Shoemoney says that there’s got to be a better way than PayPal for micro transactions. He’s right, there should be something, and I’m not talking about Google Checkout either. Shoe poses…
About once a week it seems me and David have a talk about micro payments on the web and a way to do them properly. Both of us agree it is a service badly needed but we also agree we do not want to do it =P. Right now if you want to send someone a small amount of money there just is no way to do it that makes much sense.
I am a huge fan of virtual â€œcreditsâ€ or â€œpointsâ€. Basically people can cash in $10 or whatever the equiv currency would be and receive 1000 credits.. for fun lets just call them shoemoney dollars. Now people on their blogs or whatever could easily send money or â€œtipâ€ other people for posts/content/whatever they like.
He goes on to use my ScratchBack.com as an example of why PayPal transaction fees well, suck. They do.
Some of you out there are like well you can do that now with things like scratchback right? Sure you can but its REALLY inefficient. Let me show you why. Just for instance I am going to use Shawn Collins blog affililate tip. As you can see I can send him $1 paypal to get a link on his blog via Scratchback:
Looking at the Paypal calculator Paypal is going to take 33% of the payment. So after Paypal takes there 1/3 of $1 and scratchback takes their 30% (I think that is their percentage but I could not find it on the site) That leaves like 40% some percent actually goes to Shawn Collins. Hrmmm
Actually, ScratchBack only takes 10% after PayPal fees Shoe. But back to the point.
What Show wants someone to build is a GREAT idea. However, I don’t think possible.
BUT lets say Scratchback allowed me to buy ehhhâ€¦ lets call it SCRATCHBUCKS where it was even a even swap $10 = 10 scratch bucksâ€¦ And I could distribute those scratchbucks at my leisure to people who have scratchback accounts.
There are simply too many global laws and money exchange issues, and plenty more things, that would make this type of system a HUGE endeavor.
But I like the idea. :O