Another Reason Why PayPal Was eBay’s Best Acquisition Ever
When you want to buy a cheap virtual good, generally you have to buy a bulk amount of credit. Often times, this is in the form of a virtual goods card or chunks of credit through a social network. PayPal now plans to roll out a payment service around the end of the year that allows businesses to collect micropayments.
For example: if you spend $0.49 at a time on a virtual good, PayPal would bill you once you hit $10 instead of billing you every time. Of the $71 billion in payment volume made through PayPal last year, about $2 billion was from digital goods. PayPal also processed about $1.3 billion in digital goods during the first half of the year.
eBay acquired PayPal for $1.5 billion in July 2002. Ever since then, PayPal has paid for itself many times over. This upcoming micro-payments service will be very popular upon introduction.@amitchowdhry or on Google+ at +AmitChowdhry