PayPal opens up to developers

Company will allow third parties to use payment system.

PayPal is planning to open up its online payment service to outside developers.

The move could allow third parties to embed the company's payment service and collect fees for both material goods and online services rendered.

PayPal said that the service will launch on 3 November and include a set of API's which can be used to embed PayPal's service into applications.

During a special event at company headquarters in San Jose, PayPal president Scott Thompson said that the company is hoping to open the door for ecommerce to new audiences such as web developers and allow for different types of transactions, such as split payments and transactions requiring offline approval.

By offering new payment options, Thompson hopes that the company will foster further growth in the ecommerce sector.

"The next wave of innovation won't happen at the level we have come to expect it to without viable business models," Thompson told developers.

"Without this, innovation for innovation's sake will only come from a few, and things simply will just not move fast enough."

PayPal plans to offer early tests of the new system with a number of beta projects. Among the companies which will be offering trial programs are Twitter and Microsoft's Azure project.

In the months following the initial launch on 3 November, PayPal said that it will look to add a number of additional APIs which extend the platform's reach and allow for new types of transactions.