With Small Transfers:
- There is no wallet or funding for the account. Customers simply pay for what they owe, usually at the end of each month.
- There is a lower psychological barrier, since there is no subscription or prepay commitment. Customers who dislike recurring payments are more willing to try something new that avoids this.
- Merchants need to introduce customers to just one extra service, Small Transfers.
Some customers of Unattach (a service I built) are happily paying for the service via Small Transfers, and early feedback shows that they really appreciate this pricing model. It's worth noting that Unattach also supports the classic subscription model.As more merchants adopt Small Transfers, customers will still only need one account, making micro-billing even more convenient.
Say it costs 1.7 cents and delivers 3.2 cents of “value”, you need to be able to do all that work in less than 1.5 cents worth of your time. You can’t do that as a human. But an agent maybe could, to pay for content or MCP calls. I see a big role for micropayments in this genetic future.