3 Reasons Paypal is NOT a Payment Solution
It’s easy to see why many online shops think they have international customers covered by throwing up a Paypal button. The reality is that this option might hurt sales more than help. Here are three reasons why having a real payments strategy to maximize sales will include real payment options.
1. Losing your customer
I’ve written about the statistics behind maximizing sales through your check-out process. A big issue with an e-wallet system like Paypal is that you lose the customer to their hosted page. At this point, your price is generally locked in. There’s no chance to display coupons or real-time shipping options.
2. Money control
PayPal takes control of the funds from the sale. This adds the extra step of a logging into an account and asking to have money sent on to their bank account. This creates a delay as well as the potential for funds held up if the account is suspended or reviewed. Many horror stories can be found online of Paypal suspending accounts and withholding funds.
When was the last time you spoke to a person at Paypal. The value of your business to your payment provider should be reflected in your ability to contact a dedicated account manager whenever you feel the need.
I should end with saying that the idea of an e-wallet as part of your payments solution is fine as long you do not leave out the preferred methods of your customers. Paypal is by far the most used e-wallet in the US and UK however in the greater EU is another story. As you look to the other major markets in the EU Germany, Netherlands, and Spain where credit cards are not a primary option Paypal still struggles to show up on the radar next to EuroDebit, iDeal, DirectPay etc.