eCount

Pennsylvania-based eCount was formed in 1997 as C/Base, a company that structured marketing partnerships between Internet businesses and financial institutions. The company shifted its focus to payments around the time that PayPal was hitting its stride (early 2000). The privately held company is funded by Cross Atlantic Partners, with participation by NewSpring Ventures and Masthead Venture Partners.

The company offers a virtual payment account similar to PayPal except all amounts must be prefunded. Like PayPal, users can send money to any entity with an email address. The company makes money on float and the following fees: $2 per transaction to load value from a credit card, $2.95 per transaction to withdraw money via paper check, $1 per transaction to withdraw money via ATM. Loading and withdrawing via electronic bank transfers are free of charge. Users cannot transfer more than $2,000 into their account each month, and the maximum transaction size, deposit, or payment is $1,000.

One unique feature is that eCount provides each user a MasterCard account number and expiration date usable at any online merchant (e.g., a virtual MasterCard). For $6.95 customers can choose to receive a plastic MasterCard bearing the same account number.

The company primarily offers its services on a direct basis. It says that one million end-users have received an eCount payment. The company also sells its turnkey system for issuing stored value cards to several credit card issuers.

Fidesic

Privately held Fidesic, founded in 2000 as CheckSpace, was a recipient of our Best of the Web designation in the March 2001 . The company is primarily focused on the electronic invoicing and payment (EIP) market for mid-sized businesses. Its services integrate with all major accounting software applications such as QuickBooks, Great Plains, Peachtree and can be customized for others. The system handles both paper and electronic invoices.

Its service also features electronic payment of invoices. Currently it only works in the United States, but by the end of September (2002), it will be expanded to accept payments from users in 19 other countries (Canada, Mexico, Japan, Hong Kong, United Kingdom, Singapore, France, Germany, Australia, Portugal, Belgium, Ireland, Italy, Spain, Denmark, Sweden, Finland, Norway, and the Netherlands). However, only U.S. customers may receive payments.

The company received $11 million in funding in Oct. 2000 from Voyager Capital, Northwest Venture Associates, and other Seattle-based venture capital firms.