Hypercom Rolls out EFTSec 2.0 Point-to-Point Encryption in the United States; No Per-Transaction Fees

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Hypercom Corporation (NYSE: HYC) today announced the immediate availability of its HyperSafe® Secure EFTSec Server™ 2.0 point-to-point payment data encryption system for processors and ISOs supporting Tier 4 merchants using Optimum T4200 countertop and M4200 mobile payment terminals in the United States. A key component of Hypercom’s HyperSafe Secure suite, EFTSec 2.0 encrypts cardholder data during transaction processing, starting at the payment terminal and ending at a trusted point where the data is decrypted.

“Each retailer’s unique needs dictate the type of point-to-point security system required. Secure payment transaction companies who support retailers clearly must adapt to and support those diverse requirements to keep the customer’s business”

EFTSec 2.0 leverages Hypercom’s proven EFTSec technology, which is the industry standard for payment terminal initiated link encryption in Asia and is the largest operational end-to-end encryption implementation worldwide. EFTSec is used by major banks whose combined assets exceed US$170 billion, and is licensed to and implemented by several major terminal manufacturers in Asia. An estimated 3.4 million card payment transactions are protected every month in the four countries whose financial institutions have adopted EFTSec as the de facto standard.

Unlike recently introduced competitive systems, EFTSec 2.0 incorporates Hypercom’s HyperSafe® Remote Key System (HRKS). With HRKS, EFTSec 2.0 can be remotely activated on the entire installed base of Optimum 4200 terminals. In this manner, HRKS eliminates the costs and disruptions incurred with competitors’ solutions that require physically removing installed terminals, shipping them to off-site secure rooms for key injection, and then shipping them back to the merchant for reinstallation. Hypercom’s HRKS has already completed more than 250,000 remote key injections.

Also in contrast to competitors’ systems, and perhaps most significant to Hypercom customers, EFTSec 2.0 includes no per-transaction fees for retailers, processors, gateways or ISOs.

“Each retailer’s unique needs dictate the type of point-to-point security system required. Secure payment transaction companies who support retailers clearly must adapt to and support those diverse requirements to keep the customer’s business,” said T.K. Cheung, Vice President, Global Quality and Security, Hypercom Corporation.

“EFTSec 2.0 squarely answers our customers’ uncompromising call for proven and trusted point-to-point encryption without the oppressive, never-ending transaction fees that others are trying to force on the market. With our own EFTSec 2.0, and through our strategic partnerships with Voltage, First Data and MagTek, we provide multiple vendors' technologies resulting in the broadest suite of security solutions, each addressing a unique need to cover all segments of the retail market. And, we are considering making this technology available to support competitors’ payment terminals,” said Mr. Cheung.

EFTSec 2.0 is one of Hypercom’s five key initiatives to boost the payment card industry’s ability to thwart payment card data fraud. Hypercom's HyperSafe Secure suite delivers the payment industry's broadest range of security options to protect businesses, simplify security implementation and includes solutions from an array of companies.

The HyperSafe Secure suite uses the proven industry standard Triple DES DUKPT algorithm and incorporates Hypercom's full X509 public key infrastructure HyperSafe security layer in every Hypercom Optimum payment terminal. HyperSafe protects the terminal and applications from hackers and malware, protects the terminal management system from communicating with fraudulent terminals, complies with industry best practices for data origin authentication requirements, and ensures the secure transport of cryptographic keys. The HyperSafe security layer is provided as a standard feature in every Optimum payment terminal at no additional cost.

About Hypercom

Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services. The Company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Hypercom is a founding member of the Secure POS Vendor Alliance (SPVA) and is the second largest provider of electronic payment solutions and services in Western Europe and third largest provider globally.

Hypercom, HyperSafe, and Optimum and Design are registered trademarks of Hypercom Corporation. EFTSec Server is a trademark of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.

This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market acceptance of new products, product capability and performance, product competitiveness, product sales, revenues and profits and market share. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include: industry, competitive and technological changes; the loss of, and failure to replace any significant customers; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and services; compliance with industry standards, certifications and government regulations; the ability of security and encryption technology to protect terminals and applications from hacks and malware, protect the terminal management system from communicating with fraudulent terminals, comply with data origin authentication requirements, and ensure the secure transport of cryptographic keys; the performance of suppliers, contract manufacturers and subcontractors; risks associated with international operations and foreign currency fluctuations, the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-K and subsequent 10-Qs and 8-Ks. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. HYCP