Quebec company offers new way to shop online
Sylvie Pesme - Electronic Commerce Institute - March 6, 2003
Customers can pay bills from their bank account, buy on credit directly through their online banking service ...
Since all transactions are processed through their bank, consumers never have to give merchants their credit card number on the Internet, and no third party is involved.
The Quebec company Othentik Technologies is offering a new online payment system that doesn't require the use of a credit card.
The system allows payer authentication and payment authorization to be handled through the consumer's financial institution, rather than a computer system owned by another company.
The solution, dubbed HyperPaymentTM, creates several different online payment options. Customers can pay bills from their bank account, buy on credit directly through their online banking service, and even make debit purchases. Since all transactions are processed through their bank, consumers never have to give merchants their credit card number on the Internet, and no third party is involved. Naturally, online vendors have to have already signed an agreement with Othentik and their bank.
When consumers want to make an online purchase, a link takes them to the website of their financial institution. Cybershoppers then enter their ID and password to complete the transaction. The merchant receives a confirmation number from the bank, indicating that the transaction has been completed. At no point, however, does the vendor have access to the buyer's credit card number or password.
Othentik Technologies' HyperPaymentTM technology has been patented in some 20 countries, and should be commercially available soon. A report by the Canadian Payments Association (CPA)-prepared jointly with Othentik and due for publication March 31-should establish a national regulatory framework for electronic payments.
A breakthrough, we hope, for reticent consumers who still refuse to buy online because of security concerns.
Sylvie Pesme - Electronic Commerce Institute - March 6, 2003
http://www.institut.qc.ca/ice/_generic/portal/catalog/c120.cfm?selectedmenu=V&highlight=1&sidemenu=1&courseID=566&newsname=nlDocumentationCentre
Sources : Les Affaires, Bénéfice.net
