Verifone Inc. announced it will make a $4 million equity investment in Cybercash Inc. and gain a spot on the fledgling electronic payments company's board of directors.
The companies will share technology and work toward making transactions over the Intern more secure, Verifone said.
The agreement follows last week's announcement that Verifone, best known for its leadership as a point of sale equipment provider, acquired Enterprise Integration Technologies, a specialist in Intern-related software. Verifone, based in Redwood City, Calif., said it will make Enterprise a part of its Internet commerce division.
Verifone said Cybercash's software for secure Internet payments may eventually be part of Verifone's forthcoming electronic commerce products.
Verifone's worldwide distribution channels may also become available to Reston, Va.-based Cybercash.
The companies have common roots: William Melton, the entrepreneur who founded Verifone in the 1980s, when the market for high-speed credit card authorization terminals was just developing, was the co-founder with Daniel C. Lynch of Cybercash last year.
"Verifone and Cybercash share a vision of providing the secure payment solutions needed to make Internet commerce a reality," said Mr. Melton. "Our Internet marketing strategies and payment offerings are also highly synergistic."