Entrust Expands SET Certificate Interoperability

Entrust Technologies, Inc., the leading provider of Certification Authority (CA) and public-key management products, today announced that Secure Electronic Transaction (SET) 1.0 certificates issued by its Entrust/CommerceCA interoperate with merchant, wallet and payment gateway products from GlobeSet and Trintech. This capability highlights the maturity of the SET 1.0 standard and demonstrates to customers the flexibility of a multi-vendor, standards-based environment.

“Interoperability of SET certificates with payment applications is critical to accelerating the worldwide deployment of secure Internet payment services,” said John Ryan, president and chief executive officer, Entrust Technologies, Inc. “This cooperation highlights how real-world public-key infrastructures (PKI) are enabling and forwarding secure business-to-business and business-to-consumer electronic commerce.”

“As the industry’s premier OEM-provider of SET software, GlobeSet is proud to enable Entrust to deliver SET 1.0 capability and guaranteed certificate interoperability to the widest range of SET application vendors in the world,” said Michael Cation, chairman and chief executive officer of GlobeSet. “We are also proud to play a critical role in the practical implementation of SET and the realization of the promise of secure electronic commerce.”     “Trintech is delighted to be involved in this industry-wide initiative.

Consumer and merchant confidence is essential to the success to electronic commerce. SET is an important key to unlocking the latent potential of the Internet. Trintech with the help of public-key providers, such as Entrust Technologies, is witnessing an explosion in interest in this exciting new payment medium as proven security standards are developed,” says John McGuire, chief executive officer of Trintech Inc.

To be commercially available in the second quarter of 1998, the Entrust/CommerceCA product is an extension to the Entrust/Manager(TM) software. Entrust Technologies is the only company offering certificate-based security solutions all from a single Entrust public-key infrastructure to serve intranet and Web-based needs and SET applications.

With the SET extension, an Entrust PKI will allow companies such as banks, large retailers or other credit card-issuing organizations to become a SET CA, permitting them to issue certificates to consumers, merchants and payment gateways involved in SET transactions. SET certificates accompanying consumer and merchant software applications provide strong authentication through digital signatures and transaction confidentiality through encryption, paving the way for secure electronic commerce.

Entrust Technologies is dedicated to ensuring the privacy and authenticity of data communications enterprise-wide. Its award-winning public-key infrastructure technology combines encryption and digital signature capabilities with fully automated key management. Widely used by financial institutions, government agencies and high-tech corporations, the Entrust software family provides a complete security solution across multiple platforms for desktops, corporate networks, intranets and the Internet. Entrust Technologies is headquartered in Richardson, TX with offices in New York, San Francisco, Los Angeles, San Diego, Philadelphia, Boston, St. Louis, Raleigh, McLean, Ottawa, Toronto and Montreal. Entrust is a majority-owned subsidiary of Nortel (Northern Telecom). It was recognized by Red Herring Magazine as one of the top 50 private technology companies of 1997.

Visit Entrust Technologies’ Web site at

Entrust is a registered trademark of Entrust Technologies Limited. All Entrust product names are trademarks of Entrust Technologies Limited. All other company and product names are trademarks or registered trademarks of their respective holders. SET Secure Electronic Transaction, Secure Electronic Transaction, and SET are trademarks of MasterCard International Incorporated and Visa International Service Association.


Mid-Size Players Part I

Among card issuers with more than $100 million but less than $200 million i receivables, secured card issuer Orchard Bank posted the most significant change last year. However another mid-size, secured card issuer, First National Marin, posted a loss. According to other data released this week by Bankcard Update/CardData, secured card/sub-prime issuers, as a whole, had a banner year with growth averaging about 30%. Meanwhile low-rate specialists Amalgamated and AFBA experienced lackluster growth while AR-based Simmons posted average gains among this peer group. Carolina First and First Commerce Bankshares of Nebraska grew nearly three times faster than others within this segment.

       Issuer              97 EOY RECV          96 EOY RECV   CHANGE
Amalgamated         $106,181,259         $104,349,680    +1%
       Frst Natl Marin      111,586,662          115,723,000    -3%         
       Zions                120,914,196          115,741,852    +4%
       AFBA                 139,274,792          150,218,574    -7%
       Carolina Frst        149,076,886          127,031,717   +17%
       Orchard Bank         152,030,416          114,774,355   +32%
       United Missouri      152,846,773          148,006,183    +3%
       Central Carolina     167,582,952          162,551,636    +3%
       Simmons              177,043,975          165,981,357    +6%
       Regions Finc         179,192,786          173,137,519    +3%
       Frst Commerce (NE)   180,564,211          155,857,321    +16%
       Group Total          $1,636,294,908       $1,533,373,194  +6%
               Source Bankcard Update/CardData Jan 98 issue


DebitLink Firm Buys MovieVision

Sims Communications, Inc. announced Friday the company has acquired MovieVision, Inc. in an exchange of common shares.

MovieVision, Irvine, California, provides automated video rental through on-site machines in some 140 hotels nationwide, 70% of them in the Orlando, Florida resort area.

Mark Bennett, President and Chief Executive Officer of Sims, said that MovieVision, a 10 year old company and the leader in this niche market, allows Sims entre into the travel and hospitality industries and provides perfect synergies with Sims other products and services.

“Our target market for MovieVision’s services are the traveling businessman and the tourist,” said Bennett, “the same market that we are tapping for our cellular phone rental and pre-paid calling cards. Therefore, this acquisition provides significant advantages for us, including economies of scale, because the technology is the same. We expect that we will be able to expand the market for MovieVision immediately.”

Bennett added that this acquisition, coupled with the recent announcement that Sims intends to acquire 1 One Medical Service, L.L.C., a leader in providing financial transactions for the home health care industry, indicates that Sims is dedicated to a strategy of expanding its technology and services into additional synergistic markets.

Sims Communications, Inc. has developed a revolutionary counter top credit and ATM card transaction terminal (“DebitLink”) primarily for the purchase of goods, services and financial transactions. This unit includes the capability of phone card activation, customer frequency programs, check guarantee, Medi-Cal verification and pre-paid cellular time activation. The company is also involved in cellular phone rental.


Pandesic Gets Award

Five companies were awarded with The Best of Showcase awards at the second annual Internet Showcase conference Friday.  Based on product, performance and presentation honored the following companies with the award

Tut Systems’ HomeRun  Tut’s innovative HomeRun technology and products create a low-cost, Ethernet-compatible LAN for the home using existing in-home telephone wiring without disturbing existing telephone service.  HomeRun enables multiple PCs, peripherals, and other devices such as IP telephones to simultaneously connect to each other and to high-speed Internet devices.

Silverstream Software’s Silverstream  Silverstream’s next-generation Web application platform is a comprehensive solution that allows developers and power users to easily develop and deploy sophisticated, HTML and Java-based business applications, accessing both structural relational databases and rich content.

Net Objects’ NetObjects Fusion 3.0  NetObjects Fusion 3.0 is a web site building application that lets users create dynamic business web sites with visual appeal, interactive data, and e-commerce.  NetObjects Fusion’s open environment lets you integrate the content needed for your site, including media, documents, HTML pages, scripts, components and databases.

Personify Personify Real-Time Server  Personify’s real-time marketing software gives E-businesses a competitive edge by allowing them to gain insight about their customers.  Personify’s Real-Time Server allows marketers to leverage the data their Web sites generate into predictive user profiles and segmentations to drive increased response rates.  The result is more people hitting the buy button, the send-me more information link, or staying on a site longer and returning more often.

![][1]     Pandesic’s The Pandesic Solution  The Pandesic E-business solution is a bundle of software, hardware and services that allow merchants to real-time electronic business.  It allows merchant access to all the business functions including credit card transaction, inventory management, financial accounting, shipping and vendor payment — all in real-time.

Sponsors for Internet Showcase ’98 and the E-Commerce include Apple Computer (Nasdaq AAPL),  AT&T (NYSE T), Cidco, Inc. (Nasdaq CDCO), General Magic (Nasdaq GMGC), Intel (Nasdaq INTC), Intershop Communications, Inc., InterTrust Technologies Corporation, Lands’ End (NYSE LE), Lotus Development Corporation (NYSE IBM), Microsoft (Nasdaq MSFT), The Nasdaq Stock Market, Netscape Communications Corporation (Nasdaq NSCP), Novell (Nasdaq NOVL), Pacific Bell Internet Services, PR Newswire and Vignette Corporation.

Internet Showcase is a presentation of Upside Events, the conference production and management unit of Upside Media, Inc., publisher of Upside Magazine, and David Coursey, editor and publisher of coursey.com, inc.  Both companies are privately held and based in San Mateo, CA.

[1]: /graphic/pandesic/pandesic.gif


CU Winners

While many bank issuers of credit cards struggled this year to hold onto marketshare and in some cases threw in the towel, credit unions continue to show significant growth with small portfolios.

       Credit Union         97 EOY RECV         96 EOY RECV         CHANGE
       Boeing              $183,994,455        $152,051,002         +21%
       Teachers (IN)        126,200,869         126,003,965          NC
Baxter                89,409,084          79,317,952         +12%
       Redstone              75,449,176          58,035,365         +30%
       Tyndall               63,844,270          56,042,653         +13%
       Lockheed              49,680,280          46,816,317         + 6%
       Mich. St Univ         48,953,884          43,504,990         +12%
       Aberdeen Prov.        45,976,202          37,053,000         +24%
       NW Airlines           33,835,059          23,604,362         +43%
       State Dept            29,766,030          28,129,786         + 6%
               Source Bankcard Update/CardData Jan 98 issue


Exec TeleCard Adds Director

Executive TeleCard, Ltd. announced Friday that Mr. James O. Howard has joined the Company’s Board of Directors. Mr. Howard brings to the Company a vast range of experience in the telecommunications and financial services industries.  His expertise in administration, legal, growth development and management, combined with his background in credit card products and payment systems provides a strong addition to the Company’s Board.

In his position as Chief Financial Officer of Benton International Inc. he is responsible for implementing polices that more than doubled revenues and doubled the number of domestic offices as well as establishing overseas offices and improved technology during his six year tenure.  His most recent accomplishment was his role in the negotiations and completion of the sale of Benton to Perot Systems Corporation.

From 1981 to 1990 he was a consultant at Benton International specializing in strategic planning and product development for the financial services industry.  One of his longest client relationships was with MasterCard International, where he maintained office for several years as the senior consultant on site.

His legal career includes General Counsel, National Commission of Electronic Fund Transfers, Acting Chief Counsel, National Telecommunications and Information Administration, U.S. Department of Commerce, and from 1974-1976 he was in the Office of the General Counsel, White House Office of Telecommunications Policy.  His office advised the President on policy matters relating to telecommunications and computers.  His education includes graduation from the Yale Law School, where he was a founder of Yale Legislative Services and a fellowship at the Maxwell School of Public Administration.

“We see Mr. Howard’s appointment to our Board of Directors as a significant addition to our Company,” commented Executive TeleCard CEO, Christopher Vizas.

Executive TeleCard, founded in 1987, is an international communications service company providing voice and data services via its World Direct global network to major corporate and carrier partners worldwide and providing enhancements to its partners’ global calling cards.  Executive TeleCard’s products and services include  global calling card services, national calling card platform services, global internet access (eGlobe), international and domestic toll-free service (Service 800) and multi-currency, detailed billing.


Affinity Phone Cards

OR-based 1-800-PRE-PAID signed agreements this weekend with Pepsi to produce a promotional prepaid phone card in conjunction with Pepsi’s new logo design. 1-800-PRE-PAID will print 8,000 of the cards for distribution to employees in Pepsi’s western markets. The phone card company specializes in affinity marketing and says it will announce several major deals with airlines offering a generous bonus to mileage program members. 1-800-PRE-PAID already offers prepaid cards through United Airlines, America Airlines and Reno Air.


EDS Jobs

The ‘Year 2000’ or ‘Y2K’ business is so red hot EDS’ CIO Services announced Friday it will hire an additional 500 programmer analysts as ‘Year 2000’ consultants. A key component to the EDS compensation package is a “Millennium Bonus” which returns a percentage of profits to each employee in the Year 2000, based on tenure. EDS signed more than $125 million in new business last year to fix the millennium bug. The firm’s financial services group recently signed Sumitomo Bank and Philips Semiconductors.


Capturing $16 Trillion of US Payments

Despite huge expectations surrounding electronic commerce, major financial and security challenges remain to be addressed before e-commerce takes off, according to David Readerman, an Internet software analyst for NationsBanc Montgomery Securities.

“We are watching closely to see if the Internet is up to the task of taking on true electronic commerce,” Readerman said. He defined electronic commerce as an “online exchange of payments,” rather than simply the exchange of data.

Readerman made his comments to investors attending NationsBanc Montgomery Securities’ 15th Annual Technology Week investment conference, which has run since January 27 and ends today. The conference has attracted more than 1,900 investment professionals to hear presentations by 147 public companies and 35 private companies. During the conference, NationsBanc Montgomery Securities analysts are conducting a series of workshops that provide attendees with up-to-the-minute analyses of a wide variety of industry segments.

Readerman focused his concerns about the Internet on its ability to handle secure transactions. “Authentication becomes really important on the Internet, since the buyers and sellers can’t physically see or talk to each other. You’ve got to be sure the customer is who he says he is, and, for that matter, that the customer needs assurance that the merchant is who he claims to be,” Readerman said.

In addition to consumer transactions, other types of electronic transactions that may increasingly move to the Internet are banking, stock brokerage and payments processing.

One of the challenges for companies hoping to profit from electronic commerce is that the current U.S. electronic payments systems already works well, Readerman said. For e-commerce to grow, it must offer merchants and customers a better value proposition at a lower cost, he said.

Major financial institutions, including Visa, Citicorp, BankAmerica and NationsBank are moving quickly to solve transaction security issues and to make e-commerce financially viable compared to current shopping, procurement and payment systems, Readerman said.

Once these problems are addressed, the market opportunities are vast, Readerman said, since there are $16 trillion worth of payment flows and transactions in the U.S. annually, including $351 billion in consumer-transactions annually.

NationsBanc Montgomery Securities LLC (NMS), a subsidiary of NationsBank Corporation, is a full-service investment bank and brokerage firm with approximately $800 million of regulatory capital. The company provides research, trading and issuance in the equity and fixed-income markets (high yield, emerging markets, high grade and mortgage-backed markets). Other services include M&A advisory, financial buyer coverage, loan syndications, global investment banking, real estate finance, mortgage finance, money markets and the primary dealer.

Through NationsBank, NMS clients can also access products and services that include senior bank debt, bridge financing, real estate banking, treasury management, trade finance and risk management (derivatives products and foreign exchange).

NMS is a registered broker-dealer with the Securities and Exchange Commission and is a member of the National Association of Securities Dealers and the New York Stock Exchange. NMS employs more than 2,200 investment professionals.


GCF Expansion

General Credit Forms announced Friday the acquisition of a facility in Albany, Georgia that manufactures a range of business forms including credit card transaction products. The Georgia manufacturing plant is owned by Moore USA and employs 110. In addition to the acquisition agreement, GCF entered into a long-term supplier agreement to produce Moore’s credit card transaction forms. GCF, based in Earth City, MO with 200 employees, produces payment receipt products for the credit card industry as well as a number of non-paper based products including credit card advertising material, merchant management services and electronic terminal services. GCF’s last acquisition occurred in 1995 with the purchase of Golden Business Forms.


Smart Phone Card Potential

Smart phone cards will help wireless and cellular service providers, including AirTouch, AT&T Wireless, GTE, Sprint PCS, and Western Wireless, to sign up one-half billion subscribers worldwide by 2002. This is one conclusion from a new study published by Killen & Associates, “Smart Card Opportunities for Phone Card Providers.”

“Smart phone cards are ideally suited for the wireless and cellular service businesses for a number of reasons,” said Michael Killen, President of the company, “Many wireless customer prospects are poor credit risks. Smart phone cards enable wireless service providers to offer service to these and other prospects with appropriate prepayment or charge requirements.”

“Services providers can also expect new subscribers and revenues from smart card multi-funtionality,” added Killen. “The same smart card that is used for wireless phone service will also be used for transportation, small purchases, and possibly Internet purchases. Co-branding partnerships built around the increased capabilities of smart cards will benefit all parties.”

Loyalty programs will also help grow the revenues of telephone companies because smart cards can store data needed for the most complex loyalty programs. Service customers will be inclined to build up credits of all types on their smart phone card.

Additional details about the study are available at the company’s Web site, . For more information contact Karl Duffy at tel 650 617-6130, FAX 650 617-6140, or e-mail, karl@killen.com

The company’s studies and video series enable high-level executives and their teams to identify business opportunities created by advances in computer and telecommunications technology, changing customer needs, and the competitive landscape.

Killen & Associates is the only research company that provides a series of half-hour video interviews with each study. Business dignitaries who have shared their insights in such interviews include the Minister of PTT Germany; the head of Oftel, UK; the former chairman of AT&T, and the leaders of Europay, S.W.I.F.T., Mondex, VISA France, and 400 other companies.


Partners First Finalized

Consultant First Annapolis says its new monoline credit card services company, Partners First, is up and running. The joint venture was announced September 4 by Bank of Montreal, Harris Bank, BankBoston and First Annapolis. Under terms of the original agreement Bank of Montreal/Harris Bank will own 69%, BankBoston 19% and First Annapolis 12%. Bank of Montreal is kicking in $115 million in cash and its Harris Bank card portfolio. BankBoston is contributing a $1.2 billion card portfolio in exchange for $5 million in cash and a share of the new company. Under terms of an earlier agreement First Annapolis developed the portfolio segment BankBoston is contributing, which represents mainly out-of-core- area accounts.