It’s not exactly a secret that gaming has found new life on the web, social and mobile platforms. Of course, with it, especially the rise in free-to-play gaming, developers need to find ways to monetize their apps, or their browser-based games. Beyond mobile or banner advertising, there is the option of in-app or in-game purchases — the old in-game freemium model. Give your game away for free, sell new levels, armor, weapons, life for a buck or two. Lots of games have incorporated virtual marketplaces to hawk virtual goods of all kinds.

And good news for game developers: Virtual goods are hot and getting hotter. PlaySpan, the Visa-owned Monetization-as-a-service provider released a study today that reveals, among other things, that consumer spending on virtual goods has doubled since 2009. (Virtual goods, by the way, being a combination of both virtual currency and virtual items.) Not only that, but $2.3 billion worth of virtual goods were purchased in 2011 in the U.S., up nearly 30 percent from 2009. That means, on average, gamers spent $64 on virtual goods in 2011, roughly equivalent to the price of a console game.

Again, it’s all up-trending, as 35 percent of U.S. gamers have purchased a virtual good, a 50 percent increase from 2010. Of course, unsurprisingly, the gender breakdown shows that men are twice as likely as women to purchase virtual goods. To break that down further, nearly 50 percent of males under the age of 24 said they bought a virtual good in 2011, whereas only 15 percent of females in the same age group had done so.

Karl Mehta, founder of PlaySpan, said that he thinks we’re getting to a point where consumers are truly becoming comfortable with buying virtual goods on the web and on mobile devices. For example, the study found that, of those in the U.S. who had not purchased virtual goods, 70 percent expressed a willingness to do so. This comfort and openness to virtual transactions represents not only a huge opportunity for gaming, he said, but for the majority of digital content companies — those trafficking in music, movies, social gifting, rewards, etc.

This demographic data could be a big boost to producers and distributors of all digital content, allowing them to hone their strategies for reaching the right audience — across platforms. For instance, when it comes to why users purchase a certain game, 64 percent said that their choice was based on the price of the game, 51 percent was based on genre, while 48 percent said that their friends’ recommendations were a factor in their choice. This latter bit, in particular, is a huge validation for social gaming companies, or studios considering whether to integrate with the social graph, or enable users to friendsource recommendations, or share what they’re playing (or their achievements) with friends.

Again, when it comes to purchasing virtual goods, PlaySpan’s report shows that it’s important for game developers to find the right structure for incentivizing virtual good purchases. Hiding too much of the game under the promise of unlocking if they pull out their credit card is counterproductive, but creating some really terrific premium features that can be bought for a certain price is key — if they are integral to gameplay, and really improve the experience of the game, users will pay.

To that point, the study found that the top reason for gamers purchasing virtual goods, according to 55 percent of the population, is “to be able to do more in a game,” followed closely by the second reason: “To get a better experience playing the game.” Next was to advance a level or state, and developing one’s avatar or identity within the gameworld.

Lastly, when it comes to what platforms or media are fueling virtual goods purchasing, the leading source in 2011 was connected consoles, like Xbox Live or the PlayStation Store, for example. In all, 48 percent of gamers purchased their virtual goods on connected consoles, but that behavior is clearly changing, as users who purchased goods directly from within the game rose to 42 percent, followed by prepaid game cards and online virtual stores, at 40 percent and 13 percent, respectively.

In all, consumer habits really seem to be changing, as twice as many gamers are buying virtual goods today compared to two years ago. With the right strategy for in-game or in-app purchases, developers certainly have an increasing opportunity to monetize their free games, which, in the end, hopefully means a greater selection (and hopefully quality) of games for the end user.

Below, PlaySpan has given us permission to include the entire study, so check it out:

A new study is being released by Visa-owned PlaySpan with research firm VGMarket on how and what gamers are spending on virtual goods. According to the study, nearly one-third of the general gamer population has used real world money (as opposed to virtual currency) to purchase virtual goods. Console games with online play account for the majority (51%) of virtual purchases using real world money, with social networking games (30%) coming in at second.

The report shows that 48% of the general gamer population have purchased in-game currency over the last 12 months and in terms of frequency, 57% of the general gamer population said they make purchases of virtual items using real world money at least once every month, with 72% of the general population citing that they would spend more or about the same as they did last year.

Overall, women (34%) are almost three times more likely than men (13%) to use Facebook credits to purchase virtual items or content and they dominate men in virtual goods purchases in massively multiplayer online games and casual games over the last 12 months.

In terms of casual games, the differences are even greater, with women spending 40% more than men from 1st party publishers and more than three times as much from third-party publishers. Women (37%) are also nearly twice as likely as men (19%) to buy virtual item to decorate a page, persona or avatar, the study shows.

en and women also seem very different in the type of communication they prefer for the promotion of a virtual currency item.Men (49%) are much more receptive than women (38%) to email communications, while women (31%) much prefer promotions on Facebook to men (18%).

While this report shows that women dominate men in terms of spending on virtual goods, other reports have shown that men outspend women on virtual goods by large margins. Perhaps women are spending more time now on social and casual games?

PlaySpan, a virtual goods monetization platform, has been acquired by Visa. According to the release, Visa will pay $190 million in cash for the company, plus additional payouts for performance milestones. The deal comes nearly a year after Visa spent a whopping $2 billion on e-payment company CyberSource. Visa says that the acquisition of PlaySpan complements the CyberSource deal and will extend the company’s presence in digital and mobile commerce.

This is a big exit for PlaySpan, which has raised a total of $46 million in funding since its launch four years ago. PlaySpan has been growing like a weed, striking partnerships with a number of social network, gaming and media companies, including Viacom, Disney, Facebook, Ubisoft, and Sanrio.

PlaySpan’s flagship product UltimatePay is a ‘Monetization as a Service’ platform for apps, games, videos and digital goods. Based on the user’s location, the payments platform draws from over 85 different payment options. Because of its vast variety of payment options (which include PayPal, pre-paid cards, and a number of credit cards), UltimatePay is designed for a global audience. Currently, PlaySpan powers virtual goods marketplaces across 1,000 video games, virtual world publishers and social networks.

The company also recently launched a mobile version of UltimatePay, which gives smartphone developers a way to deliver a one-click payment experience to mobile gamers, and provide a comprehensive payments offering. The mobile focused platform allows players to view their balance and transaction history, while allowing them to purchase items in-app without ever having to leave the game.

As virtual goods becomes a booming business, PlaySpan has reaped the benefits of technology and media companies looking to incorporate virtual goods into their platforms.

Visa says that ecommerce sales, which reached an estimated $948 billion, are a big growth area for the company. Approximately 45 percent of U.S. online spending takes place on Visa’s network today and for Visa’s fiscal first quarter 2011, the company reported 25 percent year-over-year growth in ecommerce payment volumes globally. Visa is going to use PlaySpan to capitalize on the growing digital goods market, which generated an estimated $25 billion in consumer spending globally in 2010 and is expected to reach $280 billion by 20143.

The acquisition is even more impressive when you conside that the company was founded by 12-year-old, Arjun Mehta, in 2006. PlaySpan is actually run by the teenager’s father, CEO and co-founder Karl Mehta.

UltimatePay is a ‘Monetization as a Service’ platform for apps, games, videos and digital goods. Based on the user’s location, the payments platform draws from over 85 different payment options. Because of its vast variety of payment options (which include PayPal, pre-paid cards, and a number of credit cards), UltimatePay is designed for a global audience.

UltimatePay Mobile gives smartphone developers a way to deliver a one-click payment experience to mobile gamers, and provide a comprehensive payments offering. The platform allows players to view their balance and transaction history, while allowing them to purchase items in-app without ever having to leave the game.

Of course, PlaySpan isn’t the first startup or company to bring in-app payments to Android phones; PayPal, Boku and Zong all offer in-app payments libraries to developers.

PlaySpan, which recently raised $18 million in new funding, already has a number of partnerships with a number of gaming and media companies, including Ubisoft, Sanrio and others. Perhaps the company can leverage some of these relationships to offer UltimatePay in publisher’s mobile games.

PlaySpan has been on a tear recently, striking partnerships with a number of gaming and media companies, including Ubisoft, Sanrio and others. And today, the company is getting another vote of confidence—from Facebook. The social network will now offer PlaySpan’s UltimatePay payments product as a payments option for users who buy Facebook Credits, the network’s virtual currency that is used in more than 200 games and applications from over 75 developers. In conjunction with the announcement, Facebook is opening up credits to more developers today.

UltimatePay is a ‘Monetization as a Service’ platform for apps, games, videos and digital goods. Based on the user’s location, the payments platform draws from over 85 different payment options. Because of its vast variety of payment options (which include PayPal, pre-paid cards, and a number of credit cards), UltimatePay is designed for a global audience.

With the Facebook integration, UltimatePay will add more than 20 new ways for people to purchase Facebook Credits, with new services being rolled out over the next few months. While Users can already pay for Credits via PayPal, Facebook’s pre-paid cards, and through most credit cards; Facebook users will now be able to purchase Credits using UltimatePay options, including store-bought prepaid cards such as PaySafeCard, Wallie-card in Europe, MyCard and Gash cards in Taiwan, and payment services that are popular in specific countries, such as bank transfers in Germany, Brazil’s Boleto Bancario and Russia’s Webmoney.

If you’re a developer using Facebook Credits, you won’t have to do anything to offer these new payment options. UltimatePay will simply appear to people based on the country or region where they are located.

This is no doubt a big win for PlaySpan’s payment option. Facebook clearly sees Credits as a viable revenue stream and some expect it to make up one-third of the network’s revenue stream in the next year. That means there could be considerable amount of money flowing through Ultimate Pay in the future. And for Facebook, UltimatePay could open up new payments options for members, especially for those living outside of the U.S.

PlaySpan powers virtual goods marketplaces across 1,000 video games and virtual world publishers PlaySpan-powered marketplaces lets users sell, exchange and purchase online game items, virtual goods, and game currencies for online games and applications. The platforms also allow publishers to managing global micropayments, ecommerce, and micro-transactions across 180 countries. Current customers include Sanrio, Adobe, Viacom/Nickelodeon, Disney and Warner Brothers.

The startup’s microtransactions and ecommerce platform will be used for a number of Ubisoft’s game titles, including MMO, and Might & Magic: Heroes Kingdoms. In addition to providing a white-label marketplace for virtual goods, Playspan also offers companie in-depth management and reporting tools. And the platform allows gives buyers 85 different payment methods including credit cards, PayPal, mobile, and more.

Playspan, which just raised $18 million in new funding, faces competition from Live Gamer.

Virtual goods marketplace platform Playspan has raised $18 million in Series C funding led by Vodafone Ventures and Softbank Bodhi Fund, with existing investors Menlo Ventures, Novel TMT Ventures, STIC, and others participating in the round. This brings the startup’s total funding to a whopping $42 million.

PlaySpan powers virtual goods marketplaces across 1,000 video games and virtual world publishers and. PlaySpan-powered marketplaces lets users sell, exchange and purchase online game items, virtual goods, and game currencies for online games and applications. The platforms also allow publishers to managing global micropayments, ecommerce, and micro-transactions across 180 countries. And the company operates virtual goods storefronts on Facebook, MySpace, within games and on its standalone site.

As virtual goods becomes a booming business, PlaySpan has reaped the benefits of technology and media companies looking to incorporate virtual goods into their platforms. The startup has scored a number of high profile deals to power micropayments for social networks, game developers, media companies and gaming platforms. Customers include Sanrio, Adobe, Viacom/Nickelodeon, Disney and Warner Brothers.

This is an undoubtedly impressive client list, considering that the company was founded by 12-year-old, Arjun Mehta, in 2006. The company is actually run by the teenager’s father, CEO and co-founder Karl Mehta.

And PlaySpan has steadily expanded its empire, acquiring micro-transaction app developer Spare Change so that its marketplace can power transactions.

Mehta tells me that PlaySpan is adding 20 new partners per month and has signed over 100 partners in 2010 alone. The new funding will be used to expand PlaySpan into Europe and Asia, aiming to capitalize on the growth in Asian gaming markets.

PlaySpan faces competition from Live Gamer and others. And of course, Google is entering the space with the launch Google Games and the acquisitions of Slide and Jambool.

Hello Kitty Online, which is in private beta, is the official massively multiplayer online game (MMOG) of Sanrio’s Hello Kitty brand. Hello Kitty Online combines elements of social networking, including blogs, video sharing and email, as well as gaming components such as customizable avatars, guilds, pets and crafting.

Specifically, the game will offer an Item Mall, where users can buy virtual-goods through purchased Sanrio Cash Points or earned Sanrio Loyalty Points. PlaySpan’s technology will help power payments for these goods.

Hello Kitty is no doubt a popular brand when it comes to electronics and other merchandise, so it should be interesting to see how the company’s foray into social gaming works out.

Any video content producer can sell their videos on PlaySpan’s marketplace and can price their uploads accordingly. Producers can also donate proceeds to charity for videos that are available free elsewhere. It’s fairly simple and similar in theory to news organizations that are charging micropayments for viewing articles.

Playspan has already signed up a popular premium content publisher, Revision 3. Web shows like Diggnation, Chad Vader, and Turbo Dates are all being sold on PlaySpan’s platform. For example, you can preview an episode of Diggnation for 3 minutes but after that time period you need to pay 10 UPoints (the marketplace’s virtual currency) to view the remainder of the video. To give you a sense of the pricing, 1,000 UPoints costs $10 on PlaySpan.

Playspan also plans to allow publishers to integrate the video monetization into their own sites. The idea of micropayments for videos isn’t new; YouTube has been experimenting with this And PlaySpan will face the challenge of bringing traffic to its marketplace to actually generate views and payments for producer videos.

While PlaySpan has been steadily growing the reach of it marketplace through licensing deals with social networks, game developers, media companies and gaming platforms, it’s nice to see the startup innovating and adding new features to its platform.

The Snoop Dogg goods will first appear in PlaySpan’s marketplace on virtual world IMVU and will include Snoop hats, sunglasses, bikinis, assorted clothing items, branded dance floors, signature moves, musical instruments, and complete DJ sets. The price will range rice from $2 and up.

Celebrity branded virtual goods is becoming more popular as the virtual goods market heats up. Britney Spears got into the virtual goods market last year, as did Justin Timberlake. PlaySpan plans to partner with other celebs and brands in the near future to launch a full fledged celebrity focused virtual goods marketplace.

PlaySpan has been steadily growing the reach of it marketplace through licensing deals with social networks, game developers, media companies and gaming platforms. Last year, PlaySpan acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo.

Nonoba’s GameRise allows anyone to develop and manage customized gaming sites within a community. PlaySpan powers micro-payments across over 1,000 video games and virtual worlds and has virtual goods storefronts on Facebook, MySpace, within games and on its standalone site. With the new partnership, PlaySpan will offer Nonoba’s 4,000 Flash games to marketplace customers. PlaySpan’s microtransactions will also be offered to Nonoba’s developers to allow Flash game developers to monetize their games.

With all of the partnerships PlaySpan is racking up, the startup is fast securing its place as a player in the micrpayments space. In December, PlaySpan revealed some telling numbers about the strength of the virtual goods space, reporting that over $30 million was spent on virtual gifts over the holiday season. Last year, PlaySpan acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo.

In private beta, Shibuya allows Adobe developers to monetize their Adobe AIR applications through a try-and-buy mechanism, and allows developers to upload and sell their applications on the Adobe AIR Marketplace. To enable micro-payments via PlaySpan, developers can add a few lines of provisioning code, set the price and trial period, and then publish the application with the payments technology. Developers will also receive reports, analytics, and automatic settlements on a monthly basis.

The Adobe Air Marketplace allows consumers to try paid applications on for free. If they like the application they can purchase it using a credit card, PayPal, an Ultimate Game Card or over 85 other global payment methods provided by PlaySpan.

The micropayments startup has been securing key partnerships, and a deal with Adobe only validates its place as a player in the micropayments space. In December, PlaySpan revealed some telling numbers about the strength of the virtual goods space, reporting that over $30 million was spent on virtual gifts over the holiday season. Last year, PlaySpan acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo.

Micropayments startup PlaySpan has struck a major deal with games publisher THQ to power payments for its virtual currency. PlaySpan powers micro-payments across over 1,000 video games and virtual worlds and has virtual goods storefronts on Facebook, MySpace, within games and on its standalone site. THQ will be using PlaySpan’s payment methods to allow online gamers to purchase ICE (the company’s virtual currency) for the game Dragonica Online.

PlaySpan’s platform is attractive to many game publishers because it offers more than 85 global payment methods. And the payments platform also provides a comprehensive credit card processing and fraud risk management services. Dragonica Online is a popular free-to-play multiplayer online casual game that allows players to purchase additional content and features via ICE cash.

The micropayments startup has been doing fairly well in the space, striking similar deals with Nickelodeon and hi5. PlaySpan recently revealed some telling numbers about the strength of the virtual goods space, reporting that over $30 million was spent on virtual gifts this holiday season. Last year, PlaySpan acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo.

Should we be considering virtual goods when evaluating online holiday spending? We’ve seen that e-commerce spending over the holidays was strong, with consumers shelling out nearly $30 billion over a period of a few months. Now, virtual goods platform PlaySpan reports that digital goods have seen a similar, if smaller trend, with Americans spending $30 million on virtual gifts in November and December of 2009.

It’s no surprise that the digital goods world saw strong sales over the past year; the business was projected to make $1 billion in 2009. And as virtual goods are booming, various startups have emerged to capitalize on this growth by facilitating the exchange around these goods.

PlaySpan powers micro-payments across over 1,000 video games and virtual worlds and has virtual goods storefronts on Facebook, MySpace, within games and on its standalone site. PlaySpan’s research found that one in five of its digital goods buyers also gave virtual gifts. And about 15% of all virtual gift giving occurred during the November and December months. PlaySpan also found that nearly 1 in 12 Americans purchased a digital good in 2009, with the average price of a virtual gift estimated around $3 per transaction.

PlaySpan itself seems to be doing well in the space. The startup just struck a deal with Nickelodeon to power the media company’s virtual worlds’ currency, called NeoCash, across multiple payment providers including credit cards and prepaid cards. Last year, PlaySpan acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo. And PlaySpan also announced a deal to power micropayments on hi5.

We just wrote about PlaySpan’s recent study showing positive growth in the exchange and e-commerce of virtual goods exchange. PlaySpan powers micro-payments across over 1,000 video games and virtual worlds and has virtual goods storefronts on Facebook, MySpace, within games and on its standalone site. Today, PlaySpan is announcing a fairly significant deal with Nickelodeon to power payment services for virtual goods and microtransactions for the Nickelodeon Kids and Family Virtual Worlds Group.

PlaySpan’s technology and services will power Nickelodeon’s virtual worlds’ currency, called NeoCash, across multiple payment providers including credit cards and prepaid cards. Through PlaySpan’s subsidiary PayByCash, Nickelodeon will offer users over 80 global payment methods.

This is a big move for PlaySpan, considering Nickelodeon’s vast reach and popular games, including virtual world NeoPets, which has a user base of 45 million gamers. PlaySpan recently acquired micro-transaction app developer Spare Change, which powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo. Earlier this year, PlaySpan also made deal to power micropayments on hi5.

Micropayments are huge these days and the number of players are scaling quickly. With continued expansion on social networks, media properties and virtual worlds, startup PlaySpan has become a player in an arena where bigger players like PayPal, Facebook and MySpace are all investing in. In fact, PayPal’s new API powers micropayments. The competition may be stiff but as micropayments for virtual goods continue to gain traction in virtual worlds and integrate with consumers’ social graphs, there is definite potential for both startups like PlaySpan, Live Gamer and Zuora, and the more established players to play in the same pool.

Virtual goods are booming and there are various startups who are capitalizing on this growth by facilitating the exchange and e-commerce around these goods. PlaySpan, which powers micro-payments across over 1,000 video games and virtual worlds, has virtual goods storefronts on Facebook, MySpace, within games and on its standalone site.

The marketplace lets users sell, exchange and purchase online game items, virtual goods, and game currencies for online games and applications. Today, PlaySpan is releasing a study in conjunction with research firm VGMarket, which reveals interesting statistics about consumer behavior with virtual goods.

The survey collected responses from 2,425 customers across the PlaySpan Marketplace, Spare Change, and Ultimate Game Card (other PlaySpan properties). According to the report, 31% of the total number of respondents said they have sold digital goods and 39% of the remaining 69% of respondents, expressed that they are either interested or very interested in doing so. In-Game Virtual Currency is the most frequently sold digital good from player to player and two out of three sellers sold in-game currency in the last 12 months, earning a median of $22 (U.S.).

Of course, it’s important to note that the cross section of people surveyed are obviously interested in virtual goods, since they are PlaySpan customers. But the fact that a third of digital goods buyers reported that they also sold goods is promising for the virtual goods marketplace space. I’d be interested to see why the individuals who didn’t sell digital goods but were interested in doing so haven’t yet participated on the selling side.

PlaySpan, which recently acquired micro-transaction app developer Spare Change, has processed more than $50 million worth of micro-transactions through its PayByCash and Ultimate Game Card products. PlaySpan also raised $16.8 million in a series B funding last Fall from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC. The startup was founded by a 12-year-old, Arjun Mehta, but it is actually run by his father, CEO and co-founder Karl Mehta. PlaySpan faces competition from Live Gamer, which we recently wrote about here.

Live Gamer, an online marketplace for players to trade and buy video game virtual goods, has acquired microtransaction platform Twofish, in an effort to boost its virtual economy. The terms of the acquisition were not disclosed. In conjunction with game makers, Live Gamer’s platform lets online game players trade virtual goods they earn in games. The company’s latest move makes sense—as micropayments in the gaming world heat up, gaming marketplaces need to power their virtual commerce platforms.

Twofish is a startup that basically powers micro-transaction systems for gaming companies. The company’s flagship product, Twofish Elements, provides several layers of service. The first is an accounting and currency management system that takes care of a game’s virtual currency and its relation to real currency. The second is a catalog of virtual items that can be bought within a particular game. And the third is an analytics tool that lets publishers track the goods being bought within their games.

Live Gamer, which was founded in 2007, is looking to be an all-in-one marketplace for publishers to allow users to buy and sell virtual gaming goods. The company also recently acquired Korean startup N-Cash, a global microtransaction company. Clearly, Live Gamer is looking towards micropayments as the future of virtual gaming and is creating a powerful payments platform and economy within its marketplace.

Mitch Davis, CEO of Live Gamer, told us that the gaming publishers are demanding total commerce solutions and with microtransactions becoming the common payments system, these acquisitions help round out the company and keep a competitive advantage. Competitors to Live Gamer include PlaySpan (which also made a recent acquisition of a micropayments startup).

As we’ve said in the past, micropayments are hot these days, and the number of players are scaling quickly, especially as gaming and social networks intersect. Live Gamer, PlaySpan and other smaller startups are wise to boost their offerings as bigger players like PayPal, Facebook and MySpace consider making a move in the space.

Micro-payments across the gaming world is gaining serious traction, especially on social networks. PlaySpan, which powers micro-payments across over 1,000 video games and virtual worlds, is launching marketplace storefronts for Facebook and MySpace (which will be rolled out soon). The marketplace will which let users purchase online game items, virtual goods, and game currencies for online games and applications directly from their social networks.

What makes the marketplace interesting is that you can buy, trade, and sell goods within the marketplaces on Facebook and MySpace and then use the items in online game environments. And making a transaction on the marketplace becomes a whole lot more social, as your friends may be able to see it on your NewsFeed. PlaySpan, which recently acquired micro-transaction app developer Spare Change, has processed more than $50 million worth of micro-transactions through its PayByCash and Ultimate Game Card products. PlaySpan also raised $16.8 million in a series B funding last Fall from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC. The startup was founded by a 12-year-old, Arjun Mehta, but it is actually run by his father, CEO and co-founder Karl Mehta.

The recent acquisition of Spare Change now makes sense. While PlaySpan’s focus so far has been within games and virtual worlds, it made a recent deal to power micropayments on hi5. Spare Change, on the other hand, powered micropayments across 700 social networking apps on Facebook, MySpace, and Bebo, and at the time of its acquisition was on its way to processing $30 million worth of transactions this year.

It seems like these days everyone is getting into micropayments, and the number of players are scaling quickly. With continued expansion on social networks, startup PlaySpan can become a serious player in a space where bigger players like PayPal, Facebook and MySpace are all considering making a move. The competition may be stiff but as micropayments start to integrate with consumers’ social graphs, but there seems to be the potential for more than enough opportunity for both startups like PlaySpan and Zuora, and the more established players.

This is very similar to what PlaySpan is up to with its Ultimate Game Card. For more perspective on their product, read about their recent deal with hi5 or their acquisition of Spare Change.

According to the press release, the Zeevex Digital Lockers will include social network plug-ins (for Facebook, Twitter, MySpace and Bebo) so users can trade Zeev Tokens with anyone but also provide parental controls and support for micro-transactions as low as 5 cents.

Zeevex recently closed an undisclosed, private round of funding and is led by Ron Williams (CEO), Dean Gebert (CMO) and Robert Sanders (CTO). While the company would not go into detail on the financing round, it did say its seed round valuation was seven figures and that they are considering a VC-backed Series A round this Summer.

The micro-industry forming around micro-transactions is now going through some micro-consolidation. PlaySpan, which is quickly racking up micro-payments across hundreds of video games and virtual worlds, is acquiring Spare Change Payments, a startup which focuses on micro-transactions for social networking apps. The value of the cash-and-stock deal was not disclosed.

PlaySpan raised $16.8 million in a series B funding just last February from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC. The startup was famously founded by a 12-year-old, Arjun Mehta, but it is really run by his father, CEO and co-founder Karl Mehta.

The company has processed more than $50 million worth of micro-transactions through its PayByCash and Ultimate Game Card products. While its focus so far has been games and virtual worlds, it recently began making its own forays into social networks with a deal to power some micropayments on hi5. But Spare Change already has more momentum on social networks. It powers micropayments across 700 social networking apps on Facebook, MySpace, and Bebo, and is on its way to processing $30 million worth of transactions this year. As the social networks and online games collide, and developers seek new ways to make money other than advertising, micropayments will continue to grow.

Like any payments business, even micro-transactions are all about scale. The bigger PlaySpan can get before the giants finally wake up and enter the market seriously, the better chance it has to becoming the PayPal of micropayments. Of course, PayPal, Facebook and MySpace all have their own plans to become the PayPal of micropayments. And plenty of other startups, from Zuora to Zong, are vying for the title as well.