Micropayments

Part of speech: noun

Definitions

1. Transactions involving very small sums of money often conducted online for digital goods or services, typically allowing quick, low-value purchases; these minimal payments enable access to content or features without a large financial commitment
2. Financial exchanges characterized by transferring tiny amounts of currency, usually electronically, to facilitate purchases or compensation for minor digital items or services, commonly seen in app stores or online platforms
3. The system or practice of making numerous small monetary transfers, especially via digital methods, to pay for small-scale goods, services, or content, enabling microtransactions without significant financial burden or complexity

Etymology: The idea behind "micropayments" is older than the word, but the term itself is credited to Ted Nelson, the American information technologist and philosopher best known for coining "hypertext." It is formed in the simplest way possible: "micro-", from Greek "mikros" meaning small, joined to "payment," a payment or settlement of a debt. The result describes a payment too small to be worth handling under the old systems of cash, cheques or card fees. The word is plural here because it names the practice of such payments in general, usually as a count noun for individual transactions. Its meaning has grown with the internet, where it now covers the trickle of fractions of a cent that pay for a single article, song or minute of software use.