To increase your sales, it is important to choose the correct Payment Method. If you can see that customers are abandoning their cart on the payment details, it is time to go for a better payment method that offers more options. One of the most trustworthy payment services according to customers is PayPal. Not only to the United States, it has offered its services to all the people worldwide.
Why Should You Opt for PayPal?
Today, PayPal is a one of the most used payment platform in almost all of the ecommerce websites. About seventy two percent of all the online shoppers have a PayPal account. If you are starting a new business, to accept payments from customers, PayPal will be present at every step. This is because PayPal currently operates in 203 markets and has more than 150 million active user accounts. Imagine the connectivity!
So if you want to Start a new online business, go to one of the many PayPal partners such as Shopify, GoDaddy and BigCommerce. If you already have an online business and are ready to scale it to the next level, opt for options such as Magento and XCart. For every other service that you wish to integrate with your website, you will find that one PayPal account can take care of all.
Benefits of PayPal
From offering multiple payment options to customers to giving features such as Express Checkout, and PayPal Pro, PayPal has many benefits. Mentioned below are some of them:
- Faster Checkout- With the PayPal’s Express Checkout button, save your customers the hassles of providing all their minute details for buying your product.
- Mobile Friendly- Allow your customers to pay for their products from their mobiles as well. It currently supports iOS and Android phones.
- PayPal Pro- Pay a little more and experience a more customizable payment system for your customers.
- Customer Support- When it comes to customer support, PayPal rules the industry. It is in business since the past 20 years and these numbers have only added to the quality of services and support that it provides.
PayPal Fee Structure
PayPal pricing is pretty simple. You simply pay for your transactions. There is neither a startup cost nor a terminating fee attached to your account. However, if you have opted for PayPal Pro, a 30$ monthly fee will be levied.
The margin per transaction is different for different levels of income. If you are just starting out and earn less than 3000$ monthly, your transaction fees will be charged at 2.9% of your transactions. As your income increases, the charges decrease to 2.5% and then to 2.2% of your transactions. However, if there are any currency conversions in your transactions, you may have to pay up international fees as well.
Limitations of PayPal Payment Method
One of the limitations of PayPal is the charges that are levied for international transactions. Also, any other feature that you wish to integrate, like PayPal Pro, you will have to pay for them.
Another limitation in PayPal is that it is suitable mostly for low-volume sales. If your business is expanding at a rapid rate, you will find that the 2.2% margin will start cutting into your profits.
Hope this PayPal review helps you choose your payment method wisely. Want to add PayPal to your Magento website? This can help you in improving sales as well as decrease shopping cart abandonment rate. At M-Connect Media, we install 3rd party payment gateway as per client’s requirement. Ask for best payment option for your site to our in-house eCommerce consultants.