February 1, 2014
Micro-payments’ is a term that identifies transactions of low value; however the exact definition varies considerably by audience. Definition of Micro-payment varies from company to company, and country to country. A micro-payment (in US) is defined as ‘an online or mobile, real-time or deferred, financial transaction below $12 amount' according to PayPal.
1) Amazing growth of digital content and digital media like news, music, videos, etc. (small ticket size)
2) Exponential growth of Mobile app industry (priced at $0.99, $1.99 and so on)
3) Growth of social networks and online gaming communities (small amount credits, perks, virtual currency, etc.)
Global Market Size (Knowledgefaber Estimates)
The Global Micro-payments industry is pegged at $9.8 Billion in 2013. The industry has grown at a CAGR of 23% in the last 3 years. And is expected to grow strongly going forward, to cross $13 B in next few years