Nothing But Net
A new electronic payments study by SRI Consulting finds that most consumers will use their credit cards, rather than e-cash or smart cards, for Internet purchases. But, when checks are considered, they were found to be the best long-term alternative (See "www.PaybyCheck?.com," 97:08:01).
SRI
Consulting's Media Futures Program conducted the Electronic Payment
Systems study. Paul Di Senso, an analyst who worked on the study
said, "Credit cards already have an infrastructure in place," and
Secure Electronic Transaction (SET) protocol will increase their use
on the Net. The study also found that smart card transactions will
not dominate since there are relatively few cards in existence
and most PCs are unable to read the cards.
While the SRI findings credit SET protocol with increasing credit card use on the Web, it also found that 70% of U.S. Internet users feel credit card transactions are not safe on the Net. Also, at 30-60 seconds per transaction, SET transactions may take too long.
But, when checks are entered in the equation, the study found the best long-term alternative to SET protocol will come from electronic drafts or checks that let customers use existing checking accounts, such as ChecksByNet™ the nation's first true Internet check guarantee program.
The study also predicts that the market for purchases under $5 will be fought over by companies such as DigiCash (see issue 97:06:02), Digital Equipment, and CyberCash. But, that market will be getting smaller, as items under $5 are given away as part of promotions or advertising.
To learn more about the above Internet payment products check out the following: ChecksByNet™, http:// www.ChecksByNet.com; DigiCash, http://digicash.com, and CyberCash, http://www.cybercash.com.
