BT unites e-payment arms

BT has formed a new business unit, BT Payments, to offer merchants a trusted online payment service while giving consumers peace of mind.

The new venture combines BT Click&Buy and BT Buynet and focuses on the growth area of online payments. According to figures from the Interactive Media in Retail Group (IMRG), online sales in the UK were worth £14.5bn in 2004.

BT hopes its track record and brand will encourage people who have not yet shopped online to do so. "There is a gap in trust when people use their details online," said David Hunter, head of BT Payments.

"We want to become a real trust leader. We have strength behind the scenes, Click&Buy is established and already is used in some five percent of all online purchases. Bringing the two (BT services) together makes good sense and supports our broader strategies." He added that BT's name could work as a kitemark on sites.

Hunter said when a purchaser clicks on a BT Payments link they would be taken to a separate page that identifies the payment system involved. He added that this would, "provide the consumer with confidence".

One of the features that could appeal to firms is that the system allows people to make repeat purchases without filling in payment and contact details each time.

Hunter added that the system could also be used by firms offering premium rate lines to provide customer information or quizzes, for example. Rather than leading people to a higher-rate phone line the charge could be applied online. Hunter said that broadcaster GMTV is considering this as it hopes to move away from using premium lines.

For the first time BT will also offer its payment services for physical goods, and what it called "very high value content".

Payment can be taken in a number of ways, by credit card, direct debit, or through a telephone bill. However, there is a ceiling of £30 for consumers and £400 for businesses. The firm said that payments could be taken through, and integrated with, almost any sales channel, including the web, call centres, WAP and interactive TV.