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 are only able to pay for your products using credit or debit cards.
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.
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.
Purchases made through PayPal will be charged 1% by Gumroad, instead of our usual 3.5% + 30¢ (or 6% instead of 8.5% + 30¢ for non-Pro accounts), in addition to any fees PayPal charges, which is most often 2.9% + 30¢.
Once you connect your PayPal account, you'll notice some new things:
- 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.
- The fee structure on these payments:
For premium accounts - on each sale there is a 1% Gumroad fee (6% for those without a premium membership) plus what PayPal charges. Read more about our fees. If you're in the US, PayPal lists its fees for domestic transactions and international transactions. If you're outside the US, find PayPal's fees for your country on this list.