PayPal Unveils Plans To Open Payment Service - InformationWeek
Software // Enterprise Applications
08:34 PM

PayPal Unveils Plans To Open Payment Service

The PayPal X service is designed to make it easier for developers to integrate PayPal into third-party applications.

EBay's PayPal unveiled pricing and an API to allow developers to more easily integrate the payment service into third-party applications.

The API will allow developers to write programs that use PayPal for payments, without users having to leave the application. Today, people who use PayPal on a third-party application are taken to a separate window to complete the transaction.

Also, PayPal will offer special pricing for developers who use its expanded service in applications that are traditionally serviced by cash and checks, such as rent, consulting businesses or payroll.

Beginning in the second quarter of next year, eBay will charge a flat fee of 50 cents for service transactions with a three-day settlement period, or a 0.75 percent fee for service transactions with instant settlement. The prices are considerably less than PayPal's regular e-commerce fee of 1.9% to 2.9%, plus 30 cents. For transactions under $10, PayPal's charges a 5% fee, plus 5 cents.

EBay made the announcements Tuesday at its first developer conference, PayPal X Innovate 2009 in San Francisco. The company first announced the PayPal X platform last month during the Web 2.0 Summit.

PayPal's new APIs make it possible for developers to let people who are not PayPal members to sign up for the service within the application. Developers will also be able to let users of their applications make payments to several people in one payment, making it possible to purchase multiple items from different sellers or to conduct non-commercial transactions, such as paying wages to employees.

PayPal is particularly interested in getting its service folded into mobile applications, betting that people will increasingly use their smartphones for conducting transactions. In the first half of next year, the company plans to release a mobile payment software development kit, which will initially support Apple's iPhone.

PayPal launches its expanded service as the company faces increasing competition from some of the biggest names on the Web. Amazon launched its online payment platform last year for third-party merchants, and Google recently expanded its Checkout payment service as a means to pay for applications purchased on the Android Market, an online store for buying apps for smartphones that use the Google operating system.

PayPal's latest plans are part of EBay's overall strategy of driving more revenue through expansion of the online payment service in e-commerce and mobile applications and in making non-retail payments.

Blue Cross of Northeast Pennsylvania, the University of Louisville School of Medicine, and a range of large and small healthcare providers are using mobile apps to improve care and help patients manage their health. Find out how. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends for 2018
As we enter a new year of technology planning, find out about the hot technologies organizations are using to advance their businesses and where the experts say IT is heading.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll