[eMarketer] PayPal streamlines fees and terms to attract merchant business

PayPal will update its fee structure for peer-to-peer (P2P) goods and services payments, per a press release. US customers will also only be able to send transactions marked as “friends and family” to other customer PayPal accounts, not to PayPal business accounts.

The goods and services seller fee will change from 2.89% plus a $0.49 fixed fee to 2.99% with no fixed fee for payments coming from US customers. Under the new terms, a $225 goods and services payment will cost $6.73, versus $6.99 under the old structure.

Both changes will take effect on July 28, 2022.

eMarketer posits that as it looks to expand its ecosystem, PayPal wants to make its platform more attractive by simplifying its fee structure and making it easier for merchants to report their tax liability. These changes are coming amid a broader push to increase its checkout business, especially as the P2P space becomes more competitive.

Read the full eMarketer article here

www.emarketer.com