Micro-PaymentMicro-Payment

• Payment method for very small amount of money.

• Based on cumulative transactions.

• Players, i.e.:

‣ CyberCoin (typically $0.25-$10)

‣ PayWord

‣ Millicent

‣ MicroMint

Micro-Payment: + -Micro-Payment: + -

AdvantagesAdvantages DisadvantagesDisadvantages•Allows low value

transactions.•Secure with the use of

encryption.•Verification of user is not

important as there is immediate transfer of funds.

•Low costs.•Risk is limited to the value of

the cash sent on the network.•Software solution.

•Coins are vendor specific does not allow flexibility.Not mobile. Uses proprietary currencies thus depend on issuing companies to honor their internet cash. No extra hardware required. Internet use only.

How to adopt online payment?How to adopt online payment?

• Own the payment software

• Use POS operated by an acquirer

• Use POS of payment services provider

E-WalletE-Wallet

E-Wallet: CyberCashE-Wallet: CyberCash

Sales Tax IssueSales Tax Issue

• Suppose you buy a laptop computer online from Amazon.com.

• How much sales tax will you owe?

Managerial IssuesManagerial Issues

• What payment methods should we use?

• Should we use an in-house payment mechanism or outsource it?

• How secure are e-payment?

Further ReadingsFurther Readings