Riding on the growth of digital music and other forms of digital content purchased on the web, Internet micropayments in the U.S. market will more than triple to $6.7 billion in 2009 from $1.9 billion last year, TowerGroup reports.
TowerGroup, defining micropayments as transactions under $5, projects that Internet micropayments will grow at a cumulative annual growth rate of 20% from 2003 to 2009. It projects U.S. Internet micropayments will reach $2.8 billion this year, followed by $3.7 billion in 2005. Its Internet micropayment figures cover wireless as well as wired transactions.
"As technology has advanced so have customer expectations and networks, and these factors are setting the stage for expanded micropayments growth," said Ed Kountz, senior analyst in TowerGroup’s Emerging Technology Solutions practice and author of two recent reports on micropayments, “Electronic Micropayments: Market Development, Issues, and the Potential Impact on Financial Service Institutions,” and “Making Sense from Cents: Trends in the Rebirth of Electronic Micropayments.”
TowerGroup lists as the leading providers of Internet micropayment services PayPal, Qpass, Peppercoin, Bitpass and PaymentOne.