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Technology Stocks : S1: Doing Business in a Dot Com Depression, -V1 -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (526)	7/27/1999 8:55:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 1013

My recollection is that S1 structures these deals so as to get a small piece of each transaction processed. Tuck, actually, S1 gets paid based on the number of users (customers). This is the smallest count since one user could have multiple accounts and each account can have numerous transactions. Still, if you add up the many millions of customers at each FI, the revenue numbers become huge with only modest penetration of the banks' customers. My guess, though I have no factual basis for it, is that business banking services are more likely to end up as transaction driven revenue models. The reasons are simple. First, the customer numbers would be smaller, but the transaction volumes bigger on average and more variable between customers; and second, businesses and their bankers are accustomed to transaction based pricing. JMO, Bob