Why PayPal is Important for Businesses in Europe
In 2020, 73 percent of Europeans shopped online, and most of them used either cards or e-wallets like PayPal to pay for their purchases. In fact, PayPal has become the third most popular payment method in the region. Germany and UK led other countries in the EU in using PayPal for online shopping in 2021, as research from Statista shows.
PayPal is also expanding in Europe, enabling thousands of merchants in the region to accept payments using their platform. Soon merchants in the EU will be able to accept payments in-store using PayPal’s QR code. This is already happening in Germany and will be active in other markets soon.
As a business in Europe, you need to accept multiple payment methods so that your customers can choose how they pay. PayPal, with its growing popularity and presence, is an easy and safe way to accept payments. The fact that it is becoming a payment of choice for many is the reason why it should be a part of your payment strategy.
How does it work?
PayPal is an online payment system that helps users to pay for purchases and send and receive money online. It allows users to pay directly using their bank account in place of a card. It also keeps users’ payment info hidden.
Users can link their bank accounts or their credit/ debit cards to their PayPal account. Users can also send and receive money from other users using their PayPal accounts. The user’s details are kept secure and private at all times.
As a retail merchant, you can use PayPal to accept payments online or in person. Customers can quickly checkout using PayPal without having to enter their card details. If they are shopping in-store, they can quickly pay for their purchases using the QR code. If you are a services business, you can securely collect payments from your clients or pay your suppliers using PayPal.
PayPal also offers PayPal Credit, which is a credit line similar to a bank credit card. It resembles a virtual credit card and can be used to make purchases on websites that accept PayPal. Like a regular card, PayPal Credit allows you to make purchases and pay for them later.
Why use PayPal?
Consumers can shop easily at all stores that accept PayPal payments. All the user has to do is remember (or save) their login info. Every time they make a new purchase, they do not have to retype their card details. They can complete their purchase by paying through PayPal, thus making the checkout process much faster and easier.
PayPal is completely secure because it keeps users’ info private. It uses added layers of security such as end-to-end data encryption, multi-factor authentication, and email confirmations for transactions. Thus, consumer data is secure at all times.
PayPal for recurring payments
If you are a merchant that offers subscription plans to your customers, you can use PayPal subscription payments to bill and collect payments. Consumers can opt to pay for their subscriptions using PayPal on the merchant website. As a merchant, it saves you the trouble of sending invoices as the whole process is automated.
The PayPal Reference Transaction (Authorize & Collect) is an easy to manage your subscription payments. It helps the online retailer to authorize a payment amount at the time of purchase and collect the payment at a later point in time. The online retailer and the end customer conclude an “agreement” so that the retailer can subsequently debit the customer’s PayPal account. This way, the dealer can make further debits without the customer having to do anything else.
There is no fixed rate or fixed period set for debiting when you use the PayPal Reference Transaction. You can receive payments even if the initial authorization amount changes or if there is a delay in fulfilling an order. You can also collect the authorization amount in part or in full.
PayPal Reference Transaction gives you the option to create multiple authorizations based on an order authorization. You can collect multiple payments by using batch processing. For an online merchant, this saves effort, time, and money.
How can a payment service provider help?
Your payment service provider can help you set up PayPal payments. Based on the size of your business and your needs, they can guide you on the integration process. Novalnet’s payment interface already includes PayPal Reference Transaction. Thus, you can use it easily without a lot of programming. Our interface will have you up and running with PayPal payments in a short time.
Consumers today seek faster and easier ways to pay. PayPal enables you to simplify the payments process and offers more choices to your customers. Thus, integrating it into your payment methods can help you drive sales and build loyalty.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.