September 21, 1995
NYNEX CONTACT: Media Relations,
NYNEX and Chase Unveil
Prototype Interactive Payment System
New York, NY -- NYNEX and Chase today unveiled a prototype
interactive payment system designed to make shopping through interactive
TV and on-line computer networks easier, safer and more appealing.
The companies announced the joint development of the back office
systems necessary to make electronic commerce a reality for millions
of American consumers.
Beginning in 1996, the system will be available in connection
with NYNEX's deployment of wireless and wireline networks in the
The system, which uses easy-to-understand, on-screen prompts,
was developed by NYNEX and Chase based on extensive focus group
research and customer interviews conducted over the past year.
Based on this input, NYNEX and Chase have developed a prototype
system to accommodate nearly every type of transaction in the
interactive world, including the purchase of movies on demand,
consumer products, and specialty goods through on-line retailers.
The system features an engaging, high-resolution electronic interface
that will offer the future "electronic" shopper the
flexibility, security and control to manage interactive transactions.
Access to the customer's personalized "vault" is gained
through the use of a personal identification number (PIN). Once
the "vault" is open, the system offers consumers several
different payment alternatives for their interactive purchases,
including credit card, debit card, ATM card, checking account,
and prepaid tokens or coupons. In addition, NYNEX and Chase are
developing a rewards program designed to "jump start"
sales in the interactive arena. The program includes a NYNEX-branded
entertainment card that awards "points" for each electronic
or store-based purchase. The points are redeemable for free movies,
games or for other interactive services.
"The interactive payment system developed by NYNEX and Chase
will be an integral part of the digital shopping experience,"
said Walt Rickard, Chairman, NYNEX Entertainment and Information
Services Group. "Making electronic commerce easy to use,
flexible, and secure will be key to marketplace acceptance of
this new technology," said Rickard.
"Customers want a simple system that is easy to navigate
and that can be tailored to the needs of their individual household,"
said Arnold Lieberman, Chase Vice President and Senior Business
Development Officer. "For example, our system will allow
parents to restrict the purchasing behavior and limit the spending
of individual family members. It also provides for special 'visitor'
accounts and assures the system integrity and control that is
vital to the success of this new medium."
The NYNEX/Chase interactive payment system offers a variety of
PIN attempts, time-of-day and maximum use lockouts that give customers
the control and confidence to conduct their own transactions in
the world of "virtual commerce."
"In the not-too-distant future, millions of consumers will
be shopping in 'virtual malls,'" said Mark S. Kaufmann, Chase
Senior Vice President of Corporate Development. "Existing
payment systems using 1-800-Customer Service lines simply will
not have the capacity to handle the levels of demand of this new
interactive environment. Our new system combines Chase's experience
in electronic payment systems and as the world's largest Automated
Clearing House (ACH) processor with NYNEX's expertise in building
and managing interactive networks," he said.
The NYNEX/Chase interactive payment system is the latest in a
series of joint projects between the two companies. In April,
the companies announced the creation of a co-branded credit and
calling card that offers points redeemable for discounts on NYNEX
Phonesmart(R) Services. The companies also offer a co-branded
card as part of the NYNEX Mobile Perks program for high-usage
The Chase Manhattan Corporation, with approximately $120 billion
in assets, is a leading global financial services company with
a strong domestic base. Through its global network, Chase serves
corporations, financial institutions, governments and private
banking clients as they raise capital, invest, move, and manage
their financial assets. Chase serves individuals in the United
States through its retail banking effort. Chase moves money and
administers more securities for more customers than any other
bank in the world, handling more than $1 trillion a day in cash
management, trade finance, securities and payment transactions.
NYNEX is a global communications and media company that provides
a full range of services in the northeastern United States and
high-growth markets around the world, including the United Kingdom,
Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland,
Slovakia and the Czech Republic.
The Corporation is a leader in the telecommunications, wireless communications,
cable television, directory publishing
and entertainment and information services.
FAX copies of recent NYNEX news releases are available free of charge, 24
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