PayPal business users will now have to pay transaction fees on all their transfers, whether or not they send payments to friends and family.
All PayPal payments are currently categorized as "Goods and Services" or "Friends and Family", the latter of which is not subject to fees.
However, the party is over for companies using this loophole to circumvent fees; Starting July 28, only personal PayPal accounts will be able to receive free "Friends and Family" payments.
The future of Paypal
The announcement comes as PayPal is set to "lighten" its fee for selling goods and services to 2,99%, with no fixed fees, for US customers. PayPal's current fee for goods and services is set at 2,89 .0,49% plus €XNUMX.
This latest move also means PayPal business users, who use it for their business services, will need to create a separate account if they want to receive payments from friends and family.
PayPal stock has taken a hit of late, falling even more than the average tech stock in 2022. The company has lost about two-thirds of its value in the year since its peak in July 2021, though it still offers one of the most popular payment methods. methods. catwalks around the world.
However, PayPal is refining its offering as it tries to grab a piece of the growing BNPL market and other emerging sectors.
The payment giant recently announced that it is expanding its service with a new monthly payment plan, which will allow US-based customers to spread payments over periods of up to 24 months.
The service is available for purchases between €199 and €10,000, with interest rates ranging from 0% to 29.99% APR depending on the term of the payment plan.
PayPal is also expanding into the cryptocurrency space, adding features that support the exchange of cryptocurrencies between users, effectively turning the platform into a full-fledged crypto wallet.