PayPal Inc. has announced new pricing for its money-transfer service.
The payments unit of eBay Inc. said Friday that it no longer charges a fee for people sending money to each other if both parties are in the United States and the transaction is funded from a bank account or money already stored in a PayPal account.
For transactions funded by a debit or credit card, PayPal charges 2.9% of the transaction value, plus 30 cents. The sender can pay the fee or require the recipient to cover it.
In a post to the company's blog, Heinz Waelchli, PayPal's director of product marketing, said that the new fee structure would make PayPal more appealing for transactions among friends.
"We hope these changes make it easier for you to send and receive money between your family and friends — without the hassles of checks or ATM machines," he wrote.