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

To: EaglePutt who wrote (9836)	11/29/1999 9:33:00 PM
From: Mohan Marette	Read Replies (3) \| Respond to of 12475

Ass-kicker in the making : Global Tele sets up E-Commerce payment gateway EagleP: If you invest in Indian stocks here is an ass-kicker in the making. I have been in it for almost an year and quite pleased with their 'road map' and performance. Worth watching for sure since they are turning their focus to eCommerce. As for the others you mentioned, no kiddin' is all I am saying. You know what I even picked up a few BRCD afterhours at much lower that today's close, hope I don't lose my ass tomorrow.<g> and oh don't forget to take some profits as you go along unless you are very long and have a strong gut. ================= gtl.co.in Rajiv Goel (et) NEW DELHI 29 NOVEMBER EMERGING infotech company Global Tele Systems Ltd has become the country's first to set up a payment gateway infrastructure for enabling e-commerce over the Internet. A payment gateway acts as validating agency and is a necessary middle link for large-scale e-commerce as it dramatically speeds up payments for goods/service providers. Global Tele has tied up with Verifone, a subsidiary of Hewlett Packard, for the technology. It has also tied up with Deutsche Bank, which will act as a clearing agent for e-commerce transactions. Telco, Tata Finance and Telco dealers would be among the first to conduct business over the net using Global Tele's secured payment gateway system. These companies have already signed MoUs with Global. Global Tele informed BSE last Friday that it was in the process of setting up a secured payment gateway system. It has told the BSE that it has entered into an MoU with Verifone. The agreement says that Verifone will not provide the technology to any other Indian company for the next 12 months. Verifone is the world's largest payment processor with 65 per cent of the global market share. The infotech company has said that negotiations were on with three major banks and a pilot project would commence in January 2000. It has said that it was in dialogue with several NBFCs and corporates for marketing services relating to the payment gateway. The process goes like this: Through tie-ups with banks, the payment gateway provider will try to ensure that using on-line invoices, money from the account of one company is credited to that of another. The banks will obey debit instructions from a company to transfer funds from its accounts to another. No cheques will be issued from company to company. When, say, an automobile company needs to pay a component vendor, it will simply go to its bank's website and click on a transaction icon. The payment gateway Tele will provide the software for the company to issue on-line instructions to the bank to pay the vendor's bank. In Global Tele's case, Deutsche Bank would act as the clearing bank. When contacted, Global Tele vice-chairman declined to comment on the tie-ups visualised under the project. The payment gateway will provide third-party transaction processing services for enabling inter bank, business to business (B2B) e-commerce and business to commerce (B2C) transactions over the Internet. Global Tele expects the value of B2B transactions over the Net through its network to be in the region of Rs 3,000 crore in the year 2000. It expects to sign up with more than 100 web merchants for acquiring B2C transactions, which would translate into an additional transactions worth about Rs 1,000 crore in year 2000. Under the agreement, Verifone will look after the security of the network, while under another agreement, Equifax will look after credit card requirements. The company expects to forge agreements with banks, institutions and database companies to facilitate payment gateways. The company is understood to have reached agreements with three to four banks having approximately 800 branches among them. The revenue for Global Tele will be on the basis of pay-as-per-usage. KPMG will be auditing the risk profile and the operations, while PricewaterhouseCoopers (PWC) will be the firm auditing the payment security aspect. As the contract with PWC is on per transaction basis, the auditing will be done on a regular ongoing basis. As the payment gateway would allow transactions to be on real-time basis, it would reduce costs for corporates. Therefore, Global Tele expects companies to pressure their banks to hook up with the network. The payment gateway will support multiple switches for multiple banks. This would enable systems integration. The Global Tele's gateway already conforms to SSL standards and company officials are confident that it would achieve SET standards soon