Monday March 27, 7:30 am Eastern Time
Company Press Release
Mastercard and 724 Solutions to Deliver Global Solutions for Secure Mobile Commerce and Wireless Payments
MasterCard and 724 Solutions Sign Development Partnership to Drive Adoption Of Mobile Commerce
PURCHASE, N.Y. and TORONTO--(BUSINESS WIRE)--March 27, 2000-- MasterCard International and 724 Solutions Inc. (TSE: SVN - news; NASDAQ: SVNX - news) today announced a strategic alliance to develop and deliver global infrastructure software solutions for conducting payment transactions using mobile phones, personal digital assistants (PDAs) and other Internet-enabled devices. With the development of these technologies, MasterCard's member financial institutions worldwide will be able to use 724 Solutions' technology to extend highly secure payment capabilities to customers who can make purchases or pay bills using wireless devices.
Under the terms of the agreement, 724 Solutions, an Internet infrastructure software solution provider for financial institutions, will work with MasterCard to jointly develop secure payment solutions to facilitate mobile transactions. In addition, 724 Solutions will incorporate payment transaction functionality based on MasterCard's family of payment programs - utilizing both magnetic stripe and chip technology - into the 724 Solutions Financial Services Platform.
MasterCard's member financial institutions will be able to take advantage of the ease of 724 Solutions' scalable technology to meet the rapidly growing demand for mobile commerce. Strategy Analytics, a leading industry analyst firm based in Wellesley, MA, estimates that mobile commerce will reach 14 billion transactions with a total market of $200 billion by 2004.
``MasterCard is taking the lead in developing payment services that allow our member financial institutions to improve their business efficiency, and offer better services and convenience to today's consumer,' stated Art Kranzley, senior vice president, Electronic Commerce and Emerging Technologies, MasterCard International. ``By incorporating the 724 Solutions Financial Services Platform and MasterCard's family of payment programs into our members' existing systems, consumers will be able to securely buy goods and services, pay bills, manage investment portfolios and make travel arrangements using an array of mobile devices.'
Working with key MasterCard member financial institutions, MasterCard and 724 Solutions plan to implement this mobile commerce solution in key markets around the world, in conjunction with selected mobile operators and handset manufacturers. Pilot testing of the service is expected to roll out later this year.
As part of the agreement, 724 Solutions will also incorporate MasterCard into the digital wallet functionality that it is developing. Wireless wallet technology is a flexible method of payment allowing consumers to conduct secure payment transactions from their mobile phone, personal digital assistant, or other Internet-enabled device.
``Together with MasterCard and our customers, we are taking a huge step forward in creating a convenient and secure mobile payment mechanism that will accelerate the development of mobile commerce,' said Greg Wolfond, CEO of 724 Solutions. ``Combining our strengths and global approach - including common partners and clients - in this preferred relationship with MasterCard, will propel our vision forward and enable our customers and partners to more quickly realize the substantial opportunities that the mobile Internet affords.'
In addition to this partnership, 724 Solutions will contribute to MasterCard's Global Mobile Commerce Team (GMCT), a diverse group of international companies working together to enable consumers to use mobile phones to conduct business.
About 724 Solutions Inc.
724 Solutions provides an Internet infrastructure solution to financial institutions that enables them to offer personalized and secure online banking, brokerage and e-commerce services across a wide range of Internet-enabled wireless and consumer electronic devices. The Company's solution currently enables consumers to access online banking and brokerage services through network service providers using digital mobile phones, personal digital assistants, two-way pagers and personal computers. 724 Solutions' customers include Citigroup, Bank of America, Bank of Montreal, Wells Fargo and Claritybank.com. 724 Solutions' common shares are listed on the NASDAQ National Market (SVNX) and the TSE (SVN) stock exchanges. Headquartered in Toronto, Canada, the company has offices in London, San Francisco, Sydney, and Tokyo. For additional information visit www.724.com.
About MasterCard International
MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. Nearly 700 million MasterCard©, Maestro©, Cirrus© and Mondex(TM) cards are in circulation today. With more than 17 million locations, no card is accepted in more places and by more merchants than the MasterCard card. MasterCard can be reached through its World Wide Web site at www.mastercard.com.
This press release contains statements of a forward-looking nature. These statements are made under the ``safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as ``will,' ``expects,' ``anticipates,' ``future,' ``intends,' ``plans,' ``believes,' ``estimates' and similar expressions. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that technologies for the delivery of financial or e-commerce services over the Internet and wireless networks will not be developed or be attractive to consumers as anticipated; the risk that 724 Solutions and MasterCard will not successfully develop any products and technologies; and other risks outlined in 724's SEC filings, including but not limited to 724's registration statement on Form F-1 or filings on Form F-6. Neither MasterCard nor 724 Solutions undertakes any obligation to update this forward-looking information, except as required under applicable law.
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Contact:
Christina Costa
MasterCard International
+1 914 249-4606
christina_costa@mastercard.com
-or-
Ray McManus
724 Solutions Inc.
+1 416 228-8191
rmcmanus@724.com
-or-
Jessie Hennion
Brodeur Worldwide for 724 Solutions Inc.
+1 617 587-2007
jhennion@brodeur.com |
