PayPal is giving digital start-ups a helping hand by waiving up to $50,000 in payment processing fees for 18 months.
PayPal’s Start-up Blueprint Program reduces the costs for start-ups helping them get up and running quickly, removing the complexity of payment processing, and helping them to expand while maintaining them as payment customers as they successfully go forward.
“Start-ups weren’t interested in investment from PayPal; what they were after was help with working out how payments work and getting up and running fast,” comments John Lunn, global director of PayPal’s developer network.
The start-ups need to be under five years old and making less than $3 million a year in revenue.
“Start-ups were going from being an idea to a multimillion pound business within two years, falling under the radar of a normal merchant bank because going from nothing to something very big so quickly is considered very high risk and that’s where PayPal can help,” said Lunn.
PayPal’s waiver of fees is carefully calculated, of course, ceasing at 18 months or $50,000, which equates to about $1.65 million in payments, because most start-ups sink or swim within 18 months.
It is not just money PayPal’s prepared to help with, however. Lunn explains: “We’re also offering start-ups the kind of ‘white glove’ support large companies like British Airways get, offering them a named, local contact at PayPal who will manage their account and help with their business models, plus access to start-up mentors and evangelists.”
PayPal is starting relatively small with a select number of start-up incubators in the US, EU and Israel, but is looking to expand into other territories with local language support.
“We’re starting slowly for now, but we’re looking to build it up with the right people in the right places,” Lunn said.
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