International credit card giant Visa has launched a new online payment service called Payclick, which is specifically targeted to assist with micropayments of less than $20 per transaction. This initial trial is available only in Australia, although if successful it could spread worldwide.

“Payclick is designed to meet growing consumer demand for digital content, such as music, games and movies,” said Payclick’s general manager, Greg Storey. “Payclick accounts are suitable for the different needs of family members, including those under 18.”

Five merchants have signed up for the initial trial, including the Apple iTunes store, BigPond Games and Music, FlexiSchools, and Habbo. As well, Payclick accepts donations for the charity Kids Helpline.

Similar to PayPal, the Payclick accounts are free and accept payments through retail banking transaction accounts, or Visa or MasterCard debit or credit cards. Parents may set up a “sponsored account” for those under 18 which can be funded with regular deposits and functions rather like an allowance. In addition, sponsored accounts cannot be overdrawn, have minimum and maximum deposit limits, and parents can monitor their children’s transactions.

Teenagers have long depended upon gift cards or prepaid credit cards for their online purchases. With this new service, paying is as simple as clicking, with no need to enter financial or personal data.

Although Internet merchants pay a fee for the Payclick service, Mr. Storey emphasized there’s no intention to challenge PayPal. Payclick is intended for low-cost digital downloads, such as pay-per-view for newspaper articles or e-books.

“Payclick would be ideal in that environment,” said Mr. Storey, “and we’ve prepared Payclick to be very competent and very simple to use for what appears to be a growing market.”

Australians are forecast to spend $646 million in micropayments in 2010, a figure expected to reach roughly $1 billion in 2012.

Source: http://www.zdnet.com.au/