Payment platform MobilePay will soon start charging customers a one percent fee for transactions of 400 euros and up, the Nordic company announced on Monday.
Millions of people in Denmark and Finland use the smartphone application to, for example, make payments to friends and family, buy used goods or make purchases at brick-and-mortar stores.
However, users who pay larger sums to private individuals might want to consider other methods, as the firm will start charging a fee for transactions exceeding 400 euros later this year.
The firm pointed out that users will not be able make several payments to the same person exceeding the 400-euro threshold over the course of one day without being charged the fee.
The new fee — which only affects transactions between private individuals — is set to go into effect on 24 March.
The fee will not apply to payments made to companies or organisations, the company explained in a press release.
MobilePay said that the purpose of the fee is to improve the company's financial sustainability. According to the firm, implementation of the fee will enable it to continue offering transactions below 400 euros free of charge.
MobilePay said that only two percent of money transfers made on the platform exceed 400 euros.
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