WHITE PLAINS, NY - 08 Nov 2001: IBM today announced that it is working with two Japanese banks as part of a new B2B "trusted e-payments" program that will help set the framework for global financial institutions and their corporate customers to use the Internet for billing and payments.
The Bank of Tokyo-Mitsubishi and Industrial Bank of Japan are the initial financial institutions participating in pilot programs that will help the banks establish "trusted e-payments" software and hardware that work in conjunction with Identrus LLC, a leading standard of trust in global B2B e-commerce supported by more than 50 of the world's top financial institutions.
The programs are a significant step towards the banks' goals to offer Internet-based payment services to their commercial clients. Such services will help banks and their clients reduce the high costs associated with paper-based or electronic data interchange (EDI) billing and transaction processing. In the place of paper or other private electronic billing systems, "trusted e-payment" services leverage the affordability, availability and convenience of the Internet. The Web-based systems are bolstered by electronic security such as digital signatures, smart cards and encryption technology that allow financial institutions to identify and authorize their corporate clients for e-payment services and to do business with each other.
The IBM "Trusted E-Payments" Solution
IBM's trusted e-payments encompasses a suite of new software, services and solutions that brings together all areas of expertise at IBM to enable trusted B2B e-payments for the buyer and seller and facilitated by the banks. The offering includes versatile B2B middleware, such as a new version (cassette) of IBM WebSphere Payment Manager that addresses specifications for Identrus's project Eleanor for e-payment initiation. Other offerings include Websphere MQ Integrator and Tivoli Policy Director, as well as additional strong security software, such as Java Cryptography Architecture; a leading-edge programmable hardware security module, the IBM 4758 PCI Cryptographic Coprocessor; and a Digital Signature Messaging System (DSMS) and XML Digital Signature parser and verifier which can be used to Identrus-enable applications. AIX-based versions of the solution components are ready and include testing of Valicert Transaction Authority(TM) with its new Websphere MQ interface.
IBM's "trusted e-payments" solution also includes IBM Payment Services for financial institutions, available from IBM Global Services. IBM Payment Services for financial institutions will help customers implement global standards across a four-corner model for trusted e-payments transaction that includes the buyer, seller and the two Identrus-member banks that are part of each transaction. IBM Global Services will also accelerate transaction handling through e-payment and electronic validation services, and integrate legacy processes with these new solutions to help control costs. Additionally, IBM Global Services has deployed a team of public key infrastructure experts to assist financial institutions in planning, designing and implementing Identrus-compliant PKI solutions.
IBM's trusted e-payments initiation is built on a larger IBM software offering that will be delivered in mid-2002. This new offering will be built on WebSphere middleware to provide a common network integration capability that will enable financial institutions to integrate existing and emerging networks with their enterprise processing systems. It also will provide support for various other financial network communications, such as SWIFTNet for IP, and will extend the capabilities of Merva customers today.
The IBM Fujisawa manufacturing plant and its supplier companies will take part in the banks' pilot program. IBM Fujisawa is currently using a legacy EDI system and will now test the paying of their suppliers with an Internet-based system using an Identrus and IBM trusted e-payment infrastructure.
"Internet commerce to date has pretty much been a B2C story, comprised of high-volume, low-dollar transactions, said Mark Greene, general manager, IBM Global Banking. "B2B trusted e-payments means moving beyond the $75 transaction to the $750,000 transaction that occurs between businesses. IBM's trusted e-payments program, announced today, will help make that a reality. We're building our hardware and software to specifications so that our customers are Identrus compliant. By embracing this standard, it will allow financial institutions to stand behind high-dollar B2B transactions just as credit card companies stand behind B2C transactions."
Adds Greene: "The commitment of these major Japanese banks to Identrus and e-payments is testimony to the potential cost-savings benefits and revenue opportunities that banks envision by offering trusted e-payment services."
Contact(s) information
Mike Darcy
IBM Media Relations
(914) 642-5032
mdarcy@us.ibm.com
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