You want to make it as easy as possible for your customers to pay you. After all, you want to get paid on time, right?
As you’ll find, roughly 70% of online shoppers use credit and debit cards and nearly 40% use payment portals like PayPal to complete their digital transactions.
Unless you’re going to build your own payment gateway to process these plastic transactions, you’re going to need to connect with a payment portal.
If you’re not already doing so, then it’s time to look into it. One payment platform you should consider is PayPal.
It’s responsible for processing a whopping $451 billion in America alone. It’s a popular choice for global e-commerce and for good reason.
Let’s take a closer look at some of these reasons and why having your own payment gateways may not be the answer for your company.
What is a Payment Gateway?
When you first open a business, one of the hurdles you’ll have to jump is determining how you’ll process customer payments. One option is to use a payment gateway.
This is what you’ll find at all sorts of businesses, such as grocery stores and retail shops. The payment gateway allows these companies to accept payments in person using a point of sale terminal.
For example, the card reader you use to purchase your goods.
But the same thing can be set up for online purchases. In this case, the gateway is the form customers fill out with their personal details and credit/debit card information.
Trying to build your own payment gateway sounds like a way to cut costs – but the management of all that data can be critical. This means, you’re responsible for the security of their data.
If there’s ever a breach, then you could end up in a hefty lawsuit.
This is why most merchants opt to use a third-party payment gateway instead, such as PayPal.
Here’s a look into why you should do the same.
1. Offer Your Customers Enhanced Security
Trying to manage your own payment gateway is time-consuming and expensive – especially if it leads into a lawsuit. With PayPal, you’re getting access to a secure gateway your customers can use to complete their transactions.
By adding this option to your website, you will allow customers to buy directly from your business. Once they click the PayPal option, they are taken to another portal away from your site.
This is key because the transaction isn’t handled on your website. Once they log in and confirm the payment, the transaction is processed and they’re returned to your site.
No credit card data is submitted via your site so there’s no critical data for you to manage. This would also require you to be PCI-compliant, which is a whole other story.
By using PayPal, you simplify the payment process for both your business and its customers.
2. Offer a Better Customer Experience
Nothing’s worse than shopping with a business that doesn’t accept your preferred method of payment. There are hundreds of millions of consumers that use PayPal to shop virtually.
So if you’re a merchant, having multiple payment options is key. A lot of people like to use PayPal because there’s no need to enter private financial details.
They simply log in and confirm the total for payment. They can also choose to pay using their PayPal balance or a connected credit or debit card.
In order to offer a seamless and quick buyer experience, you need payments to go smoothly. With PayPal, users can quickly checkout.
You’ll also be able to accept all major credit cards from customers that don’t have PayPal accounts. Then if you’d like to offer an additional payment method, you’re able to add the PayPal Credit option (no additional cost).
This allows customers to pay nothing upfront, if they qualify for PayPal Credit.
3. Accept Domestic and International Payments
Going global is a big achievement for any business. But with it comes roadblocks, like accepting payments from different countries.
The most common problem are the varying currencies. Having a way to convert currencies into your preferred currency is key. Otherwise, you’re left with money you can only spend in its country of origin.
With PayPal, you’re able to accept 25 different currencies from 203 markets around the world.
So why limit your sales to only local customers when you can go international? PayPal makes it quick and easy to accept payments for your merchandise.
Just be sure to list which countries you accept purchases from, since the shipping costs can skyrocket based on the area they’re in. Plus, you want to factor in whether or not you have the means to convert their currency.
4. Lower Your Transaction Fees
When you start to research how much businesses spend on processing transactions, you’ll find PayPal is one of the most affordable. For example, Authorize.Net charges a monthly fee of $25 plus 2.9% + 30 cents per transaction.
And then they only accept payments from five countries, 11 different currencies, and six card types. PayPal, on the other hand, charges nothing monthly, but does charge per transaction – 2.9% + 30 cents.
But they also processes payments from 203 different countries, 25 different currencies, and 9 types of cards. The combination of low charges and larger global scale makes it a popular choice among both consumers and businesses.
So as you’re looking around for a payment gateway, be sure to check out the fees to ensure it’s within your budget.
5. Begin Accepting Payments Quickly
In business, you can’t afford to wait days or weeks to get your payment systems set up. That’s one of the benefits of using PayPal.
It’s quick and easy to get it all set up so you can begin accepting payments right away.
The same can’t be said when you’re attempting to implement your own payment gateway.
This is ideal whether you’re just setting up shop and need to begin earning revenue as quickly as possible. Or if you’re switching payment gateways and need to get set up fast and easy.
This is one of the reasons many businesses integrate PayPal into their payment system.
It’s also important to note that PayPal integration doesn’t come with the burden of an extensive and strict application process. This is what you can expect to go through when setting up your own payment gateways and terminals.
There are IMA requirements that must be met before you’re able to begin processing payments. For instance, you must show a detailed business plan, suppliers, and trading history, among other things.
You don’t have to go through any of this when setting up your business PayPal account.
Because of this, the setup time is much faster.
6. Receive Payments Instantly
Unless your customers are sending you an e-check, all PayPal-to-PayPal and card transactions are processed right away. This is one of the top benefits of using this payment platform, especially when you need the money to dropship or replace inventory.
Businesses in the service industry also benefit from the ability to get instant payment. For instance, they can confirm receipt of payment and begin offering their service to the customer.
It also puts the customers at ease when they know they’re items or services will arrive soon due to prompt payment. This helps build trust with new customers and maintains steady cash flow for your business.
7. Set Up Recurring Payments
If you’re offering a subscription for a product or service, then it’s good to be able to set up recurring payments. This ensures your customers receive their item or service like clockwork without interruption.
Plus, it allows you to secure consistent cash flow for your business each month. With PayPal, you can easily set up a subscription-based product for your clients to purchase.
This beats having to constantly send out invoices and payment reminders to your customers. They’re automatically billed via PayPal either through their credit/debit card, bank account, or PayPal balance.
You can also use invoicely to schedule regular invoicing and payment reminders. This platform also allows you to accept PayPal payments.
8. Become a Reliable Seller
When you’re able to process payments fast and deliver goods or services promptly, it helps to raise the bar for your business. You’ll gain the trust of your clients and build a reputation as being a reliable company.
Being labeled as reliable is critical in the online marketplace. So whether you’re an e-commerce store or a service provider, having consistency in your payment processing is expected.
If your system is always down or faulty, then you’re going to lose this status. The great thing about using PayPal is that you get a platform that has a team of technicians constantly working to keep the system up and running smoothly.
Considering Implementing PayPal Today!
What do you have to lose by adding PayPal to your payment system? It creates an additional stream of revenue that you may be missing out on today.
If you’re constantly being asked if you accept PayPal or are being overcharged for your credit card payment transactions, then this switch may be for you.
Hopefully, this guide helped you to better understand what makes PayPal an exceptional payment gateway for businesses.
If you decide to use it, let us know in the comments how it works for you!