New venture aimed at B2B payments

Finance and technology companies join forces to create B2B online payments venture

A group of financial and technology firms have teamed up to form an electronic commerce firm that will facilitate online business-to-business payments.

The group, comprised of Citigroup, Enron Broadband Services, i2 Technologies, S1 Corporation and Wells Fargo & Company, will develop a payments system for electronic marketplaces allowing buyers and sellers electronic access to participating banks and financial services companies. Specific financial details were not released.

The new company, dubbed FinancialSettlementMatrix.com, will use Enron's Intelligent Network as a delivery platform, i2's TradeMatrix e-business software and services, and S1's internet-based payment processing technology and messaging capabilities.

I2 has made several moves in the e-marketplace space recently, including linkups with IBM and Ariba. The company recently said that those deals accounted for two-thirds of its licence revenue in the second quarter.

The area has attracted attention from many players, mainly because of the money that is expected to flow through these new marketplaces. Forrester Research predicts transaction volume in B2B e-marketplaces will account for 53 percent of the $2.7tn that will be spent in B2B e-commerce by 2004.

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