CyberCash, Inc. (Nasdaq: CYCH) announced that it will begin testing an online payment processing solution targeted at first-time Internet-based merchants seeking a “quick, easy and safe” entry into e-commerce. The company indicates that the new service, called CashRegister OnDemand, aims to reduce merchants’ startup costs and ease the transition to doing business online by requiring only a browser and a merchant account to get started.
“Let’s face it, business is risky enough without having to shell out hundreds or thousands of dollars for additional equipment to get started. CashRegister OnDemand is a relatively risk-free way for many people to dip their toes into the e-commerce waters,” Nancy Goldberg, senior vice president, CyberCash said.
The Big Picture
On a broader level, however, CyberCash seems to be launching a new marketing strategy to better compete against the myriad of competitors that have edged out CyberCash in the small business and entrepreneurial e-commerce market segment. Focusing on ease of setup is a wise move for CyberCash, whose online payment processing system requires a dauntingly complex installation in many cases.
Indeed, the technical and administrative complexities associated with transaction processing have given rise to a new, burgeoning industry of outsourced payment processing services like iBill and E-Commerce Exchange. The new technology announced here could potentially reestablish CyberCash as a viable option for entry-level online merchants and serve as an upgrade path to other CyberCash services.
“We believe this new service will help solidify our position as a leader in the market because we are making it even easier for small to medium-sized businesses to take advantage of the rising tide of e-commerce,” said Goldberg. “CashRegister OnDemand will allow new merchants to enter the market with minimum expense and later upgrade to CyberCash’s full line of payment offerings and e-commerce solutions.”
Seeking to Expand Offline
According to CyberCash, the service can also be used by those small and mid-sized merchants in the physical “brick and mortar” world who want to expand into e-commerce.
“As one of the only companies providing e-commerce payment solutions in both the physical and virtual worlds, we are acutely aware of the increasing convergence between these worlds and the need to provide merchants with a safe and easy way to migrate from one to the other,” Goldberg concluded.
Beta testing of CashRegister OnDemand reportedly begins this week, and the service is expected to be available to merchants by Summer.