1. Psychologically, people do not want to pay small amounts. People think that people are more likely to pay small amounts. The reality is that even though amou

1. Psychologically, people do not want to pay small amounts. People think that people are more likely to pay small amounts. The reality is that even though amounts can be very small, cognitive cost of making a decision to pay is great and stops people from spending that way. Even if we had micro transactions with zero fees, it wouldn't take off. 2. Most people use credit cards / debit cards / paypal. Processing fees for those are just too big and Visa etc. is not interested in changing their business model. So you would have to built an alternative payment system that doesn't interface very often with banks / credit cards etc. but that's pretty much impossible. And if you built it just for micro transactions, people wouldn't use it because #1.