Micropayments

The most compelling point about micropayments that Neilsen makes in his 1998 article is that they offer a more flexible market of options for internet users. Rather than the all-or-nothing approach so common to the subscription model on the internet, micropayments offer an opportunity to selectively choose meaningful content and access that content without breaking the bank.

Some online media, such as the NY Times, provide a significant amount of free content to registered visitors to the site. Faced with a user population that has "grown up" with free NY Times Online content, it would be very difficult to transition to a subscription model, despite the fact that subscriptions have been the primary method to access NY Times content in print format for ages. Micropayments provide an avenue to generate some revenue from selected content without placing huge burden on the user's wallet.

With micropayments, some of the same cultural transition issues remain. However, the decision to spend 50 cents for a specific article or issue is generally easier than the decision to spend $50 dollars for a set period of unlimited access when you cannot possibly be sure what, if any, content will be put forward that is worth paying for.

I think micropayments have a lot of merit in providing more flexibility and choices in the way content is purchased. This is particularly true if purchases are made easy, and without forcing the user to fumble for his/her credit card. The micropayment model, frankly, tracks a lot closer to the behavioral patterns and culture of the internet than the stodgy subscription model. It may be a boon for blogs, too, if those blogs generating quality content can figure out a way to harness micropayments to pay their bills.