Microtransaction
A microtransaction is a small-value payment, typically for a digital good or service such as in-app features, game items, or pay-per-use content. These payments are designed to be quick and low-friction, enabling frequent purchases of low-cost items.
Because fees can be large relative to tiny amounts, platforms often rely on payment processors, stored credentials, or digital wallets to reduce friction. In crypto contexts, microtransactions may be denominated in satoshis.
Related Terms
Payment Processor
A payment processor manages the technical processing of card and electronic payments between merchan...
Digital Wallet
A digital wallet is an electronic device, software program, or online service that stores payment in...
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on ...
Satoshi
Satoshi
Satoshi is the smallest unit of Bitcoin, equal to 0.00000001 BTC (one hundred millionth of a bitcoin...
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