Why are PayPal fees larger than card processing?

Question

Quoting from https://www.paypal.com/business/feesIf the funds you are receiving are coming from a PayPal account: then you pay: In the U.S. a fee of 3.7% of the transaction amount plus $0.30 USD. Outside Canada and the U.S. a fee of 3.9 % of the transaction amount plus a fixed fee based on the currencyI was expecting fees lower than Stripe when customers pay with their PayPal balance, and same as Stripe when paying with cards through PayPal.How come PayPal is more expensive? Do they rely on customers preferring PayPal instead of sharing their card details with sites (even through it's in a Stripe popup, customers don't know about Stripe)

SamReidHughes · Accepted Answer

That link doesn't work. At https://www.paypal.com/us/webapps/mpp/merchant-fees, I see 2.9% + $0.30, for in-U.S. transactions done in dollars.

javaIsGreat · Answer

PayPal users can get added security/ease of use by not having to re-enter details in browser, so I assume that probably reduces the amount of customers from bailing on a purchase half way through inputing their payment details.Thats value merchants pay for i guess

jsumrall · Answer

Just speculating, but maybe because PayPal can support lots of methods behind the scenes rather than you needing to support them, either with a PSP or otherwise.