Thad Rueter

Consumers who bank or initiate retail purchases online already can secure those transactions through a variety of means, including passwords used only for the Web, card readers that plug into personal computers or challenge-response procedures that can include images they preselect.

A number of factors have hampered growth in such transactions, generally described as those worth less than $10. The cost to merchants of accepting electronic payments led them to discourage customers from using credit or debit cards for small transactions, often by imposing minimum transaction amounts in violation of card network rules.

More companies are looking to expand their services to capture small-value electronic payments gaining in popularity among online gamers. In some cases, the use of payment cards is not an option.

In one of the most recent signs of the spread of so-called micropayments, U.S.-based start-up Boku Inc. late last year began enabling consumers in Estonia and Venezuela to pay for digital goods using mobile-phone accounts. A consumer who wants to buy virtual currency to acquire extra “lives” or goods useful in online video games, for example, would, after registering, make the purchase through the game provider’s Web site. The consumer would confirm the purchase through a text message, and the charge would appear on the consumer’s mobile phone bill, eliminating the need to use a payment card.

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The start-up technology vendor Zenius Solutions Inc. has developed a way to add contactless payment capabilities to smart phones that links the transaction functions to the mobile devices' operating systems.

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Mobile payment systems have become an important financial tool in the developing world, but experts say network operators need to offer more than just person-to-person transfer features to create a compelling business case.

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Total System Services has launched a smart-phone application designed for merchants who do not work in offices and stores, and who accept relatively low volumes of transactions.

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European payments executives are developing at least three networks that would compete with the systems operated by Visa Europe and MasterCard Inc. The Belgian retailer Colruyt Group is planning to begin testing the Payfair debit card at about five stores in October, with a broader rollout expected in 2010.

A cup of coffee here, a hamburger there, a fill-up at the gasoline station on the way to work. Customers are starting to use their contactless payment cards at convenience stores, fast-food restaurants and supermarkets throughout the United States.