What is going to Replace Cash for Small Obligations?
But credit cards have their limitations. They are not suitable for purchases of digital content charging less than a few dollars per deal (micro-payments). The card system is not cheap for processing small payment amounts, and in many cases the minimum transaction amount is around US$10.
To sell digital articles, a different payment method is required. In the early days of the internet, developers produced? e-money,? enabling consumers to purchase cheap items online from a website supported by the e-money provider. However , there was clearly the potential for fraud on the part of the e-money providers, to whom consumers supplied their credit-card numbers in exchange regarding tokens.
Many of these early attempts to make e-money mechanisms for managing micro-payment transactions schemas met with business failure (e. g., early micro-payment vendors such as Flooz, Benz, Digicash). Even for feasible business instances, the failures often occurred because the merchants had to implement additional hardware/software requirements, and the customers had to prepay. It was simply too difficult to implement, but not worth the (then) small revenue streams from the internet.
But the situation is a lot different now. New micro-payment providers allow customers to set up online accounts associated with their chequing and savings balances, thereby reaching a whole new segment of shoppers without credit cards. Micro-payment also has one more future as a replacement for cash to purchase goods and services at shops, cafes, bars, libraries, printers, pharmacies, sports centres, photocopying and laser-printing shops, as well as for bus and taxi fares, or for any purchase in which coins are used.
What are evolving from the early tries are three distinct micro-payment schemas:
– The Retail Model which usually utilizes a stored value program
– The Telco Model which usually leverages the telcos? billing system
– The Financial Model which usually uses a multi-application smart card with an e-purse
The Retail Model – Saved Value Systems
The principal of the saved value systems is based on the micro-payments schema: store value accounts are connected to a credit card in which a consumer needs to load credits in order to make a buys, or connected to a stored value account that accumulates payments and makes authorizations based on increments.
With a stored value system, the customers need to register for the services online or by phone; they have to provide a charge card number and load a balance. In order for the consumer to be able to make re-loads, the device needs to remember his or her information. Stored value systems are common in the assistance industry, for example as part of the McQuick service in Canada. If you are you looking for more info on 기프티콘 현금화 take a look at the site.
Telco Model — Micro-Payment Billing
The rapid transmission of GSM handsets has already led to a situation in which more individuals bring a telephone than carry a bankcard. Additionally , people tend to have just one mobile telephone from a single owner, whereas they might have multiple bankcards.
This suggests that mobile operators get access to demographic segments not available to traditional financial institutions. By targeting the right market group, mobile operators can use their very own billing systems to register micro-payment transactions. Pricing wireless applications on a per-use or subscription basis is the best way to appeal to consumers and to give them worth for their money. More importantly, separating content fees from transport fees allows carriers to keep all transport revenues while enabling a revenue stream for content providers.