New Company to Provide Electronic Payments to Government
- By William Welsh
- Mar 27, 2001
Internet payment solutions provider eOne Global LP of Napa, Calif., announced March 27 it has formed a new subsidiary that will provide electronic payments services to all levels of government.
The new company, govOne Solutions of Englewood, Colo., will absorb all operations of eOne Global's subsidiary CashTax and the transaction processing business of GovWorks of New York.
GovWorks sold its transaction processing business to eOne Global and American Management Systems Inc. of Fairfax, Va., when GovWorks filed for bankruptcy in January.
Newly formed govOne Solutions plans to develop technologies to capture a significant share of the emerging online government payments marketplace, which is expected to reach $1 billion by 2005, according to the Boston Consulting Group.
The wholly owned subsidiary of eOne Global also plans to make acquisitions that will expand its capabilities into adjacent services, such as tax filing and compliance, said Garen Staglin, president and chief executive officer of eOne Global.
The company will leverage its existing relationships with leading systems integrators and other partners to quickly fuel its expansion, he said.
A customized service plan developed by govOne Solutions will allow government and financial institutions to offer a variety of payment methods, including Internet, interactive voice response, walk-in and machine-to-machine.
Through its relationship with Bank of America of Charlotte, N.C., govOne Solutions will continue to process more than $800 billion in tax payments each year for the Internal Revenue Service that were previously handled by CashTax.
In addition, govOne Solutions has contracts with 23 states to provide electronic fund transfer services for business taxes and employer unemployment contributions.
William Welsh is a freelance writer covering IT and defense technology.