PayPal, the global online payment service, today announced new
micropayments processing fees for digital goods.
The new pricing will provide merchants with a more affordable way to
process payments for low-cost digital content such as video games, online
greeting cards, news articles, mobile phone content and digital music.
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.
PayPal's new fees enhance the convenience of downloadable digital content.
Customers can buy as many or as few items as they choose using any funding
method - including credit cards, bank accounts and stored PayPal balances.