Spending Programs: A Tool for Flexible Micropayments

  • Authors:
  • Josep Domingo-Ferrer;Jordi Herrera-Joancomartí

  • Affiliations:
  • -;-

  • Venue:
  • ISW '99 Proceedings of the Second International Workshop on Information Security
  • Year:
  • 1999

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Abstract

Micropayments are electronic payments of small amount. Given their low value, the cost of the corresponding electronic transactions should also be kept low. Current micropayment schemes allow a regular amount of money withdrawn from a bank to be split into fixed-value coupons, each of which is used for one micropayment. A more flexible mechanism is proposed in this paper, whereby coupons of variable value can be generated by a spending program without increasing the transaction cost. Moreover, the spending program allows one of several alternative ways of splitting the amount withdrawn into reusable coupons to be selected in real-time.