Bitcoin is a powerful tool to improve the microtransactions ecosystem. Sending small amounts of funds, either for in-game purchases, tipping or gaining access to premium content, can be quite a hassle when relying on traditional payment methods. While it may be very convenient for the consumer to pay with PayPal or credit card, there are still large fees attached to these transactions.
SatoshiPay – Uniting Bitcoin and Micropayments
To be more precise, SatoshiPay is a company that enables content creators and merchants to accept nanotransactions, as well as microtransactions. Even if the product or service costs less than a cent, SatoshiPay will be able to process the payment, as Bitcoin is a currency divisible up to 8 digits after the decimal, whereas fiat currency can only go as far as two digits.
Monetising content in this day and age is proving to be more difficult than ever before, despite having all the tools to reach a worldwide audience. The content creation market has become oversaturated in recent years, forcing platforms to come up with additional ways to let content creators earn money by sharing their work.
Regular advertising models, through banners, pop-ups and clickable referral links, are still a great way to make money while promoting one’s own content. Most consumers would be more than happy to pay for the content they need, without having to go through advertisements or buying other items they might not even need.
What makes SatoshiPay such a valuable platform for both consumers and content creators is how their payment solution does not require users to create an account or install specific software. All of the payments are instant, as Bitcoin is a global currency that allow users to send funds anywhere in the world within seconds.
For the time being, SatoshiPay is still in its private beta phase. However, the company has been making a name for itself after being part of the Axel Springer Plug and Play accelerator. The first iteration of SatoshiPay as a payment platform was created during these three months and the company received a bit of funding to boot.
Shortly after, Fintech Circle selected SatoshiPay as their first Bitcoin startup. A presence in London was rolled out, thanks to the helping hand of Level39. Earlier this year, SatoshiPay decided to change its model to target the nanopayments market and a demo version of their website plugin can be found here.
Additional Funding by Kuala Innovations
A few days ago, SatoshiPay raised 160,000 EUR in funding from Kuala Innovations, run by executive director Jim Mellon. For those of you who have not heard the name of Jim Mellon before, he is one of Britain’s richest men. Due to this investment, Kuala Innovations now owns 10% of the SatoshiPay company.
It is the first time Kuala Innovations is investing in a Bitcoin company, as they felt very attracted to the idea of using Bitcoin as a way to create a frictionless micropayment solution. However, this bit of funding did not come out of the blue, as it is part of a larger round of funding led by Coinsilium.
“With this investment Kuala’s Jim Mellon, referred to as Britain’s Warren Buffet by some is supporting his words with actions. In his recent book Fast Forward he dedicates a whole chapter to payment processing, explains Bitcoin to the layperson in great detail and briefly touches other cryptocurrencies including Ethereum. Him and his co-author Al Chalabi conclude: “Merchants and consumers alike will slowly feel more comfortable with the concept of a crypto-currency and, barring any security scares, Bitcoin, and/or others will slowly gain traction.” – Meinhard Benn, Chief Satoshi Counter of SatoshiPay stated.
Images courtesy of SatoshiPay, Kuala Innovations