PayPal Holdings Inc. recently warned its merchants that it will raise prices for some of its new products. According to sources, the company is planning to charge 3.49% of a transaction’s value plus 49 cents for merchants that use its proprietary services.
It means that the retailers will have to pay more to accept Venmo payments and even to use a product to let the consumers split their purchases into four installments.
“We are making changes to our published rates in the United States to better align our pricing with the value that our products and services provide.”
According to sources, the latest changes will take effect from Aug 2nd. After this PayPal climbed 1.9% to $283.38 in New York, which was the highest since February, and became the third-best performer in the 74-company S&P 500 Information Technology Index.
With its new changes, the firm believes that the merchants will pay more to use some of the proprietary products. It has confidence that the services it spent years developing and those services are beyond just processing credit- and debit card payments.
“PayPal has become more than just a button or payment processor to be a full commerce platform capable of driving growth for businesses. Consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout.”
The company also stated that it will lower its fee to 2.29% of the transaction’s price plus 9 cents for in-store transactions. For online payments, rates will fall to 2.59% of the transaction’s price plus a 49-cent fee.
