PayPal Holdings Inc (NASDAQ: PYPL) and its subsidiary Venmo announced they would change their fees for cryptocurrency transactions under $200. The company states that these changes are to give transparency to investors. However, they will also affect customers making less than $100 transactions.
Details on the changes
The platforms introduced cryptocurrency payments in 2021 and have since seen a lot of success. They previously took either a percentage or a flat fee for cryptocurrency payments. Venmo and PayPal used a flat fee of $0.50 for transactions about $25 and under. They charged a certain percentage for transactions above $25. For transactions between $100.01 and $200, on the other hand, the platforms charged a 2% fee.
With the new changes, the payment platforms will charge a flat fee for transactions up to $200. While these changes might seem beneficial on the surface, they will impact people differently. For instance, people making more significant transactions will pay less, and those making smaller ones will pay more.
A spokesperson for PayPal announced that it would implement the changes on March 21. There will be few changes to fees for transactions over $1000.
New report shows growth in the digital payment industry
A report titled Digital Payment Market, Size, Global Forecast 2022-2027, Industry Trends, Impact of COVID-19, Opportunity Company Analysis is out. According to the report, analysts expect the global digital market to grow to $12.55 trillion by 2027.
The reason for the growth is the continued adaption of digital payment services by different industries and individuals. Digital payment has reached industries such as healthcare, telecommunication, transportation, retail, among others.
In addition, the digital payment market benefited from the COVID-19 pandemic. The reason is that restriction and the need for people to stay indoors made them turn to digital payment to pay for transactions, send or receive money.
Digital payment services are also more convenient as they reduce queuing at lines in businesses hence why many businesses are now adopting them.
The report also covers the top players in the market. These include PayPal, Alphabet Inc Class C (NASDAQ: GOOG), Amazon.com, Inc (NASDAQ: AMZN), Visa Inc (NYSE: V), and Mastercard Inc (NYSE: MA). These companies have played a crucial role in digital payments.
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