I said it back in May of 2009 when virtual goods was the largest emerging market of the year, and I will say it again, the demand has rapidly increased. This past week the new startup Kwedit launched, positioning itself to open up new revenue opportunities in the virtual goods industry. Their never seen before technology allows users of any age to buy real physical goods and digital goods, by making using a variety of payment methods online to credit their account. The first reason why this is such a noticeable change in the industry is because for the first time users of any age (essentially tapping into the demographic of kids under 16) to pay for things offline based on credit that they earn on the internet. Credit can be earned by paying via credit card, but does not have to be paid immediately. Eventually a virtual credit score is attributed to each user’s account, generated by their algorithms , and kids are able to learn the importance of maintaining a positive credit score because it can effect their purchasing power in the future. Kwedit has teamed up with 7-Eleven to first implement its credit system, and will likely partner with more brands that attract youth in the near future.
More on this promising new payment provider:
The New York Times – Buy Now, Pay Later (Maybe With Your Allowance)