PayPal unveils new payment solution for digital goods
Posted on 28-Oct-2010 07:39
Filed under: News
PayPal today announced the upcoming availability of PayPal for digital goods, a new in-context payment solution that lets consumers pay for digital goods and content in as little as two clicks, without ever having to leave a publisher’s game, news, music, video or media site.
The company say this is the online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game, a new solution solves a key problem for the digital goods industry by offering a faster, safer and more cost-effective way to send and receive micropayments globally.
The new solution offers PayPal’s fee structure for micropayments, with pricing at 5 percent plus 5 cents for purchases under $12 -- lower than the fees typically charged by payment processors in the digital goods industry. Every time a customer purchases content, publishers and merchants get paid quickly, giving them fast access to their funds.
PayPal for digital goods will be available late fall this year. At PayPal’s second annual Innovate developer conference, Facebook Chief Operating Officer Sheryl Sandberg announced that Facebook will integrate PayPal’s new digital goods payment flow to make PayPal the way to make purchases on Facebook.
Several additional companies, including Autosport.com, FT.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream announced that they are also using PayPal to monetize the growing opportunity in digital goods.
“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 monetize premium digital content around the globe.”
PayPal is also working in the mobile front, having announced new mobile technologies and business relationships.
First is the Mobile Express Checkout, a secure two-click checkout experience on a mobile device. Consumers will have the ability to opt-in and remain logged in across apps to make purchasing even faster. The solution is easy to deploy for any merchants who already have Express Checkout on their online stores.
A new location-based feature allows PayPal iPhone app users to find businesses accepting PayPal wherever they happen to be. Merchants can attract nearby customers to their stores by sending deals and promotions to customers’ phones, and customers can pay for goods or services at local outlets with PayPal or a BlingTag from Bling Nation. This new local service is initially available in beta in the San Francisco Bay Area.