Micropayments are small payments made by consumers in exchange for a small product or service, proposed as an alternative to traditional subscription models. While initially popular during the dot com boom, they have yet to be widely implemented. However, with the introduction of RFID chips and SMS technology, micropayments are still being explored as a potential solution for quick and efficient transactions. Virtual wallets, such as Paypal, have also become popular for online auctions. In the future, micropayments could be used for short tasks performed by virtual temporary workers.
Micropayments are a payment system, mainly proposed for use on the Internet, whereby content or service providers accept small payments from consumers in exchange for a correspondingly small product. For example, an online magazine might charge 10 cents per page view. Or, an investment site may charge $10 for every 10 visits.
Micropayments were a hot topic during the first dot com boom, when startups looked for various ways to generate revenue on the Internet. Advertising can only go so far. In an effort to avoid the old subscription model where the customer makes a substantial commitment to a large service or product, micropayments have been proposed. The idea was initially hailed as ideal for the high-speed, short attention span world of the Internet, but has yet to be widely implemented.
However, the idea of micropayments is not necessarily dead. It is implemented by several companies on the Internet. Furthermore, with the introduction of RFID chips on credit cards, customers can be charged quickly and efficiently for various goods and services. Sometimes these goods and services can be so quick and small as to justify the use of micropayments.
Another emerging form of micropayments is in a system that allows people to exchange money using text messaging (SMS) technology. The World Wide Web Consortium has also developed a set of standards for websites that include micropayment systems and corresponding virtual wallets. Virtual wallets have become very popular in the early 21st century, with services like Paypal allowing buyers to participate in online auctions conveniently and securely.
In a future world full of teleworking and outsourcing, micropayments seem like an interesting solution. “Virtual temporary workers” could perform short tasks for employers in need in exchange for micropayments. This would take the flexibility of modern employment models to another level, giving growing businesses more options.
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