Introducing an emicropayment method using the internet Essay

Introducing an emicropayment method using the internet - Essay Example Using credit cards is the most common way to purchase items online. When a buyer tries to buy an inexpensive item through a credit card, the authentication and verification process of user account is often quite cumbersome and in most cases is infeasible and unpractical. For merchant selling inexpensive items, finds its profits disappear due to the high credit card fees and associated costs (Geer, 2004). Therefore the tools used for online payments are one of the biggest factors in deciding the fate of e-micropayments. Since the sales are often low and the profit margins thin, the sellers don't feel comfortable in investing into e-micropayment technologies and goods. They feel that the risk taken to sell inexpensive goods is not worthwhile. Therefore the supply of inexpensive goods and seller's attitude is another factor deciding the existence of e-micropayments. (Smith, 2003) Since its start, e-micropayments haven't shown the intensity and promise that was expected. Due to not enough successful inexpensive products in the market (compared to more expensive items) the demand for keeping inexpensive assortments in the inventory is low (Geer, 2004). Therefore the historic trends, not enough success stories and the hype in the market are other factors that need to be considered to make e-micropayments method a success. For all online transactions, a buyer or a merchant needs to have a secure and reliable e-micropayment technology (Geer, 2004). Since critical personal information and credit card (account) information is given over the net, a secure (usually SSL) and safe technology must be in place. Without such a technology, the method can never be a success. To run e-micropayments methods, dependant technology like computers, servers, internet etc. should be reliable (Geer, 2004). If the internet link is unreliable, or the merchant's website has a high downtime, the customers would simply move to a different merchant which provides the same products and services but which does not offer e-micropayment technology. Another issue is the cost of the e-micropayment technology and how much of the commission is charged from the merchant. If this cost is high, the merchants would not agree to have this system and would rather prefer a normal credit card payment option. (Electronic Payment Systems, 2006) As we have seen from the discussion above, there are a lot of stakeholders involved in the entire process which complicates the matters. Although e-micropayments are convenient and needful, their lack of practicality at the moment has let it down. Building a secure, reliable and inexpensive e-micropayment solution is required at a time where PayPal and credit cards have taken over the sale of expensive items. Works Cited 1. Electronic Payment Systems. (2006). Retrieved February 8, 2008, from Prentice Hall: www.c5c6.com/upfile/down.phpfilename=908a738581.ppt 2. Geer, D. (2004). E-Micropayments Sweat the Small Stuff. Retrieved Februa