NYNEX and Chase unveil prototype interactive payment system
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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 northeast.
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.