PayPal Slashes Micropayments Fees

PayPal has cut its fees for merchants as part of a new micropayments pricing strategy created exclusively for the red-hot digital music sector…PayPal announced the new payment processing rate of 2.5 percent plus 9 cents per transaction — well below the average of 2.2 percent to 2.9 percent plus 30 cents per transaction now available for existing PayPal merchants.

According to the company, the 30 cents per transaction structure did not work for digital music services hawking 99-cent downloads.

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