First Virtual Holdings, Inc (FVHI) is an online payment company, based in San Diego, California. The company has developed a technology by which consumers can securely purchase goods and services over the internet. Each participating customer is provided with a "VirtualPIN" number, which is used instead of a credit card to pay for purchases from participating merchants online. Providers forward VirtualPIN customer number, along with the amount of the transaction to FVHI. FVHI then sends an email to the user asking for confirmation. If an acknowledgment is received, FVHI processes transactions and pay the supplier. This technology ensures that credit card customer number is never transmitted over the Internet. The system is safe, but embodies a certain amount of inconvenience to every purchase requires two steps. FVHI a good example of a company with good technology, the main task is to get a critical mass of users is needed to make the system viable. The company is facing strong competition from the industry, established players such as software developers, banks and credit card companies. In addition, continued consumer reluctance to adopt e-commerce block progress of society. "Hide
by Sid L. Huff, Mike Wade Source: Richard Ivey School of Business Foundation 20 pages. Publication Date: November 26, 1997. Prod. #: 98E007-PDF-ENG
Related Case Solutions & Analyses:
Premiere Distributing Inc.: The Popcorn Predicament
Strategic Sourcing at Whirlpool China: Finding the Ideal Supplier
The Fish Whisperer
Datavast Inc.: The Target Segment Decision
Predicting a Firms FInancial Distress: The Merrill Lynch Co. Statement of Cash Flows
Tata Steel Limited: Convertible Alternative Reference Securities (B)
Ashta Chamma – The Biggest Small Movie Ever Made (A)
Toy2R: Pioneer of Creative Designer Toys in Hong Kong
Taino Construction Supplies: Managing Innovation Risks at an SME in a Small Developing Nation
Hospitality Services – The University of Western Ontario
