Articles Quote by Erik Naggum
“The Internet will not become a money machine until the banking industry figures out how to transfer money for free so you can charge USD 0.005 (half a cent) for some simple service like, say, reading a newspaper article you have searched for. With today's payment system, the cost of the transfer of the funds completely dwarf the cost of the service paid for. ... This situation, however, is what acutely prevents the Internet from taking off as a network for paid services.”
About This Quote
Source Blog post: Internet Economics, 2009
Current payment fees are too high for micro‑transactions, blocking low‑cost online services.
In simple terms: High fees stop cheap online services.
Key Takeaway
Advocate for free money transfers.
Themes
economics
technology
payments
Mood
critical
optimistic
Type
analysis
prediction
When to use this quote
- online news
- digital content
- software services
Key Concepts
micro‑transactions
network effects
pricing models
Questions to Reflect On
- How could blockchain reduce costs?
- What incentives exist for banks?
A Different Perspective
Regulatory or technical hurdles may persist.
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