micropayment

Micropayment is a financial transaction involving a very small monetary value, typically ranging from a few cents to a few dollars, used to pay for digital goods and services. The goal is to enable pay-per-use access where the value of each item is too small to justify a traditional payment method, such as single articles, music clips, software features, or API calls.

The concept has roots in early experiments with digital cash and microtransaction networks from the 1990s, which sought low-cost, verifiable payments for online content. Widespread adoption has been uneven due to high per-transaction fees, processing delays, fraud concerns, and user friction. In the mobile era, operator billing and third-party micropayment platforms provided more convenient paths for small charges on smartphones, though availability and terms vary by region and provider.

Technologies and models for micropayments include direct card-based payments with low-value pricing, dedicated micropayment networks that bundle or amortize costs, and digital currencies or blockchain-based solutions aimed at reducing settlement expenses. Payment schemes may rely on per-item access, prepaid credits, or tipping systems, and can be implemented as stand-alone payments or as part of broader monetization frameworks.

Applications and status: Micropayments are used for paywalls on news sites, music and video samples, software features, API usage, and in-app purchases smaller than typical app prices. In many cases, broader monetization strategies—such as subscriptions, advertising, or bundles—have diminished the appeal of standalone micropayment systems, though they continue to see use in niche contexts and certain platforms.

See also: digital cash, microtransaction, paywall, in-app purchase.