PayPal Hopes To Make Micropayments Easier Online

PayPal will be instituting a micropayment system by the end of this year. The system works by compiling small purchases made at different times into one larger purchase. PayPal believes this will not only benefit the purchaser but it will increase bottom line by increasing the company’s sales significantly.

Online micropayments are not new. They emerged in the 1990s but never really caught on, in part because early attempts often had people spend tiny amounts of money - a dime here, a quarter there - instead of the currently popular model where you buy a bunch of credits up front and use them a little at a time. But consumers are now much more used to the idea of buying virtual goods in online games and downloading content like songs and videos, and this change in behavior could benefit PayPal.

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