PayPal micropayments offer new options for artists
Artists looking to cut transaction costs might consider PayPal's new micropayments.
Fees are 5% + $0.05, compared to 2.9% + $0.30 for a normal Premier/Business account.
The difference on ten $5 transactions would be $1.50 – enough for a McDouble with tax.
The break-even point is $12, which costs 65¢ in both systems. Those wishing for the best of both worlds should create a new micropayments account, and direct larger and cross-border transactions to their existing account.
The new system is reportedly being adopted by Facebook, Justin.tv and Ustream.