Microsoft to enter Online Payment market

ZDNet Blogs has a report about Bill Gates’ speech at the Davos World Economic Forum.

If you want to charge somebody $0.10 or $1 a month, that will just be a click…you won’t have to manage some funny thing or pay some big credit charge, where half of it goes to the clearing.

It appears that Microsoft has plans on entering the Online Payment Processor market, currently dominated by Paypal, which also includes lesser competitors like Google Checkout and 2Checkout among others.

Microsoft intends to enter the market by providing cost effective solutions that would work out even cheaper than Credit Card transactions.

Currently Google Checkout offers really competitive rates and from what I read is actually running the service at a loss, covered by Adwords.

If Microsoft enters into the market with this model, it definitely will give PayPal and Google a run for their money. As for us consumers and more importantly sellers, it will definitely mean lesser transaction charges translating to a better income.


  1. Ajay,

    I think the online payment segment is a strategic point for most software-internet companies. E-commerce is expected to boom in the near future, so if you control your own payment system you can have much more flexibility regarding your services.

  2. Very true indeed. That is the possibly why Microsoft is so eager to enter into this segment.

    With the huge number of services they already offer, having an online payment system will work wonders for them. Small profit per transaction, however when you’re talking millions of transactions…

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