Global Trade Center

A third problem with payment by credit card continues is that it is expensive. There is the potential on the Internet for a large volume of quite small transactions involving the sale of information, such as a single song, photograph, news item, or piece of data. The payments involved are likely to be small-from $10 down to 1c or even less. For such transactions, various technologies are being developed to provide some form of “digital cash”.
For the time being, however, the credit card continues to dominate Internet commerce. None of the new digital check or cash technologies have yet caught on. Of course the same network externalities that stand in the way of the smart card are part of the problem here. Consumers do not use the new technologies, because not enough merchants accept them. Merchants do not accept them because not enough consumers use them.

Tags: creditcard, debit, debitcard, Finance

This entry was posted on Sunday, September 13th, 2009 at 9:29 am and is filed under Finance, Forex, Payment mode. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.