PayPal has decided to make radical changes to the pricing of sellers on its platform. The world-famous online payment system PayPal has decided to regulate the fees of the sellers on the platform. The date when the company’s new move will come into effect has also been announced.
Dan Leberman, PayPal senior vice president, said in a statement yesterday that they will increase prices to better align with the value that products and services provide. The changes, announced by Leberman, will affect how much PayPay merchants pay per transaction and will go into effect on August 2.
“PayPal is much more than you think”
Further in the blog post, “PayPal has become more than just a purpose or payment processor to be a complete commerce platform that can drive growth for businesses. Consumers are almost three times more likely to complete their purchases when PayPal is available at checkout.
Previously, the company had a fixed payment rate of 2.9 percent of the transaction price plus 30 cents for merchants processing payments. The new and higher rates will apply to the company’s newer products, such as PayPal Checkout and payment with Venmo. On the other hand, the company has a substantial 392 million active accounts according to its first quarter earnings report.
On the other hand, PayPal launched the era of payment with crypto money on its platform a few months ago. The company made it possible to pay with currencies such as Bitcoin, Ethereum and Litecoin in the first place.