Hi Crikey, thanks for your support but I have some comments on your article.PAYbySNAP was not established to take on the Banking cartel. Indeed we have had great support for our research work from Westpac.

We started PAYbySNAP because we wondered why so many of the dotcoms went broke. We concluded that many dotcoms had small valuable services to offer but there was no ubiquitous acceptable payments service they could use to receive payment. This is often referred to as the Micro Payments problem.

Cash is good for small payments but you cannot stuff it down a telco line. And credit cards are too expensive for small payments (<$10). The RBA refer to our type of system as an eMoney system because it has some cash-like features (instant, non-repudiable, certain). The systems are also known as ePurse and eWallet systems.

So we looked at the business processes and developed the system and lodged five patents along the way. We tried to get large companies that needed an eWallet system to take it on but none would be the first. One bank told us they would join but probably as number 10. One high profile medium size company was very close but in the end they also did not want to be first.

Many of the large companies we contacted have a real problem with small payments. Not even the Banking cartel would like to see zillions of small payments on the bank statement. And nor would any bank customer like to reconcile such a bank statement. I venture to suggest that even the banking cartel needs to find a solution to the small payments problem.

Yes in the long run (maybe 20 years) it may affect the banking cartel. Indeed if an overseas system really took off then the Banking Cartel should worry because the fees generated by their payments services might go elsewhere. Just like everyone accepts cash from your wallet you need to persuade the digital community to accept eMoney from an eWallet.

In my view it needs about 20 large companies to come together and form a consortium and go for it. That way the consumer has at least 20 uses for their eWallet. If I have my way there will be an orderly sell down of our assets and company over the next few months.

Oh by the way it’s TOWER Software not Tower Systems. TOWER develops the TRIM Enterprise Content Management suite now in well over 1000 sites worldwide. TOWER Software is in the business of importing $US dollars.

Once again thanks for your past support and check out http://demo.snapewallet.com for what the future might have looked like. In the words of the great baseball pitcher Yogi Berra “the future ain’t what it used to be”.