At the company’s annual developer conference today, PayPal debuted its much awaited micropayments product. According to a release issued by the company, the new product is an “in-context, frictionless payment solution that lets consumers 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.”
PayPal equates the product as the online equivalent of dropping a quarter into a game machine. Pricing is set at 5 percent plus 5 cents for purchases under $12, which PayPal says is lower than the fees typically charged by payment processors. For example, under standard PayPal pricing, a $1.00 transaction would incur a fee of $0.33. With micropayment pricing, it would cost $0.10. While PayPal for digital goods will be available late fall this year, Facebook will soon integrate the new digital goods payment product.
The company also announced a number of other partners including Autosport.com, FT.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream.
As we’ve written in the past, this product is huge for the payments industry because it can be used for an easier payments experience across a variety of industries, including gaming, online content and premium video.