PayPal Expands Micropayments For Content

PayPal is extending its micropayments service to include forms of low-cost digital content beyond music (it is working with iTunes and Napster)…new content would include video games, online greeting cards, news articles, mobile phone content, and music.

Release: Under new pricing for payments of less than $2, merchants will pay 5 percent of the transaction plus 5 cents per transaction. Because of the reduced fixed fee, merchants can save 40 to 60 percent when processing low-cost payments, compared to the industry’s current payment processing rates of approximately 2 percent plus 20 to 30 cents per transaction, says the company.

A PayPal spokesperson said the eBay company wants to replicate its success with the music business in other verticals.

Related:

Napster Enables Payments Through PayPal

PayPal Slashes Micropayments Fees

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