A FEW WORDS IN ADVANCED
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)
1.5 OVERVIEW & CONCLUSION MACROPAYMENT
2. MICROPAYMENT – SYSTEMS
2.1 NET 900
2.2 CLICK & BUY
2.4 OTHER SYSTEMS
2.5 OVERVIEW & CONCLUSION MICROPAYMENT
III. CONCLUSION: THE FUTURE OF PAYMENT WITHIN THE INTERNET
1. MACROPAYMENT - SYSTEMS
2. MICOPAYMENT - SYSTEMS
3. MOBIL PHONE PENETRATION IN GERMANY
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.
Jan Vinzenz Krause
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?
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.
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diagram 1 Quelle: Hörzu Nr. 21/2000 S. 124 f.
I now will present these three possibilites and give an example of a company who is using one of these systems.
1.1 Credit card
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The world most famous and used Macropayment system. In Germany it is only the second used paying system in the internet with 30 %. To imagine how it is working I will describe a buying
action. I choose to have a look at the company www.letsbuyit.com .
The company´s slogan is ”Shop together and save together. The concept is that there are a lot of customers demaning one product. If they buy this product together in a group they get it cheaper. It is a innovative way of shopping online. Basically, the more of people coming together the lower the price becomes.
Let have a short look at the procedure. The customers who is already a member of letsbuyit choose a product. For example a mobil phone of Nokia which costs 200 €. To order he will give some informations to the campany: his name, address, town, telefphone, e-Mail and the number of his credit card. One or two weeks later he will get the mobil phone and letsbuyit will download the amount from his credit card.
Just to announced a few figures about shopping and paying with credit card. The american newspaper ”Internet Professional” found out, that 90 % of the people who want to order something in the Internet are afraid of doing the last step by sending their credit card number to the company.
It is understandable if we know the story about Maxus the nineteen years old Russian computer hacker who stole 300000 kredit card numbers of CD Universe.
This facts give us a note of how necessary secure systems are.
A very big industry which is using credit card payments for years and which is one of the first and most innovative, are the companies producing “sex pages”. They are also the first who are using Micropayment – Systems to sell picutes or movies.
1.2 Cash on delivery (Nachnahme)
The prodecure of selecting goods is the same like I described before in 1.1 with the example of letsbuyit. So I won´t repeat it. I just will tell about the paying procedure.
A German company who is prefering Cash on delivery payment is www.notebook.de. The company is selling notebooks which means high bill amounts of more then 1000€.