File Under: Glossary

Micropayments

Another elusive Holy Grail of online business, micropayments let content providers charge very small fees (some fraction of a penny, say) for access to a site or other electronic information. The aggregated payments are then deducted from a user’s ecash account or credit card, making the experience highly fluid. However, unless you rack up a lot of micropayments, the cost of processing each transaction is far greater than the revenue gained. On top of that, your users have to be willing to set up an ecash account.