As of March 29, 2017, currency conversion charges will increase from 2.5 to 3 percent on top of the exchange rate established by PayPal’s bank. Meaning customers will pay three percent more than the bank’s currency conversion difference when exchanging money internationally.
In addition, the standard transaction fee for sellers selling goods or services online to buyers outside the U.S. will jump from 3.9 to 4.4 percent plus the existing fixed fee based on the currency.
This does not affect Sellers/Buyers directly. Fiverr corporate handles our transactions and they pay the fees.
However, IMHO - I think we’ll see operational cutbacks like reducing the CS staff, in which case we’ll be indirectly affected.
Anyone have a guess as to how this may indirectly affect Sellers/Buyers? Any past experiences?
I got the email today, and in the long attachment I found an interesting clause, it´s in German, but it says about:
If you offer PP as a method of payment, you´re not allowed to present PP incorrectly in communication with your clients or in other publications or to bring it into disrepute.
So, as fiverr offers their/our customers PP…
I gave up Paypal long ago and switched to Payoneer. Too many restrictions, hassles, plus an endless stream of horror stories to boot. Fees can also be way higher depending on how you use each service.
It used to have the upper hand in regards to receiving payments from individuals, but with Payoneer rolling out the ‘Request a Payment’ option a while ago, the field was somewhat leveled.
This Series D Round investment that you referred to occurred over 2 years ago and the money has been allocated for the purpose of fulfilling the investment contract. In other words, it must be used for something like a merger or for acquisition purposes (Series D Round stipulation), and not operating expenses that will occur in the future.
I assure you, Fiverr will feel the PP rate increase because they’ve built their business on international transactions and that is a helluva rate hike. Every 1/16th % affects businesses like Fiverr and this is a whopping 1/2%++
My guess is that Fiverr will encourage Buyers and Sellers to use other payment providers. Which we should do to encourage international commerce.
I had been referring to their Series C funding but I see since then they received more funding in the form of Series D funding.
The Israel-based company plans to use the new funding to market its service and continue to build out its mobile app. The company also hopes to expand beyond the 196 countries it’s already tapping, according to the Journal and the company’s site.
Of course that was just what fiverr said about the $50,000,000 funding at the time.
Since then there has been more funding in the form of series D funding, so they seem to have plenty of funds:
Nov, 2015 $60M / Series D — Square Peg Capital 4 Aug, 2014 $30M / Series C — Qumra Capital 5
“The new investment by Square Peg Capital and the additional investments from Bessemer, Accel and Qumra Capital as well as from private investors like Jonathan Kolber and Guy Gamzu are tremendous validation for the vision that we’re bringing to life,” said Kaufman, Fiverr’s CEO. “This funding from new and existing partners will help expand our geographic footprint, compete for new talent, add innovative new features and more aggressively grow our company, potentially by acquiring other businesses in our space.” --exithub.com
So hopefully in light of all this funding fiverr can find a way pay for any Paypal increased fees.
On the enterprise level, these things are negotiated, not just handed down from PayPal. It is likely the announcement has no effect on Fiverr whatsoever. General Motors pays less for tires and then you and I, and Fiverr pays less for payment processing than us, too.