Internet Bill Payment Contest Still Wide Open Despite Predictions of Two Horse Race, According to Current Analysis
STERLING, Va.--(BUSINESS WIRE)--June 16, 1998--
Leading provider of competitive intelligence recommends that vendors
in both camps should be prepared for a partnering and pilot
free-for-all as the land-grab gets fully underway
The industry can expect multiple models to succeed in the Internet bill presentment and payment space, according to a new Advisory Report by Current Analysis examining the front runners and new entrants into the market.
As this technology suddenly bubbles to the surface, users and technology providers alike are wondering if this potentially lucrative new business will come down to just two companies controlling the market. In the face of multiple entrants, many are asking what strategy is best for users. "We believe there is space in the billing technology market for multiple vendors, and that many end-users will hedge by joining multiple pilots," said Scott Smith, principal analyst, Current Analysis.
Two fundamental models have emerged for Internet bill presentment and payment: the biller-direct model (championed by CyberCash) and the third-party consolidator model (led by Microsoft-First Data joint venture MSFDC). This week, AT&T, Intuit, and Just In Time unveiled their jointly created Open Internet Billing (OIB) spec, which proposes a third way using a thin consolidator model built around OFX-based servers.
"Because of sheer size, the industry has been calling the race in favor of MSFDC and CheckFree and the third-party model they use. With CyberCash's attention drawn toward shifts in its fundamental model, this would seem an obvious pick, but one that we think does not recognize some of the fundamental dynamics emerging in the Internet financial services market," said Smith.
According to the report, this technology's slow pace to market is no surprise - since nothing in the financial industry happens overnight (ATMs and home banking for example), and throwing the Internet into the mix makes matters doubly difficult because of the attending infrastructure problems it presents. Nonetheless, bill presentment is beginning to rival Internet telephony on the hype-versus-reality index. Technology companies, financial institutions and billers have all gotten into the game, but none have made tremendous headway in what is surely a more complicated technology to deploy than originally estimated by its proponents.
The Company believes this market is a long way from shaking out, not least because none of these services have yet been opened up for widespread use. Taking a tip from the evolution of home banking, it is the opinion of Current Analysis that many billers will hedge their bets and pilot - and possibly go live with - multiple channels to suit the number one driver pushing their business: customer demand.
For more information on this important industry development or for a copy of the full Current Analysis Advisory Report: Bill Presentment: Two Horse Race, or too Close to Call?, and other relevant reports, contact Kristine Brown or the analyst directly.
About Current Analysis
Current Analysis, Inc., based in Sterling, Virginia, is a leading source of competitive information for the business, financial, vendor and end-user communities. Founded in 1996 by Fred J. McClimans, Current Analysis uses an innovative Web-based publishing system to deliver expert analysis of industry trends and events as they happen. Current Analysis has taken a unique approach in building its analytical team. The analysts, with an average of 15 years in the industry, predominately come from the high-tech vendor community. These analysts understand that instantaneous, unbiased competitive intelligence has a critical impact on an organization's bottom line. The Company is currently focused on analysis of the Internet commerce, network infrastructure, carrier infrastructure, data warehousing, network services and information security industries. Current Analysis serves top clients, including: 3COM, Ascend, Bay Networks, Cabletron, Cisco Systems, InterWorld, CommerceNet, CertCo, GTE, Fujitsu, IBM, Ipsilon, Lucent Technologies, Netscape, Nortel, Oracle, Siemens, Paradyne and Xylan, among others. For more information, visit Current Analysis on the World Wide Web at currentanalysis.com
CONTACT:
Current Analysis, Inc.
Kristine Brown, 703/404-8631
kbrown@currentanalysis.com
or
Collaborative Communications, Inc.
Stacy Smith, 617/520-9120
smith@collaborative.com
|
