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GOOD MORNING! Today is Sept. 20,
and this is...InformationWeek Daily!
[snip... impute your own quote marks below, since I'm lazy]
** New Online Payment Services Debut
This week brings the debut of two online payment systems that make the = same point: Credit cards are an imperfect solution for E-commerce.
ECharge Corp. USA is testing eCharge Net Account, which is expected to = launch later this year. It'll offer consumers a revolving line of credit = for online shopping and deduct full or partial payment from their bank = or checking accounts. Signed up already is MP3.com, whose customer base = of music downloaders is arguably less ingrained in the use of credit = cards and more open to options.
"Everybody keeps talking about solutions to handling micropayments = online and alternatives to credit cards," MP3.com marketing executive VP = Steve Sheiner says, "but this seems like the first business model that = handles small transactions." Besides its infamous stock of 600,000 free = music files, MP3.com also sells CDs and other products -- and the number = of purchases made on the site is growing.
ECharge chairman Ron Erickson says that by moving customer data offline, = to its own servers, and cutting out the credit-card settlement system, = eCharge can offer merchants rates between 0.5% and 1% lower than credit = cards and full data on what customers buy.
[end snip]
The last paragraph is the significant one.
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<META content=3Dtext/html;charset=3Diso-8859-1 = http-equiv=3DContent-Type> <META content=3D'"MSHTML 4.72.3110.7"' name=3DGENERATOR> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT color=3D#000000 size=3D2><FONT size=3D2> <P>> GOOD MORNING! Today is Sept. 20,</P> <P>> and this is...InformationWeek Daily!</P> <P>[snip... impute your own quote marks below, since I'm lazy]</P><FONT = size=3D2> <P>** New Online Payment Services Debut</P> <P>This week brings the debut of two online payment systems that make = the same=20 point: Credit cards are an imperfect solution for E-commerce.</P> <P></P> <P>ECharge Corp. USA is testing eCharge Net Account, which is expected = to launch=20 later this year. It'll offer consumers a revolving line of credit for = online=20 shopping and deduct full or partial payment from their bank or checking=20 accounts. Signed up already is MP3.com, whose customer base of music = downloaders=20 is arguably less ingrained in the use of credit cards and more open to=20 options.</P> <P>"Everybody keeps talking about solutions to handling = micropayments=20 online and alternatives to credit cards," MP3.com marketing = executive VP=20 Steve Sheiner says, "but this seems like the first business model = that=20 handles small transactions." Besides its infamous stock of 600,000 = free=20 music files, MP3.com also sells CDs and other products -- and the number = of=20 purchases made on the site is growing.</P> <P></P> <P>ECharge chairman Ron Erickson says that by moving customer data = offline, to=20 its own servers, and cutting out the credit-card settlement system, = eCharge can=20 offer merchants rates between 0.5% and 1% lower than credit cards and = full data=20 on what customers buy.</P></FONT> <P>[end snip]</P> <P>The last paragraph is the significant=20 one.</P></FONT></FONT></DIV></BODY></HTML>
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