From: "Joseph M. Reagle Jr." <reagle@rpcp.mit.edu>
Date: Tue, 10 Sep 1996 04:16:18 +0800
To: cypherpunks@toad.com
Subject: E-Cash Poses Worldwide Banking Threat - Report 09/06/96
Message-ID: <2.2.32.19960909160217.00a04d9c@206.33.128.129>
MIME-Version: 1.0
Content-Type: text/plain


		 
>PALO ALTO, CALIFORNIA, U.S.A., 1996 SEP 6 (NB) -- By Richard Bowers.  
>By the year 2000, consumers, businesses, governments, and 
>educational institutions worldwide will use electronic cash (e-cash) 
>for nine billion payment transactions. According to a new study by Killen 
>& Associates, this increase in e-cash will pose a great threat to some of 
>the biggest institutions in the world. 
>
>The report specifically highlights the risk to the retail and banking  
>industries. Speaking to Newsbytes, a spokesperson for Killen said that 
>the report, which will be issued later this month, gives little solace to 
>the problems facing traditional retail companies. The report does 
>however, say that the banks can regain the leadership position in 
>payments by moving quickly to leverage their payment transaction 
>infrastructure to fully support e-cash. 
>
>"By 2005, e-cash transactions will escalate to almost 30 billion,"  
>stated Michael Killen, president of the market research firm. "Banks 
>must act quickly to leverage their position in payment services. Non- 
>banks see this as a new opportunity to carve further market share 
>away from the banking industry. All will compete for new revenue 
>streams including Internet-based micropayments." 
>
>The report uses a very broad definition of e-cash including among  
>others; secured debit cards, phone cards, electronic checks, ATM 
>transactions, point of sale loans, and automated tolls. 
>
>Using this broad definition they estimate that in 1995 there were 536  
>billion non e-cash transactions worldwide compared to only 1 billion 
>e-cash transactions, or about .0019 percent. By the year 2005, of a 
>total estimated 1 trillion transactions, the report predicts 3 percent 
>or around 30 billion transactions will be e-cash. 
>
>"The impact of e-cash will be widespread on both banking and  
>commerce," Killen added. "Opportunities will open for financial and 
>other product and services players, including ATM vendors such as 
>NCR, Diebold, and IBM; credit card authorization firms, including First 
>Data, Total Systems, Equifax, and National Data; ATM/POS terminal 
>manufacturers and network suppliers, including bank-owned 
>networks, American Express, Deluxe, ACS, and VeriFone; and cash 
>handling/cash management services firms such as ADP, GEIS, National 
>Data, and Brinks. Software firms that understand the enormous 
>system integration opportunities of adapting legacy systems to on- 
>line, secured environments will also benefit from the need to support 
>e-cash transactions." 
>
>The report will include forecasts of the overall payments environment  
>and the impact of e-cash on cash, checks, credit cards, and other 
>electronic payment systems though the year 2005. It will also have a 
>section on the opportunities for new business, dislocations, and 
>threats to existing businesses, with emphasis on acquisition and 
>alliance opportunities. 
>
>"E-cash provides the necessary payment options to support new and  
>low-cost products and services, including micropublishing," Killen 
>continued. "Information services such as AC Nielsen, Dun & Bradstreet, 
>and Wall Street investment and advisory firms will fill their clients' 
>needs for customized news. This will lead to a new understanding of 
>personal and commercial buying patterns, wants, and needs. 
>Individual consumer purchase, transaction, and life-style profiles will 
>be developed. Advertisers can then use this information to target 
>market-customized advertising and marketing programs." 
>
>(19960906/Press Contact: Jules Street, Killen & Associates, 415-617-  
>6130) 
>  	   	
>
>
_______________________
Regards,            Nothing is so strong as gentleness, 
                    and nothing is so gentle as true strength. -Ralph Sockman
Joseph  Reagle      http://rpcp.mit.edu/~reagle/home.html
reagle@mit.edu      E0 D5 B2 05 B6 12 DA 65  BE 4D E3 C1 6A 66 25 4E