BitPass

Online payment system for digital content
Startup Cemetery
GENERAL INFORMATION
Category:
Finances
Country:
United States
Started:
2002
BUSINESS FAILURE
Outcome:
Shut Down
Cause:
Competition
Closed:
2007
FOUNDERS & EMPLOYEES
Number of Founders:
1
Name of Founders:
Kurt Huang
Number of Employees:
50-100
FUNDING
Number of Funding Rounds:
2
Total Funding Amount:
$13.3M
Number of Investors:
6

What was BitPass?

Bitpass was a company that gave people a platform to make micropayments online. These payments were ranging from one cent to a dollar. BitPass developed an online payment system for digital content and services like the downloadable music and PDFs. Mperia, an online music store founded in 2003, was one of its greatest projects for unsigned artists. BitPass customers included giants such as Disney and Microsoft.

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Why did BitPass fail and shut down?

The main reason for closure as stated in their email was competition. The newly rolled Google Checkout payment system, which was offered for free, made BitPass business superfluous. Bitpass CEO originally hoped to get their micro payment features integrated into Google checkout but that never happened. After raising about $12 million and acquiring one of its competitors Bitpass journey came to an end in 2007.

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