Masters Thesis KTH/Department of Applied IT, ITA 01/02-03 What Makes a Micropayment Solution Succeed Framgångsfaktorer för mikrobetalningssystem by Henrik Kniberg
Stockholm 2002	Master’s Thesis KTH Institution for Applied Information Technology Kungliga Tekniska Högskolan 164 40 KISTA

Contents

Chapter 1 Preface. 6

1.1 Background. 6

1.2 Intended audience. 6

1.3 Acknowledgements. 7

Chapter 2 Introduction. 8

Chapter 3 Purpose of this report 9

Chapter 4 Scope and methodology. 10

Chapter 5 What is a payment system?. 11

5.1 What is money?. 11

5.2 Forms of money. 12

5.3 Characteristics of a payment system.. 15

Chapter 6 What is a micropayment system... 22

Chapter 7 What could micropayments be used for?. 26

Chapter 8 How is success defined?. 28

Chapter 9 Existing payment solutions. 29

9.1 Electronic check. 29

9.2 Buyer-initiated bank transfer 31

9.3 Merchant-initiated bank transfer 36

9.4 Prepaid merchant account 38

9.5 Prepaid merchant voucher 40

9.6 Invoice. 42

9.7 Payment relationship sharing. 44

9.8 Physical cash. 47

9.9 Electronic cash. 48

9.10 Mixed payment solutions. 54

Chapter 10 Analysis. 55

10.1 Success stories. 55

10.2