Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I found the following article on Bloomberg Forum:

CyberCash Expects New E-Commerce Customers: Bloomberg Forum

Bloomberg News
January 27, 1999, 11:37 a.m. PT
CyberCash Expects New E-Commerce Customers: Bloomberg Forum


New York, Jan. 27 (Bloomberg) -- CyberCash Inc., a pioneer
in Internet-commerce software, expects to sign up ``one or two
major financial institutions' this year to help it finally turn
profitable, President James J. Condon said.

Condon mentioned prospects including Citigroup Inc.'s
Citibank, Barclays PLC's Barclays Bank ``or maybe an American
Express' Co. as possible customers for handling credit-card
electronic commerce, he told the Bloomberg Forum.

Barclays, Britain's second-largest bank in terms of assets,
had worked with the Reston, Virginia-based company to offer
BarclayCoin, its version of CyberCash's CyberCoin foreign-
exchange service.

CyberCash already has a credit-card partnership with the
First USA Inc. division of Bank One Corp.

That's one reason why the company is processing more than
``3 million purchases with an aggregate value on the order of
$300 million' each month, Condon said. That's about four times
the amount a year ago.

Yesterday, CyberCash reported its fourth-quarter loss
widened to $8.15 million, or 46 cents a share, from $5.3 million,
or 48 cents, a year earlier. It had been expected to lose
48 cents a share, the average estimate of four analysts polled by
First Call Corp. Revenue more than doubled to $4.4 million from
$2 million.


Year-End Profitability


``We'll be profitable by the end of this year,' said
Condon, 42, who was promoted to the president's job Jan. 11 after
10 months as chief operating officer. ``By the fourth quarter
we'll have cash-flow profitability.' By 2000's first quarter, he
said, the company will be ``just about right.'

Condon said he's confident the company's strategy to offer
commerce-verification software to merchants will be a success
with consumers, who've grown accustomed to shopping online at
Amazon.Com Inc., the biggest Internet bookseller, or through
Yahoo! Inc., the most-popular Internet directory. Neither is a
CyberCash partner.

SoftBank Corp. of Japan, which owns about 6 percent of
CyberCash, also owns about 30 percent of Yahoo!

``Consumer ask the question, `If I can do this one-click
shopping at Amazon.com, why can't I do it everywhere?' ' Condon
said.


--David Zielenziger in the New York newsroom (212) 318-2304/jcn

Print the post Back To Top
No. of Recommendations: 0
Thanks for posting this article. I had been looking for it all morning after someone mentioned the AMEX thing on the Yahoo! board.
The last quote made me wonder. Condon (I guess) said something like, "people wonder, if they can one-click shop at Amazon, why can't they one-click at other online stores?" Amazon is not a CyberCash partner. This made me (still trying to come to grips with what CYCH does) ask my own question:if Amazon can set up one-click without CyberCash, why can't all the e-tailers?
Print the post Back To Top
No. of Recommendations: 0
<<This made me (still trying to come to grips with what CYCH does) ask my own question:if Amazon can set up one-click without CyberCash, why can't all the e-tailers?>>

Given enough resources, any e-tailer could. But is each e-tailer big enough and willing to incur the expense of developing its own?

InstaBuy enables one-click shopping among multiple sites; Amazon has one-click shopping at its own site only. This is like having a Visa card (InstaBuy) and a Macy's card (Amazon); you can use the Visa/InstaBuy service at any merchant that accepts it; you can only use the Macy's/Amazon service at one location.

InstaBuy brings one-click shopping capability to the smaller and medium size merchant that cannot afford (or has no need) to develop its own one-click system. If that merchant accepts InstaBuy, web-surfers can shop more conveniently at its web store. IF CyberCash can get enough banks and credit card issuers (Citibank? American Express?) to push InstaBuy as a preferred service, the e-tailers should follow.
Print the post Back To Top
No. of Recommendations: 0
I think this situation can be compared with the original visa credit card concept. A large store like Macy's can offer it's own credit line and it's own credit card to go with it, but a store like Jane's Camping, would have to get a little black visa box (that we all know and love) and pay a hefty fee for every transaction done on it. Why do you think Macy's is pushing it's own credit cards? CYCH is going to be this little box in every small-medium merchant's store (web site). I do not belive that merchants will have the resources to set up their own system -- it will be much more efficient to set up the CYCH's system quickly and easily. That's why I bought all the shares I can afford!!

Foolerman
Print the post Back To Top
No. of Recommendations: 0
Hey all,

A large store like Macy's can offer it's own credit line and it's own credit card to go with it, but a store like Jane's Camping, would have to get a little black visa box (that we all know and love) and pay a hefty fee for every transaction done on it. Why do you think Macy's is pushing it's own credit cards? CYCH is going to be this little box in every small-medium merchant's store (web site). I do not belive that merchants will have the resources to set up their own system -- it will be much more efficient to set up the CYCH's system quickly and easily. That's why I bought all the shares I can afford!!

Well said foolerman! CYCH is designed for the masses. They also have other products too, like billing - check it out http://www.cybercash.com/. (be sure to check out how Instabuy works, too).

Add to CYCH's products, what William Melton said on Rukeyser's show a couple of weeks ago (this was posted earlier) - CYCH's numbers indicate internet commerce increasing x3, for the next 5 years. This is 3 raised to the 5th power! thats a multiple of 243! - not 15.

Yes, I too bought all the CYCH stock I could afford. Remember, CYCH is the leader - in size as well as technology.

Hope this helps, and good luck to all,

George
Print the post Back To Top