Friday, November 12, 2010

iPINDebit? (Internet PIN Debit) One ISO Hopes So

Here's an interesting PaymentsSource article written by Will Hernandez which takes a look at the advantages ISO's can reap from offering iPINDebit.

Ironically, Online PIN Debit has existed since day one, and is by most standards, considered ten times more secure than it's "Offline Signature Debit" counterpart.  The exponentially more secure (and hence, the significantly lower interchange fees) which iPINDebit has to offer, have, until now, not been readily available "online."

 offers a game-changing Internet PIN Debit platform endorsed by MasterCard, Discover/PULSE, and most of the EFT Networks.  To learn more, send an email to 

By Will Hernandez

Internet PIN-debit payment technology is slowly, but steadily, gaining traction in the marketplace as several companies have introduced products intended to bring more security to online transactions.

Electronic funds transfer networks are supporting the technology with the hope their products will help them capture transactions otherwise lost to the likes of PayPal Inc. and other alternative payment methods that use the automated clearinghouse for settlement.

Merchants should be eager to accept PIN-debit transactions online to reduce transaction costs because of lower interchange rates and fewer charge-backs, say executives from companies
offering such products.

At least one ISO believes Internet PIN-debit already has helped it gain business it would have lost to a competitor.

Indeed, Internet PIN-debit’s success likely will hinge on widespread consumer and merchant adoption. The determining factor for consumers might be whether they are comfortable entering their PINs in an environment other than at the point-of-sale or at an ATM.

The ISO Advantage

In April, Acculynk launched an ISO reseller program to enable companies to sell signature- and Internet PIN-debit processing as a package and to pursue the card-not-present and Internet merchant markets strategically, says Nandan Sheth, president of Atlanta-based Acculynk.

The company’s expanded product, PaySecure Plus, includes credit and debit card processing and Internet PIN-debit transaction processing. Elavon Inc., an Atlanta-based processor, is providing card-processing services for Acculynk, says Sheth.

Dallas-based JetPay LLC is one of the few merchant services providers to publicly promote itself as a PaySecure supporter.

JetPay has offered PaySecure to merchants since September and quickly discovered the product gives the company an advantage in the marketplace, claims company Chairman Trent Voigt.

Internet PIN-debit’s allure forced one merchant to rethink a commitment it was about to make with a bigger transaction processor, Voigt says. JetPay also serves as a processor.

Potential new clients are intrigued with Internet PIN-debit’s potential because it helps merchants tap into consumers who have no other way to pay online using their debit cards, Voigt says. Prospective clients see the opportunity and then want to understand it better as they evaluate potential partnerships, he adds.

PaySecure has enabled JetPay to go back to merchants it previously failed to secure as processing partners.

“Some accounts we didn’t win because we weren’t the bigger company,” Voigt says. “Now we can go back to those accounts, ask them if they want to do [Internet] PIN-debit and process those transactions.”

The idea then is to capture that client’s entire business once their contract expires with its existing processor, Voigt says.

The Next Thing

JetPay believes its has an advantage in the marketplace because it offers what it calls “least-cost routing.” The transaction amount will determine whether the merchant online checkout process will present PaySecure as an option. “Sometimes it’s cheaper to process the transaction” as signature-debit, Voigt says.

Internet PIN-debit will not sell itself to merchants despite its potential to reduce cost, Voigt warns. The product requires some education on the ISO’s part. “[Merchants] want to believe in it,” he adds.

It also helps that merchants “are always asking what’s the next thing we need for alternative payments, and how do we save money?” he adds.

JetPay merchants using products such as Bill Me Later fail to see many approvals because many users of the service are not credit-worthy. “We figured out the people who didn’t have credit cards also don’t have credit-worthiness,” Voigt says.

Those consumers then turn to a debit card to make high-ticket purchases such as airline tickets. JetPay’s partner airlines already have experienced steady success with PaySecure. Voigt believes that is because airline ticket purchases are planned in advance, allowing consumers to save money for a trip. “That’s different than buying a TV, which is really an impulse buy,” he says.

Consumers who are fiscally responsible with little to no debt also will find Internet PIN-debit appealing, Voigt contends.

“You have a chunk of consumers that believe that you shouldn’t have debt” based on social and economic beliefs, he says. “There are consumers making six figures who don’t have credit cards because they choose not to have them.”

Editor's Note:  Online PIN Debit has existed since Day One.
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Planet Payment Reports Third Quarter 2010 Results

  • Momentum continues to build
  • Third quarter total revenue increases 32%
  • Third quarter multi-currency revenue increases 47%
LONG BEACH, N.Y.--(BUSINESS WIRE)--Planet Payment, Inc(USA: OTCQX: PLPM, UK: LSE:AIM: PPT and PPTR), a leading international payment and data processor, announced on November 9, 2010 its results for the three and nine month periods ended September 30, 2010.
“Our services help acquirers open new sales channels, merchants sell more goods and services and cardholders enjoy informed choice and transparency at the point-of-sale”
The third quarter of 2010 was another period of solid growth. Total revenue was up 32% to $15.5m (Q3‘09: $11.7m), with multi-currency revenue up 47% to $12.5m (Q3‘09: $8.5m). Gross profit for the period increased 22% to $5.0m (Q3‘09: $4.1m). Adjusted EBITDA for the quarter increased to $0.4m from $0.2m in Q3‘09. On a GAAP basis, net loss narrowed by 44% to ($0.4m) compared to the Q3‘09 loss: ($0.8m), and also narrowed by 47% sequentially over the prior quarter (Q2’10 loss ($0.7m). See Table 1 for reconciliation of net loss to Adjusted EBITDA.
For the nine month period ended September 30, 2010 (“YTD‘10”), total revenue increased 31% to $43.2m (YTD‘09: $33m), with multi-currency revenue up 51% to $34.1m (YTD‘09: $22.6m). Gross profit for the period increased 18% to $13.7m (YTD‘09: $11.6m). Adjusted EBITDA loss for the nine month period approached breakeven to ($0.04m) compared to a YTD‘09 loss of ($0.04m). On a GAAP basis, net loss narrowed by 13% to ($2.7m) compared to a YTD‘09 loss of ($3.1m). See Table 1 for reconciliation of net loss to Adjusted EBITDA.
Planet Payment’s revenue growth reflects an increase in transaction processing volumes primarily driven by increases in active merchant locations as well as improving economic conditions. The Company’s 46 banking and processing customers have continued to roll out Planet Payment’s solutions in sixteen countries as reflected by the addition of 3,800 active merchant locations since Q3’09, a 39% increase. During the third quarter of 2010, the Company began activating the merchant pipeline from newly signed acquirers in Canada, the United Arab Emirates, Philippines, Singapore, Brunei, Sri Lanka, the Maldives and South Africa, adding over 1,600 new merchant locations in these countries alone.
“Our services help acquirers open new sales channels, merchants sell more goods and services and cardholders enjoy informed choice and transparency at the point-of-sale,” commented Philip Beck, Chairman and CEO of Planet Payment Inc. “As a result of our efforts this year to roll out our innovative products to new customers and taking into account the customary fourth quarter seasonal uplift in our business, we look forward to increased revenue and gross profit, resulting in positive cash flows and adjusted EBITDA for the balance of 2010.”
During the third quarter, the Company continued to broaden and enhance its services, including:
  • Expanding debit card processing with the certification of Maestro® for the Middle East and Africa, complementing Planet Payment’s support of VISA® Debit and Interac® in Canada
  • Adding EMV support for online PIN entry for the Middle East and Africa, building on the Company’s existing support of EMV for the Asia Pacific, Canada and Europe regions
  • Signing agreements to integrate to the iPAY gateway a suite of enhanced, e-commerce, merchant fraud detection and prevention services.
Planet Payment’s momentum continues to build with a strong pipeline of new prospects for our multi-currency processing services in existing and new regions, including the Middle East, South Africa and Latin America.
On October 22, 2010, the Company raised $6.03 million, before expenses, via a placing of 4,500,000 common shares. The net proceeds of the placing will provide additional working capital to maintain and enhance the growth of the Company’s business, as well as provide a source of repayment of debt.
The Company's Third Quarter Report, including its Consolidated Condensed Financial Statements (unaudited), as of and for the three and nine months ended September 30, 2010 and 2009 and as of December 31, 2009 have been posted on the OTCQX website at and on the Company’s website at
About Planet Payment
Planet Payment’s shares trade in the United States on the OTCQX under the symbol PLPM and in the UK on AIM under the symbols PPT for unrestricted Common shares and PPTR for Reg S Common shares.
Planet Payment is a leading international payment and data processor, providing banks and their merchants with innovative solutions to accept, process and reconcile payments, anytime, anywhere and in any currency. Our customer base of more than 45 acquiring banks and processors stretches from North America, to the Middle East, to Asia Pacific, including China, Hong Kong, Macau, Taiwan, Malaysia and India.
Planet Payment is headquartered in New York and has offices in Atlanta, Beijing, Bermuda, Delaware, London, Hong Kong, Shanghai and Singapore. Visit for more information on the Company and its services. For up-to-date information follow Planet Payment on Twitter at @PlanetPayment or join Planet Payment’s page on Facebook.

Research and Markets: Person-to-Person Mobile Money Transfers: Successfully Navigating a Market in Transition

Image representing Business Wire as depicted i...Image via CrunchBase

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of Javelin Strategy & Research's new report "Person-to-Person Mobile Money Transfers: Successfully Navigating a Market in Transition" to their offering.
“Person-to-Person Mobile Money Transfers: Successfully Navigating a Market in Transition”
This report examines mobile P2P services offered by 14 vendors and FIs throughout the world. According to our consumer survey results from July 2010, the number of consumers likely or very likely to conduct a mobile P2P transfer in the upcoming 12 months stood at 8%, whereas 68% of those surveyed stated that they would likely not make a mobile P2P transfer in the next year. Despite the low number being reported by consumers, there are some bright spots in the U.S., and vendors operating internationally all report strong mobile P2P adoption in emerging markets.
The adoption overseas is being driven by the lack of banking infrastructure and lack of competing products (alternatives) in emerging markets. In the U.S., a multitude of FIs are starting to offer mobile P2P services, and if they successfully implement and market those services, they can increase consumer usage in the near term. In addition to analyzing 14 vendors and FIs, quantitative consumer data provided insight into consumers attitudes regarding mobile P2P in the U.S. The market in the U.S. is clearly in transition.
In 2010, one offering is being discontinued (from Citibank/MasterCard/Obopay), and several other vendors (CashEdge with POPmoney, Fiserv with ZashPay and Monitise Americas) and major offerings (Bank of the West, JPMorgan Chase, PNC and U.S. Bank) are launching their services. Jack Henry & Associates further announced The WayiPay, a standalone version of the iPay P2P Internet payment solution the company acquired in June 2010. Jack Henry expects to launch the service in the fourth quarter of 2010.
Primary Questions
  • Will consumers use mobile person-to-person (P2P) payments?
  • What is the value of mobile P2P transactions to various payment ecosystem players?
  • What are the key marketing strategies of mobile P2P, and which consumer segments are the most viable initial targets?
  • What mobile P2P transfer offerings are available in the marketplace?
  • What vendor models are poised for success and why?
Key Topics Covered:
  • Overview
  • Primary Questions
  • Key Findings
  • Methodology
  • Executive Summary
  • Mobile Person-to-Person Payments
  • Timeline of Key Mobile P2P Initiatives
  • U.S. Consumer Usage Analysis
  • Overview of U.S. Consumer Interest in Mobile P2P Payments
  • Primary Reason for Using Mobile P2P Payments
  • Frequency and Value of Users Mobile P2P Transfers
  • Mobile P2P Market Sizing
  • Barriers to U.S. Adoption of Mobile P2P Payments
  • U.S. Consumers Concerns
  • List of Figures
  • Companies Mentioned


Research and Markets
Laura Wood, Senior Manager,
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
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Banks and Consumer Groups Argue Over Debit Regulations

Consumer Groups, Banks Battle to Influence Fed’s Debit Rules
Nov. 11, 2010
Recent meetings between Federal Reserve staff members, consumer groups, and payments executives show just how divergent the views are as the Fed prepares the first-ever regulations on U.S. payment card interchange. Consumer groups are pushing for “at-par” debit card interchange—essentially, no interchange. A big regional bank, however, said the Fed “will threaten the future of the payment system in the U.S.” if it doesn’t take the appropriate costs of offering debit cards into account.  The groups also discussed issuers’ practices of steering cardholders to use signature debit cards (which carry higher interchange than PIN-debit cards), the cost to consumers of recovering fraud losses, and the ability of lower interchange to spur cost controls.   
Read More
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SUBWAY® to Accept Mobile Phone Payments

A SUBWAY in a Walmart Location.Image via Wikipedia

SUBWAY® to Use FaceCash Mobile Payments

Nov. 11, 2010 /PRNewswire/ -- Doctor's Associates Inc., the parent company of SUBWAY®, the largest single-brand restaurant chain in the world, and Think Computer Corporation announced today that FaceCash will now be accepted at certain SUBWAY® locations in California. FaceCash is a mobile payment system that allows consumers to use their cell phones to make purchases at the point of sale.

When signing up at, consumers pre-fund their FaceCash accounts by transferring money from traditional checking or savings accounts. They can then debit their FaceCash balance by making purchases at participating merchant stores. The FaceCash platform gives users unprecedented access to purchase information, and also facilitates free funds transfers between consumers. The free FaceCash application, which also consolidates consumer loyalty program cards, is now available for iPhone, Android and BlackBerry phones. Other phones can also access FaceCash through a mobile web browser.
With a flat rate of 1.5% per transaction, merchants utilizing FaceCash achieve savings of 50% or more relative to traditional credit and debit card processing fees. There are no monthly fees or other hidden fees. In order to use FaceCash, merchants simply need a computer (with internet access) and an optional barcode scanner, which are available from Think at a discount.
FaceCash gets its name from its unique security process. During a purchase, the consumer's face appears on the merchant's register to verify identity. The first time a buyer makes a purchase using FaceCash, the merchant matches the photograph provided during the sign up process to the consumer's driver's license or passport. A number of other security measures are built in.
Aaron Greenspan, Think's CEO, stated, "We are thrilled to be working with SUBWAY®. The corporate cafeteria near our office only accepts cash, so I'm looking forward to buying SUBWAY®  with FaceCash, instead!"
Diana Kazarian of SUBWAY®  was also pleased to learn that the rollout had begun. "We're looking forward to finding out how this could benefit our customer base and our business."
A map of locations where FaceCash is accepted is available on-line at
About SUBWAY® Restaurants
The SUBWAY® restaurant chain is the world's largest submarine sandwich franchise, with more than 33,000 locations in 91 countries.
Headquartered in Milford, Connecticut, and with regional offices in AmsterdamBeirutBrisbaneMiami, and Singapore, the SUBWAY® restaurant chain was co-founded by Fred DeLuca and Dr. Peter Buck in 1965. Their partnership marked the beginning of a remarkable journey – one that makes it possible for thousands of individuals to build and succeed in their own business. The SUBWAY® chain has been named the number one global franchise opportunity by Entrepreneur magazine in its 2010 Franchise 500 rankings for the 17th time in 23 years.
For more information about the SUBWAY® restaurant chain, visit SUBWAY®  is a registered trademark of Doctor's Associates Inc.
About Think
Think, based in Palo Alto, California, launched the FaceCash mobile payment system in April, 2010.  More information about the company is available at
SOURCE Think Computer Corporation
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Sberbank to Issue American Express Cards in Russia

American Express logoImage via Wikipedia

NOVEMBER 12, 2010

By Ivan Anderzhanov
Sberbank has agreed a deal with American Express whereby Russia's biggest lender will become an AmEX card-issuing partner.  By early 2011, Sberbank will begin to issue premium and super-premium cards, which will be issued in Russian Roubles, Euros and US Dollars and feature both Sberbank's logo and American Express' Blue Box logo on the front of the cards.
Pascal Guignard, vice president and general manager at American Express Global Network Services., said: "The new card-issuing partnership with Sberbank will give us the opportunity to further extend American Express' presence in the market and provide high-quality, premium products to an even greater group of customers in Russia.''
As part of the deal, Sberbank will issue the American Express-branded cards and be responsible for the customer service, marketing, credit and risk controls on these products.
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