BitPass: Micropayment That Seems To Work

Omega1045 writes "I have been following the story of BitPass for some time now. The micropayment solution provider has been featured on Slashdot before. That article focused on Scott McCloud, and his comic The Right Number. Since that story, BitPass has added a number of sites using their service. From this netizen, it looks like the idea is really taking off. Some news sources (NJ.com, SiliconValley.com) have noticed how this micropayment trend has progressed to include well known services like iTunes. I really like the idea of the artist getting a fair cut of the profits at BitPass."

Not cheap, very high cost per sale.

[DAldredge]

"For items priced $0.01-$5.00, the transaction fee is 15%."

15%! Are they crazy?

This is not new!

[DeathBunnyRanger]

Company called Bee-Tokens.com has been a micropayment provider for over 3 years. they payout 80%, I don't know how bitpay can do 15% commission. chargebacks are a bitch, and credit companies want something like 5% on all non tangleable internet transactions, including server uptime etc. oh well, I have been using Bee-Tokens for a while, works for my photographs.

Where's Visa?

[kognate]

What I don't understand is how these companies can even exist? The credit card industry (in the US anyway) has been building itself up for years and years.

What I'm trying to ask is a two part question

1) These services are going to have to go through the same growth problems all new financial services go through. Not all new financial servers are viable economically, and it's possible that micropayments are not viable.

2) Why doesn't AMEX or Visa offer some sort of micropayment system? They've already got the basics for one right now: it's pervasive, easy to use, familer, and cost effective for many transactions. You just add an aggregator account for micropayments along with a dab of crypto and there you go: instant micropayments.[1]

-jbs

[1] the aggregator account would work like a till. Each micropayment get's tagged and signed by the payee's pubkey. At the end of the month, everybody get's paid and billed, just like they do now. The user can manage their micropayment wallet by adding/removing cash/credit (that way you can't just rob someone blind). The merchent get's the % taken out of the total of the aggregated account for processing fees. You could even use this on vending machines, cardswipe+pin and the charges get aggregated daily instead of monthly (all cryptocash emptied from this machine daily).

Pay what it's worth

[CGP314]

What about the 'pay what you think it's worth' model. That's what I use on my London Blog [colingregorypalmer.net]. If people like my writing and want to help pay my school bills then they can drop a pound or two. This way everyone is happy, those who want free content can get it, and every once in a while I get some support from the people who enjoy my work the most.

Re:Pay what it's worth

[CGP314]

On the other hand, I wish I could pay $50 to shut down each self-indulgent, long-winded "blog" operated by a man that expects to be paid for his "efforts."

But I don't expect to be paid... that's the whole point. I put up my blog [colingregorypalmer.net] because I like doing it, and if someone wants to give me some money for my efforts, then I'm happy to take it. : )

Re:Credit cards...

[mandalayx]

I'm seventeen. I wouldn't mind paying for stuff if its good, but there's always one thing I run into that I can't do anything about. I'm underaged, so I can't get a credit card. Internet payments would be its only use, so getting one to the family wouldn't be meaningful either. And when I become a poor student, no bank in their right mind will want to give me one either. Nor am I sure I want to even get one, with the trail it leaves behind.

Actually, it's really easy to get a VISA. You can get a checking account from Washington Mutual and have a card with VSIA on it for free. All of my transactions are free--it's beautiful. And I've had it since before I was 18.

And you'd be surprised how EAGER CC companies are to get you a credit card in college. I guess the idea that parents will probably bail you out prevails in their head. Seriously, I walk to school and mastercard and visa are competing trying to give me freebies to sign up for their cards.