ATLANTA, April 15, 2004 (PRIMEZONE) -- InstaPay Systems, Inc. (OTCBB:IPYS) commented today that it is seeing strong indications that merchants are moving rapidly towards broader acceptance of ATM/Debit payments.
According to analysts, more than 16 billion debit transactions were processed last year, nearly double the number from 2000. According to the American Bankers Association, Debit card popularity is soaring in the US with 65 percent of consumers using a debit card at least once a week.
Sam's Club, the second-largest U.S. warehouse club chain, which is owned by WalMart (NYSE:WMT), recently announced that it will end its pilot acceptance of Visa and MasterCard credit cards on April 21. However, Sam's Club will continue accepting Visa debit cards.
InstaPay's Kryptosima subsidiary has developed the first patented production system for delivering encrypted transactions over the Internet. To the Company's knowledge, this is the only production system enabling Internet merchants to accept ATM card ("PIN debit") payments.
Harry Hargens, President of InstaPay commented, "We're seeing a rapid transformation occurring in the merchant transaction processing industry. Heightened security concerns and increasing fraud have created an environment of concern. We believe that Kryptosima's patented system may solve these concerns. Our encryption technology ensures that an Internet consumer's transaction is protected, alleviating security issues." He added, "Having to enter a PIN number will dramatically reduce merchant exposure to fraud since a thief would not only need the individuals card and billing information, but also the PIN number which is usually known only to the cardholder."
According to US commerce department statistics and other industry estimates, eCommerce reached almost $100 Billion in 2003 and continues to grow at double-digit rates. That figure covers only the USA. The worldwide figure is larger and also growing.
(See http://www.census.gov/mrts/www/current.html for current eCommerce statistics)
InstaPay plans to generate revenues by charging merchants a fixed fee per transaction for PIN/debit transactions, unlike credit card transactions that charge a percent of the transaction. Merchants may choose to lower overall transaction costs by offering PIN debit payment solutions to consumers.
About InstaPay Systems Inc.
InstaPay's focus is on the implementation of new payment services, such as ATM card payments from home or office. The patented, easy to use Kryptosima system works with any desktop or laptop computer, enabling consumers to conduct secure transactions from any location without fear of identity theft. For additional information, visit www.instapaysystems.com and www.kryptosima.com
Forward-Looking Statements
Statements about the company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the company's actual results could differ materially from expected results. The company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.