Verifone Systems, Inc. (NYSE: PAY) and First Data Corporation announced today the launch of the Verifone edition of the First Data® TransArmor™ solution for U.S. multi-lane and petroleum merchants. The TransArmor, Verifone edition, is an end-to-end encryption and tokenization solution that is a result of a partnership between Verifone and First Data to address retailers’ need for enhanced payment security.
The TransArmor, Verifone edition, enables First Data customers using Verifone's Secure PumpPay and MX series of EMV and NFC-enabled devices to take advantage of a complete security solution combining Verifone's VeriShield encryption along with tokenization technology from RSA, the Security Division of EMC. Cardholder data benefits from increased protection 'in-flight' from the moment it enters the merchant environment—whether indoors or at the pump—all the way to First Data’s data center, utilizing Verifone's hardware fortified and format preserving encryption technology.
“Data breaches are a widespread problem with over 1.1 billion records compromised in the last 10 years and the average organizational cost estimated at $5.4 million1,” said Paul Kleinschnitz, senior vice president, Cyber Security Solutions, First Data. "This partnership with Verifone on the TransArmor solution illustrates our commitment to collaborate with industry experts to bring best-in-class security solutions to new markets such as petro.”
Two petroleum and convenience retailers, including Robinson Oil Corporation and a major U.S.-based brand of filling stations, will pilot the solution for end-to-end encryption and tokenization of cardholder data captured at the counter and at the pump, beginning in July 2014.
“Petroleum and convenience store retailers have been increasingly focused on bolstering payment security, especially in light of recent breaches in the headlines,” said Tom Robinson, president of Robinson Oil Corporation, which will roll out the TransArmor, Verifone edition across its 34 Rotten Robbie retail locations following the pilot. “As a result of First Data and Verifone’s solution, we now have the means to enhance cardholder data protection long before the 2017 EMV deadlines take effect for transactions at gas pumps.”
“Being the first to bring end-to-end encryption and tokenization to the petro space, especially in a way that enhances security at the pump—an unattended site vulnerable to the types of attacks seen in recent headlines—demonstrates Verifone and First Data’s commitment to addressing security needs beyond encryption,” said Dan Yienger, senior vice president and general manager of Petroleum for Verifone. “This solution enhances our offerings to the retail petroleum industry while serving as a testament to our leadership in payment security innovation.”
To secure data 'at rest,' the solution has been engineered with RSA tokenization technology that replaces card data with a token number that preserves the value of card data for merchant business operations but removes value for fraudsters. When implementing the TransArmor solution, merchants will meet or exceed existing industry guidelines and requirements for end-to-end encryption and tokenization of payment card data regardless of their unique environment.
1 Ponemon Institute, 2013 Cost of a Data Breach Study, May 2013; Verizon RISK Team, 2013 Data Breach Investigation Report, April 2013
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for Verifone Systems, Inc
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and on currently available competitive, financial and economic data 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., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: market adoption of our security and encryption solution, execution of our strategic plan and business initiatives and whether the expected benefits of our plan and initiatives are achieved, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, our ability to successfully integrate acquired businesses into our business and operations, our ability to protect against fraud, the status of our relationship with and condition of third parties such as our contract manufacturers, distributors and key suppliers upon whom we rely in the conduct of our business, our dependence on a limited number of customers, the conduct of our business and operations internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, and our dependence on a limited number of key employees. For a further list and description of the risks and uncertainties affecting the operations of our business, 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. The forward-looking statements speak only as of the date such statements are made. 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.
About First Data (www.firstdata.com)
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive client revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction. More information about the company is available on FirstData.com as well as on Twitter, LinkedIn, Facebook and YouTube.
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.