Benefits of PayPal for Online Payments

As you might have noticed, online payments are on the rise. Since the technology’s inception, all of its constituent parts have been evolving to become cheaper, faster, and easier to adopt, making the online payment market extremely competitive. It may sound surprising, then, that one of the oldest big names in the industry is still among the best options for handling your online finances. Yes, we’re talking about PayPal.

In this article, we will discuss PayPal’s key benefits and features. Keep reading to find out why we think it’s still the best payment provider.

What is PayPal?

Why use PayPal, and what features it offers? For starters, the service is one of the world’s largest online payment processors. By the way, if you don't know how to open a PayPal account to receive money, we have covered the topic in a separate article.

To use PayPal, you must create an account and connect it to your bank or card (or both). The system acts as an intermediary in sending and receiving payments between the parties. PayPal transactions usually take no more than a few minutes, which is remarkable considering all the processes involved. What’s more, the platform is packed with useful features for all kinds of users, from purchase protection for individuals to Goods and Services payment processing for businesses. What is PayPal Goods and Services (G&S) feature? Read the article to find out!

Key Benefits of Using PayPal for Online Payments

One of the strongest advantages of using PayPal is how fast and convenient the service is. However, all that speed would only serve to part you with your money faster if not for the platform’s robust security & privacy measures. PayPal also offers customers an extra layer of safety with Buyer Protection.

International Payments and Global Adoption

Another important point to mention when talking about the benefits of using PayPal for online payments is the service’s worldwide implementation. The platform is available in over 200 countries and regions, and supports transactions in 25 currencies. PayPal is popular among online merchants as a means of receiving payments from abroad.

Buyer Protection Measures

However, it's not just businesses that benefit from the platform’s policies. If an item purchased through PayPal is not delivered or doesn’t match its description, the buyer can dispute the transaction and may receive a full refund via Buyer Protection. The program covers most purchases made through the platform.

PayPal Pay in 4 is another great feature to consider, but it’s a bit too complex to discuss here. You can learn more about it in our article on the topic.

Merchant Benefits

PayPal advantages in security are not limited to just buyers. Using PayPal as a seller protects you from unscrupulous clients. The service’s Seller Protection allows eligible businesses to retain the full payment if a buyer claims unauthorized transaction or non-receipt.

Benefits of PayPal for Businesses

What are the benefits of PayPal for business owners? Let’s see what makes the service so appealing for merchants.

Straightforward setup and quick onboarding

With PayPal, businesses can start accepting payments almost right away thanks to the easy setup process. The service can be quickly integrated into a website or accessed through plugins. You can create an account and verify it in a matter of minutes, which is, once again, quite impressive. 

Cross-border payment support

Any business working internationally will surely benefit from PayPal integration. The service is available in over 200 countries/regions and supports 25 currencies. PayPal can handle currency conversions with remarkable speed, improving customer experience and business operations in general.

Higher customer conversion rates

PayPal has earned a positive reputation as a reliable payment platform, which means most buyers feel safe using it. As a result, a business can get more paying customers and improve conversion rates.

Recurring payments and invoice management

With the help of PayPal features and tools, merchants can manage invoices, subscriptions, and recurring payments. Besides payment processing, sellers can use the service to set reminders, send invoices, and track payments.

Performance analytics tools

But wait, there’s more! A PayPal business account comes with built-in data analytics tools. You can get customer insights, review average order value changes, look up the number of completed transactions per day or week, etc.

Benefits of PayPal for Consumers

And what about the consumer side of things? Here are the main buyer-oriented features of the platform.

Dispute resolution and refunds

PayPal has a robust customer support and refund system, so you can expect a quick resolution for any issues you encounter. Making purchases online via PayPal pretty much guarantees you’ll get your money back if something goes wrong.

Strong Security Features

PayPal is well-known for its reliable security features and fraud protection. As one of the biggest payment processors, the service is as secure as it gets. Since PayPal’s adoption of two-factor authentication, even the major data breaches of this decade failed to meaningfully disrupt its operations. Still, you'd better use different passwords for your PayPal and email, just in case.

Pay in 4 and installment options

Another feature to consider is the service’s take on buy now, pay later. Called “Pay in 4”, it is pretty much self-explanatory: split your purchases into several payments across up to six weeks. What is great about this feature is that you won’t have to pay interest or fees as long as you make your payments on time.

Reward opportunities and cashback

For more self-explanatory but useful features, PayPal Cashback Mastercard allows you to, well, earn cashback. Moreover, even if you don’t use the cashback card, you can still earn reward points on purchases in the PayPal app or on the platform’s website. Also, sellers often give discounts if you pay with PayPal.

Fees and Costs Associated with Using PayPal

Using PayPal for purchases is free, as the platform earns income from commissions paid by sellers. For example, if you use a PayPal balance or a linked bank account and need to convert a currency to finalize your purchase, you’ll pay no extra fees. In addition, if you transfer funds to a person (not an enterprise) in your home currency, you do not pay any fees.

As for PayPal processing fees, they warrant a proper discussion in a separate article.

However, in many other cases, the fees are not so easy to avoid. A currency conversion will cost you 4% of the transaction amount, while a credit card transaction entails a 2.9% fee plus an additional charge that depends on your country.

If you plan to use the platform often, you should keep in mind the PayPal receiving limit per day for your account type.

Conclusion

Over 36 million merchants worldwide accept PayPal. This is hardly surprising if we consider the numerous advantages of PayPal in terms of security, buyer/seller protection, and convenience.

PayPal is a big name in its industry, making online purchases significantly easier to manage for countless users across the globe. The benefits of paying with PayPal are obvious and weighty, making it a great choice for your online purchases.

To get even more protection as a user, you should learn how to cancel a payment on PayPal, and we happen to have an article on the topic.

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