Bob, Good to hear from you....and thanks for the info on MSFT/FDC venture. It does make sense that such a move would push the IBM/Integrion consortium to a partner other than one connected to MSFT.
Last I knew, FDC was working on developing a billpay and home banking service utilizing Princeton Telecom, whose business is handling electronic billing services for various utility companies. My understanding is that Princeton Telecoms business has consisted of electronic debit of the customers account, only. So, while a MSFT/FDC/Princeton Telecom venture would have some track record in wholesale electronic settlements and electronic billing, they have a long way to go in developing the customer service infrastructure and bank front end marketing presence that Checkfree has. And what about the direct presentment CKFR can do with vendors due to the volume of users they already have signed? The other guys will have a lot of catching up to do.
What MSFT/FDC may do is keep some pricing pressure on CKFR's e-bill offering, just as Traveler's (who got into the business by buying a company called PayMate) has been doing on the customer originated bill payment part of the business. Last I heard Travelers has 12% or so of the market, against CKFR's 80%.....
Saw that CKFR just signed on Barnett Banks for 5 years. Centura and Chase Manghattan are the latest two banks to announce totally free home banking with billpay from Checkfree. Home Banking has become the loss leader of choice for the banks. At a price of $0, they WILL get some users....but CKFR will still get their $4.00 per month per customer, even if the banks are giving it away....
Holding long and considerably happier these days...
Best regards,
Brian |
