Micropayment

Micropayments are small transactions or payments that are usually conducted online and are typically less than a dollar, sometimes even less than a penny. Micropayments are considered to be a method to take advantage of the internet to make it easier to distribute digital rights, royalties, in-game purchases, online tips, and even to manage devices connected by the internet of things (IoT).

The definition or size of a micropayment varies depending on the payment processor and the company; for example, some organizations consider all transactions under $1 as micropayments, while others only recognize transactions under $5, $10.00, or occasionally even $20.00 as micropayments.