Last week PayPal announced that it has opened its micropayments solution to the public globally. In essence, it’s a better way for developers, content creators and publishers to charge for small amounts of content quickly. PayPal has designed this new service to be more useful for small, quick payments instead of the traditional way of purchasing and paying for services with PayPal where you have to leave the original website you were on.
The process is relatively simple for the consumer. Once they see the “Pay with PayPal” -button on the service at hand, a small pop-up opens with the payment details. If the user is logged in to PayPal, all the relevant payment information is already shown, waiting for the approval of the user.
If however, the user is not logged in, she can do so in the pop-up or pay for the service as a guest. This naturally requires a bit more information to be entered. However, PayPal has a relatively wide reaching global user base which means many people already have an account and thus completely avoiding this step.
For reference, the company has more than 94 million accounts in 190 markets. In 2010 the total payment volume for digital goods through PayPal was $3.4 billion. Thus it’s certainly one of the most important payment providers to take into account when expanding overseas with your service offering.
PayPal has priced the use of the micropayments solution somewhat affordably as well. The basic pricing is 5% of the sum at hand plus 5 cents per purchase for items under $12.
Naturally, PayPal’s offering is not the only one out there, but a good contender to the competition out there for similar kinds of small payments.
More information on the selling of digital goods and micropayments can be seen from the PayPal website.