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.

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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. You can connect with him on Twitter @ckandroid.