PayPal is to close its Merchant Referral Bonus Programme on 12 August 2012.
The programme started in 2003 and allowed existing owners of a business account to receive a reward when they referred a new merchant to register for a business or premium account.
In the US, for the first 30 days after the referral, a USD1 bonus was granted to the referee once the new merchant reached USD200 in sales.
For the first 12 months, the referee used to be rewarded monthly with a bonus equal to 0.5% of the new merchant’s net sales (up to USD1,000 per month).
Similar conditions applied in Europe and for other currencies.
The referral service was a key part of PayPal’s acquiring strategy. According to its latest reported figures,PayPal’s merchant services business accounts for 67% of the company’s overall revenue. Payment volumes of USD23 billion were reported in the second quarter of 2012, up by 23% on last year.
The company said: “We’ve achieved even more than we hoped with this programme. We want to thank everyone who has taken part, it’s because of you that PayPal has grown into one of the most-respected online payment brands in the world. We are now proud to offer a robust and dedicated line of services for both partners and merchants.”