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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This suggests that we add SDTI to the portfolio even though it is beaten down in the short term due to an earnings shortfall.
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