PayPal Unveils Micropayments For Digital Goods, Facebook Signs Up

At the company's annual developer conference today, PayPal debuted its much awaited micropayments product. According to a release issued by the company, the new product is an "in-context, frictionless payment solution that 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."

PayPal equates the product as the online equivalent of dropping a quarter into a game machine. Pricing is set at 5 percent plus 5 cents for purchases under $12, which PayPal says is lower than the fees typically charged by payment processors. For example, under standard PayPal pricing, a $1.00 transaction would incur a fee of $0.33. Osama Bedier, VP of platform, mobile and new ventures for PayPal says the product allows developers and merchants to get the revenue right away.With micropayment pricing, it would cost $0.10. While PayPal for digital goods will be available late fall this year, Facebook will soon integrate the new digital goods payment product.

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