Overview
PayPal's P2P payment experience had usability issues around fee transparency and currency conversion that were leading to user frustration and drop-offs. I conducted research to understand the pain points, analyzed competitor solutions, and redesigned key flows to improve clarity and trust. Testing with five users showed improved fee comprehension and higher satisfaction scores compared to the original design.
Team
Role
Product Designer (Personal Project)
Duration
Accomplishments
Identified Critical Fintech UX Patterns
Analyzed leading fintech apps (Revolut, Wise, Skrill) to understand modern payment UX standards
Discovered fee transparency and real-time data are baseline expectations, not nice-to-haves
Mapped where PayPal's experience falls behind competitor benchmarks
Designed Trust-First Solutions
Redesigned fee visibility across the entire transaction flow
Introduced historical exchange rate data to build confidence in pricing
Created real-time balance awareness to eliminate checkout surprises
Validated Outcomes
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?
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.
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.
Who are we designing for?
What are the archetpes of the users?
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 are others handling the same issues?
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?
CV
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.
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.