Micropayments (commonly referred to as Microtransactions) are low cost transactions in which players pay small quantities of money in exchange for a virtual good or service. The type of virtual good received upon payment varies widely from game to game. The player may receive an in-game item, in-game currency (gold or points), or access to otherwise restricted game features (levels, vendors, etc).

Microtransactions are commonly seen in games like League of Legends(LoL) and Defense of the Ancients (DOTA).

Examples of usage:

  • “Microtransaction funding models are becoming more popular in today’s video games.”
  • “Microtransaction models make money hand-over-fist.”
  • “I’ve spent so much money on LoL….stupid Microtransactions.”

References: Retrieved on 6/8/2012.

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