By Jim Karpen on Sat, 06/06/2009
Everyone is looking to Monday's developers meeting when Apple is expected to tell us when the new iPhone 3.0 software will be available. One revolutionary new feature will be "in-app payments." You can read more on CNet. This is yet another brilliant move from Apple. The grail on the Internet has been monetization — how do you make money from what you offer? And the challenge has been to make things cheap enough. From what I understand, a credit card transaction costs around $3. So if you're selling something for a buck, someone is losing money. That's one reason why PayPal has been such a big success. "Micropayments" would be the answer to so many issues.
I might not want to subscribe to a helpful site at $20/year, but I wouldn't think twice about clicking a button to pay 25 or 50 cents for something I want to read. Enter Apple's "in-app payments." It's a handy micropayments system. Right within the app you can make small payments for things. The CNet article gives the example of a game such as Command & Conquer, in which you could add additional maps to play the game for a micropayment. The possibilities are endless. Customers will love it, because you'll be getting more of what you want for very small amounts of money. And developers will love it, because they'll have more ways to make money.