Big Plastic's Online Challenger

Iria · Jan 3, 2006, 04:40 AM

Gary Marino knows more than most people about how difficult it is to create a new way for consumers to pay for goods and services.

A self-described "credit card geek" who worked for decades at Citicorp and then First USA, he watched various efforts fail over the years. "The last one that succeeded was the Discover Card in the mid-1980s, and they had to spend tens of billions to build their brand over the last 20 years." Indeed, other than Paypal, which is used mostly for transactions between individuals on eBay, most consumers still make their purchases the old-fashioned way: With cash, checks, or plastic when shopping online.

"SCARY" CARDS.

But Marino is making progress at creating another option. He runs a 150-person outfit called I4 Commerce, whose Bill Me Later payment system is catching on with online merchants and shoppers. Some million consumers have used his alternative, which permits them to shop online without providing credit card numbers or filling out lengthy applications, at 230 e-commerce sites including Wal-Mart, Priceline, Overstock.com, Expedia's Hotels.com and airlines such as American and Continental.

"The truth is that credit cards weren't designed to be used online," says Marino, who adds that I4's sales in the current quarter are up more than 400% over last year. "The [credit card] process is clunky and scary for a lot of people."

Here's how it works: When consumers click on the Bill Me Later icon, they're asked for only two bits of information: date of birth and the last four digits of the purchaser's Social Security number.
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Read More / Source: Business Week

Jan 3, 2006, 04:40 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 87	Big Plastic's Online Challenger Gary Marino knows more than most people about how difficult it is to create a new way for consumers to pay for goods and services. A self-described "credit card geek" who worked for decades at Citicorp and then First USA, he watched various efforts fail over the years. "The last one that succeeded was the Discover Card in the mid-1980s, and they had to spend tens of billions to build their brand over the last 20 years." Indeed, other than Paypal, which is used mostly for transactions between individuals on eBay, most consumers still make their purchases the old-fashioned way: With cash, checks, or plastic when shopping online. "SCARY" CARDS. But Marino is making progress at creating another option. He runs a 150-person outfit called I4 Commerce, whose Bill Me Later payment system is catching on with online merchants and shoppers. Some million consumers have used his alternative, which permits them to shop online without providing credit card numbers or filling out lengthy applications, at 230 e-commerce sites including Wal-Mart, Priceline, Overstock.com, Expedia's Hotels.com and airlines such as American and Continental. "The truth is that credit cards weren't designed to be used online," says Marino, who adds that I4's sales in the current quarter are up more than 400% over last year. "The [credit card] process is clunky and scary for a lot of people." Here's how it works: When consumers click on the Bill Me Later icon, they're asked for only two bits of information: date of birth and the last four digits of the purchaser's Social Security number. ____________ Read More / Source: Business Week