Fixing the Fee Fog and Fine-Tuning PayPal
Enhancing P2P Transaction Experience through Transparent Fee Previews and Improved Payment Navigation
Enhancing P2P Transaction Experience through Transparent Fee Previews and Improved Payment Navigation
Enhancing P2P Transaction Experience through Transparent Fee Previews and Improved Payment Navigation
Fixing the Fee Fog and Fine-Tuning PayPal
Team
2 Product Designers
2 Product Designers
Role
UI/UX Designer
Duration
3 Weeks Nov 2024
3 Weeks Nov 2024
Overview
PayPal's P2P transactions are plagued by issues that create confusion, hinder trust, and lead to frustration and drop-offs.
PayPal's P2P transactions are plagued by issues that create confusion, hinder trust, and lead to frustration and drop-offs.
Objectives
Increase user satisfaction
Encourage users to utilise P2P services more frequently
Boosting overall platform engagement and customer retention
Increase user satisfaction
Encourage users to utilise P2P services more frequently
Boosting overall platform engagement and customer retention
Impact
Focused on improved fee transparency, efficiency, and user confidence in PayPal transactions.
100% Fee Comprehension: All users correctly identified transaction costs before confirmation (up from 30%).
Focused on improved fee transparency, efficiency, and user confidence in PayPal transactions.
100% Fee Comprehension: All users correctly identified transaction costs before confirmation (up from 30%).
Industry
Finance
Duration
3 Weeks Nov 2024
Team
2 Product Designers
Impact
Focused on improved fee transparency, efficiency, and user confidence in PayPal transactions.
100% Fee Comprehension: All users correctly identified transaction costs before confirmation (up from 30%).
Focused on improved fee transparency, efficiency, and user confidence in PayPal transactions.
100% Fee Comprehension: All users correctly identified transaction costs before confirmation (up from 30%).
Mentor
Context
It all started with a question when I wanted to pay my mentor. ”Do you mind if I pay another way? PayPal is so confusing!”
That was the moment I stopped and asked myself, why don’t I like PayPal? This simple question sparked a deeper curiosity: Was it just me, or were others struggling with PayPal too?
social activists
Insurance companies
Rehab Centers
Hospitals
Suppliers
Media
Scholars
Indirect stakeholders
Indirect stakeholders
Doctors
Municipalities
The government
SCI Families
SCI patients
direct stakeholders
direct stakeholders
SCI Partners & Caregivers
core Stakeholders
core Stakeholders
The problem
PayPal's P2P transactions create confusion, harm trust, and lead to frustration and drop-offs.
According to our research, users face challenges that erode trust and usability, resulting in transaction frustration and lower engagement.
However, the hospital trauma bay team often know very little information about the situation, events, and interventions that occur during and after the trauma. Upon arrival, a 30-second verbal handover from the paramedics to the trauma bay team takes place as they debrief them of the essential information. Soon after, the trauma bay team take over to re-examine and evaluate the patient once more, creating a redundant process.
Content
"The partner had to cope with the shock, support the injured partner during the institutionalized rehabilitation, and struggle to make their relationship and life together function again."
"They were struck by the brutal fact that their partner had been seriously injured, and their own needs faded into the background."
"The partners experienced much distress and appreciated the support they got but felt that they were mainly left to manage the difficult process on their own."
(Johnson et al.)
Initial Research
PayPal's usability issues are driving users away, amplifying frustration in public discussions.
By optimizing these elements, PayPal can increase user satisfaction, improve transaction completion rates, and encourage users to utilize P2P services more frequently, ultimately boosting overall platform engagement and customer retention.
Research Insights
user interviews revealed the difficulty of use and lack of transparency when making P2P transactions.
Themes started to emerge after we mapped all the insights. These were the most shown themes, which gave us solid ground to further plan our process.
Talking to the Users
Data Visualization
transparency, navigation, and payment flexibility at the core of what users need.
Research Insights
user interviews revealed the difficulty of use and lack of transparency when making P2P transactions.
Themes started to emerge after we mapped all the insights. These were the most shown themes, which gave us solid ground to further plan our process.
Talking to the Users
transparency, navigation, and payment flexibility at the core of what users need.
Who are we designing for?
We looked into patterns of needs, pain points, and goals of the users.
There are two types of users using PayPal for P2P transactions: one is frequent users seeking efficiency, and the other is infrequent users seeking transparency based on gathered insights through desk research and user interviews.
What are the archetpes of the users?
We looked into patterns of needs, pain points, and goals of the users.
There are two types of users using PayPal for P2P transactions: one is frequent users seeking efficiency, and the other is infrequent users seeking transparency based on gathered insights through desk research and user interviews.
How might we help?
Competitive Analysis
PayPal falls short in many aspects compared to modern fintech apps such as Revolut, Wise, and Skrill.
To address the problems we identified, we analyzed popular fintech apps used for P2P transactions, such as Revolut, Wise, & Skrill. Here are the summaries and in-detail analyses of them.
How others are handling …
How others are handling …
Direct access to core features
Revolut's hierarchical structure ensures that key actions (Add Money, Exchange) are easily at reach.
Contact search is versatile and dynamic, offering categorisation and search by multiple identifiers (phone, @username, email).
Fee & Exchange rate Transparency
Revolut only presents fees at the point of transaction, keeping the interface uncluttered while ensuring that fees are clearly broken down before confirmation.
The order review step reinforces trust by ensuring users understand the total amount, fees, and conversion rates.
Easy Access to core Actions
Wise's homepage structure ensures that key actions (Send, Request, Add Money) and the most needed functionalities are easily within reach.
Increased user awareness prior to, during, and after the transaction
No surprises at checkout with clear and upfront fees.
Deductibles and fees are displayed at every stage, reinforcing trust and eliminating uncertainty. Whether it’s currency exchange, transfer fees, or payment breakdowns, Wise makes sure the user never encounters hidden costs.
Picking the right solutions
What are the most feasible ideas based on their impact and effort?
Impact-Effort Matrix: Our mentor also joined us and voted on the best ideas and we have decided to work on the ideas in the next chapter.
To address the problems we identified, we analyzed popular fintech apps used for P2P transactions, such as Revolut, Wise, & Skrill.
Here are the summaries and in-detail analyses of them.
Technicalities
Talking to the Users
Font size, colors, and text spacing have a significant effect on the rate of accuracy of a visual search and the reaction time during each search period.
When designing the information, on-glance legibility was an important thing to consider, as the surgeons, doctors, and nurses would use the screen as a fast means of retrieving information. Their attention is limited, so the cognitive load had to be minimal. High contrast was used to display quantitative physiology data such as HR and SpO₂ numbers.
The dark background is scientifically proven to have better results when paired with high-contrast colored numbers. Each physiology indicator was assigned a color based on conventions observed through patient monitoring systems. A proper font and size balance was also achieved by using a bold Helvetica weight commonly used with modern patient monitoring systems.
What Users See
What Users See
What Users See
The role of human and clinical judgment in our AI feature was heavily criticized.
User testing revealed how our product was perceived positively by medical personnel. Most claimed to understand what it does, and what it aims to solve. However, the AI prediction concept was underdeveloped, as many did not understand the need for it, let alone how it worked.
The interface
The interface
A great fintech app feels secure, provides full financial clarity, and minimizes friction. If an app is trustworthy, clear, and efficient, users will engage with confidence—and keep coming back.
So I have learned that fintech apps MUST prioritize transparency without adding friction to the user experience.
A great fintech app feels secure, provides full financial clarity, and minimizes friction. If an app is trustworthy, clear, and efficient, users will engage with confidence—and keep coming back.
So I have learned that fintech apps MUST prioritize transparency without adding friction to the user experience.
Giving users more control over their financial experiences enhances engagement and ensures higher user satisfaction.
Users have different financial behaviors—some prefer speed, others prioritize control. A well-designed fintech app should adapt to different user needs.
Users have different financial behaviors—some prefer speed, others prioritize control. A well-designed fintech app should adapt to different user needs.
The reduction of decision fatigue can be achieved by appropriate timing.
Financial decisions require confidence, but when too much information is presented at once, it can overwhelm users rather than empower them. Instead of forcing users to process everything upfront, breaking details into digestible, well-timed steps allows them to focus on what matters in the moment—whether it’s understanding fees, choosing the best payment method, or reviewing their final transaction.
Financial decisions require confidence, but when too much information is presented at once, it can overwhelm users rather than empower them. Instead of forcing users to process everything upfront, breaking details into digestible, well-timed steps allows them to focus on what matters in the moment—whether it’s understanding fees, choosing the best payment method, or reviewing their final transaction.
Fintech products must continuously evolve to meet user expectations and remain competitive in a rapidly changing landscape.
While PayPal is a widely recognized platform, competitors like Revolut and Wise have set new standards, especially in fee transparency and frictionless transactions. It seems that PayPal excels in onboarding and user acquisition but struggles with user retention due to friction in navigation, hidden fees, and a lack of personalization.
While PayPal is a widely recognized platform, competitors like Revolut and Wise have set new standards, especially in fee transparency and frictionless transactions. It seems that PayPal excels in onboarding and user acquisition but struggles with user retention due to friction in navigation, hidden fees, and a lack of personalization.
Refining my design
User feedback drove clearer, faster, more flexible planning
Insights from the second round of testing highlighted navigation friction, readability gaps, and limited editing freedom. In response, I grouped related data visually, improved contrast, added default day suggestions, and enabled quick switching between activities—turning feedback into a smoother, more intuitive setup flow.
Left: After feedback, Right: Before feedback
The interface
A great fintech app feels secure, provides full financial clarity, and minimizes friction. If an app is trustworthy, clear, and efficient, users will engage with confidence—and keep coming back.
So I have learned that fintech apps MUST prioritize transparency without adding friction to the user experience.
A great fintech app feels secure, provides full financial clarity, and minimizes friction. If an app is trustworthy, clear, and efficient, users will engage with confidence—and keep coming back.
So I have learned that fintech apps MUST prioritize transparency without adding friction to the user experience.
Giving users more control over their financial experiences enhances engagement and ensures higher user satisfaction.
Users have different financial behaviors—some prefer speed, others prioritize control. A well-designed fintech app should adapt to different user needs.
Users have different financial behaviors—some prefer speed, others prioritize control. A well-designed fintech app should adapt to different user needs.
The reduction of decision fatigue can be achieved by appropriate timing.
Financial decisions require confidence, but when too much information is presented at once, it can overwhelm users rather than empower them. Instead of forcing users to process everything upfront, breaking details into digestible, well-timed steps allows them to focus on what matters in the moment—whether it’s understanding fees, choosing the best payment method, or reviewing their final transaction.
Financial decisions require confidence, but when too much information is presented at once, it can overwhelm users rather than empower them. Instead of forcing users to process everything upfront, breaking details into digestible, well-timed steps allows them to focus on what matters in the moment—whether it’s understanding fees, choosing the best payment method, or reviewing their final transaction.
Fintech products must continuously evolve to meet user expectations and remain competitive in a rapidly changing landscape.
While PayPal is a widely recognized platform, competitors like Revolut and Wise have set new standards, especially in fee transparency and frictionless transactions. It seems that PayPal excels in onboarding and user acquisition but struggles with user retention due to friction in navigation, hidden fees, and a lack of personalization.
While PayPal is a widely recognized platform, competitors like Revolut and Wise have set new standards, especially in fee transparency and frictionless transactions. It seems that PayPal excels in onboarding and user acquisition but struggles with user retention due to friction in navigation, hidden fees, and a lack of personalization.
First solution
Providing users with Clarity and Control
The new homepage simplifies navigation by placing key financial actions Transfer, Exchange, and Add Money at the centre of the screen.
The new homepage simplifies navigation by placing key financial actions Transfer, Exchange, and Add Money at the centre of the screen.
❝ Some options feel buried inside menus I just want to send money quickly. ❞
❝ On PayPal, some options are not clear at all and are not easy to find at first, like adding to my balance or exchange rates when sending internationally. ❞
❝ I have ADHD and I have problems finding options on this app a lot. It takes too long to find what I need, especially when I’m in a hurry. ❞
Key payment actions (Transfer, Exchange, Add Money) are prominently displayed at the top, reducing friction.
Alerts provide proactive notifications for users to manage their balance.
The homepage is cleaner, with a focus on transactions rather than promotions.
❝ I wish I didn’t have to see the profile and photo of people I sent money to once a year ago—it makes it hard to focus on what I need to do.❞
❝ At first, I was really confused about how to do transactions, but after a while, it became easier. It shouldn’t take this long to figure out.❞
We organized options more clearly. Payment actions like "Send," "Bill," "Give," and "Request" are tabbed at the top, making it easier for users to find and switch between different payment methods
Icon colors are changed to reduce distractions, and layout changes help reduce cognitive load.
Second solution
Enhancing Fee Visibility & Transparency To Avoid Surprises
❝ I just had money transferred that was $10, but for some reason I got a fee for it. Why did I get a fee? I never got fees before. ❞
❝ Trying to send 120 pounds to England, but the app kept asking for extra money due to unclear fees.❞
We surfaced the fee breakdown at multiple points throughout the transaction process to ensure users are continuously aware of the cost.
From selecting the payment method to the final review screen, fees are clearly displayed—including PayPal fees, exchange rates, and total payment amount.
Users can compare different payment methods and their associated costs before proceeding.
❝ Sometimes I don’t realize I need to add money until the last step. ❞
The original design only allows the user to enter an amount with a small currency selector next to it. The exchange rate is only visible later in the process.
The screen doesn’t show the user’s available balance, making it unclear whether they need to add funds.
The redesigned screen shows both the sender’s and recipient’s currency right from the start, along with the exchange rate. This prevents surprises about conversion rates later in the flow.
Our design displays the PayPal balance directly below the amount field, making it easy to see if a top-up is needed.
Third solution
Removing the Uncertainty in Currency Conversion
❝ I did not know if the fee is from PayPal or the exchange rate itself.❞
❝ I don’t want to guess if it’s a good time to send money, I need to see how rates have changed before I decide.❞
The old screen (left) shows only the static exchange rate at the moment of the transaction. Users must trust that they are getting a fair rate without any context.
The redesigned screen introduces a graph displaying historical exchange rate trends, giving users insight into fluctuations over time (weekly, monthly, and annually).
Users only see the exchange rate without a clear indication of how it affects fees or the final amount.
The new version explicitly separates the exchange rate and any additional fees, ensuring users understand what they’re paying for.
User Feedback
User Feedback
All the five testers identifieds transaction fees acurately & mentioned their desire to see a more modern look.
Repeating the questions we asked the users,we noticed improvement int two areas, Fee comprehension and user satisfaction
Lessons Learned
Transparency is the key to user trust.
The most important lesson I learned was the values and concerns of users when working with their money.