PayPal Introduces More Frictionless Virtual Goods Payment System, Facebook Included

Today at its developer conference in San Francisco, PayPal is announcing new payment products designed for virtual goods. It will allow developers to sell virtual goods within games in as little as two clicks, instead of taking users off to another page, and will include the eBay-owned company’s existing pricing for small purchases: 5 percent of the total, plus $0.05 for purchases under $12.

Facebook is also involved. PayPal says that “Facebook will integrate PayPal’s new digital goods payment flow to make PayPal the way to make purchases on Facebook.” PayPal is already a main way for users to buy Facebook Credits and advertising, so we’ll be updating the post with more details on how that integration will work.

Given that Credits will be the exclusive paid virtual currency for games and other applications on the Facebook.com developer platform, however Facebook integrates PayPal now will directly affect all developers.

PayPal is broadly focusing on social, mobile and local, company product development vice president Osama Beider said on stage at the event today. The focus comes as these markets have exploded, helping to drive PayPal’s own revenue — and spur a variety of alternative payment competitors.

The company is also launching an embeddable widget, that the company is showing off via Facebook Page e-commere startup Payvment. On stage, the two companies showed how a Page owner — or any other web developer — can quickly add the code to embed this widget.

In terms of mobile, the company is similarly introducing a two-click payment system that can work across apps and platforms.