Datawire Communication Networks

About Datawire Communication Networks

Datawire Communication Networks Inc. was a Toronto-based company established in 1999 that specialized in Internet-based transaction delivery. The company's core offering was the Datawire VXN, a globally deployed Transaction Delivery Network designed to securely and rapidly transport real-time data, such as financial transactions, over the internet. This network was fully managed by Datawire, providing a reliable alternative to traditional dial-up or dedicated frame relay connections for point-of-sale (POS) transaction processing.

The business model centered on providing this secure transport network to payment processors and merchant acquirers. Its clients were some of the world's largest players in the payment processing industry. By using existing internet connections like DSL, Datawire's solution offered significant cost savings, increased flexibility, and faster transaction times—reducing processing from 15-20 seconds via dial-up to under two seconds. The system authenticated each transaction using a unique customer identifier called a Datawire ID (DID) to ensure security.

A significant milestone in the company's history was its acquisition by First Data Corp. (now part of Fiserv), a major electronic commerce and payment services provider, on February 21, 2007. The financial terms of the deal were not disclosed. This acquisition was a strategic move for First Data to enhance its commitment to Internet Protocol-based transactions, integrating Datawire's VXN technology with its own products like the FD-100 terminal. At the time of the acquisition, Patrick Cummiskey was the CEO of Datawire. Between 2000 and 2003, the company had raised over US$10 million in venture capital from firms including CIBC Capital Partners and EdgeStone Capital Partners.