Fujitsu to Simplify Online Purchase Settlement

Last week, Fujitsu Ltd. announced that it intends to offer an integrated Internet shopping settlement service for members of its
InfoWeb and NIFTY-Serve online services in Japan.

The new service, dubbed iREGi (“Internet + cash register”), is scheduled to
commence on August 2.

Initially, iREGi service users will only be able to shop at some 80 online
stores set up on the two Fujitsu sites. By March of next year, however, Fujitsu hopes to sign up at least 300 online stores, including those based on other ISP sites.

“We’re looking into various possibilities,” confirmed a Fujitsu
spokesperson. “It’s possible that other ISPs hosting similar online shopping
malls could become a part of our iREGi system.”

Sony’s So-net Web site currently offers a similar, non-compatible purchase
settlement service, dubbed Smash,” with about 180 participating online
stores.

Regarding competition between the two, the Fujitsu spokesperson explained that
“iREGi doesn’t directly compete with So-net’s Smash. Rather, I’d call the
two complementary. We think there’s still a lot more room for growth in this
business.”

Members who have registered for the service will be able to purchase
products from any iREGi-member shop by simply entering their user ID and
password. Payment for such purchases will be charged to the same credit card used in customers’ InfoWeb or NIFTY-Serve accounts.

By enabling members to make online purchases without the need to input their
credit card information, the iREGi service addresses a prevalent concern
among security-conscious Japanese consumers — one that has so far retarded
the growth of Internet shopping here.

In addition to this sense of security, iREGi will offer consumers
transaction reliability (member shops will be screened) and convenience
(payments will be made directly to InfoWeb or NIFTY-Serve, which will then
settle with the merchant). iREGi will also allow users to confirm purchase details by e-mail and check their past year’s purchase history via the Web.

Advantages for iREGi merchants include easy implementation (no special
software is required), reliable service, and a reduction in the
administrative cost and paperwork involved in setting up an online shop.

IREGi merchants need deal only with one Fujitsu subsidiary — G-Search Ltd.
for InfoWeb, or NIFTY Corp. for NIFTY-Serve — rather than a variety of
credit card companies.

“The merchant won’t need to sign contracts with a lot of individual credit
card companies,” observed Fujitsu’s spokesperson, “yet will be able to sell
to holders of all the 26 varieties of credit cards that InfoWeb and
NIFTY-Serve currently accept. Purchases will be charged to the credit card
account that the buyer has listed with iREGi.”

Fujitsu feels that the 3.3 million member user base of InfoWeb and
NIFTY-Serve should also attract online merchants.

“You’re looking at a large existing customer base — over 600,000 members on
InfoWeb and 2.7 million on NIFTY-Serve,” said the spokesperson. “For a shop
owner, that’s a lot of possible customers just waiting at the doorstep.”

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