PayPal’s rate increase comes despite a proliferation of new digital payment channels in recent years as financial technology startups target their digital innovations at the way consumers make payments. With the jump in e-commerce activity during the COVID-19 pandemic, rival payment methods won new customers.
Major established competitors like Square and Google Pay have been attracting more users and younger startups like Stripe and Payoneer are raising new capital to build their businesses as well. In a June 18 report, Reuters called PayPal’s increases a “bold move in an increasingly competitive digital payments sector.”
