"eCONNECT's (OTCBB: ECNC) NEW PROPRIETARY TECHNOLOGY ABOUT TO REVOLUTIONIZE THE E-COMMERCE WORLD"
by David Anderson - StockReviewer.net
Wednesday, Jan. 31, 2001
Rarely does our team comes across a stock that causes as much excitement in our offices as has eConnect's (OTCBB: ECNC) new proprietary e-commerce technology that is poised to revolutionize the way the internet conducts secure payment transactions over the net. ECNC's proprietary and patented "e-CashPad" now available on the market addresses the issue of internet security like no other device or software by allowing the users of this device to swipe their own credit cards, smart cards or ATM cards from their desktops anytime they want to make purchases on the internet. The strength of this new technology that has been termed "Bank Eyes Only(TM)" is unique because it only transmits your sensitive financial information from your desktop computer over secure lines directly to your bank for approval. The merchant never sees your sensitive information at all! Once your bank approves the transaction the merchant is given an approval code so the merchant never sees your credit card information at all, thus virtually eliminating the possibility of any fraud.
Currently if you wish to purchase anything online you are required to enter your credit card number, expiry date, your address and your name on the merchant's online order form. Now even if this information is sent via a secure link (SSL-Secure Socket Layer) it only protects your information while it is transit to the merchant's server. Your credit card information, once on the merchant's server is then descrambled and processed by the merchant who now has your credit card number, expiry date, your address and your name! Your credit card information on the merchant's server can become the target of hackers leaving you wide open and vulnerable to fraud which is plagueing the e-commerce world today. With eConnect's proprietary "eCashPad" your credit card information is NOT sent to the merchant at all but directly to your bank for approval so only your bank sees your credit card information and not some unknown merchant clear across the country or around the world. The merchant only receives an approval code and never has access to your credit card information.
And did we mention that you can use this eConnect's "e-CashPad" with your ATM card?! eConnect's "e-Cashpad" is the only system that allows users to make purchases online with their ATM cards by swiping the debit card on the eCashPad and entering their PIN number! This opens a plethora of people whose credit may be compromised and who do not have credit cards!
Company Profile
E-CONNECT, Inc. (OTCBB: ECNC)
TICKER SYMBOL: ECNC (Nasdaq OTCBB)
SHARES OUTSTANDING : 215,350,000
CURRENT SHARE PRICE: $0.30 (as of Tuesday, Jan. 30 , 2001)
CURRENT MARKET CAP : $64,600,000
EPS: -$0.58
52 WEEK RANGE : $0.20 - $20.00
eConnect, of San Pedro, Calif., is currently deploying Bank Eyes Only(TM) technology in the US, the Caribbean, and Europe through host processing centers owned or under development by the Company, or its affiliates, in Milwaukee, Santo Domingo, Dominican Republic, and in the area of Atherton, Ireland, respectively. eConnect further plans to expand the system internationally, through company owned-and-operated host processing centers in Hong Kong and Australia.
The eCashPad, the Company's first Bank Eyes Only(TM) product, was formally introduced at last month's COMDEX show. In addition to retail sale, it is also being distributed promotionally via the retail, gaming, financial, brokerage and interactive entertainment industries.
Make Online Purchases with your ATM card!
One of eConnect's most exciting concepts is the use of a traditional ATM card to make purchases over the Internet. The use of an ATM card with PIN ID offers a cost advantage to the retailer, and security advantages to both the consumer and retailer. eConnect's patented technology enabling encrypted remote financial transactions is the solution for providing secure ATM-card transactions via the Internet.
For users of major credit cards, eConnect's System allows people to make purchases and payments on-line. By simply swiping a major credit card through any of the company's eConnect Systems hardware products, their encryption processing systems provide the ultimate in current anti-piracy technology.
Make Online Purchases with your Cell Phone
A new concept that is being developed by eConnect is the "ePocketPay" that will look and work like a cell phone. But, because a card reader with processing capabilities is built into it, it represents a whole new class of device. While walking down the street, riding in a cab, or sitting in your office, the user can order flowers for their spouse, pay a bill, book airplane tickets....and simply swipe your card on the side of the cell phone to pay! The transaction is done and the merchandise or service provider can proceed without risk of non-payment; a risk that is always present in a traditional phone order.
What's eConnect?
A new technology company based in LA.
Owns patents and technologies for a new Internet payment method.
Using a eCashPad anyone from the comfort of their home will be able to securely swipe their debit, credit or smart card to pay for things.
eConnect have also invented wireless ePocketPay, similar to an eCashPad but is built into your mobile phone
International role out scheduled for 2001.
eConnect are also involved with many other areas of Financial processing technology in additional to the eCashPad and internet transactions.
What's an eCashPad?
See picture at right
Inexpensive device ($59.95) the size of a mouse that plugs into your PC and allows you to swipe your own credit card, smart card, and ATM card with PIN
Allows you to pay for goods or services over the internet without divulging your sensitive credit card information
When you swipe your card only the bank sees your details hence the term "Bank Eyes Only(TM)".
What's the advantage for the consumer?
Bullet proof security, makes internet transactions similar to a shop transaction
Extra functionality, using their ATM card with PIN number cash payments can be made real time, e.g.. Credit a brokerage account, buy a lottery ticket, pay a utility bill
As the merchant never sees the transaction details, no chance of the information being hacked from the merchant's server
What's the advantage for the merchant?
Forms an additional way to process payments, it does not replace existing ways used by non-eCashPad customers
Allows use of ATM card for payment, this is very important because many people do not qualify for credit cards
Cheaper Credit Card transaction rates, as it's a 'Card Present Transaction'.
Virtually eliminates online credit card fraud and virtually no charge back costs for the merchant.
No risk of hackers getting hold of customers credit card details from merchant.
Recent Developments
The commercial concept was patented 3 years ago, funding was gained through share offering and venture capital, the product was developed by eConnect, RGTec, and Efunds. eConnect is in the most exciting stage right now and a full roll out of the eCashPad has already started.
eConnect has launched their system at two of the biggest computer shows COMDEX and CES to much praise. They have just started shipping eCashPads to consumers and are signing up Merchants who are setting up their web sites right now. The demand for this product has built over the last 24 months with the realization from major establishments that this patented technology is the way of to conduct e-commerce.
eConnect's eCashPad, now on sale for $59.95, is a common-sense means of secure online payment, consisting of a "plug-and-pay'' PC peripheral approximately the size of a PC mouse. By swiping a smart card, ATM card with PIN, or credit card through the eCashPad, the consumer routes financial information directly to the financial institution that settles the online purchase and pays the merchant. The consumer's financial information is neither seen nor stored by the merchant, who is charged a flat fee per transaction.
eConnect National Radio Ad Campaign Debuts
On Jan 23, 2001, eConnect announced the debut of its initial national radio advertising campaign, a series of 30-second spots airing in 250 markets in the US and Canada through the end of April. The advertisements, which began airing January 19, follow up the Company's introduction of its first product, the eCashPad, at its recent COMDEX and International Consumer Electronics Show exhibits. eConnect's advertisements sponsor "WebTipMinute'', a syndicated 60-second educational segment that in turn airs during such well-known radio programs as "America, Good Morning.''
The Company also plans to debut television and special events advertising later this year.
eConnect Signs Strategic Partnership To Market the eCashPad With Interactive Television Configurations
On Jan. 8, 2001 eConnect announced that it has signed a definitive agreement for a strategic partnership with leading Silicon Valley-based interactive television technology provider, TransCast International, Inc. potentially paving the way to distribute eConnect's eCashPad technology alongside many of the millions of Internet-ready televisions and set-top boxes expected to fuel the television commerce ("t-commerce'') revolution.
TransCast is the only company presently working with television OEMs to integrate its t-commerce portal into analog televisions for a truly interactive television experience, including web surfing, t-commerce, chat, and e-mail.
In the near future, such OEMs are also expected to externalize serial ports to make them compatible with the eCashPad. TransCast and eConnect will work together to integrate eConnect's eCashPad capabilities with the TransCast TV portal service.
A concept that once seemed futuristic, interactive television has already become a reality, with Jupiter Communications projecting that interactive television will be in 30 million U.S. homes by 2004, and DB Alex Brown forecasting that t-commerce (e-commerce over TV or using video) will outstrip traditional e-commerce before 2005.
With fewer than 50% of households in the U.S. online via the PC, but television in 99% of U.S. households, TransCast's application brings connectivity to those on the other side of the digital divide, through a universally familiar medium -- the television -- that already has in place the mass-market distribution channels to quickly drive sales. TransCast believes that OEMs will eventually have to make all the televisions they sell interactive in order to remain competitive, and is working with several leading OEMs in Asia, India, and the U.S.
CONCLUSION:
E-commerce is a multi billion dollar industry. But the current technology out there is plagued with credit card fraud. eConnect's proprietary and patented technology heralds in a new era of truly secure payment methods both for the desktop user (eCashPad) and for the mobile user (ePocketPay). The current systems in place today simply do not address the issue of fraud head on as does eConnect's "Bank Eyes Only(TM)" technology. By requiring the online buyer to physically swipe the credit card or smart card on the eCashPad it eliminates the fraud of stolen credit card numbers. Without swiping the card you cannot make a purchase! Once a card is swiped the information is sent directly to your bank for approval. Merchants never see or have access to your credit card information.
The addition of the use of an ATM card, unique to eConnect, to purchase goods and services over the internet will bring in millions of new shoppers who do not have credit cards.
The exciting part is that this technology has just NOW coming to the market after many years in development with roll-out having already commenced in January 2001. The response both from the COMDEX show last month and the Consumers Electronic Show has been overwhelmingly extremely positive.
We feel that potential partners for eConnect may be cell phone giants like Nokia with their dominance in the international cell phone market as it pertains to developing the handsets for eConnect's ePocketPay or any large corporation who percieves the value of this proprietary and much needed technology. Partnerships like this would prove to be a win-win situation for both companies, especially eConnect. One thing is for sure, and that is that the patented technology developed and owned by eConnect will certainly revolutionize the way the e-commerce world functions. And with e-commerce a multi-billion dollar industry, eConnect is tapping into a huge resource of enormous potential. The sky is the limit for eConnect's technology and its investors.
We rate eConnect as a very STRONG BUY and feel that the company shares can climb to $10.00+ share in the next 12-18 months. Last year eConnect shares had traded as high as $20.00 on the news of the development of the eCashPad. It is now here!
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