Micro-payments are digital payments that are typically considered to be small, often less than one dollar. They can be used as an alternative to traditional payment methods and can be integrated into various online digital payment infrastructures, such as mobile apps, websites and games.
Micro-payments are attractive to businesses because they enable them to charge their customers for small items or services without having to incur the cost of larger payments. They also make it easier for customers to purchase such items without the hassle of having to go through a full checkout process for each individual item.
Because micro-payments are so small, merchants often use them as a way to capture smaller incremental sales without increasing the cost for the customer. This practice is known as micropayment pricing, and it’s becoming increasingly popular with businesses who want to retain customers by making small purchases more accessible.
The concept of micro-payments is particularly appealing to customers who may not have the funds to pay for larger purchases. Because the transactions are smaller, customers can more easily purchase items without having to use their credit cards. This makes micro-payments a good option for those who may have limited access to traditional payment methods.
In addition to helping merchants and customers, micro-payments also benefit businesses who provide specialized services, such as digital content providers or app stores. These businesses can use micro-payments to access more customers who would otherwise not be able to afford their services.