PayPal now accepting credit card payments in apps

With this new feature, application developers will now be able to accept credit card payments without requiring customers to open up a PayPal account. This eliminates the complications merchants, developers and startups face in accepting credit cards.

“We promised to create the features our developers need to make their apps and services successful, and are sticking to that promise,” said Naveed Anwar, senior director of PayPal’s developer network at PayPal, San Jose, CA.

“Guest Payments is one of the most highly requested features from our developer community, and we’re happy to be able to deliver this,” he said. “Customers can now make payments globally by simply using a credit card, empowering users with yet another payment option when making purchases.”

PayPal’s Guest Payments eliminates the complications merchants, developers and startups face in accepting credit cards such as security concerns, PCI compliance, poor contextual and user experience and the time required to enter necessary information.

Additionally, a new pricing model for PayPal X services has been announced.

The new pricing will create a whole new set of use cases where PayPal replaces cash and checks for services such as rent, consulting businesses or payroll and was originally scheduled to be available to United States developers in the second quarter of 2010.

PayPal said that it will instead be rolled out in the fourth quarter of this year.

The introductory pricing will be as follows: a flat fee of 50 cents for services transactions funded by a bank account or PayPal account balance, with a three-day settlement period; or a $0.75 percent fee for services transactions funded by a bank account or PayPal account balance, with instant settlement.

It will be available to select U.S. partners and developers.

“Guest Payments will increase payment completion and general consumer awareness and acceptance of mobile commerce,” Mr. Anwar said. “We’re also encouraging that through the PayPal X Developer Challenge, where developers will now be able monetize apps they create without requiring their users to have a PayPal account.”