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GO-Tags May Replace Cash and Credit Cards

First Data's GO-Tags are electronic sensors small enough to transform any device into a payment card

CEO Capellas recently staged a flashy preview of the new tech for Democrats Ray Ng

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August 28, 2008 at 4:00 AM UTC

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After Kohlberg Kravis Roberts bought First Data for $26 billion last year in one of the largest LBOs ever, the firm approached Michael Capellas about taking the helm. At first, the former MCI and Compaq CEO wasn't so sure he wanted the job. The low-profile First Data was in the unsexy business of authorizing credit- and debit-card transactions for banks and retailers. But when Capellas did his homework, he began to see the offer in a different light: First Data could be a pioneer in the next wave of electronic commerce. Since he took over as chief executive last September, he has been focused on turning that vision into reality.

The strongest outward sign of Capellas' efforts surfaced this week at the Democratic National Convention in Denver, where First Data is based. The company demonstrated its newest technology, called GO-Tag, by distributing small buttons to 5,000 journalists and delegates. When they tapped the buttons on electronic sensors at concession stands in Denver's Pepsi (PEP) Center, they got free snacks and drinks.