1998, I´m loading down a new song of Madonna. I don´t have to pay anything. Then I need old exams of my universtiy to train for my exam next month. I visit the page of the Student Union and I find three former exams of the last year. I download them for free. Now I´m hungry. Lunch time. But what to cook? No Problem with the internet. Just www.kochen.de and I get a nice prescription to make Lasange. Of course for free.
2003, I´m loading down a new song of Michael Jackson. Costs 0,5 €. Next week I´m writing an exam in Marketing. I would like to practice and download old exams offering by the Student Union. I have to pay 0,2 € per paper. I feel hungry. What about cooking? Why not the prescription of making "Sauerkraut"? I will get it for only 0,4€.
New ideas of payment within the internet are asked. These solution should offer comfort and secure. Today there are lot of payment solutions for Online-Shops like Credit card, debit or cash on delivery. But payment systems to sell information, music, or other things with the internet are in a developing process.
Where is the train going? And what are the future´s best Micro Payment Systems?
Table of Contents
I. INTRODUCTION
II. THE POSSIBILITIES OF PAYMENT IN THE INTERNET
1. MACROPAYMENT – SYSTEMS
1.1 CREDIT CARD
1.2 CASH ON DELIVERY (NACHNAHME)
1.3 DEBIT (LASTSCHRIFT)
1.4 PAYBOX
1.5 OVERVIEW & CONCLUSION MACROPAYMENT
2. MICROPAYMENT – SYSTEMS
2.1 NET 900
2.2 CLICK & BUY
2.3 E-CASH
2.4 OTHER SYSTEMS
2.5 OVERVIEW & CONCLUSION MICROPAYMENT
III. CONCLUSION: THE FUTURE OF PAYMENT WITHIN THE INTERNET
Objectives and Key Themes
This paper examines the evolution of online payment systems, specifically focusing on the shift from traditional "Macropayment" methods to innovative "Micropayment" solutions designed to monetize digital information and small-scale transactions. The central research question explores how these new payment models can transform the internet into a more capitalist environment by enabling authors and content providers to earn revenue for their digital work.
- Analysis of existing Macropayment systems (Credit card, Cash on delivery, Debit, Paybox).
- Evaluation of German Micropayment solutions (NET 900, Click & Buy, E-Cash).
- Comparative assessment of usability, security, and financial viability for traders and consumers.
- Exploration of future market trends, including mobile phone payment integration.
Excerpt from the Book
2.2 Click & Buy
1, 2 and 3. It is very easy to become a member of Click & Buy. The system was invented by Firstgate AG a new start up company situated in Köln. Click & buy is a support system to sell and buy information in the WWW. This Micropayment System is working under the ASP-Modell. The information demander and offerer first have to register at the website of www.firstgate.de. By selecting URLs for which the demander has to pay the offerer has a huge choice of different prices.
Let us take the example of cooking prescriptions. The offerer will change his links into special Firstgate links. If now the demander is clicking on his webpage and chooses a prescription of how to cook a lasagne he has to pay for that information. Firstgate is managing the money transaction process. All information are going to their server in Köln. At the end of the month Firstgate settle the accounts with demander and offerer. The demander will pay his bill by debit. So we can say that Click & Buy is a Micro- and Makropaymentsystem.
The service is free for the demander, but the offerer has to pay registration fee of 25€, a monthly fee of 5€ and percent of his turnover between 30 and 40 percent.
Summary of Chapters
I. Introduction: The introduction sets the scene by contrasting the free information culture of 1998 with a envisioned future in 2003, highlighting the necessity for new, secure payment solutions to support a growing digital economy.
II. The possibilities of payment in the internet: This chapter provides a comprehensive review of current payment systems, categorized into established high-value Macropayment systems and emerging, small-scale Micropayment solutions, including their specific advantages and disadvantages.
III. Conclusion: The future of payment within the internet: The conclusion synthesizes the findings, suggesting that while the adoption of these new systems is a gradual process, they are essential for the future monetization of digital knowledge and content.
Keywords
Micropayment, Macropayment, Internet Economy, E-Commerce, NET 900, Click & Buy, E-Cash, Paybox, Digital Content, Online Transaction, Firstgate, Deutsche Bank, Payment Security, Monetization, Digital Transformation.
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates the changing landscape of internet payment methods, specifically analyzing how Micropayment systems serve as the necessary infrastructure for monetizing information and services in the digital age.
What are the central thematic areas?
The core themes include the limitations of traditional Macropayment for small transactions, the technical operation of various payment platforms, and the economic impact of these systems on internet businesses.
What is the primary objective of the work?
The goal is to determine which payment systems effectively facilitate small-value transactions on the internet and to predict their potential for shaping a more capitalist digital environment.
Which scientific methods were applied?
The author utilizes descriptive case studies and comparative analysis, evaluating specific German companies and their respective payment products to assess their market efficacy.
What does the main body of the text cover?
The main body details four Macropayment systems and three primary Micropayment systems (NET 900, Click & Buy, E-Cash), followed by a comparative overview of their pros and cons.
Which keywords characterize this paper?
Key terms include Micropayment, E-commerce, Internet economy, digital monetization, and various specific system names like Net900 and Click & Buy.
What specific advantages does Click & Buy offer over NET 900?
Click & Buy eliminates the need for specialized software installation and works on a broader range of computers, including those connected via LAN, whereas NET 900 requires specific DFÜ dial-up connections.
What does the author conclude about the future of Paybox?
The author believes that Paybox will gain significant importance in the future, particularly with the advent of third-generation mobile phone technology, potentially displacing credit cards for small-value purchases.
- Quote paper
- Jan Krause (Author), 2000, Payment within the internet - How Micropayment will change the internet, Munich, GRIN Verlag, https://www.grin.com/document/1519
