Are Micropayments a Viable Business Model?
Cointelegraph speaks to experts from Safe Cash Payment Technologies, Inc, Bitfortip.com, SatoshiPay.io, PopChest.com and Fuzo to learn their views on micropayments.
Nicholas Negroponte, head of the MIT Media Laboratory, predicted in 1998 that we were going to see, within the next year, an extraordinary movement in the web of systems for micropayments. Nowadays, Andreas Antonopoulos is still trying to raise awareness among people about the possibilities offered by the micropayment system.
Walter Isaacson, CEO at Aspen Institute, writes:
“A flourishing digital economy based on easy payments might also encourage the invention of new forms of media: collaboratively created role-playing games, interactive online plays and novels, and new ways to combine art and music and narrative.”
Chris Kitze, CEO at Safe Cash Payment Technologies, Inc, thinks that micropayments may be a viable business model as consumer behavior has changed. The existing credit card rails can only be used for funding a stored value account that is debited in tiny amounts, while the blockchain can do this quite easily.
Micropayment offers possibilities for content producers
According to Panagiotis Pollis, founder of Bitfortip.com, micropayments were first conceived in discussions in the mid 90's. Several companies were very interested on the idea, and they even began to develop platforms for them. But back then, the suspensory factor was the cost of handling such transactions as they were too low, and that wasn't profitable for the financial institutions.
Pollis continues by saying that there is also an old Stanford paper that says that after research regarding the safety of the transactions, complications with a variety of different software (download, authenticating users etc.) and the concern of user an