PayPal Lowers Micropayment Fees For Digital Content, Facebook Signs Up
PayPal is making direct artist to fan sales easier and more profitable with a new micropayment system that lets consumers pay for low cost digital goods in as few as two clicks without leaving the seller's site. Facebook was one of the first company's to sign on to the new service which, when available later this year, will offer fees of 5% plus 5 cents for purchases under $12. That's just 10 cents on a 99 cent download sale.
Several additional companies, including Autosport.com, FT.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream announced that they are also using the new PayPal micropayment system. PayPal is already one of the leading payment methods for digital goods. The company closed out 2009 with $2 billion of total payment volume for digital goods and reached $1.3 billion in the first half of 2010.