Online Resources Pilots Banking-Based Expedited Payments
Company Links Financial Institution and Biller Networks for Same Day Bill Payments
CHANTILLY, Va., April 17, 2007 – Online Resources Corp. (NASDAQ: ORCC), a leading provider of Web-based financial services, today announced it is piloting an expedited payments service that enables financial institutions to offer their consumers and small businesses online bill payments that are posted by billers on the same day.
The expedited payments service leverages the Company’s unique end-to-end payments network, which links its proprietary financial institution gateway with its extensive biller network. Today, consumers using the pilot financial institutions’ web sites may opt to make guaranteed same day bill payments to about 200 billers. With a broader launch planned for the fourth quarter of this year, Online Resources expects to expand the expedited payments option to several hundred billers.
The new service will provide significant benefits across Online Resources’ client base:
- Financial institution clients gain an opportunity to better serve their customers and members with a convenient, cost-effective way to expedite their payments. In addition, they gain an added opportunity to generate fee income from the growing market for last minute payments, which is estimated to reach $1.7 billion by 2009, according to a 2007 study by Javelin Strategy & Research.
- Biller clients gain another electronic channel for receiving timely payments. By debiting the consumer’s checking account using Online Resources’ patented debit technology, the funding is guaranteed to the biller.
“We chose to take advantage of Online Resources’ unique payments network to provide our members the added convenience and flexibility of same day payments,” said David W. Cummings, chief information officer and vice president of Global Credit Union, a pilot participant based in Spokane, Washington. “This is a cost-effective service that makes our Internet channel even more valuable to our members, particularly those who are active military, many of whom are overseas.”
“This value-added service is a first step toward end-to-end real-time payments, and a direct result of linking our unique payments gateway to our recently acquired biller network,” said Stephanie S. Chaufournier, executive vice president and general manager of Banking Payments Services for Online Resources. “We can guarantee same day payments for consumers, incorporate another valuable service into our clients’ Internet channels, and eliminate the risk of these payments for our biller clients.”
About Online Resources
Online Resources powers web-based financial services for 2700 financial institutions, billers and credit service providers. Its proprietary suite of account presentation and payment services are branded to its clients, and augmented by marketing services to drive consumer and business end-user adoption. The Company serves over 9 million end-users and processes $100 billion in bill payments annually. Founded in 1989, Online Resources (Nasdaq: ORCC; www.orcc.com) is recognized as one of the nation’s fastest growing companies.
This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically, factors that might cause such a difference include, but are not limited to the Company’s: history of losses; dependence on the marketing efforts of third parties; potential fluctuations in operating results; ability to make and successfully integrate acquisitions of new businesses; potential need for additional capital; potential inability to prevent systems failures and security breaches; potential inability to expand services and related products in the event of substantial increases in demand; competition; ability to attract and retain skilled personnel; reliance on patents and other intellectual property; exposure to the early stage of market adoption of the services it offers; exposure to the consolidation of the banking and financial services industry; and additional risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the Company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
Media Contact: Beth Halloran
Mng. Dir., Corporate Communications
703.653.2248
bhalloran@orcc.com
Investor Contact: Catherine Graham,
EVP & Chief Financial Officer
703.653.3155
cgraham@orcc.com
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