STRATEGIC PARTNERS
July 16, 2002
WOBURN, Mass. -- Boston Communications Group (Nasdaq: BCGI), has formed a division called bcgi Payment Services, which the company says is designed to address the needs of wireless carriers for electronic payment processing and management.
According to a news release, bcgi's Payment Services utilizes the company's subscriber management platform to unite wireless carriers with multiple financial and content partners, enabling both carriers and partners to offer new services.
The U.S. wireless industry is showing an increased interest in offering new payment methods to recruit customers from new market segments and better serve its existing customers. One payment method that has shown promise in Europe and Asia is ATM recharge, which allows wireless subscribers to replenish their accounts in real time using their ATM/debit card (See related story Ring a ding ding)
The initial bcgi Payment Services products are ATM Recharge and Mobile Commerce Payment Service. For both of these products, bcgi says its subscriber management platform acts as a "hub" between carriers and ATM or merchant networks. The company handles reconciliation, cash settlement and remittance.
The company has also created a universal acceptance mark, Wireless Wallet, which will
identify locations where wireless subscribers may perform a payment transaction or purchase goods, services and airtime using their wireless account.
Payment Services are interoperable with multiple carrier billing platforms, applicable to all types of wireless plans and require minimal integration effort from the carrier, according to bcgi.
James Anderson, vice president, will lead the Payment Services business. He joined bcgi in 2002 to lead the company's activities in the payment area, including the launch of ATM Recharge. He has held senior business development and product marketing positions with companies in the payments and e-commerce businesses, including AltaVista and MicroFinancial, Inc.
In related news, bcgi posted net income for the second quarter ended June 30 of $1.4 million, or eight cents per share, an increase of 33 percent from 2001's second quarter. The results bested the three cents per share pro forma net income in the previous quarter and the three cents to four cents per share guidance issued for the second quarter.
The company says that total revenues for the second quarter were $17.4 million, compared to $15 million for 2002's first quarter.
The company increased its third quarter guidance to seven cents to nine cents per share and full-year 2002 guidance to 27 cents to 31 cents per share.
