PayPal to Launch Payment Method for Digital Goods
Oct. 28, 2010
At its Innovate 2010 developers conference in San Francisco this week, PayPal announced a version of its service that will be available soon for digital goods. The alternative payments provider said the new in-context, frictionless payment solution will enable consumers to 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 said the new solution, which it calls the online equivalent of “dropping a quarter in the slot to buy a newspaper or play a video game,” 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 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 for digital goods will be available late this fall. At the conference, Facebook said it 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.