Visa launches homegrown online micropayment service

Visa has launched an online payment service for consumers of digital music, games and movies.

Designed and developed in Australia, payclick by Visa is an online account for teens and consumers of low priced downloadable content - typically online transactions under $20.

Market research firm, Investment Trends has found that online micropayments in Australia will reach $646 million during 2010.

Once registered for Visa payclick, consumers can purchase content from participating websites. 

From today, BigPond Games, BigPond Music, Flexischools, Habbo, iTunes and Kids Helpline will accept payclick payments.

Greg Storey, general manager for payclick at Visa, said security was an important consideration in the development of the service.

The service means consumers don't need to share their personal information or bank account details with merchants. Instead they need to validate their transaction by typing in their password.

Storey said Visa wanted to "meet an unmet need" and target a particular niche and consumer segment.

Payclick accounts are suitable for the different needs of family members, according to Visa.

For teenagers, Storey described the service as "pocket money online". To open a primary account users must be 18 years or over.

However, a key feature is the sponsored account for teens, which allows teenagers to pay for their purchases online while parents manage their accounts' funding and have a transparent view over all transactions.

The account can be funded through Visa, Mastercard, online banking and Bpay. The opening balance is capped at $1000 and the minimum is $20.

"We've been working here on this service for two years," he said.

The service is available now in Australia. Visa did not give an indication as to when and if it will be rolled out globally.

Storey said consumers don't get charged a fee but merchants are charged a "competitive fee" to use payclick.