UDW Alliance Update - Paymentech & Online Resources
Paymentech Alliance Confirmed
YES - It is true!
US Dataworks technology is being used by Paymentech - the largest payment processor in the industry.
chasepaymentech.com
Accounts receivable check conversion (ARC) – Allows companies to convert paper checks to electronic ACH transactions. The document is imaged and then destroyed. Our unique partnerships with ARC hardware and software providers such as U.S. Dataworks and Retail Decisions provide a complete ARC solution.
Back-Office Conversion (BOC) – Pending regulatory approval in 2006 by NACHA, offers an alternative to POP, allowing merchants the ability to convert checks presented at the point of sale into electronic ACH items in the back office, offering faster funds availability, and a more efficient payment process.
Online Resources Alliance Update Sentiment: Strong Buy
The alliance announced between UDW and Online Resources is looking much better than I originally thought. Read on and see why!
Online Resources' (Nasdaq: ORCC - News) recent acquisition of eCom will provide many more sales opportunities for US Dataworks...
Check out this snip from a Motley Fool article published July 21, 2006...
"Other news pales against the background of Online Resources' recent announcement that it has closed on its cash purchase of bill-pay company Princeton eCom for $180 million. eCom brings with it a client base of 1,400 banks and 1,600 client billers, dwarfing the size of Online Resources' existing pool of 850 client financial institutions. The parties did not clarify whether any overlap exists among these clients."
biz.yahoo.com
UDW & Online Resources' Clients
Interesting info from Online Resources IR Department regarding their acquisition of eCom. It's all good for UDW....
Here is the snip that I'd like all to focus on, the entire excerpt appears at the end of this post....
"Online Resources will serve more clients than any other bill payment processor, and have the ability to leverage payment synergies that just don't exist elsewhere in the industry."
Entire excerpt....
"We are acutely aware of the risks inherent in such a sizeable transaction and are taking the appropriate steps to mitigate those risks. As Management has stated, we expect the near-term cost synergies to make the transaction accretive at the end of the first year. Beyond that, the longer-term strategic opportunities are what make this transaction extremely attractive. After the close, which we expect to be by mid-July, Online Resources will serve more clients than any other bill payment processor, and have the ability to leverage payment synergies that just don't exist elsewhere in the industry."
Best O'Luck,
Dow18K
Some Very Nice finds Dow.
So in summary, we now have alliances with the nation's largest transaction processor (PaymentTech) and the largest payment processor (ORCC). This would seem quite significant in combination. And we also know from the last CC that these agreements are largely transaction based. We now only need know how many checks these two process and what a stab at the per item rate might be...in due time I guess.
Nice,
DE
Thanks DE,
Glad to see that you've made the jump from Yahoo! Man-O-Man, did Yahoo! ever make a mistake IMHO. I'll still post there from time to time - hey, maybe the Yahoo! message board will revert back to its previous glory. NOT....
Anyway, yes I'd say your summary is spot on. Interesting development if I don't say so myself. I believe that UDW may be building the infrastructure for ORCC and PaymentTech who in turn can offer the ACH/ARC alternative to their clients. A win-win situation with both UDW, ORCC and PayTech making money. The more transactions that are processed via UDW tech the more money each partner can make or decide to pass the savings on to their respective clients. So you see, UDW will not have to sell to all the clients of each separately. BRILLIANT!
As for projections - I am at a loss as there are too many variables.
Now that transactional volume and revenue growth is all but guaranteed I can't wait to see what happens with the BOC offering then online merchant payments via online banking authentication and ARC/ACH.
This sure is getting exciting. It seems as though UDW has the inside track!
Best O'Luck,
Dow18K
Absolutely Dow, that's the beauty of having Clearingworks(tm) imbedded in Paymentech and ORCC's architecture...not having to sell it individually but having it automatically sold!
Yes, once all these Transactions Under Management have turned into some solid revenue growth..and we are enjoying the benefits of BOC not to mention headed towards "Credit Push" (UDW's trademarked term for online banking authentication).... I'm betting we'll think we're real geniuses...hehe.
Yes, very exciting times..with far more of the same on the horizon.
Best,
DE |
