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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (7201)	6/26/1999 4:27:00 AM
From: Erik T	Read Replies (2) \| Respond to of 20297

>>>There is a strong hint in there that what CKFR is saying is, "our clients won't pay us diddle for presenting their bills, but they will pony up the dough for bill payment processing". Except the billers don't pay CKFR for payment services. All payment revenues come from the customer, or bank if they provide the service for free. My question comes back to, and maybe this is just an error in reporting, why would Allen Shulman say, "Bill payment isn't where the money is, it's in bill presentment."??? It seems strange to me that with all the info gathering done by members of this thread, there is still a lot of confusion regarding this very issue, as it seems so critical to the company going forward. Erik

To: Dwight E. Karlsen who wrote (7201)	6/26/1999 3:20:00 PM
From: TLindt	Read Replies (1) \| Respond to of 20297

>>>>So that's why I think that CKFR only took in $10K for presenting bills in the last 9 months, but made a ton of money for the payment side. Ok I hope this helps....Pete said in the April Confrence call that in the Month of March they 'presented' 10,000 bills electronically, up 50% from the month before. So the month before was ~7,000? The billers they have signed in total right now send out about 500,000,000 paper bills a month....of that in March 1999 CheckFree presented 10,000. So if they are getting 30 cents each they grossed $3,000 in March....and about $2,100 in February 1999(.3 x 7,000) The Challange in Presentment is to get mail boxes opened up to received these 'e-bill' at Banks, Brokerages, Portals, Quicken.Com, Quicken, QuickBooks....Silicone Investor? Why not? Put the mail boxes everywhere the wider the net the more fish. Invision it as a land rush in Oklahoma. Then the more mail boxes you have out there to deleiver too the more likely you are going to get an electronic presentment. For every electronic presentment CheckFree grosses ~ 30 cents. So in the wildest stretch...if all 500,000,000 bills were presently electronically each and every month there's $150,000,000 potential revenue here monthly....of course economies would kick in and charges would drop...and never would all of them go electronic. So in conclusion remember.....this is a distribution business....setting up touch points(mailboxes) to net consumers....and it is a Biller War. After all if CheckFree had 100 Companies presenting 1,000,000,000 billings a month everything would change above. And this is the angle that the banks are attacking. Now remember CheckFree offers pay anyone...ie if you dentist isn't presenting electronically you are going to get a paper bill. However from the consumer side it's all electronic on their end. This is where their revenues come from now @ $4.00 a month or $50 a year for each consumer...gross. Even it the Banks are successful in picking up billers and presenting bills themselves, and they will be, electronically they are going to want to offer them this pay anyone feature to compliment their own offering. Remember that tread survey a while back where well over 90% of us were using the pay anyone feature vs. receiving a presentment electronically? NOW I ASK YOU THE CONVIENCE IS IN THE ABILTY TO PAY ELECTONICALLY consumerly speaking, I am sure I speak for everybody whose using this that they wouldn't drop it anytime soon to pay just one bill presented by their bank and go back to using their checkbook for all the rest. So...maybe this is a real net positive for CheckFree here with a potential for some serious windfall type revenue gains much earlier then expected...as these banks agressively market to their customers something they have found a niche in....but yet have to provide an ALL ELECTRONIC offering to the consumer on his end. Which could mean driving subscriber growth for CheckFree in the process. SO CheckFree completes the Banks Offering and at the same time gives Wells, First Union & Chase a potential to be their own Mail box for CheckFree to 'Drop Ship', 'Bulk Mail'....their cut in 500,000,000 potential bills they are presenting...of which they charge 30 cents for. It's all new and who really knows for sure....but it looks like after a couple days of thinking this is another case of Pump Priming a Virgin Market Segment....I should be very good for CheckFree...IMO.