First Union pilots transpoint on eastern seaboard
November 13, 1998
Signing up for TransPoint does not necessarily mean
clients will have to use Citibank's remittance processing
services, says Tara Bullock, a First Union spokeswoman.
First Union solely is looking at TransPoint as a bill
consolidator site, much like its deal with CheckFree, she
says, and therefore should not be threatened by
Citibank's financial position in TransPoint.
The joint company was already in talks with First Union
before Citibank joined the fold, and was not disrupted by
Citibank's recent announcement, says Jessica Ostrow,
vice president of marketing at TransPoint, originally a
joint venture between Microsoft and First Data.
"If anything, Citibank's equity position reinforces our
commitment to using banks as the focal point to be the
main distributor for bill presentment and payment,"
Ostrow says.
First Union may be the first of many banks to turn to
TransPoint, particularly since CheckFree seems to have
altered its stance on bank initiated payments for billers,
says Ed Neumann, managing director at Farragut Group,
a software development and consultant firm in
Washington.
CheckFree appears to be rethinking its reliance on banks
to sign up billers and consumers, a position causing
some consternation among banks, given the fact that
CheckFree already dominates the bill payment market for
billers, Neumann says.
First Union's addition as a TransPoint pilot also means
the system will get a little more presence on the eastern
seaboard, enhancing the company's regional and
national presence, Ostrow says.
Anytime First Union signs up with a solutions provider,
it is significant, Neumann concurs. "[First Union] is well
respected in technology circles. " |
