Throughout the course of your time spent on the internet and your smartphone you may already have made a micropayment. But what is it, and why should you pay attention to this burgeoning online payment method?
What is Micropayment?
In the simplest terms, a micropayment is a payment that’s done to access a product or service on the internet.
Micropayments are termed as such because they usually cost less than a dollar. However, it’s such a useful method of payment since it unlocks a whole new level of transactions and doesn’t require the buyer to spend more than what they would prefer on a ‘small’ product, such as a song, an app or an ebook, for example.
This kind of process unlocks consumers’ ability to make a small purchase without having to meet a minimum amount. This also benefits the merchant as they can get more sales and not have to force the buyer to spend more than what they want.
Explaining the Micropayment Model
Micropayments are set in a system that involves both the business and the buyer. It’s worthy to note that credit cards do not have this system as they have their own.
In a micropayment model, both buyer and seller establish a presence, usually an account on the platform. A service provider mediates the process and ensures that the right micropayment goes to the right account.
Another example is cashing out via a telecom billing service, such as the one 소액결제현금화 has. Here, cash is exchanged for gift certificates for a certain brand or company.
Micropayment unlocks more choices and gives those who want a trouble-free way to buy a single ebook or subscription that costs less than a dollar or so. It adds to the business revenue so they can operate, grow and provide service to their consumers or audience.