Solving the Micropayment Problem: Online and at the POS

Table of Contents

• Micropayments Defined
• Why Micropayments Matter
• Capitalizing on the Shift
• Managing the Margin
  • Changing the Rails for Micropayments
• Micropayments in the Digital World
• Micropayments at the POS
• In the Market
  • R.I.P. BitPass
  • Peppercoin Acquired by Chockstone
  • Chockstone
  • BSG Clearing Solutions
  • ClickandBuy
  • PaymentOne
  • PayPal
• Conclusion
  • The Irony is Micropayments Work at the POS Better than Online
  • Micropayments from the Majors
  • It' s Not Micropayments, It' s Alternate Payment Services
  • Are Micropayments Solved?

• Figure 1: The Shift from Paper to Plastic and Electronic Will Not Stop
• Figure 2: Interchange and Transaction Charges Consume Unacceptable Margin
• Figure 3: Ad support has taken over most low value micropayments
• Figure 4: POS Micropayment Segments are a $175 B Market
• Figure 5: POS Micropayment Markets Have Been Addressed by New Association Interchange Rates
• Figure 6: PayPal continues the growth of its payment revenue and volume
• Figure 7: Micropayment Payment Vehicles are Becoming Alternate Payment Services

• Table 1: Card Association and PayPal Rate Chart for Qualifying Low Value Transactions
• Table 2: Micropayment Business Models