"The Federal Reserve Board is overseeing an effort by financial institutions to disperse people, records, and operations and to duplicate business functions at multiple sites - a change in strategy from the months following the Sept. 11 terrorist attacks when most companies relied on security guards checking IDs in downtown office lobbies."
"Forty-seven percent of consumers said they would put their trust most in banks for safely handling e-wallet services, followed by 12 percent for Microsoft, according to Gartner. 38 percent of consumers said they did "not at all" trust Microsoft and 29 percent said they did not trust AOL with their personal and financial information."
"Even American Express Co. -- the company that led the industry into smart cards with its launch of Blue in 1999 -- admitted for the first time that the program has been slow going of late. David Bonalle, the vice president and general manager of advanced payment enterprise development at American Express, said that the problem, in a nutshell, is that any new application requires a $300 million investment in infrastructure."
Amex is farming out four processing functions, all of which it considers commodities: mainframe processing; mid-tier processing, which includes maintenance of servers for hosting Web functions and office automation; PC desktop support; and the technical help desk for employees. The financial services company will continue to oversee architectural design and application development. "We did a very surgical process of splitting the responsibilities," said Mr. Salow, who is also an Amex executive vice president. "IBM is taking over a set of things that are important, but do not create a competitive advantage for the company."
I'll leave it to a member of our Fool Community to sum it up. "My MasterCard just went bye-bye, and I don't even own any stock in PayPal yet," said cookedstock. "I just want to be able to use it, when I want, with my credit card. I don't like the idea of MC shutting me out."
"Under Egg's system, users enter the recipient's email address, select the debit card or Egg account that the payment will come from and choose one of two security questions -- a shared password or the sender's mobile phone number. The system sends an email with a unique Web address, where the recipient answers the security question and enters the bank account details to which the money should be paid. As with a cheque, the funds take three to four days to transfer."
"New federal money-laundering rules will cover a broader swath of the financial-services industry than previously disclosed, going beyond new requirements on banks and securities firms to cover credit-card companies, mutual funds, wire-transfer firms and commodities dealers."
"Shares of online payment system PayPal fell 2% Friday on news that MasterCard would no longer work with third-party credit card payment systems. PayPal is working hard to get an exemption from the change, reported Friday by USA TODAY, and due to take hold May 1. Many analysts expect the two to work out a deal."
A new rule by MasterCard could crimp online commerce by stopping merchants from accepting credit card payments through third parties, such as the popular PayPal, USA TODAY has learned. Unless a settlement is reached, on May 1 Internet merchants and other mom-and-pop firms that rely on third-party billing could miss out on sales via the USA's No. 2 online credit card. And MasterCard holders could have a harder time using their cards at many sites that use PayPal and similar services, says Gartner analyst Avivah Litan.
"The TelePay consortium, which comprises Systems@Work, Gemplus Technologies, Mobile e-Services Bazaar of HP, VISA International and Suntec City, will be working with 35 more merchants, bringing the number to 50, during this trial period."
"In entering into agreements with Web site developers, Microsoft has not required Web sites to use Passport on an exclusive basis," Cole testified. "By contrast, I understand based on Mr. Borthwick's direct testimony that America Online has entered into an agreement with Amazon.com...to use its Screen Name Service authentication service exclusively."
"The Networks365-based technology will enable single click payments from the mobile phone displays for micropayments while larger sums will require password entry."
"We're not suggesting that Passport is going to be the login of the enterprise," says Sohn. "That's not what Passport was designed for." Instead, Microsoft now concedes that Passport will simply be one of several consumer authentication services on the Internet.The article also includes speculation that Microsoft may end up joining the Liberty Alliance after all.