Global digital payments platform PayPal has increased merchant fees for some of its products in the US starting from August 2.
According to Paypal senior vice president Dan Leberman, the company is making changes to its published rates in the US “to better align our pricing with the value that our products and services provide”.
“Our goal is to be transparent and upfront with our customers about the changes. These rates will apply to a portion of our merchant customers in the U.S. beginning August 2, 2021,” he said in a statement.
PayPal has had a flat rate for sellers processing payments, charging 2.9 percent of a transaction price, plus a 30-cent fee.
The higher rates will apply to the company’s newer products like PayPal Checkout, and Pay with Venmo.
According to the company, consumers who choose PayPal as a payment method are 60% more likely to convert than consumers who do not choose PayPal as a payment method.
“Consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout. Our recently announced Buy Now, Pay Later solutions have resulted in a 15 per cent lift in payment volume for businesses,” the company informed.
PayPal currently has 392 million active accounts.