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Can Digital Content Revive Micropayments?

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This is a revival of the micropayments concept first introduced in 1994 by a Dutch company called Digicash, which created a solution to the problem of making little payments online. It featured the geeky merit to be provable mathematically – with a powerful equation embodied within a simple software product. Check out the Best info about 소액결제 현금화 80.

Digicash’s system was extraordinarily stylish. Moreover, it featured clear advantages, such as anonymity for customers, bullet-proof security for merchants with no limits on transaction beliefs, i. e., it could be utilized to make payments of just a few pence or even a multi-million lb transaction.

To make this feasible, Digicash relied on its own recently minted digital currency: Cyberbucks. Plenty was impressed by Digicash’s potential to short-circuit the worldwide financial system by replacing significant, centrally-issued currencies with untraceable private ones.

Sadly, these were the only people who got enthusiastic about Digicash. Cyberbucks never captured on, and the company inevitably went bust, despite developing a core business in clever cards for governments and banks.

The problem was that merchants hated the being anonymous part, governments hated an alternative currency part, banks were unsatisfied with the competition, and Internet users weren’t able to be persuaded they possibly needed micropayments.

In the meantime, giants such as Visa and MasterCard began to pay attention and launched their products and services on the Web. The rest is recorded.

But there is a new curiosity about micropayments that aims to tap into the potential for minimal online deals by finally making them inexpensive for merchants. The main issue with such transactions is that service fees imposed by banks and credit card companies eat into the total profit if the marketing is tiny.

To get around this, brand-new schemes need to batch microtransactions and complete a credit card transaction with a set amount, say, US$20. As a merchant, payment from the micropayment service might be obtained for only 1 in one hundred completed transactions.

The micropayment service will choose whether you should pay a merchant and how much to bear. If one hundred customers have invested 10 pence at your website, it will discard 99 of these transactions but then pay out a more significant sum in one go.

Therefore, the cash paid by those customers will invariably arrive, even if, day today, you might find yourself down (or up) on the sum due. Companies like Yaga and FirstGate explored these functions in their content payment options but have a different approach to the actual setup.

FirstGate offers an OR NET model where the content supplier connects to FirstGate solutions and does not worry about managing the actual payment service. Yaga, however, integrates its technology within a content provider’s system and may run the service for your content provider if needed.

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