Recognizing the importance of secure transactions in bringing Internet commerce to its anticipated growth of $220 billion by 2001, VeriFone, the leading global provider of secure electronic payment solutions, announced today the first shipment of Internet payment products based on the Secure Electronic Transaction (SET) 1.0 standard, signaling the dawn of truly secure, globalized Internet commerce.
SET, developed by MasterCard and VISA in partnership with VeriFone and other industry leaders, is a standard protocol designed to safeguard credit card purchases made over open networks such as the Internet.
In recent surveys by independent consulting groups, over two thirds of Internet users polled showed a reluctance to pay for purchases using a credit card due to security reasons. Once implemented, SET is expected to allay these fears, enabling a dramatic increase of Internet commerce transactions.
“As a global vendor for electronic commerce products, VeriFone’s solutions, based on the SET protocol, will allow businesses and consumers to unlock the potential of the Internet as a safe, convenient way to shop on-line with a MasterCard,” said Steve Mott, senior vice president, Electronic Commerce/New Ventures at MasterCard International.
Representing the broadest deployment of SET in the world, VeriFone’s products are targeted to be implemented in the world’s largest processors including, First USA Paymentech in North America, GZS-Germany, SSB-Italy, NETS-Singapore and FDR in the UK.
The world leaders in banking are also planning to adopt VeriFone’s solutions including, Wells Fargo Bank and Bank America Merchant Services Inc. in the United States, Royal Bank of Canada, Sumitomo Credit Services-Japan, Garanti Bank-Turkey and Caja Rural de Almeria-Spain.
Together, these processors and banks represent over 200 financial institutions and over a million merchants who will have access to VeriFone’s Internet payment product suite, vGATE, vPOS and vWALLET, to conduct secure transactions across the Internet.
Sistema 4B, the largest processor in Spain, and one of the first to implement SET within Europe, is one of the first customers to implement the production version of vGATE 4.0 based on the SET 1.0 protocol. vGATE is a virtual gateway for accepting and processing volume Internet transactions. Sistema 4B has been using VeriFone’s product to successfully facilitate multiple bank Internet payments, connecting merchants and consumers around the world.
“The deployment of SET products by key industry players such as VeriFone is critical to ensuring the standard of trust and high level of service that Visa customers have come to expect,” said Steve Herz, senior vice-president of Visa International.
“The first shipment of products based on the SET 1.0 protocol marks a watershed event in the market for Internet commerce,” said George Hoyem, vice president and general manager of VeriFone’s Internet Commerce Division. “VeriFone is providing the kind of powerful, flexible, trusted solutions that financial institutions, merchants and consumers have come to expect from us as the industry leader.”
VeriFone was a pioneer in bringing electronic payments to the retail market and is now using this knowledge as the foundation for delivering electronic payment systems to the virtual market place. To help make Internet commerce a reality, VeriFone offers a comprehensive payment suite based on the SET 1.0 protocol to financial institutions and processors (vGATE), merchants (vPOS) and consumers (vWALLET).
“Microsoft and VeriFone have worked together closely in support of the SET initiative,” said Rich Tong, vice president, Personal and Business Systems Group at Microsoft. “The integration of their SET 1.0 vPOS with Site Server, Enterprise Edition allows us to provide end-to-end industry leading eCommerce solutions for merchants and financial institutions worldwide.”
VeriFone is dedicated to offering easy to use commerce solutions. Industry leaders like Microsoft, Netscape, and Oracle are integrating VeriFone’s payment engine, vPOS, into their commerce products, making complete solutions available to a wide range of merchants. OpenMarket is also planning to integrate vPOS into their e-commerce offerings.
“As a pioneer in secure transaction protocols, Netscape believes that standards such as SET are essential for conducting electronic transactions over the Internet,” said Taher Elgamal, chief scientist at Netscape. “The introduction of SET 1.0 systems from industry leaders like VeriFone will help the Internet continue to grow as a platform for Internet commerce.”
“Customers of Oracle’s electronic commerce products need to integrate their solutions into payment systems,” said Beatriz Infante, senior vice president of Oracle’s Application Server Division. “The integration of VeriFone’s vPOS software into Oracle’s range of electronic commerce offerings provides a secure and efficient answer.”
In addition, VeriFone’s solution is compatible with the leading SET certificate authorities, VeriSign and GTE CyberTrust. Products from these certificate authorities are a key element in SET transactions, making adoption and implementation of SET 1.0 based products smoother and faster.
“VeriFone is clearly leading the way to a SET 1.0 world,” said Stratton Sclavos, president and CEO of VeriSign. “The combination of a VeriFone SET1.0 solution integrated with VeriSign certificate services, will allow banks and financial institutions a simplified, turn-key implementation for deploying merchant and cardholder services.”
A SET Transaction
VeriFone’s open architecture and partnerships with technology leaders enables seamless integration of the Internet commerce suite for financial institutions, merchants and consumers. For example, after receiving the easily downloaded digital certificate from VeriSign or GTE and storing it in the vWALLET, a customer shops at an Internet storefront built on a Microsoft, Netscape or Oracle Internet commerce server.
To purchase, the customer clicks the pay button which activates the vWALLET. After choosing a credit card, the transaction is signed and encrypted with the digital signature, and sent to the merchant for the order through vPOS, and to the bank for payment authorization. The transaction passes through the vGATE, is authorized, re-encrypted and returned to both the merchant and customer, completing the transaction.
VeriFone, Inc. (), a wholly owned subsidiary of Hewlett-Packard Company, is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. VeriFone has shipped more than six million electronic payment systems, which are used in over 100 countries.
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