Payment on Internet

The payment on Internet indicates the means of payment implemented to pay on Internet. In addition to the traditional Purchasing card, one finds also means more specific like the transactions between private individuals (C2C).

The e-business has developed quickly for a few years recording from 35 to 40% of growth thus giving an increasingly large importance with what is sometimes called ePaiement.

Principles

The cryptography with public key and the electronic Signature make the plastic money possible. The plastic money tends to spread on Internet. That requires the identification of the parts to the means of electronic Certificat as well as a conservation of the histories of the transfers in protected places. The transactions are generally done between a bank and a Payment Service Provider (PSP) via means of payment.

History

In 1987, a Dutch cryptographe, David Chaum develop a protocol of signature making it possible to support the transactions on Internet. It creates Digicash in 1994, initiative which can be regarded as the first virtual fiduciary currency. This one turns short, because too in advance. The currency exchanged pouvaite to be re-used several times as a banknote.

The cybercash cannot be recalled. It is exploited by 3 principal banks which are the Mark Twain Bank, EUnet Finland and the Deutsche Bank.

In parallel, Visa, MasterCard and American Express define the protocol SET together. Adapted to the transactions charts on Internet, therefore of the representative money, SET, which is based on encrypted exchanges by a system of public keys (PKI - RSA) derived from a key root, between the transmitter, the purchaser and a footbridge of payment, very will only little be used because too complex to implement. This protocol will make place later (2000) with 3DSecure, more flexible.

In order to make the microcrédit easier of access, Ron Rivest, founder of RSA, decide into 1990 to differently make the electronic payment by basing a random technique of payment entitled Peppercoin. After 8 years of existence, he declares bankruptcy and its site is made repurchase.

In 1995, CyberCash proposes its protocol of treatment of credit card. May 11th, 2001, Verisign repurchases the company in bankruptcy.

Founded in 1998, Billpoint is a system of payment based on the credit cards bought by EBay in May 1999. In 2000, Wells Fargo bought of them 35 percent thanks to a partnership with eBay.

Approximately of 300 companies, like Yahoo! and the Bank off America uses CheckFree.

Paypal targe to have $225 million Turnover and 8 million consumers. The company EBay, specialized in the private sale, in acquired in 2002 besides, in order to facilitate the payments between its customers Net surfers.

Moneybookers is the second more important service of online payment after Paypal.

Consortia

The E-Business tends to be pressed on open standards, thanks to the consortium OASIS, in order to guarantee the safety of the transactions. XML and the EbXML are largely used in the e-business in order to facilitate the Interopérabilité between the various organizations. Which is added certifications SSL/TLS for the Confidentialité, the integrity and the authenticity of the organizations of payments.

The majority of the organizations specialized in the E-business are sponsored by the OASIS.

FreebXML

FreebXML is an international initiative to support the development and the adoption of the EbXML and technologies which are attached to him thanks to the free division of source code and applications (free) under licenses Open Source on the freebXML.org site.

RosettaNET

RosettaNet is a non-profit organization, complementary to OASIS, which creates and implements open standards for the treatment of the Business to business (B2B) in particular on the level of the chain of provisioning. The companies members of RosettaNet represent 1200 billion dollars of annual income.

The isolated banking one

With the development of the E-business (or E-trade) are set up protected means of payment which avoid with the consumer communicating to the trader site his banking card number.

A “third of confidence” places at the disposal of the trader sites a protected system of payment.

One can quote:

the isolated system blue adoptee in France by the General society, the Group Banque Populaire, LCL, resulting from an Irish technology (Orbiscom company) in partnership with Wanadoo of the Group France Telecom, under the aegis of the Group Credit card
systems of the Savings bank: SPPlus and Id-tronic
the system Secure Click which the Israeli company Cyota with the the United States
proposes the Virtualis system available in some federations of the Crédit Mutuel.

See too

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