Buy now, pay how?

Paying for purchases by mobile is nothing new in Japan . . . and another long tradition in that country is ordering something, paying for it at the local 7-Eleven convenience store and picking it up later at the same store (or the store of your choice). This "buy now, pay locally later" option has fueled e-commerce in Japan for more than a decade.

However, micropayments (paying for small purchases, such as for virtual gifts, impulse snack items or beverages) are not as well integrated into customer behavior and retailer routine in other nations.

Now 7-Eleven convenience stores in the United States will accept micropayments for virtual products purchased online to use in Web-based games and sites. The company behind these micropayments is Kwedit.com. One participating site is FooPets and a second is Puzzle Pirates, both geared towards youngsters.

To buy, youngsters print out bar-codes for the virtual items they want, bring the codes to a nearby 7-Eleven store, and pay with cash or another method (parents might be persuaded to pay via cash or credit, for instance). The virtual items are relatively inexpensive and therefore affordable by the younger crowd.

Kwedit's micropayment arrangement with 7-Eleven is being promoted as a way to increase purchasing among potential buyers who want or need to pay by cash only.

How will micropayments evolve in the coming years?