TechCrunch reports that PayPal has just introduced a new “micropayment” product, significantly slashing PayPal fees for purchases under $12. At the moment, a $1.00 transaction would involve a PayPal fee of 33 cents, but under the new system it would just be 10—5% of the transaction plus 5 cents. Partners for this new payment scheme include PayPal, Justin.tv, and a number of others.
I’m not sure that this system could really be called “micropayment”, given that the idea behind a micropayment has been a payment of a penny or two at a time—sending a penny under this scheme would still end up costing five more pennies. But this “minipayment” system will still help a lot in terms of making payment for cheap digital items much less expensive in transaction fees.
Cheap digital items such as movies, music, software…or e-books. For that matter, the Financial Times claims 189,000 digital subscribers, and is using PayPal for its subscription payments.
And another new feature could help people who want to self-publish e-books on their own web sites:
PayPal also announced embedded payments, which allows developers to insert direct purchases on any site, including Facebook with only a few lines of code. So purchasers can just click the “Pay with PayPal” button and checkout without having to leave the page. The company demoed the product using a Payvment storefront on Facebook.
While I”m not sure how great an impact it will have on the overall e-book market, it will undoubtedly help smaller independent publishers at least to some extent.