PayPal stock climbs after raising merchant processing fees

Jun. 18, 2021 2:46 PM ETPayPal Holdings, Inc. (PYPL)STRIP, SQ, PYPLBy: Brandy Betz, SA News Editor46 Comments

PayPal Headquarters San Jose
JasonDoiy/iStock Unreleased via Getty Images

  • PayPal (PYPL +1.9%) is raising its rates for merchants on payments made through its proprietary products, including PayPal Checkout, Pay with Venmo, and PayPal Credit.
  • The rate for online transactions will using PayPal products will be 3.49% plus $0.49 per transaction.
  • For in-person PayPal and Venmo QR code transactions over $10, the rate drops to 1.9% plus $0.10.
  • Online credit and debit card transactions from other companies will cost 2.59% plus $0.49.
  • PayPal previously charged 2.9% plus $0.30 to process payments for most online transactions.
  • In a blog post explaining the higher fees, PayPal says consumers choosing PayPal as a payment method are 60% more likely to convert and nearly three times as likely to complete their purchase.
  • PayPal competitors: Square (SQ +0.1%) and private payments firm Stripe (STRIP).
  • PayPal shares are up 1.9% to $283.32.
  • Recent news: PayPal to soon allow third-party wallet transfers of bitcoin

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