However, consumers need virtual cash to perform the equivalent Internet purchases for which they use cash in the real world. Credit cards are too costly for micropayments of low-value products and services, such as articles and mp3 files. The micropayments market will represent an opportunity of 17 billion micro-transactions by 2005. However, the lack of virtual cash solutions hinders consumption of these items. A simplified virtual cash solution encourages impulse buying to capture this huge revenue opportunity.
Teenagers are the most tech-savvy market segment due to their early introduction to the Internet.
However, teens need a virtual cash solution to execute this tremendous purchase power, since teens under 18 do not have access to their own credit cards. Content providers, digital goods vendors, ISPs, telcos, retail banks and issuers, among others, can play the role of a Virtual Cash Issuer. Micropayments, teen spending and other Internet activities present huge revenue opportunities. By implementing effective virtual cash solutions, Issuers can now convert these opportunities into real revenue. With its broad understanding of the issues at stake in virtual cash, GlobeID can assist Issuers to develop and implement the virtual cash solution that best suits their specific needs.