An Irish company, Flexicom, claims to have developed the first euro-compliant credit card software to adhere to Visa International's standards. The Flexicom product was used in Brussels yesterday in a pilot test carried out by Visa International, which involved the purchase of a euro-branded wristwatch for 36.86 euros using a euro-denominated test card. Flexicom's software - or an equivalent - will be required by any retailer or bank wishing to process transactions in both their national currency and the euro from January 1st, 1999. This represents a potential market of about eight million points of sale throughout Europe, and Flexicom plans to double its 60-strong workforce in Ireland within the coming year.
Flexicom's software is already used in multi-currency transactions at 11,000 locations throughout Europe and North America.
The new software was developed by the Dublin company last August in an attempt to exploit opportunities presented by the introduction of the euro for its business. Flexicom specialises in multi-currency card transaction software.
From January 1st, 1999, for three years, payment cards and cheques will be the only method of conducting a euro transaction at a retail point of sale. Flexicom will now exploit this three-year "cashless window" by facilitating non-cash euro transactions using credit and debit cards.
Many European businesses have already indicated that they will switch to the euro from January 1st, 1999, as they consider it will reduce the cost of doing business with foreign counterparts.
Card organisations view the three years until euro notes and coins are introduced on January 1st, 2002, as a golden opportunity to increase card usage.
Welcoming the first transaction, Mr Hans van der Velde, president of Visa in Europe, said: "We anticipate that, during the transition period, European banks will progressively migrate their customer accounts from national currencies to the euro. We therefore expect that payment cards will play a vital role in familiarising the European public with their new currency."
