EcommerceBytes-NewsFlash, Number 2317 - June 25, 2010     1 of 3

PayPal Postpones New Pricing for Services

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PayPal told developers on Thursday it was delaying rollout of its new pricing for PayPal X services that it had announced last November. (This does not affect the regular PayPal fee structure.) The company said it had to make changes to its consumer checkout flow first, which is taking longer than expected. It will delay rollout of the new pricing until the fourth quarter, at which time it will be available to select US partners and developers.

The new pricing is designed to create a new set of use cases where PayPal replaces cash and checks for services such as rent, consulting businesses or payroll. The new pricing was originally scheduled to be available to U.S. developers in Q2.

Introductory pricing for the new services will be a flat fee of 50 cents for services transactions funded by a bank account or PayPal account balance, with a three-day settlement period; or a 0.75 percent fee for services transactions funded by a bank account or PayPal account balance, with instant settlement.

The fees are another option for developers to take advantage of in their applications and do not replace PayPal's tiered ecommerce pricing of 1.9 - 2.9 percent plus 30 cents, or its micropayments pricing of 5 percent plus 5 cents (for transactions under $10).

In its announcement, PayPal wrote that it would soon roll out the the ability to integrate credit card payments directly into apps. The full announcement can be found online on the PayPal blog.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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