Are Venmo's New Fees Good News for PayPal Investors?
PayPal (NASDAQ: PYPL) just informed users of its peer-to-peer payments app Venmo that a new fee structure will go into effect July 20. Under the app's new terms, individuals (not just registered business accounts) will be allowed to sell goods and services on Venmo for an extra charge comparable to a credit card processing fee: 1.9% plus $0.10 per transaction, the same charge a registered business would pay on the platform.
The company's reasoning for adding this feature is to allow more people to sell goods and services on Venmo with the benefits of payment protection. More importantly, monetizing Venmo's massive user base signals that the app may finally become a moneymaker for the company in the near future.
Image source: Getty Images.
Source Fool.com
