PayPal and Venmo will charge their customers a flat fee for cryptocurrency trades up to $200 starting March 21, after charging tiered fees on the purchases since accepting crypto payments last year, according to a Barron’s report Wednesday (Feb. 16).
Since launching crypto trades, PayPal and Venmo have taken a percentage cut of every transaction higher than $25, while trades under $25 are charged a minimum flat fee of 50 cents. Purchases or sales between $25 and $100 incurred a charge of 2.3%, while those between $100.01 and $200 were charged 2%.
The new PayPal and Venmo flat fees are higher for users who make smaller transactions, with people buying between $1 and $4.99 charged 49 cents for their purchases. Those who buy between $5 and $24.99 of cryptocurrencies will be charged 99 cents. Transactions between $25 and $74.99 will incur a $1.99 fee and transactions between $74 and $200 will cost users $2.49.
“This change is part of our ongoing commitment to provide transparency, ease of understanding and clarity to our customers,” a PayPal spokesperson said via email.
Trades of more than $200 will still be charged a 1.8% fee for anything under $1,000, while any transaction of more than $1,000 will be subject to a 1.5% fee.
Related: PayPal Creates Advisory Panel for Crypto
Last week, PayPal said it is adding several new members to its cross-disciplinary advisory council on Blockchain, Crypto and Digital Currencies (BCDC), including Fortress Investment Group Co-CEO Peter L. Briger Jr., Turning Award winner Dr. Shafi Goldwasser and Georgetown Law professor Chris Brummer.
The council also includes former Chairman of the U.S. Commodity Futures Trading Commission Timothy Massad, MIT Digital Currency Initiative Director Dr. Neha Narula and MIT Sloan School of Management professor Antoinette Schoar.
Also read: Venmo Debuts Gift-Wrapping Feature
In January, Venmo unveiled its gift-wrapping feature, giving users a new way to send money to their friends and family members. Users can choose from eight animated gift-wrap designs that can be added to a payment note.
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