Paytrust's Next Hurdle: Signing Up Banks American Banker (08/07/00) Vol. 2, No. 5 p.1; Toonkel, Jessica
Paytrust, an electronic billing company that opened
last year, is hoping it can soon begin making partners of
financial institutions. Banks have traditionally shied away from
electronic billing operations, mostly because they are
complicated, messy, and difficult to cash in on. However,
Paytrust CEO Edward G. McLaughlin thinks he can change their
minds. Although Paytrust's business model has been criticized as
too labor intensive and critics argue that the prices are too
high--$8.95 for the first 25 transactions and 50 cents per
transaction after that--the company has already bucked the odds
in signing up OnMoney.com, American Express, and GE Capital.
Internet credit card issuer NextCard is expected to follow suit
at some point in August.