Contraview

PINned Down?

As simple, efficient, and fast as iPIN’s new transaction service purports to be, it faces an equally simple, albeit enormous challenge: convincing a sufficient number of buyers (ISP-enabled consumers) and sellers (online content merchants) to try it out to create a valid marketplace. “It won’t be easy for them,” says Kip Martin, ecommerce analyst with META Group. “Consumers have to want to use it first. Then ISPs have to want to get it set up. And obviously [content] merchants need to be there. If any one of those guys doesn’t come to the party, forget about it. It won’t work.”

Forrester Research senior analyst Paul Hagen thinks it will be a going-away party, anyway, if it ever comes about, sine he’s not convinced that iPIN-or anyone else launching an e-cash alternative to credit cards-can play an important role yet in the digital marketplace.

“I’ve kind of dismissed them,” Hagen says of iPIN, with whom he met early this year. “It’s an interesting idea, but I think it’s aimed at solving a problem I’m not convinced is necessarily there. I think you can solve the micropayment problem right now by rolling [transactions] into your credit card and trying to do it through some other mechanism.

For the majority of online buying, Hagen says, “the credit card is just fine.” And if you’re a content merchant considering micro-sales, “I’m not interested in customers if they’re only going to buy $5 a month from me. Those aren’t as interesting as those who are going to buy $15 or $25 a month.”

Another potential problem: how iPIN will offer the service to consumers from the work environment, where their employer serves as an ISP. “If you’re shopping from work, do you even know who your telecom provider is?” Hagen asks. “If I shop from work and then I go shop from home, am I going to get two bills?” For its part, iPIN says it’s part of its long-term strategy to pitch the service to large employers and telcos who provide Net access to businesses. So far, no takers.

Ordering long distance calling cards will help you keep under control your call fees wisely, profitably, and they’re extremely convenient.