(Nikkei BP Group)
(No.1 High Tech News Site in Japanese)
| VeriTec to Offer Online Payments Via VeriFone System
July 24, 1998 (TOKYO) -- VeriTec, which makes card-acceptance devices
for the banking industry, plans to offer a home-shopping payment service
|It requires that they have a "Personal ATM" device, a household smart-card
reader manufactured by VeriFone Inc. of the United States.
The service will enable online payments by cash card, credit card or
electronic money using the Personal ATM device that is leased to the
consumer and connected to a telephone line. The aim is to answer the
needs of mail-order and home-delivery companies by making payment collection
Scheduled to start in November, the service will probably have two or
three participating merchants at first. VeriTec is a venture company
established in February 1997 to sell credit card terminals, smart card
reader/writers and other card-acceptance devices for the banking industry.
On July 14, VeriTec set up a new company called the Japan Settlement
Information Center, for managing financial transactions via Personal
The center uses VeriFone's VeriSmart system as its host system. Payment
instructions output from a consumer's Personal ATM are sent first to
the center's VeriSmart system, which then routes the payment instructions
to the appropriate bank or credit card company via a card transaction
network such as the Credit and Finance Information System (CAFIS).
VeriTec plans to expand the capital base of the Japan Settlement Information
Center by two further fund injections, one in late August and the other
in late September. The companies providing the funds are largely decided.
In addition to Nissei Capital, which is a major shareholder in VeriTec,
they include a leading telephone company, city bank, regional bank,
credit card company, electrical equipment manufacturer, advertising
agency, smart card manufacturer and automobile manufacturer.
Following the two fund injections, the center will be capitalized at
around 500 million yen (US$3.6 million).
(Nikkei Digital Money Systems)