Many Internet companies have based their business on advertising, but more and more are deciding to reduce such advertising and try to generate income directly, turning money into a fundamental aspect of internet browsing. This has led to many consumers decide to use micropayment platforms in order to obtain the content they want They have to pay small amounts of money.
What really is a micropayment?
This action of paying (which often does not even reach the euro) is called micropayments, and they are transactions so small that if they were traditionally charged to the credit card they would lose all profit due to the associated transaction fees. The need for new payment platforms has led to the generation of multiple innovative micropayment strategies that aim to reduce these transaction fees, making these small transfers profitable.
Among those responsible for giving a boost to the micropayment system three actors stand out above the rest:
- The growth of digital content such as music and videos. There are more and more microtransactions that are made in places like iTunes to be able to buy songs.
- The mobile app usage growth (and their corresponding in-app stores). The number of free applications that provide improvements for a small amount of money and, above all, paid applications that cost even less than one euro is increasing.
- The growth of online games (which have their own microeconomy with the sale of “in-game” products, virtual currencies, etc…). games like candy crush and the like generate a huge amount of microtransactions to obtain improvements and resources in said games.
The business model of microtransactions is based, above all, on generating a large volume of sales, which converts the tiny benefit of each micropayment into a huge benefit. For example, the game Candy Crush generates about 1,300 million dollars a year in micropayments that rarely exceed €2.
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