IDEAS home Printed from https://ideas.repec.org/a/aza/jpss00/y2007v1i2p156-180.html
   My bibliography  Save this article

What makes for successful micropayments products and business models?

Author

Listed:
  • Mcgrath, James

Abstract

Small payments of less than US$5 have resisted the wave of electronification that has swept consumer payments in recent years. A number of innovations (both new technologies and new ways of doing business), however, have done much to make such electronic 'micropayments' less expensive and more convenient. Now, having proved themselves in several online markets, micropayments are poised to make inroads at the physical point of sale. This paper looks at some of the success stories (and failures), both in the US and abroad, to identify possible conditions for success and to gauge the outlook for the future. It finds that industry structure, the coordination of standards, and customer preferences and experiences have all influenced the development of these products. While different markets around the world have supported different types of solutions, the successful products have delivered clear utility to the consumer, along with compelling economics for the different parties in the value chain. With critical mass in sight, the future looks promising.

Suggested Citation

  • Mcgrath, James, 2007. "What makes for successful micropayments products and business models?," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 1(2), pages 156-180, January.
    • Handle: RePEc:aza:jpss00:y:2007:v:1:i:2:p:156-180
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/4509/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/4509/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    micropayments; payment method adoption; contactless payments; small payments aggregation; cash replacement;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jpss00:y:2007:v:1:i:2:p:156-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.