SpareChangePayments: Raking in the Coin

Micropayments are big.

I know that sounds like an oxymoron, but it's true. The micropayment market is booming. Both Facebook AND MySpace are now admitting that they're putting together their own payment platforms. Apple could even get on the bandwagon too as it already has a micropayment system in place for iPhone applications.

While the big guys are hitting the drawing board and having brainstorming meetings (while they fill out their TPS reports), smaller startups are getting in early.

Take, for example, Spare Change Payments, which is trying to become the Paypal of micropayments. They just launched about 12 months ago and already more than 700 apps across Facebook, MySpace, and Bebo use Spare Change for micropayments.

Spare Change is processing $2.5 million a month in micropayments. That's a $30 million annual run-rate!

Not only that, more than 1,000,000 users have already signed up for the service. This is not "nickels and dimes" stuff either. In 2008, 250 people spent more than $1,000 each on digital products via Spare Change.

If you've read iStormer, you know how easy and profitable it can be to create your own viral Facebook app. With 175 million users, it's almost like shooting fish in a barrel.

Spare Change is now making it even easier to use its service by launching a new payment widget that is embedded in each application instead of having to navigate over to its payment page.

You can pay via credit card, Paypal, Spare Change credits, or even via your cell phone bill. After you have purchased at least $2 in credits, you can use them as currency for applications that charge as little as $0.10 at a clip.

It's also launching a PIN ID for those who may want to tie their account to a major credit card.

The first app to feature the new Spare Change widget is Facebook's Mind Games. The best part - developers only need to add three lines of code to the program.

The company currently is accepting payments from 190 countries.