FIRST VIRTUAL PAYMENT SYSTEM
First Virtual Holdings was a company created in early on 1994 to facilitate Internet commerce. The first product present from First Virtual was an Internet payment system, which was residential quietly and publicly announced as a fully-operational open Internet service on 15, October 1994.
First Virtual presented most of the features of both PayPal and eBay previous to those companies stay alive.
Key people behind First Virtual were Nathaniel Borenstein, Marshall Rose, and Einar Stefferud and Lee Stein. as of The New York Times
"The First Virtual move toward is to generate an automatic authorization system that necessitate no preceding relationship between seller and buyer. In the period of electronic commerce, the new system might herald a shift equivalent to the transition an age group before when the members-only department store credit card gave way to use-anywhere cards similar to Visa and MasterCard.
"The new company, based in San Diego, is the brainchild of Lee Stein, a San Diego lawyer and accountant who is its president, and three computer scientists long concerned with the Internet global web of computer networks. First Virtual's immense associates are Electronic Data Systems Inc., a division of General Motors, and First USA, a fast-growing credit card company in Dallas that will concern a Visa card for the new service."
First Virtual's system is different in several ways from all other planned approaches to Internet commerce, the majority particularly in the fact that it did not rely on encryption or any other form of cryptography to make sure the security of its commercial transactions. in its place, safety was make sure by enforcing a dichotomy between non-sensitive information (which may travel over the Internet) and approachable information (which never does), and by a buyer opinion mechanism.
First Virtual's protocols were built atop presented IETF protocols, and subject to public debate. The spine of the system was intended around Internet email and the Multipurpose Internet Mail Extensions (MIME) standard. First Virtual used usual email to communicate with a buyer to verify charges against their account. Sellers could use email, Telnet, or automated programs that made make use of First Virtual's Simple MIME Exchange Protocol (SMXP) to confirm accounts and initiate payment transactions.
Observe and for additional thought of the First Virtual's system.
Early on rounds of investment came from leading institutions such as First Data, First USA, and GE Capital, foremost to a successful IPO in 1996. First Virtual was sell and altered its name to Message Media (for $0.60 per share) on December 16, 1998. Message Media used the FV Email tools with substantial success in its Customer Relations Management Services (CRM) until Message Media in turn was compulsory to sell out to Double- click in the dot com crash for US$0.16/share in late 2001.