Stellar (XLM) Micropayments to the Rescue for EU Digital Publishing House Alex Springer via SatoshiPay Wallet
Journalism has been unkind and relentless place, especially for online publishers. Most publications are free to read, leading to paywalls for companies to bring in revenue to keep their businesses afloat.
However, there are limits to how much the average consumer is willing to spend on their news publications, which is shown through the 1,000 jobs that were lost on HuffPost, Buzzfeed, and Gannett in this week alone.
One solution brought to the table is the concept of using micropayments, which is exactly what SatoshiPay wants to achieve. Collaborating with the largest online publishing house in Europe – Axel Springer – the platform aims to charge a micropayment for consumers to have access to news content, which will be available to pay for on the Stellar blockchain, according to a recent article by The Block.
— SatoshiPay (@SatoshiPay) January 31, 2019
As The Block points out, this is the first major partnership for SatoshiPay to participate in, despite having been in the crypto space for five years now.
Their application of the Stellar blockchain makes it possible to securely process payments within seconds, and users are able to purchase their Lumen tokens in bulk. Axel Springer’s senior vice president of new business, Dr. Dr Valentin Schöndienst, said,
“Blockchain payments can significantly reduce transaction costs and thus enable new monetization systems for content. SatoshiPay offers a turnkey solution that allows us to instantly use blockchain technology and offer it to our customers.”
The new micropayments will be made available in the SatoshiPay payment services, which will be integrated by the Spring when it goes live. All payments will be made in Stellar Lumens, and SatoshiPay has already setup three full nodes with Stellar earlier this month in preparation.
Though this is the first major partnership in the collaborative sense for cryptocurrency and SatoshiPay, the company has already held media partnerships, like with City A.M. and The Register.
By making it possible to use micropayments, consumers may feel more likely to pay a nominal fee to view content, rather than a substantial subscription price for a single article that interests them. However, that theory is based on the assumption that the user finds something they want to read at all.