Brothers Cyril and John McGuire were the primary beneficiaries yesterday as the value of their holding in technology company Trintech soared to $670 million (€687 million).
The share price rose rapidly on the US Nasdaq and German Neuer Markt following the introduction of the company's virtual credit card for shopping using mobile phones.
The McGuires hold a 37 per cent stake in the company which they founded. Trintech shares rose almost 20 per cent on the Neuer Markt from €60 to €71.85 as markets reacted positively to the joint initiative between Motorola and Trintech. On Nasdaq, the shares soared 30 per cent in early trading to a high of $76.87 1/2 before closing up $11.50 on $70,a record. Trintech, which specialises in secure credit card payment software, has combined its virtual credit card technology with Motorola's wireless devices. The move paves the way for Trintech to capture a share of the potentially lucrative mobile e-commerce market.
Mobile phone users can call up their virtual credit card through the mobile phone keypad or by using voice activated commands. Through a simple process, payment forms at online merchant sites are automatically filled out to complete the transaction. The new product is the first in a collaboration between the two companies and was introduced at the GSM World Congress 2000 in Cannes. Using Motorola's sophisticated voice activation technology, the user speaks into the device, saying "buy" or "pay" to complete the transaction.
Later versions of the technology are planned to include mobile receipts, which will be sent to the buyer's mobile in the form of text messages. Trintech's largest market is in Germany, but the company has said it will make a concerted effort to break into the lucrative US market this year. The alliance with a high profile telecoms player like Motorola should boost Trintech's profile in that market.
Trintech also announced another initiative at the Cannes conference with Discover Financial Services, whereby it will create a virtual credit card for Discover's users. The Discover DeskShop virtual credit card will provide its members with one-click access to their online account, and a "drag-and-drop" facility for shopping more easily online.
