Partnerships Promote Electronic Payment
( 4/09/98; 10:00 p.m. EST)
By Charlotte Dunlap, crn.com
Computer Reseller News RSA Data Security unveiled an exclusive licensing deal of its Secure Electronic Transactions (SET) based security payment technology,called S/PAY, to payment vendor Trintech, Thursday.
The agreement also includes a $5 million equity stake by Security Dynamics Technologies, RSA's owner, in Trintech, San Jose, Calif.
The agreement is the first in a series of joint activities between the two companies, whereby they will enhance and market S/PAY, officials said. S/PAY, described as a developer's suite for building secure card payment applications, incorporates RSA's cryptographic technology and SET, the secure credit card electronic payment standard developed by MasterCard, Visa International, and other technology companies.
Trintech is an early user of S/PAY and plans to integrate it into its own core product line, which supports payment methods such as micropayments, electronic checks, and cash cards.
Trintech officials said currently more than 30 worldwide financial institutions have adopted its technology. It is this installed base RSA is interested in.
"We're sharpening our distribution capabilities with this alliance," said Al Sisto, chief operating officer at RSA. "They are our strongest distribution partner in the business."
Such partnerships will become more prevalent in the industry as more financial institutions gear up to accept electronic payment.
In a similar arrangement, last week CyberCash (Reston, Va.) and ICVerify revealed plans to merge in a combined stock and cash deal worth approximately $57 million.
With ICVerify as a subsidiary of CyberCash, the companies are looking to be a stronger force in the burgeoning Internet payment solutions market. Merchants and banks use the two companies' electronic transaction processing software to support Internet commerce. END
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