What are Micropayments?

Micropayment refers to the processing of multiple payment transactions within a certain period of time and the net settlement of funds. The purpose of building a small-volume payment system is to provide low-cost, large-business payment and clearing services for the society, support the use of various payment services, and meet the needs of various economic activities in society.

Micropayment

The small payment business adopts the method of small batch processing, and the payment information is forwarded regularly or in real time.

(I) Initiation (Initiation

Water and electricity fees need to be re-signed

Prior to the promotion and application of the micropayment system, the payer has signed a payment agreement with the charging unit and bank.

"Queued demand" and "smaller and smaller payments" drive up the demand for small payments. Micropayment technology is designed for small, fast and convenient payments. Therefore, with the emergence of Mifare and Felica technologies, high-frequency queues and public resource areas have become the earliest petri dishes for micropayments. . We believe that queuing demand will still dominate the development of micropayments in various regions. On the other hand, according to BIS statistics, on a global scale, the average single payment amount paid by card carriers has decreased significantly, which indicates that people use cards to make small payments. ^[1]

Diversified industrial patterns have resulted in various payment carriers in various countries. Japanese telecom operators have controlled mobile phone manufacturers downstream, making mobile electronic wallets "advanced" as early as 2005; South Korean mobile phone manufacturers are relatively strong, leading them to dominate the design and manufacture of mobile phone terminals. The mobile phone carrier in South Korea was designed to "transmit information through infrared", and later integrated the RFID module; offline payment methods in Europe are very popular due to: (1) offline payment has low requirements for networking, and chip encryption The computing power requirements are high, and the first-class IC design manufacturers represented by NXP in Europe have "the ability to design high-parameter ICs"; (2) Compared with the United States where online payment is popular, the cost of communication in Europe is relatively high, so POS deployment has turned Machine mode.

The influence of the operating structure of the payment system cannot be ignored. Payment systems fall into two categories: financial payment systems and non-financial payment systems. Different countries and regions have different government regulations on financial payment operations, and payment operation systems are very different. So the integration process between payment carriers has taken a very different route.