PayPal is relaxing some of its payment fees for small businesses due to the COVID-19 crisis – including allowing customers to defer repayments on business loans.
PayPal CEO Dan Schulman, appearing on CNBC TV, said, “We’re basically trying to give small businesses the flexibility to deal with the issues they have right now” during the pandemic. He added: “We’re one of the largest providers of working capital for small businesses, and we’re going to continue to provide that when we can.”
In addition, Schulman said the company would allow customers to request to defer repayments on any of their business loans and cash advances at no additional cost. Merchants will also be able to avoid chargeback fees if customers file a dispute with their credit card issuer, at least through the end of April.
Schulman also said PayPal will waive fees if businesses want to instantly withdraw money for their payroll and other expenses to a bank account or Mastercard or Visa debit card at least through the end of April.
Merchants will also have twice as much time to respond to a customer dispute.
Additionally, in partnership with Mastercard, PayPal will double the amount of instant cashback rewards on eligible purchases with a PayPal business debit card.
“[In] this country and around the globe, we’re going through waters that are uncharted for all of us, and I think it’s a time where companies that have a degree of financial strength … need to step up and we need to give,” said Schulman. “It’s the right thing for us to do.”
He added that the company would not be laying off any employees during the crisis, and said he wanted to make it clear that PayPal “has its employees’ back.”
Schulman also pointed out that PayPal has a strong balance sheet and a strong business model. “Digital payments are booming. People are at home; they’re doing more and more eCommerce, more and more charitable giving, through platforms like PayPal and Venmo,” he noted.
PayPal has more than 300 million consumers and merchants in more than 200 markets. Its key brands include Venmo, Braintree and Xoom.