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Debitman Enters Growth Phase as Tempo Payments
New Company Identity and Brand Builds on Retailer Successes
SAN MATEO, CA — November 28, 2006 — Debitman Card today announced its new name of Tempo Payments, Inc., as the company builds on its success in providing retailers with branded debit card programs that foster consumer loyalty and drive down the cost of card payments.
After announcing four new retailer-branded card programs earlier this year, and today’s related news that Fiserv EFT will provide expanded processor access to the Tempo Payment Network for merchants issuing and accepting retailer-branded debit cards, Tempo is embarking on its next growth phase by building visibility for the Tempo Payment Network. Just as banks issue their own branded cards with a unifying MasterCard or Visa logo, retailers will be able to issue their own branded cards with a unifying Tempo logo that assures consumers of their ability to use the cards nationwide.
"Our relationships and ability to work with national processors and existing POS systems makes retailer-branded debit card issuance a quick, simple and cost-saving alternative," said company CEO Mike Grossman. "We have raised substantial investor funding to finance our market penetration, and we have struck a chord with retailers who are fed up with outrageous fees imposed by MasterCard and Visa issuers. Tempo is gaining momentum at an unprecedented rate."
This year Tempo has announced:
- Retailer-branded card programs by grocery chains Homeland Stores and Binghamton Giant Markets, and convenience/gas chains Wesco, Inc. and Wawa.
- A strategic alliance with HSBC Retail Services.
- A Series B funding round of $8.7 million in financing from investors including HSBC Retail Services, Cardinal Venture Capital and Selby Venture Partners.
- Granting of a U.S. Patent covering the company’s business model for enabling the use of interoperable merchant-branded consumer debit cards.
- Processor access via one of the largest debit authorization gateways in the U.S., operated by Fiserv.
Credit card interchange fees function like a hidden tax on consumer purchases by forcing retailers to increase prices to offset costs; in 2005, MasterCard and Visa earned an estimated $30 billion from consumer card-based transactions. Tempo, however, provides all card-accepting merchants with a low fee per transaction that is significantly less expensive and provides card-issuing merchants with co-marketing funds that can be used to promote use of the cards. The Tempo Payment Network requires no merchant changes at the point of sale because Tempo has established relationships with major nationwide processors to accept retailer-issued cards through existing payment terminals and processor networks.
"Consumers and merchants alike are tired of the dictatorial practices of the old-line card associations that are focused only on increasing their own profits by driving up the fees charged at the point of sale," Grossman said. "The current system has reached the heights of insanity when card-issuing banks penalize the use of safer PIN-secured debit solely because they reap larger fees through signature debit and force retailers to underwrite the costs of bank loyalty rewards programs. Ultimately it all comes out of the pockets of consumers. Tempo has a better economic model for retailers and consumers alike."
Retailer-issued debit cards utilizing the Tempo Payment Network can be used at more than 200,000 retail locations nationwide, including all Wal-Mart, Sam’s Club and CVS stores.
About Tempo Payments, Inc.
Tempo provides retailers a low-cost alternative to Visa and MasterCard that delivers significant savings and revenue growth opportunities. The company operates the Tempo Payment Network, a PIN-based payment network for retailer-issued and branded debit cards. Founded in 2000 with a commitment to lowering interchange fees for card transactions and generating revenue for card-issuing retailers, the company is privately held and headquartered in San Mateo, CA. For additional information, visit www.tempopay.com
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