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Freemium Payments

Wait, “Freemium” is happening in the world of Payments? What? Isn’t that an oxymoron?

Where are the hidden fees?

Where are the ads?

How much is this actually going to cost us??

None, nowhere, nothing. Or at least that’s what Braintree is trying to tell us.

I wrote a little while back about what I felt were a few of the top things that will come about to help change the Payments industry. I focused on purposes, beneficiaries, and business models as opposed to NFC vs QR Codes vs Bluetooth LE.


I believe that technology is a critical enabler to allow new forms of business and transactions to exist, not a purpose in and of itself.

That’s why.

And more importantly: too much of the discussion in the Payments industry lately has revolved around technology choices, not business models, cost savings, or utility for the masses.

Without rehashing yet more of what has already been written; the Future of Payments will be defined by (among other things), a focus on users (merchants and customers), cost savings, and the ability to tap previously un-tappable market segments. More specifically: freemium models will be critical to early adoption and retention of both consumers and merchants.

Thankfully, someone in Product (or another genius department) at Braintree thinks the same way I do. They just recently announced a program called Ignition that allows companies to avoid paying for the first $50,000 of transaction fees just for using the Braintree platform.

I’m excited to see how this turns out and I really hope they publish stats on adoption rates as well as conversion rates. This is obviously only one piece of the puzzle because it only addresses mobile and web apps. However, with even a modicum of success, the Freemium model becomes validated for use in all other Payment applications from traditional Point of Sale to P2P transfers and all manner of other situations.


Originally posted by Rob McGrorty on Medium

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