What are Micropayments?

Jamie Roberts

Jamie has covered the Internet of things since the late 1990s. Having experienced the first dot com boom and bust, he knows the value of lean operations, and making smart business choices.

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Jamie Roberts2020-10-30T13:04:14+00:00Published: April 7th, 2013|

Micropayments are financial transactions that involve a very small sum of money. PayPal defines a micropayment as anything less than USD 12, whereas Visa classifies anything less than USD 20 as a micropayment.

Traditionally it has been difficult, financially, to recoup the costs involved in processing micropayments.

With SMS billing, however, micropayments are becoming more the norm and more and more companies and sites are accepting them.

All SMS payment systems are geared up to accept and process micropayments. You will need to visit each provider to see if they offer a price point at the level you wish to charge.

Virtual Micropayments

A growth area in micropayments has been using them to purchase virtual items or currency in online virtual reality games.

Many SMS payment providers deal exclusively with companies who only sell virtual products. If this is something your company is interested in, you need to compare SMS payment solutions to find the best one to meet your needs.

Jamie Roberts

Jamie has covered the Internet of things since the late 1990s. Having experienced the first dot com boom and bust, he knows the value of lean operations, and making smart business choices.