Making the case for PayPerNet

			E-commerce Research Introduction to PayPerNet.COM

Executive Summary

The potential of sales through the Internet is universally understood as very large. However, payment for purchases made through this medium continue to require restrictive, non-intuitive and/or relatively immature methods. Moreover, most methods are perceived as insecure by the user. The payment issues have effectively created a barrier that keeps a large body of the overall population from making Internet-based purchases.

We propose a new, easy to understand universal payment system that bridges the gap between regular commerce and e-commerce and solves these payment problems. We refer to this new system as PayPerNet. The basis of the PayPerNet system is a proprietary, low-cost international network of points of financial settlement. On top of this system several payment methods will be offered. Among these are internet coupons, local invoicing for remote vendors and 'walk-in' payments for e-customers. PayPerNet settles payments with e-vendors in exchange for a commission.

PayPerNet offers important and obvious advantages to both customers and vendors when compared to all other existing and planned e-payment forms, including payment cards and coupon schemes.

Importantly:

• PayPerNet does not exclude any potential vendors or customers, as there are no sign-up requirements or fees,
• The security of the payment concept is easy to understand also by non-technically-savvy customers,
• Payment can be anonymous,
• PayPerNet does not exclude potential customers, as e.g. those without payment card or bank account
• There are no software and no hardware installation requirements for customers, eliminating cost, complexity and user acceptance issues
• PayPerNet allows clients to pay for their e-purchases using locally available and preferred means of payment, including cash, check, PIN and bank wire
• commission charged to the vendor can be lower than the commission charged by alternative solutions (e.g. card companies) because of PayPerNet's low-cost structure,
• Optional payment upgrade paths can be offered - if, e.g., customers or vendors wish to do so they can request pre-approval and can qualify for additional forms of payment through PayPerNet

These features create the basis for high customer and vendor acceptance. In our opinion this is the single most important requirement for a successful payment method.

Combining these characteristics with its low-cost structure, we believe that PayPerNet will become a leading payment provider in the Internet payment market.