P ayPal to Launch Micropayment Service by Yearend
Aug. 23, 2010
PayPal recently announced it will introduce a payment product that will enable micropayments online without using a payment card. PayPal said the new product, which it plans to launch by the end of the year, will compile consumers’ transactions until they reach a certain level. PayPal President Scott Thompson told the Associated Press that the costs associated with using credit cards generally has prevented merchants (usually online gaming sites that might charge $.50 or less for a digital item within a game) from taking credit or debit cards for individual transactions. They usually make microtransactions by purchasing a chunk of credits and spending them within the game. Thompson thinks consumers want to be able to buy items one at a time, though. And with this in mind, he said PayPal intends to allow purchases in small increments. “The whole intent is to keep you in the experience, don’t force you to do anything else and keep it economical for all parties,” he said.