hat is a Micropayment system?
Micropayment system provides a means of transferring small monetary amounts and serve as a convenient alternative to traditional payment arrangements. Micropayments refer to low value electronic transactions.
MicroPayment Systems(MPS) have been developed in the past decade, but for various reasons, have not yet penetrated the market deeply. The critical mass of users will probably be reached very soon in some industrial countries where Internet has a deep penetration. This has an effect in the fragile balance between the defenders and the offenders of computing systems. There is a need to analyze this new player and understand the new issues that arise by the introduction of MPSs to our everyday life.
1. Introduction
The electronic payment mechanisms of today have been designed for handling payments of value over five dollars. It, however, seems that these systems cannot manage a large amount of payment transactions below that value level in parallel very well. Together with the envisioned new opportunities in e-commerce, the difficulties have lead to the development of completely new electronic payment mechanisms such as micropayments that have been envisioned to bring solutions to these problems. To meet sufficient security for all participants in electronic commerce, a micropayment system makes it possible to make small payment through electronic communication networks.
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