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Essentials Analysis Marketing

Should you change to PayPal Microtransactions?

You are probably wondering what "Microtransactions" is when talking about PayPal and we understand why. If you have just signed up for an account and connected it with your handshake/alert provider then you probably don't know much about the PayPal Fees in general.

PayPal is known for their extremely simple "plug and play" integrations, even though it can be a nightmare for the developer at times. This article is going to take limited countries into play, just to show you if you should in fact change over or not.

Before we go into mathematics and currencies, let us first have a look at the principal "Microtransactions". It is suited for when you receive a lot of small amounts of money, but alternatively gives a penalty fee for larger transactions to balance the sheet.

Overview

In this example are we primarily going to focus on the following countries. This is a list of the countries and they default fees and how it is calculated:

Country Fee Calculation
United States 2.9% + $0.30 ($*0.029)+0.30
United Kingdom 3.4% + £0.20 (£*0.034)+0.20
Denmark 3.4% + 2.6kr (kr*0.034)+2.60
Germany 2,49% + €0,35 (€*0.0249)+0.35

What about the Microtransactions?

Now understand that default fees are lowering with the default setup depending on your monthly turnover/income. Microtransactions are fixed to a specific formula and you should keep an eye out to when you should revert back to default the default formula.

Country Micro-Fee Calculation
United States 5% + $0.05 ($*0.05)+0.05
United Kingdom 5% + £0.05 (£*0.05)+0.05
Denmark 5% + 0.43kr (kr*0.05)+0.43
Germany 10% + €0,10 (€*0.1)+0.10

As you can see are some countries rather lucrative for your stream if the majority of your donations is below the United States $25 / United Kingdom £20 / Denmark 150kr / but not for Germany due to the highly increased fees — but then again, maybe 10% is not that much to you?

If your country is not on the list, go to this site and read all about your local fees: We get where you’re coming from.

Disclaimer: All the above examples are based in local transactions. The fees will vary depending on what country you receive money from. Currency Exchanges and Cross-Border transactions have a higher fee.

December 6th, 2018
Alex MrBetaSkull W.