Definition of Micropayment:
The definition or size of a micropayment differs across payment processors and businesses: some companies recognize all transactions below a dollar as micropayments, others classify micropayments as amounts below $5.00, below $10.00 (e.g. w/PayPal), or sometimes below $20.00.
Micropayments are transactions or payments of less than a dollar (and in some cases, are only a fraction of a cent) that are usually made online. Micropayments are seen as a way to leverage the internet to facilitate the online payment in real-time of digital rights, royalties, in-game purchases, online tipping, and even to coordinate devices connected via the internet of things (IoT).
Transaction in small amounts, costing a few cents to usually less than five dollars, typically involving sale of information on internet.
How to use Micropayment in a sentence?
- Micropayments have been touted as a way to better facilitate the immediate online distribution of royalties, gratuities, pay-per-click advertising, small freelance jobs, and cryptocurrency transactions, among others.
- Depending on the payments system, a "micropayment" may be defined as any transaction size less than $1.00, $5.00, or more.
- A micropayment is a small transaction, often carried out online, that can be as small as a fraction of a cent.
Meaning of Micropayment & Micropayment Definition