PayPal is now one of the most well-recognized payment processors in the world, especially online, but it was not always the case that PayPal dominated online transfers of funds.
Paypal’s inception came as a subsidiary of handheld security software corporation Confinity in 1998. Two years later, it merged with and ultimately completely absorbed Elon Musk’s X.com, which was one of the very first banks to do business entirely online. It was during the early 2000s that PayPal gained its first foothold in the public’s awareness as a result of its acquisition by eBay. At the time, eBay’s sudden intense popularity had led to the need for a safe payment processor that would not reveal credit card information to unknown sellers online while simultaneously not forcing customers into other risky types of payments. PayPal’s history made it the obvious option, and eBay would begin to offer purchasing protections for users who decided to use PayPal for their eBay purchases.
Now, PayPal is a household name for simple money transfers and safe purchases. The offerings PayPal now has for eCommerce businesses, though, is perhaps the most intriguing evolution the platform has undergone since its days as an eBay exclusive.
PayPal as a Purchase Encourager
One of the biggest challenges that eCommerce shops face is implementing safe, inexpensive, and quick checkout systems. Online shopping cart abandonment is remarkably common, and can ultimately pan out to thousands upon thousands of dollars lost, depending on the volume of business an eCommerce shop is doing. Oddly enough, an imperfectly implemented checkout system can be the source of this.
One of the biggest reasons customers shop online is because of the convenience. If that convenience is diminished or lost, customers may back out of a purchase or even go with a competitor. Implementing a checkout process that incorporates PayPal can help prevent this sort of customer bleed by cutting out the need for customers to enter in payment details or go through a lengthy account creation process which could turn them away or take long enough that they won’t bother completing the purchase.
In addition, PayPal has a reputation that can contribute to the success of your site. People like to shop with stores that use PayPal because they have established themselves as the go-to secure money transfer service. Sometimes even just seeing the option to use a secure service that doesn’t require the entry of a credit card number can convince a potential buyer to try out your site. Once they get to know your business, the reluctance that can come with buying online will fade, and they are likely to pass good reviews of your store onto others.
On their website, PayPal lists three options for integrating their payment system into your storefront. The first is also the most basic: building a button using PayPal’s own internal button generator. Using this option will allow you to copy-and-paste a button into your website quickly. However, the options for this are somewhat limited, only allowing you to choose from a few pre-created button appearances and styles.
The second option is easier for those who are already using an eCommerce platform like BigCommerce, Volusion, and Magento. PayPal has deals worked out with these platforms such that PayPal can be enabled as an option directly through the platform admin control panel. Choosing to utilize this option will give you access to the designs and styles that your eCommerce platform has designed for use.
The final option for implementing PayPal is to use API or HTML integration. HTML integration allows you to build PayPal into a shopping cart of your creation. API integration is used for when you are creating an app that you would like to be able to call on PayPal services. ECommerce companies with highly customized mobile presences are the most likely to benefit from API integration, while HTML integration is likely to be most helpful to those who are running a web storefront that is custom built.
HTML and API integration are considerably more complex than the previous options; however, they give you the most flexibility by far. Both of these options allow for you to get into the details of the code that will be handling your payments, which is an understandably strong option to have available provided you have the skills necessary to undertake the customization.
Regardless of which option you choose, PayPal is likely to help get your store into the position to close more sales. Most recently, PayPal has begun offering cash cards that can be used similarly to a debit card as well as options to use the PayPal app in brick-and-mortar stores. While online stores are the traditional competitors to brick-and-mortar, the presence of the payment processor in an everyday setting outside of the internet is already bringing further recognition and credence.
Are you ready to take the steps to implement PayPal into your store checkout? We can help. Our team of professionals has an incredible amount of experience in helping eCommerce stores handle the nitty-gritty of implementing new technologies. Visit us today at www.nixa.ca!