Problem: Current online payment systems either accept credit cards or online banking. This infrastructure is not geared for handling micro-payments as the setup cost is high. (Setup fees of 8k-30k + transaction charges of 4-7%) Also, users will not be inclined to pay a small amount with credit card.
Possible use cases of Micropayment:
- Content providers who wish to charge a small sum for their work. eg. Subscribe to movie reviews by Baradwaj Rangan for Rs 10 per month.
- Subscribe to stock related information for Rs 10 per month.
- Buy two mp3 tracks from an album for Rs 2 each.
- Buy virtual gift for your friends on social networking site.
- Name of the service: CoinPay
- Recharge your cellphone with a certain amount, say Rs 200.
- You can also buy "talktime" with part of this amount, say Rs. 100.
- Each merchant will have a code. eg BRChennai
- You can generate a coupon of Rs 10 for this merchant by sending SMS to CoinPay service. eg. "BRChennai 10". The coupon is received by SMS is "XJKEX42." This coupon expires in 48 hours.
- Present this coupon to Merchant who will in turn present it to CoinPay.
- After successful redemption, Merchant's account is credited with the said amount and Customer's account gets debited.
- CoinPay earns by charging a small percentage of earnings by Merchant.