Abstract
M.Com. (Informatics)
This research has the aim of creating a low-cost, contactless, micro-payment framework to
support micro-payments for the informal taxi industry in South Africa. The informal taxi industry
is a prime example of an industry that needs simple and effective payments for low-cost
services where the primary medium of payment is currently cash. Challenges of currently used
are the security of cash, the difficulty for the taxi driver to collect cash,
and the auditability of cash from the perspective of the taxi owner. Furthermore, the taxi owner
does not know the routes the taxi travels or the petrol that is used by the taxi.
Micro-payment transaction volumes are rapidly increasing due to consumer need for simple and
effective payments for low-cost items and services. Micro-payment technologies are rapidly
growing in popularity and demand, prompting the need for financial institutions to consider
investment in the technology. Contactless technology, specifically near-field communication
(NFC), is contributing to the exponential growth of micro-payments. Increasingly, consumers are
not required to enter security information in order to perform transactions. By bringing a
compatible card within range of a suitable reader, a transaction takes place with immediate
effect, with little or no involvement from payment providers and financial institutions.
Complementary wireless technologies such as GPS enable a multitude of applications by
offering positional and speed information. Combining GPS technology with NFC enables
contactless positional payment information to be accessible, to present a unique micro-payment
concept.
This dissertation presents M-Thinta, a low-cost contactless micro-payment model. The M-Thinta
prototype demonstrates the real-world operation of the M-Thinta model. The prototype
demonstrates that it is possible to create a functional low-cost, contactless micro-payment
platform by combining a number of standard low-cost components.