The Hong Kong and Shanghai Banking Corporation Ltd. has selected iPIN, the e-Payments technology leader, to power its latest online payments offering. iPIN’s direct debit technology enables HSBC customers to make secure purchases at merchant web sites using their HSBC bank accounts. This innovative online payment service, iPAY@hsbc, is an extension of the online@hsbc banking service that currently serves more than 200,000 registered users in Hong Kong.
iPIN’s solution enables secure payment and transaction settlement over the Internet and provides a link between HSBC’s existing application system and its customers, using Internet browsers and online@hsbc management software. Online@hsbc users can shop at merchants participating in the venture by selecting the iPAY@hsbc icon on the shopping site to activate a separate banking related pop-up window. Customers can then settle payments for their purchases by simply entering their existing online@hsbc login name and password, and then selecting their preferred bank account from which to debit. With iPIN’s secure technology, customers’ bank account numbers and information are not passed between HSBC and the merchant, thereby protecting the customer from unauthorized access. A demonstration is available at www.dicksoncyber.com and can be viewed by clicking on the iPAY@hsbc logo.
HSBC’s system supports a single pass transaction flow that directly debits a customer’s account and provides merchant authorization in real time. Therefore, when a customer selects an account and confirms the payment, the amount is immediately debited from the customer’s HSBC account. This approach mitigates online merchants’ collection risk because the availability of funds is checked online. Additional iPIN merchant tools included in the application are easy-to-use online exceptions processing functions and a series of reporting capabilities for sales and reconciliation tracking.
Richard Kimber, head of Personal e-Business, Asia-Pacific, HSBC said, “We selected iPIN based on their flexible and innovative technology, scaleable e-Payment platform that will enable future expansion and their ability to meet our time-to-market needs.” He added, “Our online customers can now choose an even wider range of e-Payment solutions from HSBC when purchasing goods or services over the Internet.”
According to iPIN CEO Bradley Rode, “HSBC’s selection of iPIN solidifies our position as the global leader in e-Payment solutions. In Hong Kong, with over 800 million Hong Kong dollars(1) spent on B to C e-Commerce during the year 2000, the territory is ready for a payment solution that can support the rapidly growing online commerce market. iPIN’s flexible architecture enables HSBC to quickly integrate the direct debit technology and to customize the entire payment experience for their customers, giving the Group a significant advantage in offering a comprehensive payments solution. We are pleased that a global financial services leader, such as HSBC, shares our vision and commitment to superior e-Payment technologies.”
“The initiative between iPIN and HSBC establishes a frontrunner position for both parties in defining a global payments network. What they are creating is an e-Payment model for banking, as well as an evolutionary opportunity for merchants and financial institutions worldwide. Expanding the types of source accounts which can be used for online purchases addresses consumer demand for convenience, security, and multiple payment options, leading to increased customer satisfaction with the overall buying experience and driving bank and merchant loyalty,” stated Ian Rubin, director of Online Financial Services research at IDC.
(1) AC Nielsen, eFinance Report, 2000
iPIN (www.ipin.com) is the leading provider of global e-payment technologies to financial institutions, telecommunication providers, and merchants. iPIN enables its partners to offer modular payment products to support B2C, B2B and person-to-person applications in both the wireless and Web environments. iPIN enables users to easily and securely pay for Web and wireless purchases using existing financial relationships, such as bank accounts, credit cards, debit cards, ISP and wireless bills, pre-paid accounts, and cash. Customers include British Telecom, France Telecom, Club Internet, and Internet Gold among others. For further information, contact in the U.S. Rhonda Motil, +1 650-272-3770, (firstname.lastname@example.org); in Asia, Raymond Chu, + 852-2887-7827, (email@example.com); in Europe, Marc Kawam +33 1 58 56 72 03, firstname.lastname@example.org, or visit the website www.ipin.com.
The Hong Kong and Shanghai Banking Corporation Limited is the founding and principal member of the HSBC Group (www.hsbc.com) which, with over 6,500 offices in 79 countries and territories and assets of over US$673 billion at 31 December 2000, is one of the world’s largest banking and financial services organisations. HSBC is a leading provider of financial services online with about 2 million registered personal bank customers worldwide. In Hong Kong, HSBC is the largest provider of online banking with more than 200,000 customers registered since the launch of online@hsbc in August 2000. Together HSBC in Hong Kong and its subsidiary Hang Seng Bank have about 80 per cent market share of registered Internet bank users in the territory (AC Nielsen). With less than 12 months offering Internet banking, online@hsbc is recognised as one of Asia’s best online offerings having received numerous industry awards and accolades, including `Best B2B Internet site’ and `Best Entry by a Brick-and-Mortar Company,’ by Internet World Asia Industry Awards, `Best Websites’ in 2000 by Asiaweek, `Best of eCommerce’ from IDN and `Best Banking/Finance/Insurance Website’ by JP Morgan/FIA Best Asia Corporate Website Award.Details