BankServ, Inc. today announced a strategic agreement with Ariba to integrate BankServ’s electronic check and global funds transfer technologies and processing services into the Ariba B2B Commerce Platform.
Trading participants using the Ariba Commerce Services Network, will be able to take advantage of BankServ’s services. Ariba CSN is Ariba’s value-added network infrastructure for delivering commerce services to companies in the B2B community.
* Financial institutions offering global settlement services will be able to take advantage of BankServ’s “bank neutral” pre-integrated services solution, allowing them to substantially decrease their time to market on Ariba CSN.
* Buyers and sellers on Ariba CSN will be able to access a variety of payment options, including BankServ’s automated clearing house (ACH) transfers and domestic and cross-border wire transfers.
* Through BankServ’s advanced financial services solutions, Internet market makers will have the ability to earn and collect transaction revenue from activity on their marketplaces. This offers a significant incentive for market makers to take advantage of these progressive global payment options.
“Online exchanges need the kind of low-cost, reliable, global funds transfer solutions for B2B commerce that BankServ’s ACH and wire transfer products provide,” said Eric Bochner, vice president, Ariba Commerce Services. “Until now, the primary online payments solutions available have been various forms of purchasing cards and credit cards, or offline, paper-based settlements. BankServ enables an automated solution that can be seamlessly integrated with a wide variety of B2B eCommerce processes.”
Cory Gaines, vice president of strategic alliances for BankServ, noted, “Since funds transfer services processed through the ACH and the banking system can be eighty percent less expensive to suppliers than the cost of processing credit cards, all of Ariba CSN customers will enjoy substantial opportunity in this market.”
According to Dave Kvederis, president and CEO of BankServ, hundreds of U.S. merchants already use BankServ’s electronic check services to create electronic funds transfers that are processed through the nation’s ACH system. More than a dozen Internet businesses are already integrating or testing its Internet services on their websites, including PointSpeed.com, StereoLink.com and Egarden.com. “BankServ has built a significant market advantage in the brick and mortar merchant world through its experience and the development of its proprietary technologies,” he said. “Now we are bringing that experience and technology to the Internet.”
The ACH system is commonly used for direct deposit of payroll and government benefit payments and for payment of consumer bills. In 1999, more than 6.2 billion ACH payments were made in the U.S. worth more than $19 trillion, according to the National Automated Clearing House Association (NACHA).
BankServ also processes more than $1 billion a day in international and domestic wire transfers on behalf of 110 U.S. banks, thrifts and credit unions. The company’s Global Funds Exchange (GFX) system automates operational and risk control compliance, in accordance with both the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) and the Bank Secrecy Act; and numerous customer notification requirements.
Founded in 1996 by CEO Dave Kvederis, BankServ is one of the country’s leading providers of payment solutions for online businesses, retailers and financial services companies. Its electronic check conversion, ACH funds transfer and global wire transfer systems serve hundreds of U.S. businesses and financial institutions in online, point-of-sale and back-office applications. Headquartered in San Francisco, BankServ also maintains offices in Atlanta, Boise, Chicago, Dallas, Lafayette, La, Las Vegas and New York. More information about BankServ can be found online at [http://www.bankserv.com].