Magazine article American Banker

Chase, Nynex Unveil Prototype of Payment System for Interactive TV

Magazine article American Banker

Chase, Nynex Unveil Prototype of Payment System for Interactive TV

Article excerpt

Chase Manhattan Corp. and Nynex Corp. have taken the wraps off the prototype of an electronic payment system designed to let consumers bank and shop by interactive television and personal computer.

The system the two companies are developing is expected to be in full operation sometime next year.

Nynex, a corporate customer of Chase's, will serve as the content provider, delivering such services as movies-on-demand and shopping through on-line retailers. Chase will act as the payment processor.

Chase also plans to offer its own brand of TV and PC banking through the Nynex network.

The bank's commitment to interactive television comes at a time of uncertainty for the technology, with Shawmut National Corp. and Meridian Bancorp recently canceling separate high-profile projects.

Shawmut cited a lack of consumer interest, due to high costs, as the reason for pulling out of its project with AT&T Corp. Meridian had been working with Eon Corp., formerly TV Answer Inc.

Chase officials said they understand that interactive television may not generate profits in the near term. The bank appears willing to make this sacrifice to have a service ready in case consumer demand heats up.

"We're not in this for the quick buck; we're in it for the long haul," said Arnold Lieberman, vice president and senior business development officer at the $120 billion-asset banking company.

"We're not worried about what's happening in the market. Consumers will eventually change their behavior, but it will take time. When customers are ready, Chase wants to be in a leading position."

In addition to interactive TV, Chase is investing in other home banking channels. It has teamed up with both Microsoft Corp. and Intuit Inc. for PC banking and also offers banking by telephone.

In their development of the new system, Chase and Nynex are focusing on such design elements as ease of use, flexibility, and controls to make the service desirable to consumers. …

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