PayPal mobile payments service Venmo announced plans to raise the fee it charges for Instant Transfer transactions beginning next month.
In an email to users, Venmo said a new fee amounting to 1 per cent of the transfer amount will go into effect on 6 November. The minimum per transaction charge will be 25 cents, the same amount the service used to charge for each transfer.
Instant Transfers process much faster than traditional bank transfers, with funds becoming available within a half hour rather than two to three days.
PayPal said in a statement to Bloomberg the higher fee “reflects the value that Venmo’s services offer – providing speed and convenience for customers that want to transfer their funds to their bank accounts in 30 minutes or less”.
For customers willing to wait a few days, Venmo said it will continue to offer its standard bank transfer option for free.
The move follows PayPal’s appointment of Amit Jhawar as Venmo general manager in August, and comes as the company looks to tap into new revenue opportunities. In Q2, the service generated more than $14 billion in payment volume.Subscribe to our daily newsletter Back