Pros and Cons of Using Paypal
PayPal is one of the most widely used payment service providers. It allows users to transfer money directly from their bank account or debit card to another user’s PayPal account. Users can also send money through PayPal using a credit card or debit card.
Fortunately for both businesses and customers, there are many pros to using Paypal as a payment method for your online store or eCommerce website. Read on to learn more about the advantages of using Paypal as a payment processor and how it can help your business grow.
Easy to Set up and Use
When you start an online store, you might think of ways to accept online payments. Accepting online payments is a big challenge for most businesses because there are many payment options available, but not all of them are easy to use for sellers.
PayPal is one of the easiest payment methods for you as a seller because you don’t need to set up a merchant account or integrate any other system. All you have to do is just add a ‘Checkout with PayPal’ button to your website. That is it!
You can also create a ‘Buy Now button if you are selling physical products. You can either use your existing PayPal account or create a new account for receiving payments. However, it is recommended to have a separate account for receiving payments from your customers because it allows you to keep track of your finances.
Widely Recognised Brand
Another advantage of using PayPal as a payment method is that it is a widely recognised brand. According to a survey conducted by PayPal, 83% of online shoppers are familiar with PayPal as a payment service.
Hence, when you set up an online store and start accepting online payments, customers are most likely to know about PayPal and choose it as a payment method. When customers recognise your payment method as a widely used and trusted payment method, they will feel more confident in buying from you and are more likely to make repeat purchases.
The brand recognition of PayPal is also a huge advantage for new businesses that are just starting out and are running an online store.
Even though you have a small customer base at the beginning, you can encourage customers to use PayPal as a payment method because it is a widely used payment method. This will help you to grow your customer base and increase your sales.
Another advantage of using PayPal as a payment method is that it is a secure payment method. Customers like to use PayPal as a payment method because they feel safe while making online payments.
They know that their personal and financial information is safe because PayPal is verified and uses secure payment architecture. The company uses advanced fraud prevention algorithms and constantly updates its security features to stay ahead of cybercriminals.
PayPal is also one of the most trusted payment methods globally and has served millions of customers. Hence, customers prefer using PayPal as a payment method for their online purchases.
Good Customer Service
When you are setting up your online store and you are deciding on which payment method to adopt, another advantage of using PayPal as a payment method is that it has good customer service.
If your customers are having any issues or have questions regarding the payment process, they can contact PayPal’s customer support team. The team will help them with any issues they are facing while making payments, and they will also help your customers if they are confused while making payments to your online store.
Hence, PayPal acts as an added advantage for both you and your customers. Your customer can easily contact the team and get their issue resolved while the team will help make the payment process easy for them.
In-built Marketing Tools
Another advantage of using PayPal as a payment method is that it has in-built marketing tools. When a customer makes a payment, they are prompted to leave feedback and rate their experience.
You can use this feedback to improve your business and grow your brand. You will be able to see the feedback and rate for your business.
Hence, you can use these statistics to make improvements in your business and understand where you need to make changes in your business. You can also use these stats to engage with your customers and ask for feedback and suggestions.
Cons of Using Paypal
While there are many advantages of using PayPal as a payment method, there are some disadvantages as well. The biggest disadvantage is that PayPal charges a percentage fee for receiving payments through their payment methods.
For example, if you are accepting payments through PayPal using their ‘Buy Now button, they will charge 2.9% + $0.35 per transaction. If you are accepting payments through their ‘Checkout button, they will charge 2.9% + $0.30 per transaction. You need to bear these costs in mind while setting up your online store.
Another disadvantage of using PayPal as a payment method is that it is you can’t use it everywhere in the word. The payment method is available in most countries, but not all. Hence, you need to make sure that your business is targeting only the countries where PayPal is available.
How to Start Using Paypal for eCommerce?
There are three ways you can start using PayPal for your online store. You can either use the ‘Buy Now’ button, the ‘Checkout’ button, or the ‘Accept Payments’ button.
While the first two methods have their advantages and disadvantages, the third method is suitable for businesses that are looking for long-term growth and scalability.
The ‘Accept Payments’ button is suitable for businesses that want to use PayPal as a payment method for their online store but don’t want to keep track of their finances.
You can set up an online store with the “Accept Payments” button. You will get the money directly into your account. And you can withdraw these funds anytime.
Final Words: Should You Use Paypal for your Business?
If you are setting up an online store or an eCommerce website, you need a payment method where your customers can pay easily, safely and quickly. PayPal is one of the best payment methods, and it has several advantages that make it a great choice.
The payment method is easy to integrate into your website. It has wide brand recognition, it is secure, and it has good customer service. However, there are some disadvantages to using PayPal as well.
You need to take these into consideration before deciding on which payment method to use for your business. Even though there are some pros and cons of using PayPal as a payment method, it is the best payment method for online businesses.