When opening an ecommerce business, many SMEs are tempted to use PayPal as their payment processor. However, though it’s easy to set-up, PayPal may end up costing the ecommerce site a lot more than a less well known payment processor. PayPal, of course, is seen as easy to use and is well known by online customers, but on the other hand its offering is far less flexible than smaller, more competitive payment processors.
In April Paypal announced a ‘Buy Now Pay Later’ deal which many ecommerce businesses feel may be detrimental to their cash flow and earnings. So, the question is this:
Would your ecommerce business be best advised to use the merchant services of PayPal, a multi-billion dollar giant in the payment processor business, or would it do better to use a more bespoke solution?
The answer may come down to costs as well as other issues. Remember, every penny saved is a penny on your bottom line. Here is a breakdown of the major differences between PayPal and other merchant accounts:
- PayPal supports 25 currencies. Bespoke merchant account services are more flexible in which currencies they are able to transact in.
- PayPal offers a limited number of shopping cart solutions, whereas other payment processors can adapt and work with you for greater customisation and ecommerce site integration.
- PayPal’s average online transaction fee is around 2.9% + $0.30 per transaction. This cost is a lot lower elsewhere, especially as competition for business heats up (average 1.8% + $0.12 per transaction).
- PayPal levies an monthly fee up to $30, whereas average annual fees charged by other merchant account providers average around $10.
The benefits of using a payment processor which has a more flexible offering don’t stop there. You’ll also find you have more control over the look and feel of integration with your ecommerce site, you will be able to create a multitude of discount codes, and work with customer emailing lists – and your funds are deposited direct to your merchant account, rather than have to be transferred from your PayPal account.
Here at North Payments, we can offer you a number of ways of integrating your payment processing needs with your ecommerce site. This means you retain control over how your site works with your customers, as well as benefit from an offering suited to your budget and payment processor costs on average 20% to 30% lower than PayPal. Contact us today to discuss how much larger your bottom line could be with North Payments as your payment processor.