The New York Times today covers the history of micropayments. Once heralded as the next wave in economics and banking, micropayments were quickly maligned in academic circles. Processing costs were just one reason of many cited to explain why the phenomenon would never catch on—especially online.
And yet today, micropayments seem to be thriving online. Single-song download services, with songs priced as low as $0.94 and stock photos from $1 are just a few examples of a system that seems to have found its home on the Internet.
After citing this example, however, the New York Times goes on to state that micropayments are ultimately failing online—and one reason for this is Google AdSense.