Microsoft: Forget about PayPal; how about a MasterCard killer? Options

[Xbox-Scene]

Microsoft: Forget about PayPal; how about a MasterCard killer? Posted by XanTium | January 29 00:13 EST

From arstechnica.com: [QUOTE] Speaking at the World Economic Forum in Davos, Switzerland, Bill Gates indicated that Microsoft was looking into finding a way to make so-called micropayments a reality online. And to make it a reality, Gates noted that traditional credit card fees would need to be undercut, and severely. See, the credit industry makes money not only off interest, but they also scoop up 2.75% + $0.35 in fees for most transactions (on average). As you can see, this makes charging for inexpensive items quite unattractive; a $0.25 charge would be instantly doubled on account of fees. For people who have fantasies of selling web content by the page, this is unworkable. Microsoft has two options. First, Microsoft could expand its "Points" system, which earned notoriety with the Xbox Live Marketplace (and was later tapped for the the Zune Marketplace). Such a scheme would see users buying points in bulk and then paying for items with said points. It's a virtual currency ecosystem of sorts based on a fixed "exchange rate" between real currency and the points system. This is not Microsoft's only option, of course. Instead of points, Microsoft could simply borrow a page from PayPal and deal in real currency. I'd recommend that the company do the latter, because "points" are not popular with the early-adopter crowd. They obfuscate the real cost of things, and many users have reservations about buying large amounts of "points" that then sit somewhere, unused. [/QUOTE] Full Story: arstechnica.com

[shauno]

Seriously Microsoft?, I think you already have enough of my money

[Agrooreo]

Wonder if they do do it like paypal, if they will lock as many people's accounts....

[lcprove]

Paypal is the reason I no longer use ebay..........

[steveju]

See, the credit industry makes money not only off interest, but they also scoop up 2.75% + $0.35 in fees for most transactions (on average)... in the United States
(interest still applies to the rest of the world though)

It's easy to say that someone should use a crappy service (eg. PayPal) to handle money if you're never going to use it yourself. I don't see anything seriously wrong with the point system, except you should be able to convert it to real money and send it to your bank account.

[poop1]

micro$oft money ? forget about bush , gates is trying to take over the world !

[BoNg420]

micro$oft money ? forget about bush , gates is trying to take over the world !

yea but he's still better than bush. bush is an asshole.

This post has been edited by BoNg420: Jan 29 2007, 11:02 AM

[Masamune]

Oki i like this idea.

Mainly because if this new system will be acceptable as a paying fee for "mmorpg's" like FFXI & PSU... and future mmorpg's.

(Why i say this is because not all countries have acess to prepaid cards & etc).
Not to mention all the crap "Virtual" payment options out there.

If the system becomes really "Universal" then im in for it.
I mean if you can use the current points system to pay for the stuff on marketplave why not the fees on mmorpg's aswell?

Besides, no one is forcing anyone to buy the points card, or any content on the marketplace, so i think its good.
(Still some stuff really should be free, like avatars & themes.)

This post has been edited by Masamune: Jan 29 2007, 11:29 AM

[tonloc79]

Paypal is the reason I no longer use ebay..........

Amen brother! I would be fine if i never paid another Ebay or Paypal fee for the rest of my life. They are like the government, they f%*k you on both ends!

[mike96sc2]

What is needed is Microsoft to use their leverge to get the credit card companies to take a smaller cut or else take a certain percentage of the gross instead of individual transactions. Work something in their favor that would spread out the pain more and leave the ability to see $1.00 microtransactions maybe.

[ILLusions0fGrander]

im not big on MS points or MicroPal bill payments in my near future.

If i ever see bill gates face on a piece of currency... im moving to another planet.

[dhrandy1]

Why don't they just bring out there own credit card company and do what they want?

[throwingks]

im not big on MS points or MicroPal bill payments in my near future.

If i ever see bill gates face on a piece of currency... im moving to another planet.

Bill bought them all.

[grim_d]

If i ever see bill gates face on a piece of currency... im moving to another planet.

I call shotgun.