Don't know reason for recent drop. Could be this:
Wednesday March 12 1:22 PM EDT
AT&T and Mondex announce electronic cash for the Internet
LOS ANGELES--(BUSINESS WIRE)--March 12, 1997--AT&T said Wednesday it is bringing the convenience of cash and the security of smart cards to the Internet using the Mondex electronic cash platform.
The company is launching a solution that will make "micropayments" -- under $10 -- commercially viable on the World Wide Web. These transactions are not cost-effective today but AT&T's solution, using Mondex chip card technology, will make Internet micropayments attractive for both merchants and consumers.
Mondex is currently the only system that enables the direct transfer of electronic cash between cards. The cash value is transferred immediately without centrally routing and collecting each point-of-sale transaction, making it the most cost-effective electronic cash system for merchants and card issuers.
AT&T's solution will be the first to bring the benefits of Mondex chip-to-chip technology to Internet commerce.
"Transaction costs make low-value Internet sales too expensive for merchants to accept using traditional payment methods like credit cards," said Keith Kendrick, senior vice president-smart payments, AT&T Universal Card Services. "But Mondex on the World Wide Web changes all that. While Mondex also works for large transactions, it makes sales as low as a few cents commercially viable for merchants."
The solution will be integrated with AT&T SecureBuy(sm) Service, which makes it easy for merchants to accept and process on-line payments and transactions. Companies that host their web sites with AT&T and use the SecureBuy Service will be among those able to take advantage of Mondex payment services.
Hewlett-Packard Co. (HP) is working with AT&T to design, develop and deliver the Mondex solution, providing technology consulting, integration services, hardware and software. OpenMarket Inc. is also
working with AT&T to develop the solution.
AT&T will test its Internet Mondex solution with selected on-line merchants beginning in the summer of 1997. Upon completion of a successful trial, AT&T expects to integrate Mondex payment services with its SecureBuy Service beginning in the first half of 1998.
"AT&T is leading the effort to make the Internet a safe and easy place to transact business. We will continue to introduce innovative payment services into our SecureBuy Service to make electronic commerce widespread," said Gary Hickox, vice president of global marketing-AT&T Networked Commerce Services.
"The World Wide Web is ideal for selling information and entertainment, such as music, articles, and games, at low prices -- especially those that can be downloaded directly to the customer," said Kendrick. "Mondex can bring this type of commerce to life. It will enable a whole new class of merchants as well as create an explosion in on-line goods and services available to consumers."
The AT&T trial will also be the first implementation of Internet Open Trading Protocols pioneered by Mondex International, AT&T and HP, due for publication in the second quarter of 1997. AT&T Labs provided a key role in their development. The protocols will provide consumers with facilities to support invoices, receipts, delivery refunds and problem resolution -- which are necessary in the real world and
must be present in the "virtual" world if electronic commerce is to be widely accepted.
Michael Keegan, chief executive officer, Mondex International, said: "AT&T is leading the world in making electronic cash a reality on the Internet. This development is a major millstone in realizing the
vast potential of electronic commerce for merchants and consumers alike."
The protocols are intended to support multiple forms of payment on the Internet and are not proprietary to Mondex. They will give consumers a consistent experience when they shop, independent of the payment method used.
The protocols are currently being reviewed by major players in the electronic commerce industry -- including other companies that have invested in Mondex, and equipment manufacturers. Once this review is complete the protocols will be placed in the public domain as a potential standard for electronic commerce on the Internet.
The protocols will complement the existing SET (Secure Electronic Transaction) protocols devised by MasterCard and VISA.
H. Eugene Lockhart, chief executive officer, MasterCard International, said: "This is a tremendous achievement in light of the rapidly developing electronic payments industry. It will propel Mondex to the
forefront of Internet cash payments."
"We are extremely enthusiastic about AT&T's use of Mondex for secure electronic cash transactions over the Internet," said Janet Crane, president and CEO of Mondex USA. "With AT&T's distinctive
worldwide leadership in technology and its use of Mondex as the Internet e-cash solution, we believe an entirely new class of profitable virtual merchants will appear on the World Wide Web."
"With the development of the Internet Open Trading Protocols, HP, AT&T and Mondex are extending the global options for delivering simple and secure electronic commerce," said Gary O'Neall, general manager of HP's Electronic Commerce Business. "HP continues to work with the world's most distinguished companies to develop advanced technology solutions that help businesses succeed in the electronic marketplace."
Companies wishing to find out how they can use the Open Trading Protocols should contact Holly Brick, Mondex International in London, at 44-171-557-5040; Holly.Brick@Mondex.com .
AT&T is one of the leading worldwide providers of telecommunications, on-line, electronic commerce, credit card and entertainment services. AT&T's Mondex solution, which will facilitate secure Internet
micropayments, complements AT&T's array of electronic commerce services including AT&T SecureBuy Service. AT&T Web Site Services is one of the top web site hosting services in the U.S. while AT&T
WorldNet(sm) Service is the leading Internet access provider.
Mondex International Ltd. was established as an independent payments company in July 1996. MasterCard International acquired 51 percent of the company in February 1997. The following companies are also shareholders in Mondex International: National Westminister Bank, Midland Bank, Royal Bank of Canada, Canadian Imperial Bank of Commerce, the Hongkong and Shanghai Banking Corp., Wells Fargo Bank, AT&T, Chase Manhattan, First Chicago NBD and 10 major banks in Australasia.
As a separate company from Mondex International, Mondex USA was established in December 1996 by a group of seven major U.S.-based organizations including AT&T, Chase Manhattan, Dean Witter Discover (NOVUS), First Chicago NBD, MasterCard, Michigan National Bank and Wells Fargo.
Paul |
