Payments Technologies to Include
Electronic Debit and Stored-Value Transaction Services
With acquisition of eCash Technologies'
assets, InfoSpace plans to bring merchants
and financial institutions secure e-debit card processing and
online and off-line stored value services such as
pre-paid cards, loyalty programs and gift certificates
Wash. (Feb. 19, 2002) – InfoSpace, Inc. (NASDAQ: INSP), a provider of wireless and Internet software
and application services, today announced that the Company has acquired
substantially all of the technology and intellectual property of eCash
Technologies, Inc. which include electronic debit and stored value transaction
technologies. Terms of the deal were not disclosed.
These innovative technologies are built on
an intellectual property portfolio of more than 20 patents issued in the
US and overseas. InfoSpace plans to offer merchants additional payment
mechanisms that are expected to reduce processing costs, while providing
exciting opportunities for merchants to drive new revenue streams and
strengthen their relationships with valued customers.
InfoSpace plans to add electronic debit functionality to its existing
credit card and electronic-check processing services that would give merchants
the ability to accept debit card payments. Through advanced encryption
and digital signature technology, the debit solution is being designed
to be able to authenticate the consumer and merchant, and authorize the
payment via secure protocols developed by leading debit card associations.
In addition, the solution is being designed to provide consumer identification
and real-time verification of funds, allowing merchants to enjoy the equivalent
of a "card present" transaction without certain of the fraud
and charge-back concerns of "card not present" payments.
In addition, InfoSpace plans to offer merchants stored
value coupon, incentive, loyalty and promotion services that can be redeemed
both online and offline. Stored value programs can be used in a
variety of ways by merchants to lower costs and build customer loyalty.
These programs allow cash, points, etc. to be placed on a physical card
or in an online account that can be redeemed for goods and services at
the point of sale by the customer. For merchants with existing paper-based
loyalty programs such as pre-paid cards and gift certificates, InfoSpace
plans to develop these new technologies to extend these programs into
the online world, enabling these programs to be redeemed interchangeably
online and offline.
InfoSpace plans to offer these services to its broad
network of merchant resellers including leading financial institutions
and other merchant service providers.
In the fourth quarter of 2001, InfoSpace Merchant services
processed more than $1 billion in transactions, up from $700 million reported
in the previous quarter. The total number of transactions processed
was more than 12 million, up from 9 million reported in the third quarter.
“Merchants today want innovative payment solutions
giving them higher cost savings and increased fraud protection for both
online and offline transactions. In addition, consumers want secure
and convenient payment solutions that can be used both online and offline,”
said Prakash Kondepudi, InfoSpace executive vice president, merchant.
“The acquisition of innovative technologies from eCash will enhance our
payment technologies offered through leading merchant service providers
and financial institutions with stored value payment services that address
the needs of today’s merchant businesses.”
About InfoSpace, Inc.
InfoSpace, Inc. (NASDAQ: INSP) provides wireless and
Internet software and application services. The Company develops
software technologies that enable customers to efficiently offer a broad
array of network-based services under their own brand to any device.
release contains forward-looking statements relating to the development
of InfoSpace, Inc.'s products and services and future operating results,
including statements regarding InfoSpace's purchase of assets from eCash
Technologies, Inc., that are subject
to certain risks and uncertainties that could cause actual results to
differ materially from those projected. The words "believe,"
"expect," "intend," "anticipate," variations
of such words, and similar expressions identify forward-looking statements,
but their absence does not mean that the statement is not forward-looking.
These statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult to
predict. Factors that could affect InfoSpace's actual results include
the progress and costs of the development of our products and services
and the timing of market acceptance of those products and services.
A more detailed description of certain factors that could affect actual
results include, but are not limited to, those discussed in InfoSpace's
Annual Report on Form 10-K, in the section entitled "Factors Affecting
Our Operating Results, Business Prospects and Market Price of Stock."
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. InfoSpace
undertakes no obligation to update publicly any forward-looking statements
to reflect new information, events or circumstances after the date of
this release or to reflect the occurrence of unanticipated events.
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