Hypercom Aims at PC-Based Payments With Its TPI Software Deal

Payment-terminal manufacturer Hypercom Corp. on Thursday announced that it has bought the assets and technology of TPI Software LLC, a move that positions Hypercom to be a major player in the growing personal computer-based point-of-sale payments market. Founded in 2001, TPI Software specializes in applications that integrate payment functions with electronic cash registers, sparing merchants the need to have stand-alone card terminals. Its SmartPayments applications process credit, debit, and gift card payments, electronic benefits transfer cards, and automated clearing house and related e-check payments. “There's an incremental market opportunity that we're underpenetrating today,” says John Andrews, senior vice president of global services at Phoenix-based Hypercom. “The best way to get there is a rational platform acquisition, and TPI met the criteria.” Hypercom did not disclose financial terms of the deal, nor would it say how many installations TPI Software has. Clients, however, include restaurant chain Hooters of America, various other retailers, and some big processors such as Heartland Payments Systems Inc. and the former NaBanco platform of First Data Corp., according to Bill Pittman, TPI Software's principal and founder. PC-based payment technology is attracting increasing interest from merchants, especially multilane retailers both large and small, according to Pittman. “It's a growing market opportunity,” he says. Interestingly, an earlier firm Pittman founded that provided PC-based payment software, Go Software, is now part of Hypercom's chief rival, San Jose, Calif.-based VeriFone Holdings Inc. Pittman sold Go in 1999, and the firm had two intervening owners before VeriFone bought it in March 2005 for $13.4 million. Pittman and his entire team headquartered in Redmond, Wash., with a satellite office in Savannah, Ga., are staying on with Hypercom. Pittman's new title is vice president, payment solutions. Hypercom also sees an opportunity to export TPI Software's products and services. In 2005, some 61% of Hypercom's revenues came from international sources, according to the firm's annual report. “Our capabilities plus their [TPI's] capabilities equal a joint proposal for clients,” says Andrews. “Frankly we think that there's opportunity to take this beyond the US. to the world.” Neither Andrews nor Pittman would go into detail about how the deal came together, but both said the firms been familiar with each other for years.