Visa International made a move today to improve online commerce capabilities for its member banks with a multimillion dollar equity investment in E-commerce software vendor CyberSource Corp. The company hopes the deal will allow it to offer a more secure environment to its member banks to provide E-business services for commercial customers.
CyberSource develops E-commerce applications, including secure online payment and secure digital delivery, that are loaded onto a server to monitor transactions from the point of sale through shipment.
The two companies will work together to improve online shopping capabilities for member banks, including further development of CyberSource's Internet-based fraud detection system, which looks at characteristics of transactions to see if they look suspicious.
"CyberSource's expertise is in being able to set up companies to handle all their online businesses. [For Visa] it's an enabling strategy," a Visa spokesman said. "Using their technology and expertise, smaller businesses can get online and start accepting Visa cards." Visa also will be partnering with CyberSource to stay one step ahead of evolving fraud capabilities.
CyberSource president and CEO Bill McKiernan says the partnership extends to the virtual marketplace Visa's strength in ensuring easy and secure. "We make it easier for merchants to go live on the Internet, and that's what Visa was particularly interested in."
The value of the deal was undisclosed, though McKiernan said Visa now holds a 5% stake in CyberSource.