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29 Jun 2004
Peppercoin
Peppercoin has announced version 2.0 of their solution. I have been trying to understand what their solution does. It seems to be mainly a product, which the merchant has to install and integrate into his website. This part can also be outsourced to Peppercoin, which then offers a hosted application service.
The offer a micropayment solution. As they ask 10 cents per transaction, the minimal payment is some 2 dollars. I assume this is a better deal than offered by the creditcard companies otherwise their solution is not interesting. The solution of Peppercoin is based on payment aggregation. Peppercoin aggregated all payments and reduces it to a single payment per buyer. I guess this only works well when their network is large enough.
I see the advantage that Peppercoin offers, but why can the Credit Card companies not do something similar? And aren’t they already doing something similar? My money gets transferred only once the per month. The rest is administration and overhead. And that is where you might reduce costs. Anyway I am not sure I understand it.
[inspiration: PaidContent.org]