PayPal produced the biggest first-day gain for a new offering this year as shares hit $22 on Friday. The payments-via-email provider, left more than $37 million on the table after pricing its shares at $13. Nevertheless the firm gathered $70 million in its IPO that may be needed to cover its legal issues with state banking regulators and competitors. PayPal’s stock opened at $15.41 a share and hit a high of $22.44 on volume of 9 million shares. PayPal’s IPO was delayed after DE-based CertCo filed a patent infringement lawsuit Feb. 4th. CertCo investors include Deutsche AG and Bank One. State banking regulators in New York and Louisiana claim the company is providing unlicensed banking services. PayPal launched its payments-via-email service three years ago and has lost nearly $300 million to-date. The company has 12.8 million clients. The PayPal service is widely used among buyers and sellers of online auction services such as eBay. PayPal members send more than $10 million per day in approximately 200,000 daily transactions. PayPal’s stock opened lower this morning at $19.29 per share. (CF Library 10/2/01; 11/16/01; 2/6/02; 2/8/02; 2/15/02)Details
NYCE Corporation, one of the leading electronic payments companies in the United States, announced that National Bank Equipment Corporation, a Buffalo, New York-based independent sales organization, has chosen NYCE as the processor for its ATM deployment program.
Under the agreement, NYCE will provide terminal driving and automated monitoring support for the company’s automated teller machines beginning February 27, 2002.
“With an aggressive deployment strategy ahead of us, we feel confident that NYCE has the expertise to support our growth,” Tom Kielich, president of National Business Equipment, said. “NYCE understands the unique needs of ISOs and is responsive to those needs, which will help us remain a strong player in today’s competitive ATM deployment environment.”
Once on the NYCE EFT Processing Platform, National Bank Equipment will rely on NYCE for terminal driving and gateway access to multiple networks. NYCE will provide fully-automated terminal monitoring and dispatch, around-the-clock support and unsurpassed processing reliability.
“National Bank Equipment’s decision is a vote of confidence for NYCE,” says Matt Garabedian, director of EFT processing sales at NYCE. “Over the past months, NYCE has been adding a substantial business base of ISOs to our EFT platform, which has given us the opportunity to demonstrate our specialized capabilities to this dynamic market segment.”
About National Bank Equipment
National Bank Equipment, based in Buffalo, New York, is a pioneer of the ATM industry. In addition to being a national distributor of ATMs for multiple manufacturers, the company also offers full service technical support provided by ATM technicians and programmers that have over 35 years in point of banking experience. National Bank Equipment’s collective experience includes an extensive background in data processing, transaction authorizations, point of banking, marketing, and ATM software implementation.
NYCE Corporation is one of the leading electronic payments companies in the United States, providing financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale (POS) and emerging real-time payment solutions. In addition to innovative product development, the company also provides processing services that support ATM management and monitoring services, debit card issuance and authorization solutions. NYCE’s strategic alliance with First Data Corporation (FDC) is a unique model for the industry that combines the strengths of both organizations through product development, service delivery and complementary national/international reach. Comprising 2,200 financial institutions and retail ATM Participants, the NYCE Network processes approximately 100 million transactions per month. NYCE Corporation is headquartered in Woodcliff Lake, NJ, and can be found online at [www.nyce.net].
SchlumbergerSema has deployed solar-powered ‘Pay and Display’ multi-space parking meters in Chicago. The ‘DGLine’ solar-powered multi-space parking terminals were installed in the Taylor Street section of Chicago in late January. The terminals enable the motorist to pay for parking at a centralized parking terminal, receive a receipt, and display the receipt on their dashboard for the allotted amount of time. The City of Chicago says it selected the terminals because of the centralized management system. SchlumbergerSema’s parking solutions control more than two million parking spaces in more than 3,000 cities and 40 countries. The company currently has an installed base of 2,800 units controlling over 100,000 spaces in cities across the US and Canada.Details
A credit card catering to online movie watchers is being launched by CA-based Kanakaris Wireless. Applicants for the card will get 30 days of free membership in CinemaPop.com and AK.TV, the Kanakaris Wireless entertainment channels. The credit card will be marketed to the firm’s 250,000 registered users of CinemaPop.com, and will offer special pricing and immediate access to an online film library. Kanakaris Wireless says the card will produce application fees; user fees; and royalties on movies. The firm delivered the first online motion picture in 1995.Details
Fleet has taken its smart VISA card program to the ‘Platinum’ and ‘Titanium’ level. Both cards offer a 0% 6-month intro rate followed by a LIBOR-based rate subject to an 11.99% floor APR for Fleet relationship customers, or a 12.99% floor APR for non-relationship customers. Both cards carry no-annual- fee, according to CardWatch ([http://www.cardwatch.com/>www.cardwatch.com]). The new Platinum version offers free membership in the ‘Power Rewards’ program offering more than 150 options for airline travel, brandname merchandise and gift certificates. Fleet was among the first batch of issuers to offer the ‘smart VISA’ card. In September 2000, Fleet introduced the ‘Fusion smart VISA’. Providian and First USA also introduced ‘smart VISA’ programs in 2000. At year end 2001, there were approximately 7 million smart VISA cards in circulation in the USA. (See CF 9/12/00; 9/13/00)
eFunds Corporation, a leading provider of electronic payment, risk management and related professional services, announced that H&R Block, the country’s largest tax and financial services firm, is implementing eFunds’ Electronic Check service in more than 5,000 company-owned offices nationwide. eFunds’ Electronic Check service converts paper checks received from clients into electronic transactions at the point of sale, making checks more efficient and cost effective for retailers, financial services companies and financial institutions.
“eFunds’ Electronic Check service will simplify payments for our nearly 17 million clients and provide us with faster fund deposits,” said Frank Cotroneo, senior vice president and chief financial officer for H&R Block. “This service will also lower our operating costs, eliminate paper check processing and reduce the time needed to convert check payments into actual cash receipts. This service will also maximize our cash-on-hand availability.”
With more than 5,000 U.S. company-owned locations, H&R Block represents eFunds’ largest electronic check implementation to date. The tax and financial services firm began using eFunds’ Electronic Check services in December. In addition, H&R Block’s more than 4,000 franchise-owned locations will also have the opportunity to sign up for eFunds’ Electronic Check services.
“We are excited to partner with H&R Block, which is leading the tax services industry by embracing electronic check conversion on a national scale,” said Jerry Lester, senior vice president of Business Development for eFunds. “In addition to cutting check-processing costs, eFunds’ Electronic Check improves cash flow, reduces fraud and cuts down on paperwork.”
eFunds’ Electronic Check converts paper checks into electronic transactions at the point of sale by capturing data from the paper check and transmitting it to the merchant’s financial institution. The merchant receives its funds, and the authorized amount is debited from the consumer’s financial institution account electronically, using the Automated Clearing House (ACH) Network. The ACH Network is the national electronic funds transfer network connecting the nation’s financial institutions.
eFunds’ Electronic Check provides merchants with superior risk management through point-of-sale check authorization, more rapid clearing and faster collections. It also saves retailers the time and expense of back-office paper check processing. eFunds’ Electronic Check benefits financial services companies by reducing transaction processing costs, improving return notification timeframes and providing new opportunities to deliver retail payment services.
eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, e-commerce and business process improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, e-commerce providers and other companies around the world. For more information, visit [http://www.efunds.com].
About H&R Block
H&R Block Inc. is a diversified company with subsidiaries providing a wide range of financial products and services. In 2000, H&R Block served 19.2 million taxpayers — more than any tax or accounting firm — through its more than 10,400 offices located in the United States, Canada, Australia and the United Kingdom. H&R Block served another 2.3 million tax clients through its award-winning TaxCut(R), software program, and through its online tax preparation services. Investment services and securities products are offered through H&R Block Financial Advisors Inc., member NYSE, SIPC. H&R Block, Inc. is not a registered broker-dealer. H&R Block Mortgage Corporation and Option One Mortgage Corporation offer a wide range of home mortgage products. RSM McGladrey, Inc. is a national accounting, tax and consulting firm with more than 100 offices nationwide, as well as an affiliation with 550 offices in 75 countries as the U.S. member of RSM International. Quarterly results and other information are available on the company’s Web site at [http://www.hrblock.com] .
PayPal, Inc. announced that it priced its initial public offering of 5.4 million shares of its common stock at $13.00 per share. The company has granted the underwriters an option to purchase up to an additional 810,000 shares to cover any over-allotments, if any. Salomon Smith Barney served as bookrunning manager for the offering; Bear, Stearns & Co. Inc., William Blair & Company, SunTrust Robinson Humphrey and Friedman Billings Ramsey served as co-managers.
The offering of these securities is made only by means of a prospectus, copies of which may be obtained from Salomon Smith Barney, Brooklyn Army Terminal, 140 58th Street, 5th Floor, Brooklyn, NY 11220 (telephone: 718-765-6732).
PayPal enables any business or consumer with email to send and receive online payments securely, conveniently and cost-effectively. PayPal’s account-based network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system.
PayPal noted that, based on statements recently made by a representative of CertCo, Inc., PayPal expects CertCo to file a motion seeking a preliminary injunction against the company, as early as today, in the patent infringement case that CertCo has brought against the company.Details
First Data Corp., a global payments leader, announced that its card issuing services subsidiary, First Data Resources, has selected leading industry executive FranÃ§ois Dutray as senior vice president of global smart cards. Dutray will lead First Dataâs efforts to build a worldwide, end-to-end chip enabled solution that supports multi-application card issuance and the authentication, authorization and processing of transactions.
âWe are confident that under FranÃ§oisâ leadership, First Data will continue to lead the way in providing advanced chip technology that enables issuers to successfully launch smart card programs,â said Eula L. Adams, senior executive vice president of First Data Corp. and the head of worldwide card operations. Prior to joining First Data, Dutray served as vice president and general manager of worldwide smart card solutions for Motorola and was also instrumental in developing a global smart card product and service strategy for Visa International. As a strong chip technology supporter, Dutray has served on the board of directors of several European companies all instrumental in the manufacturing, distribution and processing of smart cards.
âIâm pleased to be affiliated with a company as innovative as First Data and am looking forward to directing the smart card strategy,â Dutray said.
Since 1997, First Data has a built a strong infrastructure to achieve its goal of providing advanced smart card technology to issuers and acquirers worldwide. First Data was the first U.S. processor certified by both Visa and MasterCard to support the issuance of multi-application cards using the Java/Open Platform and MULTOSTM technologies. Worldwide, First Data plays an integral role in partnering with issuing and acquiring financial institutions for chip personalization, card issuance, card processing, and the maintenance and validation of digital certificates. At year end 2001, First Data had supported more than 10 million smart card accounts on file worldwide and approximately 40,000 smart card point-of-sale terminals throughout Europe and Australia.
About First Data
First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the global economy. As the leader in electronic commerce and payment services, First Data serves approximately 2.8 million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With 29,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; Western UnionÂ® money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its money transfer agent network includes approximately 120,000 locations in more than 185 countries and territories. For more information, please visit the company’s Web site at [www.firstdata.com].
SureFire Commerce Inc. announced that it has signed an agreement with
YellowPages.Com, a leading U.S.
business directory providing information on 14 million local businesses to 6
million unique users every month. SureFire Commerce and YellowPages.Com will
be launching a revolutionary payment solution called Total TransActions to
YellowPages.Com’s members. SureFire Commerce’s Total TransActions solution
allows virtually all small businesses and SOHOs (Small Office/Home Office) to
accept VISA, MasterCard, and FirePay Personal Account brands via a virtual
This means that any part-time or full-time business with access to a Web
browser can start accepting payments in just days without having to build a
Web site with e-commerce functionality. Users of the Total TransActions
solution can accept over-the-counter credit card payments simply by entering a
customer’s credit card information into the Total TransAction’s interface on
the Internet. YellowPages.Com members will be able to accept credit card
payment directly, by phone, and by fax, as well as send and settle invoices by
YellowPages.Com members will benefit from SureFire Commerce’s extensive
online payment experience and their unique, state-of-the-art risk-management
expertise, which allows businesses and consumers to conduct e-commerce with
peace of mind.
“SureFire Commerce is pleased to enter into this agreement with
YellowPages.Com, allowing our company to further its goal of enabling a large
number of businesses to accept a high volume of payments online,” said Rory
Olson, President and CEO of SureFire Commerce Inc. “We believe strongly in the
online payments market for small businesses, service businesses, SOHOs, and
entrepreneurial individuals, and feel a leader like YellowPages.Com, one of
the most recognized Web brands in the world, will drive the right traffic to
our proven payment solutions.”
“Most merchant platforms give lip service to their claim to help local
businesses enable a ‘complete solution’ for adding an online sales channel,
usually failing at the point the local business needs a merchant account.
SureFire is the solution for our members. YellowPages.Com is committed to
providing its members with a merchant platform that actually helps them build
and leverage their offline business as well as their online storefront,” said
Dane H. Madsen, President and CEO of YellowPages.Com. “SureFire’s solid,
flexible, scalable payment technologies will allow our members a quick and
easy way to accept credit card payments, both online or on the phone, and
offer another level of protection to our members who fear online fraud.
Delivering this new capability extends further our commitment to deliver value
to our members and support all of their business efforts.”
Businesses will pay a percentage of each transaction as well as a small
annual fee for the Total TransActions capability. SureFire Commerce Inc. and
YellowPages.Com will share revenue on all fees generated.
As part of this agreement, SureFire Commerce will offer its partners and
merchants the various listing services of YellowPages.Com as an added value.
Privately held YellowPages.Com, Inc. is based in Las Vegas, Nevada, and
is a global leader in business directories and an online source for buyers and
sellers seeking information about U.S. businesses. The site provides more than
14 million detailed business listings and is a valued resource to over 6
million worldwide users each month. According to an ongoing independent study,
YellowPages.Com users have the highest buying power among all Internet
directories and represent the most attractive demographic categories to
retailers and merchants. The service is free to users.
ABOUT SUREFIRE COMMERCE INC.
SureFire Commerce Inc. is a global provider of secure online payment
solutions and e-commerce support, processing over $1.2 billion of online
transactions annually. The Company specializes in payment solutions in three
core areas: Internet payment processing for online merchants, bill presentment
and payment processing for physical businesses, and corporate billing
solutions. SureFire Commerce’s online payment solutions are marketed to
consumers and merchants through strategic partnership agreements with
companies that have significant brand recognition and distribution channels.
SureFire Commerce is headquartered in Montreal (Quebec) with offices in Hull
(Quebec) and London (England).
Coinless Systems Inc., a leading developer, manufacturer and supplier of coinless technology and products for the gaming industry announced that the Company has signed a licensing agreement with Innovative Gaming Corporation of America.
Under terms of the licensing agreement, IGCA is permitted to incorporate Coinless Systems’s patented technology, Scan After Print in all of the slot machines manufactured by IGCA and its wholly-owned subsidiary, Innovative Gaming, Inc. In the agreement, Coinless Systems grants IGCA a non-exclusive license to use devices within the scope of Coinless Systems’s U.S. Patent No. 6,012,832 entitled “Cashless Peripheral Device for a Gaming System” for limited purpose of making, using, offering to sell, and selling gaming machines incorporating devices within the scope of (the ‘832 patent) so long as such devices are acquired from Coinless Systems or a licensed manufacturer or Coinless Systems.
“IGCA acknowledges the validity and enforceability of Coinless Systems ‘832 patent, ‘Scan After Print’ Technology and intends to endorse this technology through its sales and advertising materials for its Coinless Slot Machines. In addition, IGCA will recommend Coinless Systems UVASHIELD coated tickets for dispensing to casino customers,” stated IGCA President Laus M. Abdo.
The UVASHIELD coating protects the ticket against sun, light, alcoholic beverages, and water damage as well as increasing the life of the printers with less wear and tear on print heads.
“Innovative Gaming Corp. continues to focus its sales and marketing efforts on Indian casinos and continues to place machines in numerous Indian casinos in California, Arizona, New Mexico, and across the mid-western United States. Many of our Indian casino customers are placing repeat orders with IGCA for additional product,” added Abdo.
About Innovative Gaming Corporation of America
Innovative Gaming Corporation of America, through its wholly-owned operating subsidiary, Innovative Gaming, Inc., develops, manufactures and distributes fast playing, high-entertainment gaming machines. The Company distributes its products both directly to the gaming market and through licensed distributors. Further information on IGCA is available at [http://www.igca.com].
About Coinless Systems, Inc.
Coinless Systems Inc. is a Las Vegas, Nevada based developer, manufacturer and supplier of coinless technology and products for the gaming industry.
Its principle products are tickets for coinless gaming machines and Scan After Print(TM), a patented process that instantly verifies and ensures the accuracy of bar coded tickets at the slot machine as well as the cashier cage.
Payment Services Interactive Gateway
CDNX: PMC), provider of secure, cost-effective and trusted e-
commerce solutions in Canada and the U.S., has added online banking to its
industry leading merchant processing solutions. Internet-enabled financial
services through TheBancorp.com Bank, a privately held online banking service,
will be provided via PSiGateBank.com, a new website to be activated early this
This new service is an extension of PSiGate’s current merchant processing
services, enabling Canadian retailers to establish U.S. Business Bank Accounts
and end users to establish Personal Bank Accounts. The launch provides a true
end-to-end e-payment solution for merchants, offering a direct link between
merchant accounts and operating account-reporting functions.
“Once again, PSiGate is leading the way with this innovative offering”,
said Steve Jasper, PSiGate Vice President of Product & Business Development.
“By providing a one-stop operation, merchants can expand their services and
reach into untapped markets. We at PSiGate are dedicated to maximizing the
options available to our loyal base of online merchants. Following on the
heels of our offering to operate in U.S. funds, the PSiGate suite of e-
commerce solutions just got better with the introduction of a full range of
personal financial services through the services of TheBancorp.com, a
respected, accredited and fully insured ‘virtual’ bank.”
“We are excited to be doing business with PSiGate and look forward to
providing U.S. banking services for their merchants.” said Kate Root, Senior
Vice President, Merchant Strategy for TheBancorp.com Bank.
The program has already been integrated into PSiGate’s application
process. Soon merchants will be able to sign-up for U.S. bank accounts online,
regardless of where they are physically located. The partnership between
Payment Services Interactive Gateway and The Bancorp.com Bank, allows PSiGate
clients to integrate their banking within their online merchant operations.
Financial services such as Personal Bank Accounts, Business Bank Accounts,
Cash Management Services, are now available with a few keystrokes.
Canadians are familiar with online banking. Recent deregulation in U.S.
legislation has opened up the financial-services industry in that country.
PSiGate has seized this opportunity to provide an exciting range of services
to its clients and to the public.
About TheBancorp.com Bank
TheBancorp.com Bank is a privately held, FDIC-insured bank that
specializes in delivering private label Internet-enabled financial services.
The all-Internet company, with offices in Wilmington, DE and Philadelphia, PA,
focuses on building relationships with large affinity groups, customizing
websites for private-label banking, to their partners and members.
TheBancorp.com Bank has over 140 years of combined executive banking and
financial services experience.
Payment Services Interactive Gateway (PSiGate – www.psigate.com) empowers
businesses on the Internet by providing secure, cost-effective and trusted e-
commerce solutions. PSiGate provides an easy and seamless interface to new or
existing online commerce enterprises, offering a reliable means of real-time
payment collection and financial transaction processing. Management services
include automated shipping calculations, fraud screening, credit card batch
processing, and financial account reporting. PSiGate also provides VISA,
MasterCard and American Express Internet Merchant Accounts (Merchant IDs) for
Canadian-based businesses and companies wishing to enter into the Canadian
marketplace. PSiGate can also offer U.S. Merchant IDs to American merchants.
Hotel Reservations Network the leading provider of discount hotel accommodations worldwide, and MasterCard International announced a strategic alliance, naming the payments association the preferred global payment brand for three of its wholly-owned hotel booking sites, [http://www.hoteldiscount.com] , [http://www.180096hotel.com] , and [http://www.travelnow.com] .
Under the terms of the agreement, MasterCard and HRN will jointly develop and promote special hotel offers available exclusively to MasterCard cardholders. The first promotion currently underway, for example, offers consumers a rebate of $25 when using a MasterCard card to purchase a minimum 3-night stay at any of the 4,500 global partner properties available online through HRN. HRN is the Internet’s largest source of discount accommodations worldwide, providing access to more than 4,500 premiere properties in more than 178 major destinations in North America and Western Europe.
“MasterCard enjoys a long and successful history of bringing the benefits of our global brand to our cardholders, member financial institutions and merchants, such as Hotel Reservations Network,” said Fred Gore, senior vice president of North America Acceptance, MasterCard International. “Our alliance with HRN will provide MasterCard cardholders a vast, worldwide selection of differentiated lodging properties and a consistent value when they pay with their MasterCard card on the Internet.”
“The agreement is a great opportunity for MasterCard cardholders to take advantage of HRN’s incredible hotel values in great locations, as well as our availability of rooms during popular sold-out periods,” stated Bob Diener, president of Hotel Reservations Network. “We are happy to be able to help travelers lower their costs, not only by offering the lowest available rates, but also by extending MasterCard cardholders the first of many exclusive promotions, a further $25 rebate on any stay of 3 nights or more when they use their MasterCard card.”
As part of the agreement, HRN will promote MasterCard as its preferred payment brand through its communications vehicles to consumers, including point-of-sale materials as well as through its websites. In addition, MasterCard will promote HRN’s 4,500 properties on its website.
The alliance with HRN represents a key addition to MasterCard International’s travel category strategy. Over the past five years, MasterCard has created an impressive network of partners that provide consumers with a wide variety of options when purchasing travel, both online and at the retail merchant. This latest agreement solidifies MasterCard’s continued commitment to working with the travel community to uncover new ways to deliver MasterCard cardholders greater choice and value.
About Hotel Reservations Network
Hotel Reservations Network, a majority-owned subsidiary of USA Networks, Inc.’s (Nasdaq: USAI) Interactive Group, is the leading provider of discount hotel accommodations worldwide, providing service through its own Web sites (http://www.hoteldiscount.com , [http://www.180096hotel.com] , [http://www.condosaver.com] , [http://www.travelnow.com] , [http://www.acenethotels.com] , and [http://www.allluxuryhotels.com] ), more than 23,000 affiliated Web sites, and three toll-free call centers (1-800-96-HOTEL). HRN provides travelers with a one-stop shopping source for hotel pricing, amenities and availability. HRN also specializes in providing travelers with accommodations for sold-out periods.
About MasterCard International
MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award- winning Priceless advertising campaign is now seen in 80 countries and in 40 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At September 30, 2001, gross dollar volume exceeded US$704 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com] .