PayPal announces new microtransaction service

Works in-game, takes 5% of sub-$12 purchases; Facebook confirms plans to use it

eBay's payment wing PayPal has announced a new service dedicated to the purchase of virtual goods.

The microtransaction system will use existing PayPal logins, but enables in-game and in-site payments with minimal clicks and without leaving the host application or page. Mobile devices will also be supported.

Paypal's fees for the service are 5 per cent plus 5 cents, so long as the transaction comes in at under $12.

The service will be deployed on Facebook, confirmed the social network's COO, Sheryl Sandberg.

"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."

PayPal already boasts 90 million accounts worldwide, and last year processed over $2 billion in payments.

More details on the digital goods service, which is billed as "coming soon", are available here.

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Latest comments (4)

Dave Mitchell Founder, Two Tails7 years ago
I wonder if Google would integrate this into Android, which is lacking any kind of micro-transaction payments system?
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Sam Brown Programmer, Cool Games Ltd.7 years ago
Not, I suspect, as long as Google Checkout exists. In fact, I strongly expect Google Checkout microtransactions to appear shortly. :)
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Geraint Bungay Online Publishing Director, Supermassive Games7 years ago
The question is what kind of integration will this take to work within the game?
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Philip Wilson Project Manager/QA 7 years ago
@Dave & Sam: Actually rumors have been floating around for a while now that Google is actually supporting the option of letting people use PayPal for Android Market purchases:

[link url=

Honestly though I see no problem with using Google Checkout then using such a shady service like PayPal. Paypal has a known history of screwing people over who sell items legitimately but then find out later that the purchaser used a stolen credit card.
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