Overview

N/A - 0.00 N/A - N/A N/A N/A 0

Elephant Talk Communications

Elephant Talk Communications (ETAK), is an international provider of business software and services that is addressing $200 billion credit card fraud market.  The Company’s wholly owned subsidiary, ValidSoft, possesses a paradigm shifting technology that provides symbiotic cost savings to both the banks and the users.  The Company has entered into a contractual arrangement with Visa for the provision of its fraud-prevention solutions, VALid-POS®, a sophisticated card fraud detection and prevention solution, and VALid®, ValidSoft’s multi-factor authentication platform. The Company also possesses strong telecom relationships with T-Mobile, Vodafone Group and KPN.

The technology works by correlating the origination of a purchase or withdrawal using a credit or debit card to the proximity of the card owner through the card owner's cell phone. That's a major improvement on the traditional method of trying to spot fraud, in which banks compare new purchases and transactions to past patterns. If a credit card typically used in London is suddenly buying goods in San Francisco, for instance, those new purchases may be flagged as suspicious.  The technology essentially eliminates identity theft and bank fraud and can save banks hundreds of millions of dollars a year by helping to determine whether credit and debit card transactions are legitimate or fraudulent.

 

Company Highlights

  • Signed contract with Visa Europe to utilize ValidSoft’s fraud-prevention technology, ValidPOS®.
    • Agreement allows Visa Europe to integrate and market ValidSoft as value-added services to its 4,000+ banks
    • Visa Europe has issued over 399 million credit, debit and commercials cards
    • In 2010, Visa Europe cards were used in transactions totaling $2.28 Trillion or 24b transactions/year
    • Visa Europe is issuing new cards at the rate of 17,000 per day or over 6 million per year
    • ValidSoft completing trials with 2 major banks related to VISA
  • Elephant Talk Communications has signed contracts to connect and manage wholesale clients with T-Mobile and KPN in the Netherlands, and Vodafone Group, in Spain
    • 2011: Guidance for these contracts is 1,000,000 plus subscribers by year end
  • ValidSoft Limited, a subsidiary of Elephant Talk, has the best in class solution for the global $100 billion credit/debit card fraud problem
    • The patented technology that saves money for banks by significantly reducing credit card fraud in real time
    • ValidSoft has successfully completed trials with two major banks

 

ValidSoft’s Competitive Advantage

  • Saves the Banks Money - potentially over $200 Billion a year
    • Internet Purchases, Debit & Credit Card Fraud cost the US over $100 Billion a year
  • Recurring Revenue Business Model - charge banks a per transaction lookup fee
    • Bank customer churn reduced - lower false-positive rate, increased customer satisfaction, reduced restitution costs European Privacy Seal - protects the privacy of the individual and ValidSoft is only security software company to receive

 

Management Team

  • Management has invested approximately $50 million of personal capital to build the network platform
  • Senior Management sold previous telecom business, Telfort, to KPN for over 1 Billion Euros
  • Rijkman Groenink, former CEO of ABN AMRO Holding N.V., serves as member of the Board of Directors