Comments on: Micropayments http://www.webword.com/wp/2004/06/28/micropayments/ The usability blog of John S. Rhodes Sat, 06 Sep 2008 16:28:27 +0000 http://wordpress.org/?v=2.0.3 by: JoshuaKaufman http://www.webword.com/wp/2004/06/28/micropayments/#comment-5534 Tue, 30 Nov 1999 00:00:00 +0000 http://www.webword.com/wp/2004/06/28/micropayments/#comment-5534 I imagine the credit cards you mentioned aren't in the micropayments game because it's too big of a risk right now. Are people screaming for micropayments? No. Can credit cards make a lot of money from it? No. (What's the late payment on $2.00 worth of micropayments?) For now, I think it's smart of them to stick to their core brand of giving people credit for big purchases, not micro ones. I imagine the credit cards you mentioned aren’t in the micropayments game because it’s too big of a risk right now. Are people screaming for micropayments? No. Can credit cards make a lot of money from it? No. (What’s the late payment on $2.00 worth of micropayments?) For now, I think it’s smart of them to stick to their core brand of giving people credit for big purchases, not micro ones.

]]> by: JB http://www.webword.com/wp/2004/06/28/micropayments/#comment-5535 Tue, 30 Nov 1999 00:00:00 +0000 http://www.webword.com/wp/2004/06/28/micropayments/#comment-5535 All the card companies have been in this space before....electronic cash, VisaCash and Mondex (from MasterCard) ....there is no business case for the payment schemes to push.<br /> <br /> The banks don't want it...as they would be the ones that would have to sell and manage the system.<br /> <br /> Also, if I can pay 0.99 for a song on iTunes with my credit card, the leap to 0.25 is not that big. Give me something compelling and I would be all over it.<br /> All the card companies have been in this space before….electronic cash, VisaCash and Mondex (from MasterCard) ….there is no business case for the payment schemes to push.

The banks don’t want it…as they would be the ones that would have to sell and manage the system.

Also, if I can pay 0.99 for a song on iTunes with my credit card, the leap to 0.25 is not that big. Give me something compelling and I would be all over it.

]]> by: mcw http://www.webword.com/wp/2004/06/28/micropayments/#comment-5536 Tue, 30 Nov 1999 00:00:00 +0000 http://www.webword.com/wp/2004/06/28/micropayments/#comment-5536 Why don't credit card companies support micropayments? Their return on the transaction is minimal. Cost to process a transaction is roughly the same at $25.00, $250.00, or $0.25. Revenue to the credit card company is usually a percent or two, so at sub $1.00 amounts it's not very interesting for them. They would want/need too big a cut of the action. Why don’t credit card companies support micropayments? Their return on the transaction is minimal. Cost to process a transaction is roughly the same at $25.00, $250.00, or $0.25. Revenue to the credit card company is usually a percent or two, so at sub $1.00 amounts it’s not very interesting for them. They would want/need too big a cut of the action.

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