Paypal has been working with the likes of Apple and Napster to enable micropayment systems for music downloads. But, apparently, they’re expanding micropayments for other items like news articles, video games, and more. And, as an incentive to merchants, they’re lowering their fees for such transactions.
An extension of PayPal’s existing payment service for digital music providers, PayPal’s new micropayments pricing is designed especially for payments less than $2. The new fees will enable merchants to process payments at a rate of 5 percent 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.
Also See: Official Paypal Release