Bank Invests $6.5M In On-Line Processor

HONG KONG - First said it has received a strategic investment of $6.5 million from Bank of Bermuda. It bought one million shares and holds warrants for an additional one million.Bank of Bermuda is the clearing bank for First's multinational on-line credit card processing program.

"This investment demonstrates that both companies recognize the importance of working together to create a comprehensive third-party processing solution for banks and their merchants," said First president and chief executive officer Gregory Pek.

Bank of Bermuda executive vice president Alan Richardson said, "We have been working closely since earlier this year and are very excited about what this investment will mean, not only for the two companies but also for the vast number of banks and their merchants that understand the clear advantage of outsourcing payment processing."

In a move to coordinate its payment processing with shipments of goods, First on Monday announced an agreement with Federal Express Corp. The Memphis express-delivery company is to offer First's service to Asian customers and plans to participate in a joint, automated settlement system for tracking, delivery, and payment.

Consultant, Author Joins EDI Firm's Board

PALO ALTO, Calif. - The EC Co., provider of an Internet mechanism for electronic data interchange among trading partners, has named Silicon Valley consultant Tom Kippola to its board.Mr. Kippola is managing partner of the Chasm Group and co-author with that firm's founder, Geoffrey Moore, of "The Gorilla Game: An Investor's Guide to Picking Winners in High Technology."

EC Co. has been backed by Arthur Andersen; Intel Corp.; the venture capital arm of Thomson Corp., which is American Banker's parent company; and various other venture investors. Mr. Kippola said, "The timing could not be better for the EC Co. and its hosted Internet transaction exchange. The business-to-business e-commerce market is about to explode, and EC Co. is perfectly positioned to be a market leader."

Also on its board are chief executive officer Andrew T. Duncan, Mario Rosati of the law firm Wilson Sonsini Goodrich & Rosati, Steve Carnevale of Talcot Capital LLC, and Alan Clingman of Centennial International.

Card Processor Selects Globeset Wallet System

COLUMBUS, Ga. - The credit card processor Total System Services Inc. has chosen digital wallet technology from Globeset Inc. of Austin, Tex., for its SureWallet offering to credit card issuers.Total System said Globeset's BankTone Wallet is different from others in that Internet shoppers must "enter information such as name, shipping address, and account numbers only once." The SureWallet server would automatically fill in an on-line merchant order form with the required information.

"Consumers are rapidly adapting to the convenience of Internet shopping, and we are meeting their demands for secure and convenient electronic transactions," said Ron Spivey, director of electronic commerce at Total System.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.