RealTime IT News

InfoSpace.com Aims for Mobile Clients

InfoSpace.com Tuesday bought PrivacyBank.com in an effort to offer mobile users one-click purchasing power.

InfoSpace.com (INSP) will exchange 148,776 shares of its common stock for all of PrivacyBank.com outstanding shares, warrants and options. In mid-morning trading, InfoSpace sold for $205 per share, making the value of the deal $30.5 million.

PrivacyBank.com owns patent-pending technology that provides an automated process for filling in payment forms, eliminating the need to enter in payment information per purchase. Bookselling giant Amazon.com (AMZN) offers a similar service where its consumers may buy books with a single click by storing their payment information.

InfoSpace hopes to absorb PrivacyBank.com's technology to offer wireless device users instant access to e-tailers. PrivacyBank.com's e-commerce technology is the first service that supports privacy preferences of consumers. Jupiter Communications reports that 63 percent of online users do not trust Web sites with their information.

In February 1999, Jupiter Communications announced that 27 percent of surveyed users had abandoned shopping carts because they were disgruntled by forms. PrivacyBank.com's e-commerce technology automatically fills online forms with user information, making Internet shopping easier for consumers and more profitable for online merchants.

"Wireless devices have the ability to be a strategic part of the commerce process by connecting the Internet to the consumer wherever they may be," said Naveen Jain, InfoSpace chairman and chief executive officer. "By providing this one-click e-commerce technology on wireless devices, we can now make it easier for the consumer to purchase goods on the Internet than it is for them to dial a phone number."

This service will be integrated with InfoSpace.com's e-commerce infrastructure that merges online promotion technologies with merchants' existing credit card processing systems.

InfoSpace.com provides services to consumers, merchants and wireless devices. Its affiliate network consists of more than 2,100 Web sites.