AmEx builds Blue bridge over Web payment waters

1999-09-10

AmEx are the latest in line to attempt tackling a fundamental weakness in the world of eCommerce – that of making payments. Will they succeed?

Currently, Internet credit card transactions are seen by the consumer as being insecure. This perception maybe changing (albeit slowly), and possibly be more than a little misplaced relative to, say, giving card details over the phone. However it is still one of the major reasons cited for slowing the uptake of eCommerce. The other, equally important reason is that credit card payments are expensive, effectively setting a minimum purchase value of about £5. A raft of initiatives have been attempted, such as microcharging through eCash. To date, however, none has won the hearts and minds of the Web population.

AmEx have partnered with a company called eCharge to launch a hybrid service known as Blue, providing both smartcard and credit card facilities and Internet transaction mechanisms. With regard to the latter, the service is said to be more secure than traditional credit card mechanisms; also, it is notably cheaper to run, per transaction, than its credit card equivalent with merchants actually to be given a discount for using it on the Web.

What may set this trial apart is that it is not a trial. This service is a launch, available to consumers across the US. It is far more likely to have mass market appeal as it is aimed at the mass market; also, it is instantly attractive to Web retailers through its reduced cost. Unfortunately, we could not find any sites actually using the new standard on the Internet. If you build it, they will come, maybe.

(First published 10 September 1999)