Ariba strikes deal to offer secure transactions
The e-commerce software company inks an agreement with security software maker VeriSign to give businesses a safe method to pay for transactions online with a credit card.
In an effort to speed deals in business-to-business marketplaces, Ariba is working with VeriSign to allow companies to use American Express credit cards to pay for online transactions. Ariba's new system lets companies request payment at the time a product is ready to ship.
Although the growth of online marketplaces has proceeded at Internet speed, many exchanges still require companies to pay for goods "offline," or through regular mail--slowing the process considerably.
Taking a cue from the rapid acceptance of consumer credit card transactions online, credit card companies such as American Express, Visa and MasterCard are charging ahead to reap the benefits of offering payment systems for online marketplaces.
The companies all have recently formed partnerships with e-commerce software provider Ariba and its rival, Commerce One, in an effort to make inroads in the growing market.
Ariba partnered with American Express to develop and market new electronic payment services specifically for online marketplaces.
As part of today's agreement, VeriSign will use a new programming language, called cXML (Commerce Extensible Markup Language), for credit card encryption. VeriSign develops software that secures online transactions using a system to manage digital certificates that serve as electronic IDs online.
Ariba and Commerce One both provide specialized software to create online marketplaces, helping companies conduct business with suppliers and partners online.