Cybercash Inc. said it expects to close its deal for Tellan Software Inc. this week in a bid to broaden its payment processing capabilities.

Terms of the deal were not disclosed.

Tellan, a privately held company founded in 1992, produces payment processing software for Internet commerce. Its 20,000 customers include merchants of all sizes.

Tellan's mission fits with Cybercash's goals of helping merchants conduct commerce in both the physical and virtual worlds.

"Tellan allows customers to enter payment information in a retail environment or an Internet environment, store it, and route it to their customer payment processor," said George Pappas, executive vice president of technology and strategic development at Cybercash.

Tellan "broadens our reach by giving us entry into a market we haven't been in," said Jim Condon, Cybercash president and chief operating officer.

The Reston, Va., company now can address the payment needs of businesses ranging from mom-and-pop size to large-scale.

In April, Cybercash bought ICVerify, which is also a payment software company.

"Although they do similar things, they fit together," Mr. Pappas said. "Together, we can get a more complete coverage of the market for payment software."

With Tellan, for example, Cybercash will be able to offer payment software on a wider variety of operating systems. Its range now includes Macintosh, Windows, DOS, and Unix.

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