Next Up: Moving Money Electronically


Next Up: Moving Money Electronically

The success of the next step in electronic commerce will depend on how well computer companies work with financial services firms - banks, money transmitters, companies such as Cyber-Cash in Reston, Va. - to do electronic funds transfer, otherwise known as moving money electronically.

Some of the newest software, including IBM's Electronic Purchasing Service, allows electronic funds transfer and theoretically reduces paperwork even further. IBM can charge a fee for each transaction, known as "micropayments," which can add up to big bucks.

This is the beginning of what the CyberCash founders and a few others have been predicting: Someday we will have an electronic "wallet" in our computers that can send and receive real money. This will eliminate paper invoices and make much less work for accounts payable and receivable departments.

So high-tech businesses are forming alliances with financial services companies to determine this crucial part of the process. The more companies on the same page - meaning using the same technology standard - the better.

The banking industry, for its part, needs to get better at technology. So far the most significant step was the formation in September of Integrion Financial Network, an interactive banking and electronic commerce company made up of IBM and 15 big banks, including NationsBank and Bank of America.

-Shannon Henry

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.