US electronic payments association Nacha has put its much-vaunted Project Action Internet payment initiative on the back burner after failing to generate sufficient support from potential sponsors.
Nacha last month gained approval from its board to move forward with the year-long project and develop a new utility charged with solving the privacy, security and authentication issues relating to Internet payments processing.
Under this phase, Nacha intended to form a limited liability corporation, recruit financial institution owners of the corporation, issue a request for proposals, build the Action infrastructure, and conduct live transactions.
However, the Association has struggled to win round potential investors, who were being asked to invest up to $1.5 million each in the establishment of the Action corporation.
Nacha is understood to have quietly put the project on hold until the business climate improves.
News of the turnaround comes as Leonard Heckwolf, SVP of Bank One, was elected as the next chairman of Nacha's board of directors. Heckwolf will begin a two year term effective 1 January, 2003.