Merchants will now have to pay more fees to PayPal. The financial service provider has announced to increase fees that it charged to merchants. The hike is, however, applicable to some of its products. It is limited to the United States only. The increased merchant fees will come into effect from August 2. According to PayPal, it is making changes to fees as per the company’s pricing policy. It said that the revised rates are aligned with the services and products it offers. The rates are as per the value of the offerings. PayPal is a global digital payments platform. It is based in San Jose in California. The company is among the largest online payment processors in the world.
PayPal in a statement said that the company is committed to transparency in its services. It will inform the customers about revised rates. It has so far maintained a flat rate for sellers processing payments. The firm charged 2.9 percent of the transaction price. This is in addition to a 30-cent fee. The company underlined that the new rates will only apply to a portion of merchant customers. PayPal will charge higher rates for the newer products which include Pay with Venmo and PayPal Checkout. The company believes that 60 percent of the consumers using PayPal as a payment method convert than consumers who do not choose the platform for payments.
According to PayPal’s market assessment, the chances of consumers using the platform increases when PayPal is available at the time of checkout. It said that consumers use the platform three times more to complete the purchase. The recently announced Buy Now, Pay Later solutions also pushed the payment volume for business by more than 15 percent. Meanwhile, a US consumer watchdog has launched a probe into Venmo’s alleged unauthorized funds’ transfer. Venmo is a money transfer app. It is owned by PayPal. PayPal claims that it has approximately 392 million accounts that are active.