Micropayments were largely thought to be unsustainable before, but the rise of consumer accessibility and micro consumption of content, resources and digital products have made it relevant again. For app developers, having a micropayment system in place can mean greater profits and audience reach, among other benefits.
What is Micropayment?
Micropayments are payments made of small sums, usually less than a dollar or so. It is a very popular mode of payment on the internet and within app stores.
The term ‘micro payment’ is defined by the platform or system that carries it, and although it can be as little as a dollar it can be as big as $20 as well. As far as application is concerned, micropayment can facilitate rapid transfer of digital goods and services- people can use it for online tipping, in-game purchases, royalties and unlocking paywalled content, among others.
Micro payment and its subsequent system is beneficial for both the brand and consumer in many ways. Instead of forcing the user to subscribe to a payment plan or pay more than what’s needed, they can just put in the exact amount and get the digital goods or content without delay with a good micropayment system in place.
How Do Micropayment Systems Work?
Micropayment processes rely on FinTech, or financial technology, which in itself unlocks the ability for consumers to purchase products at a negligible price. With these platforms in place, it’s now easy to purchase a digital item with the exact same offered price. It’s more accommodating compared to credit card companies as the transaction fees alone will have made the practice unsustainable.
Micropayment worked as intended and as envisioned by Ted Nelson in the 60s. Primarily, it was supposed to fuel paying for online content copyright, but quickly blossomed to cover nearly any digital content, such as videos, articles, music and art, just to name a few.
Micropayment systems began to flourish as more and more apps and games entered mobile app stores. Now, they’re integrated into apps, websites and online marketplaces, among others.
Micropayment System Integration in Apps
App developers will want to work a micropayment system in their creations to entice and improve user experience.
A micropayment system takes care of micropayment processes and gives greater purchase flexibility and revenue. Contact the Centi team to learn more about the micropayment system.
Virtually any app can use a micropayment system to service both the consumer and business end. Convenience is the first reason why you should integrate micro payments in your app- you give consumers a choice to make a purchase, a donation or unlock content or video right then and there, and without having to go out of the platform to do so.
More payment options means you meet your target audience halfway. Most people can’t be bothered paying $5 to access or get a digital product or item that costs $1. Instead of going through credit cards you give them another way to stretch their dollar.
In-app purchases such as limited edition virtual items and in-game currency are common examples of micropayment applications. App developers can choose to adopt a digital wallet, a prepaid system or the ones you see in App Store and PayPal. As for the amount, you can set the ‘micro’ definition and gain the ability to put it at 99 cents or even lower where it wasn’t possible (or viable) before.
Micropayment systems extend to newer technology such as cryptocurrency and Blockchain, and traditional processes such as investment portfolios and others. Even mobile games can benefit from them in the form of paywalls and enticing product offers, deals and bonuses.