Cybercash Inc is collaborating with video game company, Rocket Science Games Inc, to develop arcade-style games that consumers could pay-to-play on the Internet, reports American Banker. The joint announcement steps up the competition among software and technology companies to offer a secure on-line ‘micropayment’ system that would mean people can pay companies directly without using credit cards. Banks have been watching the race closely as they try to anticipate the future of electronic commerce and Visa International Inc recently shook hands with MasterCard International Inc to establish a specification for secure financial transactions over the Internet.In partnership with San Francisco-based Rocket Science, Cybercash intends to widen its payment options to include ‘electronic coins’, essentially small direct transfers between consumers’ and vendors’ cyber-bank accounts. By the second half of 1996, Internet users will be able to select from among 20 video games and play them on-line for 25 cents a game, a statement from the two companies said. Currently, the Cybercash wallet facilitates credit card payments for customers who use Visa, MasterCard and other credit cards. However, credit card payments are considered by most to be too cumbersome for small sums like the 25 cent cost of a video game. Jim Wickett, chief operating officer of Rocket Science, said he felt Cybercash was the most real of the offerings, which include Mondex International Inc and DigiCash Inc. Cybercash has the momentum and visibility in the industry to be the best partner. Cybercash has just completed an initial public offering, selling 2.4m shares at $17 each. Although the company has no revenues, its stock price rose 66% on issue and has remained high, reflecting Wall Street’s interest in the development of Internet payment methods.
