Microtransactions, also called Micropayments, are small transactions found in online games and services where a user pays a one-time fee for access to a piece of exclusive content (Virtual Goods). This could be pretty much anything--a cute new hat for your Virtual Paper Doll, a cool new piece of armor, a temporary power-up, whatever. It could even just be a shortcut to content you could access for free--for example, you might pay real-world money for a cache of the in-game currency. The Virtual Goods can be bought directly, but it's also common for your real-world money to buy some amount of special in-game currency to spend in a special shop.
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