Gemalto Acquires Todos

Gemalto acquires Internet banking security specialist Todos

Combination of Gemalto's existing e-banking business, the Xiring activity acquired in 2009 and Todos creates world leader in Internet banking security

Amsterdam - April 8, 2010 - Gemalto, the world leader in digital security, today announced that it has completed the acquisition of Todos AB from investors led by 6AP, a fund belonging to the Swedish National Pension system. Terms of the transaction were not disclosed.

Headquartered in Gothenburg, Sweden, and employing 80 people worldwide, Todos AB is a leading provider of strong authentication solutions for Internet banking. Todos has to date delivered in excess of 20 million products to over 100 financial institutions in more than 30 countries. Todos core offer is the eCode Suite, including the Todos Versatile Authentication Server, which enables strong authentication and transaction verification. The Versatile Authentication Server supports all leading industry standards and is augmented by patented technology such as Dynamic Signatures. Using their EMV card and a Todos’ eCode reader, consumers can use their PIN code to securely sign Internet banking transactions. An additional layer of security can be provided by displaying transaction details on the reader, so that users “sign what they see,” thwarting in particular “man in the browser” attacks. Over the coming months Todos will be integrated with Gemalto’s Identification and Access Management business line.

Commenting on the transaction, Oliver Piou, Gemalto chief executive officer noted, “Todos is a perfect fit with our e-banking business, bringing a complementary customer base and extending the solution offering. The combined business creates a new leader to address the fast growing Internet banking market worldwide.”

Ove Wedsjö, CEO of Todos added, “We are really thrilled to become part of the Gemalto family. Our combined products, customers and technologies establish us as the global leader in Internet banking. Going forward, I am confident that we will be able to further accelerate our growth, thanks to our extended customer reach, ensuring a safer online environment for e-bankers everywhere.”

Mats Augurell, SVP and head of AP Partner Investments commented, “We are very pleased with this outcome. We invested in Todos in 2001, having recognized the strong market potential and the company’s technology edge.  In making our exit decision, we selected Gemalto as the preferred bidder, since this combination clearly represented the best match for customers, employees and shareholders.”

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2009 annual revenues of €1.65 billion, and over 10 thousand employees operating out of 75 offices, research and service centers in 41 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM) in mobile phones, smart banking cards, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.  For more information please visit www.gemalto.com.

About Todos AB

Todos AB helps banks and other businesses create trusted, secure relationships with their customers online. Founded in 1987, Todos designs, develops, delivers and supports security solutions for strong multi-factor authentication. Todos’s principal solution is the eCode Suite, including Todos Versatile Authentication Server (VAS), which enables strong authentication and transaction verification. VAS supports all leading industry standards and is enhanced with patented technology such as Dynamic Signatures. Todos eCode Suite’s complete range of products features everything from printed OTP cards, mobile applications, tokens and up to the most advanced smart card readers available.  For more information please visit www.todos.se

About 6AP

The Sixth Swedish National Pension Fund (the Sixth AP Fund) manages public pension funds in order to create high long-term returns and take into consideration the need for satisfactory risk diversification. The task is to invest in small and mediumsized growth companies, mainly Swedish, thus contributing to the development of Swedish industry. The mission and business model of the Sixth AP Fund differ from those of the other Swedish National Pension Funds, but also from those of private equity companies.

The business model has been refined to satisfy the financial targets in the investment mandate. Investment activities are divided up into company investments and investments in funds and investment companies and are managed by an organisation comprising seven business areas. The Sixth AP Fund received its mandate in 1996 and started with investment funds of SEK 10.4 billion. By the end of 2009, this had grown by SEK 7,8 billion to SEK 18,2 billion, during a period which included two severe economic downturns. 

2010-04-08

Gemalto acquires Todos AB

Combination of Gemalto’s existing e-banking business and Todos AB creates world leader in internet banking security.

Download:

• PDF - Full story (English)


• PDF - Full story (Swedish)

Gemalto Acquires Todos

Gemalto acquires Internet banking security specialist Todos

Combination of Gemalto's existing e-banking business, the Xiring activity acquired in 2009 and Todos creates world leader in Internet banking security

Amsterdam - April 8, 2010 - Gemalto, the world leader in digital security, today announced that it has completed the acquisition of Todos AB from investors led by 6AP, a fund belonging to the Swedish National Pension system. Terms of the transaction were not disclosed.

Headquartered in Gothenburg, Sweden, and employing 80 people worldwide, Todos AB is a leading provider of strong authentication solutions for Internet banking. Todos has to date delivered in excess of 20 million products to over 100 financial institutions in more than 30 countries. Todos core offer is the eCode Suite, including the Todos Versatile Authentication Server, which enables strong authentication and transaction verification. The Versatile Authentication Server supports all leading industry standards and is augmented by patented technology such as Dynamic Signatures. Using their EMV card and a Todos’ eCode reader, consumers can use their PIN code to securely sign Internet banking transactions. An additional layer of security can be provided by displaying transaction details on the reader, so that users “sign what they see,” thwarting in particular “man in the browser” attacks. Over the coming months Todos will be integrated with Gemalto’s Identification and Access Management business line.

Commenting on the transaction, Oliver Piou, Gemalto chief executive officer noted, “Todos is a perfect fit with our e-banking business, bringing a complementary customer base and extending the solution offering. The combined business creates a new leader to address the fast growing Internet banking market worldwide.”

Ove Wedsjö, CEO of Todos added, “We are really thrilled to become part of the Gemalto family. Our combined products, customers and technologies establish us as the global leader in Internet banking. Going forward, I am confident that we will be able to further accelerate our growth, thanks to our extended customer reach, ensuring a safer online environment for e-bankers everywhere.”

Mats Augurell, SVP and head of AP Partner Investments commented, “We are very pleased with this outcome. We invested in Todos in 2001, having recognized the strong market potential and the company’s technology edge.  In making our exit decision, we selected Gemalto as the preferred bidder, since this combination clearly represented the best match for customers, employees and shareholders.”

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2009 annual revenues of €1.65 billion, and over 10 thousand employees operating out of 75 offices, research and service centers in 41 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM) in mobile phones, smart banking cards, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.  For more information please visit www.gemalto.com.

About Todos AB

Todos AB helps banks and other businesses create trusted, secure relationships with their customers online. Founded in 1987, Todos designs, develops, delivers and supports security solutions for strong multi-factor authentication. Todos’s principal solution is the eCode Suite, including Todos Versatile Authentication Server (VAS), which enables strong authentication and transaction verification. VAS supports all leading industry standards and is enhanced with patented technology such as Dynamic Signatures. Todos eCode Suite’s complete range of products features everything from printed OTP cards, mobile applications, tokens and up to the most advanced smart card readers available.  For more information please visit www.todos.se

About 6AP

The Sixth Swedish National Pension Fund (the Sixth AP Fund) manages public pension funds in order to create high long-term returns and take into consideration the need for satisfactory risk diversification. The task is to invest in small and mediumsized growth companies, mainly Swedish, thus contributing to the development of Swedish industry. The mission and business model of the Sixth AP Fund differ from those of the other Swedish National Pension Funds, but also from those of private equity companies.

The business model has been refined to satisfy the financial targets in the investment mandate. Investment activities are divided up into company investments and investments in funds and investment companies and are managed by an organisation comprising seven business areas. The Sixth AP Fund received its mandate in 1996 and started with investment funds of SEK 10.4 billion. By the end of 2009, this had grown by SEK 7,8 billion to SEK 18,2 billion, during a period which included two severe economic downturns. 

2010-04-08

Gemalto acquires Todos AB

Combination of Gemalto’s existing e-banking business and Todos AB creates world leader in internet banking security.

Download:

• PDF - Full story (English)


• PDF - Full story (Swedish)

Walmart Pushing Forward on International eCommerce Expansion

Wal-Mart Pushing Forward on International Ecommerce Expansion

By the ZippyCart Ecommerce Software Reviews Content Team

Retail giant Wal-Mart continues to expand their ecommerce efforts as they look to grow their international online sales, which will help them grow their presence on the Internet. Amazon and Wal-Mart went head-to-head for the 2009 holiday shopping season, starting Black Friday deals about a week before the actual day. This battle continued to heat up through Cyber Monday and through December, as Wal-Mart pushes to become a bigger force in the online retail space. Currently Wal-Mart is running operations in 14 countries which generated just over $400 billion in 2009, and hopes that this global footprint will help them with their international ecommerce expansion. In order to speed up the ecommerce expansion, Wal-Mart has started advertising for new jobs which will help with the international move to increase online sales.



Now that Wal-mart can sell a consumer almost any retail good they could ever need, they plan to bring that product selection to the international markets. Two of the biggest and most important international ecommerce markets that Wal-Mart wants to expand are China and Japan. As of now ecommerce operations for Wal-Mart online exists in the U.S., U.K., and Brazil, but the move into the Asian market makes a lot of sense. Countries like Japan and China are very savvy when it comes to online shopping, and are the perfect market for Wal-Mart to try and build a loyal ecommerce following. It is still unclear how much of Wal-Mart's total sales come via the online sector as they do not disclose those details, but the international expansion is proof that things are trending in the right direction. This holiday shopping season should be great for consumers, as it is likely that Wal-Mart and Amazon will battle it out again to provide the best Black Friday and Cyber Monday 2010 deals.

Walmart Pushing Forward on International eCommerce Expansion

Wal-Mart Pushing Forward on International Ecommerce Expansion

By the ZippyCart Ecommerce Software Reviews Content Team

Retail giant Wal-Mart continues to expand their ecommerce efforts as they look to grow their international online sales, which will help them grow their presence on the Internet. Amazon and Wal-Mart went head-to-head for the 2009 holiday shopping season, starting Black Friday deals about a week before the actual day. This battle continued to heat up through Cyber Monday and through December, as Wal-Mart pushes to become a bigger force in the online retail space. Currently Wal-Mart is running operations in 14 countries which generated just over $400 billion in 2009, and hopes that this global footprint will help them with their international ecommerce expansion. In order to speed up the ecommerce expansion, Wal-Mart has started advertising for new jobs which will help with the international move to increase online sales.



Now that Wal-mart can sell a consumer almost any retail good they could ever need, they plan to bring that product selection to the international markets. Two of the biggest and most important international ecommerce markets that Wal-Mart wants to expand are China and Japan. As of now ecommerce operations for Wal-Mart online exists in the U.S., U.K., and Brazil, but the move into the Asian market makes a lot of sense. Countries like Japan and China are very savvy when it comes to online shopping, and are the perfect market for Wal-Mart to try and build a loyal ecommerce following. It is still unclear how much of Wal-Mart's total sales come via the online sector as they do not disclose those details, but the international expansion is proof that things are trending in the right direction. This holiday shopping season should be great for consumers, as it is likely that Wal-Mart and Amazon will battle it out again to provide the best Black Friday and Cyber Monday 2010 deals.

Regulating Debit Cards: The Case of Ad Valorem Fees

Regulating Debit Cards: The Case of Ad Valorem Fees In addition to signature and PIN debit cards, credit cards and charge ... PIN debit cards used to charge merchants fixed per-transaction ... www.kansascityfed.org/PUBLICAT/ECONREV/PDF/10q1Wang.pdf

Regulating Debit Cards: The Case of Ad Valorem Fees

Regulating Debit Cards: The Case of Ad Valorem Fees In addition to signature and PIN debit cards, credit cards and charge ... PIN debit cards used to charge merchants fixed per-transaction ... www.kansascityfed.org/PUBLICAT/ECONREV/PDF/10q1Wang.pdf

Authentify Releases EFT Verifier™ to Thwart Unauthorized Electronic Fund Transfers by Criminals Employing ZeuS Malware

Authentify EFT Verifier™ Protects Accounts Compromised by ZeuS Malware Preventing the Wrong People Armed with the “Right” Information from Transferring Money from an Account

CHICAGO--(BUSINESS WIRE)--Authentify, the leader in phone based, totally out-of-band authentication, TOOBA, released its ETF Verifier™ application enabling financial applications and payment platforms to alert account owners whenever a new funds transfer destination is added to the user’s account. The process permits the account owner to cancel a transaction they have not initiated.

“The call provides the chance to stop the fraudulent transaction and delivers a red alert that there is a problem.”

Malware “loggers” like ZeuS capture everything typed on a user’s keyboard including bank account numbers and passwords. A criminal must still get funds out of the account. Electronic funds transfer via wire transfer or e-payment applications have become the attack point. Adding a payee account number at an account the fraudster controls is the final step.

“If I break into your home and steal jewelry, I still have to 'fence' the items to get cash,” according to Peter Tapling, Authentify’s CEO. “The fraudsters must still turn those logged keystrokes into cash. Stop them from adding a new payee or transfer number to a compromised account and you stop the theft.”

Authentify’s ETF Verifier™ can be invoked whenever a new payee is added to an online payment or wire enabled account. The Totally Out-of-Band Authentication process or TOOBA, sends an XML message to Authentify’s telephony service center. The message triggers a phone call to a telephone number for the account owner. Transaction details including payee identification is repeated via phone to the account owner and allows the user to approve or cancel the transaction via the telephone keypad.

“If you’re not using your account and you’re called regarding a transfer, you know something is wrong,” according to Tapling. “The call provides the chance to stop the fraudulent transaction and delivers a red alert that there is a problem.”

ETF Verifier™ is available immediately. A demonstration is hosted on the Authentify Web site at www.authentify.com.

About Authentify:

Authentify’s patented totally-out-of-band authentication solution protects online systems from cyber-attack. It requires no new equipment, it's inexpensive, quickly integrated, and customer-friendly relying on telephone technology with which users are already familiar.

© 2010 AUTHENTIFY, INC. U.S. PATENT NOS. 6,934,858 / 7,383,572 / 7,461,258

Contacts

Todd Pauli

Authentify

773.243.0324

todd.pauli@authentify.com

or

Robert Soden

Authentify, Ltd. Hong Kong

+852.9304.6699

robert.soden@authentify.com

Permalink: http://www.businesswire.com/news/home/20100407006852/en/Authentify-Releases-EFT-Verifier%E2%84%A2-Thwart-Unauthorized-Electronic

Authentify Releases EFT Verifier™ to Thwart Unauthorized Electronic Fund Transfers by Criminals Employing ZeuS Malware

Authentify EFT Verifier™ Protects Accounts Compromised by ZeuS Malware Preventing the Wrong People Armed with the “Right” Information from Transferring Money from an Account

CHICAGO--(BUSINESS WIRE)--Authentify, the leader in phone based, totally out-of-band authentication, TOOBA, released its ETF Verifier™ application enabling financial applications and payment platforms to alert account owners whenever a new funds transfer destination is added to the user’s account. The process permits the account owner to cancel a transaction they have not initiated.

“The call provides the chance to stop the fraudulent transaction and delivers a red alert that there is a problem.”

Malware “loggers” like ZeuS capture everything typed on a user’s keyboard including bank account numbers and passwords. A criminal must still get funds out of the account. Electronic funds transfer via wire transfer or e-payment applications have become the attack point. Adding a payee account number at an account the fraudster controls is the final step.

“If I break into your home and steal jewelry, I still have to 'fence' the items to get cash,” according to Peter Tapling, Authentify’s CEO. “The fraudsters must still turn those logged keystrokes into cash. Stop them from adding a new payee or transfer number to a compromised account and you stop the theft.”

Authentify’s ETF Verifier™ can be invoked whenever a new payee is added to an online payment or wire enabled account. The Totally Out-of-Band Authentication process or TOOBA, sends an XML message to Authentify’s telephony service center. The message triggers a phone call to a telephone number for the account owner. Transaction details including payee identification is repeated via phone to the account owner and allows the user to approve or cancel the transaction via the telephone keypad.

“If you’re not using your account and you’re called regarding a transfer, you know something is wrong,” according to Tapling. “The call provides the chance to stop the fraudulent transaction and delivers a red alert that there is a problem.”

ETF Verifier™ is available immediately. A demonstration is hosted on the Authentify Web site at www.authentify.com.

About Authentify:

Authentify’s patented totally-out-of-band authentication solution protects online systems from cyber-attack. It requires no new equipment, it's inexpensive, quickly integrated, and customer-friendly relying on telephone technology with which users are already familiar.

© 2010 AUTHENTIFY, INC. U.S. PATENT NOS. 6,934,858 / 7,383,572 / 7,461,258

Contacts

Todd Pauli

Authentify

773.243.0324

todd.pauli@authentify.com

or

Robert Soden

Authentify, Ltd. Hong Kong

+852.9304.6699

robert.soden@authentify.com

Permalink: http://www.businesswire.com/news/home/20100407006852/en/Authentify-Releases-EFT-Verifier%E2%84%A2-Thwart-Unauthorized-Electronic

SmartCard Marketing Systems Inc. (PINKSHEETS:SMKG) Announces 2010 Outlook - Product Review and Revenue Streams

SAN ANTONIO--(BUSINESS WIRE)--(PINKSHEETS:SMKG) CEO Massimo Barone said, “We are proud to present our 2010 Company Outlook. We believe that this information will allow both our company shareholders along with existing/future clientele the ability to completely understand what our great company has accomplished and achieved during its first important initial years. Our platform stands unique and can be tailored to our many different clientele needs. The current and future economic situation offers SmartCard Marketing Systems Inc. an unlimited amount of growth potential which we aim to capture during the coming years.”



FINANCIAL SERVICES



VelocityMoney Financial Services Portal



The VelocityMoney Financial portal has reached a new pinnacle of service and ease-of use. SMKG has included 4 products and 15 services under one comprehensive web application for Individuals, Businesses and Merchants. In the fourth quarter of 2009 (PINKSHEETS:SMKG) added its proprietary VelocityMoney consumer financial portal to the VelocityMerchant commercial financial management portal. Together they form a complete platform for consumers and merchants to move money, manage their stored-value debit cards, transfer money between international bank accounts in 16 different currencies and make online purchases from participating merchants. The online system allows consumers and merchants to send, collect and manage money online internationally in 19 different currencies.



Products:



Stored Value Cards – Globally-branded Open-Loop Prepaid Debit Cards



One of the most exciting new products to which (PINKSHEETS:SMKG) has acquired the distribution rights is International Stored-Value Debit Cards. These products are in high demand within the niche populations of a) those with no bank account, b) those who want to transfer money to relatives in remote locations bypassing more expensive transfer companies like Western Union, c) companies who want to put all employees, including unbanked employees, on payroll direct deposit, and d) immigrants who are trying to get financially established in their new country. Each card sale represents an average of $40 and $60 per year in residual transaction revenue.



VelocityMoney Prepaid Debit and Gift Card Program - US



(PINKSHEETS:SMKG) has marketing rights to branded Debit cards and Gift Cards under license, processed and managed by its US financial issuer. After doing a thorough market search, management has determined this to be a very unique opportunity to create revenue both through sale of the cards, and, more importantly, through recurring monthly residuals from transactions performed by cardholders.

Canadian Distribution



(PINKSHEETS:SMKG) has distribution rights to a prepaid Debit MasterCard Issued by a Canadian financial issuer. It is one of a few such cards in Canada that can be issued to an individual who does not have a bank account. This represents a huge opportunity to sell cards into a market that has little to no competition. Through its Canadian development office, (PINKSHEETS:SMKG) has significant sales opportunities to recruit resellers of its cards through transaction-based financial service providers such as bankruptcy-asset distribution trustees, check cashing establishments, payroll companies and as a funds distribution mechanism for investment houses and travel companies.



Loading Network



Green Dot Network – One of the biggest obstacles in the debit card business is getting money onto the cardholder’s card. (PINKSHEETS:SMKG) has a contract solution that gives it an advantage in the current marketplace. This solution is the Green Dot Deposit Network.



The Green Dot Financial Network allows cardholders to add cash onto their VelocityMoney cards at tens of thousands of retail locations nationwide including Rite Aid, Walgreens, CVS/pharmacy, RadioShack and WalMart.



ONLINE PIN DEBIT PROCESSING



HomeATM Payment Processing



SMKG integrated the HomeATM PIN terminal to its free Internet-based payment platform, VelocityMoney.com. The terminal plugs into the USB port on a computer with Internet access and a free VelocityMoney.com account. With no more set-up than that, the business can accept any bank's PIN-based debit card for payment. The transaction is basically treated as a cash transaction or ATM withdrawal by the bank...no charge-backs and no reserves.



SMKG receives 1% on payments processed.



MERCHANT PROCESSING



Credit Card Processing



SMKG has written an interface that allows merchants who need to process credit or debit cards remotely to use their mobile devices, such as cell phone or wi-fi to process payments and print out a receipt for the customer. The VelocityMoney Bluetooth Printer has a built-in credit card swipe/reader and thermal printer. It can be used alone or in conjunction with the HomeATM device to process credit and debit cards remotely and securely while printing out receipts for signature capture.



Continue Reading

SmartCard Marketing Systems Inc. (PINKSHEETS:SMKG) Announces 2010 Outlook - Product Review and Revenue Streams

SAN ANTONIO--(BUSINESS WIRE)--(PINKSHEETS:SMKG) CEO Massimo Barone said, “We are proud to present our 2010 Company Outlook. We believe that this information will allow both our company shareholders along with existing/future clientele the ability to completely understand what our great company has accomplished and achieved during its first important initial years. Our platform stands unique and can be tailored to our many different clientele needs. The current and future economic situation offers SmartCard Marketing Systems Inc. an unlimited amount of growth potential which we aim to capture during the coming years.”



FINANCIAL SERVICES



VelocityMoney Financial Services Portal



The VelocityMoney Financial portal has reached a new pinnacle of service and ease-of use. SMKG has included 4 products and 15 services under one comprehensive web application for Individuals, Businesses and Merchants. In the fourth quarter of 2009 (PINKSHEETS:SMKG) added its proprietary VelocityMoney consumer financial portal to the VelocityMerchant commercial financial management portal. Together they form a complete platform for consumers and merchants to move money, manage their stored-value debit cards, transfer money between international bank accounts in 16 different currencies and make online purchases from participating merchants. The online system allows consumers and merchants to send, collect and manage money online internationally in 19 different currencies.



Products:



Stored Value Cards – Globally-branded Open-Loop Prepaid Debit Cards



One of the most exciting new products to which (PINKSHEETS:SMKG) has acquired the distribution rights is International Stored-Value Debit Cards. These products are in high demand within the niche populations of a) those with no bank account, b) those who want to transfer money to relatives in remote locations bypassing more expensive transfer companies like Western Union, c) companies who want to put all employees, including unbanked employees, on payroll direct deposit, and d) immigrants who are trying to get financially established in their new country. Each card sale represents an average of $40 and $60 per year in residual transaction revenue.



VelocityMoney Prepaid Debit and Gift Card Program - US



(PINKSHEETS:SMKG) has marketing rights to branded Debit cards and Gift Cards under license, processed and managed by its US financial issuer. After doing a thorough market search, management has determined this to be a very unique opportunity to create revenue both through sale of the cards, and, more importantly, through recurring monthly residuals from transactions performed by cardholders.

Canadian Distribution



(PINKSHEETS:SMKG) has distribution rights to a prepaid Debit MasterCard Issued by a Canadian financial issuer. It is one of a few such cards in Canada that can be issued to an individual who does not have a bank account. This represents a huge opportunity to sell cards into a market that has little to no competition. Through its Canadian development office, (PINKSHEETS:SMKG) has significant sales opportunities to recruit resellers of its cards through transaction-based financial service providers such as bankruptcy-asset distribution trustees, check cashing establishments, payroll companies and as a funds distribution mechanism for investment houses and travel companies.



Loading Network



Green Dot Network – One of the biggest obstacles in the debit card business is getting money onto the cardholder’s card. (PINKSHEETS:SMKG) has a contract solution that gives it an advantage in the current marketplace. This solution is the Green Dot Deposit Network.



The Green Dot Financial Network allows cardholders to add cash onto their VelocityMoney cards at tens of thousands of retail locations nationwide including Rite Aid, Walgreens, CVS/pharmacy, RadioShack and WalMart.



ONLINE PIN DEBIT PROCESSING



HomeATM Payment Processing



SMKG integrated the HomeATM PIN terminal to its free Internet-based payment platform, VelocityMoney.com. The terminal plugs into the USB port on a computer with Internet access and a free VelocityMoney.com account. With no more set-up than that, the business can accept any bank's PIN-based debit card for payment. The transaction is basically treated as a cash transaction or ATM withdrawal by the bank...no charge-backs and no reserves.



SMKG receives 1% on payments processed.



MERCHANT PROCESSING



Credit Card Processing



SMKG has written an interface that allows merchants who need to process credit or debit cards remotely to use their mobile devices, such as cell phone or wi-fi to process payments and print out a receipt for the customer. The VelocityMoney Bluetooth Printer has a built-in credit card swipe/reader and thermal printer. It can be used alone or in conjunction with the HomeATM device to process credit and debit cards remotely and securely while printing out receipts for signature capture.



Continue Reading

Walmart Joins SRPc Board of Directors

Secure Remote Payment Council Adds New Members to Help in the Development of Secure eCommerce and Mobile Payments

Trade Association Focused on Internet and eCommerce Payments Adds Walmart, eBillme, Blyth, Inc. and Net1Virtual Card, Inc. as New Members

WESTWOOD, N.J.--(BUSINESS WIRE)--The Secure Remote Payment Council, a new trade council dedicated to the growth, development and market adoption of secure eCommerce and mobile payment methods launched earlier this year, continues to grow by announcing the addition of four new members. Walmart has joined as a general member and also as a member of the Board of Directors. eBillme, a leading secure online payment solution provider and Net1Virtual Card, Inc., a mobile payments solution company have joined as Associate Members. Blyth, Inc., a leading retailer recognized around the world as a leader in home expressions products, has joined as a Council Member.

“The Secure Remote Payment Council brings together all of the key stakeholders in one place to work together on solving the equation that will allow secure debit payments to grow. Walmart is pleased to become a part of the leadership of the SRPc.”

Membership in the SRPc is open to any entity that does business in the eCommerce and mobile payments areas including: merchants, financial institutions, merchant processors, Issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers, and payments consultants.

Other SRPc members include ACCEL/Exchange Network, CardinalCommerce Corporation, Chase Paymentech, Heartland Payment Systems, MagTek, Merchant Advisory Group, SHAZAM, Inc., STAR Debit and ATM Network, SWACHA and TSYS.

“Improving the security, safety and convenience of debit payments by consumers in the eCommerce and mobile payments channels is very important to Walmart,” Mike Cook, vice president and assistant treasurer of Walmart, said. “The Secure Remote Payment Council brings together all of the key stakeholders in one place to work together on solving the equation that will allow secure debit payments to grow. Walmart is pleased to become a part of the leadership of the SRPc.”

“The SRPc is honored to add Walmart, eBillme, Blyth and Net1Virtual Card as members. The diversity of our membership sets us apart from other payments focused trade associations and will be a key factor in helping fulfill our mission of facilitating the growth of secure remote payments,” said Paul Tomasofsky, SRPc president.

About the Secure Remote Payment Council

The Secure Remote Payment (SRPc) is a nonprofit, inter-industry trade association that supports the growth, development and market adoption of debit based internet eCommerce and mobile channel payment methods that meet or exceed the security standards for pinned based card present payments. It will accomplish this by encouraging and supporting those activities that accelerate the implementation, adoption and promotion of these payments. The SRPc’s members include merchants, financial institutions, merchant processors, issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers and payments consultants. For additional information, visitwww.SecureRemotePaymentCouncil.org.

Contacts

Secure Remote Payment Council

Paul Tomasofsky, 201-775- 4960

PaulT@SecureRemotePaymentCouncil.org

Permalink: http://www.businesswire.com/news/home/20100406006898/en/Secure-Remote-Payment-Council-Adds-Members-Development

Walmart Joins SRPc Board of Directors

Secure Remote Payment Council Adds New Members to Help in the Development of Secure eCommerce and Mobile Payments

Trade Association Focused on Internet and eCommerce Payments Adds Walmart, eBillme, Blyth, Inc. and Net1Virtual Card, Inc. as New Members

WESTWOOD, N.J.--(BUSINESS WIRE)--The Secure Remote Payment Council, a new trade council dedicated to the growth, development and market adoption of secure eCommerce and mobile payment methods launched earlier this year, continues to grow by announcing the addition of four new members. Walmart has joined as a general member and also as a member of the Board of Directors. eBillme, a leading secure online payment solution provider and Net1Virtual Card, Inc., a mobile payments solution company have joined as Associate Members. Blyth, Inc., a leading retailer recognized around the world as a leader in home expressions products, has joined as a Council Member.

“The Secure Remote Payment Council brings together all of the key stakeholders in one place to work together on solving the equation that will allow secure debit payments to grow. Walmart is pleased to become a part of the leadership of the SRPc.”

Membership in the SRPc is open to any entity that does business in the eCommerce and mobile payments areas including: merchants, financial institutions, merchant processors, Issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers, and payments consultants.

Other SRPc members include ACCEL/Exchange Network, CardinalCommerce Corporation, Chase Paymentech, Heartland Payment Systems, MagTek, Merchant Advisory Group, SHAZAM, Inc., STAR Debit and ATM Network, SWACHA and TSYS.

“Improving the security, safety and convenience of debit payments by consumers in the eCommerce and mobile payments channels is very important to Walmart,” Mike Cook, vice president and assistant treasurer of Walmart, said. “The Secure Remote Payment Council brings together all of the key stakeholders in one place to work together on solving the equation that will allow secure debit payments to grow. Walmart is pleased to become a part of the leadership of the SRPc.”

“The SRPc is honored to add Walmart, eBillme, Blyth and Net1Virtual Card as members. The diversity of our membership sets us apart from other payments focused trade associations and will be a key factor in helping fulfill our mission of facilitating the growth of secure remote payments,” said Paul Tomasofsky, SRPc president.

About the Secure Remote Payment Council

The Secure Remote Payment (SRPc) is a nonprofit, inter-industry trade association that supports the growth, development and market adoption of debit based internet eCommerce and mobile channel payment methods that meet or exceed the security standards for pinned based card present payments. It will accomplish this by encouraging and supporting those activities that accelerate the implementation, adoption and promotion of these payments. The SRPc’s members include merchants, financial institutions, merchant processors, issuer processors, payment brand companies, payments authentication hardware providers, payments authentication software providers and payments consultants. For additional information, visitwww.SecureRemotePaymentCouncil.org.

Contacts

Secure Remote Payment Council

Paul Tomasofsky, 201-775- 4960

PaulT@SecureRemotePaymentCouncil.org

Permalink: http://www.businesswire.com/news/home/20100406006898/en/Secure-Remote-Payment-Council-Adds-Members-Development

Interview with Bob Russo, GM PCI Council on End to End Encryption Guidance

The PCI Security Standards Council is studying a number of emerging technologies and plans to issue a guidance document on end-to-end encryption when it releases the next version of the PCI Data Security Standards (PCI DSS), due out in October. Bob Russo, general manager of the PCI Council, said researchers are preparing documentation on what he calls the latest industry "big buzz word." Other technologies being studied include the use of tokenization and chip and PIN technologies to protect credit card data and how virtualization affects data protection technologies. In this interview, conducted at the recent 2010 RSA Security Conference, Russo explains whether the next version of PCI DSS will have any major changes and why the Council takes a cautious approach to adding changes to the standard.



In 2009 there were no changes made to the PCI Data Security Standards. How would you characterize the year for the payment industry, given the massive breach at Heartland Payment Systems Inc. and the down economy?



Bob Russo: In 2009 we were seeing a lot of uptake on the standard. Since it's a global standard, we're seeing it throughout the world. We're doing lots of training and lots of awareness-type seminars for literally every place around the world. All of our training is pretty much sold out. This year we've had to add training sessions so people can understand what the standard is and get better prepared for an assessment. So overall 2009 was a very good year for the Council, but 2010 is a very busy year for us. We're releasing three standards this year in eight different languages, so we're working hard.

Bob Russo

The PCI Security Standards Council recently undertook a study examining emerging technologies that could be used in future versions of the standard. Can you talk about some of those technologies that we may see in the future?



Russo: We're studying a couple [of technologies] right now to give additional guidance on them hopefully this year when we release the standard. Chip (chip and PIN) [is being studied] as an initial technology, because chip is a mature technology. There's a lot known about the technology. We have a lot of experience with it outside the United States, so we're looking at chip and we're actually mapping how chip would compare with the standard. We certainly don't think that there's a silver bullet in any of these technologies, whether it is chip and PIN, end-to-end encryption as the buzz word goes, tokenization or anything of that nature. The second [technology being studied] will be some form of encryption. I don't like the term end-to-end encryption. Whether it is point-to-point encryption, account data encryption or transaction-based encryption, whatever it ends up being, we will be mapping that as well. Then we'll be moving on to other technologies including tokenization and virtualization.  We're creating a framework right now where we map these technologies out and lay them next to the standards, so if somebody is using one of these technologies, [the framework] will let them know if they would satisfy certain requirements.





The standard is due for a revision in 2010. Can you give merchants an idea of what may be addressed?





Russo: At this point we're going through a ton of feedback. Our feedback analysis closes at the end of April. We're finding this feedback fits into three categories: additional guidance, clarifications and then these emerging trends or emerging requirements. With a couple of thousand pieces of feedback that we're looking through, there's conflicting types of things there. We have conflicting opinions on what certain things should be. … The biggest thing that will affect the standard going forward is: how to best protect the data and then how much will this cost a merchant, the return on investment and whether there's anything that changes fundamentally the way the merchant actually will have to comply with the standard in the way they do business. If there's something that changes fundamentally the way they do business, certainly we can't put that in initially and have people go out of compliance. In some cases that would have to be a best practice for a certain period of time. In the last version of the standard, requirement 6.6 was a best practice for 18 months, so people had the opportunity to back into it because it was a big change in the way they complied. It's still too early to tell if this will be a version 2 or a version 1.3.



After the Heartland breach, there's been a push for end-to-end encryption, not only from Heartland but from other payment processors. Is that something the council will look at?



Russo: With end-to-end encryption one of the questions we have is: From what end to what end? That's an issue. It's a very big buzz word. There are no standards yet for this type of encryption and how the keys are handled. In many cases you can end up making things less secure based on how you do this. You mentioned Heartland's [E3 product], that's one solution. There are probably a dozen solutions out there. Do they talk to each other? Are they interoperable? What if a merchant is using more than one? These are things that will have to be considered when looking at this. What we'll be studying is an encryption solution and the minimum level of things that need to be done with an encryption solution. Once we've got that we'll put out some guidance, probably nothing specific within the standard. The standard won't change, but there will be guidance based on using these things.



Tokenization is also making its way in some encryption products. Can that make its way in the next version of the standard?



Russo: Certainly [tokenization] guidance could make its way in. I don't see us requiring any kind of tokenization, end-to-end encryption or chip technology in this version, but certainly [we will issue] guidance on these things. If a merchant has already started down a path and spent some dollars on one technology, certainly it would not be in our best interest to say "you chose the wrong technology now you need to use this technology." So there will be guidance on each one of these things that we roll out.

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