InfoSpace Extends Payments Technologies to Include Electronic Debit and Stored-Value Transaction Services
BELLEVUE, Wash.--(BUSINESS WIRE)--Feb. 19, 2002--
With acquisition of eCash Technologies' assets, InfoSpace plans to
bring merchants and financial institutions secure e-debit card
processing and online and off-line stored value services such as
pre-paid cards, loyalty programs and gift certificates
InfoSpace, Inc. (Nasdaq:INSP - news), a provider of wireless and Internet software and application services, today announced that the Company has acquired substantially all of the technology and intellectual property of eCash Technologies, Inc. which include electronic debit and stored value transaction technologies.
Terms of the deal were not disclosed.
These innovative technologies are built on an intellectual property portfolio of more than 20 patents issued in the US and overseas. InfoSpace plans to offer merchants additional payment mechanisms that are expected to reduce processing costs, while providing exciting opportunities for merchants to drive new revenue streams and strengthen their relationships with valued customers.
InfoSpace plans to add electronic debit functionality to its existing credit card and electronic-check processing services that would give merchants the ability to accept debit card payments. Through advanced encryption and digital signature technology, the debit solution is being designed to be able to authenticate the consumer and merchant, and authorize the payment via secure protocols developed by leading debit card associations. In addition, the solution is being designed to provide consumer identification and real-time verification of funds, allowing merchants to enjoy the equivalent of a ``card present'' transaction without certain of the fraud and charge-back concerns of ``card not present'' payments.
In addition, InfoSpace plans to offer merchants stored value coupon, incentive, loyalty and promotion services that can be redeemed both online and offline. Stored value programs can be used in a variety of ways by merchants to lower costs and build customer loyalty. These programs allow cash, points, etc. to be placed on a physical card or in an online account that can be redeemed for goods and services at the point of sale by the customer. For merchants with existing paper-based loyalty programs such as pre-paid cards and gift certificates, InfoSpace plans to develop these new technologies to extend these programs into the online world, enabling these programs to be redeemed interchangeably online and offline.
InfoSpace plans to offer these services to its broad network of merchant resellers including leading financial institutions and other merchant service providers.
In the fourth quarter of 2001, InfoSpace Merchant services processed more than $1 billion in transactions, up from $700 million reported in the previous quarter. The total number of transactions processed was more than 12 million, up from 9 million reported in the third quarter.
``Merchants today want innovative payment solutions giving them higher cost savings and increased fraud protection for both online and offline transactions. In addition, consumers want secure and convenient payment solutions that can be used both online and offline,'' said Prakash Kondepudi, InfoSpace executive vice president, merchant. ``The acquisition of innovative technologies from eCash will enhance our payment technologies offered through leading merchant service providers and financial institutions with stored value payment services that address the needs of today's merchant businesses.'' |
