Home | TrendTracker | PowerBlog Reviews | The Experts | Newsletter
ABOUT
SMALL BUSINESS TRENDS brings you daily updates on trends that influence the global small business market.
Anita Campbell, Editor
Past life: CEO, corporate executive, tech entrepreneur, retailer, general counsel, marketer, HR ... (more)
email me
free business magazines
FREE BUSINESS MAGAZINES
Trade publications FREE to qualified professionals. No hidden offers and no purchase necessary.
On Wall Street
The Deal
Computing Canada
CIO
Employee Benefit
Oracle Magazine
100+ additional titles. Click to browse.
ARCHIVES & SEARCH
Previous Small Business Trends articles can be found at the links below:
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
Or, use the search box below to find a
specific post:


NEWSLETTER
Sign up for our FREE Small Business Trends newsletter. (View Current)

We publish regularly and promise we won't share your email address with anyone. (Privacy Policy)
SMALL BIZ INFO & RESOURCES
BLOGS TO READ DAILY*
* Don’t have time to read several dozen blogs a day? Pick two or three. Your brain will thank you for it.
ONLINE COMMUNITIES
BLOG DIRECTORIES
THE BUZZ

SPECIAL RESOURCES
Small Business Trends Radio
Tuesdays, 1:00 PM Eastern U.S. time
on Voice America network
Click to listen

November 1st: Torsten Jacobi, CEO of Creative Weblogging, joins host Anita Campbell. Sponsored by Six Disciplines. Show details.
Tuesday, January 27, 2004
BitPass Micropayments User Survey
This post is a slight departure from our usual format here at Small Business Trends. I’m taking a few moments to describe our experience using the BitPass micropayments system.

From time to time we post photographs on this site to relieve some of the visual monotony that comes from having so many words on a page. Most of the images come from istockphoto.com. They were purchased using a BitPass micropayments account.

Our survey sample is admittedly tiny -- one person, me. But I can report that using BitPass on 8 or 10 different occasions, the experience has been uniformly positive each time.
  • BitPass is a Web-based system, so all I need is a browser -- no software to download. The BitPass user interface is streamlined. Screens don't get much simpler to use.


  • Setting up my account initially was quick and easy. Just the bare minimum of information is requested. I was not required to provide age, gender, household income, hobbies, mother's maiden name, or even number of pets.


  • The way micropayments work is that you purchase credits for your account (similar to buying a gift card). That process was very easy, too. I was given several ways to pay, including PayPal and credit cards such as Visa and Mastercard. I chose PayPal, and the interfaces with the PayPal system worked without a glitch. My initial $3 (USD) was transferred from my bank account to my BitPass account instantly.


  • Once I had a few dollars in my account, I went shopping. Off to istockphoto.com, where I downloaded photographs for $1(USD) each. Here again, using BitPass was fast and easy.
As a user, I saw only two issues: First, photographs are twice as expensive using BitPass versus istockphoto.com's own in-house version of micropayments ($1 versus $.50). Somehow BitPass is going to have to close that price gap. Second, outside of stock photographs, today there is very little content I would want to purchase using micropayments. Until there are more vendors offering desirable content who accept BitPass, usage will be limited.


All signs suggest the market might be ready for micropayments to take off. The last time around, before the Internet bubble burst, micropayments never got much traction. Most of the original micropayments providers went under. But we are now in a different era, with paid Internet content gaining greater acceptance and music download services going mainstream and creating demand for micropayments.

That said, a major issue looming on the horizon for BitPass and other micropayments providers is competition from PayPal. A representative of PayPal has said "we think the stars are coming into alignment" on micropayments. PayPal recently kicked off its own micropayments rate. Backed by its parent, eBay, a cash-rich and well-run powerhouse of a company, PayPal could be a formidable competitor.


More news... more trends... more insight...

Home | Privacy | Terms | SmallBizTrends
(c) Copyright 2003 - 2005, Small Business Trends LLC. All rights reserved.