Global | Change

Payment Leaders Introduce LaunchPAD – The Industry’s First Complete Programme to Help Banks Harness Potential of Pre-Authorised Debit

Verifone, Mosaic Software and ID Data today announced at Cartes 2004 the launch of a major new programme aimed at helping card-issuing and acquiring banks maximise their investment in EMV. November 04, 2004 Paris, France

Verifone, Mosaic Software and ID Data Systems join forces to deliver end-to-end low-risk debit solution to maximise banks’ EMV infrastructure investment

Paris, France - November 04, 2004 - Verifone, Mosaic Software and ID Data today announced at Cartes 2004 the launch of a major new programme aimed at helping card-issuing and acquiring banks maximise their investment in EMV. The first initiative of its kind, LaunchPAD is an agreement to deliver an end-to-end solution for the secure implementation of Pre-Authorised Debit (PAD) – a new offline payment method that slots into existing EMV infrastructure as an extension to credit and debit. LaunchPAD will enable banks and acquirers to target new customer segments through the deployment of low-risk payment products based on smart cards.

The three companies, which are highly experienced at working in partnership with a variety of vendors, are combining their expertise in the areas of payment terminals, Electronic Funds Transfer (EFT), transaction processing and smart card solutions to provide a unique one-stop shop for the complete implementation of PAD banking products. The deployment of PAD applications will provide new revenue-generating opportunities for all card-issuing and acquiring institutions, enabling banks to expand their market and reach new cardholders and merchants. In addition, service levels to existing customers can be increased by delivering value-added products that can be associated with their existing credit and debit cards.

The Pre-Authorised Debit payment method uses the smart card reader and PIN pad infrastructure that is already being put in place for EMV, thereby minimising further investment for the introduction of a wholly new payment product. The PAD transaction is debit-like but reduces risk by guaranteeing that funds are available and using PIN-based identification at the Point of Sale (PoS) to identify the cardholder. PAD does not require any online authorisation; the merchant terminal treats a purchase transaction as EMV-authorised offline and generates an audit trail showing the authenticity of the card and PIN. Cardholders will “top up” the value on the card at an online terminal, such as bank branch terminal or ATM. This is the only online transaction to ensure that, when value is loaded, it is reflected immediately on the central system.

By delivering best-in-class solution components and implementation expertise in a fully integrated package, the non-exclusive LaunchPAD programme from Verifone, Mosaic Software and ID Data provides issuing banks and acquirers with the easiest and fastest route to profit from existing EMV investment.


“Recent global research confirmed that, even in advanced payment markets, card-based payments still only represent approximately 30 per cent of Personal Consumption Expenditure. For issuing banks and acquirers, the ability to grow their debit business via a genuine cash replacement payment method such as Pre-Authorized Debit is therefore highly attractive.” Alex Cunescu, Vice President Chip Products Management, MasterCard International.

“With a track record in PAD implementation and a proven working partnership, the LaunchPAD partners offer a unique solution to the deployment of enabling technology for PAD. Working with experienced partners and trusted brands will help banks realise the full potential of this major new market opportunity.” Richard Crookston, Head of Marketing, Verifone EMEA

“PAD solutions can be deployed leveraging existing EMV payment acceptance environments and, importantly, without the need for compliance to additional banking regulations. That’s why banks are successfully deploying PAD now in geographies such as South Africa.” Andrew Marshman, Strategic Alliance Manager, Mosaic Software

“The business case for PAD is compelling. The ability to manage transactions – and risk – offline unlocks a previously unreachable market segment for card issuers.” Steve Lomax, Director of Banking and Finance, ID Data Systems.

About Verifone, Inc.
Verifone, Inc., a recognized leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. Verifone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. Verifone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. Verifone has shipped over eleven million electronic-payment systems.

About Mosaic Software
Mosaic Software is a global EFT software company with offices in the United States, the United Kingdom, South Africa, and Asia Pacific. The company has over 200 customers in more than 40 countries, providing leading-edge software solutions to financial institutions, retailers, network processors, mobile operators, and portals.

Mosaic Software's product, Postilion, is at the forefront of next-generation payment processing software. Postilion drives payments and other financial transactions through ATMs, POS terminals, phones, and Internet access points. This multi-channel architecture provides consistent cross-channel branding and integration, consolidated management information, integrated debit/gift card management, EMV enablement, and loyalty software solutions.

Postilion reduces transaction processing costs, speeds up time to market for new products and offerings, improves analysis of customer transactions and business opportunities, and increases profitability. For more information, please visit

About ID Data
ID Data plc is a significant supplier of secure-transaction systems and smart-card services to the international telephony, banking, retail, and secure-access sectors. ID Data's strategy, to move from commodity products to value-added services and solutions, has created a solid platform on which to build further growth. ID Data's clients have included GE Capital, Citibank, EDS (Post Office Counters), Barclaycard, Vodafone, Nectar, Tesco, the Automobile Association and, in Poland, the Premium Club loyalty card scheme. ID Data has formed agreements with major global corporations to facilitate rapid market development including partnerships with Toshiba and Toppan of Japan. ID Data has delivered in excess of 17 million chip cards to the banking market in the UK.

The Company was founded in 1988 and was listed on the AIM market of the London Stock Exchange in October 2000.