As a part of its “connected mobility” project announced earlier this year, Total System Service Inc. (TSS - Free Report) declared that it will launch its near-field communication (NFC) technology in North America. Canadian Imperial Bank of Commerce (CM - Free Report) or CIBC will be the company’s partner for the launch.
Total System’s NFC payment solution is clubbed with cloud-based products within the ‘payment theme’ of the “connected mobility” service. The technology offers easy payment and acceptance facilities through features such as real-time mobile account creation, mobile device identification and production of EMV data required for provisioning a mobile phone. The latest technology also provides support for life-cycle management scenarios. Further, issuers can use the service of any Trusted Service Managers (TSM) for NFC Payment Solution.
In May 2012, Total System announced the launch of “connected mobility” to support real-time communication through a variety of devices. The technology includes various Application Programming Interfaces (API) and other user-friendly applications. The service is characterized by three themes – payments, communications and commerce.
Total System’s “connected mobility” service is expected to cater to 24 billion connected devices by 2020, according to a research released by Groupe Spéciale Mobile Association (GSMA) in October 2011. The service had a market of 9 billion customers when it was launched in May this year. Hence, the new service is expected to drive the company’s growth in the long run.
Total System, which specializes in providing the latest payment solutions, competes with companies such as Global Payments Inc. (GPN - Free Report) , Green Dot Corporation (GDOT - Free Report) and Equifax Inc. (EFX - Free Report) .
Total System currently carries a Zacks #3 Rank, implying a ‘Hold’ rating for the short term. Moreover, considering the fundamentals, we maintain our long-term ‘Neutral’ recommendation on the shares.