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(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 for users.
    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 more efficient.

    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 ATM devices.

    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)

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    Updated: Thu Jul 23 18:29:39 1998