NYNEX and Chase Unveil Prototype Interactive Payment System

September 21, 1995

NYNEX CONTACT: Media Relations,
(212) 395-0500

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

cellular customers.

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.

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