At the market-leading payment service provider PayPal, fee changes are pending, which makes transactions more expensive in many cases. In particular, merchants should be asked to pay more here – but they should ultimately pass the additional costs through to the customer.
The company is currently starting with the new fee structure in the USA. It is not yet known when there will be comparable adjustments in other countries or not. However, PayPal is unlikely to use significantly different pricing models in the various regions over a longer period of time. Ultimately, it becomes more expensive where the service provider hardly has to fear negative effects from such a step, while with the additional income in more competitive segments, even lower fees will be charged.
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According to PayPal Marketing, the new fee structure better reflects the value of the respective services. “We’re changing prices to help our customers better understand where we bring value,” said Dan Leberman, who oversees partnerships with small and medium-sized businesses. Wallet payments in particular are particularly important, while simply processing credit card payments is a simple standard task that is also offered by various other companies.
PayPal points out that when users visit an online shop, they are up to three times more likely to actually place an order if the PayPal button appears in the payment options. Here the service provider is now making full use of the advantages it offers in order to earn more money.
For merchants, this means that for PayPal digital payments, which include PayPal Checkout, Pay with Venmo, PayPal Credit, and some other services, they will have to pay a 3.49 percent commission plus a fixed fee of 0.49 dollars in the future. So far, customers have had to pay 2.9 percent plus $0.30 only.
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