Over on our PaymentsViews.com blog in a post titled Aggregation and Aggravation - Micropayments 2013, Glenbrook's Russ Jones laments the lack of a solution to micropayments - saying it's a problem that's never been solved.
Why do micropayments endure as such a challenge in payments? The problem has been the same for many years – the challenge of absorbing fixed payments costs on a small value item. In interchange terms (1.9% plus $0.10), it’s not the 1.9% that’s the problem, its the $0.10.
Russ concludes by noting that "Twenty years into the Internet revolution, the micropayment challenge remains very real for sellers that are dealing in low-cost goods and services. The challenge (or perhaps the opportunity?) will likely increase as more and more of the economy shifts from physical goods to digital goods."