Another press release:
First non-financial institution to offer Interac transaction support
CGI Group Inc (The) GIB.A
Shares issued 5,271,423 Sep 15 close $35.00
Tue 16 Sept 97 News Release
Mr Jean Brassard reports
Yesterday, CGI became the first non-financial Interac member to process transactions and the first such member to offer Interac direct payment(IDP) services through point-of-sale devices and Interac shared cash dispensing using automated banking machines (ABMs).
As of yesterday, CGI began providing Interac services to the Canadian affiliate of Republic National Bank of New York, and is currently holding discussions with a number of potential clients who have expressed interest in CGI's Interac services.
CGI is one of several organizations that have become members of Interac over the past few months. Since 1985, CGI has been involved in Interac as an agent and data services provider on behalf of the Credit Union Central of Canada and all of its more than 400 credit union affiliated members.
The market for IDP through point-of-sale devices is experiencing average annual growth of 50% in Canada and this demand is expected to continue unabated in coming years, as a result of growing consumer acceptance. In the first seven months of 1997, according to Interac data, some 524.9 million IDP transactions were completed representing a total value of $22.7 billion. In 1996, meanwhile, automated banking machine withdrawals totalled $1 billion in Canada, and this figure keeps growing.
CGI's role as non-financial service provider will position the company strongly in view of upcoming industry developments such as the introduction of smart card-based electronic payment technology. The so-called chip cards incorporating integrated circuits are being pilot-tested and are expected to enter the market soon and will join other electronic payment systems in gradually replacing cash transactions. CGI has the expertise and resources to play a major role in this emerging market.
CGI's Interac environment includes BASE24 software from Applied Communications Canada (ACCI). ACCI has worked in partnership with CGI over the past year to design a highly functional, reliable system for its Interac customers. ACCI, a subsidiary of Transaction Systems Architects, provides solutions to the majority of Canadian financial institutions that make up Interac, and has been actively involved with Interac since the late 1980s.
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