Pay directly on the Net, debit card-style
Nelson Dumais - Journal de Montréal - June 4, 2003
The missing link
You might wonder why this missing link in banking services hasn't appeared sooner. The idea is incredibly simple, given that it addresses the highly complex world of banks, the Interac system and international competition-where numerous interests are at stake, efforts not always convergent, and initiatives generally quite costly.
Think about it . . . you're young, the year is 2000, 2001 or 2002, and most small dot.coms-more often than not a bunch of grossly overrated two-bit companies-have nose-dived, taking plenty of stock portfolios along with them. Now you want to convince the heavyweights that your small-time operation has just the solution they're looking for. Talk about a challenge!
You basically have to persuade the Royal Bank, CIBC, Desjardins and Co. to use your electronic payment technology so that their customers can pay their municipal taxes, and buy books at Amazon or a ticket for the MSO.
You also have to convince the debit card people at Interac that thanks to you and your technology, they'll be able to extend their service to the Internet.
One of the reasons for the lukewarm popularity of e-commerce among consumers is the fact that you have to use your credit card to make a purchase. Justifiably or not, the Net has been accused of every evil, and many are loathe to dispatch their credit card numbers into cyberspace.
But this situation could soon change thanks to Montreal firm Othentik Technologies, which has developed a direct payment system via the Internet. This means that consumers will be able to purchase CDs on Archambault's website, or pay bills received by e-mail, following a very simple procedure-much like using a debit card.
The missing link
You might wonder why this missing link in banking services hasn't appeared sooner. The idea is incredibly simple, given that it addresses the highly complex world of banks, the Interac system and international competition-where numerous interests are at stake, efforts not always convergent, and initiatives generally quite costly.
Think about it . . . you're young, the year is 2000, 2001 or 2002, and most small dot.coms-more often than not a bunch of grossly overrated two-bit companies-have nose-dived, taking plenty of stock portfolios along with them. Now you want to convince the heavyweights that your small-time operation has just the solution they're looking for. Talk about a challenge!
You basically have to persuade the Royal Bank, CIBC, Desjardins and Co. to use your electronic payment technology so that their customers can pay their municipal taxes, and buy books at Amazon or a ticket for the MSO.
You also have to convince the debit card people at Interac that thanks to you and your technology, they'll be able to extend their service to the Internet.
It's a challenge CEO Patrick Rioux and Executive Vice-President Francis Mathieu have successfully met. Well, almost. Everyone believes the technology developed by these two young entrepreneurs (both 31 years old) is ready for rollout. Everyone has expressed an interest. The only problem is seeing who'll make the first move. Merchants, banks and Interac are all waiting with bated breath. Very soon, someone might bite, and the first implementation could take place in Quebec, where automatic tellers gained their most rapid acceptance.
A stroke of genius
The principle behind the new technology is very simple. It all starts with a bill that the consumer receives either by e-mail (in the case of gas or municipal tax bills, for instance) or via a window (in the case of an online company).
An interface on the bill allows consumers to make a direct payment simply by indicating their financial institution. At this point, the company issuing the bill transfers the transaction details to the computer/server where Othentik's technology has been installed, which immediately relays the information to the consumer's bank or credit union.
The software allows the bank to open a protected https:// window in the web session of any consumer who uses online banking services (offered by all financial institutions). This window shows all of the transaction details, and prompts the consumer to accept.
The bank or credit union then approves the transaction and informs the Othentik server, which advises the company that issued the bill. All that's left to be done is to thank the consumer and it's a sealed deal-just like using a debit card. It doesn't get much simpler than this!
Not too shabby for a small company that, for the past three years, has been running on love money and the private investments of Copernic CEO Martin Bouchard and Dans un jardin CEO Gilles Sansregret. Note to the techno-watch crowd: this is one to keep an eye on!
Nelson Dumais, Journal de Montréal - june 4, 2003
