Economy: Micropayments

WILL MICROPAYMENTS TAKE OFF?

For years, developers and investors have tried to create a system to collect micropayments [Wikipedia] for online goods or services. Web businesses have been stuck between free/subsidized, and about $1-$5, since the charges for credit card processing don’t usually justify payment processing for items less than $5.

This has led to advertising as being the only viable web model for businesses that might rely on micropayments. Following a 15% growth in $11 billion in the first half of 2008, Web advertising is taking a hit from its exponential web growth with the economic downturn, as reflected in the PubMatic Ad Price Index.

A NEW REVENUE OPTION FOR WEB BUSINESSES

(more…)