Smart Card Alliance White Paper Explores Possibilities for NFC in Transit Industry

SOURCE: The Smart Card Alliance

February 06, 2012 13:15 ET

PRINCETON JUNCTION, NJ--(Marketwire - Feb 6, 2012) - With Near Field Communication (NFC)-enabled handsets poised to exceed 100 million in 2012, the Smart Card Alliance Transportation Council today announced a new white paper examining how the transit industry can best make use of this popular new technology.

"One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy," said Craig Roberts, Utah Transit Authority, and chair of the Transportation Council. "This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy."

The white paper, "NFC and Transit," is available for free download by visitinghttp://www.smartcardalliance.org/pages/publications-near-field-communication-and-transit. It explores the use of NFC for payment, transit ticketing and non-payment transit information applications. Topics include:

• Transit mobile applications overview
• NFC applications that can benefit transit including payment, ticketing and information applications
• The NFC ecosystem and stakeholder roles
• Key considerations for developing a mobile strategy
• Examples of NFC pilot projects in New Jersey, London, San Francisco and Germany

"In order to fully realize the benefits of NFC technology, transit agencies need to immerse themselves into the operational details of the NFC ecosystem and thoroughly understand the technology and business models," said Randy Vanderhoof, executive director of the Smart Card Alliance. "This white paper is another piece of the puzzle in terms of fully educating the industry on the ins and outs of NFC."

Participants involved in the development of this white paper included: Accenture; ACS, A Xerox Company; American Express; Ashok Joshi; Collis; Connexem Consulting; Cubic Transportation Systems; Dallas Area Rapid Transit (DART); Giesecke & Devrient; HP Enterprise Services; Identive Group; Infineon Technologies; INSIDE Secure; JPMorgan Chase; LTK Engineering Services; MasterCard Worldwide; MTA New York City Transit; NJ TRANSIT; NXP Semiconductors; OTI America; Quadagno & Associates; Southeastern Pennsylvania Transportation Authority (SEPTA); U.S. Department of Transportation/Volpe Center; VeriFone; Visa Inc.; Washington Metropolitan Area Transit Authority (WMATA).

For more resources, visit the Transportation Council's Open Payment Resources webpage. For more on transit and other news, join the LinkedIn group Smart.Transit, and follow the Smart Card Alliance on Twitter @SmartCardOrgUSA, and Facebook at Smart Card Alliance.

Transit and NFC topics are on the agenda this week at the Smart Card Alliance 2012 Payments Summit, February 8^th -10^th, 2012 at the Hilton Salt Lake City Center in Salt Lake City, Utah. Visit the 2012 Payments Summit event page for more information.

About the Smart Card Alliance Transportation CouncilThe Smart Card Alliance Transportation Council is focused on promoting the adoption of interoperable contactless smart card payment systems for transit and other transportation services. The Council is engaged in projects that support applications of smart card use. The overall goal of the Transportation Council is to help accelerate the deployment of standards-based smart card payment programs within the transportation industry.

About the Smart Card AllianceThe Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology.

Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org.

84.5% Have Privacy Concerns over Google Personalized Search

Consumers Concerned About Personalized Search Results In January 2012, Google announced it would start integrating content from its social network, Google+, into users' search results. This has led to some concerns about privacy and whether the content from Google+, which is not as widely used as Facebook and Twitter, serves as an accurrate enough representation of the conversations taking place in social media.  Full Article

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MasterCard Opens East African Regional Headquarters in Nairobi, Kenya

Global Payments and Technology Company Announces Official Presence across the Region

NAIROBI, Kenya--(BUSINESS WIRE)--MasterCard Worldwide, a global payments and technology company, today launched its official East African regional headquarters in Nairobi, Kenya. This development brings the number of MasterCard offices across the African continent to five, with other offices operational in Cairo, Casablanca, Lagos, Johannesburg and now Nairobi.

“Nairobi’s reputation as an African commerce, trade and development hub made it a strategically sound location for MasterCard to establish its regional headquarters. We believe it is a natural recognition of Kenya’s role as the financial heart of the East Africa region,” says Daniel Monehin, Area Head, East & West Africa and Indian Ocean Islands, MasterCard Worldwide.The Right Honorable Raila Odinga, Prime Minister, Republic of Kenya welcomed MasterCard’s announcement. “We are pleased to welcome MasterCard to East Africa and in particular to Kenya, as we see the region’s growth path continue. MasterCard’s products will see the benefits of inclusion into the financial system extend to many more East Africans, giving them the opportunity to transact electronically with people and companies and so keep their precious money safe and secure, helping to build prosperity for their future.”

The Nairobi office will act as MasterCard’s liaison office for customer banks, business associates and consumers in its main markets of Kenya, Tanzania, Mauritius, Ethiopia and Uganda, as well as across the rest of the East African region, bringing the organisation’s knowledge of electronic payments best practice to these markets.

This will include a significant emphasis in the areas of card knowledge and skills development, advising on development of card acceptance infrastructure, new products, and developing partnerships with 'technology enablers,' as well as retailer education and best acceptance practice.

“We are establishing the new Nairobi office as a gateway through which MasterCard will liaise with its existing customers across the East African region. It will also be a launch pad for further expansion across the region, by providing advice to support MasterCard’s ongoing quest to shift consumers from traditional cash payments to non-cash payment systems, so that they can avoid the costs, risks and inefficiencies associated with cash,” comments Monehin.

Bringing the benefits of electronic payments to people across the African continent is a primary focus for MasterCard. “East Africa, and indeed Africa as a whole, has always been heavily reliant on cash – both in the consumer and corporate sectors,” says Charlton Goredema, Vice President and Market Manager for East Africa and Indian Ocean Islands for MasterCard Worldwide. “This dependence is costly – the costs of printing notes and keeping them secure are significant – and cash payments restrict an individual or company’s economic activity to their immediate geographic area.”

MasterCard has already been active in the Kenyan market working with banks and other business organisations to advise on developing payment solutions that are best suited for Kenyans. Most recently, in collaboration with Airtel & Standard Chartered Bank, the world's first virtual card that operates off a mobile wallet was launched in Kenya.

“PayOnline is a unique virtual card payment solution, developed specifically to address the needs of consumers in Kenya. At the Mobile World Congress 2011 this product was awarded top honours as the Best Mobile Money Product or Solution. PayOnline makes it possible for Kenyan Airtel clients to shop online, even if they do not have a bank account,” says Goredema. “This is just one way that MasterCard products are working to extend financial inclusion to all through the development of solutions that take into account the unique attributes of each local market.”

“MasterCard products make it simple and safe to process electronic payments anywhere in the world,” Goredema points out. “Consumers using electronic payment systems don’t have to worry whether the cash they are carrying is sufficient for their intended purchase, and they do not have to fear for their security, as is common when carrying a large amount of cash on their person.”

In addition, the electronic payments solutions brought to market by MasterCard facilitate transparency in banking, through innovation and security that provide clear transaction records at every step, allowing protection from fraudulent activities. Goredema believes that these solutions are key to the continued success of East Africa’s rapid economic growth.

“MasterCard’s products include debit, prepaid, mobile and credit card payment solutions, which can be used to avoid the pitfalls of cash,” says Goredema. “We have already used these products in a variety of revolutionary applications on the African continent, including prepaid solutions for transport, and the secure disbursement of citizens’ social security payments.”

MasterCard’s global payments expertise will be very relevant across East Africa and particularly in Kenya, as the country evolves to implement the National Payments Systems Bill, passed by the country’s government during 2011.

“We believe that the Bill is a recognition that efficient payment mechanisms are essential to the development of the Kenyan economy, and we look forward to working with policymakers to bring electronic payment solutions to this market,” says Goredema. “We have worked on similar projects across the globe, where we have responded to local needs with products that offer the best of MasterCard’s global experience.”

MasterCard will also be offering the services of MasterCard Advisors into the East African region, helping to ensure that best-practice principles are implemented across the payments network. MasterCard Advisors is the professional services arm of MasterCard that provides payments consulting, information, analytics, and customised services to financial institutions, governments and retailers worldwide.

“We have invested significant resources into understanding East Africa, its business dynamics, how its consumers operate and the unique conditions that make this region one of the most exciting places to do business,” says Goredema. “We realise that there is no one-size-fits-all strategy and each market has its own unique challenges, opportunities and needs. MasterCard has invested extensively in research both on the African continent, and globally, and we are equipped to offer advice on payment industry best practice at every level.

“For MasterCard, the opportunities Africa brings forth will push the payments frontier faster and further than ever before and we continue our vision to realise a world beyond cash, bringing greater efficiencies to the payments system,” concludes Goredema. “We look forward to now working even more closely with our customer financial institutions, businesses and consumers across East Africa to leverage new technologies and innovative payment methods to enable safe, simple and convenient ways for consumers to pay.”

About MasterCard

MasterCard (NYSE: MA) is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities - such as shopping, traveling, running a business and managing finances - easier, more secure and more efficient for everyone. Learn more at mastercard.com or follow us on Twitter@mastercardnews or join the conversation on The Heart of Commerce Blog.

CoVantage Credit Union Deploys Tyfone Mobile Wallet Services to Its Members

February 07, 2012 08:00 AM Eastern Time 

Tyfone’s mobile banking solution brings next generation mobile banking features including mobile banking for non-online bankers and account aggregation to CVCU members

PORTLAND, Ore. & ANTIGO, Wisc.--(BUSINESS WIRE)--CoVantage Credit Union (CVCU), serving 17 counties in Wisconsin and Michigan, today announced the availability of Tyfone mobile wallet services to its members. CVCU teamed with Tyfone to bring mobile wallet services which include Symitar Episys core integrated mobile banking, enhanced strong ID authentication mobile security and a path to NFC contactless payment technology to its more than 66,000 members.

“Our strategy has been to bring comprehensive and integrated mobile financial services to the market and we are happy to see innovative credit unions like CoVantage select Tyfone to power their mobile initiatives.”

Tyfone’s multimode mobile banking solution offers a complete range of features delivered to banking customers via mobile application, mobile websites or text messaging. In addition to standard mobile banking features such as checking balance, account history review, fund transfers, branch and ATM location lookup and customizable alerts, Tyfone’s next gen mobile banking offers:

• Mobile banking for non-online bankers: Most mobile banking solutions are simply an extension of online banking. To ensure all CVCU members can take advantage of mobile banking, a key feature of Tyfone Mobile Banking is its ability to offer mobile banking to 100 percent of a bank or credit union’s customer base, and not limit mobile banking only to those customers subscribed to online banking services. Members can enroll and manage their banking direct from their mobile phone without needing to be an online banking member. CVCU will see additional value by creating a self-servicing member while avoiding the cost of another online banking account.
• Account aggregation: Another key feature unique to Tyfone’s Episys core integrated mobile banking solution is the ability to aggregate accounts so a user can view and manage multiple accounts with just a single login. This account aggregation feature allows a customer to see multiple CVCU accounts (i.e., personal, business and jointly held accounts), in a single mobile banking session. While other mobile banking services require a unique login to manage each respective account, Tyfone Mobile Banking enables a more efficient and easier user experience.
• ORCC Bill Pay: Tyfone’s integration with Online Resource’s (ORCC) bill payment services will give CVCU members the ability to create and manage payees, and schedule and edit bills as needed.
• Mobile remote deposit capture: CVCU plans to add the mobile remote deposit capture (mRDC) feature to their mobile banking offering in Q2 of 2012. This will allow members to use a mobile phone’s onboard camera to photograph a check and remotely deposit the funds using the mobile banking service.

CoVantage, with 9 branches located throughout north central Wisconsin and upper Michigan, and over $944M in assets, has been ranked among the top credit unions in the nation for the value in services provided to their 64,000 members. CoVantage takes a proactive, yet methodical approach in utilizing technology to enhance the efficiency of its internal operations and member services, making it a leading credit union in the Wisconsin and northwest Michigan area.

“CoVantage chose Tyfone because of its unique and innovative vision of the mobile channel which is echoed in its current features as well as its future road map of features including enhanced security and NFC contactless payments. Tyfone’s vision coincides with CoVantage’s long term mobile strategy, making them the natural partner to bring mobile banking to our members,” said Robert Van Abel, CIO of CoVantage. “Tyfone’s Episys core integration gives CVCU the ability to offer unique features such as account aggregation and the ability for non-online bankers to participate in mobile banking, both providing significant value for CoVantage and its members, particularly as our member base ranges from suburban to rural. We strive to make banking easier and more convenient to our entire member base and our partnership with Tyfone helps us deliver on that promise.”

Tyfone Mobile Banking™ is built on top of the company’s u4ia® mobile financial services platform that also enables contactless payments using near field communications (NFC) and strong authentication ID management, providing banks with a multi-faceted roadmap for offering comprehensive digital wallet and payment services.

“By integrating mobile banking with layered security and NFC contactless payments within a single application, Tyfone is enhancing convenience and enabling more mobile money features for CoVantage members. In coming months we will be rolling out even more mobile wallet features including mRDC and NFC contactless payments,” said Mark Miyamoto, director of mobile banking at Tyfone. “Our strategy has been to bring comprehensive and integrated mobile financial services to the market and we are happy to see innovative credit unions like CoVantage select Tyfone to power their mobile initiatives.”

To learn more about Tyfone Mobile Banking visit http://www.tyfone.com.

About CoVantage Credit Union

CoVantage Credit Union is a $944 million financial institution headquartered in Antigo, Wisconsin. The member-owned financial cooperative serves more than 66,000 members through 10 offices located in central Wisconsin and upper Michigan.

About Tyfone

Founded in 2004, Tyfone’s corporate headquarters are in Portland, Oregon, and its Asia-Pacific headquarters are in Bangalore, India. Tyfone connects money and mobility via a highly secure, scalable and flexible mobile financial services solution tailored to meet the evolving needs of consumers, financial institutions, mobile network operators, transportation companies and retailers. Operating in any standard memory card slot, Tyfone’s u4ia® platform and its companion SideTap™ memory card comprise the world’s first patented, neutral, and comprehensive memory card-based payments solution for mobile contactless payments. Tyfone and its partners enable a suite of services including Mobile Banking, Mobile Identity Management, Mobile Remote Payments, Mobile Retail Services and Mobile Contactless Payments. For more information visit www.tyfone.com.

Samsung Cuts LTE Chip Cost in Half

February 06, 2012 04:07 PM Eastern Time 

ABI Research Teardown: Samsung Cuts LTE Cost in Half

NEW YORK--(BUSINESS WIRE)--The Samsung Galaxy Nexus made a big impact on the market in December due to its sleek design, new Android operating system (Ice Cream Sandwich), and NFC capability. The Galaxy Nexus has another notable hidden feature, however: the Samsung Galaxy Nexus modem is constructed with the combination of a Via Telecom CDMA/EVDO Rev. A integrated circuit and a Samsung LTE baseband integrated circuit. This combination is now common for Samsung’s Verizon phones, but the Galaxy Nexus sports a new version of the LTE baseband chip. The new chip is estimated at nearly half the cost of the prior chip’s $23 price tag. This type of cost reduction is an important milestone in securing the rapid migration to LTE throughout the world.

The application processor found inside the Galaxy Nexus is a TI OMAP4460. This processor runs at 1.2GHz and has matched the performance of the prior handset performance leader (Samsung’s own Exynos running at 1.2GHz). The OMAP4460 matched the performance and power consumption for graphics and video test but consumed significantly more power in computational intensive tests.

Major Samsung Galaxy Nexus notables include:

• New Samsung LTE baseband chip
• NFC support, with NFC antenna embedded in the battery
• CSR GPS single chip
• Broadcom Wi-Fi/BT/FM single chip
• Avago LTE PA and GPS frontend
• 1.2GHz OMAP4460 application processor

ABI Research’s “Samsung Galaxy Nexus Teardown” (http://www.abiresearch.com/research/1010492) provides detailed photos, process evaluation, and part descriptions for all of the major components such as power amplifier, power management, baseband processor, application processor, RF, Bluetooth, GPS, WiLAN, and many discretes. Tying all this information together are unique circuit board photos, performance measurements, benchmark data, cost information, and board area data.

It is one of thousands of devices and components – phones, baseband processors, power management, RF front end components, connectivity components, application processors, sensors, and power management discretes – that are torn down and analyzed in the firm’s Mobile Device Teardown Service (http://www.abiresearch.com/product/service/Mobile_Device_Teardown_Service).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

Gemalto to Present at Smart Card Alliance 2012 Payments Summit

February 06, 2012 11:37 AM Eastern Time 

--(BUSINESS WIRE)--Gemalto, the world leader in digital security, will present at the Smart Card Alliance (SCA) 5^th Annual Payments Summit this week in Salt Lake City, Utah.

Topics and Gemalto participants include:

• EMV Universe Workshop (pre-conference), Feb. 7, 9:00 a.m.-5:00 p.m. –
  • Winning and Losing Strategies of EMV Migration panel: Philippe Benitez, VP Marketing, Secure Transactions, Gemalto
  • Lessons Learned from the Canadian EMV Migration panel: Jeff Stroud, EMV Business Development Manager, Gemalto
• Keynote Plenary Panel Session Industry vs Analysts Debate – Can Industry Stakeholders Find a Pathway for Mobile Payments Adoption When There are So Many Options?, Feb. 8, 11:00 a.m. – Moderator Jack Jania, VP Secure Transactions, Gemalto
• EMV State of the Industry panel, Feb 9, 8:45 a.m. – Philippe Benitez, Moderator
• EMV Card Issuance & Terminalization panel, Feb. 9, 10:45 a.m. – Jeff Stroud, panelist
• NFC Applications and Services, Feb. 9, 10:45 a.m. – Amol Deshmukh, Director, Secure Transactions Solutions, Gemalto

Date, Times & Location

Who:			Gemalto, global digital security leader, panel and keynote participant and platinum sponsor
What:			Smart Card Alliance 5th Annual Payments Summit
When:			February 8-10, 2012 (pre-conference workshops on Feb. 7)
Where:			Hilton Salt Lake City Center, Salt Lake City, Utah

For More Information

For more information on the SCA Payments Summit, please visit www.smartcardalliance.org.

For more information on Gemalto, visit www.gemalto.com, www.justaskgemalto.com, blog.gemalto.com, or follow @gemalto_NA on Twitter.

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security with 2010 annual revenues of €1.9 billion and over 10,000 employees operating out of 87 offices and 13 Research & Development centers in 45 countries.

Gemalto is at the heart of our evolving digital society. Billions of people worldwide increasingly want the freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere, in ways that are convenient, enjoyable and secure. Gemalto delivers on the growing demands for personal mobile services, identity protection, payment security, authenticated online services, cloud computing access, modern transportation, e-healthcare and e-government services. Gemalto does this by providing secure software, a wide range of secure personal devices, and managed services to wireless operators, banks, enterprises and government agencies.

Gemalto is a world leader for electronic passports and identity cards, two-factor authentication devices for online protection, smart credit/debit and contactless payment cards, as well as subscriber identification modules (SIM) and universal integrated circuit cards (UICC) in mobile phones. Also, in the emerging machine-to-machine applications Gemalto is a leading supplier of wireless modules and machine identification modules (MIM). To operate these solutions and remotely manage the software and confidential data contained in the secure devices Gemalto also provides server platforms, consulting, training, and managed services to help its 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.

Datacard Group Announces an Equity Investment and Strategic Partnership with DeviceFidelity, Inc.

February 06, 2012 08:00 AM Eastern Time 

Equity Investment That Includes Dallas Venture Partners (DVP) and Datacard Group Solidifies a Continued Commitment to Innovation in Mobile Payments.

MINNETONKA, Minn.--(BUSINESS WIRE)--Datacard Group, the world leader in secure ID and card personalization solutions, today announced an equity investment and strategic partnership with DeviceFidelity, Inc. – a company that develops Near Field Communications (NFC) based plug-and-play technologies, services and payment applications for mobile devices worldwide.

“DeviceFidelity continues to drive the development of NFC-enabled technology and Datacard Group has extensive expertise in card issuance and smart card personalization, which makes the strategic partnership an ideal fit”

This partnership enables Datacard Group to offer DeviceFidelity’s In2Pay^® suite of solutions which use microSD technology to transform smartphones into interactive contactless mobile payment devices. Financial institutions and wireless carriers will now be able to easily issue consumers a credit, debit, prepaid or multi-account mobile wallet that can be used at contactless point-of-sale terminals.

“DeviceFidelity continues to drive the development of NFC-enabled technology and Datacard Group has extensive expertise in card issuance and smart card personalization, which makes the strategic partnership an ideal fit,” said Deepak Jain, president and CEO of DeviceFidelity. “Our combined capabilities and expertise now enable a high volume, flexible and integrated NFC microSD issuance and mobile personalization model for our customers.”

DeviceFidelity’s patented In2Pay solution includes microSD cards, as well as the iCaisse—which is a microSD-enabled protective case for iPhones—that enable issuers to offer a variety of mobile payment solutions, giving consumers the flexibility to use their existing smartphone without having to change mobile phone providers or upgrade the device. The technology also fits with advanced multi-partner wallet programs that have a trusted service manager (TSM) infrastructure, and can be deployed independently from handset makers and telecom operators. In addition, it is fully compliant with payment networks – making it market ready and easy to deploy.

“This partnership effectively expands on Datacard Group’s integrated Secure Issuance Anywhere™ platform, which provides our customers the freedom to manage programs exactly the way they want,” said Russell St. John, senior vice president of global marketing for Datacard Group. “And, as NFC technology continues to be adopted throughout the world, financial institutions will have a great opportunity to capitalize on this by easily complementing their card programs without having to make major infrastructure changes to their existing processes. This enables continuity and consistency between issuing traditional plastic cards and new NFC-enabled applications.”

Datacard Group is joined by Dallas Venture Partners (DVP) as an equity partner in DeviceFidelity. DVP is a Dallas-based firm whose mission is to become the financial partner of choice for technology companies seeking to build world-class businesses.

"Our goal is to invest in companies that can transform global markets and we feel that DeviceFidelity is strongly positioned to make a powerful contribution to the growth of mobile financial services throughout the world,” said Matt Himelfarb, managing partner of DVP. “We are excited about this investment and we look forward to working with Datacard Group to propel DeviceFidelity’s growth.”

About DeviceFidelity

DeviceFidelity, Inc. develops plug-and-play technologies that empower a variety of institutions to deploy their services and applications on millions of mobile phones worldwide. Its patent- pending In2Pay^® microSD and In2Pay^® iCaisse solution transforms popular mobile phones into an interactive contactless transaction device. Using this technology DeviceFidelity launched moneto, the world’s first commercially available mobile payment solution for iPhone and Android. Committed to bringing contactless innovation to the mobile phone, the company has numerous patents pending in both U.S. and international patent offices. DeviceFidelity is a private corporation with headquarters in Texas and offices in California and London. For more information about DeviceFidelity, visithttp://www.devicefidelity.com, follow us on Twitter @DeviceFidelity or at facebook.com/DeviceFidelity. For more information on moneto visit http://www.moneto.me, follow us on Twitter @moneto_me or at facebook.com/monetome

About Datacard Group

Datacard Group is building on a 40-year heritage of innovation and customer success. Our portfolio of solutions, backed by expert service and support, enable card and secure ID programs for financial, government and other markets worldwide. With an unmatched commitment to customer satisfaction, Datacard remains the industry’s leading brand of secure ID and card personalization solutions.www.datacard.com

About Dallas Venture Partners

DVP is a Dallas-based venture capital firm that invests in early and growth stage technology companies with strong management teams and transformative technologies. The firm actively pursues investment opportunities in both seed and early stage institutional rounds. DVP’s mission statement is to become the financial partner of choice for technology entrepreneurs seeking to build a world-class business, but the firm is open to partnering with other venture firms and investment groups depending on the opportunity.www.dallasventurepartners.com

INSIDE Secure Chosen by Leading Smartphone Manufacturer

February 06, 2012 07:00 AM Eastern Time 

To Power NFC Services With a Major Open Operating System Platform

AIX-EN-PROVENCE, France--(BUSINESS WIRE)--INSIDE Secure, a leader in semiconductor solutions for secure transactions and digital identity, today revealed that it is integrating its near field communications (NFC) solutions into a next-generation smartphone from a leading mobile phone manufacturer scheduled to be introduced by mid-year. The new smartphone will run on one of the most widely used mobile operating systems under license, and will utilize the INSIDE MicroRead® NFC controller chip and INSIDE Open NFC™ protocol stack software to deliver a rich set of NFC capabilities to support a broad range of NFC applications.

“We are very pleased to be providing this NFC implementation for this advanced smartphone, and to have earned the confidence of major OEMs and operators in this industry”

“We are very pleased to be providing this NFC implementation for this advanced smartphone, and to have earned the confidence of major OEMs and operators in this industry,” said Charles Walton, general manager and EVP for INSIDE Secure. “Being selected by this major handset maker highlights how our NFC solutions continue to build momentum and achieve strong positions as the NFC market moves into the mainstream.”

According to Walton, INSIDE’s Open NFC software along with MicroRead and SecuRead devices have already been deployed in millions of smartphones.

The INSIDE NFC implementation for the new smartphone features a rich set of NFC capabilities, which will make it possible for people to use their mobile phones to pay when they shop or take public transit, get useful information or call a taxi by tapping smart tags in posters, exchange virtual business cards, pair Bluetooth devices and Wi-Fi networks more quickly and engage in other useful or entertaining transactions. Further details will be announced by mid-year when this new smartphone is planned to be introduced commercially.

Furthermore, INSIDE Secure announced it has shipped 20 million MicroRead® and SecuRead® NFC solutions for use in a broad range of mobile devices since February 2011, with 10 million of those shipments taking place in the past three months.

About INSIDE Secure

INSIDE Secure is a leading designer, developer and supplier of semiconductors, embedded software and platforms for secure transactions and digital security. INSIDE mobile NFC, secure payment and digital security products provide security for a wide range of information processing, storage and transmission applications. The company’s customers are found in a wide range of markets including mobile payment, identification documents, access control, transit, electronic device manufacturing, pay television and mobile service operators. For more information, visit www.insidesecure.com.

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MasterCard Incorporated Reports Fourth-Quarter and Full-Year 2011 Financial Results

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February 02, 2012 08:00 AM Eastern Time 

• Quarter net income of $514 million, or $4.03 per diluted share, excluding a special item
• Quarter net income of $19 million, or $0.15 per diluted share, including a special item
• Fourth-quarter net revenue increase of 20.2%, to $1.7 billion
• Fourth-quarter gross dollar volume up 16.3% and purchase volume up 15.2%

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced financial results for the fourth quarter of 2011. Excluding a special item, the company reported net income of $514 million, up 23.7%, and earnings per diluted share of $4.03, up 27.5%, in each case versus the year-ago period. Including the special item, a $495 million after-tax charge related to the U.S. merchant litigations, the company reported net income of $19 million, or $0.15 per diluted share. The company's total operating expenses, operating income, effective tax rate, net income and earnings per share, excluding the special item, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

“For the full year, despite ongoing economic uncertainties, we posted strong performance ahead of our long-term objectives.”

Net revenue for the fourth quarter of 2011 was $1.7 billion, a 20.2% increase versus the same period in 2010. On a constant currency basis, net revenue increased 20.8% compared to the same period in 2010. Net revenue growth was driven by the impact of the following:

• An increase in cross-border volumes of 17.5%;
• A 16.3% increase in gross dollar volume on a local currency basis, to $863 billion; and
• An increase in processed transactions of 23.2%, to 7.7 billion.

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 15.2% on a local currency basis versus the fourth quarter of 2010, to $648 billion. As of December 31, 2011, the company’s customers had issued 1.8 billion MasterCard and Maestro-branded cards.

“We are pleased with our strong fourth quarter results as we are seeing sustained momentum driven by new deals and the ongoing shift away from paper-based payments,” said Ajay Banga, MasterCard president and chief executive officer. “For the full year, despite ongoing economic uncertainties, we posted strong performance ahead of our long-term objectives.

“Solid execution at the local level continued to result in new business wins in 2011, with a recent agreement from KeyBank that includes PIN debit and our IPS platform, as well as credit and debit deals with nearly 150 U.S.-based independent banks and credit unions. Additionally, we continue to lay the foundation for growth through strategic partnerships with Western Union, Telefónica and Intel to provide consumers in developed and emerging markets with access to more efficient and safer forms of electronic payments,” Banga concluded.

Based on progress to date in mediation related to the U.S. merchant litigations, the company recorded a $770 million pre-tax charge, or $495 million on an after-tax basis, in the fourth quarter of 2011. This special item represents the company’s financial portion of a potential settlement in these cases.

Excluding the special item, total operating expenses increased 11.5%, to $968 million, during the fourth quarter of 2011 compared to the same period in 2010. Currency fluctuations had a minimal impact on operating expense growth. The increase in total operating expenses was driven by:

• A 14.3% increase in general and administrative expenses, primarily due to higher personnel costs in support of strategic growth initiatives and the inclusion of expenses related to acquisitions.
• A 4.8% increase in advertising and marketing expenses to $319 million, primarily due to support of strategic initiatives and sponsorship activities.

Including the special item, total operating expenses for the fourth quarter of 2011 increased 100.1% versus the year-ago period, to $1.7 billion.

Excluding the special item, operating income for the fourth quarter of 2011 increased 33.5% over the year-ago period and the company delivered an operating margin of 44.0%.

In the fourth quarter of 2011, excluding acquisitions, net revenue grew approximately 18%; excluding acquisitions and the special item, operating expenses grew approximately 8%.

MasterCard reported other expense of $2 million in the fourth quarter of 2011 versus other income of $13 million in the fourth quarter of 2010. The change was primarily driven by a decrease in interest income, lower realized gains on sales of investments and equity losses in joint ventures versus the year-ago period.

Excluding the special item, MasterCard's effective tax rate was 32.3% in the fourth quarter of 2011, versus a rate of 28.7% in the comparable period in 2010. The increase was primarily due to a benefit recorded in connection with the repatriation of foreign earnings in the fourth quarter of 2010, partially offset by a more favorable geographic mix of earnings in the current period. Including the special item, the effective tax rate for the fourth quarter of 2011 was a 251.6% benefit, as the charge related to the U.S. merchant litigations is tax deductible in the U.S. and thus impacted the geographic mix of pre-tax income.

During the fourth quarter of 2011, MasterCard repurchased 84,300 shares at a cost of approximately $30 million. Quarter-to-date through January 27, the company repurchased an additional 304,600 shares of class A common stock at a cost of approximately $106 million, with $746 million remaining under the current repurchase program authorization.

Full-Year 2011 Results

For the year ended December 31, 2011, MasterCard reported net income of $2.4 billion, or $18.70 per diluted share, excluding a special item, and net income of $1.9 billion, or $14.85 per diluted share, including the special item. The special item represents the charge related to the U.S. merchant litigations taken in the fourth quarter of 2011.

Net revenue for full-year 2011 was $6.7 billion, an increase of 21.2% versus 2010. On a constant currency basis, net revenue increased 19.5%. Cross-border volume growth of 18.7%, gross dollar volume growth of 16.1% and processed transaction growth of 18.3%, contributed to the net revenue growth in the full-year period. These increases were partially offset by an increase in rebates and incentives due to increased volumes and new and renewed customer agreements.

Excluding the special item, total operating expenses increased 16.0%, to $3.2 billion, for 2011 compared to 2010, primarily due to higher personnel costs related to strategic initiatives and the inclusion of expenses related to acquisitions. Excluding currency fluctuations, total operating expenses increased 14.5%. Including the special item, operating expenses in 2011 increased 43.6%, to $4.0 billion, versus 2010.

For the full-year 2011, excluding acquisitions, net revenue grew approximately 19%; excluding acquisitions and the special item, operating expenses grew approximately 10%.

Excluding the special item, operating income increased 26.6% for 2011 versus 2010 delivering an operating margin of 51.9 % for the full-year period. Including the special item, the operating margin was 40.4% for full-year 2011.

Total other income was $33 million for full-year 2011 versus total other income of $5 million in 2010. This was primarily driven by a decrease in interest expense due to lower interest accretion related to previous litigation settlements.

MasterCard’s effective tax rate, excluding the special item, was 31.8% for full-year 2011, versus a rate of 33.0% for full-year 2010. Including the special item, the effective tax rate was 30.6% for full-year 2011. The decrease in the 2011 effective tax rate was primarily due to a more favorable geographic mix of earnings, including the tax benefit related to the special item, and the recognition of discrete adjustments in 2011 and 2010.

For full-year 2011, MasterCard repurchased 4.4 million shares at a cost of approximately $1.1 billion.

Fourth-Quarter and Full-Year Financial Results Conference Call Details

At 9:00 a.m. ET today, the company will host a conference call to discuss its fourth-quarter and full-year financial results.

The dial-in information for this call is 866-362-4666 (within the U.S.) and 617-597-5313 (outside the U.S.) and the passcode is 24950634. 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 66051474.

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 mastercard.com.

Acculynk Adds to Board of Directors

ATLANTA, Feb 02, 2012 (BUSINESS WIRE) -- Acculynk, Atlanta-based payments provider with the first software-only service for Internet PIN debit payments, PaySecure(R), announced today the addition of Eduardo Tobon to Acculynk's Board of Directors. Mr. Tobon is currently CEO, US Cards and Payments Division, Sovereign Bank, a subsidiary of Banco Santander, S.A.

"Eduardo is a tremendously valuable addition to our Board and brings an entrepreneurial background and wealth of experience in the payments industry, both domestic and international," said Ashish Bahl, Chairman of the Board and CEO, Acculynk. "His knowledge and leadership will contribute significantly to Acculynk."

Eduardo Tobon's financial services experience includes payments, merchant acquiring, treasury management, international trade banking, government banking, international cash management, payroll, insurance, and health savings accounts (HSAs). Mr. Tobon joined Sovereign Bank in 2001. Mr. Tobon serves on the Partnership, Inc. board, on the advisory board for Cambridge College, and as President of the Board with Boston Youth Symphony Orchestras.