PayPal Adjusts Small-Business Structure, Pricing 

April 5, 2012

For the third time in less than a month, PayPal has made a major announcement affecting its small and midsize business customers. After unveiling PayPal Here—the company’s answer to Square that enables mobile acceptance of credit cards—and introducing its new president, the company yesterday moved to consolidate its offerings for online, offline and multichannel businesses into a single product with three tiers.

PayPal Payments for small and midsize businesses comprises its traditional online payment method, card-present payments using PayPal Here, mobile payments, invoicing and the prepaid debit card. The company also adjusted its pricing, adding a $5-per-month tier between its Standard free offering and its Pro level that costs $30 per month. The middle tier enables merchants to take payments without their customers leaving the Website. Pro level merchants can accept cards over the phone, fax and mail and also can design and host their own checkout pages.

“Every tier offers an integrated suite of products that makes it easy to take payments from mobile devices and in-person, as well as online,” said Ed Eger, senior vice president and general manager of PayPal Americas. “Small businesses should be focused on making their customers happy, not spending time worrying about handling the complex task of online, offline and multichannel payments in this new shopping environment.”


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