Digital payment system
Digital payment system is an information technology system that is used for transferring money. A transmission of the digital cash is carried out without the owner using a physical means of payment, such as money exchange. There is no signature required in the classical sense, and no meetings are held between the transaction partners. The exchange of information usually takes place over an open communication network like the internet. The internet payment solution providers have rapidly developed in recent years. Some of the new internet payment systems differ from traditional methods of internet payments, i.a. that they are suitable for smaller payments or payments allow mobile.
The rapid development in wireless networking, communication and mobile technology has a large influence on everyday life. The notable rise of mobile device users has brought about a strong demand for secure wireless information systems and reliable Mobile Commerce (M-Commerce) applications. The Mobile Payment (M-Payment) is a crucial component of most wireless information transferring applications. M-Payment service must allow for transactions between business to a customer (B2C), between businesses (B2B), or customer to customer (C2C) (or peer-to-peer P2P). 1)
Categorization of internet payment systems 2)
Models for the implementation of digital payment systems and the wireless web
Peer-to-Peer 3) wireless payment system, also known as P2P-Paid, is used so that two mobile users can do wireless payment transactions with Bluetooth-communication. The system uses a 2-dimensional secured protocol that not only supports the P2P payment transaction between two mobile clients through Bluetooth-communication, but also the involved secure transaction between the payment server and the clients.
2D-Barcode 4) is an innovative mobile payment system on 2-dimensional (2D) barcodes for mobile users experienced with mobile payment. To read the data you need a barcode reader and a cell phone camera. Once the 2D-barcode is photographed the decoded information is directly shown. You can load the website through a mobile connection if the information depicted contains an URL. The most well known 2D-barcode in Germany is the Aztec-code, which is used e.g. by the Deutsche Bahn who use it for their online tickets.
Two good examples that illustrate the digital payment system models are:
PayPal PayPal allows companies and private customers with an e-mail address to securely, conveniently and efficiently send and receive payments online. PayPal will increasingly be used in various e-commerce sites. This applies to the sale of products such as electronics and household items, the offering of services, such as web design and travel, and the sale of digital content. PayPal's service can be used on the PC or web-enabled mobile phones.
Paysafecard Paysafecard group - also known as “cash for the Internet” – became a pioneer of online payments in 2000. In this internet portal users can pay online quickly, easily and securely without specifying account or credit card information. Today, the Paysafecard group is active in 28 countries worldwide. In 2009, the Paysafecard group was awarded both the Paybefore Award for “Best Prepaid Company Outside USA” and the “Leading Prepaid Organisation 2009”.