Telecoms and Financial Institutions Team Up to Deliver Smart Card Services to Consumers' Homes Using VeriFone's VeriSmart System Software

Business Wire, March 10, 1999

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 10, 1999--

Telecom Eireann Becomes First Telecommunications Company to Host VeriSmart(TM) Smart Card Application System for Financial Institutions

VeriFone, the leading global provider of secure electronic payment solutions and a division of Hewlett-Packard Company (NYSE:HWP), announced today that Telecom Eireann, Bank of Ireland and Allied Irish Banks completed the first implementation of VeriFone's VeriSmart software by a telecommunications company for hosting financial institutions' smart card services.

The program marks a new era in electronic commerce as telecoms and financial institutions team up to deliver smart card services to the home.

Telecom Eireann is utilizing VeriFone's VeriSmart software to host Visa Cash, a Visa International product, electronic purse load-application for both Allied Irish Banks and the Bank of Ireland. Telecom Eireann is distributing VeriFone's Personal ATM (PATM) devices to as many as 500 consumers in Ennis, Ireland during the initial rollout this month.

Through the partnership with Telecom Eireann, both banks are able to immediately market and distribute smart card services by making an easy to use value loading system accessible in the homes of consumers.

VeriFone's VeriSmart software is being implemented worldwide by several major telecommunications companies, enabling them to host smart card services for banks, utilities, retailers, healthcare and government agencies. VeriSmart software is an open and flexible middleware architecture that easily integrates into the telecommunications network infrastructure.

By leveraging a telecommunications company's existing public infrastructure to run VeriSmart software, it is possible for financial institutions and retailers to save up-front costs and to offer smart card services almost immediately.

"VeriFone's VeriSmart smart card application platform software has enabled Telecom Eireann to be the first telco to bring a new value load system to market," said Fiona Tierney, head of Card and Payphone Services. "With the VeriSmart software we will be able to provide smart card solutions through devices such as cell phones, smart/screen phones, personal computers, public phones, Personal ATM devices and other smart card appliances."

Europe has aggressively adopted smart card technology over the past 10 years. As new infrastructures are established, more flexible smart card solutions are becoming available.

Telecom Eireann, Ireland's leading telecommunications company, is a primary example of this progressive technology focus and has invested significant resources to make the town of Ennis a technology center. Through the PATM devices connected to Telecom Eireann's server system, consumers in Ennis will be able to check their Visa Cash card balance as well as load Visa Cash onto their cards at home.

"The VeriSmart software with PATM devices not only offers consumers the latest technology in smart card services, but will provide us with a guide to consumer attitudes and behavior in relation to this home banking concept," said Frank Doherty, project manager, Electronic Banking, Allied Irish Banks. "The flexibility of the VeriSmart software allows us to work with the infrastructure of the telcos and deliver more smart card services to our customers."

"VeriSmart software provides a value-added service to our customers by offering them the convenience of loading their Visa Cash card in their own home," said Paddy Byrne, head of Payments and Electronic Banking Services at Bank of Ireland. "Smart card technology will play an increasingly important role in the growing area of home banking, and we are delighted to be working with Telecom Eireann and VeriFone on this exciting project."

"VeriFone's established leadership in electronic payment has helped enable the collaboration of banks, telecommunications companies, merchants and card associations to create a strong smart card infrastructure that brings new applications to consumers," said Tom Kilcoyne, vice president and general manager of VeriFone's E-Commerce Software Division. "VeriSmart software creates new services and revenue streams for all parties."

About VeriSmart

VeriSmart software is a scalable client/server technology that enables financial institutions, telecommunications companies and other service providers to implement a complete multi-application consumer smart card solution seamlessly, from processor to consumer. Once a consumer appliance connects to the server, the appliance automatically accesses the latest smart card application including Visa Cash, Mondex and Proton, providing the flexibility for integrating future smart card capabilities into the existing architecture.

About Telecom Eireann

Telecom Eireann was established in 1984 and is Ireland's leading provider of local, long distance and international telecommunications services, including mobile and data communications.

Telecom Eireann currently employs 11,000 throughout Ireland. Total revenues for Telecom Eireann in 1997\98 reached IR(pound)1.35 billion, with operating profits of IR(pound)241 million and after-tax profits of IR(pound)155 million. Capital expenditure for the year amounted to IR(pound)297 million, provided entirely from internal resources. Telecom Eireann has an installed base of 1.5 million telephone lines, which generated 8.3 billion minutes of traffic in 1997\98.