Visa Rolls Out New Online Payment Service

Launched today in Australia, Visa's new online transaction service is aimed at making it easier for teenagers to purchase their favorite music, games and movies on the Web. A pre-paid "payclick" account can be funded from any Visa, MasterCard or bank account and used for online transactions similar to the way many consumers currently use PayPal.

It is a major addition to the micropayment processing space, which focuses on online transactions under $20, and targets the sector of the buying community under the age of 18. Visa's new service was developed and launched in Australia, where it is estimated that nearly $650 million of online micropayments will occur in 2010 across the gaming, music and bargain retail sectors.

There is no integration yet with PayPal, and payclick accounts have to be "sponsored" by a parent in order for children under 18 to use them. The service started today in Australia with businesses such as BigPond Games and BigPond Music, Apple's iTunes and Habbo offering the payclick option.

On the merchant side, payclick does not require the ecommerce site to store any personal details or financial information. Although it is initially focused on digital content, Visa has indicated that the service can also be used for goods.