SAN PEDRO and CHICO, Calif., Jun 6, 2000 /PRNewswire via COMTEX/ --
eConnect
(OTC: ECNC) and National Data Funding Corp. announced that both companies
have
signed a letter of intent for eConnect to acquire closely held NDFC. The
letter
follows a definitive agreement, disclosed last month, in which NDFC will
provide
distribution, encryption and maintenance services for this summer's initial
shipment of eCashPads, eConnect's first secure electronic payment product.
Chico, CA-based NDFC (http://www.ndfc.com/) last year reported revenues of
approximately $10 million, as a provider of end-to-end electronic payment
services to retailers, e-commerce providers, electronic transfer networks,
and
banks and other financial institutions. NDFC, founded in 1989, processes
approximately two million monthly ATM/debit, credit, electronic benefits
transfer, and check authorizations, worth more than $500 million annually.
"eConnect is very pleased to be associated with such a dynamic company as
NDFC,"
said Tom Hughes, founder, chairman and chief executive of eConnect. "The
goals
and visions of our two companies are exactly the same, to provide secure
electronic payments for both the merchant and the consumer. And this is a
key
step in our being able to actually put the eCashPad into wide commercial
use."
As part of maintaining eConnect's "Bank Eyes Only"(TM) secure electronic
payment
system, NDFC will manage the daily activity of credit card and ATM card
usage of
the eCashPads, and will collect transaction fees charged to the web
merchants
who are paid via eCashPad. "The acquisition of NDFC by eConnect allows NDFC
to
continue with our primary focus, and provide the most secure form of
payments
today," said R. Scott Hatfield, Executive Vice President of National Data
Funding. Mr. Hatfield will become president and chief executive of NDFC
upon
completion of the acquisition, when it will become a wholly-owned
subsidiary of
eConnect.
The eCashPad will be distributed to customers, promotionally, by merchants
and
online content providers, and will be attached to the user's PC keyboard.
With a
swipe of the user's bank ATM or credit card, the eCashPad, which is
approximately the size of a PC mouse, generates an encrypted PIN with
account
number or credit card information.
Consumers simply slide an ATM/Debit or credit card through the e-CashPad,
moments after a consumer orders goods or services. The order becomes an
electronically disguised string of data, which is attached to the
customer's
order. However, unlike traditional e-commerce transactions, the customer
order
and the PIN or account number are detached, with the customer order
directed to
the merchant, and the PIN or account number forwarded to RG Tecq Linux
based
Secure Transactions management system, a system considered more secure than
traditional e-commerce platforms. Through the management system, the
payment
information is decrypted and forwarded to the payment processor, effecting
a
"Bank Eyes Only" transactions. And, though the merchant never receives the
payment information, the merchant is paid in real time, as the ~ consumer
pays
in real time.
"Our combined efforts will enable the Internet consumer to connect with
confidence," Mr. Hughes said.
Safe Harbor: Certain statements in this release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933
and
Rule 3b-6 under the Securities and Exchange Act of 1934 and are subject to
the
safe harbor created under those sections. All statements, other than
statements
of fact, included in this release, including, without limitation,
statements
regarding potential future plans and objectives of the company, are
forward-looking statements that involve risks and uncertainties. There can
be no
assurance that such statements will prove accurate and actual results and
future
events could differ materially from those anticipated in such statements.
SOURCE eConnect
CONTACT: Fred Biddle or Lew Phelps of Sitrick And Company,
310-788-2850, for eConnect and National Data Funding
Corp.
(ECNC)
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