Micropayments Could Monetize Social Networks Further

Applications have brought on a plethora of innovations from social networks like Facebook and Myspace, to SmartPhones like the Apple iPhone. Nevertheless, monetization of these outlets is a continual hassle. Although Facebook and Myspace have found one solution to this problem through selling ads, and Apple charges for some applications, there is still room for more innovation. This is where the idea of micropayments would come in.

Micropayments would allow users to send payments to different users and would provide other conveniences. For example, Facebook sells virtual gifts on its site. Micropayments would facilitate this process. Tech Crunch also sites that “there are Facebook applications that have found a way around the problem by using third party payment services. Spare Change (powered by PayPal), Social Gold, Zong and other services let users move cash into the system, and applications like Mob Wars have gathered as much as $1 million per month from micropayments”. There would not be a need for these third party services if Facebook developed their own micropayment capabilities. In fact, third party payment sites often charge a fee for their services. If the site had its own micropayment option, these fees could go to Facebook, Myspace, etc. As 2009 begins, perhaps companies will be more open to the micropayment option.

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