Spotpass raises seed round to jumpstart micropayments for Australian media
SYDNEY – Australian micropayments start-up, Spotpass, has announced it closed an oversubscribed first capital raise with Artesian leading the round along with a number of private investors.
Spotpass, which allows consumers to access paid content and support their favourite publishers for 99c or less, was founded by card payment and billing industry experts Garry Duursma, Doug Howe and Mark Lillywhite. The start-up generated significant interest from the VC community and is using the funding to accelerate its launch in Australia and New Zealand, with a growing list of publishers already on board.
Ali Clunies-Ross, Portfolio Manager, Artesian, said, “News hounds and casual readers alike will welcome the chance to pay for content and support creators with Spotpass in as little as two clicks. We think bringing the pay-as-you-go model to online content is long overdue and has far-reaching applications beyond media to all forms of content.”
Spotpass has caught the attention of publishers in Australia and New Zealand, who are searching for new ways to generate revenue directly from readers as online privacy laws reshape the digital advertising landscape and reduce the ad dollars flowing to publishers.
Garry Duursma, Chairman, Spotpass, said “Right now, only 14% of Australians are paying for news. We see Spotpass as an important tool for publishers to monetise the 86% of their audience that currently don’t pay. We’re also empowering consumers so they can access content in a fast, secure and low-cost way or support publishers based on what they consume.”
With Spotpass, publishers can accept small payments from anyone who visits their site and generate new revenue to support their existing business models. The company recently announced the addition to its board of Bruce Davidson, the former CEO of Australian Associated Press and current CEO of Mediality, along with the appointment of Chief Revenue Officer Adam Kershaw, the former New York Times executive who led its Australian and New Zealand operations.
Doug Howe, CEO, Spotpass, said “Consumers frequently tell us that they want options to pay for what they read, when they want, without having to commit to a long-term subscription. Spotpass gives readers that option by being super low friction, low cost and fast. We allow publishers and consumers total flexibility around how they sell, support and pay for content.”
Spotpass is a micropayment technology enabling a convenient financial relationship between producers and consumers of media. The technology is fast and frictionless for consumers to instantly access paid content, and offers publishers endless possibilities to monetise their content from the long tail of casual consumers.
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