KDD Communications Offers EC System for Small Payments
June 2, 1999 (TOKYO) -- KDD Communications Inc. (KCOM) started offering on June
1 a charging system for Internet content using a service that can make a settlement of
a unit as low as 0.1 yen.
KCOM, an affiliate of KDD Co., Ltd., provides Internet connection services.
The company will target Internet content sales of 150 million yen for the initial year
and 1 billion yen in three years. (121.40 yen = US$1)
MilliCent, the new system, was developed by KCOM jointly with Compaq K.K., the
Japanese subsidiary of Compaq Computer Corp. of the United States. The system was
originally developed by the former Digital Equipment Corp., which Compaq Computer
purchased in 1997.
The system is designed for electronic-money transactions over the Internet expressed
in data called Scrip. It features an efficient settlement protocol. Because it can
complete settlements in a shorter response time than a credit card settlement system,
it can achieve higher sales by handling many transactions involving small amounts, a
KCOM official said.
KCOM is the world's first company to commercialize a service using a MilliCent-based
system for small transactions. According to a Compaq official, some tests of
MilliCent-based electronic commerce transactions have been made.
Under the new system offered by KCOM, software called MilliCent Wallet will be
installed in a user's client personal computer. The software will serve as a wallet to
hold Net Coins, electronic money exchanged over the network. When a user selects
pay content through a browser, the correct amount in Net Coins will be removed from
the wallet to pay for the content.
Users will be able to download the wallet software from the firm's home page for free.
The software also will be distributed via an Internet-related magazine in the form of a
supplement CD-ROM.
The company plans to distribute a total of 100,000 units of the software by the end of
the year. Net Coins will be downloaded from the same site. The downloading can be
made in the amount of 1,000 yen, and payment can be made with a credit card.
On June 1, KCOM unveiled MilliCent Islands, a site of 15 pay content providers.
Pay content to be provided through the site will include Q&A-style English lessons
provided by ALC Press Inc., an underwater and landscape photography site called
Aqua Production, and the online game site called Game Stage.
Providers seeking to sell pay content will be able to use a server prepared by KCOM
or construct their site using server construction software supplied free of charge by
KCOM. However, when they construct a site by themselves, they will need to pay
KCOM a commission equivalent to 10 percent of Net Coins they obtain. Also, they
will need to conclude a support agreement with KCOM to cash in or adjust Net Coins.
A contract commission will cost 10,000 yen and the monthly support fee is 2,000 yen.
In addition, MilliCent manages the price of each content service on a server and thus
will need software to register those prices. The software will be provided for free of
charge. However, when content providers register those prices on a disk in a server
provided by KCOM, they must pay a monthly fee of 8,500 yen.
The operating environment for the Wallet software is Windows 95/98/NT
Workstation, and Windows NT Server for the server construction software and the
software to register prices.
Related story: MilliCent Small E-Payment System to be Tested in Japan
(BizTech News Dept.)
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