A new research brief from the Mercator Advisory Group reveals that merchants can more easily comply with and reduce the cost of Payment Card Industry (PCI) requirements -- which currently amounts to more than $2 billion annually -- by deploying a payment card encryption infrastructure.
Sponsored by Verifone Systems, Inc. (NYSE: PAY) and Transaction Network Services, Inc. (NYSE: TNS), Mercator’s report concludes that with card data encryption “merchants are, at last, in a position to [eliminate] a big chunk of their ongoing compliance costs and to get off of the PCI treadmill.”
Authored by George Peabody, Director of Mercator Advisory Group's Emerging Technologies Advisory Service, the report says end-to-end infrastructure is no longer a “difficult-to-manage” task and can be implemented as a system or through managed services.
“Today’s encryption toolkit of POS terminals, software, secure network and decryption services means merchants no longer have to assume the same level of risk and responsibility for information security, exposure to breach-related fines and fees, and enterprise-wide PCI compliance audits,” Peabody says.
The report notes there is much “misinformation swirling around payment card security,” in particular the expectation by some that deployment of the EMV smartcard standard in the U.S. could solve all card security issues. Noting that realization of EMV in the U.S. “will take five to ten years of patience,” Mercator’s Peabody states that EMV “is not an entirely secure solution” and “cannot plug all the holes in a multi-channel world.”
Peabody asserts that “today’s card-number encryption technology is deployment-ready and effective” and that waiting for a smartcard-based approach “exposes merchants to unacceptable costs and losses for many years.”
The report, “The Encryption Imperative: Card Payments, PCI and Protecting Cardholder Data,” is available for download at http://www.verifone.com/vsp-library.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for Verifone Systems, Inc.
This press release includes certain forward-looking statements related to Verifone Systems, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Verifone management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of Verifone Systems, Inc. These risks and uncertainties include: customers’ acceptance and adoption of Verifone’s new security solutions and other new product and service offerings, our ability to protect against fraud, the status of our relationship with and condition of third parties upon whom we rely in the conduct of our business, our dependence on a limited number of customers, uncertainties related to the conduct of our business internationally, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
Transaction Network Services (TNS) is a leading global provider of data communications and interoperability solutions.
TNS offers a broad range of networks and innovative value-added services which enables transactions and the exchange of information in diverse industries such as retail, banking, payment processing, telecommunications and the financial markets.
Founded in 1990 in the United States, TNS has grown steadily and now provides services in over 40 countries across the Americas, Europe and the Asia Pacific region, with our reach extending to many more. TNS has designed and implemented multiple data networks which support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods.
For further information about TNS, visit www.tnsi.com . ‘One Connection, A World of Opportunities’
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.
About Verifone Systems, Inc. (www.verifone.com)
Verifone Systems, Inc. (“Verifone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. Verifone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. Verifone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.