Terminology : MicroPayments

Micropayments originally came into being around the 1990s . As the name suggests , this refers to extremely small amounts being transferred online through web protocols.

At that time online payments were expensive and the challenge was to make micropayment feasible for billing for online media publishing which meant restricting the cost to a bare minimum . While Paypal defined a micropayment as an online payment of less than 5 GBP , Visa defined it as less than 20 AUD. However , IBM Micropayments that came about around 1999 enabled payments less than one cent.

This could well have been the revolution that enabled e-commerce. However , research was stopped across IBM , Compaq but the link below traces the roots to todays payment wallets , API based payments and commerce pull push to all research around Micropayments.

While the term has stayed on , and we still refer to small payments as micropayments , the term itself refers to a league of patented technology and research done around reducing the cost of online payments.

For further reading :

  1. https://www.w3.org/ECommerce/Micropayments/
  2. https://en.wikipedia.org/wiki/Micropayment

 

 

Terminology : NanoGap Finance

The term Nano gap was coined by accounting firm Deloitte in around 2010 to describe the shortage of capital to fund the retirement of baby-boomer entrepreneurs seeking to sell their small, medium enterprises (SMEs).In the Deloitte report: “Micro-cap typically refers to those companies with an equity value of less than $250 million. Nano-cap is another term that is used to refer to companies with a value of less than $10 million.”

For futher reading : deloitte-makingamarketformicrocap1005112-130727190958-phpapp02

Let us know if this is relevant in 2017-18 in growth markets. Should SME focussed funds turn their attention to nanogap financing ?