The whole story....
In Sept. 14 Seattle story "Citibank takes stake in online
billing venture", please omit reference to CheckFree in
paragraph 13. (Correcting to show CheckFree does not favor
"distribution" model.)
A corrected version follows.)
By Martin Wolk
SEATTLE, Sept 14 (Reuters) - Citibank, the nation's
second-biggest bank, said Monday it will buy a stake in
Microsoft Corp.'s <MSFT.O> online bill-paying venture, boosting
the software giant's electronic commerce ambitions.
Officials of Citibank, a unit of Citicorp <CCI.N>,
declined to say how much they had invested, other than to say
it was a "significant amount," for less than one-third of the
TransPoint venture, formerly known as MSFDC.
Microsoft and First Data Corp. <FDC.N>, which formerly held
50 percent each of the venture, continue to hold equal stakes
of more than one-third each.
As part of the agreement, Citibank will provide TransPoint
with access to its "pay anyone" capability, which allows
consumers to make bill payments online regardless of whether
the bill is presented electronically.
In return Citibank will play a role in TransPoint, based in
Englewood, Colo., which plans to launch its Internet bill
presentment and payment late this year in several major
metropolitan areas.
Eventually consumers are expected to flock to online bill
payment as an inexpensive, convenient alternative to writing
checks and paying by mail, although analysts caution that it
will be several years before most billers support the option.
In the meantime, Citibank has supported several approaches
to online bill-paying, analysts said.
"Citibank has always hedged their bets, and they are
hedging their bets again," said Bill Doyle, director of
Forrester Research's money and technology service.
Just last month Citicorp agreed to become an "anchor
tenant" on the finance site of Microsoft rival Netscape
Communications Corp. <NSCP.O>, opening a new avenue to develop
online banking business.
And Citibank is among about 18 financial institutions
belonging to Integrion, a consortium on banking technology that
is allied with International Business Machines Corp. <IBM.N>
and TransPoint rival CheckFree Corp. <CKFR.O>.
"They're playing these guys against one another, and that's
very smart," said Doyle.
Ed Horowitz, corporate executive vice president at
Citibank, said the bank believes TransPoint had created the
best model for bill "aggregation," under which a consumer will
be able to go to a single Web site, such as a bank site, to
view and pay multiple bills.
Others favor a "distribution" model, under which electronic
bills will be funneled individually to consumers.
Banks long have been wary of Microsoft's designs on their
business, and some analysts said Citibank's move could spur
other banks to form alliances with TransPoint, if for no other
reason than to stay apprised of the potential business threat.
Lewis Levin, vice president of desktop finance at
Microsoft, said officials are "certainly open-minded" about the
possibility of more financial institutions investing in
TransPoint.
REUTERS
Rtr 18:02 09-16-98
Copyright 1998, Reuters News Service
c 1997 DLJdirect. All Rights Reserved.
Copyright c 1997 Reuters Limited. All rights reserved. Republication
or redistribution of Reuters content is expressly prohibited without
the prior written consent of Reuters. Reuters shall not be liable
for any errors or delays in the content, or for any actions taken
in reliance thereon. or such other notice as may be agreed by
the parties in writing. |
