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First Data's 1,400 credit and debit card issuing clients will have access to Orbiscom's secure system for making purchases on the Internet.
"Through this partnership, First Data underscores its commitment to providing issuers with state-of-the-art technology to ensure cardholders feel confident and secure when making purchases on-line," said Henry Tsuei, senior vice president of ventures and emerging technologies for First Data Resources.
Tsuei said First Data viewed the technology as another opportunity for its clients to build revenue as a result of increased card usage and improved customer retention.
Orbiscom said card issuers who have already adopted the company's solution have experienced a minimum of 30 percent growth in the average ticket size of their on-line transactions. The company said 62 percent of controlled payment technology users become repeat customers.
Chief executive of Orbiscom, Graham O'Donnell said the deal further strengthened the company's industry leadership position by acquiring a distribution point through which to market and license its technology directly to First Data's card issuing base.
Orbiscom said through its relationships with Discover, MBNA and Allied Irish Banks, it is currently the only provider of controlled payment technology with live implementations in the US and Europe and has a potential customer base today of 100 million cardholders.
The company's technology allows issuers to provide cardholders with a unique card number for each payment or merchant instead of transmitting the cardholder's actual card number.
The numbers are specific to each transaction and customers have the ability to choose the transaction amount, expiration date and specific merchant site for use.
The number is invalid once that single transaction is completed so eliminating the opportunity for fraud and the costs associated with it.
In July, Orbiscom was named by Visa as a vendor supporting the Visa US Payer Authentication programme, an e-commerce programme designed to help ensure secure on-line payment transactions via 3-D Secure.
Earlier this year, Orbiscom announced a long-term cross-licensing deal with Microsoft that aims to support the banking industry through Orbiscom's CPN (controlled payment number) technology.
The 15-year agreement provides a gateway for banks that wish to offer controlled payment number (CPN) technology to communicate with cardholders.
At the time, Patrick Keane, a spokesperson for Orbiscom said the deal demonstrated the company's dominance in the field of CPN and he expected the relationship to give rise to even more agreements between the two companies.
While it is Orbiscom's policy not to release the financial figures of its deals or its own valuation, it is estimated that the company is worth in excess of USD240 million, based on the sale of a 4.9 percent stake on for USD12 million in late 2000. ITG, purchased the stake in the company which had already received funding from AIB, Goodbody Corporate Finance, GLG Partners (a division of Lehman Brothers) and Enterprise Ireland.
Orbiscom is at http://www.orbiscom.com .
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