This press release suggests some imminent changes at Dexit. Their model is, in my view, not extendible as architected. The concept of another merchant terminal is too complicated for merchants and consumers. The whole aspect of which I covered earlier, of merchant terminals is critical to future payments’ success.
TORONTO, June 1 /CNW/ – Dexit Inc. (TSX: DXT), the creator and operator of the Dexit(R) electronic payment facilitation service for small transactions, reported in its Management’s Discussion and Analysis for the period ended March 31, 2006 and in earlier public documents that under the Merchant Licence Agreement with Bell Canada (the “MLA”), both Dexit and Bell Canada would have the right, should either of them choose to do so, to terminate the MLA on or about May 31, 2006 unless the parties agreed otherwise. The MLA is an agreement under which Dexit granted Bell Canada the exclusive licence to contract with merchants in Canada for the Dexit Service.
As an update, both parties have indicated in discussions with each other that they do not wish to terminate the MLA on May 31, 2006. Both parties intend to continue discussions regarding the renegotiation of the MLA until June 30, 2006. The renegotiations may result in amendments to various terms and conditions, including the amount and timing of Bell Canada’s payment obligations under the licence agreement. Any agreement to amend payment obligations could potentially be retroactive to April 1, 2006; as such, Dexit has not received a licence payment from Bell Canada for the period beginning April 1, 2006 pending the outcome of the negotiations. Each party will retain the right to terminate the MLA at any time, while these discussions continue.
Relevance to Bankwatch:
The Canadian micropayment space remains up for grabs, and its up to the Banks to fill that void.
Technorati Tags: micropayments, canada, dexit, cardis, merchant_terminals, payments
Bankwatch 