Thursday, July 21, 2011

Square Who? Dwolla Shows the Power of Electronic Cash

While tech darling Square has been growing its mobile payments business at a rapid pace, it’s far from the only success story in the business. Over in Des Moines, IA, mobile payments start-up Dwolla is enjoying its own impressive growth and just hit $1 million in daily transactions, putting it on a faster initial pace than Square.  read more

Reasons you'll love Dwolla

It's Safe

When you use Dwolla you'll only send and receive money with other users, which have been through the same registration process. This protects you against fraud.

It's Fast

Dwolla's unique technology allows us to process money through your bank account as fast as anyone else in the world.

It's Secure

When sending and receiving money, you will never share personal information with other users. All pages and data movement in Dwolla are hosted on our own private servers.

It's Easy

Gain access to an easy to use and understand user interface. This interface allows you to effortlessly find transaction information and start populating your account information.

It's Mobile

Dwolla supports the following platforms:iOSAndroid, and Windows 7 Phone. Use our Spots feature on your mobile device to find merchants that accept Dwolla near you!

It's Verified

We take your privacy and security very seriously. Dwolla is verified through both the TRUSTe and McAfee Secure services.
Enhanced by Zemanta

Google Introduces AdWords Credit Card

From Digital Trends...graphic by ePayment News

Google steps into the vendor financing arena and introduces and AdWords credit card to stimulate spending.
Google is introducing a new AdWords business credit card to some of the search engine’s U.S. clients. The card will have an ongoing rate of 8.99% and no annual fee, but customers will only be able to use their credit line to buy search advertising from Google. 
An exclusive Reuters report points out that the new AdWords credit card “marks Google’s first foray into the world of vendor financing.”  read more

Anywhere Commerce Leaves Home

The point-of-sale company has a new mobile mission.

Internet Retailer: Anywhere Commerce is the new name of HomeATM ePayment Solutions, a company that tried for years to promote a device that promised online retailers a way to lower the cost of accepting payment. The name change reflects the company’s new mission to capture mobile point-of-sale transactions, says Mitchell Cobrin, co-founder and CEO.

read  more

Enhanced by Zemanta

PayPal Surpasses 100 Million Registered Accounts, Reports First Billion Dollar Revenue Quarter

eBay Inc. Reports Strong Second Quarter 2011 Results

SAN JOSE, Calif.--(BUSINESS WIRE)--Global ecommerce and online payments leader eBay Inc. (Nasdaq:EBAY) today reported that revenue for the second quarter ended June 30, 2011, increased 25% to $2.8 billion, compared to the same period of 2010. The company recorded second quarter net income on a GAAP basis of $283.4 million, or $0.22 per diluted share, and non-GAAP net income of $630.9 million, or $0.48 per diluted share. In the second quarter GAAP net income decreased year over year compared to the second quarter of 2010 due to charges related to the GSI Commerce (GSI) transaction. The year-over-year increase in second quarter non-GAAP earnings per diluted share was driven by solid top-line growth and productivity.
“Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating”
"Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating," said eBay Inc. President and CEO John Donahoe. "We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce. We will partner with retailers of all sizes to help them grow in a rapidly shifting, technology-driven multichannel commerce environment, and we will help consumers shop and pay anytime, anywhere, any way."
The company's PayPal business delivered strong second quarter performance, expanding its leadership position in global payments. PayPal ended the quarter with 100.3 million active registered accounts, a 15% increase year over year. PayPal's net total payment volume (TPV) grew 34% to $28.7 billion in the second quarter of 2011 compared to the same period of last year. PayPal delivered its first-ever billion dollar revenue quarter, driven by strong performance in its Merchant Services business as well as increased penetration on eBay. PayPal continued to demonstrate strength in mobile payments and now expects more than $3 billion in mobile TPV this year, compared to $750 million in 2010.
The company's Marketplaces business also delivered strong second quarter performance. Gross merchandise volume excluding vehicles (GMV), increased by 17% year over year to $14.7 billion. GMV in the U.S. increased 14% year over year, the third consecutive quarter of acceleration, driven by improved customer experiences in search and navigation. International GMV increased 19% year over year, resulting from stable growth in Europe and improved performance in Korea, as well as positive impacts from foreign currency movements. The Marketplaces business continued to drive innovation in key areas such as mobile, where downloads of eBay's portfolio of mobile applications surpassed 45 million globally since the launch of mobile in the third quarter of 2008. The company remains on track to double eBay's mobile GMV including vehicles to over $4 billion in 2011.
The company completed the acquisition of GSI, a leading provider of ecommerce and interactive marketing services, on June 17, 2011. GSI will operate as a stand-alone business unit. The GSI segment contributed $23.8 million to revenue for the period from June 17, 2011, to June 30, 2011.

Dynamics Inc. Reveals One of the Largest Patent Portfolios in Payments Industry

Over 150 Patents are Pending/Issued in the USPTO

PITTSBURGH--(BUSINESS WIRE)--Dynamics Inc., an innovator in next-generation payment cards, today revealed that it has quietly amassed one of the largest patent portfolios in the payments industry. Dynamics launched its award-winning Card 2.0® technology last fall, and its products are currently in consumer trials with several top multinational payment card issuers. To date, Dynamics has raised approximately $40.7 million in total funding with a Series A investment round led by Adams Capital Management and a Series B investment round led by Bain Capital Ventures.
“The speed at which Dynamics has grown its intellectual property portfolio and the increased frequency of filing applications indicates that Dynamics is just beginning to amass its intellectual property rights.“”
“Dynamics’ intellectual property protects not only Dynamics, but also Dynamics’ customer base. IP is a critical asset for any company designing, manufacturing, and deploying new payments technologies,” said Jeff Mullen, CEO Dynamics Inc. “The strength of Dynamics’ patent portfolio is a testament to the company’s unmatched innovation capability within the payments industry.”
Dynamics’ aggressive research and development programs support innovations in all areas of payments. Its intellectual property covers foundational technology in fields such as:
  • Card-programmable magnetic stripe cards
  • Exposed chip “EMV” cards
  • RFID “contactless” cards
  • Phone-based payment devices and topologies
  • Next generation backend processing schemes
  • Portable and stationary payment terminals
  • Consumer electronic architectures and manufacturing techniques
  • Printing/lamination/personalization methodologies and systems
  • Next-generation form-factor agnostic payment applications such as reward redemption, coupon redemption, payment options, enhanced security methodologies, merchant funded promotions
Dynamics’ intellectual property portfolio also covers dozens of additional disruptive stealth payment technologies that will serve as a basis for the company’s continued fast-cycle deployments in the U.S. and abroad.
“As a relatively young company, Dynamics is executing an intellectual property program usually reserved for only the largest consumer technology companies,” said Joel Lutzker, managing director and general counsel, Ocean Tomo. “The speed at which Dynamics has grown its intellectual property portfolio and the increased frequency of filing applications indicates that Dynamics is just beginning to amass its intellectual property rights.“
Dynamics currently employs three patent attorneys, including Mullen himself, who spent seven years as a patent agent/attorney for world-renowned IP boutique Fish & Neave LLP, which later became the Fish & Neave IP Group of Ropes & Gray LLP. At Fish & Neave, Mullen managed some of the largest consumer electronics patent portfolios in the world and prosecuted and litigated patents in many areas of technology. Dan Gantt, Dynamics’ General Counsel, has more than 30 years of intellectual property management and litigation experience.
“Intellectual property is so important these days that many industries now have CEOs that are deeply involved in IP issues,” according to Robert Morris, partner, Kramer Levin. “Jeff worked with me at Fish & Neave. His expertise is positioned exactly at the nexus of technology, business, and law, and his deep ability to grasp how all of these competencies interact further strengthens Dynamics as a game-changing payments company that much more.”
Having filed for its first patent in 2005, Dynamics has built one of the largest patent portfolios in payments through a comprehensive strategy that takes advantage of a number of rules within the United States Patent and Trademark Office. Accordingly, while only approximately 40 pending/issued patents are publicly viewable, Dynamics’ patent portfolio actually includes over 150 pending/issued patents.
In addition to an industry-defining domestic patent portfolio, Dynamics also has a strong international patent portfolio as well as numerous trademarks, copyrights, and trade secrets.
A partial listing of Dynamics’ intellectual property can be found at
About Dynamics Inc.
Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its President and CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast-cycle innovation to top card issuers, the company's first commercial application is the world's first fully card-programmable magnetic stripe for use in next-generation payment cards. The company has won many of the world's most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company won DEMOgod and the $1M People's Choice Award at DEMO Fall 2010 and Best of Show at FinovateFall 2010. In January, the company won Best in Show at the 2011 International CES for Personal Electronics. Dynamics has closed a $5.7M Series A round led by Adams Capital Management and a $35M Series B round led by Bain Capital Ventures. Dynamics is headquartered in Pittsburgh, Pa. More information on the company, its technology and applications can be found at
About Ocean Tomo, LLC
Established in 2003, Ocean Tomo, LLC, is the leading Intellectual Capital Merchant Banc™ firm. The company provides financial products and services related to Intellectual Property, including expert testimony, valuation, research, ratings, investments, risk management and transactions. Ocean Tomo assists clients – corporations, law firms, governments and institutional investors – in realizing Intellectual Capital Equity® value broadly defined.
Headquartered in Chicago, Ocean Tomo has offices in Boston, Greenwich, Houston, Orange County, Paris, and San Francisco. Subsidiaries of Ocean Tomo include: Ocean Tomo Risk Management, LLC; Ocean Tomo Asset Management, LLC; OTI Data Networks, LLC; Patent Marking, LLC; and Ocean Tomo Capital, LLC – publisher of the Ocean Tomo 300® Patent Index family. Ocean Tomo is the founder and majority owner of the Intellectual Property Exchange International (IPXI), Inc. as well as the exclusive licensee and distributor of PatentRatings® system.

eWise Names Craig Olsen Executive Vice President of Customer Operations

Company Continues to Expand Footprint in U.S. Market
DENVER--(BUSINESS WIRE)--eWise, a payments and online financial management solutions provider, announced today that Craig Olsen has joined the company as Executive Vice President of Customer Operations responsible for sales and solution delivery. Olsen brings more than 20 years of operations and sales management experience to eWise.
“Craig brings a wealth of experience and expertise to eWise that will further accelerate our growth in the U.S. market”
“Craig brings a wealth of experience and expertise to eWise that will further accelerate our growth in the U.S. market,” said Alex Grinberg, CEO of eWise. “He will play a strategic role in helping us deliver value and support as more financial institutions and merchants integrate the Secure Vault Payments® network. We welcome him to the executive team and the eWise family.”
Prior to joining the eWise team, he was COO of Ceon Corporation, a product lifecycle management company, purchased by Convergys. He also served as Senior Vice President of global field operations for Niku, a portfolio and IT project management company focused on financial institutions, purchased by Computer Associates, and COO of iPIN, an online and mobile payments company, purchased by Aepona. In addition, Olsen has held senior management positions with Teligent, MCI and Siemens Information Systems.
“eWise is revolutionizing the payments industry with Secure Vault Payments for both online and mobile transactions,” said Olsen. “I’m excited to help lead this effort and build upon this successful business model that benefits all members of the payments ecosystem.”
About eWise
eWise is partnering with NACHA to provide the Secure Vault Payments network, utilizing its Online Banking ePayments (OBeP) technology and account management services. eWise is a payments and online financial management solutions provider with a reputation for providing innovative solutions that make transacting online easier and more secure. eWise offices in US, UK, China and Australia support some of the world’s top 50 financial institutions with solutions delivering outstanding, proven ROI for its customers and a better online experience for millions of end-users worldwide. For more information, visit

Flagstar Bancorp and Elan Financial Services Announce New Card-Issuing Partnership

MINNEAPOLIS & TROY, Mich.--(BUSINESS WIRE)--Elan Financial Services, the nation’s leading agent credit card issuer, has partnered with Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for Flagstar Bank, FSB, to offer its customers a robust, Flagstar Bank-branded credit card program.
“Partnering with Elan to launch a new line of credit cards will help us to deliver a full suite of retail products for our customers”
With this new partnership, Flagstar Bank cardholders will benefit from a variety of credit card products with rewards options, such as a full one percent cash back feature, merchandise, gift certificates or travel rewards. Special features will also be available for small business cardholders, including rewards for every dollar spent and tools to track and manage their expenses.
“Partnering with Elan to launch a new line of credit cards will help us to deliver a full suite of retail products for our customers,” said Michael Tierney, executive vice president and Midwest market president for Flagstar Bank. “We think customers will love the benefits and enjoy the ease and flexibility of our new credit cards.”
“We’re excited to leverage our experience as a full-service card issuer to bring Flagstar Bank a dynamic credit card program for the customers it serves,” said Jeff Chernivec, senior vice president and market development director at Elan Financial Services. “Our strength and long-term history as a provider of credit card program solutions, together with Flagstar’s desire to provide best-in-class products and service to its customers, make this a solid partnership.”
Elan Financial Services, a full-service credit card issuer, is dedicated to serving financial institutions with best-in-class credit card products and rewards that meet the unique needs of every customer.
About Flagstar Bancorp
Flagstar Bancorp, with $13 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At March 31, 2011, Flagstar operated 162 banking centers in Michigan, Indiana and Georgia and 29 home loan centers in 14 states. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans. For more information, visit
About Elan Financial Services
Elan Financial Services provides a complete range of processing and payments services, including credit card issuing, prepaid card solutions and ATM and debit card processing. Elan Financial Services is a leading credit card issuer for more than 2,000 clients in 50 states. It provides transaction processing, terminal driving and the necessary monitoring and support services for over 27,000 ATMs nationwide, and supports more than 20 million ATM and debit cards. Elan also operates the MoneyPass surcharge free ATM network. For more information call 800-343-7064, or visit

Card Activation's '859 Patent Ruled Invalid

July 22, 2011 07:01 AM Eastern Daylight Time

Card Activation’s Opinion on Delaware Court Ruling

CHICAGO--(BUSINESS WIRE)--Card Activation Technologies Inc. (Pink Sheets: CDVT)—In the action pending in the United States District Court for the District of Delaware (the "Delaware Action"), the Court recently ruled that the '859 Patent owned by Card Activation Technologies is invalid. This press release is intended to provide further information concerning the Court's conclusions, its effects upon the '859 Patent, and the circumstances facing the company at this juncture.
Initially, we disagree with the Court's Order and continue the process of determining the issues for appeal, the likely effects of the Order on the pending reexamination of the '859 Patent being conducted by the U.S. Patent and Trademark Office ("PTO"), and the likelihood of success in prevailing against adverse rulings by the Federal District Court and PTO. On January 3, 2011, Judge Jordan from the Third Circuit Court of Appeals took over the case from presiding District Court Judge Stark in the Delaware Action. Shortly thereafter, the Court on its own raised a validity challenge to '859 Patent based upon a defense known as Section 112. SVS had never previously raised this issue in the litigation between the parties. In 2010, the Third Circuit Court of Appeals determined that it was improper for a court to raise a defense on its own and then dismiss the claim on that defense. In our case, however, the Court's Order did indeed invalidate claims of the '859 Patent based upon a Section 112 defense first raised by the Court. The opinion neither cites the Third Circuit Court of Appeals' prior contrary position nor does it distinguish that opinion. We believe this to be one of several errors in the Order.
The claim construction previously given to the '859 Patent was also changed in the Order. A claim construction was initially entered by Judge Stark on April 28, 2010, and confirmed by Judge Farnan on June 3, 2010, which we believed was very favorable. The changes made in the claim construction significantly alter the scope of the '859 Patent and thus its susceptibility to prior art invalidation. The changes to the claim construction were the primary bases for the Court to invalidate the remaining claims of the '859 Patent.
The Court also held that the prior art reference known as "MicroTrax" was indeed prior art even though SVS provided no corroborating evidence that the document was disseminated to the public prior to the filing of the '859 Patent with the PTO. We believe the Court's Order in this regard is directly contrary to over 100 years of Supreme Court precedent and numerous recent cases throughout the country.
We believe the Delaware Court's Order contains numerous additional errors. However, we anticipate that the PTO will likewise make a final determination that the '859 Patent is invalid. Consequently, we will be required to appeal in both the Delaware Action and the PTO reexamination proceeding.
The realities of Card's financial status surely impact our ability to appeal these decisions. The costs of appeal, as well as the cost of maintaining an ongoing entity, are estimated to reach $750,000.00 over the next two years. It is also important to understand that success on appeal means the action will be returned to the Delaware District Court for further proceedings regarding the validity of the patent. It is also common for the Federal Circuit Court of Appeals to affirm a trial court's ruling without written explanation.
Although we strongly disagree with the Court's Order and what we presume will be the findings of the PTO, we are mindful of the economic realities facing the company at this juncture. A telephone conference has been scheduled for August 2, 2011 at 9:00 AM PDT, dial in # 800-895-0198 Conference ID: CASUPDATE, in which President Bob Kite will answer questions concerning these important issues. Please bear in mind that we know, and expect, our adversaries to be listening on this call. Consequently, the company will not be inclined or able to fully disclose all of its strategies.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of retailers, gas stations, phone companies and others that utilize the patented payment method.
For further information about Card Activation Technologies go to

Gartner Says Worldwide Mobile Payment Users to Reach 141 Million in 2011

Mobile Payments in Developing Markets Growing Slower Than Expected

STAMFORD, Conn., July 21, 2011— 

Worldwide mobile payment users will surpass 141.1 million in 2011, a 38.2 percent increase from 2010, when mobile payment users reached 102.1 million, according to Gartner, Inc. Worldwide mobile payment volume is forecast to total $86.1 billion, up 75.9 percent from 2010 volume of $48.9 billion.

Despite these strong growth projections, Gartner analysts said the mobile payment market is growing slower than expected.

“In developing markets, despite favorable conditions for mobile payment, growth is not as strong as was anticipated. Many service providers are yet to adapt their strategies to local requirements, and success models from Kenya and the Philippines are unlikely to be translated to other markets,” said Sandy Shen, research director at Gartner. While developing markets have favorable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements.”

"In developed markets, companies are trumpeting the prospects of Near Field Communication (NFC) without realizing the complexity of the service model. We believe mass market adoption of NFC payments is at least four years away," Ms. Shen said. "The biggest hurdle is the need to change user behavior by convincing consumers to pay with mobile phones instead of cash and cards."

Gartner expects Short Message Service (SMS) and Unstructured Supplementary Service Data (USSD) to remain the dominant access technologies in developing markets due to the constraints of mobile phones. Wireless Application Protocol (WAP) will remain the preferred mobile access technology in developed markets, where the mobile Internet is commonly available and activated on the phone. Mobile app downloads and mobile commerce are the main drivers of WAP payments, and WAP will account for almost 90 percent of all mobile transactions in North America and about 70 percent in Western Europe in 2011.

Money transfers and prepaid top-ups will drive transaction volumes in developing markets. These are seen as the "killer apps" in developing markets, where people value the convenience of sending money to relatives and topping up mobile accounts. This is most obvious in Eastern Europe, the Middle East and Africa, where these two services will account for 54 percent and 32 percent of all transactions in 2011.

"Thanks to the success of mobile application stores, such as Apple's App Store, and the efforts in driving mobile sales by major retailers, such as Amazon and eBay, merchandise purchases far outweigh other use cases in developed markets, which include North America and Western Europe," Ms. Shen said. "We predict that in 2011, merchandise purchases will account for 90 percent and 77 percent of all transactions in North America and Western Europe, respectively." 

Additional information is available in the Gartner report “Market Trends: Mobile Payments Worldwide, 2011." The report is available on Gartner's website at

BillMyParents Appoints Evan Jones as Vice President of Marketing

SOURCE: BillMyParents
July 21, 2011 09:31 ET

Next Phase of Multi-Million Dollar Marketing Push Launching in Coming Weeks
SAN DIEGO, CA--(Marketwire - Jul 21, 2011) - BillMyParents (OTCQBBMPI) (OTCBBBMPI), innovator of the reloadable Spend Smart prepaid card, announced today that Evan Jones has been appointed Vice President of Marketing. Jones will continue to lead BillMyParents programs designed to prominently position the brand and product offering with parents, teens and young adults. Under his direction, BillMyParents will transition to the next phase in its multi-million dollar marketing campaign with attention-winning initiatives launching in the coming weeks.
Jones brings extensive experience to his new role at BillMyParents, with over 15 years leading brand marketing strategy and execution across multiple industries, including sports, action sports, lifestyle, gaming and entertainment. Prior to joining BillMyParents, he was Vice President of Global Marketing at Activision Blizzard, the world's largest publisher of video games. Jones also served as Senior Vice President of Global Marketing at DC Shoes (a subsidiary of Quiksilver, Inc.) where he led all global and regional marketing efforts for the DC brand and all DC action sports categories. Previous to those positions, he held various roles in Nike Inc.'s European, US and Global organizations, leading marketing programs for some of Nike's largest categories and businesses, including Nike Basketball in the US Market from 2004-2007.
All year, Jones has worked with the BillMyParents management team to lay the foundation for 2011 marketing campaigns heightening brand awareness with families nationwide, and encouraging adoption of the BillMyParents Spend Smart card. This includes a comprehensive rebranding effort and significant integration of the brand and Spend Smart card in shows and advertising aired on MTV and ESPN. Additionally, he has initiated multi-tiered marketing programs focusing on the vital parenting market, which will roll out between now and the end of the year.
"We are about to launch parent-focused campaigns that will complement what we have already done in the teen demographic," said Jones. "Responsible spending habits need to be a two-way conversation between parents and teens, which is why we have worked so hard to develop the right messages and have aligned ourselves with best-in-class agencies to spike awareness and buzz. These measures will help us execute our overall goal: to make BillMyParents a household name within the next 18 - 24 months."
"Evan's deep understanding of programs that achieve broad consumer brand recognition is profoundly relevant for our strategy," noted Mark Sandson, interim CEO of BillMyParents. "He has a clear perception of the vast potential of our brand and how to get us where we want to go."
For more information, please visit:
About BillMyParentsBillMyParents (OTCQBBMPI) provides payment solutions targeted to teens, young adults and their parents. We facilitate communication between parents and young people and help teach financial responsibility. For more information:

Disqus for ePayment News