Emergic: Rajesh Jain's Blog

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Micropayments

February 4th, 2005 · No Comments

Forbes writes:

Online “micropayments” for items costing between $0.99 and $5 are becoming more common, with research firm Gartner projecting that micro-commerce could be a $60 billion market by 2015.

“It’s all about expanding the revenue potential of digital content,” says FIND/SVP analyst Sab Singh. “There are existing subscription and higher cost pay-per-use models, but we haven’t seen much a la carte until recently.” New technologies have made smaller transactions more cost effective for content providers and vendors, and as more and more content originates in digital formats, conversion costs are lower too. And, says Singh, “The $0.99 music download is an important part of this market.” Mainstream press coverage has boosted consumer awareness: 14 million Americans purchased digital content under $2 in the past year.

Tags: Emerging Technologies

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