Plastiq and Paypal Key international payments

[longtimelurker]

Just got an email from Plastiq, which might be useful in certain niche cases!

I wanted to reach out to you to let you know about our newest feature, global business payments on credit and debit cards. Now you can send payments in the currency your recipient prefers (20+ currencies), directly to them without incurring hidden conversion charges and fees by the recipient bank. 

Until the end of October, global business payments up to $10,000.00 made with your Paypal Key Virtual Card* will be eligible for discounted pricing:

• 1% Plastiq fee 
• $50 International Wire Fee // $10 Domestic Wire Fee

Please feel free to book time on my calendar to further discuss. I’d love to better understand your payables and which of your recipients you’re currently paying (or not paying) that may make sense for this product. I look forward to hearing from you. Please note that FX wires are also available on credit card at our standard fees. 

*Plastiq reserves the right to terminate this promotion at any time. Please reply back to this email to confirm participation. 

[blindambition]

It's quite surprising to see Plastiq push PayPal Key, but good info.

[Anonymous]

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@blindambition wrote:

It's quite surprising to see Plastiq push PayPal Key, but good info.

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Well it's cheaper for them too since debit fees are much lower than credit card fees so it doesn't surprise me they're pushing it at all. 

[longtimelurker]

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@Anonymous wrote:

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@blindambition wrote:

It's quite surprising to see Plastiq push PayPal Key, but good info.

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Well it's cheaper for them too since debit fees are much lower than credit card fees so it doesn't surprise me they're pushing it at all. 

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Yes, but on 10/9 you were predicting it would be blocked by Plastiq.....

[Anonymous]

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@longtimelurker wrote:

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@Anonymous wrote:

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@blindambition wrote:

It's quite surprising to see Plastiq push PayPal Key, but good info.

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Well it's cheaper for them too since debit fees are much lower than credit card fees so it doesn't surprise me they're pushing it at all. 

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Yes, but on 10/9 you were predicting it would be blocked by Plastiq.....

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It really depends on how PayPal reacts to it being used that way or more specifically, how credit card companies feel about it. It's early days, I don't see it lasting as a payment option because it's easily abused. 

[ccquest]

Yeah I don't really see how this can be maintained long term. Who's eating the processing fees? I'd somewhat be able to understand if it was sticking to MasterCard network cards because then they could limit it, but when you include Visa and Amex, what happens to the processing fee? Does Paypal just eat the cost?

[Credit12Fico]

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@ccquest wrote:
Yeah I don't really see how this can be maintained long term. Who's eating the processing fees? I'd somewhat be able to understand if it was sticking to MasterCard network cards because then they could limit it, but when you include Visa and Amex, what happens to the processing fee? Does Paypal just eat the cost?

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Losing money isn't bad, as long as you can gain it back somewhere else.

Paypal has more knowledge on the buying habits of their users. They can sell this to interested parties.

Paypal currently has a promo going for no processing free on QR code payments. They are no stranger to eating processing fees in order to push an ulterior motive which is more valuable than the processing fees they eat.