NEWS RELEASE
EMERYVILLE, Calif.--(BUSINESS WIRE)--Oct. 28, 1998--U.S. Wireless Data, Inc. ("USWD") (OTCBB:USWDA) announced today the availability of its Wireless Express Payment Service(SM).
The new service targets existing card processors who are looking to provide their merchant customers with a wireless payment solution. The first customer for the service will be Cardservice International, as announced separately on October 1st, pending the execution of a definitive agreement.
USWD's Wireless Express Payment Service(SM) integrates the company's proprietary hardware and software technology into an easy-to-use, end-to-end wireless transaction processing solution. The high-speed, high-reliability service will enable merchant acquirers to penetrate targeted markets by offering a technologically superior alternative to the current industry standard of dial-up terminals, and, for certain types of businesses, cash or checks.
The Wireless Express Payment Service(SM) begins at the point-of-sale and concludes with server interfaces into the front-ends of designated card processors. The service securely transmits transaction data over dedicated channels within the existing voice infrastructure at 19.2 kilobytes per second and facilitates faster authorizations by reducing waiting time as much as 80% -- 3 seconds on average versus the 12 to 15 seconds for land-based, dial-up lines. In addition, Wireless Express Payment Service(SM) enhances security, including features such as data encryption to reduce the potential for fraud losses. The result: Wireless Express Payment Service(SM) outperforms dial-up lines at a fraction of the cost of leased lines.
As part of the Wireless Payment Service(SM) initiative, the company has begun the process of integrating its USWD500 Cellular Digital Packet Data ("CDPD") modem into a rich set of wireless terminal devices. The CDPD modem, which reflects the IP-based standard adopted by the major wireless service providers, is USWD's newest version.
Other benefits will accompany the introduction of the USWD500 CDPD modem. For example, greater reliability, through online diagnostic routines such as terminal status and signal strength indicators, will minimize terminal downtime and provide merchant processors with remote capabilities for handling customer service inquiries via the USWD web site, as opposed to traveling to the merchant location. In addition, USWD's intelligent network will improve the service management capabilities of card processors via online help screens, as well as the automated activation and provisioning of IP addresses.
USWD already has secured joint marketing agreements with certain major wireless carriers. As a result, USWD expects to offer its prospective strategic alliance partners the ability to provide wireless transaction processing solutions to the merchant population around the country where CDPD coverage currently exists.
From the merchant's perspective, Wireless Express Payment Service(SM) will provide maximum flexibility and mobility. The service will allow merchants the choice of purchasing a new piece of equipment or upgrading an existing dial-up terminal to a wireless device. In addition, merchants will be relieved of the need for, and expense of, dedicated telephone lines. By removing the limitation of land-based telephone lines for data transmission, a merchant's sales counter can be as mobile as desired. Examples of merchant applications include fast-food establishments, movie theaters, parking garages, and concession booths, where processing speed is critical due to high transaction volume and the potential for long lines, and seasonal businesses, which otherwise would require setting up temporary telephone lines or restricting transactions to cash or check.
U.S. Wireless Data, Inc. is the leader in applied wireless technology within the payment processing industry. Through the use of proprietary hardware, software technology and marketing relationships with major wireless telecommunications carriers, USWD enables payment processors to offer the fastest, least expensive and most comprehensive transaction processing solutions.
Forward Looking Statements:
Certain information above contains forward-looking statements that involve risk and uncertainties. While the management of the Company believes that current expectations reflect reasonable assumptions, no assurances can be given that the Company will achieve its goals. Factors that could cause actual results to differ materially include, but are not limited to: the Company's requirement for additional capital; failure of the Company to execute definitive agreements with potential strategic alliance partners; technological change; the ability of the Company to develop new distribution channels; or the intensification of competition. The reports filed by the Company pursuant to United States securities laws contain a detailed discussion of these factors and certain other risks to which the Company is subject. Management of the Company advises the reader to review these reports (which are available from the United States Securities and Exchange Commission's EDGAR database at sec.gov and at various other Commission reference facilities in the United States) before making an investment decision regarding the Company or its securities.
CONTACT: U.S. Wireless Data Inc.
Scott Hamilton, 510/596-2025
or
Liviakis Financial Communications, Inc.
Tony Altavilla, 916/448-6084
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