Micropayments easier online with PayPal
| August 19, 2010 | Posted by admin under Business |
Online micropayments are not new. They emerged in the 1990s but never really caught on, in part because early attempts often had people spend tiny amounts of money—a dime here, a quarter there—instead of the currently popular model where you buy a bunch of credits up front and use them a little at a time.
PayPal offers support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions for Business and Premier accounts. This feature is offered at a special rate of 5% + $0.05 per transaction.
PayPal, which is owned by eBay Inc., plans to make that work by compiling consumers’ transactions. Someone might buy $10 worth of news articles, or goods in an online game, before getting billed by PayPal. PayPal thinks this will appeal more to consumers while benefiting merchants and PayPal, too.
Merchants who wish to use PayPal’s micropayments pricing need to open a new PayPal account through this account registration page.
Merchants who receive both macro and micro payments should maintain two separate accounts:
- An account to apply their standard rate to macropayments.
- An account to apply the micropayments rate to their micropayments.
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