Home – New Forums Selling online Paypal pricing. US cheaper than Aus? Reply To: Paypal pricing. US cheaper than Aus?

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John Debrincat
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Pawpost, post: 147630 wrote:
So instead of the Love it or leave it explanation, why not offer up something more useful: Yes, Comany A is priced higher here in AUS, but Company B is doing it for $X. Why not give them a try? Seems more helpful :)

Paymate seems to offer something similar to paypal:
http://www.paymate.com/cms/index.php/sellers/why-sell-with-paymate/fees-a-charges/australian-seller-fees

Well you may not like the answer but it is what it is. Costs and required margins will determine price. In your Paymate example it is actually more expensive than PayPal for the standard seller rate. Remember that PayPal have a local Australian office, local staff and have a local Financial Services licence and so need to comply with local conditions therefore local cost structure. Probably why PayPal and Paymate are similarly priced.

In the USA it is a much more competitive market with totally different dynamics than here in Australia. Financial institutions here have greater requirement for governance and governmental controls than in the USA which is actually a good thing and probably saved us a load of pain in the GFC.

The USA and other markets around the world generally are driven by local competitive pressures first. For instance you can get 0% credit cards and 0% car loans in the USA.

If you head to some European markets you will find that they are more expensive than Australia for some things. Basically because the costs in those markets are higher then here in Australia.

However some European cars here are more than twice the price of equivalent models overseas. It that case it is down to import duties, excess tariffs, transport and costs of local labour here for sales, service and administration.

It is a very simple economics 101.

John