PayPal hopes to make micropayments easier online.

For merchants, it would mean small payments had smaller transaction fees… about 50% smaller in some cases! That’s especially good if you’re using a strategy like $7 Secrets where it would save 17 cents. That’s not a big deal on any one transaction, but every penny counts long term. It represents some companies’ entire profit margin depending on the business!

The company has gotten its feet wet in the world of micropayments, too, offering merchants a micropayment option that websites can use, charging a fee of 5 percent plus 5 cents for small transactions, which it sees as generally less than $10 apiece. This way, a $3 micropayment for a news article would cost the merchant 20 cents in transaction fees; under PayPal’s normal fee schedule for items that cost up to $3,000, it would cost about 39 cents

For customers it will mean only have to spend what they need at any given time instead of buying “credits” in chunks of $10 that may never be used and essentially wasted.

Click here to get some micro payments headed your way!

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