Japan banks develop online payment system

CIOL Bureau
Updated On
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TOKYO:  Three major Japanse banks, Sanwa Bank Ltd , Sumitomo Bank Ltd and Sakura Bank Ltd , have jointly developed a system for settling online shopping payments, Sanwa Bank said on Monday. The three banks will start services using the system in June, a Sanwa Bank spokesman said.

The new system allows users to pay bills through a variety of devices, including personal computers and game consoles, and does not require the installation of special software for electronic bill settlement.

Payments for merchandise, equities trades, insurance policies and other services bought via Web sites will be deducted instantly from bank accounts under the new system, the spokesman added.

He said the system would be used by Japan Net Bank, an online bank to be set up by Sakura Bank and several other firms, including online securities brokerage DLJdirect SFG Securities Inc and travel agency Kinki Nippon Tourist Co.

Shares in the three banks were slightly lower in early trade as the benchmark Nikkei averge drifted near the unchanged level, seeking direction as traders returned from Japan's "Golden Week" holidays. At 0027 GMT, Sumitomo Bank's shares were down 19 yen or 1.37 percent at 1,365 yen, Sakura's was down 10 yen or 1.28 percent at 772 yen and Sanwa was off two yen or 0.18 percent at 1,089 yen.

(C) Reuters Limited 2000.