CyberSource (NASDAQ:CYBS), a developer of electronic payment technologies, has seen its stock price steadily rise from $6.50 to $11.10 this year. The company is benefiting nicely as more transactions move online across the globe.

Its third-quarter earnings report saw revenues increase 39%, to $17.4 million. Net income was $300,000, or $0.01 per share, down from last year's net income of $1.6 million, or $0.05 per share. As with many tech companies, the fall in profits was primarily due to expensing of stock options.

Founded in 1994, CyberSource has a comprehensive offering of payment systems for online transactions. Features include an acceptance of many payment options (credit cards, electronic checks, and so on), fraud detection, compliance with taxes and export controls, and recurring billing.

The company added about 1,600 customers in the third quarter, putting the total at 14,000. Those customers include Nike (NYSE:NKE), Home Depot (NYSE:HD), and even Google (NASDAQ:GOOG).

Interestingly enough, management says that none of its customers operate gambling sites, since the company has been leery of the legal exposure. This has turned out to be a smart move, given the anti-online-gambling legislation recently passed by Congress.

As for guidance, expect revenues of $19.8 million for the fourth quarter, with net income of $400,000, or $0.01 per share. For the full year of 2006, revenues are forecast to be $69.1 million, and net income is forecast at $2.4 million, or $0.06 per share.

Also, CyberSource has a new business segment that may be a strong catalyst for growth: It bought in March for only $1.8 million, then hired a team to improve its technology. BidPay's system, which allows merchants to accept payments for online auctions at sites such as eBay (NASDAQ:EBAY), is gaining traction, with 8,000 new users per week.

Nonetheless, online merchants still need strong payment systems to run their businesses effectively, and that trend's not likely to stop anytime soon. Given CyberSource's established background and comprehensive offerings, that's certainly good news for the company's future.

For further Foolishness:

eBay is a Motley Fool Stock Advisor selection, while Home Depot is an Inside Value pick. All of our newsletters offer a 30-day free trial.

Fool contributor Tom Taulli does not own shares mentioned in this article. The Fool has a disclosure policy.