Editor's Note:  This came across the news wires today and in fairness, I thought I'd share it with the PIN Payments News Blog readers.  After speaking with HomeATM CEO and Chairman, Ken Mages, he asked me to remind readers what he said a couple weeks back: PIN on PED vs. PIN on the Web

"I'll make this last promise or take a lunch bet with anyone...that once software PIN goes live, within a month, an FTP site will arise with it's user's PAN and PIN numbers.  I One-Hundred-Percent (100%) guarantee it."  - kgm - Chairman/CEO - HomeATM ePayment Solutions

To read a White Paper comparison on "Hardware vs. Software" Security Click the Picture Above Left (PIN Debit Payment PDF) and it will open.  Here's Acculynk's Press Release:

Secure PIN Debit Payment Method Could Increase Online Debit Card Transactions and Lead to Additional Internet Purchases

SAN FRANCISCO--(BUSINESS WIRE)--A new Javelin Strategy & Research (www.javelinstrategy.com) study reveals that a majority of surveyed debit cardholders feel confident about using their personal identification number (PIN) to make online purchases with PaySecure, a new Internet PIN debit payment method provided by Acculynk.

The study, commissioned by Acculynk and PULSE, evaluated debit cardholder perceptions and attitudes about PaySecure, and included 500 U.S. debit card users who purchased online in the last year. Participants used PaySecure for a mock online purchase and then answered a series of questions about their experience using the product.

According to the study, 80% of survey participants would use PaySecure when it is presented by a trusted merchant, 65% of survey participants would feel safer buying on the Internet with PaySecure, and 48% would buy more often on the Internet if they could pay with PaySecure.


“Our research shows that consumers are more willing to complete an online purchase when they feel the transaction is secure,” said James Van Dyke, Founder and President of Javelin.

“In the current economic climate, debit payment methods that increase consumers’ perceived security will be preferred by more consumers.”

Key Findings From the Custom Survey:

•   93% of survey participants found PaySecure easy to use, with 88% stating they understood that the PaySecure PIN-pad scrambles the number pad to increase the security of their transaction.
•   89% of participants like the fact they would pay directly on the merchant’s website without being redirected, and 86% like that PaySecure does not require additional passwords, log-ins or one-time use numbers.
•   78% agreed that entering their PIN on the PaySecure PIN-pad was similar to and as simple as entering their PIN at the ATM or grocery store.
•   79% of participants would feel more secure using their debit card online with a PIN than using their debit card without a PIN.
•   64% of participants would use PaySecure for all of their online debit card transactions if asked by their merchant to do so.
•   63% of participants would prefer to pay with PaySecure than pay using PayPal.

Methodology

The study was commissioned by PaySecure provider Acculynk and PULSE and conducted by Javelin Strategy & Research. The study, conducted in March, 2009, recruited 500 U.S. adults to participate. Participants were targeted to obtain U.S. nationally representative groups based on age, gender and annual household income. To qualify for the study, participants were required to use their debit card for at least 40% of point of sale purchases and Internet purchases, and made a purchase on the Internet in the last twelve months. Participants used the PaySecure PIN-pad for a mock online purchase and then completed a survey of agree/disagree questions to question the product’s ease of use, consumer acceptance and perceived security. Agreement for an item was determined as 7 or greater on a 10 point scale.

About Javelin Strategy & Research

Javelin is the leading independent provider of quantitative and qualitative research focused exclusively on financial services topics. Based on the most rigorous statistical methodologies, Javelin conducts in-depth primary research studies to pinpoint dynamic risks and opportunities. Javelin helps its clients achieve their initiatives through three service offerings, including syndicated research subscriptions, custom research projects and strategic consulting. Javelin’s client list includes some of the largest banks, credit unions, card issuers, and technology enterprises in the financial services industry. For more information about this or other Javelin reports, please visit www.javelinstrategy.com/research or call (925) 225-9100.

About Acculynk

Acculynk is a leading technology provider with a suite of software-only services that secure online transactions. Backed by a powerful encryption and authentication framework protected by a family of issued and pending patents, Acculynk’s services provide greater security, reliability, convenience and return on investment for consumers, merchants, networks, issuers and acquirers. For more information, visit www.acculynk.com.

About PULSE

PULSE is one of the nation’s leading ATM/debit networks, currently serving more than 4,500 banks, credit unions and savings institutions across the country. PULSE is owned by Discover Financial Services (NYSE: DFS). The network links cardholders with more than 289,000 ATMs, as well as POS terminals at retail locations nationwide. The company is also a valued resource for industry research related to electronic payments and is committed to providing its participants with education on evolving products, services and trends in the payments industry. For more information, visit www.pulsenetwork.com.
Contacts

Javelin Strategy & Research
Kathleen McCabe, +1-925-225-9100 ext. 15
Marketing Director
k.mccabe@javelinstrategy.com

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