Pay with a single click using Twitter or Facebook

A one click payment that uses social media login credentials to make payments is being tested by a major European media company. The inspiration behind such an idea was to make it easy for people to make minute or small scale payments, even in the range of 10 to 20 cents. The pay wall structure of online publishing houses can be bought down if the system comes into effect. For e.g. let’s say a user clicks on a link that interests him/her and leads to the article on the publisher’s website, however the article is behind a pay wall. In this scenario, one would have to miss out on reading the article or pay the subscription fee for the entire magazine. The proposed payment system will let you pay for this article alone in a single click by logging in through Facebook/Twitter.

Such a shrewd business idea can help online publishers, media companies, low-priced goods and service companies flourish. The system has been developed by a start-up company in Belgium. The company named Paycento will offer both small payment services as well as large scale.

“We want to make it economical for the merchant, for the publisher to offer something at any price point, that means both at 10 cents, at 5 cents as at 1 euro,” says Peter Dubois, the company’s 41 yr old founder. Currently the biggest player in the market, PayPal charges 5 cents plus 5 percent for small payments.

The basic idea behind the service is to leverage the reach of social networks. Paycento will ask users to link their Facebook or Twitter accounts, hence always maintaining a certain balance on their Paycento accounts, which can be spent as and when users wish to. “Those social identity networks also are really identity providers … so we piggyback on that,” says the founder. He believes the process of payment will be as easy as we share or tweet something on the Internet. The payment is really seamless … so it’s like a one click payment on the internet,” said Dubois

The biggest upside for the system is the lack of long personal information forms, putting in Credit Card information and the whole authentication process. Paycento is talking to venture capitalists to raise about 5 million euros ($6.66 million), which the founder hopes will keep them afloat for two to three years, post which the company can self-finance itself.

We will closely keep an eye on Paycento as it tests it’s beta version through a large European media company for now.

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