Abstract
Lacking payment systems become a bottleneck for the vision of the Information Economy. In many cases, the payments of a fraction of a cent, the so-called micropayments, are of particular interest. In this paper we propose a framework to evaluate the payment systems. The framework consists of a well structured parameter vector of the desired attributes. For the evaluation of attribute values, we suggest to use VTS diagrams from object-oriented analysis and design. The framework is applied to DigiCash, SET and First Virtual.
Similar content being viewed by others
References
W.J. Baumol, J.C. Panzar and R.D. Willig, Contestable Markets and the Theory of Industry Structure (Harcourt Brace Jovanovich, New York, 1982).
J. Becklehimer, How do you cite URLs in a bibliography?, web page URL: http://www. nrlssc.navy.mil/meta/bibliography.html (August 1994).
D. Chaum, Security without identification: Transaction systems to make big brother obsolete, Commun. ACM 28(10) (1985) 1030–1044, web page URL: http://www.digicash.com/.
R. Kalakota and A.B. Whinston, Frontiers of Electronic Commerce (Addison-Wesley, Reading, MA, 1996).
J. MacKie-Mason and K. White, Evaluating and selecting digital payment mechanisms, in: Interconnection and the Internet, 1996 Telecommunications Policy Research Conf., eds. G.L. Rosston and D. Waterman (Lawrence Erlbaum, Mahwah, NJ, 1997), web page URL: http:// www-personal.umich.edu/∼jmm/papers/digidoll.pdf (November 1996).
G. Medvinsky and B.C. Neuman, NetCash: A design for practical electronic currency on the Internet, in: Proceedings of the 1st ACM Conf. on Computer and Communication Security (November 1993), postscript file URL: ftp://prospero.isi.edu/pub/papers/security/ netcash-cccs93.ps.Z.
B.C. Neuman, Security, payment, and privacy for network commerce, IEEE J. Select. Areas Commun. 13(8) (1995), postscript file URL: http://204.178.16.7/jsac/unpro/jsac13.8/ neuman/abs neuman.html.
B.C. Neuman and G. Medvinsky, Requirements for network payment: The NetCheque perspective, in: Proc. of IEEE Compcon '95 (March 1995), postscript file URL: ftp://prospero.isi. edu/pub/papers/security/netcheque-requirements-compcon95.ps.Z.
M. Peirce and D. O'Mahony, Scalable, secure cash payment for WWW resources with the PayMe Protocol Set, web page URL: http://www.w3.org/pub/Conferences/WWW4/Papers/ 228/.
J. Rolfs, A theory of interdependent demand for a communication service, Bell J. Econom. Managm. Sci. 5(1) (1974) 16–32.
J. Rumbaugh, M. Blaha, W. Premerlani, F. Eddy and W. Lorenson, Object Oriented Modelling and Design (Prentice-Hall, Englewood Cliffs, NJ, 1991).
H.R. Varian, The information economy: How much will two bits be worth in the digital marketplace?, Sci. Amer. (September 1995) 200–201, web page URL: http://www.sims.berkeley. edu/~hal/pages/sciam.html.
H.R. Varian, Pricing information goods (June 1995), postscript file URL: ftp://alfred.sims. berkeley.edu/pub/Papers/price-info-goods.ps.Z.
Electronic cash, tokens and payments in the NII, XIWT (Cross-Industry Working Team), web page URL: http://www.cnri.reston.va.us:3000/XIWT/documents/dig cash doc/ElecCashToC.html.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Schmidt, C., Müller, R. A framework for micropayment evaluation. NETNOMICS: Economic Research and Electronic Networking 1, 187–200 (1999). https://doi.org/10.1023/A:1019110007282
Issue Date:
DOI: https://doi.org/10.1023/A:1019110007282