Customer Perceptions of a Thin-Client Micro-Payment System

Abstract

Two fundamental payment methods exist for on-line information purchase: macro-payment and micro-payment. Traditional macro-payment methods, like credit and charge cards and digital currency, are suitable for large-value, low-volume transactions. However, large-volume, low-value commodities, such as discrete units of information from a Web site, better suit a micro-payment model. In micro-payment, customers pay for large numbers of small value goods (e.g. per-Web page view) with “e-coins”, typically of very small value each. We have carried out an empirical assessment of micro-payment and macro-payment purchasing models for an on-line newspaper application. We report on the design of our experiment, the two kinds of micro-payment (client and server-side e-wallets) used, and customer feedback. We also carried out an assessment of customer effort and economic trade-off when using these services and compare the results of this assessment to a survey of customers using each system. We present directions for further on-line payment research aiming to improve the overall satisfaction and efficiency of payment models for end-users.