ClaimCard Gets Cash Infusion, New Name, Broader Focus

The ClaimCard, Inc., a host-based stored-value electronic payment firm, is about to embark on a major expansion in focus that leverages the company's core platforms. This expansion includes a change in the company's name to WildCard Systems, Inc. and an infusion of more than $18 million in new capital.

The Sunrise, FL-based company got its start using magnetic stripe host-based cards for the payment of insurance claims. Its Web-based software application, Xclaim!, helps facilitate valuation and payment of homeowner content claims. ClaimCard will become a division of WildCard Systems and will continue to focus on the insurance industry.

During the past year, WildCard Systems has been aggressively expanding beyond the insurance market. The company formed an alliance with Visa under which the company was named a preferred provider of stored value services and the processor for Visa TravelMoney. The company also has formed relationships with other financial institutions to offer new payment systems products such as virtual gift certificates, mall cards, payroll cards, travel cards, and tax refund cards.

``Our new name, WildCard Systems, articulates the broad positioning of the company as a leading provider of innovative payment systems and Web-based solutions,'' said Larence Park, president and CEO of WildCard Systems, Inc. ``We have forged key alliances in each of our major vertical markets and have introduced a raft of new products.''

The new capital, which totals $18,375,000, marked the company's third round of financing. Sutter Hill Ventures, the venture capital company that provided the company's second round, led the financing group with major participation from Greenwich Street Capital Partners II, L.P. The financing group also included E.W. Blanch Co., one of WildCard's strategic partners, and major investors from earlier rounds.

``These additional funds will allow WildCard Systems to ramp-up our product development capability and data processing infrastructure to serve customers in a broad range of commercial and consumer markets,'' Park said. ``We will also make strategic acquisitions to extend our core capabilities as opportunities present themselves.''