Tuesday, May 3, 2011

Confirmed: Google Working on NFC Retail Services with Ingenico

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The point-of-sale device manufacturer Ingenico has confirmed that it is working with Google on the development of near-field communication services for retailers. The company CEO Philippe Lazare told the French news agency AFP that it was working with Google to help deliver coupons that could be delivered to customers while they're shopping in retail stores. "Google wants a system where, when you enter a shop or supermarket, for example, you receive a special offer on your phone," explains Lazare. At checkout, customers would be able to touch their phones to the Ingenico POS terminal, which would be able to read the coupon and adjust the bill accordingly.

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Fifth Third Processing Solutions Expands Suite of Security Solutions with Voltage

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Deploying Encryption Solution for Secure Terminal Processing

CINCINNATISCOTTSDALE, Ariz. and CUPERTINO, Calif.May 3, 2011 /PRNewswire/ -- Fifth Third Processing Solutions, a premier full-service payment solutions provider, is pleased to announce the launch of support for Hypercom Corporation's payment software with Voltage Security's point-to-point data encryption. These powerful counter top terminal solutions help retailers and restaurants reduce the risk of data breaches by encrypting card data in the terminal and rendering it unusable until it is received and processed by Fifth Third Processing Solutions.
Available immediately, this next layer of Fifth Third Processing Solutions' growing suite of data security products uses strong data encryption technologies to protect card data during processing. Fifth Third Processing Solutions has Class A certified Hypercom's SPOS32 payment software with Voltage Security's point-to-point data encryption to help U.S. retailers and restaurants using Hypercom's Optimum T4205, T4210 and T4220 countertop terminals securely process payments.
Secure point-to-point encryption, sometimes termed end-to-end encryption, helps clients address the complex and changing needs of security best practices and guidelines.  Long known as a payments advocate for the merchant community, Fifth Third Processing Solutions is working with Voltage Security, Inc., a global leader in enterprise and payment card data protection inside and outside the cloud, and Hypercom Corporation, a global leader in payment solutions, to offer solutions focused on protecting sensitive cardholder information.
"Providing secure payment solutions to our merchant customers to help them protect card data is a key initiative for our company," said Bill Weingart, Chief Product Officer, Fifth Third Processing Solutions.  "The Hypercom Optimum terminal platform with Voltage SecureData support demonstrates our commitment to offering our clients increased security. With partners like Hypercom and Voltage Security, we are able to adapt to new security solutions and deliver encrypted processing to our valued customers."
"With Fifth Third Processing Solutions, we are bringing state-of-the-art payment systems with added security to a broad spectrum of countertop merchants throughout the United States," said David Cronin, President and Managing Director, North America, Hypercom Corporation.
"Voltage is pleased to be working with Fifth Third Processing Solutions and Hypercom to provide point-to-point security solutions to merchants," said Mark Bower, Vice President of Product Management for Voltage Security. "Merchants of all sizes can be impacted by a card data breach. Now, for the protection of sensitive cardholder data used in payment transactions, merchants can use Hypercom terminals through Fifth Third Processing Solutions' market leading processing platforms to support a safe and powerful solution for protecting card data."
About Hypercom Corporation
Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally. To learn more visit www.hypercom.com.
About Voltage Security, Inc.
Voltage Security, Inc., an enterprise security company, is an encryption innovator and global leader in enterprise data protection for data residing both inside and outside the cloud. Voltage solutions provide cloud-scale encryption and simplified key management for protecting sensitive information wherever it is stored and processed, on-premise or in private and public clouds. Voltage solutions reduce the risks associated with theft of sensitive and private information, support privacy guidelines including PCI DSS, HITECH, U.S. Data Breach Disclosure laws and European Data Privacy directives, and uniquely provide security of data coupled with unmatched usability which results in significantly lowered total cost of ownership. To learn more about Voltage visitwww.voltage.com.
Hypercom and Optimum and Design are registered trademarks of Hypercom Corporation.
About Fifth Third Processing Solutions
Fifth Third Processing Solutions, LLC delivers innovative payment transaction processing and acceptance solutions to create and support complex payment strategies for merchants, businesses, and financial institutions around the world. A pioneer in card payment acceptance in the early 1970s, Fifth Third Processing Solutions is headquartered in Cincinnati, Ohio, and is a joint venture with Advent International and Fifth Third Bank, a subsidiary of Fifth Third Bancorp (FITB).
As a premier full service payment solutions provider, the Company provides servicing solutions and product engineering for financial institutions' and retailers' credit card, debit card, merchant and private label programs, processing over 11.4 billion ATM and point of sale transactions and over $378 billion in debit and credit card sales volume annually. Its subsidiary, NPC, is the largest provider of payment processing services exclusively focused on the small-to-medium merchant processing market.  The Company supports over 406,000 merchant and financial institution locations and 12,000 ATMs in 46 states and 8 countries. According to the Nilson Report (March 2011), the Company is the largest PIN Debit U.S. acquirer and third largest U.S. merchant transaction acquirer ranked by general purpose transaction volume. Learn more at www.FTPSLLC.com
Pete Schuddekopf
Hypercom Corporation
Julie McHenry
Communications Insight, LLC
Lynn M. Rhoads, Senior Vice President
Communications Director
SOURCE Fifth Third Processing Solutions
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FIS Announces Q1 2011 Results

FIS Announces First Quarter Results

  • Revenue of $1.38 billion, up 12.0%; organic growth of 6.2%
  • EPS of $0.45, as adjusted, up 9.8%
  • Free cash flow of $189 million
JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS (NYSE:FIS), the world’s largest global provider dedicated to banking and payments technologies, today reported financial results for the quarter ended March 31, 2011.
“Excellent growth in Financial Solutions and International Solutions drove the strong top-line performance”
GAAP Results
Revenue from continuing operations increased 12.0% to $1.38 billion in the first quarter of 2011, compared to $1.24 billion in the first quarter of 2010. GAAP net earnings from continuing operations attributable to common stockholders totaled $96.1 million, or $0.31 per diluted share, in the first quarter of 2011, compared to $97.1 million, or $0.26 per diluted share, in the prior year quarter.
Non-GAAP Results
Adjusted revenue growth was 11.2% in the first quarter of 2011, and organic revenue growth was 6.2%. EBITDA increased 0.9% to $368.3 million in the first quarter of 2011, compared to adjusted EBITDA of $365.1 million in the first quarter of 2010. EBITDA margin was 26.6% in the first quarter of 2011, compared to 29.4%, as adjusted, in the prior year quarter. The current year quarter reflects strong growth in lower margin businesses, including professional services and Capco, as well as approximately $7.0 million of integration and severance costs that are included in the current period. In addition, the Company incurred a loss of approximately $13.0 million associated with the Sunrise prepaid card platform in the first quarter of 2011, as described later in this press release.
Adjusted net earnings from continuing operations totaled $137.7 million, or $0.45 per diluted share, compared to $156.5 million, or $0.41 per diluted share, in the first quarter of 2010. Integration and severance costs and the Sunrise prepaid loss reduced first quarter 2011 adjusted earnings by approximately $0.01 and $0.03 per share, respectively. Free cash flow totaled $188.6 million compared to free cash flow of $241.3 million, as adjusted, in the 2010 quarter. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
“Excellent growth in Financial Solutions and International Solutions drove the strong top-line performance,” stated Frank Martire, president and chief executive officer of FIS. “We are very pleased with the progress we are making in driving higher organic revenue growth, which we believe will drive sustainable earnings growth and value for our shareholders.”
Acquisitions and Discontinued Operations
On December 2, 2010, FIS completed the acquisition of Capco. Operating results from Capco are reported prospectively from the date of acquisition and are included in the Financial Solutions and International Solutions segments, based on geography, while non-allocated overhead is included in the Corporate segment.
During the third quarter of 2010, FIS determined that it will pursue strategic alternatives for its item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes Ltda., and intensify its focus on expanding its card processing operation in the region. The results of Fidelity National Participacoes Ltda. are reported as discontinued operations for all periods presented, (revenues and expenses from discontinued operations are collapsed and classified as a separate line item on the income statement).
Segment Information
The following is a discussion of first quarter results by segment:
  • Financial Solutions:
First quarter 2011 Financial Solutions revenue increased 13.6% to $503.7 million compared to $443.5 million in the 2010 quarter, driven by growth in professional services, increased processing revenues, including new client implementations, and the addition of Capco’s North American operations. Financial Solutions revenue increased 7.1% on an organic basis. Financial Solutions EBITDA increased 4.6% to $195.1 million compared to $186.5 million in the first quarter of 2010. The EBITDA margin was 38.7% compared to 42.1% in the prior year quarter, reflecting continuing strong growth in professional services and the addition of Capco.
  • Payment Solutions:
First quarter 2011 Payment Solutions revenue totaled $614.5 million compared to $618.8 million in the 2010 quarter as growth in electronic payment services, card production and output solutions was offset by lower item processing and retail check activity. Additionally, consolidation of our merchant processing platforms resulted in utilization of the net method to account for certain merchant interchange fees. Payment Solutions revenue increased 4.5%, excluding the check related businesses, which totaled $113.0 million and $122.2 million in the first quarters of 2011 and 2010, respectively, and the $16.6 million unfavorable impact of the gross-to-net accounting mentioned above. Payment Solutions EBITDA was $219.3 million compared to $229.5 million in the 2010 quarter, and the EBITDA margin was 35.7% compared to 37.1% in the prior year quarter, reflecting growth in lower margin businesses, reduced license revenue, and approximately $4.0 million of integration and severance costs that are included in the current period.
  • International Solutions:
International Solutions revenue increased 48.6% to $268.1 million compared to $180.4 million in the 2010 quarter. The growth was driven by increased payment volumes in Brazil, growth in professional services, higher license revenue and the addition of Capco’s international operations. International Solutions revenue increased 27.5% on an organic basis. International Solutions EBITDA increased 44.2% to $48.9 million compared to $33.9 million in the first quarter of 2010. The EBITDA margin was 18.2% compared to 18.8% in the prior year quarter, reflecting a higher proportion of professional services, including Capco, in the current year.
  • Corporate/Other:
Corporate expense totaled $95.0 million in the first quarter 2011, compared to $84.8 million in the prior year quarter. Included in the current year quarter is a loss of approximately $13.0 million related to the Sunrise prepaid card platform, as described below.
Net interest expense totaled $68.0 million in the first quarter of 2011 compared to $28.2 million in the 2010 quarter. The increase was due primarily to the recapitalization completed in the third quarter of 2010.
The effective tax rate in the first quarter of 2011 was 35% compared to 37% in the first quarter of 2010.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $384.1 million as of March 31, 2011. Debt outstanding declined to approximately $5.0 billion as of March 31, 2011. Capital expenditures totaled $71.6 million in the first quarter of 2011, compared to $58.2 million in capital expenditures in the prior year quarter.
Free cash flow totaled $188.6 million in the first quarter of 2011 compared to adjusted free cash flow of $241.3 million in the 2010 quarter. The decline in free cash flow was primarily due to the timing of interest payments associated with the debt incurred as part of the August 2010 leveraged recapitalization and annual incentive payments.
Sunrise Loss
FIS incurred a loss of approximately $13.0 million, or $0.03 per share, during the first quarter of 2011 related to unauthorized activities involving one client and 22 prepaid card accounts on its Sunrise platform. The Company has identified that 7,170 prepaid accounts may have been at risk and that three individual cardholders’ non-public information may have been disclosed as a result of the unauthorized activities. FIS worked with the impacted clients to take appropriate action, including blocking and reissuing cards for the affected accounts. The Company has taken steps to further enhance security and continues to work with Federal law enforcement officials on this matter.
2011 Outlook
FIS reiterated its full year outlook for 2011 as follows:
  • Revenue growth of 9% to 11% (4% to 6% organic revenue growth);
  • EBITDA growth of 7% to 9%, reflecting a higher proportion of professional services revenue;
  • Adjusted net earnings per share from continuing operations of $2.24 to $2.34;
  • Free cash flow is expected to approximate adjusted net earnings in 2011.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss first quarter 2011 results on Tuesday, May 3, 2011 beginning at 8:30 a.m. Eastern standard time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fisglobal.com and click on “News and Events.” A webcast replay will be available on FIS’ Investor Relations website, and a telephone replay will be available through May 17, 2011, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 197171. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fisglobal.com.

ViVOtech Wins 2011 Monkey Award for NFC Project

ViVOtech Wins NFC Award For Bank of Kuwait, Zain, VISA Project

5 Out of 10 Contactless Monkey Award Winners Use ViVOtech Technology
Smart Card Alliance 2011
CHICAGO--(BUSINESS WIRE)--ViVOtech, the near field communication (NFC) software and systems company, today announced it has won the 2011 Contactless Monkey Award in the category of On High Street, for its NFC project with the National Bank of Kuwait and Kuwait's Mobile Telecommunications Co., known as Zain, using VISA EMV compliant payment cards, coupons and promotions.
“The payments, loyalty, marketing and merchandising industry has just begun a total transformation as mobile NFC technology moves from test projects to full scale commercial rollout this year and next”
ViVOtech’s award winning project for the National Bank of Kuwait introduced a unique prepaid card distribution application that allows consumers to tap their NFC enabled phone on an NFC enabled smart poster in a mall to download a prepaid VISA card in just a minute or two, said Mohammed Khan, ViVOtech founder and president. This patent pending NFC application utilizing ViVOtech software enables issuers to widely distribute prepaid, gift, and loyalty cards to consumers’ NFC mobile phones from any public place.
In addition, using ViVOtech technology Zapa Technology won the High Throughput Beverage Award for its project with Insomnia Coffee in Ireland, U.K.-based EAT won the High Throughput Food and the VISA Pay/Wave Awards; and Business Leader of the Year was given to Will Judge, head of future ticketing at Transport for London.
“The payments, loyalty, marketing and merchandising industry has just begun a total transformation as mobile NFC technology moves from test projects to full scale commercial rollout this year and next,” said Khan. “The application we introduced in Kuwait was just the latest in a history of NFC firsts at ViVOtech.”
The Contactless Monkey Awards are presented to companies, organizations and retailers that have done the most to embrace and implement contactless technology into their day-to-day operating practices. The competition was open to all implemented contactless applications within the relevant sectors, regardless of geographic region or size of corporation.
The On High Street award is given to the company or retailer that has done the most to incorporate contactless into their service and payment structure and had the most success from doing so. Other finalists for the On High Street award included Clinton Cards in the U.K.; an NFC trial in Sitges, Spain by La Caixa and Telefonica O2; and an NFC loyalty solution for Allied Irish Bank by Zapa Technology.
The fourth edition of the Contactless Monkey Award, organized annually by Contactless Intelligence, saw a record number of entries, underlining the growing significance of NFC payment, loyalty, marketing and merchandizing applications.
About ViVOtech
ViVOtech, the near field communication (NFC) software and systems company, enables rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Merchant, payment, mobile, web and advertising companies use ViVOtech solutions to enhance customer experience and grow their business. ViVOtech’s NFC software and systems are the broadest, most tested and deployed worldwide. Founded in 2001, Silicon Valley-based ViVOtech provides the key building blocks of the NFC ecosystem: smart applications, wallet and provisioning software, and point of sale systems. ViVOtech’s investors include Alloy Ventures, Citigroup, Draper Fisher Jurveston, First Data Corporation, Motorola Ventures, Nokia Growth Partners, NCR, NXP and Sprint. Join the NFC revolution at http://www.ViVOtech.com.


for ViVOtech
Kristin Miller, +1 719 634 8292

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MasterCard Reports Q1 2011 Results...Profit Rises

MasterCard Incorporated Reports First-Quarter 2011 Financial Results

  • First-quarter net income of $562 million, or $4.29 per diluted share
  • First-quarter net revenue increase of 14.8%, to $1.5 billion
  • First-quarter gross dollar volume up 12.8% and purchase volume up 12.9%
  • First-quarter operating income increase of 19.4%
PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced financial results for the first quarter 2011. The company reported net income of $562 million, up 23.6%, and earnings per diluted share of $4.29, up 24.0%, in each case versus the year-ago period.
Net revenue for the first quarter of 2011 was $1.5 billion, a 14.8% increase versus the same period in 2010. Foreign currency fluctuations had essentially no impact on net revenue growth which was driven by the impact of the following:
  • A 12.8% increase in gross dollar volume on a local currency basis, to $728 billion;
  • An increase in cross-border volumes of 18.5%; and
  • Pricing changes of approximately 5 percentage points.
These factors were partially offset by an increase in rebates and incentives primarily due to new and renewed agreements and increased volumes.
Worldwide purchase volume during the quarter was up 12.9% on a local currency basis versus the first quarter of 2010, to $545 billion. The number of processed transactions increased 11.1% compared to the same period in 2010, to 6.0 billion. As of March 31, 2011, the company’s customers had issued 1.7 billion MasterCard and Maestro-branded cards.
“We had a strong start to 2011 despite the hardships experienced by many consumers and businesses due to natural disasters and political turmoil in several markets. Our solid volume and processed transaction growth helped to drive a double-digit revenue increase. This growth is reflective of the strong fundamentals and globality of our business,” said Ajay Banga, MasterCard president and chief executive officer.
“We continue to launch new products, enter new geographies and open new acceptance channels. We launched Travelex Cash Passport in Brazil and South Africa and recently completed our acquisition of the Card Program Management assets of Travelex, allowing us to further build our global prepaid presence. During the quarter, we also signed a long-term debit renewal with Poste Italiane, one of our largest debit issuers in Europe.”
Total operating expenses increased 9.4%, to $665 million, during the first quarter of 2011 compared to the same period in 2010. Foreign currency fluctuations had a minimal impact on overall operating expenses. The increase in total operating expenses was driven by:
  • A 7.9% increase in general and administrative expenses, primarily due to increased investments in support of strategic growth initiatives and the inclusion of DataCash’s expenses.
  • A 12.1% increase in advertising and marketing, to $129 million, primarily due to customer-specific initiatives and sponsorships.
In the first quarter of 2011, operating income increased 19.4% over the year-ago period and the company delivered an operating margin of 55.7%.
MasterCard reported no other income or expense in the first quarter of 2011 versus other expense of $5 million in the first quarter of 2010. The change was driven by a decrease in interest expense due to lower interest accretion related to a litigation settlement.
MasterCard's effective tax rate was 32.8% in the first quarter of 2011, versus a rate of 34.6% in the comparable period in 2010. The decrease was primarily due to a more favorable geographic mix of earnings.
Through quarter end, the company had repurchased approximately 2.6 million shares of class A common stock at a cost of $654 million under the $1 billion share repurchase program authorized on September 14, 2010. On April 12, 2011, MasterCard’s board of directors amended its share repurchase program authorizing the company to repurchase an incremental $1 billion of class A common stock, bringing the authorization to an aggregate of $2 billion. As of April 28, 2011, the company had completed the repurchase of approximately 3.9 million shares of class A common stock at a cost of $1 billion.
First-Quarter Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its first quarter financial results.
The dial-in information for this call is 866-362-4832 (within the U.S.) and 617-597-5364 (outside the U.S.) and the passcode is 63290866. A replay of the call will be available for one week following the meeting. The replay can be accessed by dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and using passcode 79828010.
The live call and the replay, along with supporting materials, can also be accessed through the Investor Relations section of the company’s website at www.mastercard.com.
About MasterCard Incorporated
As a leading global payments company, MasterCard Incorporated prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl®. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com.

TSYS Acquires TermNet

TSYS Expands Merchant Acquiring Presence With Acquisition of TermNet

COLUMBUS, Ga.--(BUSINESS WIRE)--TSYS (NYSE: TSS) announced today that it has acquired TermNet Merchant Services, an Atlanta-based merchant acquirer. The company will be re-branded as TSYS and fully integrated into TSYS Merchant SolutionsSM, another recent TSYS acquisition based in Omaha, Nebraska.
“Culturally, our two companies are a great match, and we feel that this is the next logical step in our relationship.”
TermNet has a 25-year history in the merchant acquiring industry, and is ranked as the 52nd-largest merchant acquirer in the U.S. by dollar volume according to The Nilson Report*. TSYS Merchant Solutions will now serve more than 327,000 merchant locations across the United States.
“The acquisition of TermNet is the next step in establishing ourselves as a major player in the merchant acquiring industry,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS. “With its highly diversified merchant portfolio and strong sales distribution channel, we believe this is a great opportunity to continue to grow the TSYS Merchant Solutions business.”
“We have always had a strong partnership with TSYS,” said David Stanford, president and chief executive officer of TermNet. “Culturally, our two companies are a great match, and we feel that this is the next logical step in our relationship.”
TermNet has offices in Atlanta, Georgia; Dallas, Texas; Louisville, Kentucky; and Panama City, Florida. Terms of the deal are not being disclosed.
*The Nilson Report, March 2011

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Global Payments Announces .02 cent Third Quarter Dividend

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ATLANTAMay 3, 2011 /PRNewswire/ --Global Payments Inc. (NYSE: GPN), a leader in electronic transaction payment processing, announced today that its board of directors approved fiscal 2011 third quarter dividend of $0.02 per common share payable May 31, 2011 to shareholders of record as of May 17, 2011.    
Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United StatesCanadaEurope and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit www.globalpaymentsinc.com for more information about the company and its services.
Contact: Jane M. Elliott
SOURCE Global Payments Inc.

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