PayPal, Venmo raise fees on cryptocurrency trades of up to $200

PayPal and Venmo's U.S. customers can buy, sell, hold and pay at checkout with Bitcoin, Ethereum, Litecoin and Bitcoin Cash

PayPal and Venmo are introducing a flat-fee structure on cryptocurrency trades of up to $200 in an effort to remove the "complexity of percentage-based calculations for the consumer." 

"This change is part of our ongoing commitment to provide transparency, ease of understanding and clarity to our customers," a PayPal spokesperson told FOX Business. 

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Effective Monday, trades between $1 and $4.99 will incur a charge of 49 cents, while trades between $5 and $25 will be charged 99 cents, trades between $25 and $75 will be charged $1.99 and trades between $75 and $200 will be charged $2.49. 

The company previously charged a minimum fee of 50 cents for cryptocurrency trades between $1 and $25, a fee of 2.3% for trades between $25 and $100 and a fee of 2% for trades between $100 and $200. 

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Trades between $200 and $1,000 will still be charged a fee of 1.8%, and any trades above $1,000 will continue to be charged a fee of 1.5%. 

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PayPal and Venmo customers in the United States can currently buy, sell, hold and pay at checkout with Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

PayPal ended 2021 with $1.25 trillion in total payment volume, with a record 5.3 billion transactions in the fourth quarter alone. Venmo processed approximately $230.1 billion in total payment volume, growing 44%. The company ended the year with 426 million active accounts, including 34 million merchants. 

Since PayPal's cryptocurrency service launched in October, first-time purchases of crypto via the mobile wallet have climbed 40%. PayPal expects its total payment volume to reach $1.5 trillion and revenue to surpass $29 billion in fiscal year 2022, with 15 million to 20 million net new active accounts expected to be added to the platform during the period.