Online financial services provider PayPal has been in business for more than 20 years. Nevertheless, there are new competitors appearing that may make you question your reliance on PayPal. There is one major price reason to avoid using PayPal. Normally, they keep 2.9% of the transaction value plus 30 cents, which can be expensive if you make many transactions.
However, this has not been without some consequences as users have reported their accounts have been closed without their consent and this has posed a lot of problems to them. To make matters worse, several people have commented that PayPal support can be rather slow and not very helpful when seeking assistance.
Reasons Why You Should Avoid Using PayPal for Online Purchases:
As discussed earlier, one of the main issues with PayPal is the fees that are charged on each transaction. Due to these fees, companies that make many transactions may find that PayPal is not the best option for them. Account freezes can also be a frequent problem, which is not helping those who are trying to run their operations without any problems. It gets worse, though; the slow customer service can leave the problem unresolved for longer than necessary.
Add to that the fact that PayPal limits your payment choices. Only credit and debit cards and PayPal balance can be used, which may be problematic for those who want to expand their client base. Apple Pay and Google Pay are not supported by PayPal, which can be a big issue for some consumers when making a payment.
5 Payment Solutions You Can Use Instead of PayPal
- Stripe: This platform assists businesses in accepting payments from all major credit cards and other instruments including Apple Pay and Google Pay. The fees are the same as PayPal’s, 2.9% plus $0.30 per transaction, but you might value the expanded functionality and excellent customer service they provide.
- Square: Square helps companies accept payments from major credit and debit cards as well as other payment options. They have a different fee structure; in-person transactions incur 2.6% plus $0.10 fee while online transactions attract 2.9% plus $0.30 fee. Square also provides other services like invoicing and payroll for the small business.
- Venmo: A popular choice among the younger generation, Venmo is a digital wallet that enables people to send and receive money using their mobile phones. It has no fees for standard transactions, but there is a 1% fee for instant transfers.
- Google Pay: Like Venmo, Google Pay has no fees for transactions and is a simple way to pay quickly and easily from your mobile device.
- Apple Pay: This platform also does not charge any transaction fees and offers consumers with a fast and easy way of paying via their mobile devices. It is a good solution for companies that want to offer their customers a simple way to pay.
