Tempo Introduces Decoupled Debit for FI's, Hosted Payment Platform

Here's the Tempo Debit announcement:

Tempo Payments, Inc., today announced the availability of Tempo™ Debit, the first debit solution that enables financial institutions and other issuers to rapidly deploy comprehensive ACH-based debit card programs. Shattering long-standing barriers to increased debit card use, Tempo Debit allows institutions to establish debit card relationships with consumers other than their own checking account customers. Banks can now provide debit cards that draw on checking accounts maintained at other institutions.

Tempo Debit, in use with HSBC Finance Corporation’s card and retail services business, enables financial institutions to quickly establish and operate bank-independent debit payment processing through the Tempo Payment Network, or other leading payment networks, by leveraging the Tempo Payment Platform, announced today. Issuers utilizing Tempo Debit will be able to integrate decoupled debit capabilities into their existing payment infrastructure, including transaction authorization and ACH settlement.

“Decoupled debit represents the next wave in debit card programs,” said Tempo CEO Mike Grossman. “Institutions are no longer limited to providing debit cards to their own checking account holders. Debit cards are now more widely used than credit cards, but until now consumers have only been able to utilize debit programs with institutions where they hold a checking account. Now institutions will be able to compete for their debit business without requiring consumers to open a new checking account. Debit card programs utilizing Tempo Debit are able to service customers anywhere, at any U.S. bank, over any payment network.”

Tempo Debit is available in modules or as an end-to-end solution encompassing decoupled debit activities, including cardholder management, transaction processing and POS access. Tempo Debit reduces time-to-market for financial institutions to offer decoupled debit solutions and provides the ability to increase revenue and expand their debit transaction business to demand deposit account (DDA) customers from other financial institutions. Additionally, Tempo Debit lets financial institutions deliver co-branded debit card programs to merchants who are seeking to grow sales and reduce payment acceptance costs.

“Our alliance with Tempo allows us to offer a unique and cost-effective payment solution that addresses the evolving payment needs of our retail partners and their customers,” said Joe Hoff, managing director, retail services, for HSBC.

Here's the Tempo Payment Platform announcement:

Tempo Payments, Inc., today announced the availability of the Tempo™ Payment Platform, the first hosted solution that enables financial institutions and other issuers to rapidly deploy innovative card payment solutions. Tempo today also separately announced Tempo Debit, the first product available on the platform, which enables financial institutions to quickly establish and operate decoupled debit payment programs with the flexibility to access multiple payment networks.

The Tempo Payment Platform supports multiple payment types with a flexible, modular architecture that provides issuers with the ability to select the functionality they require for card transactions, including:

• Cardholder management modules for card application administration, customer service, ACH risk analysis, and system-of-record management
• Transaction processing modules for authorization, ACH settlement, NSF management, and reporting
• Access to the Tempo Payment Network as well as other leading payment networks

“The industry is on the cusp of a new era of creativity and flexibility for payment card programs and the Tempo Payment Platform is the enabler for institutions seeking to exploit the opportunity,” said Tempo CEO Mike Grossman. “They can take advantage of this hosted solution to jump-start new payment programs without having to invest time and resources in developing proprietary solutions. Rapid deployment, lower costs and flexibility are the key benefits of the Tempo Payment Platform for institutions that want to develop new, innovative payment card programs.

Tempo’s hosted software solution ensures rapid deployment at a lower cost than traditional, custom solutions. Tempo connects to the Tempo Payment Network, a low-interchange national payment network, as well as other established payment networks to ensure ubiquitous merchant point-of-sale acceptance.

“Tempo Payments’ new card issuing platform heralds a world where financial institutions will be able to issue various types of debit, credit and prepaid cards on a single platform” said Gwenn Bézard, a Research Director with Aite Group. “Tempo’s payment platform will make it easier for institutions to bring quickly to market creative card programs, without having to build yet another processing silo.”

The Tempo Payment Platform is available now as a subscription service. Pricing varies depending on the functionality and modules required.