Facebook developers--all one million of them--can now monetize their apps using PayPal. The new partnership between the companies was announced at PayPal X Innovate, the online payment service's conference. PayPal's new micropayments will be integrated into Facebook for its virtual currency.
A PayPal blog post describes the announcement:
Special guest Sheryl Sandberg of Facebook joined eBay CEO, John Donahoe on stage to let everyone know that PayPal is the premier Facebook partner for payments! Facebook will use PayPal to pay its developer community, and they're planning to put PayPal's new easy in-context payment solution for digital goods on their social networking site.
And AllFacebook explains what it means:
PayPal is already one of the payment methods for Facebook Credits but the new system means that Facebook users won’t even have to leave the site to authenticate their purchase. The new PayPal for Digital Goods, described in a PayPal press release as the “online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game”, offers payment in two clicks in the context of the original page.
This is good news to both Facebook developers and PayPal developers. The latter group will pass $1 billion in transactions through the developer network by the end of this year, according to Reuters. However, fees have kept smaller payments from being financially viable. For micropayment purchases below $12, PayPal will now charge five cents per transaction instead of 30 cents. The percentage in fees is slightly higher at five percent, but it still leaves the seller with more money due to the smaller transaction charge.