PayPal promotes new 10 cent to $12 micropayment service

Continuing on from its announcement of its Mobile Express Checkout service, which it expects to help it process $700 million in mobile transactions during 2010, PayPal has unveiled a new micropayment system.

Labelled 'a new in-context, frictionless payment solution', it's designed to handle small transactions in a more cost effective manner.

Small cut

The basic set up works off a tariff of 5 percent plus 5 cents for purchases under $12, enabling the purchase of cheap digital content. Its two click method is also designed to ensure users don't have to leave the seller's website.

"The decision to purchase digital goods and content usually happens on impulse, so the act of paying needs to be as quick as that impulse," said Sam Shrauger, PayPal's vice president of global product strategy.

"PayPal for digital goods is an ideal solution for game developers, newspapers, bloggers, media companies, and anyone who is looking to monetise premium digital content around the globe."

Due to available become later in 2010, the service will further reinforce PayPal's position in terms of online, and mobile, payments.

It currently hosts 90 million accounts in 190 countries, and processed $2 billion in terms of digital goods in 2009. Its total for the first half of 2010 was $1.3 billion.

[source: PayPal]