With PayPal Backing, Will Micropayments Work This Time?

By Evan Schuman  |  Posted 09-12-2005 Print Email

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A new pricing plan, PayPal argues, will make micropayments viable for everything from ring tones and video clips to online greeting cards and downloadable stories. Will consumers buy it?

The concept of e-commerce micropayments—small Web purchases typically less than $2—is nothing new, but it has never gained widespread acceptance among e-retailers because credit card fees took too much of a bite out of a micropayment to make the exchange profitable.


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