Napster Selects ClearCommerce for Risk Management and Online Payments
ClearCommerce Supporting Secure Online Memberships for Napster
AUSTIN, Texas and REDWOOD CITY, Calif. - January 10, 2002 - Napster, the pioneering person-to-person file-sharing service, today announced that it has licensed transaction processing and fraud protection software from ClearCommerce Corp. The ClearCommerceŇ Engine enables Napster to easily and securely process membership payments for its new membership service, which is slated to launch in Q1 2002. Financial terms of the deal were not disclosed.
“ClearCommerce’s software completes an important component of Napster’s new service,” said Konrad Hilbers, chief executive officer of Napster. “We are committed to providing the best possible file-sharing experience for our members and ClearCommerce’s software enables us to offer a safe, secure payment process that is both simple and seamless.”
“It makes the best business sense for a company like Napster, with a potentially demanding transaction load, to own its e-commerce infrastructure software,” said Robert J. Lynch, president and chief executive officer of ClearCommerce. “The ClearCommerce Engine allows consumers to easily maintain their memberships and it provides Napster significant cost savings when compared to paying a service bureau on a per-transaction basis.”
“Security issues and perceived risk of fraud remain issues for customers purchasing merchandise online,” said Albert Pang, e-commerce software research manager for IDC. “ClearCommerce’s fraud protection software is designed for reliability and performance, necessary for companies that handle large numbers of transactions exclusively online. It’s a good choice for Napster to meet the needs of its potentially demanding transaction load.”
ClearCommerce’s software supports multiple-currencies, which will enable Napster to process domestic and, eventually, international transactions.
About Napster
Founded in May 1999, Napster, Inc. pioneered person-to-person file sharing and created one of the most frequently downloaded software applications in the history of the Internet. Napster provides music enthusiasts with an easy-to-use, high quality service for discovering new music and communicating their interests with other members of the Napster community. The service enables users to locate and share music files, send instant messages to other users, and create Hot List bookmarks. In October 2000, Napster partnered with Bertelsmann AG to develop a membership-based service. Edel Music and TVT Records joined the alliance in January 2001. In June 2001, Napster became a MusicNet partner and signed a landmark distribution deal with the Association of Independent Music (AIM) and the Independent Music Companies Association (IMPALA), two organizations that represent hundreds of European independent record labels.
In September 2001, Napster signed a landmark accord with the National Music Publishers Association (NMPA) for a proposed licensing and settlement agreement.
About ClearCommerce
Austin, Texas-based ClearCommerce is the leading provider of e-commerce payment processing and risk management software to safeguard and automate online financial transaction processing. ClearCommerce software is used by more than 40,000 businesses worldwide, including customers such as Apple Computer, PETsMART, Sony Online, and Chase Merchant Services. For more information, visit www.clearcommerce.com .
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