http://www.technewsworld.com/story/69335.html

BARCLAYCARD UNVEILS MOBILE PHONE PAYMENT TERMINAL

Barclaycard has unveiled a system that turns smart phones into chip and PIN card payment terminals at the Mobile World Congress in Barcelona. More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21091

ASIA DRIVES RAPID M-BANKING UPTAKE - ABI RESEARCH

The number of people around the world using mobile banking services is doubling every year and will reach 250 million subscribers by 2015, according to ABI Research. More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21098

Internet fraud is biggest credit card threat

CompareAndSave.com Figures released by Financial Fraud Action UK last October show that while card fraud losses fell in the first half of 2009, online banking fraud increased ...

Google's new commerce boss: 10 lessons

CNNMoney.com (blog) This means she'll be in charge of Google Checkout, the online payments system that rivals eBay's PayPal. With all the new devices coming out for consumers, ...

Mobile Buying Booms in US, Banking in India

PC World Mobile commerce grew far faster in the US than worldwide last year, vaulting from US$396 million in 2008 to an estimated $1.2 billion in 2009, analyst Mark

O'Brien: Goodbye PC, hello smartphone

The era of the PC's dominance is officially over. We have crossed over into the age of mobile computing. This transition has been building momentum for a while. Some might argue that the iPhone was the dawn of this era. Others might say it was really the rise of the BlackBerry. Or maybe even Android, Google's mobile operating system. Good cases could be made that any one of these marked the start of the mobile era. Read article »

Tablets, smartbooks aim to fill PC-phone gap

BARCELONA, Spain — If you've got a car and a bicycle, do you need a motorcycle too? Wireless carriers are betting that you do. They're making a big push this year for the motorcycles of the gadget world: devices that are bigger than a phone but smaller than a laptop. Read article »

Mobile Banking Subscriber Numbers Doubling Every Year

New forecasts indicate that in 2015 about 244 million people worldwide will carry out financial transactions with their banks using their mobile phones. While 66 million are projcted to be in North America, it isn't the market that is moving fastest to mobile banking: that crown goes to the Asia-Pacific region. Read more

POS Shipments Plunge For Department Stores, Bars, While Inching Up For QSR, Warehouse Chains

Last year was an interesting one for POS shipments. Department stores purchased 24 percent fewer systems than the prior year and bar restaurants bought 19 percent fewer, according to a new report from IHL. Those were the biggest segment drops, while the only two segments to increase at all—and even then, only at 2 percent—were quick-service restaurants and warehouse club chains. But the economic hardships of last year may have shined a tiny ray of light on some bargain-hunting retailers at the expense of Big Blue. IHL President Greg Buzek said second quarter POS shipments last year for IBM plunged more than 40 percent worldwide, and a good chunk of that was a flood of barely used, ludicrously discounted POS units from chains that never made it to 2010. Read more.

Facebook Now Takes PayPal

Washington Post Today comes news that will make it even easier to buy Facebook Credits: you'll be able to buy them with PayPal.The new partnership actually encompasses a

Lawsuit could affect Bill Me Later's numbers

Baltimore Business Journal 6, claims Timonium-based Bill Me Later skirts California consumer protection ... “If the lawsuit is successful, Bill Me Later may be required to change its

US Cybersecurity Hypothetically Pathetic

Earlier this week, Cyber ShockWave, a simulated cyberattack on America, once again showed that the U.S.'s cybersecurity is not up to the task of protecting the country's infrastructure. Under the hypothetical scenario cooked up by Cyber ShockWave's planners, the attack was launched through smartphones, which are becoming increasingly plausible as a potential threat. http://www.technewsworld.com/story/69365.html

Quebec can't ignore online gambling: Bachand

Montreal Gazette The minister was reacting to opposition from public health officials in Quebec's 18 regions who object to Loto-Québec's plans to enter online gambling

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Intercash Discusses Innovative Prepaid Options and Partnerships

Global payment provider Intercash has launched a new card program that is set to revolutionize the prepaid industry promising no setup fees and no minimum card order. In addition to expanding their company and reaching a new audience with their prepaid products, they have also announced new strategic partnerships.

Montreal, Feb. 19, 2010 -- Intercash Europe is a global payment provider specializing in the prepaid industry. They provide branded prepaid MasterCard® cards and electronic payment systems. They are quickly becoming leaders in the industry due to their game-changing prepaid product line including their Intercash LITE program.

“Up till now, if a company wanted to issue a prepaid MasterCard® to their affiliates or clients, they were committed to a minimum order which was usually high with expensive setup fees. With Intercash LITE, we give merchants, affiliate managers and basically any company that’s in a position to issue payments the revolutionary opportunity to issue cards instantly without carrying an inventory and zero setup fees. We are currently the only company in the prepaid industry offering this service.” said Patrick Seguev, CEO of Intercash. This product allows companies to issue cards at a rate that suits their company’s growth at the lowest cost in the industry. For established companies that are ready to issue a larger volume of cards up front, the Intercash PRO option provides a firm option with no setup fees and volume discounts.

Seguev states that with the growth of the industry, they have had the opportunity to partner up with some major companies. He says “We have had the opportunity to form partnerships with many of the largest companies in the industry such as Everest, Sega, Income Access, Europartners and many more.” Seguev goes on to state that the prepaid MasterCard® is a mainstream product and Intercash is bringing it to the gaming industry. “In an industry where payments have high overhead costs stemming from check processing and EFT charges, our solution allows our partners to issue payments instantly and for a significantly lower financial commitment than ever before.”

In discussing their partnerships, Seguev announces “Additionally, we are excited to now be integrated within the Playtech software system. They are one of the largest companies in the gaming industry and we are proud to be partnered with them.” He states that within the Playtech system, users could automatically request a card with the click of a button. “We have worked hard to establish these relationships and are very proud to be able to bring this level of service to the industry.”

“We firmly believe that the future of player and affiliate payments is prepaid cards. We are working hard to maintain the most cost effective and business efficient solution available. Our goal is to provide this industry with solutions that reach every level of commerce in an efficient and cost effective manner, and with our new product line, we have achieved this objective.”

Please visit Intercash at http://www.intercash.com .

Source: Company press release. .

TwitPay Sold for $100k

The Atlanta Biz Journal is reporting that an investor group, led by Acculynk CEO, Ashish Bahl has purchased Twitpay for $100k.

An investor group led by payments industry veteran Ashish Bahl hopes to transform social media phenomenon Twitter into an online payment system. The investors have acquired Atlanta-based social payments startup Twitpay Inc. and focused it on helping charities raise dollars — via Twitter.

Read More

Percentage of Retail Sales Transacted Online Continues to Grow

Online Transaction Sales Continue To Grow Despite Sluggish Global Economy

Javelin Study Reveals That Percentage Of Retail Sales Transacted Online Also Continues To Rise

San Francisco, CA, February 17, 2009 – Despite the sluggishness of the global economy during the past two years, U.S. online transactions grew by 11 percent in 2009. At the same time, the share of total retail sales represented by online transactions continued to rise, reaching 5.5 percent in 2009. Javelin’s latest report pinpoints the opportunities and threats.

These were two of the key findings in the Online Retail Payments Forecast 2010 – 2014 report issued today by Javelin Strategy & Research. The report evaluates actual and forecasted changes in the online payment market as well as the payment mix from 2008 to 2014. The report also identifies the drivers of market change and contains forecasts for total online payment volumes and market share. Other aspects covered by the report include a breakdown of the payment volume and market share for credit cards (network and private label), debit cards, alternative payments, and prepaid/gift cards.

"As Americans purchase more online, payment habits are changing," said James Van Dyke, President and Founder. "While credit cards remain the payment method of choice, many new payment alternatives - and even more traditional media such as debit, prepaid, and gift cards - are moving into the mainstream, demanding changes by consumers, merchants and banks."

Key Report Findings

Mirroring trends in the economy, total retail purchases declined in 2009, but the dollar value of e-commerce sales climbed 11 percent—from $185 billion to $205 billion—despite the weak economy.

The use of major credit cards for online purchases continued to decline in 2009, but credit cards remained strongest in the vital categories of purchase volume and per-item transaction value.

Debit-card use continued its online growth as the faltering economy, rising unemployment, and tight credit market motivated consumers to persist in their shift to pay-now instruments.

Prepaid cards, gift cards, and alternative payments are projected to have the highest rates of compound annual growth for e-commerce purchases through 2014.

Security is the main driver for consumers using alternative payment methods, yet many banks and technology providers misunderstand how security features affect consumer behavior and actual safety.

"We expect a loosening of credit over the next five years accompanied by a halt in the declining use of credit cards and then followed by a slow resurgence in 2011 and beyond," said Beth Robertson, Director of Payments Research, and primary author of the report. "The credit market is not likely to recover sufficiently until 2011, which will enable online purchase-volumes using major credit cards to exceed levels achieved in 2008."

About Javelin Strategy & Research

Javelin provides superior direction on key facts and forces that materially determine the success of customer-facing financial services, payments and security initiatives. Our advantages are rigorous process, independent position, and expert people. For more information about this or other Javelin reports, please visit www.javelinstrategy.com/research or contact Elizabeth Travers at

(925) 225-9100

ext. 31 or etravers@javelinstrategy.com.

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Visa Cal CEO Resigns

Haaretz.com reports that Israel Credit Cards-Cal (Visa Cal)) CEO, Boaz Chechk has resigned in a midst of controversy.

Only a week before the company was scheduled to release its 2009 financial report, Boaz Chechik, the CEO of Israel Credit Cards - Cal, better known as Visa Cal, resigned yesterday. Chechik has been CEO since September 2003.

His resignation was not a surprise, as Visa Cal has been involved in a number of problematic affairs over the past few months, including receiving a $10 million fine from Mastercard - which ICC Cal is appealing - and demands from the Bank of Israel for changes in the firm's procedures. Visa international also fined ICC Cal 9 million euros last November, for problems with its clearing transactions for health and nutritional supplements, among other products. In January, ICC Cal announced it would stop clearing transactions for pornographic sites.

Mastercard's complaints were related to ICC Cal's alleged clearing services for Internet gambling sites, which it is accused of hiding by using false transaction code numbers.

In addition, Israel Discount Bank, which owns 72% of Visa Cal, is conducting a thorough audit of the company's books...

Continue Reading

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ProPay''s Data Security Summit 2010 - PIN Debit News Blog Readers, Take $50 Off Registration

Last year, both myself and HomeATM CEO Ken Mages attended and enjoyed ProPay's Data Security Summit. Ironically, HomeATM was listed as the first eCommerce PCI 2.0 Certified PED while we listened to Bob Russo, GM of the PCI Security Standards Council speak at the podium.

PIN Debit News Blog readers who wish to attend this years event can save $50 off the $199 registration. Enter the promo code: U120. It's an informative and enjoyable summit and this year's speakers feature not only Bob Russo, but Garnter's distinguished analyst, Avivah Litan. Also speaking at the event will be prominent card security expert, Chris Mark, Founder of the Society of Secure Payment Professionals.

ProPay is excited to host its 3rd Data Security Summit, March 9-10, 2010 at the fabulous Canyons Resort in Park City, Utah. The Summit is designed to help educate companies on industry best practices and risks associated with the handling of sensitive payment data. If you transmit, process or store this sensitive payment data you are a target for hackers and data thieves intent on stealing this information and ruining your company, your brand, and your reputation.

Event Summary

Date:	March 9-10, 2010 (March 9 & 10 – Summit dates; March 11 – Ski Day—discount passes available for $35.00)
Location:	The Canyons Resort, Park City, Utah Dress: Business Casual Weather: Temperatures range from 49°F to 22°F
Cost:	$199; Editor's Note: $149 for PIN Debit Payments Blog Readers. Enter Code U120 when registering. For Lodging & Reservations (reference ProPay Security Summit): 1-888-CANYONS (1-888-226-9667)
	*Event Drawings – One more great reason to attend the ProPay Data Security Summit:** 2 Full-Day Ski Passes, 1 Utah’s Own Gift Basket, 1 Weekend Stay (3 day, 2 night) at The Canyons, 1 Vacation package for 2 (4 days, 3 nights anywhere Delta flies in the lower 48 states, Marriott property) Click here for Event Drawing Rules

Featured Speakers

This year’s speaker lineup is an all-star cast representing many facets of the payment industry including:

Avivah Litan, Gartner Research Distinguished Gartner Analyst	Bob Russo, PCI Security Standards Council General Manager
Chris Mark, CPISM/A, CISSP, CIPP Recognized expert in payment card security	Fred Laing, UMACHA President & Chairman of the Internet Council
Tia Ilori, Visa Compliance Program Manager	Matt Sarrel, Sarrel Group Executive Director & Writer, CISSP
John Bartholomew, SecurityMetrics Vice President of Sales	Veronica Flanagan, Wells Fargo Vice President of Payment Network Compliance
David Ellis, SecurityMetrics Director of Forensic Investigations	Jenn Munson, Ancestry.com Payments & Fraud Prevention Manager, Ancestry.com Direct Response Forum Board Of Directors
	Other Speakers TBD

Topics Addressed

The speakers at this year’s Summit will address the following:

-Enterprise Threatening Risks

-Increase Your Company’s Odds

-Strategies to Secure the Payment System

-PCI Security Standards

-Payment Data Security: It’s Not Just Credit Cards Anymore

-Data Breach… The Long-Term Negative Impact on Shareholder Value

-Lessons learned: How online Credit Card compromise is perpetrated

To register, click on the button below. For more information call (888) 227-9856 or email marketing@propay.com.

* MUST BE PRESENT TO WIN. PURCHASE WILL NOT INCREASE CHANCES OF WINNING. VOID WHERE PROHIBITED. Eligible attendees to the March, 2010 ProPay Security Summit may be entered into the Giveaway. Winners will be determined in a drawing conducted during the Security Summit on March 9 or 10, 2010. For official rules, prize disclosures and odds, go to: www.propaysummit.com/giveaway. Acceptance of prize signifies that you have read and understood the Official Rules and agree to abide by them. Sponsor: ProPay, Inc., 3400 No. Ashton Blvd., Ste. 200, Lehi, UT 84096.

Chip and PIN Flaw to be Investigated by EMVCo

ZDNet is reporting that "the body that oversees the technology behind chip-based payment cards is to investigate chip-and-PIN security, following claims that the protocol has been broken."

Chip-and-PIN flaw to be investigated by industry body Tom Espiner ZDNet UK

The specification body, EMVCo, said it will analyze a paper by researchers from Cambridge University, who demonstrated an attack with a valid payment card that did not require a valid PIN to be entered to complete a transaction.

EMVCo, owned by American Express, JCB, MasterCard and Visa, said those debit- and credit-card payment companies will also scrutinize the paper.

"EMVCo will conduct its own analysis and draw its own conclusions," said the organisation on Wednesday. "The payment systems will do the same."

Last week researchers from Cambridge University said they had found a fundamental flaw in EMV, the protocol behind chip-and-PIN payments. The flaw had allowed them to build a device that modified and intercepted communications between a card and a point-of-sale terminal, and fool the terminal into accepting that a PIN verification had succeeded.

MasterCard confirmed that it would be working with the other card-payment providers to review security around chip-and-PIN, but said this was part of an ongoing process.

"The EMV standard is under constant review by MasterCard and many other major industry players to make sure it evolves to meet emerging product needs," said MasterCard. "These efforts include a frequent and regular review of security to make sure the latest, practical mechanisms are used."

Professor Ross Anderson of Cambridge University, who led the chip-and-PIN research, said there would be no easy fix for the protocol.

"There is much disagreement about [effective] industry measures to fix the vulnerability," said Anderson. "If you look at our blog post [publicising the vulnerability], a significant number of people who claim to be industry experts disagree."

One of the researchers' assertions in their paper, Chip and PIN is Broken, was that the consumer would bear the cost of a fraudulent card transaction if records showed a PIN had been entered into a terminal.

Continue Reading at ZDNet

2010 Identity Fraud Survey Report: Identity Fraud Continues to Rise New Accounts Fraud Drives Increase

Research and Markets: 2010 Identity Fraud Survey Report: Identity Fraud Continues to Rise New Accounts Fraud Drives Increase; Consumer Costs at an All-Time Low

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of Javelin Strategy & Research's new report "2010 Identity Fraud Survey Report: Identity Fraud Continues to Rise New Accounts Fraud Drives Increase; Consumer Costs at an All-Time Low" to their offering.

ID Fraud continued to rise in 2009, with Javelin finding there are more victims than in any period since the survey began in 2003. Driving that increase was new accounts fraud, which showed longer periods of misuse and detection and therefore more dollar losses associated with it than any other type of fraud. Meanwhile the consumer costs, the dollar amounts the victim pays on average out- of- pocket, reached an all time low. The Javelin 2010 Identity Fraud Survey Report provides a detailed, comprehensive analysis of identity fraud in the United States in order to help consumers and businesses better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of 5,000 U.S. adults, including 703 fraud victims, was surveyed via a 50- question phone interview to gain insight into this crime and the effects on its victims. This report, supported by the Better Business Bureau, is issued as a longitudinal update to the Javelin 2005, 2006, 2007, 2008, and 2009 Identity Fraud Survey reports and the FTCs 2003 report.

This survey is co- sponsored by organizations committed to educating and helping consumers and businesses reduce their risk of identity fraud including Fiserv, Inc., Intersections Inc., Wells Fargo & Company, and ITAC, the Identity Theft Assistance Center and is supported by the Better Business Bureau. Sponsors partially underwrite Javelins cost of data collection, analysis and -reporting in return for having their organization cited in the release of the study. Javelin retains complete independence of data analysis and reporting, and the report has been created solely by Javelin employees.

The categories of fraud are listed below from least to most serious:

Existing card accounts: This category includes both the account numbers and/or the actual cards for existing credit and card-linked debit accounts. Prepaid cards were added for 2007 and subsequently removed due to extremely low incidence.

Existing non-card accounts: This category includes existing checking and savings accounts, and existing loans, insurance, telephone and utilities accounts.

New accounts and other frauds: This category includes new accounts or loans for committing theft, fraud or other crimes using the victim's personal information.

Many victims experience identity fraud within more than one of these categories. In reporting the overall incidence rates of the three categories or types of accounts, the victims of crimes to more than one type of account are categorized based on the most serious (as designated by the FTC) problem reported. Thus, victims who reported that new accounts had been opened using their information and also that their existing credit cards had been misused would be placed in the new accounts and other frauds classification, not in the existing card accounts classification. This categorization is applicable only for reporting the rates of the three types of fraud.

Key Topics Covered:

Overview

Executive Summary

Major Findings

The Total Annual Fraud Amounts and Rate of Incidence Increase in 2009

More Victims Than Any Time in the Past Six Years

Consumer Costs Lower as Industry Absorbs More of the Fraud Loss

What is the Top Breached Data?

What is the Top Account Takeover Method?

How Can Consumers Lower Their Costs?

What Is the Major Cost Component of Overall Identity Fraud?

Despite Increased Attacks, Existing Credit Card Losses Drop

How Quickly do Different Types of Fraud End?

More Fraudulent New Accounts Opened

Existing Non- Card is Twice as Likely Among Friendly Fraud Victims

More Victims Take Action in 2009

Key Demographic Information

Younger Adults and Social Networking

Core Millennials and Detection Times

Small Business Owners and Their Fraud Rates

Consumer Recommendations for Prevention, Detection and Resolution of Identity Fraud

Recommendations

Recommendations to Financial Institutions

Educate the Customer

Enlist the Customer

Tighten Internal Controls

Protect Data

Recommendations to Consumers

Table of Figures

Companies Mentioned

For more information visit http://www.researchandmarkets.com/research/d7bc7b/2010_identity_frau

TxVia Signs Processing Agreement with Univision Communications for Prepaid Cards

Image representing TxVia as depicted in CrunchBase

Image via CrunchBase

TxVia Implements Platform-as-a-Service (PaaS) Delivery Model for Leading Spanish-Language Media Company Serving the Rapidly Growing Hispanic Population in the U.S.

NEW YORK--(BUSINESS WIRE)--TxVia, Inc., a pioneer in processing technology for network-based payment systems, today announced it has signed an agreement to process gift cards and general purpose reloadable cards for Univision Communications Inc. with its platform-as-a-service (PaaS) delivery model.

“We are thrilled to be working with Univision, which serves as a trusted partner to the Hispanic population in the U.S., providing information and entertainment as well as an important voice to the community,” said Jonathan A. Weiner, EVP, Product and Managed Services for TxVia. “As their programs scale and positively impact the lives of many people, we’re confident that the entry of Univision into prepaid will be considered a watershed event in financial services.”

The Univision Prepaid MasterCard Card® (Tarjeta Univision MasterCard Prepagada®), which will be available nationally in 2010, and the Univision MasterCard Gift Card® (Tarjeta de Regalo Univision MasterCard®), which is available at www.Univision.com/TarjetaDeRegalo, are issued by The Bancorp Bank pursuant to license from MasterCard International Incorporated. The Bancorp Bank; Member FDIC. MasterCard is a registered trademark of MasterCard International Incorporated.

About TxVia

TxVia offers the most advanced processing technology for network-based payment systems. Our solutions encompass fully integrated, end-to-end issuing, acquiring and network processing for a range of payment products including prepaid, debit, credit and hybrids. TxVia's solutions have been deployed extensively in prepaid, where the complexity of the product line and diversity of the value chains require highly customized processing platforms. As the only mass provider of custom solutions, we're modernizing electronic payments by offering unparalleled product and service quality, product manageability and configurability, platform performance and operations, client control, and cost savings. Our clients, which include some of the largest payments companies, realize significant scalability, reliability, time-to-market, economic, security and other benefits, overcoming the risks and product and service degradation often associated with other processing options.

PayPal is Now a Way to Pay for Facebook Ads and Facebook Credits

PALO ALTO, Calif. & SAN JOSE, Calif.--(BUSINESS WIRE)--Facebook and PayPal today announced a strategic relationship to offer PayPal in key parts of Facebook’s advertising and developer systems.

As part of the relationship, advertisers around the world will soon be able to use PayPal to pay for Facebook Ads through the company’s online advertising tool. For businesses in areas where the payment process can be difficult and expensive, the option to pay with PayPal makes it even easier for advertisers, particularly small international companies, to run campaigns on Facebook. Facebook reaches more than 400 million people, 70 percent of whom live outside the United States.

In addition, PayPal will become a payment option for Facebook Credits, which is currently being tested in a small number of games and applications. The goal of Facebook Credits is to give users a fast and easy way to buy virtual goods on Facebook, including items from the Facebook Gift Shop.

“We want to give the people who use Facebook, as well as advertisers and developers, a fast and trusted way to pay across our service,” said Dan Levy, director of payment operations, Facebook. “As our business has grown, offering local methods of payment has become increasingly important for advertisers who want to buy Facebook Ads. Teaming with PayPal, a global leader in online payments, makes this possible.”

“Put simply, PayPal’s business is payments. We make it easier for customers to send and receive money online in 24 currencies and 190 markets around the world,” said Osama Bedier, PayPal’s vice president of platform and emerging technology. “We’ve always been an important part of the developer ecosystem on Facebook, and we’re excited to expand our relationship directly with Facebook to help grow advertisers’ and developers’ businesses.”

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 81 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay (NASDAQ:EBAY) company and is made up of three leading online payment services: the PayPal global payment service, the Payflow Gateway and Bill Me Later. The company's open payment platform, PayPal X, allows developers to build innovative payment applications on multiple platforms and devices. More information about the company can be found at https://www.paypal.com.

About Facebook

Founded in February 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. Anyone can sign up for Facebook and interact with the people they know in a trusted environment. Facebook is a privately held company and is headquartered in Palo Alto, Calif.

Friday, February 19, 2010

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