Why YouTube Did A Deal With Google Wallet

Fan funding is the ability for someone watching some content on, for example, YouTube to click to directly support that video producer. In a deal with Google Wallet, Google’s YouTube is trying to enable such payments within videos, with Google taking a generous cut of the donations, of course.

“When you’re watching something produced by someone who’s willing to accept donations, an icon will appear in the top left corner of the video. In some cases, hovering over that icon will reveal a banner with the option to support to current channel,” Android Police reported. It also works in the Android app, the story said.

The capability is only initially supported in the U.S., Mexico, Japan and Australia and requires using a browser or version 5.7 or higher of the YouTube Android app.

“If you do offer up a donation, YouTube will take a small cut to handle the transaction. Just how much the company takes varies by country. In the U.S., it keeps 5 percent plus 21 cents. In Japan, it’s 5 percent plus ¥22,” the story said. (Note: At current conversion rates, ¥22 is pretty much equivalent to 21 cents U.S.. “So if an American makes a donation of $10, YouTube will pocket 71 cents of that for its effort.”