BitPass failure

BitPass

Online payment system for digital content

Description

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.

Stats

Category
Finances
Country
United States
Started
In 2002
Closed
By 2007
Number of Founders
One
Name of Founders
Kurt Huang
Number of Employees
Between 51 And 100
Number of Funding Rounds
2
Total Funding Amount
$13.3M
Number of Investors
6
Precise Cause of Failure
Competition
Business Outcome
Shut Down

Cause of Failure

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 micropayment 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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