I was meditating and thinking how nice it would be to be paid by my Twitter audience to do things, when I realized we need a way to make micro-payments via Twitter and SMS! Unfortunately, my genius idea has already been thought of (as most genius, Twitter related ideas seem to have been). Fortunately, NO ONE has executed this idea properly as of yet.
Here is the basic concept of Twipp.Me: In one line – we will do for Twitter what PayPal did for eBay. Twitter users can sign up for a Twipp account and deposit money or link it to their credit card. Then they can pay other Twitters via a simple 140-character message. “#twipp $5.00 @brycemaddock for coming up with such a brilliant idea!”
Here are the potential uses of this service:
The conventional: Twitter users could use Twipps to sell information, services or products via. I might promote an e-book on social media than other Twitters could purchase via a simple tweet. “#twipp $10.00 @brycemaddock for Social Media e-Book.”
The noble: Non-profits, charities and politicians could utilize Twitter to raise money. Barack Obama could harness the viral power of Tweets to raise millions from Twipp based micro-payments for his 2012 reelection. “#twipp $50.00 @barackobama for reelection in 2012″
The current competition for the service is:
But here’s the fundamental issue with these three services: they ALL use PayPal as a funding source! So the greatest way to monetize this idea – by making a few bips on every transaction – is forfeited to the largest payment processor on the web! Come on entrepreneurs!!!
Twipp.Me will establish a new stand alone payment processor, backed by a third party merchant processing service like Authorize.Net. Credit card info will be securely stored in your Twipp account, as it is now with PayPal. Why is this better than using PayPal as all of the options now do?
For the seller: the transaction fee will be less, because Twipp.Me does not need to pay the PayPal mark up before thinking about profits.
For the buyer: the price of the product or service will be less because the seller’s transaction fee is less. Not to mention the seller will no longer need to have a PayPal account to deal in Twitter and SMS based micropayments.
For us: we will make way more money, because we are looking at the margins PayPal makes, not the margins that a third party addition to PayPal makes.
The real challengers to an idea like this are – PayPal or Twitter itself. The amount of money to be made off of Twitter and SMS based micropayments is huge. So there is very little stopping such formidable, well financed forces from throwing their hats in the ring. With the security challenges that almost certainly will arise, it will be hard to start such a business with out that kind of clout.