Comments: Penny Payment Systems

Hope, they won't ban Canada's Interac payment, because that's my exclusive preference on eBay. It's run by a consortium comprising all Canadian banks and some major Credit Unions, and allows fund transfers with knowing only the email address of the recipient (the security is provided by a passphrase that needs to be transfered separately trough a reasonably secure channel). An interesting low-tech model, recently adapted by @mail.ru for the payment system they launched earlier this week.

Posted by Daniel A. Nagy at October 20, 2005 06:23 AM

Creating a micropayments system that has enough features to challenge paypal is one thing and getting the number of countries on board is yet another. Paypal accepts payments from more than 50 countries (remember the US only represents a fraction of all the money in the world). Even with its market cap, google stands to spend a lot of money on such a system long before it will ever turn a profit. Then again, all paypal has to do is lower its already low transaction rates to make it nearly impossible for google to compete pound for pound yet still turn a profit. As big as google is you can't be masters of every domain. It should stick with what it is good at rather than throw good money after very risky ventures such as taking on the already crowded micropayments marketplace.

Posted by Bruce Bahlmann at November 2, 2005 12:57 PM
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