RealTime IT News

ShopNow Takes Stake in escrow.com

E-commerce company ShopNow.com Inc. said its CommerceTrust.com division will become the exclusive back-end transaction processor and e-commerce service provider to escrow.com Inc., in which it has taken an unspecified equity stake.

escrow.com is a developer of e-commerce processing and fulfillment for online buyer and seller sites including online auctions, business-to-business sites and business-to-consumer sites.

escrow.com was launched by Micro General Corp., a subsidiary of Fidelity National Financial Inc., a provider of title insurance, diversified real estate products and services and escrow services.

The three-year deal includes ShopNow.com holding an equity position in escrow.com with ShopNow.com receiving guaranteed revenue including transaction processing fees. Additionally, escrow.com will provide escrow services for ShopNow.com and CommerceTrust.com.

CommerceTrust.com is ShopNow.com's business-to-business commerce division, which provides technology and outsourcing services to retailers, manufacturers, catalogers, and Internet companies, enabling them to launch and manage online businesses.

"Escrow services for online transactions such as auctions are invaluable for establishing security and trust between online buyers and sellers," said Dwayne Walker, president and chief executive officer of ShopNow.com.

"Our equity position and revenue sharing model with escrow.com is a major step forward in our vision of connecting buyers and sellers worldwide in a safe, intuitive environment where both parties feel comfortable."

The escrow.com site will use Micro General's escrow trust accounting software. ShopNow.com also operates the ShopNow Network, which offers online access to over 30,000 businesses.