Electronic Micropayments: Market Development, Issues, and the Potential Impact on

Electronic Micropayments: Market Development, Issues, and the Potential Impact on FSIs

Published Date: July 2004

Published By: TowerGroup

Page Count: 12

Order Code: R301-1105

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This TowerGroup Research Note examines the evolving markets for Internet, mobile, and point-ofsale (POS) electronic micropayments. The Note presents the factors and opportunities that financial services institutions (FSIs) should consider with regard to extending their existing product structures to better support micropayments. It reviews the transaction types that are emerging, considers the competition presented to per-use payments by lower-value subscriptions, and outlines the potential and risks inherent in taking services multichannel. Finally, the Note discusses why the youth and young adult markets, technology adopters under the age of 24, will be key in the evolution of digital content services and the microtransaction structures that support them.

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