Fog Creek Software
Discussion Board




Micropayment

Any success with implementing/using Micropayments on your site?

Aryeh
Sunday, May 30, 2004

I should thank any comments, of course... :)

Aryeh
Sunday, May 30, 2004

I would not pay to website unless it was giving me smut. Sorry :)

Junichiro Kawaguchi
Monday, May 31, 2004

Jakob Nielsen, in his essay 'The Case for Micropayments' writes, "I predict that most sites that are not financed through product sales will move to
micropayments in less than two years."

Nicholas Negroponte say: "You're going to see within the next year an extraordinary movement on the Web of systems for micropayment ... ."  He goes on
to predict micropayment revenues in the Billions of dollars. 

Both of these predictions were made in 1998.

Chen-li Fan
Monday, May 31, 2004

The "traditional" micro-payment approach (i.e. fancy encryption, fancy protocols, wallets, etc we have all seen for years) won't work because it is just too damn cumbersome for the customers to pay.

The whole micro-payment word and idea has been largely tainted because of that unrealistically "theoretical" approach.

What DOES work is to make it easy for the end-user to pay for content and services in meaningful "magazine-size" servings ($2-$10). Make the decision to buy as easy as picking up an interesting magazine from the shop shelf.

Paying must be especially easy for first-time customers, which means about everybody at this time of internet evolution.

Also, your real goal is making money. If your end-user price is $5, it is much better to get 100.000 times easy-to-pay $4 for yourself than 0 times hard-to-pay $5, if that's what the available payment options happen to offer.

I work at a company who has been opffering internet payments with this approach for a few years now, and it does work, for both very small (individual), small and large (multinational companies) sellers.

In Europe (and generally in the GSM part of the world) one very workable and fun payment option is permium rate mobile phone text messages (SMS).

So, concentrate on your business instead of payment system theory, sell something people do want and make it super easy to buy it, and it will become a working business.

Hannu Aronsson
Wednesday, June 02, 2004

*  Recent Topics

*  Fog Creek Home