Dynamics Wins Best of Show at FinovateFall 2011 as Industry Votes for Dynamics’ Chip and Choice™ Technology to Fix Crippling EMV Flaw in Europe

Dynamics Wins Finovate Best of Show For Second Year in a Row

A Dynamics card with Electronic Stripe(R) and Chip and Choice(TM) technology. (Photo: Business Wire)

Finovate Fall 2011

PITTSBURGH--()--Dynamics Inc., an innovator in next-generation payment cards, won Best of Show of FinovateFall 2011 in New York City for the second year in a row, this time with its Chip and Choice™ technology.

Introduced this week as an immediate remedy for EMV’s critical software fragmentation problems, Dynamics’ Chip and Choice™ technology includes two chips – a secure, embedded chip and an exposed chip. A user can select different payment options by pressing different buttons on the card. Dynamics’ secure, embedded chip then writes a different, temporary chip profile into the exposed chip based on the user’s selection. In doing so, a user can select and use different payment applications even with readers that do not support such applications. This level of flexibility, unique to Dynamics payments cards, negates the needs for costly infrastructure updates in order to deliver powerful new functionality to merchants, networks, card issuers, and consumers.

Dynamics Chief Executive Officer Jeff Mullen said, “Dynamics is humbled to win Best of Show at Finovate for the second year in a row. The award validates our position as the only technology-agnostic innovator in payments. With our first Best of Show win a year ago we revolutionized magnetic stripe payment technology in the United States. Now we are revolutionizing EMV chip technology in Europe with our second win.”

Mullen continued, “After 15 years of EMV deployment in Europe, 63% of European magnetic stripe cards and 83% of European magnetic stripe point-of-sale terminals are also EMV chip enabled. To realize new payment applications in Europe, the software in each reader must be updated. Europe, however, cannot wait the 8-10 years needed to fully upgrade terminals each time a new payments application is desired by a consumer. With Chip and Choice™, Dynamics’ fixes one of EMV’s most significant flaws and, in the process, dramatically accelerates the ability for European banks to deploy new payment applications.”

Finovate is the industry’s launch pad for financial technology innovation. Best of Show is determined by a vote from the event’s attendees. Approximately one thousand industry decision makers attended the event. Sixty three companies demonstrated new technology at the event.

Dynamics’ award-winning Electronic Stripe®, the world’s first fully card-programmable magnetic stripe, is also included on the card. As nearly 100% of European point-of-sale terminals have magnetic stripes, but only 83% of European POS terminals are chip enabled, the Electronic Stripe® can be utilized to convey the user’s selection for any purchase at any terminal. Accordingly, when a user presses a button on the card, information associated with the user’s selection is also written onto the Electronic Stripe®.

For example, a user can use the buttons on his/her card to select to pay for a purchase with credit or to pay for a purchase with rewards. The user can swipe the card at a magnetic stripe terminal and information regarding the user’s selection may be communicated through the Electronic Stripe®. If the user inserts the card at a chip-enabled terminal, the card will communicate the user’s selection through Dynamics’ Chip and Choice™ technology.

Dynamics’ Chip and Choice™ and Electronic Stripe® technology can be utilized in any country with EMV penetration. For example, Dynamics’ Chip and Choice™ may be utilized in the 40% of Asia Pacific’s point-of-sale terminals that are chip enabled and Dynamics’ Electronic Stripe™ technology may be utilized in the near 100% of Asia Pacific’s point-of-sale terminals that have magnetic stripe readers. Dynamics’ technology provides cardholders in all markets with new, advanced capabilities and a more meaningful and seamless payments experience.

About Dynamics Inc.

Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its President and CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast-cycle innovation to top card issuers, the company's first commercial application is the world's first fully card-programmable magnetic stripe for use in next-generation payment cards. The company has won many of the world's most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company won DEMOgod and the $1M People's Choice Award at DEMO Fall 2010 and Best of Show at FinovateFall 2010. In January, the company won Best in Show at the 2011 International CES for Personal Electronics. Dynamics has closed a $5.7M Series A round led by Adams Capital Management and a $35M Series B round led by Bain Capital Ventures. Dynamics is headquartered in Pittsburgh, Pa. More information on the company, its technology and applications can be found at www.poweredcards.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50006545&lang=en

Contacts

For Dynamics Inc.
Allen Bush, 650-283-3575
Allen.Bush@edelman.com

Release Summary

Dynamics Wins Best of Show at Finovate Fall 2011

Contacts

For Dynamics Inc.
Allen Bush, 650-283-3575
Allen.Bush@edelman.com