VeriSign continues to see Short Message Service (SMS) as the preferred medium for mobile banking in North America and abroad with financial services customers driving a 96 percent increase in messaging traffic from Q4 2007 to Q4 2008. VeriSign is currently working with six out of the top 10 largest banks in North America, three of the top five credit card issuers, and global leaders in online payment and remittance solutions. Financial institutions such as U.S. Bank, Fifth Third Bank, and Huntington National Bank are using VeriSign's mobile banking services to improve the overall banking experience for their customers through mobile banking alerts and other value-add mobile services.
In addition, VeriSign continues to see increased adoption of its mobile banking services in global markets. Specifically, a major bank in India relies on VeriSign to power its mobile banking and alerting services in more than 129 countries globally. These include one-way services such as withdrawal alerts, checking and salary deposit confirmations, account statements, and credit card transaction alerts, and two-way services such as balance inquiries, utility bill payments, and salary deposit inquiries. This growth in mobile banking services is in line with the broader adoption that VeriSign has seen with its A2P enterprise applications. With VeriSign Mobile Enterprise Services (VMES), the company has seen a 114 percent increase in the total number of messages delivered year-over-year with nearly one billion messages in 2008.
"Mobile banking is transforming access to financial services in both developed and emerging economies," said TowerGroup senior research director, Virginia Garcia. "In the U.S. alone, TowerGroup projects that the number of active mobile banking users will more than triple by 2010 to 20 million. Driving factors include new demands for mobility from the Generation Y and unbanked customer segments, as well as the rapid maturation of mobile technology that enables new and unique service value to customers."
VeriSign's mobile banking services allow banks and financial institutions to replicate the Internet banking experience on the mobile phone, providing customers with convenient options to access interactive services such as multifactor authentication, balance inquiries, transaction history, bill payment, fund transfers and mobile alerts via the mobile phone. VeriSign's flexible and comprehensive solution uses SMS/MMS and WAP to deliver real-time information to the mobile user, providing a foundation for value-added services. Particularly, in financial services, security is a top priority for organizations and consumers alike. SMS-based mobile banking and enterprise applications, as deployed today for most use cases, are secure end-to-end. In addition, VeriSign has implemented advanced security measures, such as strong encryption for all SMS traffic traversing the system, tight controls over access privileges, and secure connectivity standards.
"We are at a critical time in the history of mobile banking," said Charles Landry, vice president and general manager, products and innovation, for VeriSign's Messaging and Mobile Media division. "Mobile technology has improved to the point where people are skipping over online banking and going right from in-branch banking to the mobile device. New customers, from all age groups and from multiple countries, are entering the marketplace. And financial institutions are keenly aware that they must provide customer experiences that put them ahead of their competition in this uncertain economy. At VeriSign, we are not only at the center of this movement, we are helping shape it."
About VeriSign Messaging and Mobile Media
VeriSign Messaging and Mobile Media is a division of VeriSign, the trusted provider of Internet infrastructure services for the networked world. Through this business unit, VeriSign provides global application services that reliably deliver short-messages (SMS), multimedia messages (MMS), and mobile content across wireless operators and mobile devices throughout the world. As a leader in mobile messaging, mobile banking and mobile content delivery, VeriSign offers a broad portfolio of mobile infrastructure and delivery services. Offering reliable delivery, a worldwide presence, and rapid and effective deployment, VeriSign has built a trusted and respected brand with global mobile operators, media content providers and enterprises. The reach, reliability and value add of VeriSign services enable these companies to capitalize on the rapidly growing messaging and media content markets.
VeriSign, Inc. (
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2008 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.