Gartner says that PayPal is the 600lb Gorilla for Micropayments

Silicon yesterday carried a story on a new report from Gartner Analyst Avivah Litan on PayPal's new Micropayment System. In her note, she says that vendors should abandon other payment systems when it comes to micropayments and adopt PayPal.

Just why do the Banking industry feel that we will have just one solution for payment? I cannot see the solution to micropayments being something that is just available for online payments. The system that will work for micropayments will have to include some form of mobile payments and on my reading I cannot see PayPal making any headway in this space.

Micropayments is an important issue and the system that works will have to be available on multiple platforms in realtime with some form of dispute resolution. Failure to address all these areas will mean that we will not have found THE solution that works. Thinking ahead the system needs to work not just in the economies that are dominated by credit based solutions but also in cash societies, this in itself means that we are unlikely to discover a solution in the US.