PayPal announced on December 12, 2024, its plans to increase fees for U.S. merchants for some of its services, including buy now, pay later options. These changes are scheduled to take effect starting in January 2025.
This decision is part of PayPal's strategy to prioritize profitable growth and optimize its revenue streams. The company aims to enhance the profitability profile of its merchant relationships by adjusting pricing for value-added services.
The fee increases are expected to contribute to improved transaction margins. This move reflects PayPal's ongoing efforts to refine its business model and focus on higher-quality volume.
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