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PayPal annouces micropayments

for digital music authors and providers

     

amznVibe

4:44 pm on Dec 8, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



An extension of PayPal's existing payment service for online merchants, PayPal's new micro-payment fees are designed to give the digital music industry a more cost-effective payment solution for downloadable music.

The new fees will allow these merchants to process payments at a rate of 2.5% plus $0.09 for each transaction.

press release [home.businesswire.com]

MarshallClark

8:41 pm on Dec 8, 2003 (gmt 0)



That works out to about $.11 for a $.79 song download - a 13.8% processing fee. That still sounds a bit steep to me.

amznVibe

10:48 pm on Dec 8, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



It's better than Apple's published costs for iTunes I believe (13 cents per dollar)?

Lovejoy

12:04 am on Dec 9, 2003 (gmt 0)

10+ Year Member



Where was this announced? I don't see it on my PayPal page.

amznVibe

12:10 am on Dec 9, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



You won't find it announced to the consumer end of PayPal.

There's a little more information here [internetnews.com].

Apparently right now it's only for sites with 3000 or more transactions per month under $5 each.

What I really like is that they are going to make PayPal signups really easy and available on the merchant end, which means more instant checkout qualified customers for smaller sites.

sun818

12:18 am on Dec 9, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If Paypal held on to merchant's money for two weeks then charge a fee based on the total for that period, the rate would be better for merchants. Meanwhile, Paypal could make money off the float. ;)

Lovejoy

12:24 am on Dec 9, 2003 (gmt 0)

10+ Year Member



Thanks amznVibe,

It would work out great for me as I have several information
products in the $1.39- $3.95 range. Making the sign up
easier will certainly boost sales from the impulse buyer.

jacker

9:10 pm on Dec 10, 2003 (gmt 0)

10+ Year Member



Does anyone know if PayPal will offer the same fraud screening for micropayments as they do for current transactions?

Cheers
James

pbreit

12:58 am on Dec 11, 2003 (gmt 0)

10+ Year Member



The fraud screening will remain the same. The only current modification is to the fee schedule.

jatar_k

1:01 am on Dec 11, 2003 (gmt 0)

WebmasterWorld Administrator jatar_k is a WebmasterWorld Top Contributor of All Time 10+ Year Member



It seems with the 3000/mth they are only targetting medium to large merchants. The small ones still pay the higher fees I assume. Hard to say how to classify the sizes though.