Saturday, April 30, 2011

Analysis on why Visa Made an Investment in Square

Visa (Goliath) Not Investing in David (Square) but Goliath (Twitter)

Yesterday's announcement that Visa made a strategic investment in Square took many in the payment industry by surprise...especially Verifone,  as this news 
squarely provides Verifone with a Black Eye and not the Pea kind.  

In prepared statements, Square’s Jack Dorsey, said: “We’re thrilled to partner with Visa. This relationship will accelerate our vision of empowering businesses and aspiring entrepreneurs to succeed. The best way to grow your business is to accept credit cards. Together, we can ensure that all businesses of any size can pursue the American Dream.”

Verifone's Insecurity "Around" Square
Gained Momentum with Visa announcement

So Why would Goliath invest in David asks Forbes? Good question.

Here's my opinion:

Square has been targeted by Verifone as "less than secure."  (see Verifone Ad on right) Therefore, by getting the backing of Visa, Square not only provides Square with "instant credibility" but, at the same time, strikes back at Verifone.  Let's say that Verifone's Insecurity "AROUND SQUARE" just gained momentum...albeit in reverse.

Shout out to Verifone:  If it makes you feel any better, I've got a feeling, that Visa isn't as interested in Square as they are in Twitter's 200 million base. Here's why:

After spending a couple hours last night wondering why on earth Visa would invest in Square…(If Goliath was going to invest in David why not a David with a PCI Certified personal POS)...I think I got it figured out.  

It’s because David isn’t really David afterall, David is Goliath. (Square is Jack Dorsey and Jack Dorsey is (again) Twitter)  
It’s all about P2P (person to person money movement) and this is Visa making a brilliant P2P investment/move.  Let's look at some recent developments:
1.  Jack Dorsey recently rejoined Twitter and therefore, Dorsey is playing a dual role at Square (CEO) and Twitter, where he has returned to lead product development.  Let's just say that paving the road for a real time T2T (twitter to twitter) payment platform is a helluva good start.  Think of it.  Need to pay the babysitter?  Twitt-her.   Owe someone $15 bucks for a burger and a beer?  Twitt-him.   Want to donate $10 to Tokyo, Haiti, Tuscaloosa, etc.?  Twitt-it.
2.  Visa recently announced it was partnering with Fiserv (Zashpay) and CashEdge to enable people to send money from any Visa card or a bank account to another person's credit or debit card  (Visa cards only, naturally). In the case of owing your buddy $15 for a burger and a beer, send $15 from your debit card to his debit card.  (Visa cards only)
 3. Twitter has a 200 million (and growing) base which paves the way for Visa to provide a key competitive advantage over MasterCard in the much ballyhooed P2P market.  Believe me, MasterCard recognizes the potential value of P2P. as this press release from MasterCard on 4/27 demonstrates.  MasterCard Names Marcie Verdin Group Head, Global Person-to-Person Payments  

So, my simple analysis is that Visa is investing in Square in order to introduce P2P payments and “Skim” from Twitter’s 200 million base.  At the same time, they shut out MasterCard. (Visa cards only) It's a brilliant move by all parties...Visa, Square AND Twitter.  Especially in light of the fact that former Google CEO, Eric Schmidt recently invested in a small company called Twitpay which is trying to carve a niche in the charitable donations/payments arena.

At the end of the day, Jack Dorsey's strategic partnership with Visa was indeed a brilliant move, but without Twitter, it's a move that never would have happened in a billion years. (Then again, a billion years passed before someone came up with Twitter and Jack Dorsey not only did, but will probably earn at least a dollar or $5 for every one of those passing years.)  

Prediction:  Visa and Twitter will make a killing off the P2P/T2T business. I don't know what they'd call it. (I kinda like Twit$) and when Twitter and Visa introduce "Twit$" Powered by Visa,  Square AND Twitter will make a piece of every transaction.  And it won't stop there.  The possibilities are endless.   In closing, I'd like to point out that if this wasn't the idea behind the Visa/Square strategic relationship, then I'm wrong.  :)  

If you have any comments or thoughts on this analysis, please feel free to email them to:

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Friday, April 29, 2011

ACI Worldwide posts Q2 revenue growth of 19%

New York, April 28, 2011 -- ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of payment systems, today announced financial results for the period ended March 31, 2011. We will hold a conference call on April 28, 2011, at 8:30 a.m. EDT to discuss this information. Interested persons may also access a real-time audio broadcast of the teleconference at .

"First quarter sales and backlog growth over prior-year quarter continues to demonstrate the appeal of ACI's strategy and product solutions suite as we increase the number of new payment applications owned by each of our existing customers. The company is executing better quarterly performance as underscored by our growth in operating income and improvement in operating EBITDA," said Chief Executive Officer Philip Heasley.



Sales bookings in the quarter totaled $122.9 million which was an increase of $41.8 million, or 52%, as compared to the March 2010 quarter. The stronger quarter was driven by two large renewals with add-on business in Canada as well as large renewals in the Netherlands, Ireland, Mexico, Indonesia, USA and South Africa. Notable changes in the mix of sales compared to last year's quarter included a rise of $17 million and $9 million in add-on and new application sales, respectively.


As of March 31, 2011, our estimated 60-month backlog was $1.613 billion, an increase of $47 million as compared to $1.566 billion at December 31, 2010. The growth was primarily attributable to the impact of foreign exchange translation as well as to the acquisition of ISD Corporation. As of March 31, 2011, our 12-month backlog was $391 million, an increase of $10 million as compared to $381 million for the quarter ended December 31, 2010.


Revenue was $104.5 million in the quarter ended March 31, 2011, an increase of $16.8 million, or 19%, over the prior-year quarter revenue. The growth in 2011 revenue over the prior-year quarter includes higher recurring revenue with an increase of $14.0 million, or 22%, over prior-year quarter resulting in $77.3 million in recurring revenue.

Operating Expenses

Operating expenses were $97.0 million in the March 2011 quarter compared to $88.6 million in the March 2010 quarter, a rise of $8.4 million, or 9%. Operating expense growth was led primarily by increased sales & marketing expenses and by expenses related to the acceleration of product development.

Operating Income

Operating income was $7.5 million in the March 2011 quarter, an increase of approximately $8.4 million as compared to an operating loss of $0.9 million in the March 2010 quarter.


We had $168.9 million in cash on hand as of March 31, 2011. As of March 31, 2011, we also had $75.0 million in unused borrowings under our credit facility.

Operating Free Cash Flow

Operating free cash flow ("OFCF") for the quarter was $12.3 million as compared to $8.2 million for the March 2010 quarter. The improvement in OFCF was driven by higher operating income as well as by lower cash taxes year-over-year.

Other Expense

Other expense for the quarter was $0.7 million, essentially flat compared to other expense of $0.6 million in the March 2010 quarter.


Income tax expense in the quarter was $5.2 million, or a 76% effective tax rate, compared to $0.6 million in the prior-year quarter. The increase in income tax expense is primarily the result of higher pre-tax income. In addition, the effective tax rate is negatively impacted by our inability to recognize income tax benefits on losses sustained in certain tax jurisdictions.

Net Income and Diluted Earnings Per Share

Net income for the quarter ended March 31, 2011 was $1.6 million, compared to net loss of $2.1 million during the same period last year, an improvement of $3.7 million.

Earnings per share for the quarter ended March 31, 2011 was $0.05 per diluted share compared to a loss of $0.06 per diluted share during the same period last year. The improvement was largely due to stronger operating income.

Weighted Average Shares Outstanding

Total diluted weighted average shares outstanding were 34.0 million for the quarter ended March 31, 2011 as compared to 33.7 million shares outstanding for the quarter ended March 31, 2010.

2011 Guidance

We do not presently anticipate changes to our annual guidance based upon what we are seeing in our business markets to date. Hence, guidance remains as indicated on February 15, 2011 with calendar year guidance as follows: Revenue to achieve a range of $440-450 million, Operating Income of $62-65 million and Operating EBITDA of $98-101 million.

About ACI Worldwide

ACI Worldwide powers electronic payments for more than 750 financial institutions, retailers and processors around the world. The company has a broad, integrated suite of electronic payment software in the market. More than 75 billion times each year, ACI's solutions process consumer payments. On an average day, ACI software manages more than US$12 trillion in wholesale payments. And for more than 150 organizations worldwide, ACI software helps to protect their customers from financial crime. To learn more about ACI and understand why we are trusted globally, please visit . You can also find us on or on Twitter @ACI_Worldwide.

cMoney Announces ATM to ATM Cash Transfer

HOUSTON--(BUSINESS WIRE)--cMoney, Inc. (OTCBB:CMEY), a Houston-based company at the forefront of global mobile phone-based payment and money transfer utilizing secure patent pending technologies for mobile phone users, retailers, and financial institutions, continues to innovate and strengthen the cMoney brand globally, with its latest technology enhancement to its existing solution, now allowing the movement of money between ATMs.
“I am pleased to confirm that all cMoney registration papers have been filed to bring our account current.”
Business development plans - cMoney continues its in-depth discussions with major players in the industry, currently under Non-Disclosure Agreements. cMoney is currently in negotiation with a major financial partner to accelerate the deployment of cMoney’s latest exciting technology.
Moving forward towards submission of S-1 – cMoney continues, with its previously announced partners, to prepare for the submission of its expedited Form S-1/A.
Nevada Secretary of State filings - Mr. Matthews, CEO of cMoney stated, “I am pleased to confirm that all cMoney registration papers have been filed to bring our account current.”
Ongoing research – our cMoney solution continues to receive positive feedback in our business development discussions, technology developments, shareholder feedback and from the market. Another enhancement slated for rollout in the cMoney solution will offer our customers a new virtual credit card geared specifically to their spending habits while enhancing their credit worthiness.
Technology development – The latest hype of other mobile payment carriers and credit card providers is the “arrival“ of NFC, (Near Field Communication). NFC suppliers claim their unprecedented technology will enable a chip, which will be embedded into future phones, will allow their customers to benefit from various mobile payment technologies still being installed. Our cMoney solution, once launched, will offer every one of our customers the opportunity to use the cMoney solution. With our cMoney solution, there is no need to purchase a new cell phone, no need to visit only NFC enabled stores (where in some locations purchases are limited to less than $100.00) and more importantly our cMoney solution performs all these compatible functions.
Further cMoney’s introduction of our revolutionary technology is state of the art, and will trump the NFC concept allowing our customers new financial freedom. The cMoney solution provides for credit card data never being revealed; implementing store discount, coupons, and loyalty cards; sending money from cell to cell instantly, bank to bank and ATM to ATM , securely, all at a very reasonable rate. cMoney will act as your own personal bank, if you do not have a banking relationship at present. Most importantly, merchants do not have to change or upgrade their equipment and online purchases over the internet can be made securely without disclosure of your personal data.
Mr. Matthews added, “In summary, cMoney continues to innovate, strengthen our brand and improve on the latest technology developments allowing us to rapidly move forward towards our initial stated goal of a successful Hard Launch.”
About cMoney, Inc.
cMoney, Inc., a Houston-based technology company that provides innovative secure mobile payment solutions for mobile phone users, retailers and financial institutions, has developed an innovative way to send money and pay for goods and services using a mobile phone and the text messaging system protected by patents. Scheduled to debut in 2011, the pioneering technology will create a “virtual wallet” that will eliminate exposure to identity and credit card theft for users. It can be used anywhere that cash, checks, ATMs or credit cards are accepted. For more information, visit

MasterCard Appoints Rima Qureshi to Board of Directors

“Her appointment further enhances the truly global perspective of our Board. I look forward to working with Rima and the entire Board of Directors as MasterCard continues to create payment solutions that benefit consumers, businesses and governments around the world.”
“Rima’s expertise in the mobile, telecommunications and information technology industries and her proven leadership capabilities will certainly benefit MasterCard,” said Richard Haythornthwaite, chairman of the MasterCard Board of Directors. “Her appointment further enhances the truly global perspective of our Board. I look forward to working with Rima and the entire Board of Directors as MasterCard continues to create payment solutions that benefit consumers, businesses and governments around the world.”
Ms. Qureshi, 46, is senior vice president and business unit head, CDMA Mobile Systems at Ericsson, the world's leading provider of technology and services to telecom operators. Prior to her appointment to this position in January 2010 as head of one of Ericsson’s four business units, she served as vice president, AT&T Improvement Program Manager for Ericsson North America from 2008 until 2009, and vice president, Service Sales for Ericsson Canada in 2008. She served as vice president and head of Product Area Customer Support for Ericsson AB in Stockholm from 2004 until 2008. Ms. Qureshi also has served as head of Ericsson Response since 2006. Ms. Qureshi has held positions of increasing seniority within Ericsson in Canada and Sweden since joining the company in 1993. Before joining Ericsson, Ms. Qureshi served as an IT consultant at DMR Group Inc.
About MasterCard Incorporated
As a leading global payments company, MasterCard Incorporated prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl®. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at


MasterCard Incorporated
Media Relations:
Chris Monteiro, +1-914-249-5826
Investor Relations:
Barbara Gasper, +1-914-249-4565

Thursday, April 28, 2011

Bell ID Joins U.S. Smart Card Alliance


28 April 2011 (Rotterdam, The Netherlands) – Bell ID, a global leader in smart token management solutions, has announced that it has become the latest organisation to join the Smart Card Alliance, a non-profit organisation that stimulates the adoption of smart card technology in North America.

Bell ID’s decision to further focus on the U.S. follows the release of its white paper ‘Six Myths Preventing EMV Migration in the U.S.’ late last year, which highlights the inevitability of the U.S. transiting to EMV-based payments technology. This paper concludes that migration to EMV may come sooner than expected.

Joining the Smart Card Alliance enables Bell ID to increase its visibility and further develop relationships with industry players. This will be achieved through active involvement within meetings, events and outreach activities such as the upcoming Smart Card Alliance Annual Conference, where Bell ID will be exhibiting.

David Orme, CEO, Bell ID comments: “With the U.S. magnetic stripe payment model over fifty years old, the migration to a new infrastructure will be costly and complex. The rewards and opportunities, however, will make the transition commercially profitable and rewarding. As we witness the debate transition from ‘if’ the U.S. will migrate to EMV, to many industry professionals asking ‘when’ and ‘how’, we are delighted to contribute our expertise to the debate through organisations such as the Smart Card Alliance. It has, and will continue to play a crucially important role in educating the marketplace and encouraging best practice in the coming years.”

Randy Vanderhoof, Executive Director at Smart Card Alliance, adds: “We’re delighted to welcome Bell ID to the Smart Card Alliance. As a new member and exhibitor at the upcoming Annual Conference, we look forward to its contribution to our activities as the U.S debate on EMV migration continues to intensify.”

Bell ID will be showcasing its newly launched Bell ID® EMV Token Manager software at this year’s Smart Card Alliance Annual Conference, held on 3 – 5 May 2011 in Illinois, Chicago, U.S.

Exhibiting at booth 313, Bell ID experts will be available to discuss issues relating to the deployment and lifecycle management of smart tokens and associated applications.

Bell ID is a worldwide technology leader in the field of smart card and token management solutions and its technology is responsible for the day-to-day management of over 125 million tokens globally, across the finance, identity and mobile sectors.

For further information on Bell ID, or to arrange a briefing regarding EMV migration in the U.S. please contact Sarah Jones or Nicole Mountain at iseepr: /, +44 (0) 1943 468 007.

About Bell ID

Bell ID is a worldwide technology leader in the field of smart card/ token management solutions, with the largest team in the industry dedicated exclusively to developing software that manages life-cycles, applications and cryptographic keys. Having operated in this highly specialised field for 20 years, Bell ID is a true card and token management expert providing unparalleled knowledge, experience and products to an unrivalled portfolio of customers. Bell ID’s software is used in finance, identity and mobile solutions

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TransFirst Launches Mobile Payment Application "PayFox"

Hauppauge, New York, April 28, 2011 -- TransFirst®, a leading provider of transaction processing services and payment enabling technologies, is pleased to announce the launch of PayFoxTM, a mobile payment processing application that allows merchants to accept credit and signature debit card payments using an iPhone.

The application is available as a free download from Apple’s App Store. PayFox can process Visa, MasterCard, Discover and American Express credit and signature debit cards. Merchants that have the iPhone 3G/3GS or iPhone 4 can use a cardreader that allows them to swipe customers’ cards rather than key the card information manually. The application is incorporated into TransFirst’s TransAction Central payment gateway.

“TransFirst is excited about the launch of PayFox, as it opens up a new sales market for our clients and a new way for our merchants to accept payments,” says Craig Tieken, director of product for TransFirst. “PayFox users will get the same flexible payment processing service and industry-leading support that all TransFirst merchants have come to expect. PayFox is just the first of many mobile products and services that we will be introducing; we are committed to building out a suite of best-in-class solutions serving the mobile payments arena.”

About TransFirst ( )

A leading provider of secure transaction processing services and payment enabling technologies, TransFirst offers innovative products and services designed with financial institution, independent sales organization, healthcare, e-commerce, government and merchant customers’ unique needs in mind. By collaborating with our customers and utilizing strong industry knowledge, we help them grow their businesses. Founded in 1995, TransFirst continues to attain significant market share and world-class expertise in growing and profitable industry segments. Built on a platform of personal service, customer commitment and flexible pricing, TransFirst is headquartered in Hauppauge, N.Y., and has operations facilities in Aurora, Colo., Broomfield, Colo., Omaha, Neb., Overland Park, Kan., and executive headquarters in Dallas, Texas. Company-wide, TransFirst currently processes approximately $30 billion in annual sales volume for more than 175,000 merchant locations and more than 1,000 financial institutions. For additional information, please call 800.745.2659 or visit .

Source: Company press release.

Mercator Report: Authentication at the Edge: NFC, Smartphones, and a New Model for Payments Confidence

Security is an integral part of NFC Data's, Sqwizz
Boston, MA -- With NFC on the near-term horizon, the number of smartphones in the U.S. with this new security capability will number in the tens of millions within a year. This flood of highly capable devices will provide new security and fraud mitigation possibilities for payment accountholders, financial institutions, merchants, government, and other enterprises.

Growing in popularity with consumers, these devices offer the critical convenience features necessary for consumers to participate in security steps such as PIN entry to specific apps, fingerprint reading, etc.

Mercator Advisory Group's new report Authentication At the Edge: NFC, Smartphones, and a New Model for Payments Confidence examines the potential of the smartphone in security applications as it evolves to include hardware-based security via NFC, NFC's Secure Element card number storage, as well as potential biometric applications.

Findings of this report include:

  • Projections for the installed base of NFC-equipped smartphones in the North American Market by Q1/2012.
  • Context-specific, layered identity authentication provides a solid approach that does not break existing relationships among transaction participants.
  • As e-commerce merchandising and payment methodologies move into the physical point of sale environment, these clicks-at-bricks transactions will require strong payment credential authentication.
  • The availability of NFC facilities improves authentication services for m-banking, e-commerce, m-commerce, and POS payments.
  • Biometrics managed at the edge of the network by the device owner offer new layers for authentication surety without imposing the challenge of biometrics management on participants.
"Authentication is the heart of payments and online security. Smartphones with hardware-based security capability, especially via NFC and fingerprint readers, will give consumers, enterprise users, and the government unprecedented control over their payment and security interactions," statedGeorge Peabody, Director of Mercator Advisory Group's Emerging Technologies Advisory Service. "The payments network has done an excellent job with network-based intelligence, but it is time to put intelligence into the devices accessing those networks from the very edge. Smartphones with hardware security features bring contextually appropriate authentication power to the problem of risk-based assessments.

One of seven exhibits in this report:

This report is 29 pages long, with seven exhibits and three tables.

Companies mentioned in this report include: Broadcom, Apple, Isis, AT&T, Verizon Wireless, T-Mobile, Discover, Barclaycard, Gemalto, Giesecke & Devrient, AisleBuyer, Facebook, Amazon, Google, SK Telecom, First Data, CASSIS International, TSYS, Visa, MasterCard, Discover, Microsoft, Prime Sense, Omnicom, Barbarian Group, Cheil Worldwide), and Razorfish, Publicis, ID-U Biometrics, Disney, Blue Planet Apps, Bank of America, and INSIDE Secur.

Members of Mercator Advisory Group have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send E-mail to

Follow us on Twitter @

About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors.

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85% of Consumers Believe Online Fraud is a Growing Concern: ThreatMatrix

Research Study: 

Information Consumers Will Allow a Trusted Online Business to Check
Only 12% of Consumers Stated They Think Companies are Getting Better at Protecting Their Personal Information Online
LOS ALTOS, CA – April 26, 2011 – ThreatMetrix™, the fastest growing provider of cloud-based fraud prevention solutions that do not require personally identifiable information (PII), today announced some results of a joint study with the Ponemon Institute that reveals consumers’ growing concern over online fraud. The research, which surveyed consumers on their awareness and confidence in online fraud prevention, was compiled in a report, “Consumers’ Reaction to Online Fraud.”
Results showed that 85% of survey respondents reported being worried and dissatisfied with the level of protection online businesses are providing to stop fraudsters today, which is up 5% from a 2009 Ponemon study that asked the same question. Forty-two percent of respondents, in fact, said they have been the victim of online fraud. Of those, 80% said they did not report the crime, however, and only 19% said they reported it only to the online business directly.
“A lot of fraudulent activity goes unreported today, making it difficult for online businesses to fully understand the prominence and seriousness of the problem,” said Reed Taussig, president and CEO, ThreatMetrix. “With a rise in online transactions and activities across devices, more needs to be done to educate online merchants, banks, social outlets and other businesses on how to decrease fraudulent activity.”
What Online Businesses Can Do to Combat Fraud
The survey respondents who expressed concern over online fraud said they felt online merchants, banks and social networks need to take additional steps to prevent fraudsters from stealing consumer information.
Nearly three in four respondents would allow a trusted online business to place an invisible cookie on their computer to automatically authenticate them, and 82% indicated that they would expect an online business to offer alternative authentication methods if they were unable to match the consumer’s digital fingerprint to their security system.
“Our survey results help validate the need and consumer preference for technology, such as device identification, to authenticate identity as opposed to using personally identifiable information,” said Dr. Larry Ponemon, chairman and founder of the Ponemon Institute. “Consumers expressed much more willingness to share data like ISP, computer serial number, type and make, rather than information like date of birth and telephone number.”
Information Consumers are Willing to Allow a Trusted Online Business to Check to Verify Their Identity, or Digitally Fingerprint Their Computer:
1. Serial number of computer 88%
2. Type and make of your computer 83%
3. Internet service provider 76%
4. Browser settings 71%
5. Type of browser 65%
6. IP address 59%
7. Types of software applications residing on your device 54%
8. Email address 46%
9. Purchase history 39%
10. Planned future purchases 35%
11. Date of birth 34%
12. Telephone number 17%
13. Home address 16%
14. Name 14%
15. Zip code 9%
16. Social Security number 4%
17. Driver’s license number 2%
Consumer Sentiment Around Promotion of Fraud Detection Technology
Based on survey findings, consumers have a positive perception about companies that use authentication and fraud detection tools to prevent online fraud. Fifty-six percent of consumers even indicated they are ‘more willing’ to shop or browse an online business if they know that company is taking specific measures toward combating fraud. However, the majority of respondents stated a preference for companies to share information about their device for authentication purposes — as opposed to sharing personal information to verify their identity.
“Some e-tailers today are promoting ‘anti-virus’ or ‘secure transaction’ messaging online, when they should also be touting ‘anti-fraud’ messages as well,” said Taussig.
The research also looked at consumer sentiment about fraud prevention across the banking, social media and Web 2.0 industries and mobile channel. For more information about the findings, download a copy of the report at
The Ponemon Institute© is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations in a variety of industries. For more information, visit
ThreatMetrix helps companies stop web fraud and accelerate e-commerce in real-time so they can significantly reduce online fraud, acquire more customers faster, reduce costs, and increase customer satisfaction. The ThreatMetrix Cloud-Based Fraud Prevention Platform, incorporating ThreatMetrix SmartID cookieless device identification, provides online businesses with the ability to protect themselves and their customers by verifying new accountsauthorizing payments and transactions and authenticating user logins in real-time. Online businesses can deploy the ThreatMetrix Cloud-based Fraud Prevention Platform, which does not rely on personally identifiable information (PII), for traditional online activity via a personal computer as well as for mobile and tablet devices. The company serves a rapidly growing customer base around the world across a variety of industries including social networks (dating, gaming)financial servicese-commerce, affiliate marketing and payments. For more information, visit or call 1-650-625-1451.
© 2011 ThreatMetrix. All rights reserved. ThreatMetrix, the ThreatMetrix Cloud-Based Fraud Prevention Platform, ThreatMetrix SmartID, ThreatMetrix ExactID, and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
Media Contacts:
Dan Rampe
Tel: 650-417-6122
Lauren Eichmann
Walker Sands Communications
Tel: 312-265-3089

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The Impact of Mobile Banking: A Case for Mobile Marketing

A New Report from Aite Group

Going Forward, The Mobile Banking Behaviors Of Today’s Consumers Should Influence Financial Institutions’ Mobile Marketing Efforts.

Boston, April 26, 2011 – A new report from Aite Group provides insight into the behaviors of mobile banking users. Based on a December 2010 Aite Group survey of 1,011 U.S. consumers, the report explains why specific consumer behaviors are important to financial institutions’ mobile banking and mobile marketing strategies.
Based on Aite Group’s analysis of mobile-banking-consumer behaviors, it is clear that banks will have to make significant investments to improve or develop their mobile marketing capabilities. The lack of a retention benefit from the mobile banking channel, potential loss of overdraft fees from balance monitoring, and shift in consumer attention toward the mobile channel means that financial institutions’ rationale for investing in mobile-banking capabilities will come from successful mobile marketing.

“Financial institutions that currently provide mobile-banking services offer basic functionalities like balance-checking and funds transfers,” says Ron Shevlin, senior analyst with Aite Group and co-author of this report. “The internal struggle has been how to justify investments in this channel and what types of services to deploy next. Based on consumer behavior, mobile marketing functionality can provide the justification for and the answer behind what to deploy.”

This 20-page Impact Note contains 19 figures and three tables. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right. 
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