Encryption Specialist RSA Hands Off the Marketing Of SET Protocol Tool

RSA Data Security Inc. announced an agreement last week to license a piece of payment security technology exclusively to Trintech Inc.

Given RSA's prominence in data encryption systems, the deal could strengthen Trintech's hand in selling software to support SET, the credit card industry's Secure Electronic Transaction protocol.

Sealing the relationship between the companies, RSA's parent, Security Dynamics Technologies Inc., agreed to acquire up to $5 million of equity in Trintech.

The arrangement allows RSA to channel its energies more toward its core businesses, said analyst Scott Smith of Current Analysis Inc., Sterling, Va. The equity, he said, is sure to boost Trintech's product development and international marketing capability. The San Jose, Calif.-based payment automation company was founded in Ireland in 1986 and has clients in more than 20 countries.

The companies did not disclose what Trintech is paying to license S/Pay, the RSA developer's kit, and related technology for payment applications that meet the SET 1.0 specification.

"RSA is giving Trintech the marketing and distribution rights to the S/Pay tool kit," said Al Sisto, chief operating officer of RSA in Redwood City, Calif. He described Trintech as "uniquely positioned to enhance the unique features of S/Pay."

Released in November 1996, S/Pay was jointly developed with or incorporated in the cryptographic systems of Tandem Computers Inc., Tandem's Atalla division, and NEC Corp. of Japan. S/Pay can help software vendors embed SET in digital cardholder "wallets," Internet browsers, home banking systems, merchant servers, and electronic malls.

RSA said more than 30 financial institutions and electronic commerce companies are using S/Pay. They include Seoul Bank in Korea, the SIBS payments association in Portugal, and e-commerce software leader Open Market Inc.

A derivative version, J/Pay, was created to meet Japanese security and operational requirements beyond those of the basic SET standard.

Trintech was one of the first S/Pay licensees and recently signed VisaNet of Brazil and Visa Austria as customers.

Trintech's on-line software includes PayPurse for consumers, PayWare for merchants, and PayGate for banks. It plans also to integrate S/Pay into micropayments, electronic checks, and stored-value cards.

"We believe electronic commerce will be the next revolutionary payment option," said Trintech co-founder and chief executive officer John McGuire. "S/Pay will help us make the smooth transition from the physical to the virtual world."

He called RSA "a terrific partner. It is the expert in security products and we are the expert in payments."

"By putting this alliance together, we are sharpening our distribution capabilities," said Mr. Sisto.

The companies said they expect other joint efforts to follow. "The Asian market will be key for SET and this gives Trintech the leverage to break into Asia," said Mr. Smith.

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