Payment within the internet: How Mircopayment will change the internet

A few words in advanced

There might be one questions to the reader to be answerd in adcanced:

“Why did I choose the topic “How Mircopayment will change the internet?”

The answer is easy. Because I´m interested to understand the procedure of making money within the internet with micropayment. For a few years there are of course possibilities to pay bills in the internet. Special the payment with credit card (Makropayment) is popular. But how will a customer pay only a few cents?

In my opinion micropayment will change the internet and will develop it to a more capitalist net. People today are offering information without getting any money for this. I see a tendency that in the future a lot of information will cost money.

When I was a student at the University of Greifswald I implement the possibilities for the students of printing out old exams in pdf format. At this time it was not possible to get any money for this work. Only with advertising. The knowledge I got from this brought me to the idea to write my termpaper about Micropayment.

Most companies I will present are German. Because of this the termpaper has got a strong German influence.

Because of the fact that Micorpayment is so new I couldn´t find any book about it. Also I didn´t use any pre-written-termpaper to copy parts. I got information of companies who are involved in Micropayment systems like In Medias Res, Deutsche Post AG and Computel.

Payment  within the internet:  

How  Mircopayment will change the internet  

   Index

A  FEW WORDS IN ADVANCED  1

INDEX   2

I.  INTRODUCTION  3

II.  THE POSSIBILITIES OF PAYMENT IN THE INTERNET  4

1.  MACROPAYMENT - SYSTEMS  4

1.1  CREDIT CARD  5

1.2  CASH ON DELIVERY (NACHNAHME)  5

1.3  DEBIT (LASTSCHRIFT)  6

1.4  PAYBOX  6

1.5  OVERVIEW CONCLUSION MACROPAYMENT  7

2.  MICROPAYMENT - SYSTEMS  7

2.1  NET 900  8

2.2  CLICK BUY  9

2.3  E-CASH  10

2.4  OTHER SYSTEMS  10

2.5  OVERVIEW CONCLUSION MICROPAYMENT  11

III.  CONCLUSION: THE FUTURE OF PAYMENT WITHIN THE INTERNET  14

ANNEX 15   

1.  MACROPAYMENT - SYSTEMS  15

2.  MICOPAYMENT - SYSTEMS  15

3.  MOBIL PHONE PENETRATION IN GERMANY  15

BIBLIGRAPHY   16

1.  INTERNET  16

   2

New  Economy: How Mircopayment will change the internet - by Jan Vinzenz Krause  

Payment within the internet:

How Mircopayment will change the internet

I. Introduction

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?

Page 3 New Economy: How Mircopayment will change the internet - by Jan Vinzenz Krause

Payment within the internet: How Mircopayment will change the internet

II. The possibilities of payment in the internet

1. Macropayment - Systems

Everybody who wants to order products with the internet has three possibilites of money transaction. With credit card, debit or cash on delivery. If you order something from a foreign country there is mostly only the possibilty of paying with the credit card.

Credit card, debit or cash on delivery belonging to the group of Macropayment. Macropayment is a system to pay high amounts. It is the older system and started before Mikropayment.

Beside the three possibilities there are are two more. Pre-payment and cheque. As we see in diagram 1 the importance is very low. Both are used only 3 % of all used paying possibilies in the internet. This is the reason why I just will announced them.

I now will present these three possibilites and give an example of a company who is using one of these systems.

Page 4 New Economy: How Mircopayment will change the internet - by Jan Vinzenz Krause