360° Coverage PayPal Develops New Micro-Transaction Payment Strategy
Filed under: News | Technology News
PayPal Develops New Micro-Transaction Payment Strategy
Company wants to replicate the user-friendly process of "putting a quarter in a coin slot"
Oct 27 2010, 3:12pm CDT | by Jordan Cressman
PayPal has developed a new system for payments that it describes as the "online equivalent of dropping a quarter in the slot" of a video game or newspaper machine. It aims to integrate digital payments into online environments in the most seamless way that's ever been done.
It's a tall order, but if it succeeds it could bring more relevance to the country's far-and-away leader in online money transfer services.
While PayPal is popular among people for sending money to friends or buying products on Ebay, when it comes to micro-transactions like buying an upgrade on World of Warcraft or signing up for a subscription service at a website, standard credit card transactions are king. That's the area PayPal is now targeting.
The process of integrating PayPal into micropayment infrastructures will be three-fold: PayPal needs to update its system to allow for simpler ways for third-parties to access its authentication servers, content providers need to update their internal premium service payment systems, and consumers will need to be more active about using PayPal for more incidental purchases.
For PayPal and the content providers, there's a financial incentive. Obviously, it'll bring in more in payment processing fees to PayPal, but promises to charge less per transaction than the standard credit card provider. For users, the value proposition will come in having a universal way to pay for content - without needing to break out the wallet and punch in a credit card number.
"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. 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," said PayPal VP Sam Shrauger in a statement.
In addition to simplifying the process of micro-payment transactions, PayPal wants to continue encouraging users to use the service for global payments - so a content provider in Asia can accept payments from the US without jumping through any extra hoops.
Sponsored Update
Updates
Microsoft extends Azure's reach to China, Japan, and Australia
Source: InfoWorld
Seeking to pad its billion(ish)-dollar Azure business with yuan, yen, and dollarydoos, Microsoft will invest hundreds of millions of dollars to expand its hybrid cloud platform to China, Japan, and Australia. The move, which makes Microsoft the first mul ...
Full article at: InfoWorld
More like this 25 minutes ago
RBS' Mobile App Disrupted by IT Issues
Source: American Banker
Sharp bookkeepers could spot a kite in progress, but, more often than not, they were too hurried to give the ledgers a second look... Editor's Note: Morning Scan will not publish on Monday, May 27, in observanc ...
Full article at: American Banker
More like this 33 minutes ago
Technology News: Put life-saving messages in your pocket today!
Source: Homewood Public Library
Your weather is now set to . You can change this setting at any time. Want to set your local edition? Select your location for more focused local news coverage when you visit al.com. Don't worry. You can change this settin ...
Full article at: Homewood Public Library
More like this 1 hour ago
where to buy
Don't miss ...
blog comments powered by Disqus
Latest stories
AT&T is about to change its rules for the better. Its prepaid regulations regarding GoPhone had previously ignored iPhones as well as 4G devices. However, pretty soon it is going to be adding miscellaneous support features such as 4G HSPA+ and LTE to GoPhone.
Google’s claim that a patent by its Motorola Mobility Unit was infringed upon by Microsoft has lost all credibility in the court of law. Google was making efforts via litigation to ban Microsoft’s Xbox 360. It has failed in its endeavors and the device won’t be banned.
Kick off Memorial Day weekend with Best Buy's 4 Day Hot Deals starting this Friday (5/24) through Monday (5/27).
More From the Web
Viral Stories
- Visit our Homepage for the Latest Rumors, News and Shopping Tips
Viral Videos and Photos
The Hottest Cheerleaders of 2013
Victoria's Secret Fashion Show 2012
