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Micropayments
(e-Wallet)

What It Is and How It Works

Micropayments are used to process small transaction amounts (from a few cents to $10 USD) that would otherwise severely limit profit or even cost more than the actual product cost if processed the same as credit cards.

The processing of micropayments is a lot like the processing of credit cards. With the exception that the transaction costs for micropayments is substanstially less. Some micropayment companies add the charges to your Internet Service Provider (ISP) bill.

Micropayments acceptance has been around several years, but is still in its infancy. It'll be several years before micropayments will become a more widely used payment acceptance method. Right now many Internet users just aren't ready to spend a few cents or dollars to view content, download music, etc. Experts believe by 2005 micropayments will show up more on e-commerce enabled websites.

Who Needs This Solution?

This solution is good for Internet merchants who sell information (or other intangible goods) that cost between a few cents to a few dollars each. Some examples of goods that would be excellent for a micropayments solution:

• Music

• Pay-per-play games

• Newspapers, articles, reports, etc.

• Small computer programs

• Tickets and postcards

Related Articles

• The Siren Song of Internet Micropayments

• Micropayments, megaproblem

Micropayment Resources

These companies can help set you accept micropayments for your business:

• Peppercoin

• AllCharge

• Paystone Micropayment Solutions - Accept micropayments of $0.25 cents or more at an affordable price

• Pico-Pay

• eTelCharge - Adds charges to your phone bill

• eCoin- Token-based micropayments solution

Know of a good Micropayments processing provider? Let us know!