JOCKEYING FOR POSITION
CheckFree had defined itself as a facilitator, allowing the trusted intermediaries—primarily the banks—to “own” the relationships with the consumers and businesses they served. Through its history (see Exhibit 6 for a CheckFree timeline), the company had worked largely out of sight, providing a transparent service. Consumers had experienced the benefits but never “saw” CheckFree. Even customer service was provided out of CheckFree’s call centers on behalf of the CSPs.
The Internet had turned the financial services industry into a war between technology companies and banks, with payment systems as the first battleground. Technologists saw the opportunity to redefine and totally transform the industry landscape, leaving the banks behind. As Bill Gates reportedly put it, “Banks are dinosaurs. We can ‘bypass’ them.” Without grabbing any headlines, CheckFree consolidated its position and, as the war subsided, emerged as the leading provider of electronic payments services.