UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                           FORM 10-QSB
 QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934
                   ACT REPORTING REQUIREMENTS

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
   EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2000 Commission File No.
33-68570
3

                            eConnect
     (Exact name of registrant as specified in its charter)







Nevada                                            43-1239043
(State of organization) (I.R.S. Employer Identification No.)

2500 Via Cabrillo Marina, Suite 112, San Pedro, California 90731
(Address of principal executive offices)

Registrant's telephone number, including area code (310) 514-9482

Check whether the issuer (1) filed all reports required to be
file by Section 13 or 15(d) of the Exchange Act during the past
12 months and (2) has been subject to such filing requirements
for the past 90 days.  Yes X

There are 180,583,813 shares of common stock outstanding as of
August 1, 2000.



                 PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

The Unaudited Financial Statements as of June 30, 2000
                            eCONNECT
                   CONSOLIDATED BALANCE SHEET
                          JUNE 30, 2000
                           (UNAUDITED)


<TABLE>
<S>                                      <C>
ASSETS
Current assets
     Cash                                          $   164,143
     Due from related parties                         310,525
                                                   -----------
                Total current assets                   474,668

Fixed assets, net                                    484,690

Investment, net                                    2,101,011
Intangible assets, net                             3,436,164
Purchased software                                 2,168,892
Deposit                                                250,000
Other assets                                          141,721
                                                    -----------
                                                      8,097,788
                                                    -----------
Total assets                                      $ 9,057,146
                                                    ===========
              LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Accounts payable                              $2,261,000
     Accrued liabilities                              225,947
     Due to related parties                         3,845,630
     Due to affiliate                                 578,989
     Notes payable-stockholders                       711,818
     Note payable-current portion                     544,971
                                                  ------------
                Total current liabilities            8,168,355

Long-term liabilities
     Note payable-long-term portion                   734,727
                                                   ------------
                Total liabilities                    8,903,082

Stockholders' equity
     Commonstock;$.001parvalue;200,000,000
     shares authorized,177,103,813shares
     Issued and outstanding                           177,104
     Additional paid-in capital                    63,278,319
     Minority interest in consolidated                 15,625
    subsidiary
     Due from related party-secured by
     Company's common stock                        (4,392,918)
     Accumulated deficit                          (58,924,066)
                                                  ------------
                Total stockholders' equity             154,064
                                                   ------------
Total liabilities and stockholders'                $ 9,057,146
equity
                                                   ============
</TABLE>


         See Accompanying Notes to Financial Statements
                                1
                                    eCONNECT
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<S>                                       <C>                              <C>
                                          For the three months ended June   For the six months ended June
                                                        30,                              30,
                                            ---------------------------      --------------------------
                                               2000            1999             2000             1999
                                              ------         --------          -------         -------
Revenue
 Sports Books (excess payouts over wagers)    $(462,573)          $      -       $(462,573)         $     -
                                              -----------       -----------      -----------    ------------
Operating expenses
 Sports Books                                    118,350                 -          118,350               -
 Consulting                                    5,648,127           841,365       15,517,044         867,615
 Public relations                                436,223                 -        5,669,003               -
 Research and development                        243,057           498,254        2,153,366         502,354
 General and administrative                    2,392,073           488,167        4,343,900         547,097
                                              -----------       -----------      -----------    ------------
  Total operating expenses                      8,837,830         1,827,786       27,801,663       1,917,066
                                              -----------       -----------      -----------    ------------
Net loss from operations                      (9,300,403)       (1,827,786)     (28,264,236)     (1,917,066)

Other income (expense)
 Interest income                                 106,535                 -          193,885               -
 Loss on investment                                    -                 -                -     (2,062,500)
 Equity losses of investees                            -                 -        (280,366)               -
                                              -----------       -----------      -----------    ------------
  Total other income(expense)                     106,535                 -         (86,481)     (2,062,500)

Net loss before provision for income          (9,193,868)       (1,827,786)     (28,350,717)     (3,979,566)
taxes

Provision for income taxes                            -                 -                -               -
                                              -----------       -----------      -----------    ------------
Net loss                                     $(9,193,868)      $(1,827,786)    $(28,350,717)    $(3,979,566)
                                             ============      ============    =============    ============
Basic and diluted loss per common share           $(0.06)           $(0.16)          $(0.19)         $(0.22)
                                             ============      ============    =============    ============
Basic and diluted weighted average
 common shares outstanding                   166,744,917        11,181,234      151,417,577      18,233,711
                                            ============      ============    =============    ============
</TABLE>


                 See Accompanying Notes to Financial Statements

                                        2
                            eCONNECT
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (UNAUDITED)


<TABLE>
<S>                                            <C>               <C>
                                                 For the six months ended June
                                                              30,
                                                   ------------------------
                                                     2000             1999

Cash flows from operating activities:
   Net                                              $(28,350,717)      $(3,979,566)
  loss
   Adjustments to reconcile net loss to net
    cash used by operating activities:
      Depreciation and amortization                       785,127                 -
      Common shares issued for expenses                21,702,625         2,910,138
      Equity losses of investees                          280,366                 -
   Changes in operating assets and liabilities:
      Decrease in stock subscription receivable           220,176                 -
      Increase in due from related party                 (60,525)                 -
      Increase in due from related party -
        secured by Company's common stock             (1,412,036)                 -
      Increase in deposits                              (250,000)                 -
      Increase in other assets                          (141,721)                 -
      Increase in accounts payable                      1,735,730           135,210
      Increase in accrued liabilities                     135,267                 -
      Increase in due to related parties                  609,762         (282,535)
      Decrease in due to affiliate                       (34,021)                 -
      Increase in minority interest in                     15,625                 -
    consolidated subsidiary
      Increase in notes payable - stockholders            361,818                 -
                                                      -----------       -----------
              Net cash used by operating              (4,402,524)       (1,216,753)
          activities

Cash flows from investing activities:
   Purchase of fixed assets                             (512,802)           (5,478)
   Payments for investments                             (980,797)                 -
   Payments for purchased software                    (2,168,892)                 -
                                                      -----------       -----------
              Net cash used by investing              (3,662,491)           (5,478)
          activities

Cash flows from financing activities:
   Proceeds from issuance of long-term debt             2,124,000           636,000
   Principal payments on long-term debt                 (844,302)         (100,000)
   Proceeds from issuance of common stock               6,823,288           861,587
                                                      -----------       -----------
              Net cash provided by financing            8,102,986         1,397,587
          activities
                                                      -----------       -----------
Net increase in cash                                       37,971           175,356

Cash, beginning of period                                 126,172             8,862
                                                      -----------       -----------
Cash, end of period                                      $164,143          $184,218
                                                      ===========       ===========
Supplemental disclosure of cash flow:
   Cash paid for interest                                      $-           $97,500
                                                      ===========       ===========
   Cash paid for income taxes                                  $-                $-
                                                      ===========       ===========
Schedule of non-cash investing and financing
activities:
   Remaining consideration of the second half
  acquisition of
      Top Sports, S.A. recorded as Due to              $2,785,868                $-
    related parties
                                                      ===========       ===========
   Remaining consideration of the acquisition
  of
      Powerclick, Inc. recorded as Due to                $450,000                $-
    related parties
                                                      ===========       ===========
   8,000,000 common shares issued
      related to the acquisition of Powerclick,        $1,300,000                $-
    Inc.
                                                      ===========       ===========
   666,667 common shares issued for
      accounts payable                                   $550,000                $-
                                                      ===========       ===========
   6,000,000 common shares issued for
      officer bonus payable                            $4,800,000                $-
                                                      ===========       ===========
   203,865 common shares issued for
      stock subscription payable                          $81,546                $-
                                                      ===========       ===========
   9,400,000 common shares issued in exchange
  for
      due from related party - secured by
    Company's
      common stock                                             $-        $2,598,750
                                                      ===========       ===========
</TABLE>

         See Accompanying Notes to Financial Statements

                                3
                            eCONNECT
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (UNAUDITED)


1.   BASIS OF PRESENTATION

The  accompanying  consolidated financial  statements  have  been
prepared  in  accordance with Securities and Exchange  Commission
requirements  for interim financial statements.  Therefore,  they
do  not include all of the information and footnotes required  by
generally  accepted accounting principles for complete  financial
statements.   The  financial  statements  should   be   read   in
conjunction with the Form 10-KSB for the year ended December  31,
1999 of eConnect ("the Company").

The  results of operations for the interim periods shown in  this
report  are not necessarily indicative of results to be  expected
for the full year.  In the opinion of management, the information
contained herein reflects all adjustments necessary to  make  the
results of operations for the interim periods a fair statement of
such  operation.  All such adjustments are of a normal  recurring
nature.

2.   SIGNIFICANT ACCOUNTING POLICIES

Principles   of   Consolidation  -  The  accompanying   financial
statements include the accounts of the Company's subsidiaries Top
Sports,  S.A.  (99.99% owned) and eConnect Caribbean,  S.A.  (75%
owned).  All inter-company accounts have been eliminated and  the
minority   interest  recorded.   The  Company's   investment   in
Powerclick,  Inc. (50%) is not consolidated but reported  on  the
equity basis of accounting.  See Note 3, "Acquisitions".

Revenue  -  Revenue (second quarter-April 1 - June 30, 2000)  was
reported  from the Company's wholly-owned subsidiary, Top-Sports,
S.A. which revenue is derived from non-internet gaming operations
located  in Santo Domingo, Dominican Republic.  Revenue  consists
of  the  excess  of the payouts in the amount of $3,376,137  over
wagers made in the amount of $2,913,564 resulting in a net gaming
loss of $462,573.

The  Company  acquired control of Top-Sports, S.A.  as  of  April
1,2000,  consequently  the  above  revenue  is  included  in  the
Company's  consolidated operations.  The Company did not  have  a
controlling interest during the first quarter (January 1 -  March
31,  2000), consequently, Top-Sports, S.A. operating results  for
this period was reported on the equity basis of accounting, which
was a loss of $200,669.

Amortization  - Goodwill representing the excess of the  purchase
price  over  the  equity  of  the  ownership  percentage  in  the
Company's subsidiaries and the costs of the intangible assets are
amortized over a three-year period.  Because the Company has  not
begun  its e-commerce operations and installation is in  process,
no amortization has been recorded on the purchased software.  See
Note 4 "Purchased Software".

3.   ACQUISITIONS

Powerclick, Inc. - In February 2000, the Company acquired 50%  of
the   outstanding  capital  stock  of  Powerclick,   Inc.   ("the
investee") in consideration of $1,200,000 cash (of which $450,000
is  still  due and payable) and 8,000,000 shares of the Company's
common stock valued at $1,300,000 for an aggregate 50% investment
of  $2,500,000, which is principally comprised of  goodwill.   To
date,  a  loss of $79,697 (first quarter March 31,2000)  and  six
months goodwill amortization of $319,292 have been recorded for a
net  carrying  value at June 30,2000 of $2,101,011.   During  the
second  quarter,  5,200,000  shares of  common  stock  valued  at
$1,950,000  were  given  to  Powerclick,  Inc.  stockholders  for
consulting    services   and   expensed   in   the   accompanying
"Consolidated Statement of Operations".

Due  to  a  dispute  between the parties  and  unavailability  of
necessary accounting records, Powerclick, Inc. did not report its
second  quarter earnings/losses (April 1 - June 30, 2000) to  the
Company's management.  However, the Company's management does not
believe  that  such amounts, if reported, would have  a  material
impact to these consolidated financial statements.  Consequently,
the  above carrying value of $2,101,011 has not been adjusted for
the   50%   share   of   Powerclick,  Inc.'s   second   quarter's
earnings/losses.

Currently,   the  parties  and  their  respective  counsels   are
attempting to resolve the dispute.
                                4
                            eCONNECT
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


3.   ACQUISITIONS (CONTINUED)

Top  Sports, S.A. - The Company completed the second half of  its
Top Sports, S.A. acquisition effective April 1, 2000 by acquiring
4,997  shares  of the remaining 5,000 capital shares outstanding.
Of  the 10,000 shares outstanding, the Company owns 9,994 shares.
Dominican  Republic  Law,  where Top  Sports,  S.A.  is  located,
requires that there be seven stockholders.

The  above  4,997  shares of Top-Sports, S.A.  was  acquired  for
2,800,000  shares  of  the  Company's  common  stock  valued   at
$3,450,000.  The goodwill resulting from the acquisition of  Top-
Sports, S.A. $2,860,527 is included in intangible assets.

eConnect Caribbean, S.A. - eConnect Caribbean, S.A. was organized
under  the  laws  of  the Dominican Republic and  serves  as  the
Company's   Latin  American  headquarters  for   all   e-commerce
transactions.   The  Company owns 75% of the outstanding  capital
shares  with  the  remaining 25% owned by the company's  managing
director.   eConnect  Caribbean is  in  the  start-up  phase,  no
revenue has been recorded and start-up costs of $71,114 have been
expensed.

4.   PURCHASED SOFTWARE

Purchased software represents the Connex Software System used  in
processing e-commerce transactions. The system will be  installed
in  the Dominican Republic (currently in process), Ireland,  Hong
Kong and Australia. The licensor, E-Funds, (located in Milwaukee,
Wisconsin) and the Company have worked out a payment plan to  pay
$680,000  down and $1,752,000 over three years for  an  aggregate
$2,432,000.

The accompanying consolidated balance sheet liability has imputed
interest  at 15.031% for a present value of $2,124,000 (including
the  $680,000 down payment) assigning a value of $531,000 to each
of  the  above four geographic areas plus $44,892 in professional
service  fees  (installation costs billed and in  process).   The
balance  is   due  in  monthly installments  of  $58,400  through
February 2002 and monthly installments of $29,200 from March 2002
through  February 2003.  Under the terms of the license agreement
the  Company has a no term limitation to use the Connex  Software
System, however, title to the software remains with the licensor.

As  of June 30, 2000, principal payments on the note payable  are
as follows:

<TABLE>
<S>                                      <C>
Six months ending December 31, 2000              $  262,314
12 months ending December 31, 2001        587,23
                                               4
12 months ending December 31, 2002                  372,829
Period ending February 4, 2003                       57,321
                                                 ----------
                                                 $1,279,698

Less: amounts due within one year                   544,971
                                                 ----------
Note payable - long-term portion                 $  734,727
                                                 ==========
</TABLE>

                                5
                            eCONNECT
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5.   DEPOSIT

In  connection with a "Letter of Intent", a non-binding agreement
with  National Data Funding Corporation (NDFC), the  Company  has
deposited  (non-refundable) $250,000.   "The  Letter  of  Intent"
requires the Company to pay the stockholders of NDFC $10,000,000,
10,000,000  shares of the Company's common stock in exchange  for
100%  ownership, and contribute to NDFC $1,000,000 and  1,000,000
shares of the Company's common stock for working capital.

Pursuant  to  the "Letter of Intent", the Company is required  to
"spin off" NDFC as a publicly traded company in which the Company
will  retain a 25% ownership.  The "Letter of Intent" dated  June
2, 2000 expires September 1, 2000.

6.   DUE TO RELATED PARTIES

As  of  June  30, 2000, due to related parties totaled $3,845,630
consisting  of  $3,395,630 due to the former sole stockholder  of
Top  Sports,  S.A.  and  $450,000  due  to  the  stockholders  of
Powerclick, Inc. as discussed in Note 3, bearing no interest  and
due on demand.  The due to related party balance of $3,395,630 is
comprised   of  $609,762  payable  in  cash  and  the   remaining
$2,785,868  payable in 2,800,000 shares of the  Company's  common
stock.

7.   NOTES PAYABLE - STOCKHOLDERS

Notes   payable  -  stockholders  are  comprised  of  five  notes
aggregating  $711,818  ($600,000 in  cash;  $111,818  in  242,500
shares of the Company's common stock). The notes dated in May and
June 2000 are due no later than six months from the notes' dates,
bearing  a  simple  interest rate of 10% per month  on  the  cash
balance.

8.   GOING CONCERN

The  Company incurred a net loss of approximately $28,000,000 for
the  six  months  ended  June 30, 2000.   The  Company's  current
liabilities exceed its current assets by approximately $7,700,000
as  of  June 30, 2000.  These factors create an uncertainty about
the  Company's  ability  to continue as  a  going  concern.   The
Company's  management  has  developed  a  plan,  which   includes
completing  the  development of technology products  to  generate
future  revenues.  The Company will also seek additional  sources
of  capital  through the issuance of debt equity  financing,  but
there can be no assurance that the Company will be successful  in
accomplishing its objectives.

The  ability  of  the Company to continue as a going  concern  is
dependent on additional sources of capital and the success of the
Company's  plan.   The financial statements do  not  include  any
adjustments that might be necessary if the Company is  unable  to
continue as a going concern.

                                6


ITEM 2.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This  statement  includes  projections  of  future  results   and
"forward-looking statements" as that term is defined  in  Section
27A  of  the  Securities Act of 1933 as amended (the  "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934  as
amended (the "Exchange Act"). All statements that are included in
this  Registration Statement, other than statements of historical
fact,   are   forward-looking  statements.  Although   Management
believes that the expectations reflected in these forward-looking
statements  are  reasonable, it can give no assurance  that  such
expectations  will prove to have been correct. Important  factors
that  could  cause actual results to differ materially  from  the
expectations are disclosed in this Statement, including,  without
limitation,   those  expectations  reflected  in  forward-looking
statements contained in this Statement.

                        Plan of Operation

(a) Twelve Month Plan of Operation.

In  the year 2000, the Registrant will focus its attention on the
marketing  and  development  of the  PERFECT  industry  (Personal
Encrypted  Remote  Financial Electronic Card Transactions),  with
specific  focus on the "Bank Eyes Only" Internet  aspect  of  the
PERFECT transaction.

"Bank  Eyes Only" refers to a direct Internet connection  between
the   consumer's   terminal  and  the   Registrants   bank   card
authorization  system by which the consumer will  order  an  item
from  an Internet merchant, but the credit card data or ATM  data
will go directly to the Registrant's server and then to the bank,
bypassing  the merchant. Thus, this service will enable customers
to  pay for Internet purchases, bill payments and other types  of
transactions from home by physically swiping either credit  cards
or ATM cards with PIN entry. These "Bank Eyes Only," transactions
can be processed over the Internet without the cardholder account
information being stored at the merchant's web site, nor does the
merchant   have  ready  access  to  the  consumer's   bank   card
information.

The   Registrant  believes  that  "Bank  Eyes  Only"  transaction
processing  system  will effectively address Internet  consumers'
concerns  regarding personal and financial information  security.
The  Registrant will receive a projected flat fee  of  $1.00  for
each  "Bank  Eyes Only" transaction which will  be  paid  by  the
merchant, not the consumer.

The  Registrant has begun initial sign ups of web  Merchants  for
this  service and based on responses, will now expend substantial
dollars   for   an   aggressive  sign  up   campaign   to   begin
simultaneously  on  several fronts.  To  launch  the  service  of
Internet  "Bank  Eyes  Only"  transactions,  the  Registrant  has
implemented the following initiatives:

     Completion  of testing of the eCashPads, the consumer  "Bank
     Eyes  Only" device. The Registrant expects a national  roll-
     out of eCashPads in the third quarter of 2000.

     Development  of "bankeyesonly.com" web sites in  the  United
     States,  Dominican  Republic, Ireland,  Australia  and  Hong
     Kong. These web sites will be used to register web merchants
     within  the above listed countries to be able to  receive  a
     "Bank Eyes Only" transaction by an eCashPad. A consumer will
     be  able to go the Registrant's website and with the use  of
     his/her eCashPad will be able to safely order merchandise on
     line.

     Aggressive  recruiting of web merchants  to  the  Registrant
     "Bank  Eyes Only" network. Registration of "Bank Eyes  Only"
     web  merchants will be pursued by a team specialists  to  be
     hired  who understand their specific industry such as  phone
     or  cable  or  collections and who will  fully  develop  the
     pertinent  "Bank Eyes Only" applications for  that  industry
     and  who  will  develop  strategic  alliances  within  their
     specific   industry.   In  addition,  the   Registrant   has
     structured  a  networking approach for mass market  consumer
     participation  in finding "Bank Eyes Only"  merchants  along
     with sales teams to sign on local web merchants.

     Using  a  revenue  sharing  plan  from  the  flat  fee,  the
     Registrant will incentivize private labels of eCashPads with
     expected  advertising and marketing of these  private  label
     eCashPads  by the web merchants to their consumer base.  For
     example, a merchant might distribute eCashPads with its logo
     to its own consumers.

     Establishment  of  strategic alliances  with  a  substantial
     partner  in  each country. The partner will then proceed  to
     develop  the  business of "Bank Eyes Only"  transactions  by
     usage of the simple and proprietary eCashPad which has  been
     developed by the Registrant.

     Establishment of the "International," which will be  a  four
     country  real  time "Bank Eyes Only" with ATM card  and  PIN
     entry  game  among the countries of the Dominican  Republic,
     Ireland, Australia, and Hong Kong, whereby consumers  within
     those  countries will be able to use the eCashPad to  effect
     same day gaming with ATM card and PIN entry.

The  Registrant  intends to spin off eGaming and  its  PowerClick
subsidiary as separate publicly traded companies.

                      Current Developments

On May 31, 2000, the Company entered into a Letter of Intent with
National Data Funding Corporation (NDFC)to acquire 100% of NDFC's
capital  stock and spin it off in a publicly trading company  and
retaining  a  25% ownership. NDFC is a company that will  provide
eCashPad  distribution, encryption, and maintenance (see  Exhibit
10.47  to  the Form 10-QSB). The eCashpad is a device which  will
attach  to  a  personal computer to enable a credit card  or  ATM
transaction  via Internet. NDFC will also provide  full  merchant
processing  for all credit and debit cards in support of  eFunds-
United States. The Registrant is in the process of negotiating  a
final acquisition agreement.

                  Acquisitions of Subsidiaries

On  June  20, 2000, the Registrant verbally agreed to modify  two
previous  agreements  entered into with Paul  Egan.  This  verbal
agreement was committed to writing and made effective as of April
1,  2000  (see Exhibit 10.49). In accordance with this agreement,
Mr.  Egan  is  to  receive 25% of the common  stock  of  eConnect
Caribbean,  S.A.,  as  a  Dominican Republic  subsidiary  of  the
Registrant. The Registrant will own 100% of Top Sports. Mr.  Egan
would  resign  as  a director of Top Sports and  would  keep  all
consideration  received to date under the December  9,  1999  and
January  1,  2000  agreements  and will  not  receive  any  other
consideration  under  either  of these  agreements.  He  will  be
employed as President of eConnect Caribbean, S.A. for a  term  of
three years.

                        Promissory Notes

The  Company  has issued five promissory notes totaling  $711,818
($600,000 in cash and $111,818 for the value of 242,500 shares of
the  Company's common stock). The notes are dated in May and June
2000  and are due no later than six months from the notes' dates,
bearing  a  simple  interest rate of 10% per month  on  the  cash
balance.

                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

Other than as stated below, the Registrant is not a party to  any
material  pending  legal proceedings and,  to  the  best  of  its
knowledge, no such action by or against the Registrant  has  been
threatened:

(a) Securities and Exchange Commission Action (March 12, 1999).

On March 12, 1999, the Securities and Exchange Commission ("SEC")
filed  a  complaint  alleging  the Company  had  failed  to  make
available   to   the  investing  public  current   and   accurate
information  about  its  financial  condition  and   results   of
operations through the filing of periodic reports as required  by
the  Securities Exchange Act of 1934 (specifically, the Form  10-
KSB  for the 1997 and 1998 fiscal years, the Form 10QSB for  each
of the first three quarters of fiscal 1998, and the corresponding
Notifications of Late Filings (Form 12b-25)). The SEC  sought  in
this action to compel the Company to file delinquent reports  and
enjoin  the  Company  from further violations  of  the  reporting
requirements.  The  Company consented to the  entry  of  a  final
judgment granting the relief sought by the SEC.

Although  this  action has been concluded,  since  the  permanent
injunction  was  entered  the Company  has  been  late  with  the
following reports: (a) Form 10QSB for the quarter ended  February
28,  1999 (due by April 29, 1999 because of the filing of a  Form
12b-25) - filed with the SEC on May 28, 1999; (b) Form 10QSB  for
the  quarter ended June 30, 1999 (due by August 14, 1999) - filed
with  the SEC on August 23, 1999 (due to an error in the CIK code
for  the  Company entered on the EDGAR electronic filing system);
(c)  a  Form 10-QSB for the transition period ended December  31,
1998  (due by July 5, 1999) - filed with the SEC on September  3,
1999;  (d)  Form  8-K  to reflect a certain  acquisition  by  the
Company  (due by May 21, 1999) - filed with the SEC  on  November
15, 1999; (e) Form 8-K to reflect two acquisitions by the Company
(due by September 15, 1999) - filed with the SEC on November  16,
1999;  (f) Form 10-KSB for the period ended on December 31,  1999
(due by April 14, 2000) - filed with the SEC on May 9, 2000;  and
(g)  Form 10-QSB for the quarter ended March 31, 2000 (due by May
22, 2000).

(b) Securities and Exchange Commission Action (March 23, 2000).

In  a  complaint filed on March 23, 2000 (Securities and Exchange
Commission v. eConnect and Thomas S. Hughes, Civil Action No.  CV
00  02959  AHM (C.D. Cal.)), the SEC alleged that since  February
28,  2000,  the  Registrant  issued false  and  misleading  press
releases  claiming:  (1) the Registrant  and  its  joint  venture
partner  had  a unique licensing arrangement with PalmPilot;  and
(2)  a subsidiary of the Registrant had a strategic alliance with
a  brokerage  firm  concerning a system that  would  permit  cash
transactions  over  the Internet. The complaint  further  alleges
that  the press releases, which were disseminated through a  wire
service  as  well  as  by postings on internet  bulletin  boards,
caused  a  dramatic  rise in the price of the Registrant's  stock
from  $1.39 on February 28 to a high of $21.88 on March 9,  2000,
on  heavy  trading  volume.  The SEC  suspended  trading  in  the
Registrant's common stock on the Over the Counter Bulletin  Board
on  March 13 for a period of 10 trading days (trading resumed  on
the  National Quotation Bureau's Pink Sheets on March 27,  2000).
The complaint alleges that despite the trading suspension and the
SEC's  related  investigation,  the  Registrant  and  Mr.  Hughes
continued to issue false and misleading statements concerning the
Registrant's business opportunities. In addition to  the  interim
relief granted, the Commission seeks a final judgment against the
Registrant  and Mr. Hughes enjoining them from future  violations
of  Section  10(b) of the Exchange Act and Rule 10b-5  thereunder
(the  anti-fraud  provisions of that  act)  and  assessing  civil
penalties against them.

On  March  24, 2000, a temporary restraining order was issued  in
the  above-entitled  action prohibiting the  Registrant  and  Mr.
Hughes, from committing violations of the antifraud provisions of
the  federal  securities  laws. The  Registrant  and  Mr.  Hughes
consented to the temporary restraining order.

On  April  6,  2000, without admitting or denying the allegations
contained  in  said  complaint, the  Registrant  and  Mr.  Hughes
entered  into  a settlement by consent that has resulted  in  the
entry  of  permanent injunctive relief. The settlement  agreement
with  the SEC was accepted and a judgment of permanent injunction
was  entered by the Court on April 7, 2000. The judgment that the
Registrant  and Mr. Hughes consented to prohibits the  Registrant
and Mr. Hughes from taking any action or making any statement, or
failing to make any statement that would violate Section 10(b) of
the  Securities  Exchange Act of 1934 and Rule 10b-5  thereunder.
The  court  has  yet  to  determine whether  disgorgement,  civil
penalties  or  other  relief  should  be  assessed  against   the
Registrant and/or Mr. Hughes.

(c) Employment Agreement Disputes

On  March  22,  2000,  the  Company consummated  an  amended  and
restated employment agreement with an individual and his firm  to
act  as outside counsel for the Company.  On April 14, 2000,  the
Company  terminated  this  individual and  his  firm  as  outside
counsel.    Based  upon  the  amended  and  restated   employment
agreement,  the  remaining compensation  for  the  term  of  this
agreement  will be due immediately upon the termination  of  this
individual  and  his firm as outside counsel  if  terminated  for
reasons other than good cause.  In addition, any common stock and
stock warrants granted through the term of this agreement will be
considered due in the event of termination for reasons other than
good cause.  Accordingly, the termination of this individual  and
his  firm,  for  reasons other than good cause,  may  potentially
expose the Company to incur a liability of approximately $600,000
for  the remaining portion of unpaid compensation for the  first,
second  and  third  years  of this agreement.   Furthermore,  the
termination  may  have  accelerated the vesting  of  the  granted
common  stock  and  stock warrants consisting of  400,000  common
shares and 400,000 warrants exercisable at $1.00 per share.   The
Company's  management  believes  that  the  termination  of  this
individual and his firm was in good cause and intends  to  defend
itself in this matter vigorously.

On  March 21, 2000, the Company consummated an amended employment
agreement  with an individual for the position of  President  and
Chief Operating Officer for the Company.  On April 17, 2000,  the
Company  terminated  this  individual  as  President  and   Chief
Operating  Officer  of  the  Company.   Based  upon  the  amended
employment agreement, the remaining salary for the term  of  this
agreement,  will  be due within 30 days upon the  termination  of
this  individual if terminated for reasons other than good cause.
In  addition, through the date of termination, all of the granted
stock options and warrants will vest and be exercisable for their
entire  term.   Accordingly, the termination of this  individual,
for  reasons  other than good cause, may potentially  expose  the
Company to incur a liability of approximately $1,260,000 for  the
remaining portion of unpaid salary for the first, second,  third,
and fourth years of this agreement.  Furthermore, the termination
may have accelerated the vesting of the granted stock options and
warrants  consisting of 1,000,000 warrants exercisable  at  $1.00
per  share,  6,000,000  stock options exercisable  at  $0.40  per
share,  and  1,500,000 stock options exercisable  at  the  lowest
average daily trading price of the Company's common stock  within
the  first  90 days of the executive's employment.  The Company's
management  believes that the termination of this individual  was
in  good  cause  and  intends to defend  itself  in  this  matter
vigorously.

(d) Shareholder Class Action Lawsuits.

Barbara  Einhorn, et al. v. eConnect, Thomas S. Hughes,  Jack  M.
Hall,  Dianne Hewitt, Anthony L. Hall, and Kevin J.  Lewis,  Case
No. 00-02674 MMM (JWJx);

Joel  Eckstein, et al. v. eConnect, Inc. , Thomas S. Hughes, Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-02700 DDP (CWx);

Felicia Bernstein, et al. v. eConnect, Inc., et al., Case No. 00-
02703 FMC (BQRx);

Robert Colangelo, et al. v. eConnect, Inc., et al., Case No.  00-
02743 SVW (SHx);

Irving  Baron, et al. v. eConnect, Inc. , Thomas S. Hughes,  Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-02757 WJR (CTx);

James  J. Warstler, et al. v. eConnect, Inc. , Thomas S.  Hughes,
Jack M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis,
Case No. 00-02758 R (SHx);

Yakov  Prager, et al. v. eConnect, Inc. , Thomas S. Hughes,  Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-02759 GHK (RCx);

Gil  Weisblum, et al. v. eConnect and Thomas S. Hughes, Case  No.
00-02770 MRP (CTx);

Kenneth Mazda, et al. v. eConnect, et al., Case No. 00-02776  LGB
(Mcx);

Domenico Pirraglia, et al. v. eConnect, et al., Case No. 00-02875
SVW (CWx);

Israel  C.  Hershkop and Shlomo Hershkop, et al. v. eConnect  and
Thomas S. Hughes, Case No. 00-03095 MRP (RNRx);

Judith  Bacun, et al. v. eConnect, Inc. , Thomas S. Hughes,  Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-03161 FMC (JWJx);

Howard Fine, et al. v. eConnect, Inc. and Thomas Hughes, Case No.
00-03290 SVW (BQRx);

Arthur  Smith, et al. v. eConnect, Thomas Hughes,  Case  No.  00-
03301 DT (Mcx);

Thomas  Reimer, et al. v. eConnect, Thomas Hughes, Case  No.  00-
03405 JSL;

Morris Tepper, et al. v. eConnect and Thomas S. Hughes, Case  No.
00-03444 WJR (CTx);

Vin  Bury,  et al. v. eConnect, Thomas Hughes, Case No.  00-03446
ABC;

Frances Villari, et al. v. eConnect, Thomas Hughes, Case No.  00-
03447 LGB (SHx);

Benjamin  Ringel,  et al. v. eConnect, Inc. , Thomas  S.  Hughes,
Jack M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis,
Case No. 00-03591 RSWL (RNBx);

Anthony Massaro, et al. v. eConnect, Inc., Thomas S. Hughes, Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-03671 DDP (MANx);

Ardelle Gardner, et al. v. eConnect, Inc., Thomas S. Hughes, Jack
M. Hall, Dianne Hewitt, Anthony L. Hall, and Kevin J. Lewis, Case
No. 00-03897 MMM (RZx);

The  foregoing  twenty-one actions were filed  on  various  dates
between March 14, 2000 and April 12, 2000, inclusive, and are all
pending  in  the  United States District Court  for  the  Central
District  of  California. These actions are  brought  by  various
putative  classes  of  the purchasers of the Registrant's  common
stock.  The  putative classes alleged, none of  which  have  been
certified,  range from no earlier than November 18, 1999  through
March 13, 2000. Plaintiffs in the various actions assert that the
Registrant  and Thomas S. Hughes, as well as (in certain  of  the
actions)  Jack M. Hall, Diane Hewitt, Anthony L. Hall, and  Kevin
J.  Lewis, have violated Section 10(b) of the Exchange Act (false
or  misleading  statements  and omissions  which  deceived  stock
purchasers) and also Section 20(a) of the Exchange Act (liability
as  a "controlling person" with respect to a primary violation of
securities  laws).  The  principal  allegations  concern  various
alleged   material   misrepresentations   and   omissions   which
supposedly made the Registrant's public statements on  and  after
November  18, 1999 (and/or on and after November 23, 1999)  false
and  misleading, thereby artificially inflating the market in and
for the Company's common stock. The answers or other responses of
the defendants to the various initial complaints are not yet due.
The  Registrant  cannot  as yet express any  opinion  as  to  the
probable  outcome  of  these litigation matters.  The  Registrant
intends to defend these litigation matters vigorously.

ITEM 2.   CHANGES IN SECURITIES

During April  2000, the Company issued 6,000,000 of  its  common
stock  to  for the acquisition of Powerclick valued at  $975,000.
The Company also issued 250,000 shares of its common stock to an
individual for research and development  valued at $156,250.  An
An additional 2,500,000 shares of its  common stock were  issued
to   two  individuals  for  finder's  fees  valued at a total of
$781,250 These  shares were issued in reliance upon Section  4(2)
of  theSecurities Act of 1933, as amended.

On June 27, 2000, the Company issued 200,000 shares of its common
stock  to  two  individuals  for consulting  services  valued  at
$59,400. These issuances were made in reliance upon Section  4(2)
of the Securities Act of 1933, as amended.

On  June 15, 2000, the Company issued 3,000,000 shares of  common
stock  to  an individual valued at $600,000, of which, a  portion
was  for  consulting services  valued at $100,000 and the Company
received $500,000 cash for the remainder. This issuance was  made
in  reliance upon Section 4(2) of the Securities Act of 1933,  as
amended.


ITEM 5.   OTHER INFORMATION

On  May  23,  2000,  the Company's Board of  Directors  appointed
Laurence  B. Donoghue and David Weiler to the Board of Directors,
effective June 1, 2000. Mr. Donoghue accepted his appointment  as
a  member of the Board, however, Mr. Weiler has yet to accept his
appointment.  The current members of the board decided  that  the
position shall remain vacant until such a time as the board shall
fill the vacancy.

The  biography of Mr. Donoghue is included in the Company's Post-
Effective Form SB-2, and is incorporated by reference to Item  10
of that document.

                      Registration of Stock
On  May  31,  2000,  the  Company filed a Form  S-8  to  register
5,200,000  shares  of  its common stock  to  be  issued  to  four
individuals as consultants to the Company.
During  June  2000,  the  Company filed  Forms  S-8  to  register
4,100,000  shares  of  its  common  stock  to  be  issued  to   8
individuals as consultants to the Company.
On  July  10.  2000,  the  Company filed Forms  S-8  to  register
2,480,000  shares  of  its  common  stock  to  be  issued  to   7
individuals as consultants to the Company.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

3.1   The  exhibit  consisting  of  the  Company's  Articles   of
Incorporation is attached to the Company's Form SB-2/A, filed  on
July  22, 1999. This exhibit is incorporated by reference to that
Form.

3.2   The  exhibit consisting of the Company's Bylaws is attached
to  the  Company's  Form SB-2/A, filed on  July  22,  1999.  This
exhibit is incorporated by reference to that Form.

10.47     Letter of Intent with National Data Funding Corporation

10.49     Modified Agreement with Top Sports, S.A.

27   Financial Data Schedule

Reports on Form 8-K:   None.

                           SIGNATURES

Pursuant  to  the  requirements of Section 12 of  the  Securities
Exchange  Act  of  1934,  the Registrant  has  duly  caused  this
registration  statement  to  be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.



                           eConnect



                           By:/s/ Diane Hewitt
                              Diane Hewitt, Treasurer



                           Date: August 21, 2000