Among use cases for micropayments with bitcoins, there has been some talk about the digital currency being an alternative to online advertising. The two prevalent models are based on viewers getting paid or paying for content. The latter is based on a concept where micropayments will be in place for viewers to pay minimal amounts or send tips to see content as well as view free ad-based webpages without banners. An example would be the applying of a platform such as Dogetipbot as the payment mechanism to send funds to view content. The advantage of digital currencies, unlike conventional credit card and bank transfer payments, is the ability to cheaply transfer micro funds denominated in pennies or less.
The alternative model revolves around advertisers being the ones paying their viewers. In this example, advertisers pay viewers for permission to present intrusive banners or to receive feedback on new products. A means of operating via such a model is through distribution of micro payments of digital currencies as well as loyalty points which can be redeemed for various products.
Building an online network to incentivize viewers is Flexvee. A Finnish startup, the firm is currently crowdfunding on FundedByMe to raise €300,000 by selling a 6.25% equity stake in the company. If fully funded, it would provide a €4.8 milion valuation for the startup.
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At the core of Flexvee is its network of digital content forged by partnering with various online sites around the world. Viewers of the network can register to receive a Flexvee wallet. Once registered, by viewing network content, engaging with advertisers or gambling with partners, users receive Flexvee-currency which can be used to purchase online goods.
With a userbase in Finland, Flexvee has begun to work on its global expansion, with a focus on Africa and its growing mobile internet numbers. As part of its partnership discussion with major content producers and telecom companies in Africa, Flexvee is also working on integrating Bitcoin within its product. The goal is to provide a liquid currency alternative to its reward-based Flexvee currency which can be redeemed and transferred anywhere in the world.
As a digital currency, bitcoins provide an efficient mechanism for distributing micropayments to reward customers. In a continent familiar with mobile payments such as with m-Pesa, bitcoins also fit well with financial infrastructure trends of Africa, where the majority of the population is unbanked, and can benefit from the usability of bitcoins to both store funds and transfer them around the world.