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Thursday, September 22, 2005

PayPal Micro... a new era for premium digital content?

PayPal has quietly introduced micropayments for digital content. I would actually call it beta program for "mini" payments, because you still can't handle transactions under $0.07.. What they have done is reduce their fees from content priced between $0.07 and $12. These fees are especially noticable in the under $1 range. They don't advertise it on their site.. and they don't let you sign up anywhere directly that I can find. The new fees are ($0.05 + 5%) vs the old fees of (2.9% + $0.30)... Email me (left link) if you want to know more.

Webmasters who take advantage of this should easily be able to reduce their fees for low priced digital content, and still make more money. I've reduced my monthly premium fees for RunABot premium service (The only premium service I currently offer). I am thinking about what else I can offer in this lower price range.. it seems that most regular internet users have a paypal account, and I've already handled completely automated paypal integration for digital payment.. so it should be easy to make a new pay service... the question is what would people want to buy?

A handy chart of fees is here: PayPal Micro Payment Fees

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