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Tue Oct 26 2010 14:06:08

PayPal Unveils Micropayments and Mobile Solutions at DevCon

By: Ina Steiner

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AuctionBytes is reporting from the PayPal X Innovate Developer's Conference, where PayPal has made a number of announcements. PayPal's Osama Bedier is running demos of third-party developer applications using PayPal - including Financial Times (FT.com), FourthWall's television app - yes, Tcommerce!,  mobile apps and more. 


Here's an excerpt from PayPal's press release on its new Mobile Express Checkout:

PayPal announced the availability of Mobile Express Checkout, a secure two-click checkout experience on a mobile device. Consumers will have the ability to opt-in and remain logged in across apps to make purchasing even faster. The solution is easy to deploy for any merchants who already have Express Checkout on their online stores. Beta merchants have reported double-digit sales growth on their mobile stores after adding Mobile Express Checkout.

Starbucks will use Mobile Express Checkout for quick and easy reload of Starbucks Cards directly from its Starbucks Card Mobile app for iPhone and iPod touch(R).

Beta merchants have reported double-digit sales growth on their mobile stores after adding Mobile Express Checkout. PayPal also announced that guest payments, the ability to accept credit card payments in addition to PayPal, will be integrated into Mobile Express Checkout in the first quarter of next year.

And here is PayPal's press release about its new micropayments plan:

Industry Leaders Facebook and FT.com Using PayPal to Simplify Micropayments for Digital Content

INNOVATE 2010, SAN FRANCISCO - Oct. 26, 2010 - PayPal today announced the upcoming availability of PayPal for digital goods, a new 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. The online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game, PayPal's new solution 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 new solution offers PayPal's competitive fee structure for micropayments, with pricing at 5 percent plus 5 cents for purchases under $12 -- lower than the fees typically charged by payment processors in the digital goods industry. Every time a customer purchases content, publishers and merchants get paid quickly, giving them fast access to their funds. PayPal for digital goods will be available late fall this year. At PayPal's second annual Innovate developer conference, Facebook Chief Operating Officer Sheryl Sandberg announced that Facebook 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, O'Reilly Media, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream announced that they are also using PayPal to monetize the growing opportunity in digital goods.

"Our readers want their news on demand, whether they're on a laptop, a mobile phone or a tablet," said Mary Beth Christie, head of product management at FT.com. "PayPal helps us provide the experience our customers expect, along with flexibility to experiment with payment mechanisms for subscriptions. This gives our customers the flexibility to pay for what they want, when they want."

"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."

Because PayPal for digital goods is built on PayPal's sophisticated fraud prevention engine, developers don't have to worry about building the systems required to protect customers' sensitive financial information. PayPal is already one of the leading payment methods for digital goods, giving merchants global reach with 90 million accounts in 190 markets around the world. The company closed out 2009 with $2 billion of total payment volume for digital goods and reached $1.3 billion in the first half of 2010.

Innovate 2010 is the only developers conference dedicated to payments. The conference, at Moscone West in San Francisco from Oct. 26-27, brings together developers and industry experts to explore three main areas that are changing the way we pay: the phenomenal growth of mobile payments, the rise of social commerce and the move to Internet-enabled local payments.

Follow PayPal on Twitter: #xinnovate, @PayPal and @PayPalX. For additional information please visit www.paypal.com/digitalgoods, or www.x.com.

About PayPal
PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 90 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company and is made up of three leading online payment services: the PayPal global payment service, the Payflow Gateway and Bill Me Later.

More information about the company can be found at PayPal.com. PayPal is headquartered in San Jose, Calif. and its international headquarters is located in Singapore.




Comments (6) | Permalink

Readers Comments

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: GazLanNaThai This user has validated their user name.

Wed Oct 27 08:49:37 2010

It's still not the fractions of a penny for a page of content that was touted with real micropayments in the late 1990s - PayPal's flat 5 cent fee completely precludes that.

There are other online processors out there that charge only the percentage fee, with no flat fee per transaction, that are far more suited to the type of buying (and selling) touted in PayPal's media spin.

Consider ..
Dear FT.com website reader, we want you to read our news and pay for it, because PayPal (the world's largest online payments processor, wants 5-cents + 5% for every transaction, we're forced to charge you 10 cents per article.  If you plan on reading more than 10 news items today, we recommend you do yourself a favour and visit a regular news-stand, buy a print edition, and get all the other content for free.

I can see the mileage in PayPal's version of micropayments for low-ticket tangible goods sellers, even for low-ticket downloadable goods and game credits, but for news items?  No way until they can get the billed page cost under 1 cent - ideally down to tenths of a cent, without the reader having to pre-buy a bundle of credits that the webdevs have had to shoehorn into the code - the database traffic load would be horrendous and chomp hard drives.

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: tired

Wed Oct 27 08:57:56 2010

@ GazLanNaThai said
"There are other online processors out there that charge only the percentage fee, with no flat fee per transaction"

Who are they?

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: Rick1313

Thu Oct 28 17:20:26 2010

I like how PayPal deliberately misleads those users who accept payment through PayPal for goods.

At the bottom of their press release, under ABOUT PAYPAL, they say that...

''PayPal is the faster, safer way to pay AND GET PAID online.''...

The thing is, the ''safer'' parts evaporates for sellers when it comes to charge backs.

How safe can it be when PayPal says that sellers have to take PayPal to court if they want to find out how PayPal defended their interest in a charge back case?

One would think that the payment processor would freely supply the information.

Imagine going to a real court room and have your lawyer say, ''Sorry, you cannot be present. Nor can you have access to what is said in the court room. Oh! And by the way. Be prepared to pay out if I lose. That is, pay the opposing party AND ME.''

In PayPal's case, it would be the charge back fee that PayPal applies when they lose the case.

The legality of having such a clause in a UA comes under the microscope and warrants investigation.

This is for any and all payment processors (PayPal, Paymate, etc.) who acts as a conduit between seller and buyer's payment funds source.

In eBay,inc.'s case, they own a conduit service that they highly promote a seller should have and a buyer should use in paying for a transaction on any eBay site.

Can eBay,inc. say they are working in good faith with the user community (especially sellers) when you deliberately put clauses in a UA that removes the safety that they so highly promote?

So may areas of ecommerce (still in its infancy, as I see it) that have big, gaping holes that vendors, who charge for services, try and avoid their liability in many matters.

Or, at least, they hope that they have convinced the end user that they do not have liability(s).

That is why they have UA/policy clauses that say they may find no party at fault and pay back buyer out of their own pocket.

Or they say that it is a ''courtesy'' refund that they are giving seller.

Affected sellers should robustly seek many such ''courtesy'' refunds from eBay,inc. or they will have the courtesy of taking eBay,inc. to court.

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: Rick1313

Thu Oct 28 17:27:03 2010

Second to last line should read...

Or they say that it is a ''courtesy'' refund that they are giving seller who had funds withdrawn to refund the buyer or buyer's payment funds source.

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: Troglodyte

Fri Oct 29 00:40:59 2010

At last, the filthy truth about NEG MEG WHITMAN.

This is a MUST READ for anyone who either hates or loves Whitman.

http://tiny.cc/d0tu6

PayPal Unveils Micropayments and Mobile Solutions at DevCon   PayPal Unveils Micropayments and Mobile Solutions at DevCon

by: Troglodyte

Fri Oct 29 00:47:57 2010

Email this article to every registered voter you know in California.

Finally, the truth about billionaire Meg Whitman's illegal trading practices is revealed:

http://tiny.cc/d0tu6



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