VerifySmart (VSMR: OTCBB): ("VerifySmart" or the "Company"), a global leader in secure and fraud free credit/debit card payment processing and transfer services, has signed a Memorandum of Understanding (the "MOU") with Mr. Theodore 'Teddy' Permadi Rachmat of Indonesia.
The MOU outlines the terms of an Agreement ("the Agreement") between Mr. Rachmat and VerifySmart to form a Joint Venture Company (the "JV Company") to introduce the Company's proprietary suite of fraud prevention and detection technologies to financial institutions, businesses, and economic development groups in Southeast Asia, with first right of refusal for Asia and the Middle East.
The signing is a timely and strategic move for VerifySmart as it partners the Company's intellectual property with one of Indonesia's wealthiest and most influential businessmen and founder of the multi billion dollar Triputra Group conglomerate. Under the terms of the MOU, the new JV Company will be based on a 50-50 revenue sharing model, and will, merging VerifySmart's in-place development and implementation team with Mr. Rachmat's legacy of influence, immediately access one of the most robust and highly-developed commercial transaction environments in the world.
The opportunity for the JV Company lies is the ever-expanding chasm between the unprecedented speed at which Southeast Asia's technological and economic environments develop, and the financial community's inability to harness or eliminate crippling credit/debit card and online transaction fraud loss. VerifySmart's patent pending technology reduced credit/debit card fraud loss numbers to zero in initial testing.
"I am extraordinarily optimistic about the opportunities afforded by VerifySmart's intellectual property and the patent pending protections on their IP," says Mr. Rachmat. "Southeast Asia is desperate for fraud loss solutions that can be implemented in the near term. I believe VerifySmart has the solutions and we are certainly well positioned to move quickly to implement them."
Southeast Asia - the vast and densely populated area of Asia including Singapore, Indonesia, the Philippines, Brunei, Thailand, Cambodia, Laos, Vietnam and Malaysia, is very evolved technologically and boasts some of the highest mobile phone subscription rates in the world. The mobile and online commercial transaction growth rates for many member countries therefore are extraordinarily high - up to 40 percent annually. This extraordinary growth is matched only by a tandem increase in crippling credit/debit card and online transaction fraud losses.
From his position at the very top of Indonesia's financial community, overlooking all of Southeast Asia, Mr. Rachmat is keenly aware of the risks at both ends of the transaction - for a) institutions and merchant groups issuing fraud-susceptible credit and debit cards, and transferring large volumes of in-bound expatriate cash, and b) for individuals holding 100% liability credit and debit/cash cards with no built-ins for effective fraud prevention or detection.
VerifySmart Honorary Chairman Adi Muljo, returned Saturday from Indonesia where he penned terms of the MOU with Mr. Rachmat, a former PT Astra colleague. Both gentlemen look forward to working together again. "It is an honor to be working again with Teddy, and on such a worthwhile project as improving the safety and security of Indonesia's people and her financial institutions," says Mr. Muljo.