A low-cost, smart card reader built into a standard 3.5″ floppy diskette that can used with almost any PC was unveiled yesterday by InteliData. The MoneyClip, which retails for $59.95, integrates Fischer Internationals Smarty smart card reader with the security solution developed by V-ONE and InteliDatas home banking Internet product. The product was demonstrated this week by Home Financial Network Inc.
InteliData (Nasdaq: INTD) today introduced a revolutionary new product, MoneyClip(TM), that provides banks and consumers with state-of-the-art security for home banking and Internet payments while simultaneously placing smart cards in the hands of consumers. MoneyClip is a smart card reader built into a standard 3.5″ floppy diskette that can be used with almost any personal computer (PC).
The product was demonstrated today at a press conference in New York, where four cutting-edge electronic commerce companies brought their expertise to address real or perceived Internet security concerns.
InteliData believes smart card usage will evolve in three steps. The first step in jump-starting smart card usage is having consumers use their MoneyClip as a security “key” to access their bank, making balance inquiries, funds transfers and bill payments. Step two is using smart cards to purchase items over the Internet by using money downloaded from consumers’ checking accounts. The third step is using smart cards as cash in-person at merchant point-of- sale locations.
MoneyClip integrates Fischer International’s Smarty(TM) smart card reader with the security solution developed by V-ONE and InteliData’s home banking Internet product to offer consumers the best remote banking security in the industry. A product demonstration was conducted by Home Financial Network, Inc. which provides PC software that enables bank customers to conduct home banking and other electronic financial services via the Internet.
At a retail price of $59.95, MoneyClip is roughly half the cost of other smart card readers under development or on the market, does not need to connect to a computer port, and requires no desktop space, making it ideal for use at home or with a laptop on the road. But its primary attraction, for consumers and banks alike, is its physical security. It is one more component in InteliData’s remote banking end-to-end solution product line.
“Before Internet banking can become as accepted as ATMs, consumers must be assured of vault-tight security,” said Joseph E. Smith, executive vice president of InteliData’s Electronic Commerce Division. “In addition to the stringent security software our products already employ, MoneyClip provides the physical and psychological assurance consumers want. It’s like holding a key to a safe deposit box,” he added.
“There is still a great deal of consumer concern when it comes to making financial transactions over the Internet,” said James Chen, president and CEO of V-ONE. “We believe MoneyClip and InteliData’s overall security solution will relieve much of that concern and can increase the number of people who elect to do remote banking and make payments over the Internet,” said Mr. Chen.
In addition to providing unmatched security, MoneyClip makes it possible for banks to put smart cards into the hands of customers doing electronic banking today. These consumers are the “early adopters” of new technology and are a natural group for banks to employ in getting smart cards distributed and used in the marketplace.
Perhaps the biggest obstacle for smart cards moving into the mainstream has been the availability of low-cost smart card readers. It’s similar to the video market in the seventies. VCRs had to be prevalent in consumer homes in order to create the demand for video stores and the availability of most movies on videotape.
“There are over 200 million PCs with the capability to use a smart card reader like MoneyClip,” said Michael Battaglia, president and CEO of Fischer International. “MoneyClip paves the way for consumers to use their PC and a smart card to pay bills and safely shop on the Internet from home,” he added.
Cynthia Weaver, an analyst at the Tower Group, added, “Americans would like nothing better than to domesticate the Internet. Smart cards will catalyze the process — turning what is now organic and uncontrollable into a personalized, secure and useful tool.”
Daniel M. Schley, Chairman & CEO of Home Financial Network said, “MoneyClip provides consumers with a convenient, secure environment for performing a wide range of PC and Internet banking transactions from the comfort of home. Most significantly, the MoneyClip, when used in conjunction with a smart card, solves an important piece of the home banking puzzle – how to quickly and easily retrieve cash electronically through one’s personal computer. In our view, this outstanding technology will pave the way to mass market acceptance of smart cards for electronic purchases and Internet banking and further our company’s objective of placing ‘An ATM in Every Home,'” added Mr. Schley.
Survey results in February from IntelliQuest Information Group show a U.S. Internet/online population of approximately 47 million adults. Other sources estimate that by the year 2000, over half of US households will have PCs and online access. Payments over the Internet for electronic commerce are expected to hit between $7 and $10 billion.
According to newly released report by Jupiter Communications, smart cards are projected to soar and account for 26% of online transactions. The number of smart cards that will be in use ranges widely. A conservative estimate is 100 million cards in use in the US by the year 2000. Electronic commerce payments and smart cards represent a huge market opportunity for banks. Already popular in Europe and Japan, smart cards are just beginning to take off in the United States.
InteliData develops and markets products and services for the financial services and telecommunications industries. The Electronic Commerce Division’s products include Financial Power Tools(TM), Internet-based user software for home banking systems; Interpose(TM) Financial Engines, middleware software for driving home banking systems and warehousing payments; Unigate(TM) Gateway Systems, connectivity/protocol products; R-Bank(TM) Automated Financial Systems, VRU systems and services; plus bank-branded customer service. For more information visit the InteliData web site at http://www.intelidata.com.
About Fischer International Systems
Fischer International Systems Corporation (FISC) develops, designs, markets, licenses and supports a family of enterprise-wide office automation and computer security hardware and software products. FISC is the developer of Smarty(TM), which transforms the floppy drive of a personal computer into a smart card reader.
Smarty contains a transducer and electronic circuitry which can emulate the magnetic fields produced by a rotating floppy disk and which can pick up the data “written” to a floppy disk drive. Smarty operates in 3.5 inch floppy disk drive without modification to the drives or computers. Smarty works directly from the floppy disk drive of the personal computer, thus eliminating the need for attachments. The Smarty technology provides the foundation of MoneyClip(TM). FISC sells and supports its products to a diverse international customer base. For more information visit the Fischer web site at http://www.fisc.com.
V-ONE is a leading provider of network security technologies and security middleware solutions. The highest levels of the defense and intelligence agencies of the United States government as well as Fortune 100 corporations use V-ONE technology to defend their networks. V-ONE’s product line includes: SmartWall(TM), a dual-homed, application-level gateway firewall with mutual authentication and encryption; SmartGATE(TM), a patent-pending, application- to-application security solutions with integrated encryption and token-based authentication such as smart card technology (software version available); and Wallet Technology, an electronic consumer payment system with merchant and acquirer server software. For more information visit the V-ONE web site at http://www.v-one.com.
About Home Financial Network
Home Financial Network, Inc. is a leading developer of PC and Internet software for home banking. It enables financial institutions to deliver private-branded electronic financial services to their customers at home. The company’s Home ATM(TM) software takes the universal experience of an ATM and transfers it to the consumer’s personal computer. Program screens look and work just like the typical ATM that consumers already know how to use. They are fully customized to reflect each financial institution’s proprietary brand and brand image. For more information visit the HFN Web site at http://www.homeatm.com.