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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5672)	8/19/1999 1:02:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Global Tele to launch secured payment services on the net Source : BS Aug 18, 1999, 8:35:42 AM gtl.co.in Telecommunication equipment supplier and software developer Global Tele Systems, together with PricewaterhouseCoopers and Deutche Bank, will soon launch secured electronic payment services over the Internet, a company official said yesterday. This service is being launched for the first time in the country. Global Tele is investing around Rs 12 crore in setting up the gateway payment infrastructure, said the official who did not wish to be named. The service will connect banks, merchants, retailer, credit card companies and portal sites wanting to settle e-commerce transactions over the Internet. Banking transactions will be speeded up as the service does away with the involvement of Reserve Bank of India's clearing house in the process. While transactions currently take 1-3 days to be cleared through two differed banks, those via Global Tele's payment service can be done within seconds. The transactions will be routed through special infrastructure, for which Global Tele will provide the hardware and front end software; Deutche Bank will be the clearing bank to settle transactions; PricewaterhouseCoppers will audit the product and also try to integrate Global Tele's products with its enterprise resource planning solutions for business to business transactions. Global Tele Systems may charge banks nearly Rs 100 per transaction. Irrespective of the transaction's size, the charges will be lower for business-to-business transactions, the official said. If a bank, say Bank X, gets a check from one of its customers drawn on say Bank Y, then Bank X sends the check to the Reserve Bank of India's clearing house, which forwards it to Bank Y for verification and releasing the funds. As soon as the clearing house receives the confirmation it releases the funds and debits Bank X, which in turn debits the client's account. The whole process can take between 1 to 7 days. The consortium's secured payment services will be an interface between the two banks through the Internet. A secured payment gateway will be set up, allowing the customer to log into the web site of Bank X to deposit an electronic check. Bank Y will communicate with Global Tele's gateway through a leased line. Global will transfer the information about the check to Deutche Bank and to Bank Y though its network, verify the check and ask Deutche Bank to transfer the funds to Bank X. Deutche Bank will collect the funds from Bank Y, and thus work as a clearing house for all partner banks.