Due to changes in PayPal's policies, as of January 1, 2021 we have changed how Gumroad's creators collect payments via PayPal.
To creators from Brazil, India, Israel, Japan, Micronesia, or Turkey: This change is NOT applicable to you. Your customers will be able to purchase your products via PayPal, and you will be paid out for all your sales via PayPal.
From 2015 - 2021, if one of your customers bought your product using PayPal, the money went into your Gumroad balance. The money from the sale then sat there for at least 7 days, and then was sent on Fridays to your bank account or your PayPal account (depending on your geographic location).
As of January 1, 2021, PayPal changed the structure of their merchant accounts, and now require all eligible Gumroad creators to connect their PayPal and Gumroad accounts, in order to allow customers to buy through PayPal.
What this means for you
As a creator, you have two options. You can either do nothing, or you can choose to re-enable PayPal, connected to your own account.
By default, all customers can pay using credit/debit cards (i.e. Stripe)
By default, customers do not have the ability to pay using PayPal.
To allow your customers to use PayPal, you must connect your own account in the Payments settings tab
Option 1: Do Nothing
If you choose not to connect your PayPal account, nothing will change from your perspective. Your Gumroad user experience will remain entirely unchanged. The only difference will be customer-facing: your audience will not have the option to use PayPal to purchase your products and memberships.
Depending on your audience, this may have a material negative effect on your conversion rates. Approximately 38% of purchases on Gumroad are made with PayPal, though we do not know what percent of those customers would have still made a purchase if PayPal was not an option. You know your particular audience better than we do, but for most creators we recommend taking action to keep PayPal as an option for your customers.
Option 2: Connect your Own PayPal Account
If you want to give your audience the option to use PayPal at checkout, we've made it as simple as possible to connect your PayPal account to Gumroad.
For sales via Paypal Connect, the fee structure is slightly different than non-PayPal sales: The fees starts at 7% + PayPal's fee (2.5%+), then drops to 5% + PayPal's fee after you earn $1,000, 3% after $10,000, 1% after $100,000 and goes to 0.9% after $1,000,000 in lifetime revenue on Gumroad.
In case you are on our old (now deprecated) fee structure: Purchases made through PayPal will be charged 1% by Gumroad, instead of our usual 3.5% + 30¢ for Pro accounts (or 6% instead of 8.5% + 30¢ for non-Pro accounts), in addition to any fees PayPal charges.
Once you connect your PayPal account, you'll also notice that PayPal payments to you will be instant. Any time a customer buys a product from you using PayPal, the money shows up in your PayPal account.