San Francisco-based NextCard, Inc.announced Monday it has raised $38 million in a third round of equity financing from Moore Capital Management, Kleiner Perkins Caufield & Byers, Sequoia Capital, and Highland Capital Partners. NextCard’s investors from its first and second round of financing include Brentwood Venture Capital, Trinity Ventures, St. Paul Venture Capital and Forrest Binkley & Brown. Since its launch in December 1997 approximately 500,000 consumers have applied for the ‘NextCard Internet VISA’, and the company is generating over $15 million per month in balance transfers. The card is offered exclusively through the Internet and offers credit approvals within seconds. NextCard is marketed through a strategic relationship with Heritage Bank of Commerce in San Jose, CA..The company said yesterday it has now become a top 20 online advertiser. NextCard advertises in USA Today Online as well as CardWeb’s online consumer channels. The start-up firm says it has captured as much as 20% of the market for online credit card applications in just nine months, based on two independent studies from Cyber Dialogue, Inc. and Brittain Associates. The privately held company recently changed its name/structure to NextCard, Inc., from Internet Access Financial Corporation.Details
SLM Software Inc., a leading global provider of electronic transaction management solutions, announced Monday that it has completed the acquisition of Bankline Holding, Inc., a privately-held, leading supplier of client server retail banking systems and data processing services including imaging for community financial institutions in the U.S. The SLM/Bankline combination creates a leading single source provider of in-house and outsourced electronic financial service solutions in the U.S. With strong brand equity, customer service and management expertise, SLM is well positioned to deliver a greater array of financial transaction management products and services to community financial institutions in the U.S. who want to remain competitive in this consolidation-driven industry. It also allows SLM to derive greater market share in the U.S. and extend its global reach.
“We have already received early positive response from customers eager for the expanded suite of products and services now available to them. The benefits of this combination extend to all stakeholders. Enhanced shareholder value is possible by more than doubling sales and earnings performance. And employees become part of an even stronger and fast-growing market leader. The Bankline acquisition represents an important milestone in SLM’s U.S. market entry,” said Govin Misir, CEO, SLM Software Inc.
John French, CEO of Bankline Holding Inc. and now CEO of SLM’s U.S. Operations, added “The opportunity to serve the community financial industry with affordable, leading technology has never been better. We have already taken active steps to leverage the synergies between our two organizations to help financial institutions deliver the services their customers demand.”
The purchase price was approximately US$20 million and was paid with 1.2 million in common shares of SLM, and performance-based stock warrants based on a price of US$9.81, exchangeable for up to an additional 254,000 common shares of SLM, and will be payable with US$8.6 million in cash. The 1.2 million common shares are escrowed for a 2-year period, as well as any common shares issued out of the warrants.
About SLM Software Inc.
Founded in 1986, Toronto-based SLM Software took an early lead in the electronic financial revolution. Its open systems technology set the standard for on-line transaction management, enabling true hardware, database and protocol independence. SLM was the first to offer the financial services and health care markets the compatibility, flexibility and upward scalability necessary for global electronic service delivery. SLM’s state-of-the-art ESP-Link product solutions help organizations maintain their competitive advantage in 52 countries on five continents, powering end-to-end electronic commerce solutions from credit and debit cards, smart cards, ATMs, point-of-sale terminals, in-branch services, Internet, telephone and PC banking systems to wealth management and integrated, on-line medical insurance claims processing.
About Bankline Holding Inc.
Based in the greater Kansas City area, Bankline is a recognized leader in client server information products and services including imaging for community financial institutions in the U.S. Bankline’s Windowsr based retail banking software, MicroSOLV, is Y2K compliant and operates on a relational database in an open systems environment. MicroSOLV includes fully integrated core banking applications, retail and branch automation systems, check imaging and a complete range of support systems and interfaces. As a full service provider, Bankline supplies nearly 400 clients turnkey in-house installations and services including outsourced data processing, imaging, back office, as well as facilities management. Bankline operates 14 data centres in eight states and has a system integrator in Tennessee.Details
Key Tronic Corporation introduced the ‘Secure Scanner’ keyboard with a smart card reader yesterday. The new product provides the ultimate in authentication of users through fingerprint recognition. Now, someone using a smart card for transactions or distribution of the information stored on the smart card, can verify that they are the owner of the card through fingerprint recognition. The master fingerprint file can be stored on the smart card, making any transaction with that particular smart card to require fingerprint authentication before completing the transaction. Both features can work independently of each other as well for network access control and smart card transactions. The keyboard features the Key Tronic ‘Secure Scanner’ on the left. This optical scanner is the ‘DFR200’ scanner from Identicator, Inc.Details
Bank of America said Monday it will enable its commercial credit card customers to access the power of a transaction information management system that uses Web-based, point-and-click technology to set new standards of speed, accuracy and cost-efficiency. The online account management and reporting system, ‘EAGLS’ will be available mid-year 1999. ‘EAGLS’ was originally designed with the requirements of the federal government’s General Services Administration in mind. ‘The system has now been modified to meet the needs of private sector customers. ‘EAGLS’ allows users to set up accounts, maintain them, and view regularly scheduled reports, as well as write their own reports with new flexible management information tools. The system also provides superior controls, expedited cardholder setup and on-line access to at least 13 months of data. End-to-end purchasing capability will be delivered through an electronic mall interface, accompanied by electronic reconcilement and EDI capability.Details
Destiny Software Corporation announced Monday that it has received equity investments from Pennsylvania Early Stage Partners L.P., Newlight Associates L.P., and Women’s Growth Capital Fund. Destiny Software, a leading provider of online systems for credit card issuers and other financial institutions, will use the new funds to extend its product lines and intensify penetration into new markets.
“Destiny Software represents an exciting opportunity,” stated Stephen L. Amsterdam, a Principal of Pennsylvania Early Stage Partners. “Destiny has both an outstanding management team and robust technology, in addition to fitting well within our charter to assist in the growth of attractive Pennsylvania-based enterprises.”
Mr. Amsterdam and Robert Brill, General Partner of Newlight Associates, L.P. have joined Destiny’s Board of Directors. Both Mr. Amsterdam and Dr. Brill bring extensive experience in entrepreneurial and technology ventures to the company. Referring to the reason his firm invested in Destiny Software, Dr. Brill commented, “We were primarily attracted to Destiny for the exceptional management and technical teams they’ve created.”
“The experience and stature of our new investors will help us to build our leadership position in online financial services,” remarked Lucinda Duncalfe, Chief Executive Officer of Destiny. “Strong investor support is a key ingredient for growth. Pennsylvania Early Stage Partners, Newlight Associates, and Women’s Growth Capital Fund are top notch, and we’re delighted to have them as business partners.”
Newlight Associates led this round of venture capital financing. These venture capitalists join Blue Water Capital L.L.C., which provided Destiny with its initial round of venture funding in May 1997.
Pennsylvania Early Stage Partners is a $50 million venture capital fund associated with Safeguard Scientifics, Inc., a strategic information systems company with a proven track record of bringing emerging technology companies into the public markets. Pennsylvania Early Stage Partners seeks to invest in promising early stage companies with the potential for exponential growth, located primarily in Pennsylvania, or those willing to relocate operations to the Commonwealth. The fund has a strong emphasis on technology and looks for opportunities with market leadership potential and outstanding management.
The Newlight Associates Funds are focused private equity funds that invest principally in high growth technology-oriented businesses. The Funds began operation in 1997 and are capitalized at $50 million. The investors that provide Newlight’s capital base range from global financial institutions to entrepreneurs. One of the largest of its kind, the Women’s Growth Capital Fund is a $29 million venture capital fund that invests in established, women- owned businesses seeking expansion capital, primarily in the Mid-Atlantic Region.
About Destiny Software
Destiny Software, with offices in Conshohocken, Pennsylvania, provides online products and services to financial institutions. Granite Foundation, Granite Sculptor, Granite Retail Card, and Granite Commercial Card allow credit card issuers, private banks, and other financial institutions to deliver their products over the Internet, Open Financial Exchange (OFX), America Online and other electronic channels. Destiny’s clients include Bank of America, The Northern Trust Company, First USA, Advanta, and GE Capital. The company’s web site is located at .Details
Utell International has paired up with MasterCard, offering leisure travelers added values on 38 hotels throughout North America, Europe and the Caribbean.
Now through March 31, 1999, the Fall/Winter edition of the Leisure Breaks program will entice travelers with several diverse getaway options.
Leisure Breaks destinations range from British Columbia to Barbados and from Illinois to Italy. Guests staying at participating hotels and paying with MasterCard will receive added values, some of which include: room upgrades, complimentary breakfasts, discounts on food or access to fitness centers. Added extras vary for each hotel and are designated by the individual property.
Utell International, a REZsolutions Inc. company, is the world’s leading hotel marketing and reservations company representing more than 7,700 hotels in over 180 countries. Member properties range from budget to deluxe, city center to resort and include major international brands as well as independent hotels.
For more information or to make reservations with a Utell-represented property from the U.S. and Canada, call 800/44-UTELL. REZsolutions Inc. is the result of the merger of Anasazi Inc. and Utell International and is the leading provider of technology-based systems, reservation and distribution networks, private label reservations services and marketing programs for the hospitality industry.Details
Microsoft and smart card innovator CyberMark announced they will jointly work with several customers in the United States to pilot Microsoft’s newest entry to the smart card market, Microsoft Smart Cards for Windows. CyberMark cards enable students on college campuses and employees in corporate facilities to replace cash at numerous points of sale, access physical buildings and computer networks, and link to a wide range of banking, telephony, and customer loyalty functions. Several of CyberMark’s key customers — including Florida State University, Villanova University, and Huntington Bank — have agreed to pilot the CyberMark card utilizing the new Microsoft operating system.
“Microsoft’s entry to the smart-card market validates the market for stored-value cards in the United States and represents a breakthrough in cashless payment technology on an international scale,” said Thomas K. Burke, vice president for CyberMark. “As the market leader in North American stored- value systems, we anticipate rapid acceptance of Smart Cards for Windows in our market segments and look forward to a very successful pilot program.”
CyberMark has been a pioneer in the smart card industry, ascending to its industry leading position by providing customers with multiple application smart cards to solve basic business needs. Microsoft’s entry to the market is seen by many as a significant milestone in the history of the smart card industry. “For CyberMark,” says Mr. Burke, “Microsoft’s involvement provides this industry a partner with unequaled credentials and resources.”
“Smart Cards for Windows was developed to assist organizations such as CyberMark in delivering more economical smart card solutions while supporting evolving industry standards,” said Philippe Goetschel, Microsoft’s Smart Cards for Windows product manager. “The system takes full advantage of proven software development tools such as Visual Basic, enabling applications to be developed quickly to meet business needs. CyberMark will play an important role in establishing Smart Cards for Windows in several North American markets, starting with our pilot systems in key CyberMark accounts in higher education and corporate markets.”
CyberMark () develops smart card solutions for education, corporate, financial, government and entertainment markets. One-half million individuals utilize CyberMark’s multi-application smart cards at installations including the University of Toronto, the University of Kansas, University of Arizona and more than a dozen additional sites. Cardholders conduct smart card based payments using their cards at locations displaying the SmartWorld logo. SmartWorld is a registered trademark of CyberMark.Details
Diebold, Incorporated appointed John M. Deignan managing director, Diebold-Safetell, Australia, a wholly owned subsidiary. Based in Melbourne, Deignan will be responsible for the overall operations of Diebold-Safetell serving the Australian and New Zealand markets. He will report directly to James L.M. Chen, corporate vice president and managing director, Asia/Pacific, Shanghai, China.
“John brings significant experience in helping banks implement ATM deployment strategies and has developed a keen understanding of retail banking issues,” said Chen. “I am confident he will lead Diebold-Safetell in becoming a premier provider of self-service solutions to the Australian banking industry.”
Deignan joined Diebold in 1991 as account manager in Chicago. Most recently, he held the position of national account executive in Minneapolis. Deignan received a bachelor’s degree in business economics from Marquette University in Milwaukee and a master’s degree in international business from Roosevelt University in Chicago. Deignan a native of Monroe, Wis., will be relocating to Melbourne shortly.
Diebold, Incorporated (pronounced DEE-bold), headquartered in Canton, Ohio, USA, is a global leader in providing card-based transaction systems, security and service solutions to the financial, education, healthcare, utility and retail industries. Founded in 1859, the company develops, manufactures, sells and services automated teller machines, campus and card systems, electronic and physical security equipment, automated medication and supplies dispensing systems, integrated systems solutions, software and banking supplies. For more information about Diebold, Incorporated, visit the company’s Web site at .Details
An increasing number of Paymentech merchant processing and commercial card clients are utilizing Internet reporting tools to manage payment related information. This movement to harness the Internet as a practical management tool for financial data goes beyond web marketing and sales.
Paymentech demonstrated its Internet reporting applications at the Treasury Management Association conference in Orlando. Responding to client demand, Paymentech developed three Internet products that increased internal efficiencies and added value for clients by simplifying data management for different customer bases. Paymentechâs commercial card unit converted 200 large market customers in just six months to its industry-leading PaymentNetâ¢, an Internet reporting system for purchasing, corporate and fleet card clients. Paymentech also converted over 1,200 smaller customers to a small business version of PaymentNet. Another web-based reporting product allows Paymentechâs direct marketing merchants to access credit card transaction data. For this same customer segment, the company also delivers daily activity files via a fast and automated E-mail process.
The companyâs orchestrated effort to deploy Internet solutions across business units has also received an industry accolade. Dallas-based Paymentech was recently awarded that cityâs Arthur Andersen Best Practices Award for Unleashing the Power of Technology. The award recognized the Internet reporting strategy and the products being implemented.
According to Michael P. Duffy, chief operating officer, Paymentech employed a new technology team to ensure that different Internet applications shared technological resources and leveraged the common infrastructure of a company-wide customer web page. âAll Internet products share communication lines and servers, including backup systems,â said Duffy. âThis cooperative approach between units eliminated duplicate start-up costs.â
First-to-market PaymentNet has been a major factor in a third of Paymentechâs recent commercial card sales. The program provides password protected access to a companyâs purchasing and/or corporate card activity. With PaymentNet, large and mid-sized clients establish parameters for data access, including query definitions, multiple simultaneous users, and cost allocation interfaces to accounting systems. PaymentNet reporting expedites data delivery in contrast to downloading complex file formats that slow down a clientâs internal systems and require extensive programming to edit. In addition to standard reports, information can be channeled into different accounting allocations by default and through query capabilities. A companyâs card program administrator, to eliminate internal redistribution of reports, presets access levels. A companyâs transactions are then periodically âmappedâ into the financial systems using accounting codes (cost center, department, project, etc., up to eight different user-defined options) based on cardholder defaults, merchant category code, unique supplier identification or split across multiple accounting codes for all MasterCard and Visa transactions.
âCommercial card clients receive customized data quickly and securely. That enables them to monitor, analyze and manage purchasing, travel and entertainment, and fleet expenditures more effectively,â said James W. Baumgartner, president of Paymentechâs commercial card unit, which issues MasterCard and Visa products. âPaymentNet also provides real-time maintenance of cardholder accounts, review of exceptions, and on-line submission of disputes to customer service.â
PaymentNet is platform independent and requires no system integration. Access is available via any SSL compatible Internet browser, such as Explorer 3.0+ or Netscape 3.0+. With the quicker development cycle of Internet reporting, new reports and data analysis functionality can be delivered within a few days.
PaymentNet customers, such as Houston-based Browning-Ferris Industries (BFI), report substantial savings. BFI utilizes Internet reporting with its purchasing card program. âManagers of card users quickly review transactions,â said Terry Taylor, BFIâs divisional vice president. âThat enables us to effectively manage purchases across the country and moves accountability to program users.â
Similar to PaymentNet, direct merchant web-based reporting provides real-time, on-line access to Paymentechâs database. Direct marketing customers view enhanced data with a six-month transaction history that includes authorization, deposit, chargeback, retrieval request and re-authorization information. Available now to a select group of merchants, Paymentech will continue to roll out Internet reporting to other appropriate client groups.
With web-based reporting, Paymentech reduces call center activity dedicated to information requests. Merchants previously needing updated transaction data had two options: (1) telephone the call center to receive bank transfer information and transaction history (over 270,000 calls annually); or (2) use Interactive Voice Response (IVR) for limited deposit and refund information (over 300,000 yearly calls). Authorization and chargeback data was not available on the IVR.
By securely accessing web-based reporting for inquiries, merchants enjoy improved availability of information. It is available 24 hours a day. Customers also save time and money by eliminating phone calls to Paymentech.
Finally, Paymentech uses Internet electronic mail to replace paper-based merchant processing transaction detail reporting. Direct marketing merchants received activity statements via U.S. mail or fax. Large merchants accepted more than 100 pages a day. âEmail Reportingâ proved a faster delivery system while still easy to implement by all sizes of merchants.
Email Reporting extracts processing data and sends a secure PGP encrypted ASCII file via Internet into a customerâs E-mail system. The data is quickly and easily imported by customers into spreadsheets, accounting software and databases.
Many merchants reported a three-hour daily work reduction. One merchant imports data into an order database, automatically matching chargebacks to original transactions. Another client imports data into its accounting software program and reconciles activity daily, saving three to five man-hours of work.
With E-mail delivery, Paymentech eliminated postage, paper and hours of mailroom labor. Merchants save money by the elimination of receiving fax documents and the associated printing, paper and storage costs.
Paymentech, Inc., founded in 1985, provides full-service electronic payment solutions in merchant acquiring, third-party transaction processing and commercial card payment and information programs. The company processed 1.9 billion total transactions and approximately $49.3 billion in sales volume in fiscal year 1998. Paymentech is the third largest processor of bankcard transactions and a leading issuer of commercial cards in the United States.Details
CoVest Bancshares announced Friday that its CoVest Banc subsidiary has entered into an agreement to sell its credit card portfolio to Banco Popular N.A. (Florida). The transaction is expected to close on or before Nov. 16. CoVest says the size of its credit card portfolio decreased one-third to approximately $11 million over the last several years due to competition from the major players. Loan Trade, Inc. of Ft. Lauderdale, FL facilitated the transaction.Details
3-G International, Inc. announced last week the availability of Passage Enterprise, a turnkey multiple application smart card solution for corporations and other organizations. The 3GI offering includes six smart card applications, all required software and hardware, and a card management system that allows organizations to issue personalized multiple application smart cards to employees.
The Passage Enterprise system features public key smart cards and a wide range of logical security and physical access applications. 3GI’s solution also includes a card management system, which enables system administrators to personalize the smart cards, encode the cards with specific data, issue, track, and replace cards. The offering includes comprehensive training, installation services, and documentation to support customer installations and 3GI partners.
“Passage Enterprise is an affordable, turnkey smart card solution for corporate environments of any size,” commented John McKeon, 3GI’s Director of Smart Card Solutions. “With Passage Enterprise, we’re making it very easy for card issuers, IT providers, and others to offer a comprehensive smart card solution to their corporate customers. Those customers will realize the security and convenience of advanced smart card technology in a fully integrated and extensible card system.”
Passage Enterprise enables corporations and other organizations to increase the security of their networks and data by requiring the use of smart cards as an access token for logging on to PCs, Networks, Web Servers, and other data repositories. Passage also enables cardholders to use cards to digitally sign email messages in standard email packages and encrypt sensitive data. The smart card provides an added layer of security because it stores digital certificates, digital keys, and biometric templates securely on its computer chip rather than on a computer hard drive which is more vulnerable to attack.
In addition to the logical security and network access applications, the Passage Enterprise solution includes physical access and related inventory management applications. One card controls access to physical facilities, corporate facilities and events, as well as to IT networks.
Passage Enterprise is an open architecture smart card solution, and includes support for multiple types of public key smart cards, standard web browsers and email packages from Microsoft and Netscape, standard x.509 digital certificates, and standard encryption and network security protocols such as Secured Socket Layer protocol version 3 (SSL3) and SMIME.
3GI intends to work closely with its hardware partners and other organizations in the distribution of the solution. According to Steven Humphries, CEO of SCM Microsystems Inc. in Los Gatos, CA “SCM Microsystems is looking forward to working closely with 3GI as a primary hardware supplier for the Passage Enterprise smart card solution. SCM has a long history of working with 3GI in delivering smart card solutions to the market, and this offering is a good example of the value added smart card solutions we can offer.” SCM Microsystems is the leading global smart card reader manufacturer and a featured hardware component in Passage Enterprise.
For further information on Passage Enterprise, visit 3GI’s Web Site at [www.3gi.com].
ABOUT PASSAGE ENTERPRISE APPLICATIONS
– Secure Web Access — Protects access to sensitive data published as Web documents on an enterprise intranet/extranet. A digital certificate and the user’s public/private key pair stored on the card allows the user to complete public key mutual authentication with the enterprise web server and achieve access to privileged data.
– Network Security — Passage Enterprise makes secure network access fast and convenient with single sign-on capability, including several applications that manage access to workstations, networks, and sensitive data.
– Secure Email — The storage of a digital certificate and key pair on the card allows users to digitally sign and/or encrypt data sent via electronic mail. This operation works with popular e-mail applications such as MS Outlook or Outlook Express.
– PC Logon/Screen Saver — The personalized public key smart cards enable users to log on to Windows NT Operating Systems securely and supports biometrics verification. Workstations are set up to require cards for access and to lock the workstation when cards are removed.
– Physical Access — The application uses smart cards to control facility access. The application allows security managers to create, assign, modify, and remove electronic keys for specific locations and to write specific keys to employee smart cards
– Property Pass — The Property Pass application provides increased accountability and control over property and equipment such as laptop computers. Property is reliably and conveniently tracked as checkout permissions are assigned to users via the card.
– Event Ticketing — Registration and coordination of corporate events is streamlined with this general tracking application. Both event organizers and attendees enjoy greater convenience. In addition, attendance tracking is made simpler and more accurate.
– Card Management — A comprehensive card management system, enabling system administrators to personalize, encode, print, update, issue, hot-list, and track individual smart cards quickly and easily.
3-G International, Inc. is the leading U.S. smart card solutions company and has provided multiple application smart card solutions to industry and government since 1991. 3GI offers a wide range of smart card applications and solutions including financial, internet security, electronic payments, and card system management. 3GI is based in Springfield, Virginia and has branch offices in Williamsburg, Honolulu, San Francisco, Raleigh, Edinburgh, and Shenzhen, China. 3GI was recently recognized as one of the fastest growing privately-held U.S. companies in the Inc. 500 survey. 3GI can be found on the World Wide Web at [www.3gi.com].