This year Paypal expects to process on mobile twice as much as Braintree is processing as a whole.
The margins in this business are very small, .9% transaction fees on 11b are not that huge.
Where Braintree misses the opportunity is gathering better for young startups that are in the early growth phase. 100 EUR monthly minimum on .10c/trx fees is not easy to digest in the beginning.
FYI: Of the total Paypal is processing i.e. ~145B/year only half is Paypal branded i.e. appx $70-80B/year, the rest of it goes through Verisign gateway
"Interchange +.9% + €.10 per transaction. €100 per month minimum • Everything included • No additional fees". This is probably shown only to EU visitors.
I also confirmed this with braintreepayments support and their reply was: "The €100 is a monthly minimum based on a per transaction fee of €0.10. For example, if your first month of transaction charges are €68, you would need to pay an additional €32 to 'top up' the amount. Interchange + 0.90% is not part of the calculation. Only the per transaction fee of €0.10 is used to calculate the €100 monthly minimum."
When I switch the site to "United States" it reads:
"2.9% + $.30 per transaction. No additional fees • No minimums • Everything included"
Extremely annoyed by seeing this minimum applied only to the EU countries!
> Extremely annoyed by seeing this minimum applied only to the EU countries!
I would take a 100€ minimum over a 320% increase in transaction fees (2.9% vs. 0.9%) and a 130% increase in fixed per-transaction fees (0.10€ vs. $0.30 at current exchange rate) any day of the week.
Unfortunately it's interchange + 0.9%, not just 0.9%. Interchange ranges ~1.2-2% so the difference gets much smaller.
With a 100€ minimum the 10c transaction fee becomes 10c only after the first 1000 transactions (1000*0.1=100). If ignoring the variable part of the fee (%) then the break-even for this 10c vs 30c transaction comparison is at ~333 transactions. For a new company it takes a long time to get the first 333 monthly paying customers.
This year Paypal expects to process on mobile twice as much as Braintree is processing as a whole.
The margins in this business are very small, .9% transaction fees on 11b are not that huge.
Where Braintree misses the opportunity is gathering better for young startups that are in the early growth phase. 100 EUR monthly minimum on .10c/trx fees is not easy to digest in the beginning.