Israeli start-up Cyota, which develops Internet payment security technology, has signed a cooperation agreement with US credit card and electronic payment services company TSYS. Under the agreement, TYSYS will offer its clients a full range of Cyota SecureSuite technologies. SecureSuite is a modular platform that supports current and emerging secure payment initiatives. TSYS will provide managed hosting services for this partnership as well as for Cyota’s non-TSYS clients. TYSYS said the partnership would enhance its strategies of expanding its core services and capitalizing on e-business opportunities, and would provide financial institutions with an advantage in the fight against Internet fraud. The deal is expected to be worth several million dollars annually to Cyota.
Initially, TSYS will deliver a hosted 3DSecure (Verified by Visa) solution, Cyota SecureVbVä , which will enable Visa card issuers to validate the identity of their cardholders in real time, during online payment transactions. The solution is aimed at reducing disputes and fraud. Cyota was among the first companies named as a vendor supporting the Visa Payer Authentication Service, based on the 3-D Secure Interoperability Standard. TSYS is making SecureVbV available to all clients, enabling them to comply immediately with Verified by Visa. At a later stage, these clients can add other SecureSuite products as consumer demand and association mandates evolve.
SecureSuite is designed to support a wide range of authentication and credit card security products while providing a unified user experience. SecureSuite includes Visa Payer Authentication (3D Secure or Verified by Visa) and MasterCard SPA-compliant products, as well as Cyota’s proprietary SecureClick — an innovative solution that enables cardholders to shop online without revealing their real credit card numbers by issuing a surrogate number for every purchase.
“We chose Cyota because of its market focus and technology expertise,” said TSYS Group Executive Andy Marks. “We were pleased with the ability of SecureSuite to allow our clients to quickly implement Internet security solutions with minimal impact. TSYS always strives to provide its clients with cutting-edge technology designed to improve their business and their bottom line, and Cyota will help us deliver.”
TSYS offers acquiring and issuing services from accepting electronic payments for goods and services, to credit applications, collections and bankruptcy. TSYS is traded on the New York Stock Exchange at a value of $4 billion, and is one of the largest companies in the world in its field. It has more than 200 million accounts on file. TSYS processes for 23 countries in 14 currencies and four languages and maintains operations in Canada, Mexico, Japan and the United Kingdom. TSYS is an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: “SNV”)
Cyota was founded in 1999 by four graduates of IDF intelligence units. It has its development center in Herzliya and its corporate headquarters in New York. Its Cyota SecureSuite is a platform designed to serve as the backbone for integrating numerous e-payment initiatives. Cyota has several customers in Israel and around the world, among them Isracard and American Express Israel.
At the beginning of this year, Cyota raised $11 million. Investors in the company include
Giza, Israel Seed Partners (which invested in the company's previous round), Toshiba (represented in Israel by Triangle Technologies), Poalim Capital Markets, Dresdner Kleinwort Benson, Quan Ventures, iVC, and Jafco. The founders and employees also hold shares in the company.