Web Money Models

by Chris Pickering

Money is the key to e-commerce. Selling products over the Web -- exchanging products for money -- defines e-commerce. On the Web, money comes in various forms, some as conventional as credit cards and some as unconventional as eBay's Billpoint online payment service. "Web money," if you will, has been the source of much hand-wringing and the focus of much creative thinking. Many people have been uncomfortable with available money models for Web transactions and have created alternatives to fill what they perceive to be the unique needs of e-commerce. Everything from stored-value cards to micropayments has been developed as the newfangled Web successor to old-fashioned money. In some places, it's even possible to walk up to a vending machine and zap it with your wireless phone to pay for your goodies.