PayPal Joins Micropayments System with Facebook, FT

PayPal has partnered with Facebook and unveiled a new micropayments system for digital goods and services. PayPal unleashed the system at the firm's annual X Innovate conference.

The new system, that launches next year, will allow a two-click purchase of digital goods like games, music or video content from websites, including FarmCash within Zynga on the Facebook platform.

According to Finextra.com, Facebook has agreed to integrate the technology in its site and is joined by Autosport.com, FT.com, GigaOM, Justin.tv, Ooyala, Plimus, Tagged, Tyler Projects and Ustream.

"Our readers want their news on demand, whether they're on a laptop, a mobile phone or a tablet. 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," Mary Beth Christie, head, product management, FT.com said.

Perhaps the whole importance of the micropayments system is to quicken the payment process; slow transactions have been responsible for users paying online to abandon purchases.

PayPal's vice president of global product strategy reiterated this strategy, saying in a statement that as users generally make a purchase on impulse, the system should reflect this with speed.

According to iblogauto.com, "Google was so enamoured of Facebook's success with Credits that it acquired virtual currency startup Jambool to flesh out itsGoogle Me social software strategy.

This healthy rivalry means reliable payment platforms such as PayPal are infine position to build secure software for companies looking to sell virtual goods. PayPal is also expected to provide paying punch to Google's Android Market soon," the blog said.

Related articles:

Out of the ashes - Lead Features | 10 Years On: When the bubble burst | Trust me, I'm a banker - Risk & Security | Is cash becoming extinct?

Like this article? Get the RSS feed: