First Data Makes Strategic Investment in ViVOtech
Investment Furthers First Data's Commitment to Fast Growing Mobile Payments Adoption
DENVER & SANTA CLARA, Calif., May 02, 2007 (www.AllPayNews.com) -- First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, today announced it has made a strategic investment in ViVOtech and will use ViVOtech's collection of emerging technologies that include Near Field Communication (NFC) terminals and mobile commerce enablement. First Data's investment will come in the form of the company's participation as lead investor in ViVOtech's Series C round of financing.
"We're excited about the opportunities in Near Field Communication and the role it will play as we continue to expand our offerings in this arena and maximize choice and convenience for consumers at the point of sale," said Barry McCarthy, president of Product Innovation at First Data Commercial Services. "As one of the many technologies First Data will be supporting, our recent investment in ViVOtech furthers our objective of bringing a new generation of terminals and mobile phone-enabled payment services to our financial institution and merchant clients."
Near Field Communication is a new short-range wireless connectivity technology that can simplify the way consumers make payments. A recent report by ABI Research forecasts NFC chips to be embedded in 292 million handsets, or 20% of all phones worldwide, by 2012. NFC technologies will allow consumers to take advantage of new mobile services such as cell phone promotions and loyalty programs, over the air (OTA) provisioning of credit, debit, and stored value cards, and contactless redemptions of coupons and offers at the point of purchase.
"First Data's decision to take the lead in our Series C funding round and support our collection of technologies that include terminals, wallets and OTA provisioning is a strong validation of our business, technology direction and our services," said Michael Mullagh, chief executive officer, ViVOtech. "Given First Data's vast global footprint, this relationship will help accelerate the availability of these new services and the associated transformation of mobile phones into portable payment devices."
About First Data
First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide. Serving over 5 million merchant locations, 1,900 card issuers and their customers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. For more information, visit www.firstdata.com.
ViVOtech (www.vivotech.com) is a market leader in contactless/NFC payment software, over the air (OTA) card provisioning, promotion, and transaction management infrastructure software, NFC smart posters, and contactless readers/writers. These innovative solutions allow consumers to make contactless payments with radio frequency-enabled credit cards, debit cards, key fobs, and NFC-enabled mobile phones. ViVOtech's products are used by some of the most prominent retailers in the United States. Currently, with more than 250,000 units in 22 countries, ViVOtech's products are in use at movie theaters, fast food restaurants (QSR), casual dining establishments, convenience stores, gas stations, drug stores, grocery stores, buses, taxicabs and vending machine locations, enabling a wide variety of businesses to accept contactless/NFC payments. In 2007, ViVOtech was named #1 in New ABI Research contactless reader ranking. ViVOtech was also recognized as Top Contactless Payment Technology Vendor in Aberdeen Group's "Retail Contactless Payment Report"; In 2006, ViVOtech was honored with a MasterCard "Best Vendor Partner Award" as the first vendor to deliver stand-alone contactless readers for MasterCard PayPass customers. In 2005, ViVOtech received the prestigious Frost & Sullivan technology award for its role in transforming the contactless payment industry and the first annual ETA Technology Innovation Award.
SOURCE: First Data Corp.