Component Shortages Push Hypercom’s Q3 Revenue Down

Hypercom posted a 15% year-on-year and a 4% sequential decline in third
quarter revenue to $102.4 million. The payment terminal maker was hit
with a triple whammy, namely, component shortages, the exit of a
Brazilian service contract and negative foreign currency rates.
However, the Company expects revenue to increase in the fourth quarter
as it reduces or eliminates supply chain issues. During the quarter,
Hypercom was awarded two certifications for its 32-bit multi-application
“Optimum T4200” and “M4200” countertop and mobile payment terminal
family with French payment authority GIE Cartes Bancaires; IBM Germany
selected “Artema Modular” as part of its self checkout system in five
test sales outlets in Bavaria; RBS WorldPay “Class A” certified the
“Optimum T4210” and “T4220”; EVO Merchant Services “Class A” certified
and will market the “Optimum T4210” and “T4220” terminals to its nearly
200,000 US retail and restaurant merchant customers; First Data’s TASQ
Technology signed a deal to market Hypercom’s “Optimum” multi-lane
terminal family; Apriva “Class A” certified the “SPOS32” payment
software on the “Optimum T4230” terminal; and JR’s POS Depot selected
the “Optimum M4230” payment terminal and is marketing the “Optimum
M4230” multi-application mobile payment terminal. For complete details
on Hypercom’s third quarter performance visit CardData
(www.carddata.com) (CF Library 7/9/09; 7/14/09; 7/17/09; 7/22/09;
8/12/09; 8/27/09; 9/15/09)

HYPERCOM REVENUE HISTORICAL
3Q/07: $ 70.8 million
4Q/07: $ 89.5 million
1Q/08: $ 70.5 million
2Q/08: $124.2 million
3Q/08: $121.1 million
4Q/08: $121.6 million
1Q/09: $ 83.6 million
2Q/09: $106.8 million
3Q/09: $102.4 million
Source: CardData (www.carddata.com)

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Comvest Group Wraps Up Cynergy Deal

Private investment firm The Comvest Group has completed the acquisition
of substantially all of NY-based card processor Cynergy Data’s assets
for $81 million. The sale enables the core operations of Cynergy Data to
emerge quickly from bankruptcy as a new company positioned for growth,
with a well-capitalized partner, a
substantially lower cost structure, and a much stronger balance sheet. The
Comvest Group is investing $35 million into the business.
Cynergy Data is a merchant credit card processing service
provider that gives business owners excellent customer support and
unparalleled merchant services. Cynergy Data manages a portfolio of
nearly 80,000 merchants processing in excess of $10 billion annually.

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NPOWER & NEOVIA

NEOVIA Financial independent global online payments business has renewed
contracts with npower and will continue to be the only provider of
debit/credit payment processing services to all of npower’s 6.8 million
customers paying via telephone or online. npower integrated energy
business, generating electricity and supplying gas, electricity and
related services to residential and business customers across the UK,
uses the NEOVIA Payment Suite. NEOVIA features the NETBANX international
payments gateway and “Net+” cards, the former allowing merchants to
accept card and non-card payments through multiple channels including
online, contact centres, mail order and via automated phone systems and
the latter allowing merchants to extend customer loyalty and lifetimes.

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Card Activation Takes On 45 Retailers

Chicago based payment transaction provider Card Activation Technologies has filed patent infringement lawsuits
against 45 retailers. Card Activation Technologies owns
proprietary patented payment transaction technology used for processing
gift cards, phone cards and other debit purchase transactions. The
company is actively seeking to license its technology to the thousands
of current users and believes that many retailers, gas stations, phone
companies and others that utilize stored value cards, such as gift and
debit cards, infringe its patent. The company is aggressively pursuing
litigation against these infringements.

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U.S. Consumer Economic Pessimism Returns in October

The latest tracking reveals a major decline in economic and financial confidence among women. Overall, consumers are expressing concern about the state of the economy after an optimistic summer. The Discover “U.S. Spending Monitor” for October dropped 3.2 points to 85.8.
About 56% of consumers rated the economy as poor, a 4-point increase from September. Forty-six percent of consumers felt economic conditions were getting worse, a 3-point rise from September and the first increase reported since July. Discover found that 63% said they planned on spending less this year for the holiday season, the same number reported a year ago. Another concern is higher numbers of women (65%) than men (60%) anticipate spending less on holiday gifts this year. More consumers plan to cut overall discretionary spending to compensate. Fifty-two percent plan on cutting purchases like going out to movies or restaurants, a 2-point increase from last month. Likewise, there was a 2-point increase to 52% of consumers who expect to cut home improvement spending. And 51% are planning to cut major personal purchases like vacations in the month ahead, up a point. Even savings weren’t immune, as 40% of consumers plan to save or invest less in November, a 2-point increase.

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Government Payment Service Has New CEO

Payment processing system provider has hired Mark MacKenzie, previously
with JP Morgan Treasury Services, as CEO.
MacKenzie has more than two decades of experience building debit and
credit card payments processing
businesses for national and global companies. Prior to joining
GovPayEXP, MacKenzie held a variety of executive and
management positions including managing director/senior vice president
of JP Morgan Treasury Services; president of JP Morgan Electronic
Financial Services, Inc. (EFS); president, chairman and chief executive
officer of Citicorp EFS; executive director for EFS; vice president of
Citibank; executive director of product management for EFS; and senior
director of product management for EFS. MacKenzie earned a Master of
Business Administration from DePaul
University in Chicago and a bachelor of arts in business administration
and economics from St. Mary’s University in Winona, Minnesota.
GovPayEXP processes millions of dollars in
government payments each year for nearly 1,500 jurisdictions in 33
states. The Internet-based payment processing software enables
residents, constituents and offenders to pay cash bail, parking,
speeding and traffic tickets, child support, court fees and fines, real
estate and property taxes, utility bills or restitution via phone,
online or on-site.

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Fiserv to Launch a P2P B2B Payment Service in 2010

A new person-to-person payment service that utilizes bank-to-bank
transfers will be launched during the first half of 2010.
Fiserv’s new P2P service will be made available to the more than 3,100
financial institutions in the Fiserv online payment network. Using an
e-mail address or mobile phone number, consumers will be able to send
money to anyone. Payments will be deposited directly into the
recipient’s account and confirmation of payment will be sent to the
recipient’s e-mail address or mobile number. Fiserv will employ the
“FraudNet” automated fraud detection system to detect and prevent
fraudulent transactions. The new service will be made available
initially to Fiserv clients using the “CheckFree RXP” online bill
payment platform. According to a Fiserv survey, consumers make
approximately nine billion personal payments each year and the majority
of these payments are currently made with cash and checks. Fiserv also
found that three out of four respondents would prefer a service
offered by their financial institution and 83% of respondents say it’s
important for money to be deposited directly into a recipient’s bank
account, as opposed to other methods.

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Allpoint Adds a Blackberry Application

Surcharge free ATM network Allpoint has a new ATM search app on Blackberry.
The new application joins a 24-hour speech phone system, mobile web
friendly
locator, iPhone and Android applications, as well as GPS
download functionality for Allpoint website search results. The locator
is complimentary to Allpoint cardholders and can be found at
www.AllpointNetwork.com. With the release of the BlackBerry
application, Allpoint now offers free and convenient ways to find
surcharge-free ATMs on more than 85% of the smart phone market.
Electronic services partner LocatorSearch worked with Allpoint in
developing the application.

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TMG Signs Midland CU for Reloadable Cards

IA-based Midland Credit Union and TMG have partnered to add reloadable cards to its lineup of plastic products.
he credit union will roll out the ATIRAreload product this fall. The plastic will be branded with the Midland CU logo. The credit union, with more than 4,700 members and assets of $36 million, will roll out the ATIRAreload product
this fall. The plastic will be branded with the Midland CU logo. Midland CU will set its own terms,
parameters and fees based on the unique needs of its membership and community.
ATIRAreload cardholders who purchase their card from Midland CU will be allowed a maximum load value of $10,000.
SMS text messaging will be available to cardholders who wish to monitor
their accounts via cell phone.

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TEB-BNP & FIRST DATA

First Data electronic commerce and payment processing services has
signed 3-year ATM deployment agreements with TEB-BNP Paribas Bank.
Throughout the course of the agreement, First Data and TEB intend to
create a new network comprising 1,250 ATMs at retail and other
convenient locations in Istanbul and major cities across Turkey. Drawing
on their combined global ATM expertise and 82 years of local market
knowledge to create a premier retail ATM network, the partnership
ultimately aims to increase ATM availability and offer new functionality
to cardholders. TEB’s existing customers and cardholders from other
banks will be able to withdraw cash and use other ATM services,
conveniently and securely while offering retailers a new channel for
communication with customers on which to expand service and generate
additional revenue.

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VISA LAC Q2

Total volume on all Visa-branded products in Latin America and the Caribbean Region (LAC) grew 19% to US$581 billion, on a constant USD basis, for the year ending on June 30th. The number of payment transactions hit nearly 5.2 billion while cash transactions topped 3.2 billion. For the second quarter, Visa LAC reported a 15% growth in total volume versus the same quarter last year, for a total of US$150 billion. Recent Visa announcements in the region include the introduction of NFC payment technology in Brazil, and the launch of Financial Football in Brazil and Mexico, an innovative corporate social responsibility program that leverages the use of video games for educational purposes. At mid-year Visa had 344 million cards in the LAC region. For complete details on all Visa regions for the second quarter visit CardData (www.carddata.com).

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