PayPal Introduces A Flat Fee For Its Crypto Customers
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PayPal and Venmo, two leading digital payment processors, have introduced a flat-fee structure for crypto trades up to $200. According to the payment processor, the goal is to eliminate the complexity of percentage-based calculations for consumers.

What the Company Said

According to PayPal, the changes are part of their ongoing commitment to offer transparency, ease of understating, and clarity for their customers. According to the new rates, trades between $1 and $4.99 will incur a charge of 49 cents, while those between $5 and $25 will incur a charge of 99 cents. Those between $25 and $75 will incur a $1.99 charge while trades between $75 and $200 will incur a $2.49 charge. Initially, the company charged a minimum fee of 50 cents for crypto trades between $1 and $15 and a 2.3% fee for those between $25 and $100, and a 2% fee for those valued at $100 to $200.

PayPal and Crypto

PayPal and Venmo began to offer crypto trading services to their US customers in October 2020. Since then, the company has grown to support the buying, selling, holding, and making payments in BTC, ETH, LTC, and BCH.

It is worth noting that crypto payments still account for only a small fraction of all transactions made via the platform. For instance, in 2021, the company saw volumes of $1.25 trillion, with over 5.3 billion transactions conducted in Q4 alone. The company had over 426 million active accounts at the end of the year, including 34 million merchant accounts. Venmo processed over $230.1 billion in payments, experiencing growth of 44% in the period.

Since PayPal launched a crypto service, the first-time purchases of crypto via the mobile wallet have grown by 40%. PayPal expects to see total volumes reach $1.5 trillion and revenue growth over $29 billion in 2022 – with 15 million to 20 million net new active users during the year.

With deposits making up only a small fraction of total transaction volumes, PayPal understands why supporting crypto transactions matters. For one, crypto is mainly used by the younger demographic. As a result, if they do not offer it and their competitor does, it is likely they will lose the opportunity to onboard a lifetime customer who has decades of transactions to conduct.


The new flat fees are likely to make it easier for customers to understand what they are paying when they use the company’s services. However, it is unlikely to have a major impact on how people use PayPal’s crypto services. People who already want to use the company’s crypto services will do so while those who do not will continue relying on its fiat services. It is safe to say that many retail investors across the globe do not pay attention to trading fees. They are more interested in joining a platform that makes it seamless to invest in digital assets.


Thus far, the company only limits the crypto service to its US customers. The company has not announced plans to roll out globally. If it does, it could dethrone some of the leading crypto payment services in the world for those looking for a simple solution to buy, sell, and hold crypto.

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