What Does Micropayment Mean?
A micropayment is an e-commerce transaction-type with a low financial amount. Micropayments are typically used to purchase online products and services such as e-books, music and memberships.
Techopedia Explains Micropayment
By definition, most micropayment transactions are small with sales averaging $20 or less.
Most payment providers provide APIs at a seller’s website that redirect buyers to the provider’s website, where the buyer submits financial details for processing. These details, with the exception of the transaction fee, are then routed to the seller’s account.
The key benefit to this process is the payment provider’s ability to serve as a single secure payment contact for sellers and buyers. Sellers can provide multiple websites and/or products without the overhead of a merchant account, and buyers can pay many different sellers under one secure transaction umbrella. Easy and secure adaptability is at the core of e-commerce growth at the micro level.