Financial Insights Evaluates New Micropayment Model

FRAMINGHAM, MA – APRIL 8, 2003 – A new study by leading independent research and advisory firm Financial Insights evaluates a new micropayment model called random settlement and provides investment strategy advice to financial institutions. In addition, the report places random settlement in the context of previous micropayment models, showing how it compares with approaches that have been tried in the past.


“Like smart cards, micropayments are a technology that has been tried without success for many years,” says Aaron McPherson, research manager for Financial Insights' Payment Research Service. “However, as online music and mobile data services grow, it is time to take a second look at the concept, and in particular at random settlement, which has a unique ability to balance risk between buyer and seller.”

The report, titled “From the Fringe: A New Model for Micropayments,” analyzes the strengths and weaknesses of random settlement in detail, providing specific milestones that financial institutions should look for before they consider making new investments.

For more information on obtaining this report, please contact:

About Financial Insights, an IDC Company

Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management. The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit for more information.

IDC is a division of IDG, the world’s leading IT media, research, and exposition company.