- Volume 13 Issue 2
This research investigates the rising new role of mileage system as private e-money in a exploratory study. The key research questions are "How does mileage system evolve with expansion of e-business and what are the cases for real experiences in 'money-like' mileage and their implications?" This research focuses on the proposition that mileage points created in commercial transactions as a royalty program are observed to serve a new role as payment tool. In an attempt to identify factors that determine mileage system as private money, we employ three factors: confidence, transaction cost, and monetary freedom. Also, this research proposes a direction for further research and follow-up studies to establish legal and institutional issues and the relevant architecture, all of which are essential elements to make the mileage points global money with a certain trade ratio in the near future.
Private electronic money;Mileage;Information technology;e-Business