PayPal unveils micropayments, Facebook integration

Oct 26, 2010
PayPal logo

PayPal unveiled a new micropayments service on Tuesday that makes it easier to buy digital goods and announced an integration with social networking giant Facebook.

PayPal said the new micropayments system "lets consumers pay for digital goods and content in as little as two clicks, without ever having to leave a publisher's game, news, music, video or media site."

It described the service, which will be available later this year, as the "online equivalent of dropping a quarter in the slot to buy a newspaper or play a videogame."

"PayPal's new solution solves a key problem for the digital goods industry by offering a faster, safer and more cost-effective way to send and receive micropayments globally," the online payment giant said.

"Every time a customer purchases content, publishers and merchants get paid quickly, giving them fast access to their funds," said in a statement released at its two-day developers' conference here.

PayPal said its fee structure for micropayments was five percent plus five cents for purchases under 12 dollars -- "lower than the fees typically charged by payment processors in the digital goods industry."

Facebook chief operating officer Sheryl Sandberg said the social network will integrate PayPal's new digital goods payment service to make PayPal the way to make purchases on .

PayPal, which is owned by online auction giant eBay, said a number of other companies have also signed up for the service including Autosport.com, FT.com, GigaOM, Justin.tv and Ustream.

"The decision to purchase digital goods and content usually happens on impulse, so the act of paying needs to be as quick as that impulse," Sam Shrauger, PayPal's vice president of global product strategy, said.

"PayPal for digital goods is an ideal solution for game developers, newspapers, bloggers, media companies, and anyone who is looking to monetize premium digital content around the globe," Shrauger said.

EBay chief executive John Donahoe said meanwhile in an interview with financial news network CNBC that he expected PayPal to eventually be a bigger business than .

Explore further: Google to help boost Greece's tourism industry

add to favorites email to friend print save as pdf

Related Stories

EBay CEO envisions PayPal in more offline settings

May 12, 2010

(AP) -- The waiter asks: "Will you be paying by cash, credit or PayPal?" The man in charge of PayPal's parent company says you shouldn't be surprised to hear that question within a year.

PayPal opening doors to outside developers

Oct 21, 2009

PayPal plans to throw open the doors of its software platform to enable outside developers to build innovative tools using the online financial transaction service.

Recommended for you

Fitbit to Schumer: We don't sell personal data

31 minutes ago

The maker of a popular line of wearable fitness-tracking devices says it has never sold personal data to advertisers, contrary to concerns raised by U.S. Sen. Charles Schumer.

Should you be worried about paid editors on Wikipedia?

4 hours ago

Whether you trust it or ignore it, Wikipedia is one of the most popular websites in the world and accessed by millions of people every day. So would you trust it any more (or even less) if you knew people ...

Philippines makes arrests in online extortion ring

6 hours ago

Philippine police have arrested eight suspected members of an online syndicate accused of blackmailing more than 1,000 Hong Kong and Singapore residents after luring them into exposing themselves in front of webcam, an official ...

Google to help boost Greece's tourism industry

18 hours ago

Internet giant Google will offer management courses to 3,000 tourism businesses on the island of Crete as part of an initiative to promote the sector in Greece, industry union Sete said on Thursday.

Music site SoundCloud to start paying artists

Aug 21, 2014

SoundCloud said Thursday that it will start paying artists and record companies whose music is played on the popular streaming site, a move that will bring it in line with competitors such as YouTube and Spotify.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

jamey
not rated yet Oct 27, 2010
Yeah, I guess this *IS* micro-payments, when you're a bleepin' millionaire. Meanwhile, Linden Labs actually *has* a micro-payments system, where I can freely give someone say a penny, or a dime (although I'm actually giving them 5 L$, or 25 L$) You can make all of the exchanges of L$ you want, and not get charged a penny until you actually go to take them out of the game into RL money. Their set-up seems to suggest a floor on payments on the order of a dollar or so. And sometimes, that's just more than you have to give.