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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Gallaspy who wrote (797)	11/29/1997 9:47:00 AM
From: TJK	Respond to of 8545

Alan, If First Data isn't CKFR's main competitor long-term then someone else will be. Does anyone really think that CKFR will control 100% of the electronic bill processing environment? Frankly, I would be quite happy with a 40-50% market share. In 5 years this market will be massive, and in 10 years who knows, 90% of all payments may be transmitted electronically (i.e. there's room for multiple competitors). Since Checkfree has such a dominating position currently, and banks will be reluctant to change (it certainly won't be easy to integrate a new electronic processor - this will deter change) something that is working very well, I have to believe CKFR will be a great investment over time (5 years). Goodluck, TJK

To: Alan Gallaspy who wrote (797)	11/29/1997 12:00:00 PM
From: Cymeed	Respond to of 8545

Dear Alan, the way I looked at the "entry barrier" is, with my very limited knowledge in the technical side (so be careful), it takes a lot of hardware and soft ware changes and configurations to set up the system. Every time when Checkfree sign up a new bank, it takes a long time for them to see revenue addition. This of course includes a period for the bank customers to react and accept. But it also indicates the complexity of the electronic configuration process. Last time when they implemented Wells Fargo into the net work, I remember it was 4th of July long weekend. I would guess it takes a lot of shut downs blah blah to set up the system. When Visa Interactive was Ckfr's competitor, I probably had the same feeling like you do about MSFDC now. Those are big names with huge resources. But to my surprise, Visa interactive raised the white flag eventually and became a part of CKFR now. This probably indicates the complexity of technology implementation as the major entry barrier, in addition to customer acceptance, name recognition, transaction security issues, etc. If I am a bank or an utility company, once I set up with well recognozed firm (inside the transaction community) like Checkfree, I would rather not easily ripp off the system, and switch to MSFDC or anybody else, especially if the later is less experienced. It can be a highly risky switch. One more thing customers liked about CKFR is, CKFR is willing to play the back-end role. Although you probably paid all your bills through CKFR, but the name you recognize is NationsBank or whoever you are dealing with. You may never heard of CKFR although you use their service all the time. Which to me it's a very smart thing the management did. As a shareholder, the only thing I care is the bottom line. I don't mind if my company is not famous. The technical people especially the CKFR employees probably can best answer your question. But the above is just my understanding for your viewing pleasure.

To: Alan Gallaspy who wrote (797)	11/30/1997 7:02:00 AM
From: Brooks Jackson	Read Replies (2) \| Respond to of 8545

Alan: you asked: < If there is a lot of gravy in the trough, then do you not feel that First Data will focus some efforts here? > Yes, of course. Just as Integrion and Intuit and Visa Interactive put in time and money before giving up. CKFR has always said it expects competition, and that at the end of the day there will be two or three dominant players, maybe more. But CKFR has an enormous head start, due to many years of work establishing electronic hookups with thousands of merchants. Nearly 50% of their payment processing is now totally electronic, and therefore VERY cheap. I think Intuit had only gotten up to about five percent electronic before giving up and selling out. Also, read MSFDC's press releases. As noted earlier on this thread, they seem to be aiming their product -- excuse me, their PROMISED product -- mainly at small banks. That's because CKFR already has the big-bank business in the bag for the next 10 years. That's what I mean by "barriers to entry." This isn't a business where a hot new software program or faster disk drive can suddently make one company and sink another. Its a business based largely on shoe leather.