Micropayments in Chrome – Prototype revolutionizes content monetization

Interactions on the internet could experience a new dimension of appreciation in the near future. Micropayments in web browsers such as Chrome enable a revolutionary way of monetizing content on the web.

Internet users open an article that piques their interest; as they read, cents flow – barely noticed – directly from their digital wallet to the authors of the website.

It is a quiet but very meaningful recognition for the creatives behind the scenes who put their work in the digital shop window.

For content producers, this means a direct source of income that grows with every click and every minute a visitor spends on their site. No middlemen, no delayed payouts – just a simple, direct transaction that could add up to a steady income over time.

New payment model as an alternative source of revenue to advertising and subscriptions

This new model would not only offer an alternative source of revenue to advertising and subscriptions, but would also strengthen the relationship between consumers and content creators. By directly supporting their favorites, users could become part of an ecosystem that puts quality and engagement above all else – a win-win situation for everyone who makes the Internet a place of discovery and exchange.

Web monetization could once again be on the cusp of a groundbreaking change: In a message to the Google Group “Blink” on February 2, 2024, software engineer Alexander Surkov presented the idea of an intriguing prototype that would revolutionize the way website operators can be funded through micropayments directly in the browser.

His proposal, based on the web monetization specification, aims to establish a direct and user-friendly method for the transfer of small amounts – a concept that has the potential to reduce dependence on advertising and subscriptions.

Innovative idea in the prototype stage

Surkov’s idea is innovative, but its implementation is still in its infancy. With the planned milestone in Chrome version M127, the realization is getting closer, but still has to go through decisive steps. The technology faces the challenge of passing a comprehensive TAG check and ensuring compatibility and interoperability with existing web standards. This process is essential to guarantee seamless integration into the browser and to ensure acceptance among web developers and users.

Despite the hurdles still to be overcome, the development of this prototype signals significant progress towards a new era of web monetization. It is a hopeful promise for a future in which content creators and website owners could be rewarded for their work in innovative ways.

The prototype presented is based on the web monetization specification, which is described in detail at webmonetization.org. This innovative web technology enables website operators to receive micropayments from users while they interact with their content.

They should be compensated for their work without having to rely solely on advertising or subscriptions. Unique features of web monetization are the possibility of small amounts and the lack of user interaction – users pay or tip for content as they consume it.

Technical implementation through HTML tags

This is made possible by adding the rel=”monetization” attribute to the HTML element. When this element is integrated into a website, it signals the site’s support for web monetization.

In the current version of the web monetization specification, the <link> element is used to integrate web monetization into an HTML document. The rel value must be set to monetization and the href value must be a URL that represents a wallet address activated for Open Payments, for example a payment pointer.

An HTML document can contain several <link> elements for monetization. However, it is up to each provider of web monetization services (WM provider) to decide how to deal with this scenario. It is recommended that the payments are divided equally between the links.

In the first version of the specification, both the <meta> and <link> elements were supported. The <meta> element supports payment pointers in short form (e.g. $wallet.example/alice). Now only the <link> element is supported, which does not allow a short form and requires that payment pointers are specified in URL format (e.g. https://wallet.example/alice).

If a user has set up their wallet for a specific website, the browser automatically starts a web monetization session that enables direct payments from the user to the website.

Web Monetization – Browser-based Website Payments – Revolutionary Payment Infrastructure

Behind Webmonetization.org is an initiative supported by Mozilla in collaboration with Coil and Creative Commons to empower individual creators and promote an alternative business model for online content. This initiative, known as “Grant for the Web”, is managed by the Interledger Foundation, which aims to initiate and support a healthy and dynamic ecosystem of web-monetized tools, content and resources.

Coil is a company that was founded in 2018 to develop a better business model for the web. Coil’s platform was developed to make it easier for content creators, publishers and platforms to monetize their content on the Internet. Coil allows members to enjoy content while transferring real-time micropayments to individual creators and websites via a proposed open web standard called Web Monetization. Members pay a monthly fee that provides access to this monetized content while directly supporting the creators.

Coil has also launched the “Grant for the Web” in partnership with Mozilla and Creative Commons to promote open, fair and inclusive standards and innovation in web monetization. However, the company decided to discontinue its products and development efforts in 2023 and handed over responsibility for the further development of Interledger to the Interledger Foundation. Coil has set itself the task of offering content creators alternative sources of income beyond advertising and subscription-based models.

The Interledger Foundation is an organization dedicated to building an open and fair financial ecosystem and supports the Interledger Protocol, which serves as the foundation for web monetization technology. This organization drives the development of open standards and protocols for payments on the Internet in order to connect different payment networks and reduce the costs of money transfers.

Webmonetization.org itself is a platform that presents the Web Monetization API. This enables websites to automatically and passively receive payments from visitors who use web monetization-enabled browsers or extensions. The idea behind this is that web monetization is proposed as an open web payment standard that enables streaming payments for creators’ work on platforms where monetization is enabled. The technology aims to address the long-standing lack of money transfer options on the web platform by providing an open, native, efficient and automated way to compensate creators and pay for content.

The underlying technology for these payment flows is the Interledger Protocol, which connects different payment networks and offers a simple, interoperable and currency-neutral method for transferring small amounts of money. This paves the way for “streaming money”, which enables more use cases for web monetization.

How does this revolutionary system of monetizing content on the web work?

The content monetization system as proposed in the prototype is based on the idea of using micropayments as a way for content creators and website operators to earn money directly through user interaction with the content.

And this is how web micropayment could work:

Integration in the browser

Web monetization would be integrated into the browser, typically by extending the HTML standard. In the case of Chrome, this would be done by introducing a new feature that enables micropayments while browsing.

Implementation of the HTML tag

Web developers would mark their pages with a special link tag that refers to a digital wallet that can receive payments. This tag would be placed in the source code of the website. And so one thing leads to another…

Wallet setup

Users who want to consume content would set up a digital wallet and top it up with money that can be used for micropayments. This wallet would be linked to the browser or a plugin.

Automatic payments

When visiting a website that is configured for web monetization, the browser would automatically start a payment session that sends money from the user’s wallet to the website operator’s wallet in real time.

Micropayments

The payments would generally be very small, in the sense of micropayments, and would be calculated based on the user’s interaction with the content or the time spent on the site.

Financing the system

The basic idea is that users pay for the content they consume, similar to a subscription, but on a per-use basis, i.e. based on web-based interactions. The system could be self-financing by retaining a small percentage of transactions as a fee.

Preparation for wallet implementation

This could indeed be a preparation for a broader wallet implementation. In the future, browser-based wallets could be used not only for micropayments but also for other types of online transactions.

Objectives of the prototyping of web-based micropayments

The goal of the prototype is to create a user experience that is seamless and free of intrusive advertising, while ensuring fair compensation for content creators. The challenge is to find a balance between user-friendliness, security and a sustainable business model.

The motivation behind this technology is to provide a new revenue model for content creators and website owners that allows them to profit from their work while users consume their content. It also encourages voluntary user contributions such as tips, which directly reward creators for the value their content provides.

The technology is therefore still at an early stage. According to current statements, the integration should not pose any risks in terms of interoperability and compatibility; Gecko or WebKit have not yet responded.

However, the developer teams behind the two other major browser engines, Gecko and WebKit, are also likely to be very interested as soon as Chrome implements this. Gecko is the engine that powers Mozilla Firefox, while WebKit forms the basis for Apple’s Safari.

In principle, broad support is often crucial for the success and spread of new web technologies, as it ensures compatibility and functionality across different platforms and devices.

However, a small number of web developers have already configured their websites for this feature in anticipation of web/browser support. The previous method of setting up web monetization via the HTML:meta tag achieved an adoption rate of 0.03% on the web.

This prototype marks a potentially revolutionary step in the way content can be monetized online and could provide a welcome alternative to traditional methods of ad funding and subscriptions. With the upcoming implementation and further development, this technology could revolutionize the options for monetizing content on the web!

Micro payments & wallet-based identities

Web monetization creates a seamless connection between the browsing experience and financial transactions by linking wallet identification with payment processing. Users who consume monetized content have a digital wallet that has a unique ID.

This ID, also known as a payment pointer, is integrated by the website to be monetized via a tag. When a user with a web monetization-enabled wallet accesses such a website, the browser recognizes the tag and automatically forwards micropayments to the content creator’s wallet.

These transactions are real-time and allow the content creator to get paid directly for their content, while users enjoy an ad-free and subscription-free experience. The technology in the background ensures that payments can be processed across networks and currencies, creating an open and alternative ecosystem for online transactions.