Phosphorus and Lime
A Developer's Broadsheet
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Monday, August 27, 2007
New York Times on Micropayments
Micropayments – currency in general – has always been a fascination of mine. The New York Times has a brief report this morning on the state of online micropayments:
In Online World, Pocket Change Is Not Easily Spent
From the article:
In Online World, Pocket Change Is Not Easily Spent
From the article:
But the problems proved insurmountable. Many micropayments companies have shut down, been acquired or changed their business models over the years. Among them: DigiCash, CyberCash, First Virtual Holdings and Peppercoin.
They used various systems, but in general users paid into accounts with their credit cards and then drew from those accounts. In the mid- to late ’90s, electronic cash had become such a popular concept that some politicians worried that it might threaten the stability of the nation’s currency.
But the economic and technical challenges were enormous. Consumers were reluctant to pay even a tenth of a cent for something they believed should be free. “There is a certain amount of anxiety involved in any decision to buy, no matter how small,” Mr. Shirky wrote in 2000.
They used various systems, but in general users paid into accounts with their credit cards and then drew from those accounts. In the mid- to late ’90s, electronic cash had become such a popular concept that some politicians worried that it might threaten the stability of the nation’s currency.
But the economic and technical challenges were enormous. Consumers were reluctant to pay even a tenth of a cent for something they believed should be free. “There is a certain amount of anxiety involved in any decision to buy, no matter how small,” Mr. Shirky wrote in 2000.
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