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E-Cash Rollout Replaces Amex

Written By: Laura Taylor
Published On: June 27 2000

E-Cash Rollout Replaces Amex
L. Taylor - June 27, 2000

Event Summary

When Tom Fisher, General Manager of CCBill got his letter from Amex last week, he was concerned about his 4,000 customers that he would no longer be able to process transactions for. We're really disappointed that American Express decided to take this action," he said. "We're very sorry for the inconvenience it's going to cause our customers."

Market Impact

The adult industry is a one billion dollar industry. As consumers continue to require adult products, adult sites will be the first to lead online transaction development that doesn't make use of credit card payment systems. It is obstacles like this that create opportunities for smart entrepreneurs.

Consumers will find ways to purchase increments of pure digital cash through third-parties, and instead of accepting credit card payments, adult sites will start accepting digital cash. This is a win for both the sites and consumers. Adult and other sites will be able to process transactions faster and cheaper, and consumers will receive their products faster and easier.

True digital cash will be dependent upon digital cash providers who are able to marry economics and cryptography. As consumers figure out how to obtain digital cash, these sites will lead the market in figuring out how best to accept digital cash transactions. Where there is a market, there is a clever entrepreneur ready to pounce on the opportunity.

User Recommendations

Digital cash providers will have to make sure their digital cash meets the following requirements:

  • Secure

  • Anonymous

  • Portable (physical independence)

  • Infinite duration (until destroyed)

  • Two-way (unrestricted)

  • Off-line capable

  • Divisible (fungible)

  • Wide acceptability (trust)

  • User-friendly (simple)

  • Unit-of-value freedom

Companies like EntryPoint.Com will take the lead in supplying adult customers with products. Amex has basically said that they don't want the business from this market segment. With digital cash providers like EntryPoint.Com offering an alternative to credit cards, e-commerce providers to the adult products market will have their clients back online in no time. Credit card middleware will no longer be needed.

With alternatives like Digital Cash providers (e.g. EntryPoint.Com), e-commerce providers in this market will be back online in no time, and providers will no longer have to go through credit card middleware.

 
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