Microtransactions. Tiny payments for goods and services in bite-size amounts, a trend of significance and not so new. They are a key ingredient in the secret sauce of success for iTunes, a very real driver of the redbox business model, and the Amazon Kindle's ray of hope for newspapers is generated by them.
And yet... When does the stack-up of small purchases start to become a noticeable class of expense for consumers? Sure, it's easy to rent a movie for $1 a day or sign up for the $0.99 monthly subscription at a moment's notice. Today, these transactions "work" for consumers largely by being pain free at the time and largely unobtrusive on a credit card statement.
It seems to me that as more companies adopt this model of revenue capture, consumers will evolve, becoming more sensitive. Think of it this way, a piece of candy now and again isn't so bad for one's teeth or waistline, right? But, handfuls of sweets on a daily basis manifest themselves quickly. In the same way, too many microtransactions swells the waistline of any credit card account.
Don't believe me? Keep tabs on your small purchases for a week and tally the total. Or maybe an iTunes addiction already killed your credit limit. Chime in here to share your thoughts, reactions, or stories.
I agree and I like the name "microtransactions." They do add up...says my wife who monitors our spending. The result? We carry less cash and she lets me know how much was blown each week for "nothing."
ReplyDelete