Micropayments and Friending Facebook Looks Good For PayPal

A micropayment is the best method of getting users to pay. It is easier, faster and can be integrated into any service so well, users might just think it is a part of the service. It is seen that micropayments for a part of a service pays off better than paying for the service itself (look at all Facebook’s social games).

Facebook still has scope for a better micropayment service and PayPal just filled the void with its PayPal for Digital Goods.


The new solution from PayPal is a two-click process and does not even need you to leave that page. It was hinted in October last year. At just 5% + 5 cents for payments under $12, the payment service is charged at a minimal cost. This payment for micro amounts looks cheap and has huge conversion rates from users.

The PayPal labs defines this process as,

Save big with PayPal’s micropayments price – designed for merchants who process low-value transactions (typically under $10 in value).
Sign up for micropayments pricing and you’ll get the 5% + 5c rate with all of PayPal’s payment solutions, like Buy Now buttons, Express Checkout, Website Payments Pro, Send and Request Money (learn more about our different payment solutions )

PayPal outlines the payment scheme as,


According to PayPal, this payment process is the:

online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game.

With a lineup of big-shot partners like  Facebook, Autosport.com, FT.com, GigaOM and Ustream, the new payment scheme is on a perfect launchpad.

Published by

Chinmoy Kanjilal

Chinmoy Kanjilal is a FOSS enthusiast and evangelist. He is passionate about Android. Security exploits turn him on and he loves to tinker with computer networks. He rants occasionally at TomsVPN.com. You can connect with him on Twitter @ckandroid.