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Archives, Media, Internet

Micropayment Enabler Tipjoy Gets Funding



Tipjoy, a Cambridge, Massachusetts, company that aims to solve the online micropayment problem, has received series A funding from a syndicate that includes Betaworks, backer of Twitter, Iminlikewithyou and covestor.

Tipjoy did not specify the size of the round, but co-founder and Chief Executive Abby Kirigin said in an e-mail that it was less than $1 million.

Micropayments have long been a problem for online vendors. Users willing to pay a small amount for content or digital products may balk at investing the time and effort to enter credit card information.

Tipjoy seeks to reduce the friction in the system by providing a web site widget that lets providers set a token price, say $.99 or even $.10, and allow users to pledge the payment by entering their e-mail address.

Tipjoy later reminds users that a payment was pledged and lets them pay through a PayPal account. There is no obligation, however, and a user can reverse course and choose not to pay.

Ms. Kirigin, who is married to co-founder and Chief Technology Officer Ivan Kirigin, said that the company plans to use the funding to add employees and features. The Kirigins met as undergraduates in the computer science department at New York University.

Joining the funding round were: the Accelerator Group, David Shen Ventures, Chris Sacca, Michael Sikorsky, Taavet Hinrikus, and Ron Bouganim.

What might prompt consumers to hit the Tipjoy button? “Comics which made you laugh, amazing videos, MP3s of great local bands, genuinely useful web apps,” the Kirigins said in a blog post.