DaoPay Blog

Myth #1: Micropayments don’t work
Fact #1: People worldwide earn a decent living with micropayments. (iTunes AppStore… hello?!)

There may be different opinions on whether micropayments work or not, but the facts speak a clear language: creative individuals as well as large companies are earning decent incomes with micropayments.

• Jeff Smith has made a cool million in 2008 with $1 and $2 apps that he sells on Apple’s AppStore.
• Stever Demeter pulled in $250,000 in just two months with a $3 iPhone game.
• facebook is making an estimated 15-30 million Dollars a year with $1 gifts that they sell on their platform.
• And last but not least, daopay’s customers are processing millions of transactions every year in the range between $1 and $10, with conversion rates of up to 76%.

Myth #2. Mobile Payments involve high fees and are too expensive
Fact #2: Mobile Payments compare very well to other payment options

Credit Card companies take about $0.35 per transaction, plus a 3% fee. But don’t let the “3%” irritate you: if you sell a product for $1, that’s a whopping 38% for fees. Which means you get to keep significantly less than with the AppStore or daopay (see #1)

Myth #3: Mobile Payments users need a credit card
Fact #3: Mobile Payments work without credit cards

Paying online usually involves credit cards or bank accounts. But credit cards aren’t equally popular everywhere. Many people also don’t feel comfortable sharing their perosnal information over the net. And then there’s people who simply don’t have a credit card.

Mobile phone payments, on the other hand, only require a simple telephone if done right.

Myth #4: Mobile Payments work only with Mobile Phones
Fact #4: Phone Payments also work with landline phones

Mobile payments, micropayments, phone payments… quite confusing! Most mobile payment operators really mean “mobile phone” when they say “mobile phone”. In addition to that, daopay works with landline AND mobile phones. Just dial a number, hold the line, and you’re all set.

Myth #5: It’s Mobile Payment versus Credit Cards
Fact #5: Mobile Payments are a complementary payment option.

If you sell fruits, some customers will want apples and some will want oranges. Maybe you’ll sell more apples than oranges, but at the end of the day, you’ll be able to serve more customers if you offer a broad range of choices. It’s the same with payment methods. You can simply serve more customers if you give them more choices.

Myth #6: Only a few freaks use their phone to pay online
Fact #6: Phone Payments reach 40x as many users as Apple’s AppStore

Let’s just compare the numbers:

And since everyone can use phone payments without signing up for an account first (not to mention going through the credit card approval process…), you really are able to collect money from anyone, anywhere.

Myth #7: Mobile payments are just for large companies
Fact #7: Mobile Payments are very easy to integrate for everyone.

If you have a friend or collegue who knows how to work with HTML and e-Mail, you got all you need. It’s easy to get started, and it’s easy and inexpensive to find someone to help you do more tighter integration. Anyone who has ever integrated PayPal can intergate daopay.