FINEXTRA – 23 March 2004 | The Canadian firm Othentik Technologies announced today that its groundbreaking online purchase and bill payment system is now available in the United States. Interested banks and other financial institutions will get the chance to see a live demonstration of the system at the NACHA Payments 2004 conference (March 21-24, 2004). Othentik provides a software- and host-based processing system that enables online shoppers to request a designated payment at the seller’s or biller’s website, have that request authenticated in real time by the financial institution holding the payment account, then have the bank pay the seller or biller privately and securely after the transaction has been authorized. This unique sequence of operations puts authentication back in the hands of the trusted financial institution, and vastly reduces fraud, chargebacks and abandoned transactions-a definite plus for the seller or biller.
« While still developing and testing the product in Canada, Othentik thought it was important to begin introducing its solution to the US, the biggest e-commerce market in the world, » says founding president and CEO Patrick Rioux. « 11 million people already do their banking on the Internet in Canada, and at least four times as many households are online in the US. This solution will make it possible for all these potential users to place control over their purchases and payments back where it belongs-in the trustworthy hands of their banks. »
The Othentik solution more fully satisfies the growing needs of all parties in an online transaction. Consumers do not want to be deterred by third parties who clumsily attempt to avoid fraud because they don’t administer the payment account relationship. The merchant doesn’t want to experience problems associated with the consumer not being at the checkout counter. Financial institutions don’t want to third parties to gain control over authentication, payment terms and pricing, or the relationship with the consumer. As for third parties, they cannot provide non-repudiated transactions or full authorization. With the Othentik system, consumers are verified by their financial institutions; merchants receive reliable, guaranteed payment offline; and financial institutions regain control of online transactions, while securing a key role in a booming new market.
« This is a major innovation in online payment, » says Steve Mott, an industry expert from the consulting firm BetterBuyDesign. « It gives banks their best shot to date at getting back into the Internet marketplace. And it is altogether fitting that it be introduced here at NACHA Payments 2004; a year and a half ago, NACHA tried to launch a very similar innovation, only to have some of its member banks balk, thinking people weren’t ready for this kind of solution. Well, the market’s ready now! »
Source : FINEXTRA – 23 Mars 2004 – https://www.finextra.com/pressarticle/531/othentik-technologies-releases-online-payment-system-in-us