It is apparent that PayPal is one of the world’s most popular online payment service. Its popularity is tied to a huge number of users, so there is strong familiarity and trust around its offerings. It is also convenient since users need to know a person’s email address to transact. Perhaps its biggest advantage is the ability to hide banking details or information from the other party. However, knowing what it costs, which is usually nothing for buyers and a small fee for merchants is critical for customers.
Local users who withdraw cash from the service via Equity Bank will be graced by new tariffs, which went live at the beginning of March 2018. The development will see users pay up to 1% on withdrawals made at the lowest side. The fee varies based on the amount being transacted.
Here are the new numbers:
To withdraw USD 5001 or more, users will pay 1% of the withdrawal amount as service fees.
A USD 2001-5000 range attracts as 1.125% fees.
For USD 1001-2000 and USD 501-1000, customers will pay 1.25% and 1.375% of the withdrawal amount respectively.
Lastly, USD <500 withdrawals will cost 1.5% of the withdrawal transaction.
“Financial inclusion continues to remain at the core of our business strategy. We have listened to our customers and introduced new tiered withdrawal charges,” remarked Equity Bank Group CEO and MD, Dr. James Mwangi during the announcement of the new tariffs.
“The PayPal service with Equity allows our customers to accept payment globally and withdraw locally. By introducing tiered pricing, we hope to encourage more usage from businesses and consumers already using PayPal. At the same time, we hope to continue creating value for our users and as a result, increase their engagement level with this platform,” added Dr. Mwangi.