PayPal is closing down its Money Market Fund on July 29 of this year.
The electronic payment company allowed users to put their money they earned from their PayPal transactions in a Money Market Fund to accumulate interest. Customers also had the option to have their free cash balances swept into the Fund in order to earn income until the cash is used. The shares of the fund could be redeemed to pay for transactions such as payments, purchases and other electronic money transfers from PayPal customer accounts.
According to a PayPal representative in a interview for SmartMoney, "market conditions, financial advantages of the money market fund have diminished."
Previously PayPal had issues due to their fund which was seeing around 5 percent in returns. But lately, their fund earned around 0.15% in returns.