PayPal provides an effective solution to the problem of e-commerce transaction security, dispels people’s concerns about the security of online payments, optimizes users’ online transaction experience, and is widely favored by both buyers and sellers. This has driven the rapid growth of the transaction scale and profitability of the PayPal platform.
PayPal mainly generates revenue and profits through transaction fees and other value-added service fees. Whether it is a personal account, a premium account or a corporate account, PayPal does not charge payment fees. However, in terms of receiving payments, fees will be charged according to the type of account.
(1) Fees for personal accounts
Registrants of personal accounts are individuals who make online purchases. Their PayPal accounts do not actually have a payment function. In other words, personal accounts cannot directly receive transfers from third-party credit cards or bank cards. Therefore, PayPal completely waives fees for such accounts.
(2) Fees for premium accounts and commercial accounts
Registrants of premium accounts are individuals who have opened online stores on e-commerce platforms such as eBay. For such accounts, there is still no fee for payment; and when receiving payments, PayPal only charges users a low fee.
The users of commercial accounts are enterprises that conduct online transactions. The services of this type of account are more comprehensive, not only covering the payment and collection functions of premium accounts, but also allowing multiple people to operate and manage at the same time. The charging standards are the same as those of premium accounts.
It can be seen that compared with other online payment methods such as online banking, PayPal is not only free of charge, but also the handling fee paid by users when receiving payments is very low. Therefore, it is easier to be accepted by enterprises and individuals, and PayPal also attracts more users. In addition, the PayPal platform not only has no installation fees, gateway fees, monthly fees and other tool usage fees, but also provides users with a variety of safe transaction services such as anti-fraud for free. These services have promoted the explosive growth of PayPal users and greatly improved PayPal’s profitability.