tidbit, a London, U.K.-based online tipping and micropayments service that utilizes bitcoin, has raised £122,080 ($192,289) for 15.03 percent equity in seed funding through investment platform Seedrs. The funding will be used for marketing, incorporating additional features, and building the network of sites featuring tibdit.
tibdit provides a fast and convenient tipping and donation service, giving users the chance to reward others online with payments between 3p and 75p. tibdit takes only 1.5p per transaction. tibdit facilitates such small payments through the use of bitcoin. The service makes sense for charitable organizations, bloggers and artists looking for ways to generate income online.
Bitcoin Facilitates Small Online Payments
tibdit is able to facilitate such small payments through the use of bitcoin. Users – or “tibbers” – can pay in U.S. dollars, pound sterling, and euros. The recipient of the tips or donations will receive the payment instantaneously in bitcoin. The recipients can then convert the bitcoin back into their chosen currency.
Publishers of online content or services of any size, from tiny to mainstream, can collect tibs as either payments for access or as tips and gifts.
Recipients (“tibbees”) install the tibdit button or link to tibdit, on their web pages, according to the company’s website. Users (“tibbers”) create an account, set the value of their tibs (typically around 15p or 25¢), and purchase a bundle of 10 or more tibs, using Visa, Mastercard, or bitcoin. They can only spend the bundles singly.
“Tibbers” need not even be aware that tibdit uses bitcoin to disburse payments. They can purchase tibs in their own currency, using their payment cards.
Unique Service: Payments and Donations
A key advantage of tibdit over other bitcoin-based tipping and donation services is that it allows both payments and donations.
tidbit’s frictionless service – allowing users to pre-purchase their tips or “tibs” in bundles – has been submitted for patent in the U.S.
“We believe that tibdit is set apart from failed and failing micropayment services by addressing the critical-yet-subtle cognitive barriers that have inhibited casual online micropayments so far,” Seedrs notes on its website.