According to a shareholder.com press release:
PayPal, the global online payment service, today announced new micropayments processing fees for digital goods. The new pricing will provide merchants with a more affordable way to process payments for low-cost digital content such as video games, online greeting cards, news articles, mobile phone content and digital music. PayPal’s micropayments pricing is designed to give customers the convenience of a-la-carte purchases, such as 99-cent downloadable ringtones, without having to sign up for annual subscriptions or pre-funded payment accounts.
It’s designed for transactions closer to $2 than, say, $.10, so calling it a micropayment system is probably premature. But services like this potentially lower the barriers between artists, music and fans, and that’s always a good thing.