Gartner Research

Digital Payment Method: An Introduction

Published: 20 March 2000

ID: G0090818

Analyst(s): Ellen P. Walsh


Early micropayment systems failed, mostly due to ease of use. A second generation of digital payments systems offers more functionality and is better integrated with merchant systems. A variety of digital payment methods such as ISPs, credit card aggregators, and phone bill payments promise to make this market take off. Consumers can now feasibly pay for small-value items (usually under US$20) with minimal effort. Merchants who were giving away small-value items, such as music, single articles, and many other items can now effectively charge the consumer. Giving consumers a way of paying for purchases easily, just as they use cash in the physical world, opens the possibility to greatly increase online purchasing of small-value items.

Table Of Contents
  • Technology Basics
    • Operating Procedures
    • Authentication
    • ISP Model
    • Phone Bill Model
    • Credit Card Aggregation Model
    • Digital Script Model—Millicent
    • Smart Card E-Cash
    • Embedded Chips in Mobile Devices
  • Technology Analysis
    • Business Use
    • Benefits and Risks
    • Standards
    • Price vs. Performance
    • Selection Guidelines
  • Technology Leaders
    • CMGI (Formerly Cha! Technologies)
    • Compaq's (Digital's)
    • CyberGold
    • eCHARGE Corp.
    • IBM
    • iPIN
    • NetToll S.A.
    • Qpass
    • Trivnet
  • Insight

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