PayPal Announces New Micro-payment Scheme

ebay's online payment service PayPal has released a new digital goods micro-payment service, with social networking platform Facebook as its first partner.

According to the company, the PayPal for Digital Goods service will allow customers to pay for digital goods in just two clicks. Some of the first things that users will be able to buy are FarmCash on Zynga's popular FarmVille game on Facebook.

The service was launched during the PayPal X conference along with other PayPal features such as embedded payments and enhanced mobile payments systems.

The company highlighted the Facebook partnership during the launch of the service, with Sheryl Sandberg, the chief operating officer of Facebook claiming: “More people play games on Facebook than on all of the consoles combined.”

The new service will allow Facebook's 500 million plus users to make virtual payments on the platform. PayPal said that it would charge 5 cents plus 5 per cent of the total transaction under payments of $12.