I think you're better off NOT taking micropayments, primarily because the cost of authorizing the transaction dominates the actual value of the transaction.
What do I mean? Well, suppose you had asked me to pay a nickel to read this comment thread. I value my own time at about a hundred dollars an hour. I've already spent more than a nickel of time reading this thread, so clearly I should have been willing to pay a nickel to read it. But the mental decision point on whether to cross the penny gap or not, plus the amount of friction it would take for me to authorize this transaction (fish out credit card, type in digits, sign in, click "Are you sure you want to pay $.05 to this merchant?", yadda yadda), is worth far more than a nickel of frustration to me. That increases the cost of the content to me but it is revenue that you don't capture.
Rather than selling things for micropayments, do what essentially everybody does in this space: sell a microcurrency in macro-units ($10, $20, etc), and then make authorizations to spend the microcurrency as friction free as possible. For getting over that penny gap on the first transaction, you probably want to give people a significant incentive to buy their first hit of microcurrency -- 100 dragon eggs for $5 instead of $10 like usual, whatever.
Clarifying edit: for non-Americans reading this comment, it might be useful to know that a nickel is .05 USD and a penny is .01 USD. They're the common names for two of our low-value coins.
This is one of the reasons I like PayPal and use it in preference to credit cards for online purchases. It has very low friction. To buy something online I normally need to get up, find my card (back when I used CC frequently, I had the numbers memorized, but no more), type in digits, go through the whole procedure.
Whereas, with PP, the site just takes me to PayPal's site where cookies know who I am, so I just enter my password, press OK, and I'm done.
It's gotten to the point where I often check if a vendor takes PayPal as soon as I even think of ordering.
TipJoy solves that problem. Just click the button and the "money" is transferred. You don't even need to register until they decide that you probably have "paid" enough to make it worthwhile.
I am not associated with them, but I love the idea, think it's a great modeel, and am about to become a customer.
What do I mean? Well, suppose you had asked me to pay a nickel to read this comment thread. I value my own time at about a hundred dollars an hour. I've already spent more than a nickel of time reading this thread, so clearly I should have been willing to pay a nickel to read it. But the mental decision point on whether to cross the penny gap or not, plus the amount of friction it would take for me to authorize this transaction (fish out credit card, type in digits, sign in, click "Are you sure you want to pay $.05 to this merchant?", yadda yadda), is worth far more than a nickel of frustration to me. That increases the cost of the content to me but it is revenue that you don't capture.
Rather than selling things for micropayments, do what essentially everybody does in this space: sell a microcurrency in macro-units ($10, $20, etc), and then make authorizations to spend the microcurrency as friction free as possible. For getting over that penny gap on the first transaction, you probably want to give people a significant incentive to buy their first hit of microcurrency -- 100 dragon eggs for $5 instead of $10 like usual, whatever.
Clarifying edit: for non-Americans reading this comment, it might be useful to know that a nickel is .05 USD and a penny is .01 USD. They're the common names for two of our low-value coins.