Card Services International (CSI), an Irish company, is about to enter into a joint agreement with one of the world's largest card payment organisations, The Irish Times has learned.
A company spokesman declined to comment on the deal but said an announcement could be expected in two to three weeks.
CSI, which specialises in smart card payment systems, is said to have seen off strong competition from several local competitors to secure the deal with the US based company.
Under the arrangement CSI will take total responsibility for the development of a smart card product in the partner company's portfolio.
Recent industry speculation had suggested a possible merger between CSI and Flexicom, another Irish company which specialises in multi-currency card transactions. Flexicom has denied any such move although it is believed at one point to have expressed a tentative interest in CSI.
CSI is already developing card technologies that will comply with a global standard for electronic purses announced earlier this week. It is partnering with Visa and Europay International, among others, to comply with the Common Electronic Purse Specification.
Under the new arrangement, more than 90 per cent of the world's electronic purse cards will become inter-operable. Because there are hundreds of pilot electronic purse schemes operating worldwide, there are obvious advantages in operating to a global standard once the euro becomes hard currency in 2001.
Fifty technology companies have already agreed to work on developing CEPS compliant products.
CSI plans to attract further investment into the company later this year. Some of this investment may come from the US, but Gemplus, a French company which already holds a 15 per cent stake, is also likely to increase its holding in the company.
Gemplus is the world's leading manufacturer of magnetic strip and smart cards and CSI acts as its primary distributor in Ireland. Its products are used in public and cellular telephony, financial transactions, loyalty, transportation, education, healthcare, pay TV and electronic commerce functions.
Later this month, CSI will introduce the world's largest smart card banking electronic purse scheme in Nigeria. In partnership with IBM, it won the $2 million (€1.48 million) contract to provide application software, smart cards and point-of-sale devices for the scheme awarded by Smart Card Nigeria, a consortium of 19 banks.
CSI employs 35 people in Dublin. Its main market is in Eastern Europe and Africa where high inflation and low denomination bank notes are typical features, providing an ideal platform for smart card deployment.
