Conundrum for Micropayment Vendors

A nice story: Micropayment ventures are right to say the time has come for micropayments. Whether the time has come for micropayment processors is another matter.

“In the short to mid-term, selling to large merchants might prove very tough. Since building micro-payment processing software is a no-brainer for a large merchant, the big guys are likely to stick for a while to homegrown micro-payment mechanisms (as Apple has done). Also, a major distributor with a huge catalogue is in no hurry to leverage the network effect created by a unique payment mechanism spanning multiple merchants. Finally, merchants are likely to continue encouraging subscriptions.”

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